NIGERIA'S CAPITAL IMPORTATION DOWN 41.3% Q1 2017

There was a significant drop in the inflow of capital into Nigeria in the first quarter of this year compared to the closing 4th quarter of 2016.

According to the National Bureau of Statistics, in its 1st quarter capital importation released today, May 24 2017, capital importation (CI) into Nigeria was $908.27m, down 41.3% on 2016 4 quarter but up 27.5% on 1st quarter of 2016.

The report shows confirms again that foreign investors now prefer to give loans as against direct investment. Other investment sub heading accounted for $383.28m or 42.2% of the total captal imported. This represented a drop from its 2016 1st quarter share of 58.3% and an increase on its share in the 1st quarter of 2016.

The significant development was that Other investment has always been dominated by loans as against foreign direct capital. In the 1st quarter, it accounted for 96.35% of Other capital imported.

However, portfolio investment rose 10.34% to $313.61m in the 1st quarter to make up 34.53% of the total imported capital. This also represented 15.71% increase on 2016 1st quarter level. But increase was not due to equity investment, which is the more long term and comfortable inflow, but significant increase in money market inflows most likely as response to the Central Bank's  deliberate attempt to stimulate this.

Equity inflow declined by 42.19% to $101.99m from $176.44m in 2016 4th quarter while money market instrument inflow leaped the most of all inflows by 156.9% to $211.61m from $82.37m in the previous quarter.

Foreign direct investment (FDI) dropped by 38.66% to $211.38m when compared to 2016 4th quarter but was up 21.1% on 2016 1st quarter.

Importation in the form of Shares dropped by 36.99% to $143.81m and this was also 40.95% down on a year ago although, given the sharp drop in total CI, its share of imported capital increased to 15.8% from 14.74% in the previous quarter.

In terms of business sectors into which CI flowed within the quarter, says the report, Servicing and Telecommunications topped the bill with 16.08% and 16.05% respectively. They were followed by Banking with 13.87% then Oil and gas 11.13%.

The United Kingdom remained the highest source of CI quarterly since 2010 except the two quarters of 2015 second half when uncertainty reigned supreme and many investors became very cautious about Nigeria.

In the quarter under reeview UK accounted for $302.47m or 33.30% of the total followed by the United States of America with $215.66m or 23.74%; Singapore with 8.09% and Mauritius with 7.86%.

In terms of recipient banks, Standard Chartered topped the chart with 25.49% trailed by Access Bank with 16.62%, Ecobank with 15% and Zenith bank about 10%.

Comments

Post a Comment

Popular posts from this blog

2018: TWO BLOWS TO UNITED CAPITAL PLC.

When a child who in a previous examination scored 80%, comes home with a new report in which he now scores 67.2%, the parents have a right to sit him down and ask how come. So it must be between Nigeria's United Capital Plc and its discerning shareholders since the release of the company's 2018 audited figures. In 2018, all said and done, says the annual report, United Capital ended with 67.2 % profit margin compared to 80.2% in 2017. How come? What comes across from the figures was that the company received 2 blows to the jugular in 2018: Sharp drops in Investment income and fair value gain. Investment income dropped by 10.8% to N4422.8m from N4965.2m while fair value on financial assets plunged by 79.7% to N6.173m from 2017's N30.387m. In view of both drops, the group's gross earnings grew by only 33.9% to N9259.4m despite strong growths in net trading income, and net operating income leap to N757.5m from N143.5m  Other income streams ended with single digit increase....
Read more

KENYA AUCTIONS Ksh 13.84bn Treasury Bonds.

The Central Bank of Kenya (CBK) will from Tuesday December 18 to 27th 2018_ auction Ksh 13.84bn worth of fixed income Treasury Bonds with issue date December 17, 2018. According to official statement from the Director of Financial Markets Irene Njiru on Monday December 17, auction will continue throughout the stated period or close once the target money to be raised is reached, whichever comes first. Bid value will be paid for at most by 2pm December 31, 2018 while auction results will be made public on December 28, 2018 after the scheduled closing date. The bonds are being issued at 12.502% fixed interest at an adjusted average price of Ksh 100.468 for Ksh 100 bond. However, price payable after auction results publication will be average of successful bid prices based and allotment will be on first come first served basis. Meanwhile, the monetary operations and debt management department has released the interest payment schedule for 13 Treasury Bonds due January and February 2019. Th...
Read more

NAIROBI SE's HIGH PRICED EQUITIES.

In the wake of Nigeria's high priced quoted companies posted in this blog a while ago, Henates took a look to at Nairobi Securities Exchange June 23 official list to identify its high priced equities and the outcome was interesting too. Of the 66 companies quoted on the market by June 23, 15 or 22.7% were valued averagely at above 30 times nominal value. A word of caution though: There are two clear differences between the Nigerian stock market list and that of Nairobi: In the Nigerian one most listed companies have par or nominal value of N0.50 as is there is an implied agreement on this. On the other hand, at Nairobi most of the equities do not share common par value, they differ greatly. Then another thing, Nigerian equities are not valued below par, Nairobi ones can and many are so valued. Of the top 15 high priced equities at the Nairobi market, Safaricom topped with because by June 23, at 23.25 Ksh average price, it was valued 465 times its nominal value of just 0.0...
Read more