Connect with us

     

Business

Revisiting the N305bn fuel subsidy in 2019 budget

Published

on

Revisiting the N305bn fuel subsidy in 2019 budget

President Muhammadu Buhari, for the first time in his four-year tenure, appropriated N305 billion fuel subsidy in the 2019 budget. ADEOLA YUSUF examines the implications of this on the downstream oil market

 

 

We have earmarked N305 billion equivalent to one billion US dollars for under-recovery by the Nigeria National Petroleum Corporation on Premium Motor Spirit in 2019,” President Muhammadu Buhari in his budget presentation speech to a joint session of the National Assembly in Abuja recently. Obviously, he was aware this statement would stir controversy, hence, he added: “Let me take this opportunity to address and clarify the under-recoveries on petrol. In a period of economic challenges where purchasing power is weak, we must reduce some of the burden on Nigerians.” What made the inclusion of N305 billion fuel subsidy in the budget unique is that the Buhari administration had withdrawn subsidy on petrol in 2016, forcing independent oil marketers to pull out of importation of the product. The action by the marketers left NNPC as the sole importer of petrol, whose pump price remained capped at N145 per litre against a landing and supply cost, which at some point jumped to as high as N185/litre. Since then, the NNPC had been drawing from the Nigeria Liquefied Natural Gas dividend fund to cover the under-recoveries amounting to N40/litre in the importation of petrol.

It’s a no for marketers

Oil marketers and private importers in Nigeria, last Tuesday, however, demanded total liberalisation of the downstream sector as a major measure to end the culture of waste on fuel subsidy. They are fully aware that government had appropriated a whopping N305 billion for fuel subsidy in the 2019 budget but they unanimously declared that until the downstream sector of the oil sector is fully liberalised, the subsidy on imported refined products will continue to be a recurring factor in Nigeria’s energy mix.

Tango over subsidy

About 3,000 contract employees at depots, marine storage facilities and retail outlets of the major oil marketers in Nigeria are jittery, as their business ties between lenders and fuel marketers hit the record low. The marketers have been locking horns with government over fuel subsidy backlog of about N800 billion inherited by the present government. Because government is a continuum, this has been a burden to bear by the present government, which came to power with promise to end subsidy. The fear that this situation could lead to salary cut and outright loss of job, New Telegraph gathered last weekend, is rocking the downstream sector. The sector had earlier, been declared bearish by stakeholders. Executive Secretary of MOMAN, Clement Isong, told this newspaper on the sideline of a press conference in Lagos, that most of his members’ businesses are now running at loss. Consequently, the lenders, he said, are not in good relationship with marketers. The return on investment (RoI) in the downstream made with loan facilities from banks is very low, he said, stressing that the future of the downstream sector is very bleak if this economic situation is allowed to continue. A marine storage contractor for one of the major marketers, however, told our correspondent last weekend that contract staff bloc is unsettled by what is playing out. “Direct staff on the payroll of major marketers in Nigeria are well over 1, 500,” he said. “They are protected by unions in case of salary cut or outright job loss. Don’t forget that it is natural that the first set of workers that usually suffer from a situation like this are the contract staff. As we speak, over 3, 000 staff are in this category and everyone is jittery of likely unpleasant outcome of the situation.” Although MOMAN was silent on effects of their dipping ties with lenders, the association peopled by 11 Plc, Conoil, Forte Oil, MRS, OVH Energy and Total, validated the figure of staff strength as given by the contractor. MOMAN staff strength, a document by the association showed, comprises of 1, 500 direct staff, 3, 000 indirect staff and more than 100, 000 indirect staff. These members of staff are engaged with key assets of MOMAN across the country, including 23 depots nationwide, 2,454 retail outlets, 11 lubricant blending plants and seven marine storage/jetty installations. Other assets where employees are employed are; four bitumen plants, 511,480 MT gas storage facilities and 50 admin officers, 5, 182 drivers of trucks under contract and 3 LPG installations.

Basis for protest

Emphasising the need for government to have a re-think on the measure to deregulate and libralise the downstream, the stakeholders including MOMAN, Independent Petroleum Marketers Association of Nigeria (IPMAN) and Depot And Petroleum Products Marketers Association of Nigeria (DAPPMAN), said that only this could pave the way for more attractive investments in the sector. The unfettered private sector participation and investment, they said in a statement, would be impossible with the current regime of highly regulated downstream market. Chief Executive Officer/Executive Secretary, MOMAN, Mr. Isong, said that the downstream petroleum industry regulations should be in line with international best practice. The implementation and compliance with these regulations, he said, would feature the concept of cost recovery and competitive returns on investment. All these would ensure the sustainability of the downstream petroleum industry, Isong said. “As the market players grow their businesses, they will increasingly become exposed to risk management challenges and will move their capital to areas where return matches the risks,” he said. “ We recommend that government should deregulate pump prices and focus on enforcing compliance with adequate regulations on health, safety, environment and quality.” Isong however, said that only total deregulation would save the situation. Contending that doing so will help attract more investments to the oil sector, he said only deregulation would encourage the establishment of private refineries and other related infrastructure in the country.

The NNPC angle

The President of MOMAN, Adetunji Oyebanji, stated that NNPC is now the major importer of fuel with over 90 per cent margin. The Corporation has been bearing the under recovery emanating from this. “NNPC did not ask anyone of us to stop importation of fuel, what we only found out is that the market is extremely unfavourable to fuel importation by private investors,” Oyabanji said. Under-recovery of premium motor spirit, PMS, also known as petrol, recently dropped to N20 per litre from over N80 in the last quarter of 2018. NNPC, which confirmed this in a document sighted by this newspaper, however, noted that the Federal Government was still committed to bearing the additional cost above the regulated price of N145 per litre.

Protest across board

Executive Secretary of DAPPMAN, Mr. Olufemi Adewole, added that the rise in the landing cost of petroleum products has renewed the calls for a full deregulation of the downstream sub-sector of the nation’s oil and gas industry. The Nigerian National Petroleum Corporation (NNPC), Adewole said, has been the sole importer of petrol into the country for more than a year, as private oil marketers stopped importation due to shortage of foreign exchange and increase in crude oil prices. This has made the landing cost of the product higher than the official pump price of N145 per litre. “In the downstream sector, the NNPC continued to ensure increased premium motor spirit supply and effective distribution across the country. In pursuit of sustained seamless distribution of petroleum products and zero fuel queues across the nation, the Corporation has continued to maintain an eagle eye on the daily stock of PMS,” the Corporation said in its latest monthly report.

“Federal Government had resorted to subsidy regime following an increase in the landing cost of petrol, with NNPC, which was responsible for about 90 per cent of the importation of the product, bearing the latest subsidy cost on behalf of government. Also, the National President of IPMAN, Mr. Chinedu Okoronkwo, said that total deregulation of the downstream sector would also attract more investment, generate more jobs and reduce the pressure on foreign reserves. He stressed the need for total deregulation and liberalization of the downstream market to address the persistent challenges in the oil and gas industry. He said that it is expected that deregulation of the downstream will lead to improved supply, competition and eventually drive down pump prices, as well as encourage investments in refineries and other parts of the downstream sector. The challenges with procuring forex significantly affected marketers’ ability to import petrol in recent times, Okoronkwo said, adding; “Thus, by liberalizing the market, the government expects importers to find ingenious ways to procure forex from autonomous sources and improve product availability.

In defense of subsidy

Since then, NNPC has been drawing from the Nigeria Liquefied Natural Gas dividend fund to cover the under-recoveries amounting to N40/litre in the importation of petrol. So far, NNPC has utilised 1.05 billion dollars or N320 billion of the fund to cover the under-recoveries, according to its Group Managing Director, Mr Maikanti Baru. However, this has drawn the anger of the Senate, which believes the oil company lacked the legal powers to unilaterally spend the money without appropriation by the National Assembly. According to analysts, the provision for subsidy in the 2019 budget proposal will lay to rest the disagreement between the lawmakers and the NNPC on the matter. Buhari said the problem with subsidy in the past was abuse and corruption, especially by independent oil marketers. “Today, the governmentowned NNPC is the sole importer of PMS, and therefore the under- recovery is from the NNPC trading account. This means the possibility of some oil marketers filing bogus claims is removed,” the president said. “We will continue working to bring it (subsidy) downward to ensure such revenue sources are freed up to meet the developmental needs of our people.”

Last line

There are no two ways to the issue of subsidy other than liberalisation of the market. This, which is expected to ventilate healthy competition, will end the burden subsidy inflicts on Nigeria’s economy.

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Aviation

S’African airline cash injection imminent, says it needs more

Published

on

By

S’African airline cash injection imminent, says it needs more

South Africa’s cash-strapped national airline SAA says a government cash injection of 5.5 billion rand ($376 million)approved for the 2019/20 financial year is expected at the end of the month but it still needs more money, a presentation to lawmakers showed on Wednesday.

South African Airways (SAA) has debt of about 12.7 billion rand, consisting of 9.2 billion rand of legacy debt and a 3.5 billion rand working capital facility provided by banks, reports Reuters.

“SAA requires 2 billion rand to fund working capital in FY 2019/20 by December 2019,” the presentation said.

Continue Reading

Aviation

S’African airline cash injection imminent, says it needs more

Published

on

By

S’African airline cash injection imminent, says it needs more

South Africa’s cash-strapped national airline SAA says a government cash injection of 5.5 billion rand ($376 million)approved for the 2019/20 financial year is expected at the end of the month but it still needs more money, a presentation to lawmakers showed on Wednesday.

South African Airways (SAA) has debt of about 12.7 billion rand, consisting of 9.2 billion rand of legacy debt and a 3.5 billion rand working capital facility provided by banks, reports Reuters.

“SAA requires 2 billion rand to fund working capital in FY 2019/20 by December 2019,” the presentation said.

Continue Reading

Aviation

Ethiopian crash victims want 737 MAX documents from Boeing, FAA

Published

on

By

Ethiopian crash victims want 737 MAX documents from Boeing, FAA

A lawyer for victims of Ethiopian Airlines Flight 302 said on Tuesday he wants Boeing Co and the U.S. Federal Aviation Administration to hand over documents about the decision to keep the Boeing 737 MAX in the air after a deadly Lion Air crash last October.

A week after Lion Air Flight 610 nose-dived into the Java Sea, killing all 189 aboard, the FAA warned airlines that erroneous inputs from an automated flight control system’s sensors could lead the jet to automatically pitch its nose down, but the agency allowed the jets to continue flying.

Five months later, the same system was blamed for playing a role when ET302 crashed on March 10, killing all 157 passengers and crew and prompting a worldwide grounding of the 737 MAX that remains in place.

“The decisions to keep those planes in service are key,” Robert Clifford of Clifford Law Offices, which represents families of the Ethiopian crash victims, said at a status hearing before U.S. Judge Jorge Alonso in Chicago.

Nearly 100 lawsuits have been filed against Boeing by at least a dozen law firms representing families of the Ethiopian Airlines crash victims, who came from 35 different countries, including nine U.S. citizens and 19 Canadians.

Families of about 60 victims have yet to file lawsuits but plaintiffs’ lawyers said they anticipate more to come. Most of the lawsuits do not make a specific dollar claim, though Ribbeck Law Chartered has said its clients are seeking more than $1 billion.

The lawsuits assert that Boeing defectively designed the automated flight control system. The system is believed to have repeatedly forced the nose lower in both accidents.

Boeing declined to comment on the lawsuit directly but said it is cooperating fully with the investigating authorities. The manufacturer has apologized for the lives lost in both crashes and is upgrading software. But it has stopped short of admitting any fault in how it developed the 737 MAX, or the software.

The FAA said it does not comment on litigation. The agency has defended its decision not to ground the 737 MAX sooner and has said it is following a thorough process for returning the jet to passenger service.

Clifford, who was appointed lead counsel on Tuesday to represent the majority of plaintiffs suing Boeing over the Ethiopian Airlines crash, said he would pursue two tracks in the case: one for clients who wish to settle with Boeing and another for those who want to push for discovery.

In his role as lead counsel, Clifford will help the different plaintiffs “speak with one voice,” said Ricardo Martinez-Cid of Podhurst Orseck, a law firm that is also representing Ethiopian Airlines crash victims.

Plaintiffs’ lawyers who represent victims of airline crashes generally work for free and receive a percentage of the settlement or award.

Amos Mbicha, who lost his sister and her son in the crash of ET302 which occurred soon after it departed Addis Ababa for Nairobi, said some Kenyan families had not sued yet because they had difficulty choosing between the many law firms seeking to represent victims, reports Reuters.

“You look at the brochures, it all looks like everyone worked on the same cases,” he said. “It’s confusing for people.”

Dozens of lawsuits have been filed against Boeing by families of Lion Air crash victims, who were almost all from Indonesia. Those cases are already in mediation and are not expected to be consolidated with Ethiopian Airlines.

“While the cases share some common issues there are big differences, most importantly the critical evidence of what Boeing did and did not do between October and March,” said Justin Green, a lawyer from Kreindler & Kreindler, who was appointed co-chair of the plaintiffs’ committee on Tuesday.

Continue Reading

Aviation

Bees delay flight for over two hours

Published

on

By

Bees delay flight for over two hours

Bad weather. A technical fault. A late-arriving aircraft. Just some of the reasons your flight might be delayed.

One to add to the list: a swarm of bees.

On Sunday morning, Air India flight 743 from Kolkata to Agartala was delayed by two and a half hours after a swarm of honeybees clamped themselves onto the window of the flight deck.

The swarm took up residence on the left hand window panes, obstructing the pilots’ vision.

Windscreen wipers failed to remove the bees. The swarm was only cleared when the airport fire crew was recruited to use water cannons.

The plane had already been delayed 90 minutes due to a technical fault, before the bee attack added an extra hour’s delay.

The flight to Agartala, in northeast India, takes just 60 minutes.

“The plane left the parking bay at its scheduled departure time, then there was a technical issue and it had to return back to the parking bay,” Kolkata airport director Kaushik Bhattacharjee told CNN. “There was a delay of 1.5 hours due to the ground staff attending to the technical fault.

“After that, there was a bee attack. A swarm of honeybees came and landed on one section of the cockpit glass. Thousands of bees just sat on the left side of the cockpit window blocking the view of the pilot.

“The pilot tried to remove the bees by using windscreen wipers but it didn’t work.

“Airline staff informed the airport authorities and we deployed a fire tender from the fire station located inside the airport. Using a water cannon, they dispersed the bees.”

The plane took off two and a half hours behind schedule. There were 136 passengers on board, including Bangladeshi politician Hasan Mahmud, the country’s Minister for Information.

Kolkata airport — Netaji Subhas Chandra Bose International — is one of India’s busiest, processing 21.8 million passengers a year, with 40 million predicted by 2021.

It is known as one of the country’s most modern airports, using solar panels to generate energy.

Bhattacharjee told CNN that airport staff had carried out checks for bees in the wake of the incident.

“We did not find any beehives on any structures inside the airport,” he said. “They came from outside the airport premises.”

Continue Reading

Energy

Investors turn heat on Big Oil ahead of UN climate summit

Published

on

By

Investors turn heat on Big Oil ahead of UN climate summit

Investors managing $15 trillion in assets turned up the heat on oil and gas sector on Wednesday ahead of a United Nations summit in New York aimed at accelerating efforts to fight climate change.

Energy companies are on the front line of the global transition to a low-carbon economy, with investors potentially on the hook for hefty losses if the companies do not overhaul their business models in time.

In its most detailed analysis of the energy sector, the Transition Pathway Initiative (TPI) said 31 out of 109 energy firms were aligned with commitments governments have so far made under the 2015 Paris Agreement to curb greenhouse gas emissions.

However, of the 50 oil and gas companies assessed, just two – Royal Dutch Shell Plc and BP Plc – were aligned with existing national emissions targets. The remaining 29 companies on track to meet such commitments were all electric utilities.

“We, as a major institutional investor, are concerned that transition risk – the large and growing gap between government targets and company ambitions – is a major source of investment risk,” said Helena Viñes Fiestas, global head of stewardship and policy at BNP Paribas Asset Management.

United Nations Secretary-General Antonio Guterres wants governments to make more ambitious pledges to cut emissions at the U.N. summit on Monday, which he convened to boost the Paris Agreement ahead of a crucial implementation phase next year.

Current pledges by governments to cut emissions are nowhere near enough to meet the Paris target of keeping the rise in average global temperatures to well below two degrees Celsius, with a goal of limiting warming to 1.5 degrees Celsius.

That means that some companies’ targets can bring them in line with existing national plans under the Paris Agreement, but remain far from adequate to avert the worst of the natural disasters and economic damage forecast for a warming world.

TPI, which includes major pension funds and asset owners, said none of the oil and gas companies it assessed are doing enough to align their businesses with the changes needed to meet the Paris temperature targets.

The findings echoed a report published this month by financial think-tank Carbon Tracker, which found that big oil companies had approved $50 billion of projects since last year that will not be viable if governments implement the Paris deal.

By contrast, TPI found that nearly half of the utility companies are aligned with national commitments already made under the Paris Agreement, and more than 20% are on target to meet a temperature rise of below 2 degrees Celsius, the TPI said.

That is partly because some utilities have been quicker to pivot their business models toward renewable energy than oil and gas companies, reports Reuters.

“There is no doubt that oil and gas companies are in a difficult position in navigating the transition to a low carbon economy,” Euan Stirling, global head of stewardship and ESG investing at Aberdeen Standard Investments.

“That makes it all the more important that we have at least some sector constituents who are starting to respond to the climate crisis by repositioning their businesses from the top down in the same way that many power generators have.”

The TPI is one of several investor initiatives launched in recent years aimed at helping boost the quality and effectiveness of investor engagement with companies on climate. Among its other 45 signatories are firms including Legal & General Investment Management and U.S. pension scheme CaLPERs.

“We believe that investors should use their voice to hold top management of investee companies accountable for incorporating climate-related issues in their corporate strategy,” Carola van Lamoen, head of active ownership at Dutch asset manager Robeco.

Continue Reading

Energy

Investors turn heat on Big Oil ahead of UN climate summit

Published

on

By

Investors turn heat on Big Oil ahead of UN climate summit

Investors managing $15 trillion in assets turned up the heat on oil and gas sector on Wednesday ahead of a United Nations summit in New York aimed at accelerating efforts to fight climate change.

Energy companies are on the front line of the global transition to a low-carbon economy, with investors potentially on the hook for hefty losses if the companies do not overhaul their business models in time.

In its most detailed analysis of the energy sector, the Transition Pathway Initiative (TPI) said 31 out of 109 energy firms were aligned with commitments governments have so far made under the 2015 Paris Agreement to curb greenhouse gas emissions.

However, of the 50 oil and gas companies assessed, just two – Royal Dutch Shell Plc and BP Plc – were aligned with existing national emissions targets. The remaining 29 companies on track to meet such commitments were all electric utilities.

“We, as a major institutional investor, are concerned that transition risk – the large and growing gap between government targets and company ambitions – is a major source of investment risk,” said Helena Viñes Fiestas, global head of stewardship and policy at BNP Paribas Asset Management.

United Nations Secretary-General Antonio Guterres wants governments to make more ambitious pledges to cut emissions at the U.N. summit on Monday, which he convened to boost the Paris Agreement ahead of a crucial implementation phase next year.

Current pledges by governments to cut emissions are nowhere near enough to meet the Paris target of keeping the rise in average global temperatures to well below two degrees Celsius, with a goal of limiting warming to 1.5 degrees Celsius.

That means that some companies’ targets can bring them in line with existing national plans under the Paris Agreement, but remain far from adequate to avert the worst of the natural disasters and economic damage forecast for a warming world.

TPI, which includes major pension funds and asset owners, said none of the oil and gas companies it assessed are doing enough to align their businesses with the changes needed to meet the Paris temperature targets.

The findings echoed a report published this month by financial think-tank Carbon Tracker, which found that big oil companies had approved $50 billion of projects since last year that will not be viable if governments implement the Paris deal.

By contrast, TPI found that nearly half of the utility companies are aligned with national commitments already made under the Paris Agreement, and more than 20% are on target to meet a temperature rise of below 2 degrees Celsius, the TPI said.

That is partly because some utilities have been quicker to pivot their business models toward renewable energy than oil and gas companies, reports Reuters.

“There is no doubt that oil and gas companies are in a difficult position in navigating the transition to a low carbon economy,” Euan Stirling, global head of stewardship and ESG investing at Aberdeen Standard Investments.

“That makes it all the more important that we have at least some sector constituents who are starting to respond to the climate crisis by repositioning their businesses from the top down in the same way that many power generators have.”

The TPI is one of several investor initiatives launched in recent years aimed at helping boost the quality and effectiveness of investor engagement with companies on climate. Among its other 45 signatories are firms including Legal & General Investment Management and U.S. pension scheme CaLPERs.

“We believe that investors should use their voice to hold top management of investee companies accountable for incorporating climate-related issues in their corporate strategy,” Carola van Lamoen, head of active ownership at Dutch asset manager Robeco.

Continue Reading

Aviation

Plane makes emergency return to airport after engine fire reported

Published

on

By

Plane makes emergency return to airport after engine fire reported

Officials say an Air China jet bound for Beijing has made an emergency return to Dulles International Airport after reporting an engine fire.

In a statement, the Federal Aviation Administration says that the Air China flight landed safely Tuesday in Washington after reporting an engine fire and that its pilot was in contact with air traffic control at all times.

The FAA says Air China Flight 818 departed Dulles at 4:39 p.m. EDT and returned at 5:54 p.m.

A spokesman for the Washington Metropolitan Airport Authority identified the craft as a Boeing 777, which the aircraft maker says seats from 317 to 396 people, reports The Associated Press.

A spokeswoman with Air China didn’t immediately respond to requests for additional information.

Continue Reading

Business

Zenith emerges 2nd most credible lender in Ghana

Published

on

Zenith emerges 2nd most credible lender in Ghana

Z

enith Bank, Ghana, is the second most credible bank in Ghana, according to Credmap Technology Ghana Banking Credibility Index (GBCI).

 

 

According to the firm, the inaugural “credibility-rating” engine is capable of combining crowd-rating and data mining to generate “credibility scores” of individuals and institutions using pooled data about their track record, history, commentary, biography, popular sentiment and reputation.

 

 

The assessment, which covered the 2018 financial year, saw Standard Chartered, Zenith Bank Ghana, Ecobank Ghana, UBA Ghana and Barclays Bank placing 1st, 2nd, 3rd, 4th and 5th respectively.

 

 

The other banks are: Societe Generale (6th), Stanbic Ghana (7th), Fidelity Ghana (8th), Access Ghana (9th) and GCB Bank (10th).

 

 

All 30 of Ghana’s tier-one/universal banks were benchmarked against Credmap’s measures, compared to each other, and then ranked in what became the GBCI, a process that was overseen by a team of senior technical analysts at Konfidants, a management consulting company based in Accra, Johannesburg and Geneva.

 

 

Some major criteria in the computation of the GBCI included executive track record of the board and management membership, educational qualifications of board members and senior management personnel and the emphasis on continuous professional development with the studied banks.

 

 

Others were reputational factors, degree of board independence from shareholder and management control and influence and consistency and accuracy in board management communications as ascertained from comments in the media, advertising, and publications, including official documentation and reports.

 

 

In this inaugural index, the primary focus was on the quality of bank boards and senior management personnel.

 

The Konfidants team believed that in the wake of recent developments in the banking sector, corporate governance and management competence have emerged, by far, as the most critical factors in determining bank performance and success.

 

 

The analysts were able to more rapidly double-check how traditional benchmarks, such as net interest margin, capital adequacy, asset quality, return on equity and return on assets, conceal or reveal the most salient factors in banking governance and reputation.

Continue Reading

Business

Wall Street subdued as focus shifts to Fed meeting

Published

on

Wall Street subdued as focus shifts to Fed meeting

U.S. stocks were little changed on Tuesday as investors moved to the sidelines ahead of the Federal Reserve’s two-day policy meeting, while the impact of weekend attacks on Saudi Arabia’s biggest oil refinery faded.

 

Equity markets took a hit on Monday as the attacks wiped out half of Saudi Arabia’s oil production, sending oil prices soaring, while fuelling geopolitical tensions. But President Donald Trump’s statement that he does not want war and a Reuters report that Saudi Arabia was close to restoring 70% of the oil production lost calmed investor nerves.

 

According to Reuters News, the benchmark S&P 500 index .SPX recovered early losses to rise slightly, with the so-called defensive consumer staples .SPLRCS, utilities .SPLRCU and real estate .SPLRCR sectors posting the biggest gains.

 

The energy index .SPNY tracked a drop in oil prices, after recording its best one-day surge since January on Monday. The U.S. central bank concludes its policy meeting on Wednesday, with traders currently expecting a 63.5 per cent chance of a quarter percentage point cut from the Fed this week, down from 88.8 per cent on Friday, according to CME’s FedWatch.

 

“It’s just typical trading on the vigil of a Fed meeting,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York. “We haven’t seen any panic from what happened over the weekend. I think (the Fed) will stick with a quarter of a percentage point cut even after the Saudi attack.”

 

Banks .SPXBK, which tend to underperform in a lower interest rate environment, fell 0.95 per cent and were the biggest drag on the S&P 500. Since the last interest rate cut in July, U.S. economic data has shown mixed signals about the domestic economy. While strong retail sales and wage growth have bolstered consumer confidence, a protracted U.S.- China trade war has weighed on manufacturing and business sentiment.

 

Latest data showed U.S. manufacturing output increased more than expected in August, rebounding from a drop in July, while homebuilders’ optimism grew unexpectedly brighter in September. ET, the Dow Jones Industrial Average .DJI was down 22.68 points, or 0.08 per cent, at 27,054.14, the S&P 500 .SPX was up 1.95 points, or 0.07 per cent, at 2,999.91.

 

The Nasdaq Composite .IXIC was up 6.66 points, or 0.08 per cent, at 8,160.21. Among stocks, Chipotle Mexican Grill Inc (CMG.N) rose 3.3 per cent as it added a new steak dish to its menu in the United States for the first time in three years.

Continue Reading

Business

NSE extends decline by N80bn

Published

on

NSE extends decline by N80bn

LOW CONFIDENCE

Airtel Africa Plc led losers with a drop of 10 per cent to close at N283.50 per share

 

Trading activities on the floor of the Nigerian Stock Exchange yesterday witnessed another drop in share prices as bears sustained grip on the local bourse following the sell-off that has pervaded the stock market. The local bourse recorded 22 gainers against 15 losers.

 

Consequently, the All-Share Index dipped 67.55 basis points or 0.6 per cent to close at 27,407.04 index points as against 27.574.32 recorded the previous day while market capitalisation of equities depreciated by N80 billion from N13.421 trillion the previous day to N13.341 trillion as market sentiment remained on the negative territory. Meanwhile, a turnover of198 million shares exchanged in 3,830 deals was recorded in the day’s trading.

 

The premium sub-sector was the most active (measured by turnover volume); with 105.2 million shares exchanged by investors in 1,539 deals. Volume in the sub-sector was largely driven by activities in the shares of Access Bank Plc and Zenith Bank Plc.

 

 

Also, the banking sub-sector, boosted by activities in the shares of Sterling Bank Plc and Ecobank Plc, followed with a turnover of 30.3 million shares in 535 deals. Further analysis of the day’s trading showed that in percentage terms, NEM Insurance Plc topped the day’s gainers’ table with 9.74 per cent to close at N2.14 per share while Livestock Feeds Nigeria Plc followed with 9.52 per cent to close at 46 kobo per share. PZ Cussons Plc added 9.32 per cent to close at N6.45 per share.

 

On the flip side, Airtel Africa Plc led the losers with a drop of 10 per cent to close at N283.50 per share while UACProperty Plc shed 9.55 per cent to close at N1.42 per share. NCR Plc trailed with 9.09 per cent to close at N4.50 per share.

 

 

Continue Reading

 

 

 

 

 

ABUJA MAN REVEALS (FREE) SECRET FRUITS THAT INCREASED MANHOOD AND LASTING POWER IN 7DAYS

 

… CLICK HERE TO GET IT!

 

 

 

Categories

Facebook

Trending

Take advantage of our impressive online traffic; advertise your brands and products on this site. For Advert Placement and Enquiries, Call: Mobile Phone:+234 805 0498 544. Online Editor: Tunde Sulaiman Mobile Phone: 0805 0498 544; Email: tunsul2@gmail.com. Copyright © 2018 NewTelegraph Newspaper.

%d bloggers like this: