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Daily Business News Brief  Wednesday October 20th, 2021.

20
Oct

Profit-taking in large-cap stocks triggers N153bn loss – Punch

The equities market of the Nigerian Exchange Limited lost N153.15bn at the end of trading on Monday as investors took profits in large-cap stocks.  The NGX All-Share Index declined by 0.71 per cent to 41,144.67bps from 41,438.15 basis points on Friday while the market capitalisation fell to N21.47tn from N21.62tn.  Investor activity declined as the volume of shares traded fell by 53.53 per cent to 338.72 million shares worth N4.06bn in 5,866 deals from 728.96 million shares valued at N8.53bn in 4,852 deals on Friday.  Analysing by sectors, the NGX Banking and Industrial Goods indices rose by 0.4 per cent and 0.3 per cent respectively while the NGX Consumer Goods, Insurance and Oil & Gas indices declined by 2.5 per cent, 1.7 per cent and 0.3 per cent respectively.  The market sentiment, as measured by market breadth, was negative as 21 firms saw losses compared to 19 gainers. …………………..read more

NGX suspends four firms for market infractions, to delist three- Punch

The Nigerian Exchange Limited has suspended trading in the shares of four firms this year for falling short of regulatory criteria, even as it is in the process of delisting three firms.  The NGX Regulation Limited said in a report that Chellarams Plc, Niger Insurance Plc, The Tourist Company of Nigeria Plc, and Thomas Wyatt Nigeria Plc were suspended for failure to file the relevant accounts by the expiration of the cure period.  Trading in the shares of Rak Unity Petroleum Company Plc was suspended due to a winding up of the company as approved by its shareholders at the time.  The Tourist Company of Nigeria Plc, Multi-Trex Integrated Foods Plc, and Union Diagnostics & Clinical Services Plc were listed as currently undergoing delisting by the NGX RegCo………………..read more

Fidelity Bank may raise $500m in international market – Thisday

Fidelity Bank Plc has said it is considering raising $500m from the international debt capital market through the issuance of unsecured notes.  A statement by its Company Secretary, Ezinwa Unuigboje, said the company intended to list the notes on the Irish Stock Exchange, adding that the proceeds would be used for general corporate purposes, including supporting its trade finance business.  It said, “The proposed aggregate offer size is $500m, due 2026, which will, when issued, rank parri passu, without preference among themselves, with all other unsecured and unsubordinated obligations of the bank. The Securities and Exchange Commission has confirmed that it has no objection to the transaction.”The bank said it would be holding investor meetings with respect to the transaction…………………….read more

FX Turnover on FMDQ Drops by 28.4% on Reduced CBN Interventions, Foreign Portfolio Investment- Thisday

Following reduced interventions by the Central Bank of Nigeria (CBN) and decline in foreign portfolio investment (FPI) net flows, total Foreign Exchange (FX) turnover on FMDQ OTC Securities Exchange declined by 28.4 per cent in the first eight months of 2021, data gathered by THISDAY revealed.  Analysis of activity at the exchange showed that total FX turnover on FMDQ between January and August of this year stood at N34.42 trillion as against N48.1trillion recorded in prior period under review.  The breakdown revealed that a total FX turnover of N3.26trillion was traded at the I& E FX window, it increased to N4.29trillion in February. …………………….read more

Cryptos may appear as safer store of value, says IM -Thisday

THE International Monetary Fund has said that weak central bank credibility and a vulnerable banking system in emerging economies can make cryptocurrencies appear as a safer store of value to residents. The IMF disclosed this in a report, titled ‘COVID-19, crypto, and climate: Navigating challenging transitions’.  The IMF said crypto adoption in some emerging markets and developing economies was outpacing that of advanced economies, driving a wave of “cryptoisation”. It said, “Unsound macroeconomic policies combined with inefficient payment systems in some emerging markets and developing economies boost crypto adoption. “Some potential pull factors for crypto adoption, such as speculative retail investing, may be common across countries, but some of the recent drivers are likely more specific to a subset of emerging markets and developing economies. For example, weak central bank credibility and a vulnerable banking system can trigger asset substitution as domestic residents seek a safer store of value.”……………….read more

FG scraps DPR, PPPRA, PEF, sacks CEOs, inaugurates new agencies – Punch

The Department of Petroleum Resources, the Petroleum Products Pricing Regulatory Agency and the Petroleum Equalisation Fund are all officially scrapped and do not exist anymore, the Federal Government said on Monday.  It also said while workers of the three agencies would be protected, their chief executives had been relieved of their various appointments.  The Minister of State for Petroleum Resources, Chief Timipre Sylva, stated this while speaking on the side-lines of the inauguration of the boards of the Nigerian Midstream and Downstream Petroleum Regulatory Authority and the Nigerian Upstream Regulatory Commission in Abuja.  He explained that with the passage of the Petroleum Industry Act, the NPRA and NURC had taken over the functions of the DPR, PPPRA and PEF…………………read more

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