VenturesNow

Investors’ wealth drops by $968 million on Nairobi Securities Exchange

Published

8 months ago

April 17, 2024

In the last two weeks, investors at the Nairobi Securities Exchange (NSE) have taken profits, which has reduced investor wealth by Ksh127.4 billion ($968.8 million) while bank stocks have been the most affected as their prices have dropped even though the shares are still eligible for final rewards.

By March 27, investors’ wealth on the NSE had reached a one-year high of Ksh1.84 trillion ($14 million). This was due to sharp gains in bank stocks as the lenders finished reporting for the full year that ended in December 2023.

The market capitalization, which is a measure of how wealthy investors are, has now dropped to Ksh1.712 trillion ($13 billion). Analysts say this is because people are taking profits, which has skewed the market by making more shares available than people want to buy. Because of this, share prices have gone down.

Most of the stocks in the banking sector hit multi-month highs at the end of March. Since March 27, their market value has dropped by Ksh44.42 billion, bringing it down to Ksh686.2 billion.

Safaricom’s market value has dropped by Ksh94.2 billion since the end of March, to Ksh679.1 billion. This is after rising in March before the book closed on a Ksh0.55 share interim payment. The telco’s share price dropped from Ksh19.30 on March 27 to Ksh16.95 on Tuesday.

“We have seen increased offers on the trading board, without the offsetting bids, hence the price trend. Broadly, it is about investors weighing the time value of their money, given that they can get higher yields on fixed-income securities,” said Ronnie Chokaa, an analyst at AIB-AXYS Africa.

Together, the rise in prices in March and the strengthening of the shilling against the dollar made it very appealing for foreign buyers to sell their shares. If the shilling is stronger when you leave the market than when you joined it, you get more dollars back on your shares because foreign investors get more dollars per shilling.

VenturesNow

Moroccan annual inflation rises to 0.8% in November

Published

5 days ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

VenturesNow

Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

6 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”