The Securities and Exchange Commission has approved the reduction in the transaction costs of raising funds from the capital market. This action is aimed at making listing on the capital market attractive to companies. The commission has approved that the cost of listing equities should be reduced from 3.17% (of the value of what is being listed) to 2.83%. While fixed income securities should be reduced from 3.97% to 3.28%. The reduction has started having a positive impact on the capital market as more issuers of capital market securities were already coming into the market.
The Statistician-General of the Federation, Yemi Kale, stated that Nigeria’s economy has not recovered from the 2016 recession. The conflicts between farmers and herdsmen dragged down the Gross Domestic Product (GDP) in the first quarter of 2018. The performance of the nation’s economy in the second quarter of the year is not encouraging. However, the projection of the International Monetary Fund (IMF) that the economy would grow by 2.1% by the end of 2018 is still achievable.
The Federal Government of Nigeria and the Republic of Korea have sealed an agreement for the construction of aid projects in various sectors of the economy. The Minister of State for Budget and National Planning, Mrs Zainab Ahmed, signed the agreement on behalf of the Federal Government while the Korean Ambassador to Nigeria, Major General In-Tac-Lee (retd) signed for the Korean government. This agreement captured projects that were in line with Nigeria’s development priorities as encapsulated in the Economic Recovery and Growth Plan and this will help achieve sustainable economic development in Nigeria.
The National Pension Commission has directed the Pension Fund Administrators to pay additional 5% lump sum to retirees that were initially paid 20% of total balance in their Retirement Savings Accounts on retirement. Those whose lump sum payment was as low as 16% would get extra 9% of their Retirement Savings Accounts. The decree was made after the commission had directed all Pension Fund Administrators to revert to the old template of 25% minimum lump sum payment.
The African Export-Import Bank has disbursed a total of $422million loans in six months. This represents a 5.07% increase in its loan disbursements as of December 2017. Also there was gross revenue of $343million, which amounted to a $21million increase over the gross revenue for the same period in 2017. The higher gross revenue is as a result of significant increase in fee income by 119% while interest and similar income recorded a 2% growth compared to the prior year performance.
At the end of the week, International Breweries Plc tops the market at closing price of N35.20 while Neimeth International Pharmaceuticals Plc has the greatest loss in the market with a closing price of N0.60.
The NSE All-Share Index and Market Capitalization valued 35,266.29 and N12.875 trillion respectively at the end of the week. This shows a depreciation by 0.51% for both indices’ last week value.
A total of 2,647units of Federal Government Bonds was traded during the week at N2.725million in 17 deals compared to 7,787units valued at N8.005million in 11 deals from last week’s value.
The Crude Oil price declined by –1.60 from its last week value of $72.93.
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