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As 2019 Elections Draw Near, Stock Exchange Plunges By 19.7

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6 years ago

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The year 2018 was not so rosy for the Nigerian Stock Exchange as its crucial indicators depreciated by 19.77 per cent due to uncertainties surrounding the forthcoming general elections.

The premier newspaper reports that the exchange which was named the third best performing stock exchange in the world in 2017 with over 43 per cent return-on-investment performed dismally in 2018.

Experts said the market, which started the first quarter on a positive note, nosedived due to the withdrawal of funds by foreign portfolio investors who were worried over the forthcoming elections.

A breakdown of the foreign investment outflow from the exchange between January and September 2018 showed that a total of N513.49bn left the country during the period.

This amounted to 63 per cent increase in total outflow compared with N315.04bn withdrawn in the same period in 2017.

Although both total foreign investment inflow and outflow increased month-on-month in September relative to the previous month, outflow grew at a higher speed, rising 27.6 per cent to N43.78bn from N34.31bn in August.

Foreign investment inflow, on the other hand, rose by 10.6 per cent to N40.54bn from N36.7bn in the previous month.

Investment experts, who attributed the sell-offs and the attendant foreign investment outflows to political risks, said the trend would be sustained throughout the election period.

Specifically, the All-Share Index ,which opened trading in 2018 at 38, 243.19, shed 6, 812.69 points or 17.81 per cent to close at 31,430.50, eroding over 43 per cent growth posted in 2017.

Similarly, the market capitalisation, which opened at N13.609trn, dipped by N1.89trn to close on December 31, 2018 at N11.720trn.

Commenting on the performance of the market, Head of Banking and Finance Department, Nasarawa State University Keffi, Prof. Uche Uwaleke, described 2018 as a very disappointing year for the equities’ market.

“With positive returns of over 40 per cent in 2017, Nigeria was ranked the third best performing stock market in the world after Argentina and Turkey.

“On the other hand, between January and December 2018, the market has plunged into a bear territory having lost over 20 per cent from its peak in January when it posted 16 per cent return.

“The dismal performance of the market has been in spite of improved corporate results announced by listed companies as well as stronger macroeconomic performance,” Uwaleke said.

He noted that the economy expanded faster in 2018, in terms of GDP by 1.95 per cent, 1.5 per cent and 1.8 per cent in the first,second and third quarters respectively, when compared with 0.8 per cent averaged in 2017.

“Again, the inflation rate is lower and the exchange rate has been stable on the back of stronger external reserves helped by higher oil prices and output relative to 2017.

“In the light of these, two major factors explain the weak performance of the market in 2018.

“The first is exogenous, the increasing yield environment in the US following the normalisation of interest rate by the US Federal Reserve. The second is the political tension ahead of next year’s general elections,” Uwaleke stated.

He highlighted the factors that would shape the performance of the stock market in 2019 to include the monetary policy stance of the US Federal Reserve, the extent to which the US-China trade tension and Brexit impacted global economic growth.

Others are: the ability of OPEC and its allies to keep oil prices high, political tension/outcome of the country’s elections, the fate of the 2019 budget and the direction of monetary policy in Nigeria.

On the way forward, he urged the Federal Government to defuse political tension and ensure free, fair and credible elections to boost investors’ confidence.

Uwaleke added that effective budget implementation would help create the right environment for both domestic and foreign investors.

A chartered stockbroker and Chief Executive Officer, Sofunix Investment and Communications, Mr. Sola Oni, attributed the lacklustre performance of the capital market to illiquidity.

Oni said massive share dumping by nervous portfolio investors and their Nigerian counterparts who were apprehensive over the 2019 general election led to the trend.

He said the development was reinforced by unguarded utterances of the political class.

Oni said the factors that would shape the market in 2019 generally revolved around the weak global economy of which the exchange could not be insulated.

He explained that the outcome of the next elections and the ability to tackle the ongoing economic challenges, especially investment in infrastructure, management of fiscal and monetary policies, would shape stock market activities this year.

Chief Operating Officer, InvestData Ltd., Mr. Ambrose Omordion, described 2018 as a volatile and bearish year due to the interest rate hike, mixed corporate earnings and political uncertainties.

Omordion said peaceful conduct of the general elections, good economic reforms and diversification would drive economic activities in 2019.

 

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Zenith Bank Says It Now Has best IT infrastructure After Successful Upgrade, Commends Customers

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1 day ago

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November 6, 2024

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Zenith Bank Says It Now Has best IT infrastructure After Successful Upgrade, Commends Customers

AJAGBE ADEYEMI TESLIM

SPONSORED BY: H&H

Zenith Bank Plc has announced that it now boasts the best technology infrastructure in the banking industry, positioning itself to provide an exceptional customer experience and superior service delivery moving forward.

This upgrade follows a recent comprehensive technology enhancement.

The bank expressed its heartfelt gratitude to customers for their support and patience throughout the upgrade process, while also extending apologies for any inconveniences experienced during this time.

This announcement was made in a social media post on Wednesday, signed by Dame Dr. Adaora Umeoji, OON, the Group Managing Director/CEO. 

In her message, the GMD/CEO emphasized the bank’s commitment to delivering an unparalleled service experience, stating, “We undertook this upgrade to ensure we can offer our customers the best possible service.”

Umeoji pledged that Zenith Bank will continue to innovate, ensuring that customer needs are met swiftly, safely, and conveniently.

The post read in part: “On behalf of the Board, Management, and Staff of Zenith Bank PLC, I would like to thank you for your patience and support during our IT infrastructure migration to a new and more robust operating system. 

“We are truly grateful for the trust and confidence you have placed in us. The primary reason for undertaking this extensive endeavor was to better position Zenith Bank PLC for improved service delivery to all our valued customers and to create memorable banking experiences at all our touchpoints.

“While I regret the inconveniences and challenges you faced during and immediately after our migration, I am pleased to inform you that Zenith Bank PLC now has the best technology infrastructure in the industry. We are committed to ensuring you experience superior service delivery going forward.

“Rest assured, you remain our top priority, and Zenith Bank will continue to innovate and offer value-added products and services to meet all your banking needs quickly, safely, and conveniently.”

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Polaris Bank Clinches “Best Mobile App” Award at Digital Jurist Awards 2024

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2 days ago

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November 5, 2024

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Polaris Bank Clinches “Best Mobile App” Award at Digital Jurist Awards 2024

AJAGBE ADEYEMI TESLIM

SPONSORED BY: H&H

Polaris Bank’s commitment to digital innovation and excellence has once again been recognized, as the Bank was awarded the prestigious “Best Mobile App” award for its renowned digital banking platform, VULTe, at the Digital Jurist Awards held October 31 at Eko Hotel in Victoria Island, Lagos.

This honor comes less than a week after Polaris Bank was named Nigeria’s Digital Bank of the Year for the fourth consecutive year, further solidifying its status as a leader in Nigeria’s digital banking landscape.

At the event, attended by representatives from all nominated companies, Polaris Bank’s VULTe app stood out among its peers, winning the hearts of users and the recognition of industry experts.

The Digital Jurist Awards Committee had nominated Polaris Bank in three categories: Best Website, Best Web Portal, and Best Mobile App.

The Bank’s innovative approach and customer-centric digital solutions have made it a formidable contender in each category, with VULTe’s win affirming the Bank’s continued drive to redefine digital banking in Nigeria.

Commenting on the the award, Polaris Bank’s Managing Director/CEO, Kayode Lawal expressed gratitude for the recognition and reiterated the Bank’s commitment to providing seamless, reliable, and secure digital solutions.

“This award continuously shows our dedication to delivering the best digital experiences to our customers. We will continue to push the boundaries of innovation to ensure that our platforms remain intuitive, accessible, and impactful,” he said.

Polaris Bank’s VULTe app has gained widespread acclaim for its user-friendly design, robust security features, and diverse functionalities, enabling customers to manage their banking needs from the comfort of their devices.

Winning the “Best Mobile App” award is yet another milestone in the Bank’s digital journey, reinforcing its position as a digital pioneer in Nigeria’s banking sector.

The Bank extends its gratitude to the Digital Jurist Awards Committee and its loyal customers for their continued trust and support.

Polaris Bank is committed to advancing digital banking in Nigeria, creating convenient, modern, and secure solutions that cater to the evolving needs of its customers.

Polaris Bank was adjudged Nigeria’s Digital Bank of the Year in 2024,2023, 2022 and 2021 and MSME Bank of the Year 2022, 2023 and 2024 in Business Day’s Banks and Other Financial Institutions (BAFI) Awards.

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Access Bank Wins Best Digital, Best Website at 2024 Digital Jurist Awards

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2 days ago

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November 5, 2024

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Access Bank Wins Best Digital, Best Website at 2024 Digital Jurist Awards

AJAGBE ADEYEMI TESLIM

SPONSORED BY: H&H

Access Bank PLC has been named the 2024 Best Digital Award Winner in the Commercial Banks Category at the Digital Jurist Awards, organized by Phillips Consulting (pcl.).

L-R: Adebowale Shonekan, Head, Network Communications (Group & Subsidiaries), Access Bank Plc; Chukwudi Amadi, Team Lead, Digital Communications, Access Holdings Plc; Ezinne Nwene, Team Member, Digital Communications, Access Holdings Plc, receiving the Best Digital Commercial Bank award from Abbas Babagana, Chief Technical Officer, Federal Ministry of Communications & Digital Economy at the Digital Jurist Awards held in Lagos… recently.

In addition to this top honour, the Bank also secured the Best Website Award, achieving an impressive score of 201 points for its engaging and user-friendly digital experience. Access Bank’s cumulative score of 380 points reflects its excellence across digital touchpoints, including its website, web portal, mobile app, and social media.Commenting on the recognition, Amaechi Okobi, Chief Communications Officer of Access Holdings PLC, said, “We are honoured to receive the Best Digital and Best Website Awards at this year’s Digital Jurist Awards.

At Access, our focus on digital innovation is driven by our commitment to deliver seamless, secure, and customer-centric solutions across all touchpoints.

This recognition validates our ongoing efforts to enhance our digital platforms, making financial services more accessible and efficient for our customers.

We thank Phillips Consulting for recognising our efforts and will continue to raise the bar in digital excellence.”Phillips Consulting has long served as a development partner to Nigerian financial institutions and other organisations with an online presence.

Leveraging its proprietary Digital Jurist platform, the firm has conducted assessments of digital touchpoints in various sectors, from financial services and insurance to telecommunications and government agencies, over the past 17 years.

Originally established as Web Jurist®, the platform was reimagined as Digital Jurist to assess new and diversified digital channels in the evolving digital economy. Digital Jurist’s evaluation framework examines a range of factors, including user experience, accessibility, performance, functionality, security, customer service, support, marketing, and content engagement across digital platforms.

These awards reinforce Access Bank’s leadership in digital banking, adding to recent accolades including 2024 Best Digital Bank and Best Mobile Banking App by World Finance, Best Mobile Banking App and Best Digital Bank by The Digital Banker Awards, and Best Digital Banking Initiative at the Global Retail Banking Innovation Awards 2024.

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