NEWS
Govt Reforms Attract Positive Trends in Stock Market – NGX CEO
From Anthony Nwachukwu, Lagos
Acting Chief Executive Officer(CEO), Nigerian Exchange Limited (NGX), Mr Jude Chiemeka has attributed the positive trends in the stock market to the reforms implemented by the President Bola Tinubu led administration.
The Nigerian Exchange Limited CEO said this in an interview on Thursday in Lagos.
Chiemeka said that this positive trajectory had been having a significant impact on investors’ confidence and market dynamics.
He said that the stock market often served as a barometer for the overall economy and the recent bullish trend was a reflection of the various reforms pursued by the Federal Government.
He highlighted the influence of reforms on the stock market to include the harmonisation of the Foreign Exchange (FX) rate, removal of fuel subsidy, and efforts to ensure liquidity in the FX market.
“The market, itself, is usually driven by demand and supply sentiment, performance of companies and all the various elements of market hearsay.
“A school of thought has said that the NGX is undervalued at the moment and there is a desire to harmonise the hamburger or black market price with the official exchange rate.
“We have seen the purchasing power parity rate of our FX being below the rate, which the market is currently trading. Hence, the harmonisation will enable various corporates to have access to liquidity at a reasonable price,” the NGX boss stated.
He further said that the stock market, which had been undervalued for a significant period, had experienced renewed investor interest due to the reforms.
On the attractiveness of investing in the stock market, especially from a bullish perspective, Chiemeka pointed that it remained a means to hedge against inflation, particularly with the prevailing interest and inflation rates.
The CEO noted that the impending launch of Single Stock Futures, seen as a new avenue for investors to navigate potential, overvalued stock prices and could mitigate the volatility that might follow a bullish trend.
In terms of market dynamics, he said that the current double-digit return was highlighted as aligning with prevailing FX and interest rates.
According to him, the market is characterised as forward-looking in its assessment of where it should be.
Chiemeka maintained that the multi-asset nature of the stock market is underlined, positioning it as a platform for capital mobilisation for companies.
“On the fixed income side, we have more listings and the Nigerian Exchange Traded Funds(ETFs) market is the second largest in Africa with 12 ETF’s and other Exchange products listed; including mutual funds, which continue to grow in significant numbers.
“On the equity side, it is really a reflection of the policies available in the economy.
“As such, there is a lot of stakeholders’ engagement and advocacy that the NGX is doing to ensure that the government pays more attention to the market so that the main sectors of the economy are listed on the Exchange.
“We believe that this will help listings thrive on the capital market, especially when we think about what the government is looking to do in terms of privatisation,” he said.
While some companies are exiting the Exchange, primarily on the equity side, he noted that their departure had not significantly impacted the market.
Chiemeka emphasised the potential for government entities to be privatised as a means to democratise opportunities and provide Nigerians with access to listed companies.
He said: “We are looking forward to more companies being listed on the Exchange.
“In terms of exit seen on the equity side, it is a company’s decision to list on the market or exit it, but the NGX would continue to provide a world-class trading platform that would allow corporations to come and also exit anytime they wish to.
“What is really key is that the market is robust, growing with world-class infrastructure for trading systems for fair market discovery and secondary market liquidity for listed corporations.”
The NGX All-Share Index on January 24 rose by three per cent or 2,954.14 points to cross the 100,000 mark and settled at 101,571.11.
Similarly, the market capitalization which opened at N53.967 trillion on Tuesday, January 23 closed at N55.583 trillion on January 24.
Some of the Stocks worth over N1 trillion driving the market presently are: BUA Cement, BUA Foods, Dangote Cement, Guaranty Trust Company, Zenith Bank, Airtel Africa, MTN Nigeria, Transcorp Hotel, Gereru and Seplat Energy.
President Bola Tinubu has approved the establishment of the Sector-wide Coordinating Office-Programme Management Unit (SCO-PMU) domiciled in the Office of the Coordinating Minister of Health and Social Welfare.A statement on Friday by his spokesman, Chief Ajuri Ngelale, said the unit would ensure efficient, transparent and accountable management of external grants mobilised towards the implementation of the Nigeria Health Sector Renewal Investment Initiative (NHSRII).
Ngelale said SCO-PMU would report to a Steering Committee/Ministerial Oversight Committee chaired by the Minister, including the Minister of State, Permanent Secretary; Ministry of Finance, Ministry of Budget and Economic Planning and relevant development partners. “The SCO-PMU will serve as the secretariat and delivery unit for the NHSRII and is to be headed by a national coordinator (NC).“The functions of the SCO-PMU include programme management, monitoring and evaluation, engagement and supervision of Independent Verification Agents (IVAs) for NHSRII programmes and fiduciary management, among others.“Consequently, the President has approved the appointment of Dr. Muntaqa Umar Sadiq as the National Coordinator of SCO-PMU,” he said.Report says that Sadiq has over 17 years of experience in public health, impact investing, investment banking, energy, and climate financing across the health, finance, climate and energy sectors.He had served as Head of the Performance Management and Delivery Unit at the Federal Ministry of Health and Social Welfare and Chief Executive Officer of the Private Sector Health Alliance of Nigeria.He also served as Head of the Nigeria Energy Transition Office and Private Sector Engagement Adviser at the World Bank. (NAN)
The Federal Government says it has no plan to slash scholarship students’ allowances as recently projected in the media.The Minister of Education, Prof. Tahir Mamman, stated this during a meeting with the leadership of the National Association of Nigerian Students (NANS) in Abuja on Friday.
Report says that there was a report that the ministry, through the Federal Scholarship Board, announced a slash in allowances of foreign scholars stranded in Russia, Morocco, and Algeria among others.
The slash in scholars’ allowances under the federal government’s Bilateral Educational Agreement Scholarship (BEA) was attributed to the economic crises.Mamman said that there was no slash in scholars` allowances but rather an adjustment due to Foreign Exchange fluctuations (FOREX).“We want to clarify what has been in the media on allowances paid to scholars under the Bilateral Scholarship Agreement.“We want to place it on record that the ministry and the Federal Government for that matter have not slashed the allowances due to students.“What happened is some adjustments in the amount due to them because of FOREX fluctuations, and as soon as we get the balance we have applied for, we will pay them.“But for now, what is in the budget is what we can pay. So, there is no slash, we will even be happy to increase, so this is what has led to the adjustments,” he said.(NAN)
By Laide Akinboade, Abuja
The Christian Association of Nigeria, CAN, on Friday, has urged Nigerians to calm and patient with Federal Government and should give the the government more time to address these pressing concerns.In a statement issued by CAN and signed by Archbishop Daniel Okoh ,President, CAN and made available to journalists in Abuja.
CAN also urged all Nigerians to consider alternative means of expressing their grievances. He however said CAN stands in solidarity with the citizens of nation during these challenging times of economic hardship and pervasive hunger. The statement reads in part, “As we navigate this period of crisis, it is imperative to uphold the constitutional rights of every Nigerian to peacefully protest and express their grievances. The right to assemble and voice discontent is a cornerstone of our democracy and must be protected and respected by all. Peaceful protests are a powerful tool for civic engagement, allowing the populace to communicate their concerns and hold leaders accountable. However, the anxiety related to the impending protests is heightening, especially given the volatile experiences in countries like Kenya and Pakistan.”We must also draw from our recent history. The #ENDSARS and #RevolutionNow protests, though rooted in genuine grievances, were marred by tragic incidents where miscreants hijacked the process. This led to widespread looting, destruction of properties, and unfortunate loss of lives. These experiences have shown us that mass demonstrations can quickly degenerate into chaos if not properly managed and coordinated.” In light of the planned protests scheduled to commence on 1st of August, CAN urges all Nigerians to consider alternative means of expressing their grievances. We recommend giving the government more time to address these pressing concerns. This period should be used to explore other legal avenues that will not easily give hoodlums the opportunity to hijack the exercise to destroy our national assets or endanger lives and properties. Dialogue, petitions, and town hall meetings are viable options that can yield positive results without the risk of disorder.”We call on the government to cut the cost of governance and expedite its efforts to alleviate the hardships in the land. The opulent lifestyle of political office holders must be addressed to demonstrate the sincerity of those in government to improve the living conditions of the people. Likewise, it is imperative that the government implements the newly approved national minimum wage to provide immediate relief to struggling families.”Furthermore, specific measures must be taken to put an end to kidnappings, banditry, and mass killings that have plagued various parts of our country. The security and well-being of every Nigerian should be paramount, and urgent action is required to restore peace and order.”We also call on the government to expedite its efforts to alleviate the hardships in the land. There is an urgent need for more refined and effective policies that address the root causes of the economic challenges we face. The government must deepen its consultations with stakeholders, including religious leaders, to create a more inclusive and comprehensive approach to problem-solving. By working together, we can devise sustainable solutions that reflect the needs and aspirations of the people.”In these trying times, let us all remember the words of our Lord Jesus Christ: “Blessed are the peacemakers, for they shall be called the children of God” (Matthew 5:9). As we seek to bring about positive change, let us do so with a spirit of peace, love, and unity. Our strength lies in our ability to come together, support one another, and work collectively toward a better Nigeria.”We pray for wisdom and discernment for our leaders, resilience and hope for our citizens, and divine intervention to guide us through these difficult times”.
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