JPMorgan: Investors lose N311bn in 24 hours

Investors in the equities segment of the Nigerian Stock Exchange recorded heavy losses as stocks plunged on Wednesday, a day after JP Morgan said it would remove Nigeria from its government bond index.

A sell-off in the stock market, triggered by the move, saw the market capitalisation of the listed equities fall by N311bn or 2.98 per cent from N10.439tn to N10.128tn, while the NSE All-Share Index declined by 904.78 basis points (2.98 per cent) to 29,454.09 basis points.

Wednesday’s losses virtually erased the N331bn gain made by equities in the last three trading sessions.

The decision by United States-based lender, JP Morgan, to phase Nigeria out of its Government Bond Index by the end of September, comes amid uncertainty about Nigeria’s economy, which has held investors – especially foreign portfolio investors – back, leaving the capital market struggling.

Financial analysts believe the decision, which the lender based on lack of liquidity and transparency in the nation’s foreign exchange market, would lead to significant outflows from the capital market and that it is responsible for Wednesday’s sell-off in the equities market.

The Head, Equity Research, FBN Capital Limited, Mr. Olubunmi Asaolu, explained in a telephone interview that while the index in question was a fixed income (bond) index, the move by JP Morgan sent warning signals to investors.

He said that while investors tracking the index were unlikely to move their funds until the country was actually removed from the index, investors in equities were unlikely to wait.

The implication in the equities market, he said, “is that if JP Morgan feels that the Nigeria forex market is not liquid enough for them, that is a bit worrying to other people who have to change their dollars to naira first to buy things; the most obvious one is the equities market.”

He said although many might have seen the move coming, the announcement made it official and the risk more real to investors.

He added, “This means that if it is a little bit difficult to get my dollars from the CBN, and the CBN will tell you it is not that difficult, this decision makes a little more difficult potentially.”

As a result, he said people were not going to wait to find out if it was potentially true or not, stressing, “And that is why we are seeing this move on the equities market.”

Asaolu, however, said it was not likely that things would get to the point where foreign investors would be struggling to get their money out of Nigeria.

“We’ve not had any major problems with people selling their equities and struggling to get their money out; it has not really happened. But the investors do not wait to find out if that will happen,” he said.

Analysts at Renaissance Capital said, “On the flipside, we expect to see mark-to-market losses coming through for banks, particularly those with proportionately higher investments in bonds given the upward bias in yields.”

However, the CBN had said it rejected the decision by JP Morgan to delist Nigeria from the bond market.

In a joint statement by the CBN, Debt Management Office and Ministry of Finance, it said, “While we respect the right of the JP Morgan to make this decision, we would like to strongly disagree with the premise and conclusions upon which the decision rests.”

“Despite these positive outcomes, the JP Morgan would prefer that we remove this rule; even though it is obvious that doing so would lead to an indeterminate depreciation of the naira. With dwindling oil prices, we believe that an order-based two-way market best serves Nigeria’s interest at the moment.”

Meanwhile about N1.5tn ($8bn) in foreign portfolio investments is expected to leave Nigeria by the end of October this year when the American lender, JP Morgan, completes the process of delisting the Federal Government Bonds from its Global Bond Index-Emerging Markets, CBN’s documents have shown.

Nigeria became the second African country after South Africa to be listed on the JP Morgan’s emerging markets government bond index in October 2012.

This came after the CBN removed the restriction for foreign investors to hold government bonds for a minimum of one year before they could exit, among other policies that favour foreign investors.

The index (GBI-EM) has around $210bn in assets under management benchmarked to it. The benchmarking supports investor demand for the bonds on the index.

The index added Nigeria’s 2014, 2019, 2022 and 2024 bonds, giving the economy a weight of 1.8 per cent on the index.

JP Morgan, however, placed Nigeria on what it called ‘Negative Index Watch’ in January this year and warned that currency controls introduced by the CBN were making bond market transactions too complex to meet its rules.

http://www.punchng.com/business/business-economy/jpmorgan-investors-lose-n311bn-in-24-hours/

Buhari's body odour:performing wonders since 2015.I just hope this secondary school drop out does not finish off what is left of our economy

We have been losing money since Buhari came on board.

Weldone Mr President. In fact, clap for yourself.

In the fullness of time, you will realise how your slow movement is adversely affecting our economy.

chukwudi44:
Buhari's body odour:performing wonders since 2015.I just hope this secondary school drop out does not finish off what is left of our economy

You see your life,.....

we don hear parrot....

Hmmm

$8billion worth of investment expected to leave by the end of october!!!!!


Chissooooooooos!!!!


This is what you get when an illiterate runs your economy

I hope many workers have saved enough money, because many corporate jobs will be the first to go..................after some daft sai chanter will say the Jp morgan de-listing has no effect on the common man

BraniacX:
$8billion worth of investment expected to leave by the end of october!!!!!


Chissooooooooos!!!!


This is what you get when an illiterate runs your economy

I hope many workers have saved enough money, because many corporate jobs will be the first to go..................after some daft sai chanter will say the Jp morgan de-listing has no effect on the common man

Bros Na God hand we de.The illiterate is already navigating the country, let's just hope things dosent get too bad!!!

Trust me. .... Buhari doesn't give a hoot cos he doesn't understand. Very terrible!!!

Even his illiterate supporters continue to gloat over obvious economic disaster. Even the learned ones come out to defend the indefensible using economic jargons that makes nonsense. And it is nonsense because the current government had zero plans to manage outcomes like these.

Who exactly in this government has the responsibility of thinking for swift economic reactions to these outcomes

Which serious country ever leaves a vacuum in its economy? ... even if other appointments have to wait, why should the economy wait for 3 months without a coordinating minister or finance minister?

Who is going to compensate for these losses across all sectors? who is going to employ the hundreds of thousands that have lost their jobs in the last three months? Who is going to successfully woo the investors back under a Buhari presidency?

A government that took Oshiomole, Wife (Lara) and Okorocha to key economic meetings with the US government has absolutely no clue.

One of the most frustrating feelings ever is sharing the same country with illiterate air heads who contribute most by their combined decisions to the outcomes you have to live with.

In saner climes, Buhari should never have been on the ballot

We should never have allowed the numb skulls who were ready to accept NEPA bills in the place of required educational certificates for a presidential candidate with negative profiles.

see how you are calling that amount like it 5 naira

view my signature

Buhari should know it's no time to be "slow nd steady" but time to swing into action

chukwudi44:

Bros Na God hand we de.The illiterate is already navigating the country, let's just hope things dosent get too bad!!!

Doesn't get too bad?

Are you for real!!!!


Jobs are being lost in banking and finance, construction among others, every economic indices is taking a nosedive ever since the mai gworro of daura took over and you say "doesn't get too bad?" Okay!


Buhari!!


Buharri!!!!!

BUHARI!!!!!!!!

I know you Can hear me through your minions of paid agents and spies here on nairaland, bring back our NOI and redeem our economy from your body stench/odour

Some of these comments are so sofunny.Some can't differentiate their rights from their lefts.What a shame.

Am tired of this Morgan of a thing
If Nigeria want to explode
Biko, let it be fast
Can't wait.

Beautiful bride Biafra is here to replace Nigeria in world stage

I repeat, Buhari is a curse.

An illiterate of the highest order. He doesn't even know what's going on.

chukwudi44:
Buhari's body odour:performing wonders since 2015.I just hope this secondary school drop out does not finish off what is left of our economy

I'm inclined to think your life is so damn miserable.

4.00am when others are asleep, you are up like a mole rat looking for whom to blame for your misery.

At this rate, your state of well-being could only go south I guarantee you.

Your mates are busy taking up arms to fight for the actualisation of a Sovereign State of Biafra and you are here crawling on your belly like a cockroach, hoping to be spoonfed by Buhari. I bet had your mom stuck precisely to her prescription, the world would have been spared gargoyles like you.

When you go out today, get a rickshaw or something, make yourself useful to your father- it is regrettable enough even raising you- don't make him bleed any further.

omenka:
I'm inclined to think your life is so damn miserable.

4.00am when others are asleep, you are up like a mole rat looking for whom to blame for your misery.

At this rate, your state of well-being could only go south I guarantee you.

Your mates are busy taking up arms to fight for the actualisation of a Sovereign State of Biafra and you are here crawling on your belly like a cockroach, hoping to be spoonfed by Buhari. I bet had your mom stuck precisely to her prescription, the world would have been spared gargoyles like you.

When you go out today, get a rickshaw or something, make yourself useful to your father- it is regrettable enough even raising you- don't make him bleed any further.

Oh boy you get bad mouth oh.

omenka:
I'm inclined to think your life is so damn miserable.

4.00am when others are asleep, you are up like a mole rat looking for whom to blame for your misery.

At this rate, your state of well-being could only go south I guarantee you.

Your mates are busy taking up arms to fight for the actualisation of a Sovereign State of Biafra and you are here crawling on your belly like a cockroach, hoping to be spoonfed by Buhari. I bet had your mom stuck precisely to her prescription, the world would have been spared gargoyles like you.

When you go out today, get a rickshaw or something, make yourself useful to your father- it is regrettable enough even raising you- don't make him bleed any further.

Oloribruku ode !! I didn't write the goddam report!! It was culled from your APshit newspapers PUNCH!!
Unlike you zombies, I am gainfully employed and not waiting for Buhari's N5000 stipend

BraniacX:



Doesn't get too bad?

Are you for real!!!!


Jobs are being lost in banking and finance, construction among others, every economic indices is taking a nosedive ever since the mai gworro of daura took over and you say "doesn't get too bad?" Okay!


Buhari!!


Buharri!!!!!

BUHARI!!!!!!!!

I know you Can hear me through your minions of paid agents and spies here on nairaland, bring back our NOI and redeem our economy from your body stench/odour

Bros Wetin pesin go do naa!! Let's just hope we don't get to the level of Greece.I seriously hope he dosent appoint another illiterate malam with only diploma in sharia as the next finance minister because he/she has been with him since 2003.

chukwudi44:

Oloribruku ode !! I didn't write the goddam report!! It was culled from your APshit newspapers PUNCH!!
Unlike you zombies, I am gainfully employed and not waiting for Buhari's N5000 stipend

Gainfully employed as what- a PDP e-janitor?? It is such a pity you are not even doing a good job of it.

"Gainfully employed" yet you don't get to rest at night when others are resting, saving up energy for the next day's grind- rather you are sniffing under every single heap of garbage hoping to find a decomposing mass to gobble on and perhaps share with your fellow scavengers, and viola!!- you found one and apparently, you couldn't be happier!!

At least, this would cater for you needs for the next couple of hours before being overrun by a flurry of goodnews.

Another advice- get a good education you little clutterhead. You sound like an illiterate.

SeverusSnape:

You're a buharistic twerp. Can you imagine this hypocrite!....Attacking the messenger and leaving the message, Was he the one who wrote the news... I know zombies like yourself don't like seeing the truth about that illiterate fool of a Presidiot.

SeverusSnape:

Fool, you think everyone is a paid goon like yourself??...you think everyone is waiting for Buhari's N5,000. All what you just typed applies to your Almajiri overlords.

SeverusSnape:
Imagine this cowardly omenka telling someone else to pick up arms and fight for the sovereignty of Biafra, While his Fulani lords are using his people as target practice on a daily basis.
Slave, why don't you go defend your own people??...Filthy nitwit!!!

CyberWolf:
Forget that ediotic hypocrite..He is so hopeless that he doesn't worth wasting time on. Imagine him accusing someone of cowardice when Fulani beasts are busy slaughtering his sisters, both pregnant women and little children in Benue State on a daily basis like a Sallah ram? Omenka you are a hopeless coward and a useless assholle..Hopeless fool

francizy:

This is the problem with sycophantic and hypocritical elements like you. Just like assassins'd never on this planet want anything bad to happen to their own but are quick to kill/waste others. The man you're insulting has not even said to Buhari half of what you said to Jonathan, including the dirty and worthless names you called Jonathan but yet, here you are foaming from the mouth.
If he fights for Biafra, it's understandable cuz he has something to fight for but for an idoma Muslim jhadist who cares less if all Tiv people (their closest neighbours/brothers) are wiped of the face of the earth, what are you fighting for? Is it the political appointment you got when APC won the election or the salaries you earn for supporting APC and forming patriotic?
If you know you cannot bear to watch your god criticized after hurling curses at the past president, better leave Nairaland for saner people to use.

Yeah!! Co-Wailers to the rescue!! Assault vanguard, Fallout!!

See them grunting like wild boars on a feeding frenzy and not a dent is even made on the mark- very typical of opportunistic scavengers.

"He doesn't worth", one of them said- typical of their kind- a conglomerate of illiterates or at best, "adult education".

Got a truckload of work to do boys, I'd be damned if I spent a minute more throwing punches with crude deadbeats like you.

Hope you make the most of this special morning delicacy served you anemones by Pa Shuckwudi of House Wailers.

omenka:
[s]I'm inclined to think your life is so damn miserable.

4.00am when others are asleep, you are up like a mole rat looking for whom to blame for your misery.

At this rate, your state of well-being could only go south I guarantee you.

Your mates are busy taking up arms to fight for the actualisation of a Sovereign State of Biafra and you are here crawling on your belly like a cockroach, hoping to be spoonfed by Buhari. I bet had your mom stuck precisely to her prescription, the world would have been spared gargoyles like you.

When you go out today, get a rickshaw or something, make yourself useful to your father- it is regrettable enough even raising you- don't make him bleed any further.[/s]

You're a buharistic twerp. Can you imagine this hypocrite!....Attacking the messenger and leaving the message, Was he the one who wrote the news... I know zombies like yourself don't like seeing the truth about that illiterate fool of a Presidiot.

omenka:
[s]Gainfully employed as what- a PDP e-janitor?? It is such a pity you are not even doing a good job of it.

"Gainfully employed" yet you don't get to rest at night when others are resting, saving up energy for the next day's grind- rather you are sniffing under every single heap of garbage hoping to find a decomposing mass to gobble on and perhaps share with your fellow scavengers, and viola!!- you found one and apparently, you couldn't be happier!!

At least, this would cater for you needs for the next couple of hours before being overrun by a flurry of goodnews.

Another advice- get a good education you little clutterhead. You sound like an illiterate.[/s]

Fool, you think everyone is a paid goon like yourself??...you think everyone is waiting for Buhari's N5,000. All what you just typed applies to your Almajiri overlords.

Imagine this cowardly omenka telling someone else to pick up arms and fight for the sovereignty of Biafra, While his Fulani lords are using his people as target practice on a daily basis.

Slave, why don't you go defend your own people??...Filthy nitwit!!!

SeverusSnape:

You're a buharistic twerp. Can you imagine this hypocrite!....Attacking the messenger and leaving the message, Was he the one who wrote the news... I know zombies like yourself don't like seeing the truth about that illiterate fool of a Presidiot.

Forget that ediotic hypocrite..He is so hopeless that he doesn't worth wasting time on. Imagine him accusing someone of cowardice when Fulani beasts are busy slaughtering his sisters, both pregnant women and little children in Benue State on a daily basis like a Sallah ram? Omenka you are a hopeless coward and a useless assholle..Hopeless fool

omenka:
I'm inclined to think your life is so damn miserable.

4.00am when others are asleep, you are up like a mole rat looking for whom to blame for your misery.

At this rate, your state of well-being could only go south I guarantee you.

Your mates are busy taking up arms to fight for the actualisation of a Sovereign State of Biafra and you are here crawling on your belly like a cockroach, hoping to be spoonfed by Buhari. I bet had your mom stuck precisely to her prescription, the world would have been spared gargoyles like you.

When you go out today, get a rickshaw or something, make yourself useful to your father- it is regrettable enough even raising you- don't make him bleed any further.

This is the problem with sycophantic and hypocritical elements like you. Just like assassins'd never on this planet want anything bad to happen to their own but are quick to kill/waste others. The man you're insulting has not even said to Buhari half of what you said to Jonathan, including the dirty and worthless names you called Jonathan but yet, here you are foaming from the mouth.

If he fights for Biafra, it's understandable cuz he has something to fight for but for an idoma Muslim jhadist who cares less if all Tiv people (your closest neighbours/brothers) are wiped off the face of the earth, what are you fighting for? Is it the political appointment you got when APC won the election or the salaries you earn for supporting APC and forming patriotism?

If you know you cannot bear it watching your god criticized after hurling curses at the past president, better leave Nairaland for saner people to use.

To all the fighters above me, i hope it ends in physical combat
As for those wey carry the illiterate president matter for head like galla, body go tell una in due time

Oga, relax...Naija mata con hol yu like diz...


Thought you are a Biafran!

Nigeria is crumbling. The earlier the ZOO crumbles the better for everybody. We didn't know who hausas or yorubas were before the Idi0t called Lugard created this evil entity. Nobody knows the meaning of Nigeria or what it represents. My father is older than Nigeria. How can Nigeria then be my father land. I'm a biafran. THE ZOO MUST FALL

Even Baby Obama is crying for this country.
Waiting for Yoruba e-rats and Lai Mohammed to defend this one as one of the successes of the new Change Govt.