Re: {Yan Arewa} Re: [africanworldforum] Fw: [Universityofilorinalum] Re: Nigeria's Stocks Fall to Three-Year Low as Foreigners Exit

[Segun Sanni]

I thought you understood the linkages and inter-dependences better. ‎Please note the following: 

1. Foreigners who brought in their funds to set up and run businesses in Nigeria are Foreign Direct Investors (FDIs) while foreigners who buy shares in businesses run in Nigeria ‎are the Foreign Portfolio Investors (FPIs). 

Both classes of investments/investors (FDIs and FPIs) are good for us and are indispensable to our economic growth. While FDIs like PZ, Unilever, Cadbury, etc, run their businesses here, they get cheap long term capital/financing from the stock market in which the FPIs are heavily invested. 

2. Many of the FDIs are multinationals who are quoted on foreign stock exchanges (London Stock Exchange, New York Stock Exchanges, etc). Much of the money they invest in Nigeria is raised from the foreign stock exchanges and owned by the same FPIs who also invest in London, New York, etc. Therefore the FPIs who bought shares in London contributed to the company which brought FDI to Nigeria. 

2. The FDIs are themselves directly affected by the economic policies of the government, same policies driving away the FPIs. The FX rationing ‎of the CBN (on which the FPIs are uncomfortable) is impacting heavily on the ability of the manufacturing companies (FDIs) to source for Foreign Exchange. 

4. Nigeria could do better in attracting FDIs ‎and FPIs if only we could address the problems of power, transportation and wrong government policies. Remember the departure from Nigeria of Michelin, Dunlop, etc. 

From the above‎, you'll agree that FDIs and FPIs are equally important and that's why all progressive countries of the world court the investors and compete to have them. You can't have an inflow of FDIs if your policies are driving away FPIs. 

Shikena.

Sent from my BlackBerry 10 smartphone.

From: Imperial imperi...@yahoo.com [AfricanWorldForum] Sent: Tuesday, 1 December 2015 22:28 To: YanA...@yahoogroups.com Reply To: AfricanW...@yahoogroups.com Cc: africanw...@googlegroups.com; OmoOdua; Yahoo! Inc.; Yahoo! Inc.; AfricanWorldForum; naija politics; TalkNaija; yahoogroups; Ra'ayi Riga; Naija...@googlegroups.com Subject: Re: {Yan Arewa} Re: [africanworldforum] Fw: [Universityofilorinalum] Re: Nigeria's Stocks Fall to Three-Year Low as Foreigners Exit

 

Joe the pastor / Segun,

Nigeria needs foreign direct investment ( FDI ) not foreign direct portfolio . 

FDI impacts directly on the our development, production, employment , import substitution 

polices and overall wellbeing of the people  but the the impact of a rise or fall in Nigeria's capital market impacts on a few Nigerians and foreign speculators in our various equities which on average were overvalued due to several market factors.

 

Sent from my iPad

On 1 Dec 2015, at 21:42, Joe Attueyi topc...@yahoo.com [YanArewa] <YanA...@yahoogroups.com> wrote:

 

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

Let us pray

Joe

Sent from my iPhone

On Dec 1, 2015, at 8:33 PM, 'Segun Sanni' via AfricanWorldForum <africanw...@googlegroups.com> wrote:

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

--

---
You received this message because you are subscribed to the Google Groups "AfricanWorldForum" group.
To unsubscribe from this group and stop receiving emails from it, send an email to africanworldfo...@googlegroups.com.
To post to this group, send email to africanw...@googlegroups.com.
Visit this group at http://groups.google.com/group/africanworldforum.
To view this discussion on the web visit https://groups.google.com/d/msgid/africanworldforum/20151201203350.5886030.87462.123658%40yahoo.com.
For more options, visit https://groups.google.com/d/optout.

__._,_.___

---

Posted by: Imperial <imperi...@yahoo.com>

---

Reply via web post

•

Reply to sender

•

Reply to group

•

Start a New Topic

•

Messages in this topic (1)

Visit Your Group

• Privacy • Unsubscribe • Terms of Use

.

__,_._,___

[Joe Attueyi]

Thank you Segun. Like the old Santana advert 'nothing more to add'. 

I am still waiting for Prof Obi Nwakanma's lecture / examples of autarky as a successful model of building a modern economy 

We need to learn to do the simple things that have shown to work. Market competition underpinned by governmental regulation works. Not perfect. But it works. 

Bureaucratic allocation of economic resources generates fraud and corruption. Always. This stuff is not rocket science 

Joe

Sent from my iPhone

To view this discussion on the web visit https://groups.google.com/d/msgid/africanworldforum/20151202094157.5886033.19153.123862%40yahoo.com.

[okoiad...@gmail.com]

Noise, noise by local agents of international capital!

Sent from my BlackBerry 10 smartphone.

From: 'Joe Attueyi' via NaijaEvent Sent: Wednesday, 2 December 2015 11:19 To: africanw...@googlegroups.com Reply To: naija...@googlegroups.com Cc: Imperial imperi...@yahoo.com [AfricanWorldForum]; YanA...@yahoogroups.com; OmoOdua; Yahoo! Inc.; Yahoo! Inc.; naija politics; TalkNaija; yahoogroups; Ra'ayi Riga; Naija...@googlegroups.com

You received this message because you are subscribed to the Google Groups "NaijaEvent" group.
To unsubscribe from this group and stop receiving emails from it, send an email to naijaevent+...@googlegroups.com.
To post to this group, send email to naija...@googlegroups.com.
Visit this group at http://groups.google.com/group/naijaevent.

[asu...@gmail.com]

Abi o

Sent from my BlackBerry 10 smartphone.

From: okoiad...@gmail.com Sent: Wednesday, December 2, 2015 11:35 AM To: 'Joe Attueyi' via NaijaEvent; africanw...@googlegroups.com Reply To: africanw...@googlegroups.com

To view this discussion on the web visit https://groups.google.com/d/msgid/africanworldforum/20151202103515.4870223.24237.2591%40gmail.com.

[Philip Achusim]

Imperial:

FDI must do well everywhere to have investors anywhere interested in their stocks. If they are not doing well in Nigeria, no one anywhere would be interested in buying their stock. It does not matter what the reasons are that cause them not be doing well in Nigeria, investors are interested in companies doing well. We are not talking about charities or charitable organizations.  FDI that don't make money in Nigeria have two options: make money or perish. 

Ezeana Achusim

Odi-Isaa

Nwa Dim Orioha AKA OnyeUkwu

Sent from Yahoo Mail for iPhone

On Wednesday, December 2, 2015, 4:48 AM, Imperial imperi...@yahoo.com [YanArewa] <YanA...@yahoogroups.com> wrote:

 

FDI are by far more important than FPI to our country even though the activities of the FPI may at times positively encourage the perspective FDI  investors and also artificially boost the market capitalization of our stock market. 

FPI effect on our stock market is similar to the " concealer" that some beauticians put on the faces of our ladies these days. When you see them at with concealer at parties they look excessively beautiful,if you meet some of them the following morning, you will feel like throwing up. In a country like the United Kindgom, the FPIs are regarded by some as self centered equity speculators looking for where to double their profits within a short period . 

I disagree with opposition politicians in the forum like  Pastor Joe who always blame President Buhari for the bearish trading and slump in the values of our various shares . As I earlier stated, the operational performance of the majority of the companies quoted on the stock exchange depend largely at at times solely on the price and demand for our oil and gas both which are beyond the control of Mr President . 

Why should anyone blame the CIC or his regime managers ? If the oil price goes up to like $90 per barrel, the confidence that the so called investors have in doing business with Nigeria is bound to go up . What we all need to talk about now is how to diversify our economy so that we rely much less on the oil and gas industry .  

Sent from my iPad

Messages in this topic (6)

{GABA DAI GABA DAI YAN AREWA}

Visit Your Group

• Privacy • Unsubscribe • Terms of Use

.

__,_._,___

[Segun Sanni]

FPIs are very important to every economy and only Learners will describe them as 'concealers'. Every economy courts investors, both FDIs and FPIs and that's one of the key reasons ‎the countries advertise themselves as good investment destinations on CNN. If FPIs withdraw the about $15bn of their funds still in this market in one fell swoop, the economy will surely collapse and our L/Cs would no longer be suitable for confirmation by foreign banks. 

The stock exchange is a major barometer by which the health of an economy is measured all over the world and that's why the events of the stock market always ‎attract front page attention on all news media all over the world. It is so Buhari would not be criticised that you're suddenly standing logic on its head. We should not be debating about the importance of foreign investors to our economy. 

Sent from my BlackBerry 10 smartphone.

From: Imperial imperi...@yahoo.com [YanArewa] Sent: Wednesday, 2 December 2015 11:48 To: AfricanW...@yahoogroups.com Reply To: YanA...@yahoogroups.com Cc: YanA...@yahoogroups.com; africanw...@googlegroups.com; OmoOdua; Yahoo! Inc.; Yahoo! Inc.; naija politics; TalkNaija; yahoogroups; Ra'ayi Riga; Naija...@googlegroups.com

Subject: Re: {Yan Arewa} Re: [africanworldforum] Fw: [Universityofilorinalum] Re: Nigeria's Stocks Fall to Three-Year Low as Foreigners Exit

 

FDI are by far more important than FPI to our country even though the activities of the FPI may at times positively encourage the perspective FDI  investors and also artificially boost the market capitalization of our stock market. 

FPI effect on our stock market is similar to the " concealer" that some beauticians put on the faces of our ladies these days. When you see them at with concealer at parties they look excessively beautiful,if you meet some of them the following morning, you will feel like throwing up. In a country like the United Kindgom, the FPIs are regarded by some as self centered equity speculators looking for where to double their profits within a short period . 

I disagree with opposition politicians in the forum like  Pastor Joe who always blame President Buhari for the bearish trading and slump in the values of our various shares . As I earlier stated, the operational performance of the majority of the companies quoted on the stock exchange depend largely at at times solely on the price and demand for our oil and gas both which are beyond the control of Mr President . 

Why should anyone blame the CIC or his regime managers ? If the oil price goes up to like $90 per barrel, the confidence that the so called investors have in doing business with Nigeria is bound to go up . What we all need to talk about now is how to diversify our economy so that we rely much less on the oil and gas industry .  

Sent from my iPad

On 2 Dec 2015, at 10:41, Segun Sanni therea...@yahoo.com [AfricanWorldForum] <AfricanW...@yahoogroups.com> wrote:

Messages in this topic (6)

{GABA DAI GABA DAI YAN AREWA}

Visit Your Group

• Privacy • Unsubscribe • Terms of Use

.

__,_._,___

[Segun Sanni]

‎FDIs and other businesses raise cheap long term capital from the capital market. Without the stock market, our economy cannot grow or reach its potential. All the FDIs and other businesses in Nigeria are plagued by the same factors chasing away the FPIs. We need to implement policies to strengthen our economy. ‎Baba's government needs to wake up. Nigerians are complaining. 

Sent from my BlackBerry 10 smartphone.

From: Imperial imperi...@yahoo.com [AfricanWorldForum] Sent: Wednesday, 2 December 2015 14:06

To: YanA...@yahoogroups.com Reply To: AfricanW...@yahoogroups.com

Cc: AfricanW...@yahoogroups.com; africanw...@googlegroups.com; OmoOdua; Yahoo! Inc.; Yahoo! Inc.; naija politics; TalkNaija; yahoogroups; Ra'ayi Riga; Naija...@googlegroups.com

Subject: Re: {Yan Arewa} Re: [africanworldforum] Fw: [Universityofilorinalum] Re: Nigeria's Stocks Fall to Three-Year Low as Foreigners Exit

 

I stand firmly by my words that FPI - in relationship with the Nigerian capital market - is like that of a "concealer' to an ugly lady - it prevents innocent investors from assessing the true and fair position of the listed companies .

Nigeria stock market is like a castle built in the air without any strong foundation so the

 value of the various equities being traded here is grossly overstated due to pressures 

received from large funds Inflow on behalf of the  FPI . You can't compare the impacts of the FPI to that of FDI in an emerging market economy. The former impacts largely on the capital market while the latter affects the entire economy . Kindly remind us who is no 1 FPI funds manager in Nigeria today ? Lol 

 

Sent from my iPad

Messages in this topic (5)

Visit Your Group

• Privacy • Unsubscribe • Terms of Use

.

__,_._,___