CBN injects another $210m into Forex Market


The Central Bank of Nigeria (CBN) has made available the sum of $210m, to meet customers’ requests in various segments of the inter-bank foreign exchange market.

The CBN, in its quest to meet demands in the various segments of the market offered $100m to authorized dealers in the wholesale segment of the market, while the Small and Medium Enterprises (SMEs) segment got a boost with the sum of $55m. According to figures obtained from the Bank on Tuesday, June 26, 2018, customers requesting foreign exchange for invisibles such as tuition fees, medical payments and Basic Travel Allowance (BTA), among others, were also allocated the sum of $55m.

It will be recalled that the Bank last Thursday, June 20, 2018 intervened to the tune of $210m to cater for requests in the wholesale segment of the forex market.

Meanwhile, the naira continued its stability in the FOREX market, exchanging at an average of N360/$1 in the BDC segment of the market on Tuesday, June 26, 2018.

https://investdata.com.ng/2018/06/cbn-injects-another-210m-forex-market-2/#more

Sale Of Equity Stake Lifts Chellarams To Profit, After Revenue Drop


Chellarams Plc became the first company with March year-end to present its audited financials for the year ended 2018 to the Nigerian Stock Exchange (NSE) on Wednesday, when it reported a 29.58% decline in sales revenue, just as administrative expenses soared by N2.63bn or 150%. The company’s operating loss was transformed into profit by a N2.665bn one-off gain on disposal of investments in equity, which resulted in profit before and after tax for the period.

Specifically, sales revenue for the year fell by N3.668bn, or 29.58% from N12.4bn in the corresponding period of 2017, to N8.732bn, a breakdown of which trading and distribution of fast moving consumer goods, contributed dropped to N1.326bn, from N3.84bn. Industrial chemicals reduced marginally to N2.449bn from N2.728bn; ingredients grew fastest from N692.789m to N1.399bn; revenue from machinery climbed to N2.287bn from N1.11bn; and plastic film, N1.27bn, down from N3.822bn.

By geography, the bulk of revenue for the period came from Lagos/head office, which contributed N7.119bn; followed by Onitsha with N760.613m; ahead of the N556.157m from Kano; ahead of N255.509m from Kano; Kaduna contributed N255.509

Cost of sales also dropped from N9.046bn to N6.917bn, resulting in gross profit of N1.815bn, down from N3.353bn, with Lagos/head office yielding N1.707bn gross profi

Cost of sale was also boosted by the N5.412bn recorded for Lagos; Onitsha with N700.961m; Kano, 523.386m; and Kaduna, N233.209, among others.

Other operating income soared by N875.94m or 775.94% from N96.838m in 2017 to N875.943m, with rental income accounting for the lion’s share of N544.182m representing 62.12% of total, from N57.924m, just as there was a N237.4339m one-off profit on disposal of property, plant and equipment, among others, or 27.1%. Selling and distribution expenses increased to N84.157m from N78.319m, lifted by the N54.997m sales expenses, which rose from N33.329m.

Administrative expenses soared from N1.754bn to N8.384bn, the biggest contributor to which was the N2.174bn impairment charge, which rose from N29.815m; followed by N724.169m salaries and wages, which dropped marginally from N793.929m; leaving operating loss of N1.777bn, with industrial chemical segment contributing N518.806m; ingredients pooled N147.138m; plastic film, N226.364m; and machinery, N356.452m. Industrial chemicals chalked N522.575m; just as FCMG, N564.603m. In the prior year, profit stood at N1.617bn.

The company cut its finance costs down to N599.549m from N950.406m, which was mainly the N570.62m interest on bank term loans and facilities, down from N878.026m; fair value loss on investment in associate, N18.918m, as against N106.422m.

The sale of equity investment dropped from N567.738m to N269.904m, representing a N297.834m or 52.46%, from N567.738m in 2017; just as tax expenses slipped to N69.193m, as against the previous N233.683m. Net profit therefore dropped to N200.711m from N334.055m; even as other comprehensive income for the year, net of tax stood at N1.437bn; and total comprehensive income for the year, N1.638bn, or 245.38 kobo; up from just N334.055m, or 40.16 kobo.

The directors did not however recommend a dividend, making it the third successive year that the directors did not propose any payout, since 2015 when shareholders got 5 kobo per share, half of previous year’s.

Also, in the five years since 2015, Chellaram’s net assets per share has grown steadily to 471 kobo, from 161 kobo.

https://investdata.com.ng/2018/06/sale-equity-stake-lifts-chellarams-profit-revenue-drop/#more

Rising Oil Prices May Boost Govt Spending, As Investors Eye Dividend Stocks


Market Update for Week Ended June 22 and Outlook for June 25-29

Recovery of Nigerian stock market was once again halted last week as it closed lower after a protracted correction and volatility spanning over five months, keeping many stocks undervalued. It has also created ample opportunities for bargain hunters who understand the importance of technical analysis in trading and investing to position lower and sell higher. Technical analysis enables you identify bottoming out and support levels that gives insight of accumulation phase of the market cycle, thereby putting money in the pockets of inventors at the mark-up stage.


As a result of the week’s loss, the NSE’s year-to-date return turned negative again at 1.00%, due to panic sell-offs and prolonged profit taking that started in late December 2017, despite which it still managed to emerge one of the best performing stock exchanges in the world for that year, as the NSE All-Share Index recorded 42% return.

The market started the year 2018 on a strong note that suspended the well-known January effect, before caving in to form a bearish channel that revealed apprehension among investors, made worse by effects of the coming 2019 elections. Add that to effects of the mounting trade war tensions that continues to threaten global economic recovery, even as crude oil prices rebounded again after the Organisation of Petroleum Exporting Countries (OPEC) and other non-member major oil producers, led by Russia, agreed to maintain 100% production cut compliance. All these in an already tensed environment where rate hike in the developed economies are exacting pressure on emerging and frontier markets. The ongoing tariff war is likely to weaken global economic growth and development, besides threatening international trade and investment that oil international relationships, since the world leaders of today chose to flex power with tariff imposition.

It is noteworthy that Wednesday’s signing of the 2018 budget into law by the President, seven months after it was first presented to the National Assembly did not reflect on the market as equity prices continued to decline. This is a pointer to the level of confidence investors have in the government and its economic managers. However, the 2018 budget is another opportunity for reflating the economy, this is however, if the needful is done at this point of implementation by fixing some of the nation’s structural imbalances to set Nigeria on a path of growth by judiciously executing projects in the budget to further boost national economic fundamentals.



Back to the market, the negative sentiments in the review period were evident in the selling pressure of 99% and buying volume of 1% that signaled smart money still flowing out in search of safety in the midst of the higher yield environment in developed market. Investors continue their cautious trading ahead of March full-year and second quarter earnings reporting season. Last week’s profit-taking reflected on the money flow index that inched to 39.88 points, from last week’s 38.09 points as the Nigerian Stock Exchange’s benchmark All-Share Index traded below its 50-Day Moving Average (DMA) for just a week now, while remaining above the 100- Day Moving Average.

Equity Indicators Last Week

The composite NSEASI for the period under review fell by a significant 1065.49 basis points, closing at 37,862.53bps after opening from 38,928.02bps, representing a 2.74% decline on a low volume of transactions, compared to the previous week’s. The volume index of total transactions for the week was 0.45, as the index again broke down the psychological line of 38,000bps. Similarly, market capitalisation for the period close at N13.72tr from an opening value of N14.10tr, representing a 2.74% value loss as highly capitalized stocks recorded price depreciation to deepen investors’ red positions.


Advancers’ table at the end of the four trading sessions for the week were dominated by low price stocks especially insurance stocks as bargain hunters took advantage of their low valuation in the last five months of correction. Fund managers and other players that would earn quarterly fee or commission are positioning ahead of the half year earnings season, knowing that pension funds investment in equity market favours dividend companies with a five-year record of consistent payout which NEM and AXA Mansard are among.


The bearish performance for the period impacted negatively on the NSEASI’s year-to-date returns, turn negative at 1.00%, just as market captalistion growth stood at N54bn, representing 0.48% rise from the year’s opening value.


Negative Market Breadth


Market breadth during the week was negative as decliners’ outnumbered advancers in the ratio of 44:25 on low volume of trades and high selling pressure as traders took profit from the two-week bull-run to create another opportunity for new entrants in expectation of external stimulus and earnings news to influence the market positively.


The week’s trading was kickstarted on a negative note, losing 0.68% on Tuesday which was sustained till Friday, recording loss of 0.23%, 1.17% and 0.75% respectively due to selloffs and profit taking that led to the week 2,74% decline.

Sectorial performance for the period were bearish as all indexes closed lower in the same direction with the general market, except for the NSE Insurance that closed higher with 3.55% while AseM was flat.


Activity in volume and value for the period were down by 36.78% and 16.20% to 1.1bn shares worth N15.47bn, from previous week’s 1.74bn units valued at N18.46bn.

Best performing stocks for the period were Japaul Oil and C & I Leasing topping the advancers table with 23.68% and 14.45% gains respectively, to close at N0.47 and N1.98 per share, due to low price and market sentiments. The worst performing were Honeywell and Lasaco that lost 16.06% and 10.53% to close at N2.09 and N0.34 respectively on profit taking and market forces.

During the period under review also, the share prices of Cement Company of Northern Nigeria (CCNN), Conoil and Beta Glass were adjusted for dividend recommended by the company directors.

Market Outlook

We expect, mixed performance with less profit taking this week as the 90-day statutory deadline for release of March year-end accounts, which is expected to add more impetus to the market if the numbers beat expectations. However, let your technical analysis insight guide at this point with the combination of positive economic data and company numbers in takin investment decisions.


Meanwhile, Investdata expects the impact of the rising oil price at the international markets to boost fiscal spending and support economic fundamentals.




Meanwhile, dividend income players are taking position ahead of more economic data, even amidst the expected sustained volatility and repositioning.

Save The Date: Investdata Stock Market Training Workshop


On Saturday, July 28, 2018

Comprehensive Stock Trading & Investing Toolkit for Rest of 2018

Sub Topics


Review of 2018H1 Market & Economic Performance: How Fiscal Reforms and Stimulus Will Support the Market/Economy in 2018H2.

In this presentation, the speaker will discuss how historically the Fiscal and Monetary policies have influenced Nigeria’s stock market, the implications for the second half and it would drive equity prices higher as recovery continues.

2018H2 Trading Checklist: How to Find Winning Stocks in Nigeria’s Volatile Equity Market

After the prolonged correction, volatility is here to stay for the rest of 2018. Is it time to start worrying about losses suffered so far, a flattening yield curve or time to relax due to the outstanding earnings season? Better yet, is there a way to harness increased volatility to your advantage? Our facilitator, a stock market expert will show you how to handle increased volatility in 2018. He’ll offer insights into forces impacting today’s market. He will share, using real-time examples, his ultimate checklist to finding winning stocks propelled by volatility. This simple strategy allows you to quickly evaluate stocks and to better time entry and exit points, while understanding market forces moving your portfolio

How To Generate Consistent Superior Equity Returns and Income With Dividend Stocks

In this presentation, the expert will discuss his approach to generating equity income by investing in undervalued dividend stocks, what he looks out for when trading dividend stocks at a discount to historical valuations on multiples of price to sales, earnings, cash flow, book value, and enterprise value to EBITDA. In addition, he requires companies to have positive operating cash flow over the past 12 months, with dividends covered comfortably by cash flow.

Powerful Patterns and Effective Strategies for Trading Shifts in Market Volatility

Recent and ongoing changes in market volatility present both risks and opportunities for discerning traders. Learn some of the most effective strategies for taking advantage of the high-probability trading opportunities available in equities, while minimizing risks associated with stock market trading. The six most powerful patterns in the market to trade, how to know which patterns and strategies to specialize in for consistent results and the critical difference between oscillating and momentum patterns.

https://investdataltd..com/2018/06/rising-oil-prices-may-boost-govt_26.html

StateofStates: Only 15 Nigerian States Published 2018 Budgets, Says BudgIT


Civic tech transparency group- BudgIT says the level of transparency among states in Nigeria is still very low with only 15 states or 41.66% of the country’s 36 federating units have made their 2018 spending plan (budget) assessible to the public, even with the year half-way gone.

BudgIT, which is currently conducting a campaign to examine the level of transparency in through online assessment on the availability of public finance documents in State government domains, lamented that such secrecy is what breeds corruption and mediocre performance in states.

It listed the 15 compliant state with available budget documents for 2018 as: Borno, Delta, Edo, Ekiti, Gombe, Kaduna, Kano, Katsina, Kogi, Kwara, Lagos, Nasarawa, Ondo, Plateau and Yobe.

Even so, BudgIT, established with the aim of holding government accountable and creating an active citizenry to improve governance, added that only those of 13: Borno, Delta Edo, Ekiti, Gombe, Kaduna, Kano, Katsina, Kogi, Nasarawa, Ondo, Plateau and Yobe are sufficiently detailed.

Lagos and Kwara, according to the statement by Abiola Afolabi, Communications Lead at BudgIT, “provided a summary of their budgets on the government websites. The document provided lacks actionable detail with which citizens can hold their elected officials to account.

“Our organisation would like to state explicitly that Lagos and Kwara States have a history of opacity over the years and are notorious for resisting attempts by citizens to pry into the affairs of the state.”

The #StateofStates advocacy, it stressed, continues to critically look at the proactiveness in the disclosure of information in the Nigerian States and their compliance with the Freedom of Information law where applied. Transparency in the States continues the downward swing as governments persist in denying citizens the access to relevant information.

While it is commendable that the States released full budget documents with details as presented to the State House of Assembly to the public, BudgIT stressed the need for such to be published within a reasonable timeframe.

This, it continued, would enable the people engage their legislators during the budget debate, adding that “any State keen on citizen participation in governance should publish full details of the proposal with 48 hours of submission to the legislature.

The fundamental requirement of good governance is transparency, and the least form of transparency is the availability of public finance information, BudgIT added, quoting Abayomi Akinbo, its Project Manager, as saying that “information on government spending from the public purse should be provided to the people by the government through various communication channels; one of which is the official state website. However, this is not the case with State governments in Nigeria.”

Specifically, the organisation argued that budget should go beyond the release of pictures and stories of projects executed, with “citizens informed of project cost to enable them to decide if the project delivered optimum value for money spent. Nigeria battles the current scourge of corruption due to the prevailing practice of opacity at federal, state and local levels. No country achieves transparency and accountability without the active participation of citizens in the management of its resources. Taxpayers must hold government accountable to enable them to enjoy the dividends of democracy.

BudgIT called on the people of non-compliant states of: Abia, Akwa Ibom, Adamawa, Anambra, Bauchi, Bayelsa, Benue, Cross River, Enugu, Gombe, Imo, Jigawa, Kebbi, Niger, Ogun, Osun, Oyo, Rivers, Sokoto, Taraba, and Zamfara “to demand their budgets be made open and accessible to ensure the society works in their interest. We equally call on all Nigerian citizens to keep an eye on the funds and follow the money. Across the world, transparency has been noted to foster citizens trust in government and increasing investor confidence. States with partially detailed budgets documents in public domains must provide details of capital projects being executed for the fiscal year.”

https://investdata.com.ng/2018/06/stateofstates-15-nigerian-states-published-2018-budgets-says-budgit/#more

Publish Your ‘Actual Expenditure,’ Justify N125bn 2017 Budget, BudgIT Tasks NASS


Following recent bickering over padding and doctoring of the 2018 Federal budget between the Presidency and National Assembly, Civic tech transparency group- BudgIT, on Wednesday challenged the National Assembly on the lack of transparency of its budget process.

In a series of tweets, reacting to the adjustments to the nation’s spending plan recently signed by President Muhammadu Buhari, BudgIT urged “NASS to publish its detailed actual expenditure that justifies its 2017 budget of N125bn.”

It noted that “NASS made a poor defence of the increase in its budget by N14.5bn by stating that funding for other statutory agencies were increased and also mentioned need to overhaul to security architecture of the complex of the complex.”

At a time the legislators jerked up their allocation, BudgIT wondered why they cut strategic funding for for tertiary health institutions in the country by 80% from N6bn recommended by the executive to just N1.2bn.

“We find this very wrong that the National Assembly reduced funding for tertiary health institutions. A supplementary budget should be sent,” BudgIT added.

On the cut in the appropriation for the Mambilla Power Plant from N8.5bn to N8.2bn, the organization believes it would not significantly affect the construction of the road in one appropriation cycle, but urged the Presidency to make available the N8.2bn to kickstart the project.

BudgIT noted that the Bonny-Bodo project was reduced from N10bn to N9.05bn and not N8.7bn as claimed by the executive, just as it urged the executive to provide details on funds released so far for the Lagos-Ibadan expressed way which was reduced by N2.5bn, while urging the National Assembly to partner on the matter.

The NASS reduced allocation to the project to N20.5bn, from N22.52bn, representing a N2.5bn or 12.46%.

BudgIT also questioned the rational for the cut in appropriation to the Itakpe-Ajaokuta Rail Project from N6.91bn to N1.41bn; stressing also that the justification by the Senate for cutting funding for104 Unity Schools across the country by N3bn did not make sense. The NASS explanation that additional N3.7bn was added to the budget for meal subsidies in these schools and creating new budget lines for meal susbsidies do not match the same priorities.

The NASS, BudgIT noted, did not give explanation for cutting funding for housing projects, wondering whether the legislators are not interested in the project.

“Allocation for the provision of federal government’s national housing programme was cut by N8.78bn from N35.41bn to N26.65bn. We need to ask questions,” it added.

BudgIT also expressed worry over the NASS decision to cut funds for pension redemption fund from N112.2bn to N110.2bn and public service wage adjustment from N43.14bn to N40.14bn, which the NASS did not specifically respond to.

The executive was enjoined to make supplementary budget for the cut in take-off grant for the Maritime University in Delta from N5bn to N3.4bn.

https://investdata.com.ng/2018/06/publish-actual-expenditure-justify-n125bn-2017-budget-budgit-tasks-nass/#more

Tripple Gee Grows Net Profit By 129%, Offers 3 Kobo Dividend


Directors of Tripple Gee and Company, on Wednesday presented its audited financials for the year ended March 31, 2018, indicating that profit before and after tax recorded triple digit growth, despite the 23% rise in turnover and 168% increase in tax provision.

Turnover for the period rose by N140.833m, or 23.4% from N601.722m in the corresponding period of 2017, to N742.56m; with the biggest contribution being N281.028m from packaging, as against the N79.116m; followed by N193.827m from printing services, up from N187.849m; and N170.232m from other printing services; just as ‘other packaging,’ which scooped the lion’s share of revenue last year, pooling N203.876m, adding just N97.473m this time around.

Cost of sales jumped to N545.029m from N428.311m; resulting in gross profit of N197.531m, compared to the previous N173.411m, with raw materials consumed being the biggest expense head at N327.133m from N205.591m; salaries and wages gulped N111.374m, compared to N107.892m; while the biggest growth came from repairs and maintenance of N16.49m, up from N2.563m.

There was one-off other operating income of N200,000; just as distribution and administrative expenses grew from N123.923m to N145.922m; leaving operating profit of N51.809m, which was better than the prior N49.488m.

Finance cost for the year dropped significantly from N34.025m to N14.017m; net finance cost slipped from N33.899m to N14.005m.

Profit before tax jumped 142% up from N15.589m in 2017, to N37.804m; even as tax provision climbed from N5.35m to N14.354m; while profit after tax increased to N23.45m from N10.239m. This translated to Earnings Per Share of 4.74 kobo, as against the previous 2.07 kobo, from which the directors have recommended a dividend of three kobo per share.

The five-year financials show that while the company has continued to oscillate from N850.042m in 2014, dropping and rising every alternate financial year, profit after tax Has behaved similarly, rise from N15.494m to N40.759m; before it slumped to N27.663m in 2016; and then N10.239m the following year, before attaining N23.45m.

https://investdata.com.ng/2018/06/tripple-gee-grows-net-profit-129-offers-3-kobo-dividend/#more

ACCOMODATION BILL

This is a bill of exchange signed by one person in order to help another to raise a loan, the signatory or accommodation party is acting as guarantor, and normally does not expect to pay the bill when it falls due, accommodation bills are also known as kites, windfalls or windmills.
The bill then can be discounted on the financial strength of the guarantor who remains liable until the bill is paid.

Investdata Academy
http://investdataltd..com/2018/06/accomodation-bill.html

Resolve USSD Disputes In Three Days, CBN Tasks Banks


The Central Bank of Nigeria (CBN), on Saturday directed all commercial banks in the country to resolve disputes arising from use of Unstructured Supplementary Service Data (USSD) channel within three days.

Speaking at the ‘Meet The Executive’ forum organised by Finance Correspondents Association of Nigeria (FICAN) in Lagos, CBN Director, Banking & Payment Systems Department, ‘Dipo Fatokun, said such resolution will help boost confidence in the payment system and bring more people into the financial services net.

According to him, some provisions of the regulatory framework for USSD like the authentication measures for transactions, International Mobile Subscriber Identity (IMSI), Date of SIM Swap, Date of Device change, International Mobile Equipment Identity (IMEI) among others were meant to make the channel more effective.

Fatokun, who was represented by Assistant Director in the department, Taiwo Oladimeji, said maximum USSD transaction limit remains N100, 000 per customer per day, as any amount above requires the customer to execute indemnity at the bank.

Speaking on the theme: Half-Year Review of Developments in the E-Payment Industry and Customer Protection, Fatokun said: “USSD transactions above N20,000 require two-factor authentication (2FA). No USSD financial service should be activated for customers unless the deactivation mechanism is put in place with effect from October, 2018. In addition, the CBN is currently working to properly structure and formalize the sandbox arrangement in Nigeria by collaborating with some infrastructure providers like the Nigeria Interbank Settlement System (NIBSS) to interact with FinTechs”.

He added that the financial system is undergoing transformation through technology, adding that it is not only peculiar to the financial services sector, but all sectors of human endeavours.

“We are seeing new operators with technology savvy, more efficient models, and collaborations among new entrants as well as established participants in payments systems in ways that exhibit regulatory challenges. To meet up with the challenges, some countries have adopted regulatory sandbox approach which is not totally novel to the CBN. We are however working to properly structure and formalize the sandbox arrangement in Nigeria by collaborating with some infrastructure providers to interact with FinTechs,” he added.

A properly functioning National Payments System (NPS), he continued, is crucial to the financial sector development as it increases confidence in the financial sector by ensuring a credible, reliable and efficient payment system.

In recent years, he stressed that the Nigerian payment landscape has experienced a lot of innovation and is now bursting with enterprise and reaching the unbanked and undeserved.

Speaking further, he said consumer protection, involves a whole range of laws, policies, structures, actions and behaviours designed to protect consumers from the abuse and exploitation of service providers.

“Consumer protection is critical in improving access and usage of financial products and services. Ensures that increase access and usage of financial services, translate into benefits for the economy and individuals. Helps protect consumers from probable market abuse and exploitation. Helps consumers benefit from well informed decisions. Helps consumers appreciate how best to use and manage financial products and services,” he said.

https://investdata.com.ng/2018/07/resolve-ussd-disputes-three-days-cbn-tasks-banks/#more

Flour Mills Records 54% Full-Year Net Profit Growth, Offers N1.00 Div


Flour Mills of Nigeria Plc, on Saturday published its audited financials for the year ended March 31, 2018, indicating that profit before and after tax grew significantly faster than sales revenue. The directors recommended a dividend of N4.10, up from N2.62bn, which however amounted to the same N1.00 dividend per share as that of prior year, from the earnings per share of N4.83; as against the previous N3.03 each.

Recall that during the period under review, the company obtained shareholders’ and regulatory approval to merge Golden Penny Rice Limited, which was effected during the year.

According to the result published by the Nigerian Stock Exchange (NSE), revenue for the period rose by N542.67bn, representing an increase of N18.206bn or 3.47%; from the N524.464bn reported in the corresponding period of 2017. A breakdown showed that sale of goods contributed the lion’s share of N541.279bn, up from N523.917bn, while rendering of services which added N1.391bn, up from N546.665m. Further analysis of the figure showed that the food segment accounted for N431.889bn, as against N422.709bn; followed by agro-allied segment which amounted to N90.683m from N80.514bn; while packaging added N18.705bn, down from N20.693bn. For provision of services, port operation and logistics yielded N1.201bn, three times more than the N414.439m; and real estate-rental income, N190.075m from N132.226bn.

Cost of sales was up N16.12bn or 3.52% from N457.775bn to N473.895bn, with cost of raw and packaging materials gulped N418.672bn up from N403.153bn; just as depreciation cost rose to N14.813bn from N12.1bn; fuel, gas and oil cost followed with N14.156bn, down from N18.581bn; just as production employee cost took up N13.229bn from N12.1bn. Factory repairs and maintenance grabbed N7.0bn from N4.958bn; as other production expenses rose to N3.345bn, compared to N1.339bn; following which gross profit limped to N68.775bn from N66.689bn.

Selling and distribution expenses climbed to N6.18bn from N5.341bn, swelled by N3.673bn selling expenses, slightly more than N3.268bn; employee costs of N1.834bn from N1.697bn; just as advertisement climbed N295.928m or 78.76% from N375.71m.

Administrative expenses increased marginally to N20.115bn from N18.419bn; boosted by Nr.649bn that went into salaries, wages and other staff costs, compared to N4.607bn; repairs and maintenance that rose by N921.546m, or 95.56% to N1.885bn from N964.296m; among others.

net operating gains stood at N5.943bn from a loss of N1.488bn; helped by the combination of sundry income of N1.518bn from N418.972m, N2.151bn government grants, compared to N885.956m; as well as gains on exchange differences of N1.238bn, compared with the N5.742bn loss in the corresponding period of 2017; among others. Operating profit therefore rose from N41.439bn to N48.422bn.

Investment income from short term investments and bank deposits fell by N745.985m or 91.34% to N816.319m, compared with the N1.562bn reported in the prior financial year; even as finance costs stood at N32.597bn, compared to the N32.529bn in 2017, being interest on bank loans and overdrafts od N35.697bn, up from N29.036bn. Fair value loss on derivatives dropped to N3bn, from N3.492bn; resulting in profit before tax of N16.541bn, representing in a N6.069bn or 57.95% increase when compared to the previous N10.472bn; while net income tax expenses increased by N1.289bn or 78.8% from N1.636bn in 2017, to N2.925bn. Profit fore the year climbed N4.779bn or 54.08% up at N13.615bn, compared to N8.836bn.

https://investdata.com.ng/2018/07/flour-mills-records-54-full-year-net-profit-growth-offers-n1-00-div/#more

Investdata Price & Earnings Tracking For Half Year Ended June 29, 2018

https://investdata.com.ng/2018/07/investdata-price-earnings-tracking-half-year-ended-june-29-2018/#more

Investdata Outlook: Where To Invest In 2018 2nd Half


The market and economic outlook for the rest of the year remains dicey and unpredictable as the unstable global economic prospect continues to hamper investor confidence, while the tension arising from the trade threatens world investment and trades relationship that support growth and development. The rising crude oil price that closed above $74 last week should further impact government revenue positively to reflect on the nation’s external reserves, supporting government spending. Revenue in excess of the $51 benchmark set for the 2018 budget should help to fund the budget deficit and reduce borrowing so that the spending plan will make the expected economic impact on the life of Nigerians.

The relative peace and security in the nation’s Niger Delta region that has guaranteed stability of oil output has supported the upside in the nation’s revenue, economic health and wellbeing which if not sustained as the 2018 general elections draw closer may reverse the progress recorded so far.

As the second half begins, more positive economic data are expected, especially inflation figure for June which INVESTDATA Research estimated could be in the region of 10.69 to 10.96%, Purchasing Managers Index (PMI) and GDP are also expected to confirm that the economy is on the path of growth or slowing down.

As Q2 earnings season kicks off on Monday, after the Q2 officially ended last week, company scorecards for half year are expected to reveal the current performance position in order to help investors ascertain the health and wellbeing of listed companies as they take investment decisions. This is especially true as equity prices remain low and the general election draws closer on daily base.

Traders and investors who understand the operations of the stock market should take this opportunity to position in some sectors for medium to long term gains, especially in the industrial goods, banking, Insurance, Agribusiness and consumer goods.

The half-year financials of many listed companies will help to project whether a company is likely to post better Q3 earnings or not, which is the most important quarterly earnings reports that give insight of how the full year could pan out, while at the same picturing economic activities as measured by the GDP.

July As An Unpredictable Month On Nigeria’s Bourse

Equity price movement as we have always noted in INVESTDATA, is a function of earnings. And other information emanating from its sector of operation and the economy which are expected to attract market players for different investment goals. In the Nigerian stock market, the month of July has been unstable in terms of performance making, it difficult to predict, especially with uncertainties that surround pre-election periods, since political parties have not done their primaries or shadow elections to choose candidates that will bear their flags in the general elections. It is very dicey at this point to predict whether it is an up market in July, but an oscillating market in this second half will likely close the year marginally up or flat as recorded in the first-half.

What to expect in July and August

Implementation of new NSE market structure and pension funds new assets funding
More quarterly and few full year earnings would be released. Earnings from blue-chip companies may strengthen market fundamentals, if positive and do beat estimates.

Interim dividend expectation especially from the financial services stocks
High market volatility as a result of profit taking and some disappointing numbers that will be released this period. Also, the source of funds flowing into the market may cause fluctuations, giving that both local and foreign institutional investors trade thereon. Also, there is the factor of the Federal Government crowding the private sector out of the financial market, with their offer of high and mouth-watery rates.
Investors are expected to reshuffle their portfolios and invest in equities with strong fundamentals and prospects of growing their earnings going forward.

A more vibrant market as a result of market players positioning for second half of the year, even as we expect liquidity to improve more.
Market outlook for these months are dicey but invest wisely, using dates, bids, offers and volume when taking decisions.
Managing risk and protecting capital at this point is very important, so you will be able to determine when to buy or sell by watching the stocks and the market, using technical analysis tools.

Ambrose Omordion
CRO|Investdata Consulting Ltd
info@investdataonline.com
info@investdata.com.ng
ambrose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467
https://investdata.com.ng/2018/07/investdata-outlook-invest-2018-2nd-half/

Better Earnings, 2018 budget, Electoral Spending, May Support NGSE Rebound If…


2018 Half year Market Roundup

Nigeria’s equity market in the first half of year had a volatile performance to close the period flat on a continued selloff and profit booking that wiped off the unprecedented rally recorded in January as the bullish ascendancy in 2017 extended into 2018, During which peaked at 45,321.83. Thereafter, it pulled back for four consecutive months, a situation that can be blamed primarily on a lack of economic direction and weak economic activities capable of boosting investor confidence.

Add this to the absence of a budget until the twilight of the first half, when the President grudgingly assented to budget that spent over six months within the chambers of the National Assembly in an election year, when politicking is known to take precedence over governance, as politicians jostle for elective positions.

This situation reflected on the Purchasing Managers Index for the period which declined from 59 points recorded in December to low of 56.5 points in May before inching up in June to 57 point, due to the slowdown in economic recovery as revealed by the 2018 Q1 GDP of 1.4%, declining from the 2017 Q4 position. The possibility of a slowdown in the just concluded Q2 is very high as economic activities within the period was down and slow, as capital outflow was high due to interest rate hike in the developed economics that triggered higher yield environment in US. There is also the impact of the unfolding trade war tension that had made investors all over the global tread cautiously.

The market’s resistance of further decline in June ahead of another earnings reporting season after it had suffered huge losses may signaled an uptrend in July if the numbers come in line with investors’ expectations. This is considering the prevailing low valuation as pension fund administrators begin a new assets classification and funding that are likely to boost market liquidity and support stability over time.

The continued positive economic data emanating from the Central Bank of Nigeria (CBN) and the National Bureau of Statistics (NBS) before now have been ignored by smart money investors that kept selling down their positions. This has prolonged the correction and made equities parade low Price/Earnings (P/E) ratios.

The improvements recorded in the Q1 corporate earnings presented to the Nigerian Stock Exchange (NSE) have, however, not supported prices so far due to selling pressure.

Meanwhile, the composite NSE All Share Index for the first half of the year recorded a marginal gain of 35.36 points to close at 38,278.55 points from the opening figure of 38,243.19 points, representing 0.09% growth on improved volume of 64.17bn shares traded, up from previous half-year’s 43.13bn units. Demand for stocks dropped as selloffs increased while hot money exited their position for more predictable markets with higher yield environment and safety, irrespective of the stronger corporate numbers that had made stock prices cheaper amidst the higher dividend yields.

The selling volume of total transactions for the period was 68%, while buying position was 32% to maintain down market, which was opposite of the previous half year’s (2017) market performance. Similarly, market capitalisation for the period went up by N26bn, closing at N13.87tr, from an opening value of N13.61tr, representing 1.91% appreciation in value. This resulted from positive sentiments for some equities that hit their 52-week high, additional shares listed after conclusion of their right issues and merger agreements.

No doubt, Nigeria’s economic recovery has slowed down with the stock market which is a leading indicator has remained bearish in the last five months of the period under review. The likely recovery in the second half of the year due to the improving corporate earnings, implementation of 2018 budget, election campaign spending, among others may further support recovery of equity prices, if the numbers beat estimates.

Market breadth for the period was negative as the number of decliners outpaced advancers in the ratio of 72:54, reversing the bullish transition of 2017 that extended to early 2018, after the market had rallied to the recent peak in January 2018

As shown in the sectoral performance chart below, the NSE pension index gave the market the most significant boost in the half-year, gaining 8%, much more than what the composite NSE All-Share Index recorded in the period. It was followed by the Insurance index that rose 7.94%, while NSE Premium gained 6.10%. Other sectors that recorded growth were: NSE Corporate governance, Industrial, Main Board and Banking. On the flip side, the NSE Consumer goods, Oil/Gas, NSE 30 and alterative market index closed red, while the Alternative securities Market recorded the biggest loss of 12.67%.

Sector Performance First Half 2018



The best and worst performing equities in the first half of the year are recorded in the table above.

A further breakdown of the half-year performance showed that, 54 stocks appreciated in price and 24 gained over 20%, compared to their opening value at the beginning of 2018, with CCNN topping the advancers table after soaring 152.63% higher, helped by the high dividend payout from the impressive corporate earnings, proposed expansion and merger plan with Kalambaina Cement Limited, a sister company (READ MORE). The expected synergy is likely to further support the share price when the merger is consummated, would result in enhanced production capacity that will boost earnings power. NEM Insurance followed, gaining 92.77%, helped by positive market sentiments and improved numbers. Unity Bank jumped 83.02%, coming behind NEM, while Ikeja Hotel, Learn Africa, Caverton, Eterna, Beta Glass, Fidson and C/I Leasing closed the period better at 75.84%,71.59%,68.99%,68.25%,68.19%,62.16% and 60.47% respectively.

Also, the fact that low and medium cap stocks dominated the best performers’ chart shows the sell position in blue chips from where smart money is exiting.

The worst performers’ table were dominated by insurance stocks, despite the fact that the sector is trying to awake from its season of poor corporate governance, while rewarding shareholders with dividend in their bid to prevent their share prices from hitting the new one kobo floor set by the NSE, beginning from January this year.

Knowing that equity market is information driven, any company that fails to provide information about its operations, plans and forecast will be penalized by the investing public. The companies that shed 40% and above were low price stocks, the highest losers for the period are UNIC Holdings, FTN Cocoa, Multiverse, Africa Alliance Insurance and Courtville which recorded 60% loss. This was purely due to the impact of the new pricing rule and market forces. They were followed by Equity Assurance with 58% decline in value due to non-payment of dividend and the new pricing rule, others were Regency Alliance, Niger Insurance, Consolidated Hallmark Insurance and Dunlop that lost 58%,50%,48%,42% and 42% respectively.



Investdata Stock Market Training Workshop

On Saturday, July 28, 2018

Theme- Comprehensive Stock Trading & Investing Toolkit for Rest of 2018

Sub Topics:

Review of 2018H1 Market & Economic Performance: How Fiscal Reforms and Stimulus Will Support the Market/Economy in 2018H2.

In this presentation, the speaker will discuss how historically the Fiscal and Monetary policies have influenced Nigeria’s stock market, the implications for the second half and it would drive equity prices higher as recovery continues.

2018H2 Trading Checklist: How to Find Winning Stocks in Nigeria’s Volatile Equity Market

After the prolonged correction, volatility is here to stay for the rest of 2018. Is it time to start worrying about losses suffered so far, a flattening yield curve or time to relax due to the outstanding earnings season? Better yet, is there a way to harness increased volatility to your advantage? Our facilitator, a stock market expert will show you how to handle increased volatility in 2018. He’ll offer insights into forces impacting today’s market. He will share, using real-time examples, his ultimate checklist to finding winning stocks propelled by volatility. This simple strategy allows you to quickly evaluate stocks and to better time entry and exit points, while understanding market forces moving your portfolio

How To Generate Consistent Superior Equity Returns and Income With Dividend Stocks

Here, the expert will discuss his approach to generating equity income by investing in undervalued dividend stocks, what he looks out for when trading dividend stocks at a discount to historical valuations on multiples of price to sales, earnings, cash flow, book value, and enterprise value to EBITDA. In addition, he requires companies to have positive operating cash flow over the past 12 months, with dividends covered comfortably by cash flow.

Powerful Patterns and Effective Strategies for Trading Shifts in Market Volatility

Recent and ongoing changes in market volatility present both risks and opportunities for discerning traders. Learn some of the most effective strategies for taking advantage of the high-probability trading opportunities available in equities, while minimizing risks associated with stock market trading. The six most powerful patterns in the market to trade, how to know which patterns and strategies to specialize in for consistent results and the critical difference between oscillating and momentum patterns.

https://investdata.com.ng/2018/07/better-earnings-2018-budget-electoral-spending-may-support-ngse-rebound/

Corporate Actions & AGMs Dates 2018


http://investdataltd..com/2018/07/corporate-actions-agms-dates-2018.html

GTBank, Diamond, UPDC Announce Closed Period For Half Year Accounts


The board of Guaranty Trust Bank Plc, Diamond Bank and UACN Property Development Company, on Monday wrote the Nigerian Stock Exchange (NSE) announcing the closed periods for the half year financials.

GTBank, for example, in the filing by Erhi Obebeduo, its company secretary, said its closed period begins from July 4, 2018, ahead of which the board is scheduled to meet for consideration of the financial statement and to discuss issues relating to payment of an interim dividend, on Wednesday, July 25, 2018.

In another notice of the bourse also on Monday, the bank said it is required to forward the audited account to the Central Bank of Nigeria (CBN) for approval, prior to the release of the results on the floor of the NSE.

Rather than give a period when it is expected to conclude this process, Obebeduo simply said the NSE will be notified “of the decisions reach after the approval of the CBN is obtained.”

Also, on Tuesday, the board of Diamond Bank informed the NSE of its board meeting slated for July 19, 2018 to consider and approve its un-audited financials for the half-year ended June 30, 2018.

Consequently, its closed period is to begin from July 4, 2018 until the un-audited financials is released to the bourse, according to a statement signed for Uzoma Uja, its company secretary and legal adviser following which it said “no director, employee, persons discharging managerial responsibilities, and advisors to the bank and their connected persons may directly or indirectly deal in the shares of the bank in any manner during the closed period.”

UACN Property fixed its closed period from Tuesday, July 3, to 24 hours after the audited result for the period ended June 30, 2018, “is announced to the market.”

Within the period however, according to Folake Kalaro (Mrs), its company secretary/legal adviser, the board is scheduled to meet and consider the unaudited half year financial statement for Wednesday, July 18, 2018.

https://investdata.com.ng/2018/07/gtbank-diamond-bank-updc-announce-closed-period-for-half-year-account/#more

UBA Seeks NSE Approval To File Audited Half-Year Account August 29


The board of United Bank for Africa Plc, on Monday sought the approval of the Nigerian Stock Exchange (NSE) to allow it presented its audited financials for the half year ended June 30, 2018 on, or before August 29, 2018.

As part of the NSE’s post-listing requirements, companies are required to submit their quarterly results one month after the end of the period and audited full-year 90 days after (on March 31) of the following year.

The notice by Bili Odum, UBA Plc’s Group Company Secretary, also notified the exchange of its closed period, in line with Rule 17.18(b) of the NSE’s Rule Book.

The closed period is a time when its officials (board members, top management and some group of stakeholders are forbidden from trading in its shares, thereby preventing them from taking advantage of price-sensitive information at their disposal.

The notice set a closed period of Tuesday, “July 3 up until the release of UBA’s 2018 audited half year financial statements.”

It is envisaged that during the period, the financial statements would be audited, “following which we will seek the approval of the Central Bank of Nigeria before its publication on the Nigerian Stock Exchange (NSE).

The waiver is to avoid going against provisions of Section 1.1.3 of the Rules for filing of accounts and treatment of default filing, Rule Book of the Nigerian Stock Exchange (Issuers Rule), which states that, “An issuer that chooses, in addition, to audit its quarterly accounts shall file such accounts not later than sixty (60) calendar days after the relevant quarter.”

https://investdata.com.ng/2018/07/uba-seeks-approval-file-audited-half-year-account/#more

How to Strategically use time and sequence in a Bear or Bull market.

"To everything there is a season, and a time to every purpose under the heaven..."

It is absolutely crucial that in a stock market, the strategy has to be put together properly. This involves both timing and sequencing. Doing the right thing at the wrong time can be as bad as taking an action which is not the right thing to do under any circumstances. buying a good and promising stock during a transition from Bull to bear market is a classical example.

So in other to use the principle of timing and sequence effectively, you need to consider these 4 key questions:

1. When should you take a specific action? There are certain situations where you should try to be first, others where you better be off simply been early but not first.

2.In what sequence should the action be taken? Taking the correct actions in the proper sequence can give a powerful boost to your overall market strategy.

3.Will the action be continuous or discrete: you need to decide if you want to maintain a constant level of action to produce results while others are best done periodically.

4.Are there actions to be repeated? If so, with what frequency?

However, strategy can not be designed in isolation, you have to be equipped with the right knowledge in other to come up with a strategy that will give you your desired result and the number one key feature of a Strategist is planning because many mistakes are avoided with such a powerful decision. *So why don't you just plan the rest of 2018 investment year and beyond by investing in

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This chart summit was so good that I just couldn’t stop watching. Today's chart summit was the best class I have attended in over 10 years. It’s going to make a big difference in my trading.

Dedicated to your Financial Freedom.
Ambrose Omordion

Well you may decide not to take action because of the current state of the market which is still understandable. However, doing the same thing and expecting a different result is insanity. So, change your approach Now by calling 08028164085,08032055467 or send an email to ambroseconsultants@yahoo.com

http://investdataltd..com/2018/07/how-to-strategically-use-time-and.html