E- COPY (8-14) January 2018 cover pgg-compressed | Page 7

MONEY & CAPITAL
Monday, January 8 - 14, 2018
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Investors seek downward review of MPR in 2018
Stories by
NIYI JACOBS
Nigeria (ASHON) Patrick Ezeagu
explained that one the major chal-
lenges facing the market is how to
ome financial analysts have restore investors' confidence.
said that one of the key fac-
“Government must pursue vig-
tors that could help in orously the downward review of
achieving sustainable market the MPR to stimulate investment,
rebound in 2018 include the down- selling some percentage of priva-
ward review of the Monetary Pol- tised national assets through the
icy Rate (MPR).
market and utilising the capital
National Business notes market to raise funds for
that after posting an outrageous infrastructural development pro-
26 per cent loss in 2016, the Nige- jects would engender fair valua-
rian equities market gathered tion, transparency, accountability,
strong momentum in 2017, with a integrity and greater participation
year to date increase of N4.5 tril- of the average Nigerian investor.”
lion in market capitalisation from
A stockbroker with Delloit Secu-
N9, 158 trillion at which it opened rities Limited, Tunde Oyediran,
the year in January 3, 2017 to said; ''the market did excellently
N13.609 trillion as at Friday, well last year, which could be
December 29, 2017.
attributable to right government
Also, the Nigerian Stock policies and other positive macro-
Exchange (NSE) All-Share Index economic indicators.
(NSE ASI), rose by 30.4 per cent
“For the year 2018 we expect
during the year under review from improvement in market perfor-
26, 616.89 to 38,243.19.
mance premised on further gains
This was in spite of crises of in economic indicators, pre elec-
confidence that rocked the mar- tion year, notwithstanding.”
ket during the year under review.
The President of the Chartered
The crisis ranged from the case Institute of Stockbrokers (CIS),
involving 300 investors of Part- Oluwaseyi Abe, also appealed to
nership Investment Plc whose the Federal Government to con-
stocks totalling N4.8 billion were sider the age-long plan to encour-
involved in a 'shady' and Oando age multinational companies to list
Plc.
on the NSE in order to deepen the
Also , there was allegation of market and enhance liquidity in
fraud leveled against the Director- the medium and long term
General (DG) of the Securities and
He noted that the business ter-
Exchange Commission (SEC), rain must be more investor-
Mournir Gwarzo.
friendly for Small and Medium
Precisely, the Chairman, Asso- scale Enterprises to flourish, add-
ciation of Stockbroking Houses of ing that the capital market must be
S
IMF, World Bank, CBN urged to
canvass Braille signs in currency notes
By TONY NWAKAEGHO
T
he International Monetary
Fund (IMF), World Bank
and Central Bank of
Nigeria (CBN), have been urged to
canvass for the insertion of Braille
signs on global currency notes.
Braille is a form of written
language for blind people, in
which characters are represented
by patterns of raised dots that are
felt with the fingertips.
Braille users could read
computer screens and other
electronic supports via refreshable
braille displays available
nowadays.
The Monitoring Officer,
Justice, Devel opment and Peace
Centre (JDPC), Mr. Abiodun
Abacha Adebesin, who made this
call, explained that its high time
global financial institutions
consider adding Braille signs on
our paper currencies in fulfilment
of the one of the 2030 Sustainable
Development Goals (SDGs) of not
leaving any one behind.
Adebesin lamented that the
blinds have been cheated on so
many occasions because they rely
on people to determine the
denominations of the money they
are holding and this is really
saddening.
“If this done by all financial
institutions in the world with the
support of IMF and world bank,
this will be in line with agenda 2030
'Leave no one behind,” he said.
SDG experts opined that
inclusiveness speaks to the notion
of empowerment and the principle
of non-discrimination, which is
reflected in the pledge to leave no
one behind and in the vision of a
“just, equitable, tolerant, open and
socially inclusive world in which the
needs of the most vulnerable are
met” and “a world in which every
country enjoys sustained, inclusive
and sustainable economic growth
and decent work for all.”
This campaign is reflected both
in goals and targets in the SDGs ,
including Goal 4, which refers to
inclusive and equitable quality
education; Goal 8, which refers to
sustained, inclusive and
sustainable economic growth; Goal
9, which refers to inclusive and
sustainable industrialization; Goal
11, which refers to inclusive, safe,
resilient and sustainable cities and
human settlements; and Goal 16,
which refers to peaceful and
inclusive societies for sustainable
development and to accountable
and inclusive institutions at all
levels.
This assertion of 'leave no one
behind' further refers to the need to
include everyone in societal
processes, have a voice and effective
opportunities to shape the course of
development in all countries.
developed to assist local entrepre-
neurs grow their businesses.
The President, Proactive
Shareholders Association, Taiwo
Oderinde, said: “The market
started with mixed reactions from
the stakeholders. The first quarter
was bearish and the early part of
second quarter too. The third quar-
ter till date has been bullish with
over N13 trillion total market
capitalisation.
“Investors are more cautious of
picking their rights offers in the
market. The present investors are
investing based on the companies'
results and fundamentals.
“My advice is that government
should come up with robust invest-
ing friendly policies while the regu-
lators must be more proactive with
aggressive investors' education
especially for the minority inves-
tors to sustain recovery in 2018. “
But the market stakeholders
however, maintained that a lot
need to be done for the market to
sustain the current momentum
even in the 'peak' of elections.
CBN, Braille, World Bank logos
Portfolio investments record positive
recovery as financial inflows rise 156%
R
enaissance Capital, an
investment and
research company in
Lagos, has revealed that the
foreign investment inflows into
the country was more than
doubled in Q3:17 to $4.1billion
as against $1.6 billion a year
earlier
The resurgence in inflows,
according to available data, was
largely due to portfolio
investment, which tripled to
$2.8 billion with about 70
percent of the inflows going
into the equity market.
Other forms of investments,
which mainly comprise loans,
also saw strong growth of 125
percent year on year to $1.3
billion in the review quarter.
However, foreign direct
investment (FDI) dropped by
two-thirds compared to a year
earlier, to $118 million
The recovery in foreign
investment inflows began in
Q1;17 after falling for nine
consecutive quarters.
Thereafter, foreign
investment's year on year
growth accelerated in
subsequent quarters, rising 127
percent in Q3;17 to reach
$4.1billion, the highest
quarterly foreign investment
since Q4;14.
“We largely attribute this to
the introduction of the
Investors and Exporters FX
window in April 2017, which at
the time was the only window
(outside the black market) to
allow participants to transact at
market-determined rates.
“FX liquidity improved, as a
result, enabling foreign
investors to repatriate their
income, which improved
investor confidence. This partly
explains the tripling of portfolio
inflows to $2.8bn in Q3;17, in
our view,” RenCap analysts
said.
They noted that of the total
inflow for the quarter, 70
percent went into the equity
market, which according to
them, explains why the Nigeria
Stock Exchange was up 25
percent year on year as of
September 2017 as against a
decline of 9 percent year on
year earlier.
Gaps in software laws,
fragmented regulation seen
downsides to self-driving
finance
Equally investments into
money market instruments
more than doubled in the
review period to $720 million
on the back of high yields.
Conversely, FDI, which has
been the smallest source of
foreign investment in recent
years dropped to its lowest level
in Q3 2017 since the capital
importation series began in
2014. It declined by two-thirds
against a year earlier to $118
million.
Historically, the oil and gas
sector has been the largest FDI
recipient. However, the stalling
of the petroleum industry bill
earlier this decade (an amended
version was passed last year)
saw investment fall, and the oil
price collapse in late 2014
compounded the downturn.
Specifically, investment in
the sector picked up in 2016,
making it the third-largest
recipient of FDI and other
investment. Flows slowed in
9M17.
The third constituent of
foreign investment, other
investment, largely made up of
loans, saw a strong 125 percent
year on year increase in Q317 to
$1.3 billion., which could be
traced to a resurgence in
Eurobond issuance by a couple
of local banks.
The Rencap analysts,
however, see an improved FDI
outlook in 2018 outlook.
“We expect portfolio
investment to continue to pick
up in 2018 on the back of a more
stable economy. However, its
growth is likely to be slow in
H218 owing to a high base effect
and a likely increase in
uncertainty ahead of the
February 2019 elections,” they
noted.