Nigerian Business Outlook for the Week

Photo credit: www.wealthresult.com
Photo credit: www.wealthresult.com

#Brexit is also having its toll on the Nigerian market because it has triggered negative sentiments among investors. The stock market is still volatile and people do not know where the pendulum will swing before the close of this week.

Analysts expect cautious stock trading this week

Industry analysts have predicted that there will be cautious trading in the nation’s stock market this week.

This is coming after global borders plummeted at last week’s close as the United Kingdom voted to leave the European Union. The move had triggered negative sentiments among investors across the globe.

“States will not get bailout if monthly allocation hits N500bn”- Kemi Adeosun

The Minister of Finance, Mrs. Kemi Adeosun, said that state governments will not get bailout funds any month the allocation from the Federation Account Allocation Committee exceeds N500bn.

She did say the funds have been secured from the private sector through the issuance of bonds.

NSE facilitates N11tn securities investment in 10 years

The Nigerian Stock Exchange (NSE) has facilitated the investment of N11.094 trillion in the  nation’s capital market in the last 10 years. The investments were made in equities and bonds.

The following years accounted for the highest investments – 2007, 2008, 2013 and 2014. Investors traded securities worth N2.379 trillion and N2.086 trillion in 2008. Oscar Onyekachi, the CEO of NSE said some of the factors that affected poor performance of the market in 2015 include political risk, currency volatility and uncertainty in global crude oil prices.

GSK investors record 56% capital gain in one week

Investors in Glaxosmithkline Consumer Nigeria Plc (GSK) last week witnessed a record of 55.6 percent capital gain following a bullish trend at the stock exchange.

The shares gained N7.90 rise to close at N14.22 per share in a week that 40 stocks appreciated. Market operators said that the renewed demand for GSK could be for speculative reasons.

Dangote clarifies FOREX allocation to refinery, fertilizer plant

Aliko Dangote, President of Dangote Group, has clarified that his refinery, petrochemical and fertilizer plant did not collect forex from the Central Bank of Nigeria (CBN) as speculated. He stated that his company raised a substantial part of the forex being used in the execution of the multi-billion dollar project.

Artisans raise wages by 60%

Artisans have increased their charges on construction sites by as much as 60 percent in response to the current challenges in the nation’s economy. Builders who have ongoing construction works now have to contend with increased charges.

Carpenters and masons who used to charge about N3,000 per day on building sites before the current economic hardship, now ask to be paid N5,000 accounting for an increase of about 66.6 percent.

(With information from This Day and Punch newspapers)