₦airaland Forum

[size=14pt]Foreign investors will not return until CBN devalues naira – MD, CSL Stockbrokers[/size]


As one of the leading Institutional and corporate brokerage service providers in the country, how can you describe activities in 2015, relating to the capital market and outlook for 2016?

The second half of last year was faced with dwindling global oil price and the risk of currency devaluation. Both factors affected the capital markets negatively, especially when you consider that the major drivers of our capital markets are international investors. We have seen the capital market depreciating drastically with the All-Share Index depreciated by 17.4 per cent. It has negative implications with the value of shares traded on the Nigerian Stock Exchange (NSE) almost down by 30 per cent in 2015. Naturally, this has an effect on brokerage commissions. During the year, almost 70 per cent of our activities were from international investors coming to Nigeria. They are the most sensitive to currency devaluation and they have spoken with their feet which involves a sell-off. All that has proved challenging for the industry.

What have been the responses from your clients in 2016?

Our own clients at CSL stockbrokers are not ready to buy anything in Nigeria until the currency is devalued. If there is devaluation, we will see the foreign investors coming back to the capital market. Currently, they do not agree with the federal government macro economy policies. Foreign investors want to see a credible macro economy blueprints.

NSE are targeting retail investors with mobile apps portal. What has been the level of investors’ acceptance?

The acceptance of local investors’ is light. Mobile application and online portal are geared particularly towards retail investors and retail investors’ activities are even lighter. From a medium to long term perspective, we are strong advocates of mobile applications and online trading portals but in the short term, the activities on both sides are still low. We need to create more awareness of our offering and there are still a few tweaks we need to make with our own mobile and online solution. Once that is done, we will conduct a proper launching. At that point, we will create more awareness.

Are we expecting another this year?

From the International perspective, which is where we have buyers from, it is about the currency volatility. If Central Bank of Nigeria (CBN) does not devalue the Naira, foreign investors will continue to exit because as it is now, it is not sustainable. Reserve is fallen to $28 billion, some argue it lower, and I think the import bill is about $3 to $4 billion per month. It means we have 7 months import in our reserve, however if the figure is nearer $20 billion, we start to hit critical stage which I believe is 3 month cover. The only way we can reduce demand for dollar is by devaluing it. If you want to sustain your reserve, it means CBN has to devalue.

In what way do you expect the 2016 budget to have impact on the capital market?

The 2016 budget is all about full implementation in order for it to have a positive impact on the capital market and economy at large, but the federal government has to fund it. There is a funding gap and they need international investors to support. If the international investors don’t support it, it will be a difficult task for the government. The budget is very sound and logical but the big issue is funding.

CSL Stockbrokers over the year has joined the big league in volumes traded on the equities market, what is the drive behind this?

A number of years ago, we decided to go after International investors. It has been very successful because what we offer to a lot of these investors is the best of both worlds. On the one hand, we have a local presence but on the other hand through our international offices, we offer them International best practice when they come to us. International investors are able to get a local perspective as to what is going on in the capital markets. It is something our international peers cannot offer whilst feeling safe in the fact that their counterparty is regulated by the same regulators as they have become accustomed to. Information is key and to invest in the Nigeria’s capital market, you cannot do this remotely, You must have a deep insight of what really is going on, which is where we come in for our international clients who are sitting overseas. We have been able to develop that relationship with international investors and that is what differentiates us from the pack.

What is CSL Stockbrokers doing to drive domestic investors since their exit in 2008?

We are institutional brokers. We look primarily at your pension funds, asset managers and family offices. Those are our primary focus. In terms of retail investors, particularly in periods of depressed activities and price volatility, we prioritize on the following two options for our clients. One is going through mutual funds, of First City Asset Management, which is a far safer option in times of price volatility. Furthermore, cost of execution is cheaper and there is an inherent ability to diversify one’s investment. Second is one line real time solution, which takes away the human interface and allows clients access to all the necessary data to make informed investment decisions. Our core business however is institutional investors. We are a corporate and institutional brokerage organization.

How can the capital market support the nation’s Gross Domestic Product?

For the capital market to support the country’s Gross Domestic Product (GDP), we need a conducive environment for sectors within the Nigeria to list on the NSE. Right now, the full spectrums of the sector are not represented in the capital market. We don’t have the telecommunications, full complement of upstream Oil & Gas, Power and industries companies listed on the Stock Exchange. When there is a better implementation in the economy, we will feel the required impact of the capital market on the nation’s GDP. As of now, few company would want to be listed due to decline in prices of listed companies. I think there is need for more conducive environment, cost of listing must be reduced and macro economy environment must be conducive for investment.

With the fall of shares in the capital market, are you not worried?

Everybody should be worried. We brokers should be more worried because we are going to feel the full effect of it. But I think all these things have a cycle; they will come and go. The reality is that Nigeria is too big an economy to be ignored by FPIs. It is during these quiet times you consolidate on your relationship with these clients whilst at the same time think outside the box to generate incremental revenues. It is important to note that so long as you can find the other side of the trade, and there is always the other side if the price is right, as a stockbroker whether a foreigner is buying or selling, we will still make our brokerage commission. They may leave now but they will be back. We must note that there are different types of investors. If I am an investor with five-year investment horizon or I have a strategic interest in a business, I will put my money in the capital market right now because valuations are compelling. There is still going to be more volatility over the next six to twelve months. As such if you are a short term investor, you cannot stand the volatility, the stock market will be a very tough proposition. Nigeria is very well endowed with the people and natural resource. The rational for not devaluing or limiting the supply of dollar is to limit the importation of inflation and force import substitution to allow industries develop locally. There are many sectors FG can develop. Unfortunately, we are not quite there yet to pursue full import substitution and there will be the inevitable demand for imports to cover the gap. Government is looking into it but we will see how far it will go.

http://nationalmirroronline.net/new/foreign-investors-will-not-return-until-cbn-devalues-naira-md-csl-stockbrokers/

Still on this same issue of Devaluation, just like my a friend would always ask, "since Nigeria started devaluing the Naira since the 80's, who devaluation don elp?" Upon devaluation, would the inward flow of forex by 'foreign investors' ever be enough to balance or counter the inflation that would arise? Has devaluation ever really worked for Nigeria since the 80's?

Pidggin:
Isn't it obvious? Where were the Fulani herdsmen in the 16 years of PDP rule? How come they suddenly resurrected with this administration and have suddenly over taken Boko Haram?
Were the herdsmen not grazing their cows during Jonathan's administration but we all know that they were not on killing rampage like this, suddenly they have transformed into a killing squad from May 29th 2015. My brother, we know what is happening

The fulani guys were on a killing spree under Jonathan but it was never reported. If you doubt, ask a typical middle-beltan and they would narrate their age long plight to you even as they were left to bear their cross alone. The only reason the killings is getting more attention now isnt necessarily because it has increased much, it is purely because of politics, the killings is now being used as a suitable political tool against Buhari; a good development though cos it would force the authorities to finally attend to the menace.

VictorRomanov:
Nice job from Fash! However this should be Lai's job. I just wonder what he is doing. If care is not taken, the same problem the last administration had would be the same problem this one would have - lack of effective and clear communication on the activities and efforrs of Govt to better the lives of the masses.

I totally concur; this government is failing woefully in the area of communication. Before now I thought they did very well in communication ONLY when they were in opposition, but a critical hind look at the situation back then shows that it was ordinary Nigerians who were concerned and fed up (not APC themselves) that did bulk of the communication. The government needs to employ some valuable hands and mouths to communicate whatever it is they are doing to the masses.

[size=15pt]We Are Missing You Dr Goodluck Ebele Jonathan – Nigerians Jonathanians Lament[/size]

Almajiri1:
Between you and The member representing Afikpo North/ South constituency in the Federal House of Representatives, Idu Igariwey-who is on ground with first hand Intel and you a known APC card carrying member who is closer to the truth?

Lagos-Calabar Rail Removed (N60bn)
Lagos-Ibadan Exp. Rd Reduced by N24bn
Second Niger Bridge Slashed by N3.9 bn
Odukpani-Itu-I/Ekpene Rd Reduced by N4.3bn
Benin-Sagamu Rd Reduced by N800m
Itakpe-Warri Signalling Cut by N302.9m
Calabar-Ikom-Obudu Rail N267m

Funds for the following projects serving the SW, SS and SE were cut-off from the budget and added to some vague projects in the north. Meanwhile one Rep from Afikpo supports and defends this move passionately and tells us it is because very little was budgeted for his state. Can someone please tell us how many new projects were eventually budgeted for in the new budget for Ebonyi state (or for anywhere else in the south)?.... Can someone please tell me these southern Reps are not playing politics of stupidity because they think life starts and ends with fighting Buhari?

@Almajiri1, kindly tell us the extra projects which were proposed for the SE or SS or SW in the new budget which makes you support this brazen madness?.... If you can't tell me the commensurate projects benefiting southern Nigeria which were included in the NASS' upgraded budget, then it is obvious Einstein truly knew what he was talking about.

Almajiri1:
Between you and The member representing Afikpo North/ South constituency in the Federal House of Representatives, Idu Igariwey-who is on ground with first hand Intel and you a known APC card carrying member who is closer to the truth?

Okay, let's wait until the full/further details are revealed.

Almajiri1:
What did you smoke? Can't you read and comprehend?

From what has been read and digested so far on the entire issue, it is clear that funds for major projects in the south were cut in favour of projects in the north. I have no idea what this Afikpo PDP man is saying. It is on record that the Lagos-Calabar rail was cancelled and billions meant for it were diverted to the north. Similarly, billions were cut from the 2nd Niger bridge project, the Lagos Ibadan road project, the Benin-Sagamu project and many other projects in southern Nigeria and the funds were all diverted to vague projects in the north. For the fact that we have humans from the south supporting this (probably cos they think life starts and end with opposing Buhari), then it is sad. It's obviously because of this sort of reasoning that Einstein made the statement below:

https://izquotes.com/quotes-pictures/quote-only-two-things-are-infinite-the-universe-and-human-stupidity-and-i-m-not-sure-about-the-former-albert-einstein-56412.jpg

A very strong case of 'Iberiberism' is what we have here.

Almajiri1:
So the 95% vs 5% was actually smuggled into the padded budget. Thank Allah for the eagle eyed legislators and the boldness they've shown in correcting such abnormality. Every attempt by the executive to pit the masses on collision course with the legislature is already DOA!

How was it corrected?... funds were cut out from the south and pushed to projects in the north and humans from the south actually support this because they think they have a duty to fight Buhari?

A very strong case of 'Iberiberism' here.

While the PDP senator from Ebonyi claims that only very little was appropriated to his state, he is ironically endorsing the motion to redirect the funds allocated to other southern states to the north. And someone means to tell me that some of these guys (including their supporters) haven't gone mad?....

chudionu58:
There we go! Now we know why zombies want the budget to be endorsed as submitted by Mr President..... No allocations to states like Ebonyi in the FMoW...Wicked...Yet Fashola allocated over 50 billion to the Lagos Ibadan expressway and their fraudulent foot soldiers have being crying more than the Syrians about how 24 billion was slashed!!! Jeeeez!
In Nigga Raws voice "One Nigeria...Hey!"

Cutting your nose to spite your face?.... or can someone please tell me that this Ebonyi man moved some more funds to projects in his states and not to the north?

Gossiplover:
China has something in mind,
They need our oil

They can have it all, as long as they give back some 'tangibles' in return.

Uwa mmebi!

Kingspin:
So other parts of this government can actually spend the way they want according to you because the president should be concern on what is happening within his office alone.Think again. He is the president of federal republic of Nigeria.

The president does not have powers to control how the NASS spends their money, there is something called separation of powers. If you are bothered about the acts of the legislators, speak to your representatives and senators.

I keep saying that the kind of imbeciles who support and handle PDP affairs is the very reason why GEJ lost the election woefully. Just imagine the sort of shameless excuse, or should I call it 'blame game' that these twerps are coming up with to justify their failures. And you begin to wonder why Nigeria still remains a third world country when humans with this kind of mentality have been ruling us for 16 years.

EastanPower:
Your point is duly understood.

Now why is that Buhari could order solders to shoot at IPOB protesters but has not ordered the same soldiers to go after and kill the demonic fulani herdsmen

Why has Buhari issued stern threats to pipeline vandals and rightly so but has issued non to the demonic fulani herdsmen

I don't know the answer to your questions, I think you should ask Buhari yourself.

EastanPower:
abagworo is actually sick upstairs, his blind hatred for GEJ will be his undoing.

Just imagine him trying to soley blame Jonathan for fulani herdsmen when we all know these guys were operating in the days of Obasanjo and Yar Adua but as usual, Jonathan must be blamed for everything.

No! the only reason why Buhari supporters keep returning to blame GEJ is because GEJ supporters keep making ignorant accusations against Buhari. 'Blame' is a game and if you play it, the opponent will return the favour. Across Nigeria today, a lot of ignorant folks have chosen to politicise the fulani crisis, a lot have ignorantly claimed the fulani's are killing people because Buhari is president. This is the sort of reasoning and comments that compel people to 'return fire' and blame GEJ, especially when we know the fulani marauders also operated freely during GEJ's reign without even being reported.

edoziebobbyyahoocom:
what nonsense?

This administration has blamed GEJ for every wrong turn it met, now this crisis of herdsmen has erupted under the buhari administration, you still deem it fit not to blame him for it. The same man who hasn't come out to re-assure nigerians of the faith they put in him.
Bros this is hypocrisy!

Hypocrisy you say?... Just for your information, the Fulani herdmen crisis did not erupt under Buhari as you and many of your ilk have chosen to ignorantly proclaim; Buhari inherited the problem, even GEJ inherited the problem. But while GEJ failed to solve it (it was hardly even reported because the media focussed on bokoharam), it would be a real mess for this administration if Buhari doesnt especially as Buhari being a Fulani man himself is in the best position to fix this.

tigerclaws:
won't you blame Gej if it where him running this government?
won't you blame him if it was him that kept silent over this issue for a long time.
mr man who's CinC and who swore to protect the lives and properties of his people?
so tell me why won't i blame him
fulani herdsmen are on rampage killing and sacking communities with live ammunitions and the president is doing nothing about it and you said we shouldn't blame him
please you guys should try and be objective even for once.
Just Sharap and get out

I didn't say he shouldn't be blamed for his criminal silence, it is his duty to speak up and condemn this. I didn't also say it wasn't his duty to provide security.

I only said it was idiotic for anyone to say the Fulani rampage is 'because Buhari is now the president.' Many morons have since turned this crisis into politics by claiming the Fulani's are killing people because their son is president. On this forum, several imbeciles have even celebrated the killings in Benue and used it as a political fun tool to taunt a particular Nairalander from Benue who is a Buhari fan. Such stupidity is what I denounced. I never argued that Buhari as a president shouldn't be blamed for the poor security of lives and properties.

omobaekiti:
eni gbe epo laja ko da bi eni ta gbe fun.

Huh?.. translate?

Abagworo:
GEJ deserves the blame just like he deserves that of militancy and Boko Haram. No country thrives by playing ostrich to the life of it's citizens and allowing controllable issues spiral out of control. Buhari will improve the herdsmen issue by either peace or by war. He will equally do same with militancy, pipeline vandals and IPOB. Total military might should be employed where necessary.

The problem precedes GEJ; OBJ couldn't deal with it, Yaradua couldn't and GEJ couldn't. Unfortunately it was never really reported all these years, the people of the middle-belt were left to suffer alone. The only reason this age long menace is getting media attention now is because of politics, it is a suitable political tool to fight Buhari since he's a Fulani man himself. It is a good thing though because with the attention their atrocities are getting now, it may not be long before something is done about them for good.

OBJ couldn't stop the fulani marauders, Yaradua and GEJ also couldn't stop them. If Buhari can't stop them, then one Nigeria is as good as finished.

I remember a Tiv friend of mine lamenting as far back as 2008 about how these devils kept attacking her village leaving death and destruction in their wake, but the saddest thing is, it was never reported in the news. It's a good thing that the atrocities of these morons is being properly publicised now; this is the beginning of their end.

tigerclaws:
they must find a way to blame Gej
ndi ala

Nobody is blaming GEJ, but the only reason those comments are made is because a lot of idiotts have been blaming Buhari for this. Hopefully you aren't one of those that also blame Buhari for the atrocities of the herdsmen.

On a serious note, I really don't get the biggy about this Dasuki case. If a customer walks into my shop and offers me money for my services, how am I to know where he got the money from?

crixtex:
So why did APC make it easy for him to become a senator then??

Because APC thought he was with them, but his slimy character surfaced as soon as he got to the senate.

BushidoBlue:
Na now u wan say him get link with PDP...

You must be a minion in the establishment


Where were you in 2013 October?

Heheheheheheheeeee

Saraki rejoined PDP since June/July 2015; that was the only way he could grab the senate presidency.

seunfly:
So where in this article did it states that Buhari want to cancel it?
You people will just die of hatred.

It's not even hatred any more, the hatred has now turned to a degenerative mental disorder.

crixtex:
So its only PDP that has thieves?? So Dino melaye is an alfa abi?? ..

And how is saraki pdp? ? wen I wanted to cast my vote I saw Saraki under APC... so wat are u saying

Saraki is senate president ONLY because of PDP.

Saraki's greatest supporters are PDP politicians and PDP followers who think they are punishing APC/Buhari.

90% of the multitude of senators who follow Saraki up and down to his CCT trials are PDP.

90% of those who passionately defend Saraki online even here on NL are core PDP sympathisers mainlyof the Jonathanian fold.

Saraki engineered a PDP man to be the deputy senate president.

Saraki may claim to be APC on paper, but we all know that if you remove PDP's overwhelming support for him, Saraki will INSTANTLY cease to be the Senate president.

So dont go around trying to claim you are ignorant of Saraki's link with PDP.

Kingspin:
Fighting corruption or cutting high costs within this govt is for execuitives only, i see.

What power does the president have over the expenses of the NASS?

Kingspin:
Before it has something to do with Mr president but not again.

What has the traditional sleaze of the NASS ever had to do with the president (executive)?

Paentera:
Did you really mean what you typed or you assumed?

Ever heard of separation of powers? PMB should instruct NASS to procure via BPE? Please update your knowledge about the three arms of government before exposing yourself like this in a public forum.

It looks really bad on you after blowing all the big big grammar pretending you have some clue about what is going on.

I taya oh!... Sometimes those PDPians need to be ignored but some of their comments are too painfully silly to be ignored. Sometimes I wonder whether these people are just inherently daft or whether ther just feign ignorance so as to have what to say.

maestroferddi:
I am afraid you are the one who is not using your head optimally.

This graft is taking place under Buhari's watch and therefore the buck should stop at his table.

It is completely his fault if he is so inept in not getting requisite government agencies like the Bureau of Public Procurement to supervise the purchase of the vehicle to forestall the blatant over-invoicing involved in this acquisition.

He has been busy blowing hot air and harassing the opposition while unconscionable corruption is going on under his nose.

Nnemuka:
sorry but i have to call u an eediot.
you likes kept associating GEJ with Deziani and you expect Nigerians to fault only saraki who is an APC senator?

And the ekpas I talked about have already rushed in to answer their name. Diezani was an employee of GEJ and it was in his power to call or cut her to order if she was found wanting. Obviously some of you are either too dull to understand or are feigning ignorance of the fact that under a democracy, the president has no powers per se over the legislature. For some of you guys to think an executive-executive case is comparable to an executive-legislative case, it speaks volumes of your level of intelligence. The only thing that can be done is for a petition to be written to relevant bodies like the EFCC to investigate a possible case of inflated prices in public procurement and I dont need to remind you that that petition is already on the pipeline.

By the way, this same Saraki is being prosecuted in the CCT for corruption and ironically, the very people who have turned themselves to Saraki slaves and abobakus, the very people who have been glorifying him and his actions, defending him passionately and escorting him everyday to his CCT trials, the very same people who have been blaming Buhari of politically witch hunting Saraki in the corruption trial are now the very ones opening their stinking mouths and using their withered fingers to type accusing statements against Buhari for having corruption under his watch.

Eluwilussit:
And how does everything(poo) that happened in the last administration concern Jonathan?

Kindly point out one case, just one case of GEJ being accused by anyone for the sleaze of the legislators?

What has a rogue senate buying 108 SUVs at exorbitant rates got to do with Buhari?

These imbecilic PDP trolls out with their usual cocktail of bullshit to deceive their empty headed followers.