Forex: 700 BDCs under threat over low patronage
No fewer than 700 Bureau De Change operators have come under threat as purported uncompetitive exchange rate continues to hit their bottom line.
The President, Association of Bureaux De Change Operators of Nigeria, Alhaji Aminu Gwadabe, said the development had rendered the BDCs inactive at the Central Bank of Nigeria foreign exchange window. This, he added, had put the sustainability of their business under serious threat.
Caverton Wins Chevron Contract for Helicopter Services
Caverton Offshore Support Group Plc is set for improved financial performance as its subsidiary, Caverton Helicopters, has been awarded a five-year logistics support contract by Chevron Nigeria Limited (CNL), operator of the Nigerian National Petroleum Corporation (NNPC/CNL Joint Venture, for the provision of aviation services with a two- year renewable option.
In a notification to the Nigerian Stock Exchange (NSE) last Friday, Caverton said the contract was awarded following an extended competitive tendering process.
Naira reverses gain, closes at 370/dollar
The naira closed at 370 per United States dollar at the parallel market on Friday, reversing the modest gain it recorded on Thursday. The local unit had closed at 368/dollar on Thursday after closing at 370/dollar for most part of last week.
Analysts had warned that the naira would weaken against the greenback on the black market due to rising demand for the dollar.
SEC vows electronic transmission of annual reports
Securities and Exchange Commission (SEC) has vowed the enforcement of electronically transmitted annual reports to shareholders. The idea is to ensure listed companies receive such reports few weeks before their annual general meeting.
SEC’s Director General, Mounir Gwarzo, disclosed this at the agency’s second quarterly Capital Market Committee (CMC) meeting press briefing in Lagos. He observed that 98 percent of shareholders don’t get their annual report on time except for institutional investors.
FMDQ OTC Exchange Records N78.9tn Transactions in Eight Months
The fixed income and currency markets operated by FMDQ OTC Securities Exchange have recorded transactions worth N78.90 trillion between January and July. Trading statistics obtained by THISDAY, however, showed a decline of 8.6 per cent in the month of July. Investors traded N11.53 trillion in July, down from N12.62 trillion recorded in June. But in all, the market has facilitated N78.90 trillion investments in seven months.
Interbank Rates Fall on Matured Treasury Bills
Nigeria’s interbank overnight lending rate fell sharply on Friday to an average of 12 per cent from around 60 percent a week ago after the central bank repaid matured treasury bills and a refund of excess cash deposited by banks to buy dollars.
The central bank sold $100 million at its special intervention auction in the foreign exchange market on Tuesday, which was less than the amount requested by banks, leading to a refund of the excess deposited by banks on Friday, Reuters disclosed.
CBN, SEC mull universal licence for stockbrokers
Nigeria’s apex financial services regulators have started discussions on a new framework that will expand the scope of operations and allow brokers and dealers at the capital market to have access to the interbank market and the primary official discount window.
The Securities and Exchange Commission (SEC), Nigeria’s apex capital market regulator and the Central Bank of Nigeria (CBN), Nigeria’s apex bank, are leading other stakeholders to open up a new ecosystem for the stockbroking industry. The new ecosystem for the main capital market operators was part of the highlights of the discussions at the second quarter meeting of the Capital Market Committee (CMC) meeting held in Lagos.
‘High Returns in Money Market Affecting the Stock Market’
The high returns on money market instruments is discouraging investors from the stock market, one of THISDAY’s National mentors, Mr. Yemisi Shyllon, has said. He stated this while responding to questions raised by readers of THISDAY Life Lessons column published every Sunday.
According to Shyllon, from his observations, the returns on the money market instruments are far greater than what we have in the stock market. “So, any reasonable investor would always put his money in the money market, and preferably in the mutual funds which are based on baskets of money market investment instruments. Until government is able to put in place policies that would restore investors’ confidence and also protect them from infractions, you would continue to see people shy away from the market,” he said.
‘How regulators can sustain stock rally’
With the positive signs witnessed recently in the stock market, raising the hope that this year may set the market on a gradual recovery path, investors have stressed the need for regulators to reinforce engagements with listed firms, and ascertain areas of possible interventions to reduce irregularities and subsequent delisting from the market.
Indeed, report from the Nigerian Stock Exchange (NSE), showed that among the 77 companies delisted from its daily official list in the last 10 years, 2006 to May 2016, about 54 were delisted due to regulatory instruction, while others cited harsh economic climate and parent company buy-out as reasons.
FBN General Appoints Mimiko as ED
FBN General Insurance Limited has announced the appointment of Babatunde Mimiko as its Executive Director. The company said in a statement that Mimiko brings on board a sterling 18-year career across the financial services industry including a short stint in banking.
The company stated expressed delight with Mimiko’ appointment, adding, he “is no doubt an ideal fit to help our business to the next level”.