Fw: [Universityofilorinalum] Re: Nigeria's Stocks Fall to Three-Year Low as Foreigners Exit

[Segun Sanni]

Sent from my BlackBerry 10 smartphone.

From: Okan Seye Adetunmbi okan...@gmail.com [Universityofilorinalum] <Universityo...@yahoogroups.com> Sent: Tuesday, 1 December 2015 07:32 To: Professionals; Buddies; UNILAG Squash Club; College Alumni; ascensionfamily; The School; Ojo Onilepanu; The School; Ekiti Ekitipanupo Reply To: Universityo...@yahoogroups.com Cc: Ekiti Community Square Subject: [Universityofilorinalum] Re: Nigeria's Stocks Fall to Three-Year Low as Foreigners Exit

 

Hmmm
1

 

Nigeria’s stocks fell to their lowest level in almost three years as foreigners exited the market amid fading hopes that President Muhammadu Buhari’s government can revive an economy growing at its slowest pace this century.

The Nigerian Stock Exchange All Share Index dropped 0.8 percent to 27,385.69 at close in the commercial capital of Lagos, the lowest since December 2012. The gauge declined on all but three trading days in November for a monthly drop of 6.2 percent.

“The government has not come up with a definitive policy for the economy,” Pabina Yinkere, an analyst at Vetiva Capital Management Ltd., said by phone from Lagos. “The continued lack of clarity is affecting the stock market.”

While Buhari, a 72-year-old former general who came to power in May, has prioritized stamping out corruption in Africa’s biggest economy and oil producer, investors were irked by a delay of more than five months in forming a cabinet, which he swore in Nov. 11. There’s also concern that his support for the central bank’s currency-trading restrictions are choking businesses of the dollars they need to pay foreign suppliers.

Almost two stocks declined for every one that rose. Guaranty Trust Bank Plc, the nation’s biggest lender by market capitalization, dropped 2.7 percent to 20 naira ($0.10). The stock is down 21 percent this year, about the same as the overall index. That’s the biggest fall in sub-Saharan Africa after the Zimbabwe Industrial Index. Specialist African funds including Alquity Investment Management Ltd. and Duet Asset Management Ltd. have lowered their Nigerian exposure because they think that central bank Governor Godwin Emefiele will be forced to devalue the naira, which would cause losses on holdings in foreign-currency terms. Last week’s interest rate cut by the central bank, its first in six years, will heap more pressure on the currency, according to David McIlroy, Alquity’s chief investment officer.

The naira was unchanged at 199.05 per dollar and has been all but fixed at 198 to 199 since early March. Forward prices suggest it will weaken to 241.25 in a year.

Pressure on Currency

“The surprise reduction in rates has probably worried international investors even more,” McIlroy said by phone from London. “Given the inflation rate is above the central bank’s target, there’s pressure on the currency and they need to attract foreign capital, you’d expect interest rates to be rising.” Annual inflation was 9.3 percent in October, higher than the central bank’s target of 6 percent to 9 percent. Alquity held about seven Nigerian stocks at the beginning of 2015, including Guaranty Trust Bank and Zenith Bank Plc. It now holds only Dangote Cement Plc. Equity funds are more underweight in Nigeria than any other frontier and emerging market, except for Kuwait and Morocco, analysts at Renaissance Capital Ltd. said in a Nov. 23 note to clients.

“We’ve increased our positions in Egypt and Kenya at the expense of Nigeria,” McIlroy said. Nigeria is reeling from crude prices that have plunged 57 percent since June 2014. Economic growth will slow to 3.2 percent this year from 6.3 percent in 2014, according to a Bloomberg survey of economists. That would be the slowest pace since 1999

 

http://www.bloomberg.com/news/articles/2015-11-30/nigeria-s-stocks-fall-to-three-year-low-as-foreigners-exit

One can only continue to wish our dear country well.

Thanks,

Anthony Ayodele

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Posted by: Okan Seye Adetunmbi <okan...@gmail.com>

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[Joe Attueyi]

Everybody, except the diehard Buharideens, seems to have given up!

Let us pray

Joe

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[Philip Achusim]

This is the time to make a killing on the listed companies. The stocks are down because the management of those companies are not performing. Engineer a takeover of those poor performing companies and promptly replace the management. Reorganize at the expense of stockholders who have already given up. Load up on the shares. With reorganization, you are sitting on a gold mine. Fresh suckers will chow up the stocks. They rise. And you cash out and look for another company in distress to rape. 

My point? People blame the economy  for the poor performance of the stock market but why not the management of the companies? Specializing in companies in distress can give a bigger bang for the dollar. 

Ezeana Achusim

Odi-Isaa

Nwa Dim Orioha AKA OnyeUkwu

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Posted by: Joe Attueyi <topc...@yahoo.com>

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[Omoluabi]

This is too funny ..... wailing wailers never get tired.

1) First, The Nigerian All Share Index (ASI) was already in a bearish trend start July 14, 2015 @43, 000. By May 29, 2015 the ASI had fallen to 34, 310. That is a 9,000 point difference.

2) Today December 1, 2015, the ASI closed at 27, 310. So, basically, the bearish trend (easily seen on a chart of the ASI) has continued with the index losing another 7,000 points since May 29, 2015.

3) In lock step, since July 2014 when it peaked at $107 per barrel, the price of oil has also been in a bearish trend. A juxtaposition of the ASI and the price of oil shows an exact identical pattern. So, what the...... is all these wailing for?!?!?!?!?!?!?! As if this is some new something that was caused by Buhari?

Abeg, make we hear word jare......wailing wailers ! When your golden girl was rigging the system and rolling out fake statistics and painting a rosy picture that was not, you were all jumping up and down despite the obvious realities on the ground. Now that the books have been opened up na so so wailing.

Viscount





--------------------------------------------
On Tue, 12/1/15, 'Segun Sanni' via AfricanWorldForum <africanw...@googlegroups.com> wrote:

Subject: [africanworldforum] Fw: [Universityofilorinalum] Re: Nigeria's Stocks Fall to Three-Year Low as Foreigners Exit
To: "Oyo State Intellectual Forum" <oyo-...@yahoogroups.com>, "NAIJA Dream Team Intellectuals" <naijadreamtea...@yahoogroups.com>, "'OmoOdua'" <Omo...@yahoogroups.com>, "Yahoo! Inc." <NIgerianW...@yahoogroups.com>, "Yahoo! Inc." <NaijaO...@yahoogroups.com>, "AfricanWorldForum" <AfricanW...@yahoogroups.com>, "African GM" <africanw...@googlegroups.com>, "'naija politics'" <NaijaP...@yahoogroups.com>, "TalkNaija" <TalkN...@yahoogroups.com>, "yahoogroups" <Egbe...@yahoogroups.com>, "''Yan Arewa'" <YanA...@yahoogroups.com>
Date: Tuesday, December 1, 2015, 3:33 PM

Sent from my BlackBerry 10 smartphone.




From: Okan Seye
Adetunmbi okan...@gmail.com [Universityofilorinalum]
<Universityo...@yahoogroups.com>Sent:
Tuesday, 1 December 2015 07:32To:
Professionals; Buddies; UNILAG Squash Club; College
Alumni; ascensionfamily; The School; Ojo Onilepanu; The
School; Ekiti EkitipanupoReply To:
Universityo...@yahoogroups.comCc:
Ekiti Community SquareSubject:
[Universityofilorinalum] Re: Nigeria's Stocks Fall
to Three-Year Low as Foreigners
Exit















 









Hmmm

1















 









Nigeria’s stocks
fell to their lowest level in almost three years as
foreigners exited the market amid fading hopes that
President Muhammadu
Buhari’s government can revive an economy growing at its
slowest pace

this century.The Nigerian Stock Exchange All

Almost two stocks declined for every one that
rose. Guaranty Trust
Bank Plc, the nation’s biggest lender by market
capitalization, dropped
2.7 percent to 20 naira ($0.10). The stock is down 21
percent this year,
about the same as the overall index. That’s the biggest
fall in
sub-Saharan Africa after the Zimbabwe Industrial Index.
Specialist
African funds including Alquity Investment Management Ltd.
and Duet
Asset Management Ltd. have lowered their Nigerian exposure
because they
think that central bank Governor Godwin Emefiele will be
forced to
devalue the naira, which would cause losses on holdings in
foreign-currency terms. Last week’s interest
rate cut
by the central bank, its first in six years, will heap more
pressure on
the currency, according to David McIlroy, Alquity’s chief
investment

officer.The naira was unchanged at 199.05 per

dollar and has been
all but fixed at 198 to 199 since early March. Forward
prices suggest

it will weaken to 241.25 in a year.Pressure on

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Posted by: Okan Seye Adetunmbi
<okan...@gmail.com>

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