- Shen Neng 1 Owners to Pay USD 30 Mn for GBR Damage
Investors in the stock market, on Monday, lost N6.4 billion from their investment in shares quoted on the Nigerian Stock Exchange, NSE as market operators hinged this week’s market performance on the outcome of Monetary Policy Committee, MPC meeting which is expected to end on Tuesday.
The NSE market capitalisation which represents the total value of equities traded on the NSE dropped marginally by 0.07 per cent to close trading at N9.563 trillion from N9.570 trillion it closed last week Friday, %, while the Year-to-Date return stood at -2.80 per cent.
In the same vein, another stock market gauge, the All Share Index dropped by 0.07 per cent or 18.55 points to close at N27, 839.93 points from 27,858.48 points it closed on Friday.
Market operators attributed the bearish market to profit taking by investors as the market had last week closed in the green on all three trading sessions of the week. Consequently, market capitalization improved by N96.5billion to settle at N9.6 trillion.
Activity level moderated consequent on fewer trading days (only 3) last week as a result of the Eid al-Adha public holidays; hence, average volume and value traded slid 13.9 per cent and 11.1 per cent Week on Week, W-o-W to 203.8million units and N1.8billion respectively.
Meanwhile, transaction volume traded yesterday increased by 43.36 per cent from 228.935 million shares to 328.203 million shares, while the total value of stock traded increased by 37.23 per cent from ¦ 2.109 billion to ¦ 2.895 billion in 3,215 deals.
The Financial Services sector led the activity chart with 302.774 million shares exchanged for ¦ 1.7 billion. Conglomerates came next with 8.302 million shares traded for 0.052 billion, Consumer Goods, Oil And Gas, Industrial Goods sectors followed in that order on the activity chart.
Access Bank Plc, FirstBank Nigeria Holding Plc , United Bank for Africa, UBA Plc, Skye Bank Plc and Zenith Bank Plc were the most active stocks by volume. Conoil Plc , Total, MRS Plc , Transcorp Plc and Skye Bank Plc emerged the highest price gainers on the chart, while 7UP Bottling Company Plc, Fidson Plc , PZ Industries Plc, Avoncrown and African Prudential Plc topped the losers chart.
In its comment on market performance, Afrinvest West Africa said that this week’s performance will be broadly driven by investors’ reactions to the outcome of the MPC meeting slated for 19th and 20th September, 2016.
According to Afrinvest “We believe the MPC is faced with three possible options: Ease monetary policy in response to growth slowdown and widening output gap; maintain status quo whilst reinstating the need to fully implement the currency market reforms to regain credibility and push for fiscal-monetary policy coordination to implement structural reforms; and hike rate further to conform with recently guided inflation-targeting thrust and further attract portfolio capital inflows.
“We opine that the MPC will elect to maintain status quo on all monetary policy rates while studying further developments in the economy. We also do not rule out the possibility of some profit taking by investors in counters that appreciated significantly in the prior week.
In the meantime, the Australian Government has reached an AUD 39.3 million (USD 29.6 million) out of court settlement with the owners of a Chinese coal carrier that ran aground in April 2010 causing direct impact on the Great Barrier Reef.
For more than six years, the China-based shipowner Shenzhen Energy Transport, and its insurer “refused to accept their responsibility” for restitution after the 225-metre long, fully laden Shen Neng 1 ran aground 100 kilometres east of Rockhampton at Douglas Shoal.
“Our ongoing actions to pursue funds to clean-up the pollution sends an unambiguous signal that damage to the Great Barrier Reef World Heritage Area is unacceptable, and that we will use every available means to pursue ship owners who are negligent in causing damage to the Reef,” Australia’s Minister for the Environment and Energy, Josh Frydenberg, said.
The funds, sufficient for the clean-up, will allow the Great Barrier Reef Marine Park Authority to initiate field operations to remove toxic anti-fouling paint and rubble, which will enable the restoration of the natural ecological processes of the reef.
The anti-fouling paint at Douglas Shoal contains a highly toxic component known as tributyltin (TBT), which is now banned from use. The paint also contains copper and zinc.
The authorities estimated that the impacts to marine life on the seafloor could potentially last for many decades if the toxic anti-fouling paint remains in place.
Logistical planning for the clean-up has already begun, however due to the deep nature of Douglas Shoal and its exposure to strong tidal currents, work can only safely take place at certain times of the year. Allowing for seasonal weather, the clean-up operation will begin in mid-2017.
The terms of settlement mean AUD 35 million will be paid to the Commonwealth for the cost of removing polluted rubble while a further AUD 4.3 million will be paid to cover costs incurred by the Australian Government in the immediate aftermath of the grounding.
It was estimated that the grounding caused damages to an area covering 0.4 square kilometres at Douglas Shoal, of which 115,000 square metres “were severely damaged or destroyed,” the Great Barrier Reef Marine Park Authority earlier said, adding that the incident also left toxic anti-fouling paint on the reef and on substantial areas of loose coral rubble created by the grounding.
Vanguard with additional report from World Maritime News