Market Capitalisation

Chinyere Joel-Nwokeoma

The price rally on the Nigerian Stock Exchange (NSE) continued on Wednesday with the market capitalisation hitting all-time of N16.080 trillion.

The News Agency of Nigeria (NAN) reports that the market capitalisation, which opened at N15.782 trillion inched N298 billion or 1.89 per cent to close at N16.080 trillion.

Also, the All-Share Index rose by 830.52 points or 1.89 per cent to close at 44,885.24 compared with 44,054.72 achieved on Tuesday.

Mr Oscar Onyema, the NSE Chief Executive Officer, attributed the market growth to outstanding performance of 2017 which boosted investors’ confidence.

Onyema said that the foreign exchange exporter window introduced by the Central Bank of Nigeria (CBN) in 2017 contributed to the market growth.

He said that the window had boosted the confidence of foreign investors, after months of testing with many of them now comfortable to bring in bigger funds.

Onyema added that the rise of crude oil at the international market contributed to the price rally as well as investors’ anticipation of improved performance from companies for the year ended Dec. 31, 2017.

NAN reports that major blue chips posted price growth with Mobil Oil leading the gainers’ table with N16.50 to close at N216 per share.

Dangote Cement came second with a gain of N13 to close at N273, while Guinness appreciated by N5.70 to close at N119.70 per share.

Betaglass added N2.69 to close at N56.56, while Conoil increased by N1.97 to close at N41.38 per share.

On the other hand, Nigerian Breweries led the losers’ chart, shedding N3.44 to close at N146.05 per share.

NASCON trailed with a loss of N1.10 to close at N21, while Zenith International Bank declined by N1.01 to close at N33.50 per share.

US rises in World OIl Output

The United States are set to overtake Saudi Arabia as the world's number two oil producer after Russia this year, as shale companies, attracted by rising prices, ramp up drilling, the International Energy Agency said on Friday.

"This year promises to be a record-setting one for the US," the IEA wrote in its monthly market report.

Crude production of 9.9 million barrels per day (bpd) in the US was now at the highest level in nearly 50 years, "putting it neck-and-neck with Saudi Arabia, the world's second largest crude producer after Russia," the IEA said.

"Relentless growth should see the US hit historic highs above 10 million bpd, overtaking Saudi Arabia and rivalling Russia during the course of 2018 -– provided OPEC/non-OPEC restraints remain in place," it said.

A global supply glut pushed oil prices as low as $30 per barrel at the start of 2016.

But producing nations -- both inside and outside the OPEC oil cartel -- struck a deal at the end of 2016 to cut back production and drive prices higher.

Geopolitical tensions and a reduction in oil stocks have also contributed to the recovery.

Crude recently rose above $70 per barrel for the first time since 2014 after OPEC and non-OPEC countries agreed to extend their combined cutbacks until the end of this year.

Rising prices have, in turn, made it more attractive for shale companies to increase drilling.

And since the United States is not a party to the deal, its shale production can continue uninhibited.

"US growth in 2017 beat all expectations ... as the shale industry bounced back, profiting from cost cuts, (and) stepped up drilling activity," the IEA said.

"Explosive growth in the US and substantial gains in Canada and Brazil will far outweigh potentially steep declines in Venezuela and Mexico," it said.

"The big 2018 supply story is unfolding fast in the Americas," the IEA said.

Shale production is controversial, because in order to extract oil and gas, a high-pressure mixture of water, sand and chemicals is blasted deep underground to release hydrocarbons trapped between layers of rock.

And environmentalists argue that the process -- known as fracking, or hydraulic fracturing technology -- may contaminate ground water and even cause small earthquakes.

- Market nearly balanced -

Regarding OPEC output, the IEA said that there was "no clear sign yet of OPEC turning up the taps to cool down oil's rally".

In its own monthly market report published on Thursday, the Organization of Petroleum Exporting Countries had said that the global oil market was moving closer to reaching a healthy balance between supply and demand.

The IEA, which advises advanced market economies on energy policy, said that there was 95-percent compliance by OPEC countries with the agreed cuts.

Will globalisation take away your job?

culled from BBC

Millions around the globe may have taken to the streets in recent years to protest against the impact of globalisation on their jobs and communities - but this backlash is only likely to grow as globalisation itself becomes more disruptive.

The stark warning comes from Richard Baldwin, president of the Centre for Economic Policy Research think-tank, who has been studying global trade for the past 30 years.

Technological advances could now mean white-collar, office-based workers and professionals are at risk of losing their jobs, Prof Baldwin argues.

In the US, voter anger with globalisation may have led to Donald Trump's election victory, but those who voted for him could be disappointed as his aim of bringing back jobs is unlikely to work, says Prof Baldwin, who also worked as an economist under President George HW Bush.

Protectionist trade barriers won't work in the 21st Century, he says. "Knowledge crossing borders in massive amounts [is the] big new disruptive thing."

It's going to help people in Africa and Asia compete more effectively with people in the West, as communication advances mean workers in the developing world will be able to control robots to do jobs in Europe and the US at lower cost, he says.

Virtual migration

Developing world labour costs can be a tenth of what they are in the West, says Prof Baldwin.

"They can't get here to take the jobs but technology will soon allow virtual migration, thanks to telerobotics and telepresence."