Business
How The Stock Market Will Sustain Its Upward Performance In Q2’23 – Comercio Partners
Comercio Partners projects that, the easing of the cash crunch will lead to positive financial results for companies, which should have a positive impact on Q2’s GDP numbers, representing an improvement from Q1.
This optimism is tempered by the persistent uptick in inflation and the high-interest rate environment, which is expected to keep operating expenses and production costs high, thereby affecting companies’ bottom line. Nevertheless, there is optimism for an improvement in the NGX ASI in Q2.
The NGX ASI, or Nigerian Exchange All-Share Index, is a stock market index that tracks the performance of all listed companies on the Nigerian Stock Exchange.
Comercio Partners suggests that the easing of the cash crunch will positively impact listed companies, leading to improved financial performance in Q2’23 and, consequently, a positive impact on the NGX ASI.
Comercio Partners also suggests that the proposed removal of the fuel subsidy, change in monetary authorities, and successful transition of power to the new administration may lead to an appreciation in the local currency against the greenback.
It’s worth noting that projections about currency values can be difficult to make and are subject to a wide range of factors, including economic policy, geopolitical events, and global market conditions.
Comercio Partners expects the fixed income market to be generally bearish during Q2’23 due to the central bank’s hawkish monetary policy stance, which translates into higher rates on government bonds.
This means that investors who purchase government bonds during Q2’23 may earn a higher rate of return, but it also means that borrowing costs for the government may be higher.
Additionally, Comercio Partners expects that expected CRR debt will mop up liquidity and reduce banks’ ability to extend excess cash into the system. The Cash Reserve Ratio (CRR) is the portion of banks’ deposits that they are required to keep on reserve with the central bank.
By raising the CRR, the central bank can reduce the amount of money that banks have available to lend, which can help to control inflation.
Despite these challenges, Comercio Partners notes that there is still a possibility of minimal demand for the newly issued one-year treasury bill as the rate remains relatively attractive.
Comercio Partners expects Q2’23 to be a slow quarter for the fixed income markets, with bearish sentiment likely to dominate due
In a sharp turn of events, the Nigerian Naira took a significant tumble on Tuesday, plunging to N1,416.57 against the US dollar at the official market.
This staggering drop of N62.36 from the previous trading day represents a 4.60 percent loss, sparking concerns among investors and analysts alike.
Data from the FMDQ Exchange, overseeing the Nigerian Autonomous Foreign Exchange Market (NAFEM), revealed this unsettling trend.
Despite the currency’s downward spiral, trading activity surged, with the daily turnover soaring to $160.77 million, compared to Monday’s $84.83 million.
Meanwhile, at the Investor’s and Exporter’s (I&E) window, the Naira’s performance remained volatile, trading between N1,445 and N1,301 against the dollar, underscoring the currency’s precarious position in the market.
The management of Dangote Cement Plc., Ibese Plant has assured that it would continue to complement the efforts of the Ogun State Government in the development of its host communities through capacity building for the people, especially the youths.
In a statement, the company declared its commitment to development for the prosperity of the people and host communities for which it is placing a premium on the developmental needs of the communities and empowerment of their indigenes.
During a capacity development workshop for Host Community Representatives, General Manager, Human Asset Management/Admin, Aina Olugbenga, said, Dangote Cement remained committed to implementing value-adding empowerment programs to uplift the people and develop the host communities.
The workshop themed: “Team Building, Inclusivity and Stewardship, a panacea to effective Community Representatives” according to him, was to equip the Community reps with the right skills to offer quality representation for their people. He stated: this capacity building workshop is aimed at developing and strengthening the skills, instincts, and abilities of the communities through their representatives adapt and thrive in a fast-changing world.
Olugbenga noted that the workshop is part of the management’s strategy to improve relationships with the host communities and urged the participants to leverage the knowledge acquired from the workshop to improve service delivery to their people and the Cement plant.
According to him, Dangote Cement, Ibese Plant is committed to building the capacity of the people and institutions in the communities by identifying skill gaps and partnering to up their skills for economic prosperity. This, he stated, was in anticipation that other stakeholders will continue to play their part by partnering and supporting the Company to ensure peaceful co-existence and shared prosperity for all.
Said he, “Apart from reciprocating the good gesture of Dangote Cement by ensuring peace at all times and keeping an open and trusting mind towards the organization, we also desire from our community leaders and representatives who are present here, the ownership of all Social Investment programme, be it training or infrastructure because they are meant for the betterment of our people.”
On behalf of the Community Representatives, Hon. Dayo Ogunyinka thanked the Dangote Cement management for the workshop while assuring continued commitment to effective, efficient and selfless discharge of their roles and responsibilities to their various communities and the Plant.
The Nigeria Deposit Insurance Corporation (NDIC) has announced revisions to the Maximum Deposit Insurance Coverage for banks operating within the country.
NDIC’s Managing Director, Bello Hassan, disclosed the updated coverage benchmarks during a media briefing in Abuja on Thursday.
The coverage for Deposit Money Banks has been increased from N500,000 to N5 million, for Microfinance Banks from N200,000 to N2 million, for Primary Mortgage Banks from N500,000 to N2 million, and for Mobile Money Operators subscribers’ pass-through from N500,000 to N5 million per subscriber.
Hassan underscored that the objective of the update is to enhance depositor safety, foster public trust, promote the inclusivity of financial services, and ensure the overall stability of the financial sector.
More to follow.. . .. .
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