Business News
HOT MONEY: Foreign Investors ship-out N257 billion from Nigerian stock market
HOT MONEY: Foreign Investors ship-out N257 billion from Nigerian stock market
Foreign investors are taking out more money from their investments in the Nigerian stock market.
Foreign investments inflow into the Nigerian Stock Market was N41.2 billion for the month of June 2019 compared to N37.9 billion in the month of May. This is the highest foreign investment inflow into the stock market this year. Unfortunately, this is not what matters.
The numbers; Foreign investment outflow, a more important measure of foreign investor staying power into the country performed worse.
- Foreign Investors shipped out N52.4 billion in investments out of the country compared to the inflow of N41.2 billion. In fact, foreign investment outflow has outpaced foreign investment inflow every month since January 2019.
- In total, foreign investor outflow for the period between January and June 2019 was N257.8 billion compared to N214.9 billion in inflows over the same period.
- Domestic Retail investor investment was N329.6 billion compared to N285 billion June 2019 year to date.
Breaking it down: Since the former CBN Governor, Sanusi Lamido Sanusi lifted the restriction on foreign investor outflow of their investment into Nigeria, the Nigerian Stock Market has come to rely on foreign investment to drive up market values.
- There is also a correlation (though not perfect) between net positive foreign investor inflow and a positive return in the stock market All-Share Index.
- The higher the net inflows the higher the possibility that the stock market will post more of bulls over bears.
- Now, despite MTN and Airtel listing boosting stock market capitalization by over N3 trillion, Nigerian stocks continue to fall in market valuation.
- Typically, stock market drops are associated with overall bad results and or a floundering economy.
- Ironically, while the economy is still reeling from the recession and poor policy implementation, most quoted companies are still posting strong profits.
- Thus, the stock market is suffering more from a lack of demand than anything fundamental.
Why it matters: In 2017, Nigerian Stocks returned a whopping 42.3%, one of the best ever recorded. This was on the back of the introduction of the I&E window, allowing foreign investors to inflow cash into the economy.
- In that year total foreign investment inflow was N776.2 billion compared to an outflow of N435 billion.
- In fact, foreign investor inflow outpaced outflow every month since April when the CBN introduced the window.
- Investors in the Nigerian stock market will have to wait for signals that foreign investors are back into the stock market before placing any bet on stocks valuation rising.
- Anyone scooping up stocks should do so on a pure need to accumulate capital and not to expect capital appreciation in the medium to long term.
- Until foreign investment inflow starts outpacing outflow, we might continue to live in a depressed stock market.
Coronavirus
COVID-19 Update in Nigeria
On the 30th of September 2020, 201 new confirmed cases and 1 death was recorded in Nigeria
The spread of novel Corona Virus Disease (COVID-19) in Nigeria continues to record increases as the latest statistics provided by the Nigeria Centre for Disease Control reveal Nigeria now has 58,848 confirmed cases.
On the 30th of September 2020, 201 new confirmed cases and 1 death was recorded in Nigeria, having carried out a total daily test of 2,549 samples across the country.
To date, 58,848 cases have been confirmed, 50,358 cases have been discharged and 1,112 deaths have been recorded in 36 states and the Federal Capital Territory. A total of 509,555 tests have been carried out as of September 30th, 2020 compared to 507,006 tests a day earlier.
COVID-19 Case Updates- 30th September 2020,
- Total Number of Cases – 58,848
- Total Number Discharged – 50,358
- Total Deaths – 1,112
- Total Tests Carried out – 509,555
According to the NCDC, the 201 new cases were reported from 13 states- Lagos (77), Rivers (37), Plateau (25), FCT (13), Kaduna (12), Ogun (12), Adamawa (8), Taraba (7), Imo (4), Kwara (2), Osun (2), Abia (1), Oyo (1).
Meanwhile, the latest numbers bring Lagos state total confirmed cases to 19,461, followed by Abuja (5,709), Plateau (3,450), Oyo (3,261), Edo (2,626), Rivers (2,432), Kaduna (2,419), Ogun (1,850), Delta (1,802), Kano (1,737), Ondo (1,631), Enugu (1,289), Ebonyi (1,040), Kwara (1,036), Abia (895), Gombe (883). Katsina (861), Osun (839), Borno (745), and Bauchi (699).
Imo State has recorded 572 cases, Benue (481), Nasarawa (450), Bayelsa (399), Jigawa (325), Ekiti (321), Akwa Ibom (288), Niger (259), Adamawa (248), Anambra (237), Sokoto (162), Taraba (102), Kebbi (93), Cross River (87), Zamfara (78), Yobe (76), while Kogi state has recorded 5 cases only.
READ ALSO: COVID-19: Western diplomats warn of disease explosion, poor handling by government
Lock Down and Curfew
In a move to combat the spread of the pandemic disease, President Muhammadu Buhari directed the cessation of all movements in Lagos and the FCT for an initial period of 14 days, which took effect from 11 pm on Monday, 30th March 2020.
The movement restriction, which was extended by another two-weeks period, has been partially put on hold with some businesses commencing operations from May 4. On April 27th, 2020, Nigeria’s President, Muhammadu Buhari declared an overnight curfew from 8 pm to 6 am across the country, as part of new measures to contain the spread of the COVID-19. This comes along with the phased and gradual easing of lockdown measures in FCT, Lagos, and Ogun States, which took effect from Saturday, 2nd May 2020, at 9 am.
On Monday, 29th June 2020 the federal government extended the second phase of the eased lockdown by 4 weeks and approved interstate movement outside curfew hours with effect from July 1, 2020. Also, on Monday 27th July 2020, the federal government extended the second phase of eased lockdown by an additional one week.
On Thursday, 6th August 2020 the federal government through the secretary to the Government of the Federation (SGF) and Chairman of the Presidential Task Force (PTF) on COVID-19 announced the extension of the second phase of eased lockdown by another four (4) weeks.
READ ALSO: Bill Gates says Trump’s WHO funding suspension is dangerous
Business
Lagos cancels parade, opts for a low-key celebration of Independence Day
Due to the threat of the novel coronavirus, the Lagos state government has said it would observe a low-key celebration.
Lagos State government has opted for a low-key celebration of the 60th independence anniversary of the nation. This decision is due to the ravaging effects of the COVID-19 pandemic, which is still with us.
This statement was made by the Government of Lagos State today, via its official Twitter account.
The Lagos State Government has opted for a low key celebration of the 60th Independence Anniversary due to the ravaging effects of the COVID-19 pandemic, which is still with us.@jidesanwoolu @drobafemihamzat @gbenga_omo @gboyegaakosile @Mr_JAGss #LASG #ForAGreaterLagos pic.twitter.com/xDzMGWig7w
— The Lagos State Govt (@followlasg) September 30, 2020
Governor Babajide Sanwo-Olu has directed that the planned Independence Day Parade at the Agege Stadium by 9 a.m and other activities that involve the gathering of more than 50 people should be canceled.
He congratulates Lagosians on this auspicious occasion and strongly advises that they should celebrate quietly at home and pray for the country. He asked that they should also observe the COVID-19 protocols, including wearing of face masks to protect themselves and their loved ones.
(READ MORE:Lagos approves resumption of full services for churches, mosques)
The Governor urges Lagosians not to let down their guards on COVID-19 so as not to reverse the gains that the state has made in fighting the disease.
The governor congratulates Lagosians on the auspicious occasion and strongly advises that they should celebrate quietly at home and pray for the country. They should also observe the COVID-19 protocols, including wearing of face masks to protect themselves and their loved ones.
Business
Lagos takes major step towards delivery of Fourth Mainland Bridge
The Governor revealed that the proposed bridge has been well integrated into the overall Lagos Master Plan.
The Lagos State Government has taken a major step towards the realization of the Fourth Mainland Bridge by the hosting of the first stakeholders meeting on Environmental and Social Impact Assessment for the construction and launch of the Bridge’s logo.
Speaking at the meeting, the Lagos State Governor Babajide Olusola Sanwo-Olu, who was represented by his Deputy, Dr Kadri Obafemi Hamzat, described the event as a significant one in the joint effort to change the narrative of the socio-economic development of the State, through the provision of critical infrastructure for sustainable prosperity.
The Governor revealed that the proposed Fourth Mainland Bridge has been well integrated into the overall Lagos Master Plan in relation to transportation infrastructure, adding that the project allows for the first time, direct access from the large suburb of Ikorodu to the Island and the Lekki Free Trade Zone area.
Sanwo-Olu disclosed that the state government reactivated the construction of the bridge in October 2019 with the development of a 6 step process that will lead to the selection of a suitable concessionaire in line with global best practices. He noted that the present administration has left no stone unturned in ensuring that the strategic project becomes a reality.
The Governor emphasized that the stakeholder-engagement and consultation on Environmental and Social Impact Assessment was a precursor to the third step, which will involve issuing a Request for Proposal to the six consortia for the presentation of their respective financial proposals and methodologies for carrying out the project.
According to him, “The stakeholders’ meeting was organised to open the project to further inputs, comments, ideas and observations for incorporation into the ongoing social and environmental impact assessment. We hope the meeting would boost the acceptability and implementation ratings of the 4th Mainland Bridge in line with global best practices”.
In her welcome address, the Special Adviser to the Governor on Works and Infrastructure, Engr. Aramide Adeyoye stated that the meeting was another bold step by the present administration towards ensuring the buy-in of Lagosians into the government project and another fulfilment of the promise of Mr Governor to adopt inclusiveness as a tool for governance.
While giving assurances of his unalloyed support towards the project, the Minister for Works and Housing and former Governor of the State, Mr Babatunde Raji Fashola, represented by Dr Adetunji Adeoye, commended Lagos for the construction of the Fourth Mainland Bridge, adding that the construction will create a lot of activities and job opportunities for residents.
The Minister of State for the Environment, represented by Mrs Oluwatoyin Agbenla, described the Fourth Mainland Bridge as an endearing project to the citizens, which will be executed with the highest levels of environmental sustainability.
Nairametrics, last month, reported that the Lagos State Government has shortlisted 6 companies for the design, development, construction, operation, and maintenance of the Fourth Mainland Bridge. This followed the government’s issuance of a Request for Qualification (RFQ) in February this year. The 6 companies were said to have completed the technical and financial capacity requirements.
Lagos State said it will announce the selection of the next stage in due course, even as the RFQ will be given to the pre-qualified bidders.
The Fourth Mainland Bridge is a 37.4km freeway subdivided into three sections namely Island Section, Lagoon Section and Mainland Section. It will commence from Abraham Adesanya Roundabout in Lekki through Ajah and Langbasa areas, crossing the Ado Badore Road before arriving at the Lagoon shoreline.
The road crosses the Lagoon via a 4.5km Lagoon Bridge landing between Bayeku and Ijede villages, passing through Ikorodu-Epe expressway to further link Isawo Road and from there to Lagos/Ibadan Expressway.
A major step towards the realisation of the Fourth Mainland Bridge was, today, taken by the State Government with the first stakeholders meeting on Environmental and Social Impact Assessment for the construction and launch of the Bridge’s logo.@jidesanwoolu#ForAGreaterLagos pic.twitter.com/E4XPivJOxd
— The Lagos State Govt (@followlasg) September 29, 2020
COVID-19 Update in Nigeria
Lagos cancels parade, opts for a low-key celebration of Independence Day
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Lagos takes major step towards delivery of Fourth Mainland Bridge
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COVID-19 Update in Nigeria
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