Connect with us

Business

Clearing agents seek EFCC, ICPC’s probe of CRFFN’s allocations

Published

on

1578995471crffn logo Clearing agents seek EFCC, ICPC’s probe of CRFFN’s allocations

Clearing agents under the aegis of Save Nigeria Freight Forwarders Importers and Exporters Coalition (SNFFIEC) have called on the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices Commission (ICPC) to probe the Council for the Regulation of Freight Forwarding in Nigeria’s (CRFFN) budgetary allocations to.

Speaking at a press conference in Lagos, Chairman of SNFFIEC, Patrick Osita, said that EFCC and ICPC to beam their searchlights and find out what the current management of CFFRN has done with the funds been allocated to them.

According to him, the Council performed below expectation and underachieved since the Federal Government inaugurated the current management board in November, 2018, adding that the current management board has not been training freight forwarders, which is part of their mandates since they came on board.

According to him, CRFFN has failed woefully on the major task and mandate given to them by the freight forwarders which is to create a conducive environment for them to practise. He said there is need for government to dissolve the current leadership of the CRFFN when their two-year tenure ends in October and appoint professionals to run the affairs of the Council. “It has been two years since the current CRFFN board and management were appointed, tell me what they have achieved this far? I am not talking about Practitioners Operating Fee (POF) because that is not their primary role and responsibility. I am talking of training and welfare of practitioners. How has CRFFN impacted on the lives of the clearing agent at the ports?

“Since the current CRFFN management was inaugurated in 2018, things have gone from bad to worse for clearing agents. The CRFFN has not organised a single training for clearing agents. Cargo clearance procedure has become more cumbersome and tedious, yet the CRFFN management pretends as if all is well with freight forwarders,” he added.

He said it is time for a change in the leadership of the CRFFN, saying that freight forwarders need professionals to take over the mantle of leadership of the Council.

Continue Reading
Comments

Business

CBN reduces benchmark lending rate to 11.5%

Published

on

images 59 2 CBN reduces benchmark lending rate to 11.5%

The Central Bank of Nigeria on Tuesday reduced the Monetary Policy Rate from 12. 5 per cent to 11 . 5 per cent after the two – day Monetary Policy Committee Meeting in Abuja.
The committee also voted to retain the Cash Reserve Ratio and Liquidity Ratio at 27 .5 per cent and 30 per cent respectively .
The Central Bank Governor , Godwin Emefiele, disclosed this while presenting the communiqué after the meeting.
Details later …

Continue Reading

Business

Bearish sentiment strengthen at NSE amid weakening economic indices

Published

on

images 30 3 Bearish sentiment strengthen at NSE amid weakening economic indices

Nigeria’s stock market again closed lower for the second consecutive week with the trading pattern and negative sentiments revealing selloffs in banking stocks, which pulled down the NSE market capitalisation down by N14 billion week-on-week (w-o-w).

The negative performance was down to profit taking in the shares of Zenith Bank, Stanbic, Ecobank Transnational Incorporated (ETI) and FBN Holdings. This led to the All Share Index (ASI) falling by 0.08 per cent to 25,572.57 points.

Consequently, the Month-to-Date (MtD) gain declined to 1.0 per cent, while the Year-to-Date (YtD) loss increased to -4.7 per cent.

Performance across sectors was mixed although positively skewed as three of six indices trended northward. The Industrial Goods index led gainers, up 0.5 per cent w/w on the back of bargain hunting in CAP (+8.6 per cent). Trailing, the Consumer Goods and Insurance indices rose 0.1 per cent and 0.01 per cent w/w respectively due to price appreciation in Nigeria Breweries (+2.3 per cent) and Wapic (+12.1 per cent).

Conversely, the Oil & Gas index led losers, down 1.0 per cent w-o-w following sell-offs in Oando (-4.2 per cent)while price depreciation in FCMB (-6.4 per cent) dragged performance in the Banking index by 0.7 per cent w-o-w. Finally, the AFR-ICT index closed flat. Reacting to the market performance, analysts who spoke to Daily Sun, attributed the downturn to the weak macroeconomic state of the nation and added that profit taking is likely to persist as the month of September progresses in the midst of profit booking, mismatch of economic policies and negative macroeconomic indices.

This is coming on the back of persistent pressure on consumer prices in August 2020 as headline inflation rose to 13.2 per cent year-on-year (y-o-y) from 12.8 per cent in July, according to the Consumer Price Index (CPI) report published by the National Bureau of Statistics (NBS).

Investigations by Daily Sun show that this is the 12th consecutive rise in inflation and the highest level since March 2018 while the sharp increase in headline inflation was driven by a faster m/m inflation, which was up 10 basis points to 1.3 per cent, the highest since June 2017.

Chief Operating Officer, Ambrose Omordion, explained that the August inflation data came worse than expected at 13.22 per cent, thereby deepening the negative returns of many investment windows. Omordion noted that mixed (positive and negative) sentiments would continue to dominate the market as the month of September progresses in the midst of profit booking, mismatch of economic policies and negative macroeconomic indices.

According to him, this is against the backdrop of the fact that the capital wave in the financial market may persist in the midst of relatively low-interest rates in the money market, high inflation, negative Q2 GDP of 6.1 per cent and unstable economic outlook for the rest of 2020 as government and its economic managers are going front and back with mismatch polices and implementation.

“Also, investors and traders are positioning amidst the changing sentiments in the hope of improved liquidity and positive economic indices which may reverse the current trend. We see investors focusing on portfolio adjustment and rebalancing by targeting companies with strong potentials to grow their Q3 earnings and dividend on the strength of their earnings capacity as the year last quarter is at the corner.

Again, the current undervalue state of the market offers investors opportunities to position for the short, medium and long-term, which is why investors should target fundamentally sound, and dividend-paying stocks for possible capital appreciation for the rest of the year”, He said.

For their part, Cordros Capital, said, “In the absence of a positive catalyst, and given the still uninspiring macro story, we guide investors to trade cautiously in the short term. However, we expect the market might benefit over the longer term on compelling valuations and as investors seek alpha-yielding opportunities in the face of negative real returns in the fixed income market”.

Meanwhile, a total turnover of 1.139 billion shares worth N12.692 billion in 17,109 deals were traded by investors, in contrast to a total of 1.226 billion shares valued at N10.842 billion that exchanged hands last week in 19,529 deals.

The Financial Services industry (measured by volume) led the activity chart with 870.300 million shares valued at N7.863 billion traded in 9,427 deals; thus contributing 76.43 and 61.95 per cent to the total equity turnover volume and value respectively.

The Industrial Goods industry followed with 62.689 million shares worth N1.162 billion in 1,557 deals while the ICT industry recorded a turnover of 50.859 million shares worth N2.552 billion in 619 deals. Trading in the top three equities namely FBN Holdings Plc, Guaranty Trust Bank Plc and Access Bank Plc. (measured by volume) accounted for 353.048 million shares worth N4.018 billion in 3,095 deals, contributing 31.00 and 31.66 per cent to the total equity turnover volume and value respectively.

Continue Reading

Business

CIS, others, to float Securities Institute

Published

on

images 31 3 CIS, others, to float Securities Institute

The Chartered Institute of Stockbrokers (CIS) in collaboration with three other professional bodies has signed a Memorandum of Understanding (MoU) to establish Chartered Institute of Securities and Investment Management (CISIM) to bring securities dealers and investment managers in Nigeria under one umbrella.

The CISIM’s Bill, which is currently with the National Assembly, will replace the Chartered Institute of Stockbrokers Act 105 of 1992 when passed into law. At the last count, apart from the CIS, the three other professional bodies that signed the historic MoU are the Association of Investment Advisers and Portfolio Managers (AIPM) The Fund Managers Association of Nigeria (FMAN), Association of Issuing Houses of Nigeria (AIHN) with ASHON’s Chairman, Chief Onyenwechukwu Ezeagu, as an observer.

The Chartered Institute of Stockbrokers Act 105 of 1992 , which established the CIS provides that individual operators that deal in securities, including Stocks,Treasury Bills, Bonds, Commodities etc, shall be trained and certified by the Institute. At the moment, certain gaps in the Act are exploited by some individuals to deal in securities without any form of certification and requisite training.

Therefore, the CISIM Bill when passed into law, will bring capital market professionals under a common objective without encroaching on one another’s business, make regulation easier, and enhance global competitiveness.

“We share common goals and there is a need for standardization to enhance our advocacy. The Association of Investment Advisers and Portfolio Managers (AIPM) subscribes to the ideals of the proposed Chartered Institute of Securities and Investment Management (CISIM) in Nigeria.

“ Our collaboration will bring about rapid development of the entire financial system. Nigeria is in dire need of funds for infrastructure development. Substantial part of the fund can be mobilised from the capital market. We implore the National Assembly to hasten the passage of the Bill in the overall interest of the economy “, said the President, AIPM, Prince Abimbola Olashore.

Commenting on the MoU, CIS President, Olatunde Amolegbe, said the proposed bill was nothing unusual, and commended the professional bodies that signed the MOU for sincerity and unity of purpose.

Amolegbe explained that the Securities and Exchange Commission (SEC) and The Nigerian Stock Exchange (NSE), the apex regulator and Self-Regulatory Organization (SRO) respectively, regulate stockbrokers but the ISA provides for individual operators that deal in securities to be certified by the Institute while their organisations are regulated by SEC and the NSE .

Continue Reading

Trending