FG Gives Conditions For Payment of Final $2.689bn Paris Club Tranche

The Federal Government, on Tuesday in Abuja, gave state governments four conditions for accessing the balance $2.689bn of the Paris Club refund which started in November 2016.

In a Hassan Dodo, Director (Information), at the Federal Ministry of Finance, the Federal Government said the amount was arrived at following the reconciliation by the Debt Management Office (DMO), under the supervision of the Finance Ministry.

To benefit from the phased tranches, government of the 36 states are required to pay salary and staff related arrears as a priority; besides committing to the repayment of the Budget Support Loans granted by the Federal Government in 2016. They are also to clear amounts due to the Presidential Fertiliser Initiative, as well as a “commitment to clear matching grants from the Universal Basic Education Commission (UBEC) where some States have available funds which could be used to improve primary education and learning outcomes.”
Clarifying the Paris Club Refund approved for the 36 States of the Federation, the statement “recalled that the issue of Paris Club loan over-deduction had been a long standing dispute between the Federal Government and the State Governments which dated back to the period of 1995 to 2002.

“In response to the dispute, President Muhammadu Buhari directed that the claims of over-deduction should be formally and individually reconciled by the DMO. This reconciliation commenced in November 2016.
“As an interim measure to alleviate the financial challenges of the States during the 2016 recession, the President had approved that fifty percent (50%) of the amounts claimed by States be paid to enable the States clear salary and pension arrears. This was released between 1st December, 2016 and 29th September, 2017. This refund was part of the Government’s fiscal stimulus to ensure the financial health of Sub-National Governments,” the statement added

https://investdata.com.ng/2018/09/fg-gives-conditions-for-payment-of-final-2-689bn-paris-club-tranche/

RT Briscoe Nets N3.16bn Loss, As Auditors Propose Fresh Capital Injection

The suspension of trading on the shares of RT Briscoe may be lifted soon, following Tuesday’s release of its audited financials for the year ended December 31, 2108, with barely three months into the current financial year. The result however showed the company’s further slide into oblivion, as turnover from sales dropped by 55.37%, while loss after tax increased to N3.16bn.

The external auditors- KPMG Professional Services, in its report, proposed that the rt Briscoe shareholders should consider injecting fresh capital into the group to continue as a going concern, given that group liabilities exceeded current assets by N11.27bn; while total liabilities surpassed total assets by N6.04bn.

“As at the date of our report, the company is yet to secure the required funding to enable it settle its outstanding obligations and to finance its working capital requirements. We believe these events or conditions, individually or collectively cast significant doubt on the group and company’s ability to realize its assets and settle its obligations in the ordinary course of business.

“As a result, the preparation of the consolidated and separate financial statements on a going concern basis is inappropriate. In our opinion, the consolidated and separate financial statements should reflect adjustments to reduce the value of assets to their recoverable amounts and to provide for any further liabilities that might arise,” the auditors added.
Specifically, revenue for the period fell by N5.431bn from N9.808bn to N4.376bn; just as cost of sales reduced to N3.405bn from N8.248bn; leaving gross profit of N971.463m, down from N1.559bn.

A breakdown according to business units showed that revenue from motor vehicles and accessories remained the honey pot at N2.556bn; down from N7.1bn in 2016; while and cost of sales was N2.168bn, down from N6.454bn. It was followed by income from after sales services and parts which stood at N1.044bn and N810.472m; as against N1.064bn and N619.729m respectively. Property development and facility management contributed just N219.47m, down significantly from N871.418m

Other income for the period dropped significantly from N345.946m to N83.818m, mainly a total of N24.232m recovered “bad debts,” which fell from N235.376m; while the company recognized an impairment of goodwill totaling N33.999m. Impairment loss on financial assets dropped to N45.804m, being “allowances for doubtful receivables (trade, VAT and Withholding tax); compared to previous year’s N1.134bn. Selling and distribution expenses stood at N187.685m from N186.534m; administrative expenses dropped slightly from N1.526bn in 2016, to N1.254bn; following which operating loss fell from N941.756m to N467.102m.

Finance income dropped to N90.696m from N196.829m; while finance costs increased to N2.76bn from N2.057bn; resulting in net finance costs of N2.67bn from N1.86bn; loss before income tax climbed to N3.145bn from N2.819bn, representing a drop by N326.35m or 11.57%. Loss after tax rose from N2.9bn to N3.16bn, following which loss per share increased to N2.69, from N2.47 each.

https://investdata.com.ng/2018/09/rt-briscoe-nets-n3-16bn-loss-as-auditors-propose-fresh-capital-injection/

Continued Decline In NGSE Index Reveal New Attractiveness Ahead Of Q3 Reports

Market Update for September 11, 2018
It was a terrific session on Tuesday as bearish dominance persisted on Nigerian Stock Exchange with increasing negative sentiments and selloffs in blue chip companies that dragged the market lower, following which many equities continue to trade near their 52-week lows. The market now looks attractive, but low liquidity and fear of socio-political risk ahead of next year’s general elections, which begins in less than 154 days have slowed down buying position. These are in addition to other external factors militating against the market for the past eight months, following which the market has become the worst performing across the globe.

Again, on Tuesday, US 10 years Treasury yields broke out the curve and trend to impose strong challenges on emerging markets price action and valuation, which indicates that the current situation in frontier markets, of which Nigeria is one, will continue. See the chart below.

Meanwhile, the NSE All-Share index started the day with a big gap down in the morning session which got deeper by midday to afternoon, before rallying back sharply after touching intraday lows of 33,114.12 from highs of 33,609.86 to close the day lower at 33,449.17 with the help of price appreciation by Nestle Nigeria to reduce day loss momentum.

Despite the mixed performance of many companies in their half year results, the current market value is revealing some opportunities for different investment purposes and objectives. The earnings capacity of the companies is also revealing their capacity to support their prices, especially against the backdrop of their high upside potentials if positive performance is sustained in the expected Q3 scorecards.

With many stocks still fundamentally attractive, identifying when to buy is however what matters now which technical analysis will do for you, that is why you should go for Investdata Consulting’s July 28, 2018 Stock Trading Workshop HOME STUDY PACK. These are audio-visual materials you can play to view the live class on your phone and laptop to help you know when to jump into the market and specific stocks, or stay out. For your Study Pack, call or send ‘YES’ to the phone numbers below.

Tuesday’s market technicals were negative with mixed sentiments, marginal improvement in volume traded and negative market breadth as revealed by Investdata’s Daily Sentiment Report, showing a ‘buy’ volume of 68% and ‘sell’ position at 32%. Volume index was 0.65 of the day’s total transactions.
The energy behind the day’s market performance was weakened further, as shown in the money flow index at 32.41bps, down from previous day’s 37.98bps, indicating that funds are still leaving the market as high cap stocks nose-diving further in the midst of low liquidity.

Index and Market Cap
At the close of trading, the benchmark index lost 162.52bps, closing at 33,449.17 basis points, after opening at 33,611.69bps, representing a 0.48% decline, just as market capitalisation dropped by N59.34bn, closing at N12.21tr from N12.27tr, representing a 0.48% value depreciation to further deepen investors’ red position.

If you haven’t joined Investdata Buy & Sell Signal setup, where you can look over our shoulder and follow to know when to hold cash and take advantage of the watchlist of stocks for different investment purposes that you may position in, as the market decline create new opportunity. To register and become a member send Yes or stocks to the phone numbers below. The number of stocks on our watch list has increased due to the prolonged correction. Take advantage of this service to buy right and sell right.

The session’s downturn was due to continued selloffs in medium and high cap stocks like Nigerian Breweries, Guaranty Trust Bank, Zenith Bank, Access Bank, UBA, Forte Oil, Dangote Sugar and Nahco that further impacted negatively on the NSE’s Year-to-Date return now at 12.54%. Loss in market capitalisation within the period dropped to N1.4tr, or 10.27%.

Bearish Sectoral Performance
Sectoral performance for the day was largely bearish, except for the NSE Consumer Goods index that closed higher, just as market breadth was negative with decliners outpacing advancers in the ratio of 31:14 to continue five day of bearish transition.

Market activities in volume and value terms were up 9.47% and 34.29% respectively as 137.63m shares changed hands for N1.36bn, from the previous day’s 137.63m units valued at N1.36bn.
Transactions for the day were boosted by trading in financial service stocks like: Guaranty Trust Bank, UBA, Diamond Bank, Access Bank and Zenith Bank, which witnessed increased trading to top the day’s activity chart.

The best performing stocks for the day were Law Union and Nestle Nigeria that topped the advancers’ table, with 10% and 9.6% gain respectively to close at N0.55 and N1,485 per share, purely on low-price attraction. On the flip side, Dangote Sugar and Nacho were the worst, losing 10% each to close at N14.40 and N3.60 on market forces.

Market Outlook
We expect the market to continue its volatility as bargain hunters take advantage of the low-price regime, in the midst of continued selloff and political risk, especially as primaries kick off any moment from now and economic data on August inflation report expected.

Meanwhile, investors are looking forward to Q3 earnings reports so as to rebalance their portfolios and watch the political space, while analysing the actual numbers released has given basic insights into companies’ earnings power that are likely to drive prices and determine the market valuation.
Investors should review their positions in line with investment goals, strength of the company’s numbers and act as events unfold in the global and domestic environment.

However, we would like to reiterate our advice that investors should go for equities with intrinsic value,
We advise investors to allow numbers guide their decisions while repositioning in any stock, especially now that stock prices remain volatile amidst mixed company, economic and market fundamental.

https://investdata.com.ng/2018/09/continued-decline-in-ngse-index-reveal-new-attractiveness-ahead-of-q3-reports/

Investdata Daily Sentiment Reports

NSEASI buy 2% sell 98% volume index 1.08 MFI 32.31
Access buy 67% sell 33% volume index 4.45 MFI 26.27
Afrprud buy 0% volume index 0.92 MFI 54.26
Aiico buy 30% sell 70% volume index 1.29 MFI 65.22
CIleasing buy � volume index 2.82 MFI 42.36
Dangote sugar buy 0% MFI 48.07
Diamond buy 10% sell 90% MFI 36.74
Eterna buy 0% MFI 71.71
ETI buy 0% volume index 3.49 MFI 79.26
Fbnh buy 13% sell 87% volume index 2.17 MFI 21.42
Fcmb buy 0% volume index 1.04 MFI 43.65
Fidelity buy 0% volume index 1.25 MFI 41.50
Fmn buy 0% MFI 72.56
FO buy � volume index 0.83 MFI 28.29
GT buy � volume index 1.21 MFI 21.84
Hony flour buy 0% volume index 1.18 MFI 34.95
Jaiz buy 0% volume index 0.92 MFI 50.94
Japaul buy 50% sell 50% volume index 1.87 MFI 50.60
Lasaco buy 0% MFI 58.15
Mben buy 0% MFI 30.36
Nem buy 0% MFI 47.92
Nestle buy � volume index 3.86 MFI 78.25
Skye buy � volume index 1.00 MFI 54.46
Sovereins buy � volume index 1.21 MFI 45.66
Sterling buy 100 volume index 1.98 MFI 53.37
Transcorp buy 0% volume index 2.17 MFI 63.51
Uba buy 17% sell 83% MFI 15.65
Ucap buy � volume index 0.79 MFI 47.84
Vitafoam buy � volume index 10.22 MFI 6.18
Wema buy � MFI 32.21
Zenith

http://investdataltd..com/2018/09/investdata-daily-sentiment-reports_13.html

PASSIVE INVESTMENT

Passive investment is a buy-and-hold strategy which gears towards maximizing returns by minimizing buying and selling. The goal of this strategy is to build wealth gradually.

Passive investment means buying a security with the intention to own the stock for a long term. Unlike active investment, passive investors do not seek to profit from short-term price fluctuations or market timing. The objective of passive investment strategy is that the market will post positive returns over time.

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https://investdataltd..com/2018/09/passive-investment.html?m=1

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Investdata Daily Sentiment Reports

NSEASI buy 22% sell 78% volume index 0.77 MFI 18.93
Access buy 22% sell 78% MFI 20.85
CIleasing buy � MFI 46.27
Dangote Cement buy 0% volume index 2.55
Dangote flour buy � volume index 1.17 MFI 43.50
Diamond buy 57% sell 43% MFI 37.28
Fbnh buy 67% sell 33% volume index 0.74 MFI 24.03
Fcmb buy � MFI 41.54
GT buy 75% sell 25% volume index 2.18 MFI 28.99
Hony flour buy 0% volume index 2.15 MFI 33.43
Japaul buy 0% volume index 0.97 MFI 33.73
Lasaco buy � volume index 2.15 MFI 67.49
M&B buy � volume index 0.90 MFI 77.39
Nem buy 80% sell 20% MFI 29.78
Nestle buy 96% sell 4% volume index 2.86 MFI 62.28
Oando buy 75% sell 25% volume index 0.79 MFI 58.22
Skye buy � volume index 2.95 MFI 57.55
Sovereins buy 0% MFI 48.08
Transcorp buy 0% volume index 0.74 MFI 64.26
Uba buy 40% sell 60% MFI 32.53
Ubn buy � volume index 1.08 MFI 56.86
Unity buy � volume index 0.70 MFI 87.49
Wapco buy 0% volume index 0.76 MFI 32.38
Zenith buy 0% volume index 1.56 MFI 17.78

http://investdataltd..com/2018/09/investdata-daily-sentiment-report_14.html

Adeosun, Nigeria’s Finance Minister Resigns- Daily Trust

Nigeria’s Daily Trust, on Friday morning reported that the country’s Finance Minister, Mrs. Kemi Adeosun resigned her appointment, after several months of seeming protection by the Federal Government over allegations that she forged her National Youth Service Corp (NYSC) discharge certificate.
The report quoted sources close to the Minister as saying the minister feels that her position is becoming untenable and is hurting President Muhammadu Buhari in the run up to the 2019 election

https://investdata.com.ng/2018/09/adeosun-nigerias-finance-minister-resigns-daily-trust/

Breaking: Nigeria’s Inflation Records First Rise At 11.23%, After 18-Monthly Decline

Nigeria’s National Bureau of Statistics (NBS), on Friday released its latest Consumer Price Index (CPI) report, showing that inflation began its first Year-on-Year rise in August, after 18 consecutive months of decline.
Inflation for the month of August rose by 11.23%, up 0.09% from 11.14% in July, with food inflation expectedly the culprit, after galloping 13.16% upward from 12.85%; while core inflation slowed down from 10.2% in July, to 10% last month.

According to NBS, “the percentage change in the average composite CPI for the twelve months period ending August 2018 over the average of the CPI for the previous twelve months period was 13.55%, showing 0.4% point from 13.95% recorded in July 2018.”
Month-on-Month, inflation dropped slightly from 1.13% in July 2018, to 1.05%; while MoM growth in food sub-index rose to 1.42%, from 1.4%, with the growth spiked by increases in potatoes, yam and other tubers; bread and cereals, fish, vegetables, fruits, oil & fat and meat.

Urban inflation index stood at 11.67%, slightly above 11.66% in July; falling to 1.0% MoM, from 1.23%; just as rural inflation climbed by 10.84% YoY, from 10.83%; at a time it dropped MoM from 1.18% in July to 0.96%.
On a state-by-state basis, the NBS report shows that inflation was more intense in Yobe, north-east Nigeria, where it grew by 12.9%; followed by the nation’s commercial and financial hub- Lagos, where inflation jumped 12.64% up; and Enugu, capital of the old Eastern Region, where it notched 12.52% YoY.

Three states with the lowest inflation rate for August were: Kwara, which recorded 8.25% growth; Borno, also in the north-east, 9.88%; and Benue, Nigeria’s fabled food basket recorded 10.11%.
MoM, inflation grew fastest in Plateau, where it stood at 1.96%; followed by Lagos, 1.73%; and neighbouring Ogun State, 1.58%; while it was slowest Kwara, where it recorded a deceleration at -0.09%. Abia recorded a MoM inflation growth of 0.37% in August; following Delta with 0.53%.

Food inflation in the month under review, was at its peak in Lagos which recorded 15.79%; followed by the Federal Capital Territory, Abuja, 14.99%; and Ebonyi, 14.83%. Kano recorded the slowest rise at 10.64%; ahead of Akwa Ibom, 11.02%; and Borno, 11.03%.
MoM basis, Ebonyi recorded the highest rise in food inflation at 2.71%; ahead of Lagos again with 2.57%; and Katsina, 2.49%; while Abia reported the slowest growth at 0.25%; followed by Delta’s 0.27%.

Pix Credit: Reuters/Akintunde Akinleye, August 23, 2017: Yankaba market in Kano, northwest Nigeria

https://investdata.com.ng/2018/09/breaking-nigerias-inflation-records-first-rise-at-11-23-after-18-monthly-decline/

Sustained Bear-Run: NGSE Stocks As Juicy Options For Robust Returns

Market Update for September 13, 2018
The system and politically induced selloffs continued on the Nigerian Stock Exchange Thursday as the benchmark All Share index closed lower to consolidate the seventh straight session of down market. The situation seems to have provided opportunities for penny stocks to rally and dominate the top gainers’ table in recent times.

The prolonged downturn has made trading and investing uninteresting as many players sit on the fence to watch and read the market situation so as to know when it will likely turnaround in the short-term, if the government and its economic managers take steps to ameliorate the whole system that brought about this prevailing situation.

Meanwhile, the NSE All-Share index opened the day on a downside in the morning which was sustained in the mid-morning to afternoon to breakdown the 32,000 level to test another support level at 31,938.59 basis points support level. This was the session’s intraday lows from its highs of 32,321.64bps before closing the day lower at 32,023.23bps on a low traded volume.
Notwithstanding, the prevailing market situation many companies’ fundamentals remain intact and attractive, but identifying when to buy is however what matters now which technical analysis will do for you. The market is preparing to produce another set of billionaires in 2019 and beyond, that is why you should go for Investdata Consulting’s July 28, 2018 Stock Trading Workshop HOME STUDY PACK. These are audio-visual materials you can play to view the live class on your phone and laptop to help you know when to jump into the market and specific stocks, or stay out. For your Study Pack, call or send YES to the phone numbers below.

Thursday’s market technicals were negative with high sell sentiment on relatively low traded volume and negative market breadth as revealed by Investdata’s Daily Sentiment Report, showing a ‘sell’ position of 78% and ‘buy’ volume at 22%. Volume index was 0.77 of the day’s total transactions.
Momentum behind the day’s market performance was weakened further, as shown in the money flow index at 18.93bps, down sharply from previous day’s 32.31bps, indicating that funds are seriously exiting the market to worsen the liquidity crisis already affecting market fundamentals.

Index and Market Cap
The composite NSE Index on Thursday shed 270.56bps, closing at 32,022.23bps, after opening at 32,292.17bps, representing a 0.84% decline, just as market capitalisation shed another N98.78bn to close at N11.69tr from N11.79tr, representing 0.84% value loss.

However, this is the time to join Investdata Buy & Sell Signal setup, where you can look over our shoulder and follow to know when to hold cash and take advantage of the watchlist of stocks for different investment purposes that you can position in for maximum gains in the coming weeks and months given that the lingering market decline has and continues to create new entry opportunities. To become a member, send: YES or STOCKS to the phone numbers below. The number of stocks on our watch list has increased due to the prolonged correction. Take advantage of this service to BUY and SELL right.

Thursday’s downturn resulted from losses suffered by medium and high cap stocks like: Nestle, Nigerian Breweries, Conoil, CCNN, Lafarge Africa, Zenith Bank, Access Bank, Forte Oil and FBNH, among others. The decline further impacted negatively on the NSE’s Year-to-Date return, now at 16.41%, while market capitalization for same period has lost N1.91tr, or 14.18% from the year’s opening value.

Bearish Sectoral Performance
The sectors maintained bearish posture as all indices closed red, just as market breadth was negative with decliners outnumbering advancers in the ratio of 26:9, continuing the seven sessions of bear transition.
Market activities in volume and value terms were down 29.71% and 46.46% respectively, after 173.55m shares worth N3.71bn were traded, compared to previous day’s 246.91m units valued at N6.93bn, largely driven by financial services stocks.

Skye Bank and Unity Bank were the best performing stocks, topping the advancers’ table after chalking 9.8% and 9.0% respectively to close at N0.67 and N0.85 each respectively, purely on their low-price sentiment. On the flip side, Lafarge Africa and Conoil were the worst performing, shedding 10% and 9.9% of their opening value respectively to close at N20.70and N21.90 on market trend.

Market Outlook
We expect the market to continue in this direction on Friday, being the week’s last trading session, until policy statement is made with new economic strategies to stimulate an economy that is on a slowdown, rather than just looking at the rising oil price at the international markets to expand the nation’s debt profile. The ongoing volatility is likely to persist as bargain hunters take advantage of the low-price regime, in the midst of continued selloffs and political risk, especially as shadow elections by political parties kick off any moment from now. We also expect the National Bureau of Statistics (NBS) to publish the inflation data for August on Friday.
Meanwhile, investors are looking forward to Q3 earnings reports so as to rebalance their portfolios and watch the political space. Meanwhile, analysing the actual numbers released has given basic insights into company earnings that are likely to drive prices and determine market valuation.

Investors should review their positions in line with investment goals, vis-à-vis strength of company numbers and act as events unfold in the global and domestic environment.
However, we would like to reiterate our advice that investors should go for equities with intrinsic value,
We advise investors to allow numbers guide their decisions while repositioning in any stock, especially now that stock prices remain volatile amidst mixed company, economic and market fundamental.

Attention
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https://investdata.com.ng/2018/09/sustained-bear-run-offers-ngse-stocks-as-juicy-options-for-robust-returns/

Corporate Actions As Of Week Ended Sept 14, 2018

https://investdata.com.ng/2018/09/corporate-actions-as-of-week-ended-sept-14-2018/#more

Cautious Trading Ahead, As Stocks Hit 52-week lows Amidst Thickening Political Clouds

Market Update for the week ended Sept 14 and Outlook for Sept 17-21

As we have mentioned earlier, Nigeria’s equity market in the danger zone, after breaking down the 35,000 psychological line, losing over 50% of the gain recorded in 2017, with more of the listed companies hitting lower lows to create opportunities for bargain hunting. Emerging numbers reveal that more of blue-chip stocks having stronger fundamentals are hitting their 52-week. They include: Guaranty Trust Bank, Zenith Bank, Nigerian Breweries, Dangote Cement, Foret Oil, UACN, UBA, Access Bank, Fidelity Bank, UBN and Lafarge Africa, among others in the week under review before the seeming rebound on Friday.
This situation may likely not be sustained as it has created room for short-term speculative movements due to the dwindling economic indices, the latest of which was the inflation data for August. The data released on Friday by the National Bureau of Statistics (NBS) indicates a reversal of the downward trend in growth rate with 18 consecutive months of decline. Consumer Price Index inched up from July’s 11.14% to 11.23%, at a time supposedly the onset of the harvest season. Add this to the political tension across the land, made worse by the lack of a fundamental driver to boost investors sentiment until after the February 2019 presidential election. We expected the current weak performance to continue as liquidity in the market remains low.
Investdata has consistently monitored the underlying breadth levels of the Nigeria stock market to look for divergence with price. The NSE index is currently trading well into more oversold territory (more than 1 standard deviation below its 100-day moving average). The composite index’s weekly advance/decline line is NOT oversold, however, the week’s A/D line has moved up to neutral levels above zero at 50.85. Even with index oversold, neutral breadth means there could still be more room to run lower before we would expect upside reversal to occur. RSI (14) is currently at oversold region at 22.97 which is the lowest in the past five years.

NSEASI Weekly Time Frame
Investdata tracks fundamental breadth levels, market sentiment and others for you and gives you the heads up when things start to diverge. This type of analysis is available for Investdata ‘Buy and Sell Signal Setup’ member. where you can look over our shoulders and follow to know when to hold cash, or take advantage of the watchlist of stocks for different investment purposes that you can position in for maximum gains in the coming weeks and months. This is given that the lingering market decline has and continues to create new entry opportunities. To become a member, send: YES or STOCKS to the phone numbers below. The number of stocks on our watch list has increased due to the prolonged market correction. Take advantage of this service to BUY and SELL right.
Stock markets around the world had a mixed sentiment during the week, despite the seemingly reduced tension arising from the trade war following fresh negotiations between China and the U.S. Also, there is the relative calm that has returned to Turkey as its central bank hiked rates to 24% from 17.75% in a bid to checkmate inflationary pressures which impacted positively on its currency for the period. Within the week, the Bank of England and European Central Bank held rates at 0.75% and 0.00% respectively. Crude oil price rallied to four-month high, hitting $80 due to sanctions on Iran and the flood affecting production in the U.S.
Back home, negative sentiments persisted as the composite NSE All-Share index recorded its seventh consecutive sessions of decline, due to last minute selloffs by hot money and investors, amidst the political tension. This is especially with unpredictable party primaries kicking off, just as next Saturday’s Osun State governorship election expected to foreshadow what could happen in 2019, just as that of neighbouring Ekiti some months ago. Sentiment report for the week, showed ‘sell’ volume of 81%, leaving ‘Buy’ position at 19%, while volume index of total transaction stood at 0.61. Reasons for this increased sell pressure is the lack of a fundamental driver in September knowing that Q3 earnings season will be in October. By that time it’s expected that the capital project expenditure that will have direct impact on the economy, if the expected 2018 budget implementation is cashed backed for project execution. This is just as electoral spending would have commenced and would trickle down, especially given the attractiveness of the market at current equity prices, with most stocks highly undervalued.
The energy behind the week’s performance remained weak, despite the slight improvement in volume traded, as reflected in the money flow index at 22.80 points from previous week’s 31.08points. This is an indication that funds are exiting the market, supporting the argument that there is low liquidity in the market, despite the bargain hunters’ induced rally on Friday. During the week also, the share price of Honeywell Flourmill, Access Bank and UBA were adjusted for dividend recommended by their directors, while the suspension of RT Briscoe was lifted, following the submission of its belated earnings reports, including the audited full year 2017 and 2018 half year unaudited accounts.

Equity Indicators Last Week
The NSE ASI suffered a further decline to consolidate the three straight weeks of downturn with the index breaking down the psychological line of 32,000 basis points’ mark to test the 31,938.59bps, from a high of 34,014.49bps closing lower. The index shed 1,710.32bps, closing at 32,327.57bps from an opening figure of 34,034.91bps, which represented a 5.02% decline on a slightly higher traded volume, compared to previous week. Market capitalisation dropped by 5.02%, closing at N11.8tr, from the previous N12.43tr, due to huge losses suffered by bellwether stocks that witnessed high selloff during the period under review.
Top performing stocks for the period were kobo equities that dominated the advancers table especially the second-tier banks and insurance companies, following the possibility of another round of mergers and acquisitions (M&As). A recent pronouncement by the sector’s primary regulator- the National Insurance Commission (NAICOM), giving October 1, 2018 as deadline for consolidation. Some aggrieved shareholder groups have however obtained an injunction from the Federal High Court in Lagos to compel NAICOM to extend the recapitalization deadline to December 31, 2018. This is to allow these companies meet the new capital base. Investors should trade this insurance stocks with caution at this point to avoid being trapped, especially knowing that some may not have successfully recapitalized before the deadline.
Meanwhile, the NSEASI’s year-to-date negative returns worsened further to 15.47%, just as market capitalisation yielded negative returns of N1.86tr, or 13.23% below the year’s opening value.

Bearish Market Breadth
Market breadth remained negative as decliners outweighed advancers in the ratio of 58:13, amidst hefty selloffs among highly capitalized stocks.
The market recorded four down markets during the week. The index started the week on a negative note, losing 1.26%, which was sustained till Thursday after shedding 3.5% at midweek which is the highest daily loss since the prolonged correction started late January, before Friday’s rebound with 0.95% gain, resulting to 5.02% loss for the week, worse than that of previous week.
All sectoral indexes for the period closed red, led by NSE Industrial goods losing 7.6%, followed by Insurance and consumer goods with 5.4% and 5.02% respectively. NSE AseM index was flat.
Market activities for the period were up in volume and value by 7.64% and 41.67% respectively to 960.94m shares worth N18.53bn, from previous week’s 892.73m units valued at N13.08bn.
Law Union & Rock Insurance and Unity Bank were the best performing stocks, chalking 18.52% and 17.72% respectively, to close at N0.64 and N0.93 each, due to low attraction and market forces. The worst performing were CCNN and Universal Insurance with 26.86% and 24.24% slowdown respectively to close at N22.60 and N0.25 each on profit taking and market trend.

Market Outlook
We expect a mixed performance for the market in the new week, as investors continue to trade cautiously in the short-term despite seeming rebound of blue chips stocks after touching their 52 weeks low amidst continued selloff. However, we believe investors can take advantage of the current low prices of stocks with strong fundamentals in order to reap medium-to-long term benefits. Stage by stage buying is advised as inflation figure for August had reversed up and investors are expected interprets and take action in the new week.
There could be repositioning on the strength of earnings in the midst of unfolding events in the political environment. Investors should review their positions in line with their investment goals and take action as events unfolds in the global and domestic environment.
However, we would like to reiterate our advice that investors should go for equities with intrinsic value, ahead of end of quarter which will ushered in another earnings season, ahead of Q3 interim dividend paying equities in October/ November due to the auditing process of their financials for Q3.
We advise investors to allow numbers guide their decisions while repositioning in any stock, especially now that stock prices remain volatile amidst improving company, economic and market fundamentals.

ATTENTION
The difference between you and others who are not aware of what I am sharing with you is ACTION.

Ambrose Omordion
CRO|Investdata Consulting Ltd
info@investdataonline.com
ambrose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467
https://investdata.com.ng/2018/09/cautious-trading-ahead-as-stocks-hit-52-week-lows-amidst-thickening-political-clouds/#more

Investdata Price & Earnings Tracking for Week Ended Sept 14, 2018

https://investdata.com.ng/2018/09/investdata-price-earnings-tracking-for-week-ended-sept-14-2018/#more

STAGNATION

Stagnation is a situation that occurs within an economy when total output is either declining, flat or rising slightly.

In stock market, stagnation is a period of low volume and inactive trading on a securities or the doldrums resulting from retarded economic growth. Though different from a recession where all three of these factors exhibit a steep decline. Simply put, stagnation is an absence of market booms or highs.

Investdata Academy
http://investdataltd..com/2018/09/stagnation.html

Investdata Weekly Sentiment Report

NSEASI buy 19% sell 81% MFI 22.80
Access buy 19% sell 81% MFI 16.74
Afrprud buy 24% sell 76% MFI 87.47
Aiico buy 17% sell 83% volume index 0.87 MFI 66.52
Cadbury buy 0% MFI 24.87
Caverton buy 0% MFI 47.06
CCNN buy 0% MFI 28.36
CIleasing buy � volume index 0.70 MFI 92.89
Conoil buy 0% volume index 0.72 Continsure buy 14% sell 86% MFI 61.09
Custodian buy 0% volume index 2.01 MFI 65.44
Cutix buy � volume index 1.43 MFI 55.05
Dangote Cement buy 0% volume index 4.36 MFI 25.26
Dangote flour buy 0% MFI 26.44
Dangote sugar buy 0% MFI 63.56
Diamond buy 70% sell 30% volume index 1.11 MFI 52.42
Eterna buy 0% MFI 71.81
ETI buy 0% volume index 1.66 MFI 28.59
Fbnh buy 22% sell 78% MFI 39.35
Fcmb buy 50% sell 50% MFI 12.18
Fidelity buy 59% sell 41% MFI 45.51
Fmn buy 0% MFI 31.35
FO buy 0% volume index 0.80 MFI 27.92
GT buy 92% sell 8% volume index 1.43 MFI 27.64
Hmarkins buy 0% MFI 91.71
Hony flour buy 48% sell 52% MFI 33.37
Jaiz buy 75% sell 25% MFI 38.95
Japaul buy 25% sell 75% MFI 47.54
Lasaco buy 67% sell 33% MFI 27.53
Lawunion buy � volume index 1.17 MFI 64.16
Learn buy � volume index 1.46 MFI 44.74
Linkass buy 0% MFI 32.80
Lvstk buy 0% MFI 31.64
M&B buy 11% sell 89% volume index 0.70 MFI 65.57
Mben buy 0% MFI 42.76
Nahco buy 0% MFI 21.04
Nascon buy 0% MFI 60.87
Neimeth buy 0% volume index 0.97 MFI 36.21
Nem buy 45% sell 55% MFI 90.42
Nestle buy 21% sell 79% volume index 1.77 MFI 54.19
Oando buy 30% sell 70% MFI 29.02
Presco buy 0% MFI 69.11
Regalins buy 50% sell 50% MFI 30.01
Royalex buy 0% MFI 37.37
Seplat buy � MFI 14.77
Skye buy � volume index 1.10 MFI 51.97
Sovereins buy 50% sell 50% MFI 39.36
Sterling buy � MFI 31.40
Transcorp buy � volume index 0.84 MFI 19.55
Uacn buy 0% MFI 16.81
Uba buy 44% sell 56% MFI 13.03
Ubn buy 0% MFI 50.37
Ucap buy 27% sell 73% MFI 73.53
Unilever buy 0% MFI 34.46
Uniondac buy 75% sell 25% volume index 0.75 MFI 75.17
Unity buy � MFI 41.98
Verita buy 0% MFI 24.60
Vitafoam buy � volume index 2.91 MFI 51.89
Wapco buy 0% MFI 42.87
Wapic buy 17% sell 83% 74.46
Wema buy 71% sell 29% MFI 26.68
Zenith buy 43% sell 57% volume index 0.81 MFI 23.95

https://investdataltd..com/2018/09/investdata-weekly-sentiment-report_17.html?m=1

Investdata Daily Sentiment Report

SEASI buy 0% volume index 0.72 MFI 16.04
Access buy � volume index 2.19 MFI 23.87
Afrprud buy 0% volume index 1.27 MFI 40.64
Aiico buy 86% sell 14% MFI 55.70
Diamond buy 62% sell 38% MFI 33.18
Fbnh buy 50% sell 50% volume index 0.73 MFI 30.21
Fcmb buy 0% MFI 38.11
Fidelity buy � MFI 46.08
GT buy 0% volume index 1.54 MFI 39.87
Japaul buy � MFI 35.77
Oando buy 0% MFI 55.10
Skye buy � volume index 2.11 MFI 68.34
Sovereins buy � MFI 49.54
Transcorp buy � MFI 63.98
Uacn buy 0% volume index 8.99 MFI 5.03
Uba buy 0% MFI 26.93
Ucap buy 0% volume index 0.98 MFI 46.03
Uniondac buy � MFI 76.01
Unity buy 0% volume index 1.08 MFI 75.07
Wema buy 0% MFI 19.34
Zenith buy 50% sell 50% MFI 32.61

http://investdataltd..com/2018/09/investdata-daily-sentiment-report_18.html

How to Simply Manage a Long Bear Market

Bear market is brute hit on the stock market. It is just like the way a locked on torpodeo hits a ship. Fortunately, bear markets tend to be much shorter than bull markets except in some rare instances. Like year of election which depends on the country. if you have been following my trend and got any of my materials, you will be properly diversified, you can get through without no/much damage.

On the brighter side, bear markets can provide opportunities to boost your portfolio and lay the groundwork for more long-term wealth-building. Here are 3 practical ways to make bear markets very bear-able (and profitable

*1.Reduce/Stop Your Stake On Bad Stocks:* Bear markets may be tough for good stocks, but they’re brutal to bad stocks. When bad stocks go down, they can keep falling and give you an opportunity to profit when they decline further.

*2.Be Patient:* A bear market shouldn’t make you sweat. Good stocks come out of bear markets, and they’re usually ready for the subsequent bull market. So don’t be so quick to get out of a stock. Just keep monitoring the company for their sales growth, profits and so on. But, if the company looks fine, then hang on.

*3.Follow trend and Acquire Knowledge:* This is very important because it will help you making decisions regarding either selling or buying of stocks. This can be done by getting materials, attending seminars, trainings.

Happy Trading,
Ambrose Omordion

PS: since nothing is new under the sun and In my quest to ensure that you get what you want in the stock market despite all the odds, I have done a *comprehensive Stock Trading and investing toolkit for the rest of 2018* that will help you make decisions now and in the future to come. Call 08028164085,08032055467 or send an email to ambroseconsultants@yahoo.com
https://investdataltd..com/2018/09/how-to-simply-manage-long-bear-market.html?m=1

Investdata Daily Sentiment Report

NSEASI buy 86% sell 14% volume index 0.85 MFI 32.83
Aiico buy � MFI 57.24
Dangote sugar buy � volume index 1.19 MFI 55.54
Fbnh buy � MFI 38.55
Fcmb buy � volume index 0.76 MFI 65.22
Fidelity buy 0% volume index 1.06 MFI 51.80
Fmn buy 0% volume index 0.78 MFI 36.75
GT buy � MFI 39.74
Hony flour buy 18% sell 82% volume index 0.83 MFI 78.21
Jaiz buy 0% volume index 1.77 MFI 43.04
Japaul buy � volume index 1.09 MFI 30.71
Lasaco buy � volume index 0.81 MFI 78.84
Linkass buy � volume index 1.06 MFI 17.22
Nascon buy 60% sell 40% volume index 6.90
Oando buy � volume index 8.16 MFI 75.57
PZ buy 0% volume index 2.10 MFI 15.29
Regalins buy � MFI 21.93
Skye buy � MFI 78.54
Sovereins buy � MFI 43.21
Stanbic buy � MFI 73.43
Transcorp buy � volume index 1.06 MFI 64.52
Uacn buy � volume index 1.21 MFI 7.34
Uba buy 25% sell 75% MFI 39.79
Ubn buy � volume index 1.78 MFI 55.34
Ucap buy 0% volume index 1.11 MFI 45.84
Wapic buy 0% MFI 63.86
Wema buy 0% MFI 49.38
Zenith buy � volume index 1.50 MFI 45.17

http://investdataltd..com/2018/09/investdata-daily-sentiment-report_20.html

Tracker: Stocks With Robust Margin Of Safety On Nigerian Bourse

As noted by Investdata Consulting over time, the lingering flight to safety driven primarily by foreign investors, as left many stocks on the Nigerian bourse significantly selling at a huge discount to their intrinsic/book value.

It is a well-known fact that value investing is as old at the stock market, and margin of safety in equity investment helps investors buy value, while at the same time protecting them from poor decisions and a market downturn.
Value investing has capital preservation as its number one rule. It requires that investors look at companies with low market Price to Earnings and Price to Book ratios.

It requires that investors analyze the financial statements of target companies to identify and understand if there are hidden values, or assets that are potentially unknown to the market which when noticed will attract due attention.

The simple interpretation of margin of safety is buying a stock at a discount to its current market price. These are stocks selling below their Book or Intrinsic value.
Every investor wants to buy cheap stocks with value and potential to appreciate depending on risk appetite, and effectively mean paying Kobo for a Naira stocks.
Every good trader wants to buy low and sell high,
thereby maximizing his/her profit margin or returns on investment.

Note that speculating is an integral part of the stock market at any given time. Speculation is when you believe, for example that Fidelity Bank would offer a worthwhile interim dividend when it releases its audited financials for half year ended June 30, 2018 and you take position. If the directors propose the dividend and the market is happy with it, its price rallies and you make robust returns, but if not, you leak your wound, cut your loss and move.

We have therefore put together in the table above stocks that are selling at a discount and have strong fundamentals and good prospects.

https://investdata.com.ng/2018/09/investdata-tracker-stocks-with-robust-margin-of-safety-on-nigerian-bourse/

AfDB Boss, Adesina Woos Canadian Investors With Africa’s Huge Opportunities

Dr. Akinwunmi Adesina, President of the African Development Bank (AfDB), on Wednesday in Toronto, urged Canadian investors to take advantage of the enormous opportunities available across the African continent.
Adesina who spoke at a meeting with 80 leading representatives of the Canada-Africa Chamber of Commerce, urged them to “be part of the action and seize investment opportunities on the continent.”

He also used the opportunity to promote AfDB’s Africa Investment Forum (AIF) holding between November 7 and 9, 2018, in Johannesburg, South Africa.
“Canada must not be missing at Africa’s investment table. It is time to change the lens through which Africa is perceived and to make clear distinctions between perceived and real risks,” he said.
A statement by the bank explained that the AIF will bring together global private capital and investment funds, sovereign wealth funds and the private sector, for what is primarily being billed as a transactional marketplace to bridge Africa’s $68bn to $170bn infrastructure gap.

The Toronto meeting also featured a discussion about investment and blended finance options in Africa involving panelists such as: Stella Kilonzo, Senior Director of the Africa Investment Forum; and Timothy Turner, Chief Risk Officer at the AfDB Group. Others were: Garreth Bloor, Managing Director, Glenheim Venture Capital; Chris Clubb, Managing Director, Convergence Blended Finance; Hakan Gunay, Senior Director of Finance, Skypower Global, were among panelists discussing i.
Addressing participants, AfDB’s Executive Director, David Stevenson used the gathering that the Forum was “about deals and getting things done and not a talk shop.”

Adesina, who is leading a high-level delegation alongside Stevenson, Executive Director for Canada, China, South Korea, Kuwait and Turkey, also met with Reeta Roy, President/CEO of the MasterCard Foundation, to discuss synergies for supporting youth employment and access to finance for women entrepreneurs in Africa.
Earlier in Ottawa on Tuesday, Adesina announced the conclusion of a landmark $1bn synthetic securitization transaction at Canada’s National Press Theatre, with the Mariner Investment Group and Africa50.
Although securitization is routine for commercial banks, it is cutting-edge for development finance institutions.

The AfDB is the first Multi-Lateral Development Bank (MDB) to use this game-changing innovative financing mechanism. Room2Run, structured as an impact investment, will enable the Bank to increase its lending to spur economic development and social progress across the continent.
“Africa has the most promise, the greatest natural resources, and the world’s youngest population. But we also have the world’s most persistent infrastructure deficits. The African Development Bank has the strategy to address these infrastructure finance gaps—and Room2Run gives us the capacity to make it happen,” Adesina said.

At Global Affairs Canada (GAC), Adesina exchanged views with Diane Jacovella, Deputy Minister of International Development and Leslie E. Norton, Assistant Deputy Minister, Sub-Saharan Africa Branch at Global Affairs. The two parties explored areas for further partnership between the Bank and Canada, including support for the Bank’s Affirmative Finance Action for Women in Africa (AFAWA) initiative.
In a keynote address at the GAC in Ottawa on Africa’s economic situation, President, Adesina said, “Some ask the question whether the Africa rising story is over. Well I don’t think Africa was ever down.”
He told partners and employees of Global Affairs: “The continent is not different from other parts of the world that pass-through episodes of growth spurts and dips. The narrative on Africa should not be determined outside of Africa. Africa must control its own narrative,” he noted.
The event was hosted by David Morisson, Canada’s Deputy Minister of Foreign Affairs.

Later, meeting with African ambassadors, the AfDB President commended Canada’s leadership role in helping advance Africa’s economic agenda. He acknowledged the ambassadors’ collective commitment and support in promoting Africa as an investment destination of choice.
He wrapped up the Ottawa stop with a bilateral meeting with Jim Carr, Canada’s Minister of Internal Trade Diversification, where he again made the case for increased investment on the continent and urged Canada to look to Africa as a new trade destination in line with its diversification agenda.

https://investdata.com.ng/2018/09/afdb-boss-adesina-woos-canadian-investors-to-africas-huge-opportunities/#more

Zenith Bank: Reduced Loan Exposure, Amidst Rising NPL Ratio

UBA: Stronger Earnings Capacity To Support Price, Dividend
Post Views: 42
Coy: Zenith Bank Plc
Rating: Buy
Current Market Price:
Year High: N34.20
Year Low: N19.60
Fair Value: N40.89
By: Jeariogbe Tunde Segun (Equity Analyst)

Key Financial Ratios
• Interim Dividend for the period is 30 kobo, up from the previous 25 kobo paid in the corresponding period of 2017.
• Payout Ratio is therefore same as 11.52% (H1-2017: 10.42%)
• Sustainable Growth rate is currently estimated at 10.05%
• Non-Performing Loan ratio in the review period was 5.51%, compared to the 3.28% posted in the 2017 full year financial performance, indicating the need to watch its asset quality.
• The five-year average Dividend Yield of Zenith Bank Plc has been estimated at 10%, above the industry average of 2.21%
• Similarly, the five-year dividend growth rate is currently estimated at 11.03%, lower than the estimated industry average of 25.77%
• Five-year average effective tax rate is currently estimated at 15.11%

Company Figures
• Gross Earnings for the half-year 2018 came 15.31% below that of the corresponding period of 2017. Please note that N322.201 billion was reported as Gross Earnings from the previous N380.440 billion.
• 23.19% same as N74.709 billion of the Gross Earnings was reported as Interest Expense for the period as against N123.29 billion same as 32.41% that was reported last H1 financials
• Nevertheless, Profit before Tax (PBT) reported for the period was N107.35 billion, which is 16.46% above the N92.18 billion achieved in the corresponding period of 2018.
• Profit after Tax (PAT) equally came higher than that of last year by 8.52%, moving from N75.317 billion to N81.737 billion
• Total Assets reported for the period stood at N5,256.46 billion compared to the N4,927.36 billion in 2017.
• Total Liabilities stood 7.82% above same quarter in 2017.
• Total deposits from customers for the six months was estimated at N3,165.95 billion, a marginal growth of 6.42% above the N2,972.93 billion reported in 2017.
• Perhaps due to the bank’s conservative approach, the amount offered in Loans and Advances reduced by 14.36%, when compared with the reported value in 2017.
• Due to marginal difference between the Total Assets and Total Liabilities for the two periods compared in this report, Net Assets estimated for the reported period only inched above that of the similar quarter of 2017 by 2%.
• See table below for details:

Volatility Ratios
• Although the estimated beta value for Zenith Bank shares stood fairly below the industry average, but well above the Market Beta. This signifies its liquidity and patronage by the investing public
• Although almost irrelevant, since we analyze a financial institution whose major business is to collect deposit (mostly reported under liability), we estimate Debt/Equity ratio as 106.74% well above the industry average of 25.30%


Profitability Ratios
• Interest Expense to Gross Earnings is presently estimated at 23.19%, which is 28.45% lower than the 32.41% estimated in the 2017 half year.
• PBT margin stood at 33.32% as against 24.23% last year, this is a 37.51% improvement.
• Similarly, Profit margin looked up against last year’s figure. We have estimated a 25.37% margin from Gross Earnings as against the previous estimate of 19.89%
• Return on Average Equity is now 11.36%, compared to the 10.47% returns achieved in the first six months of 2017.
• Return on Average Assets only differs marginally by 1.73%, moving from 1.53% to 1.55%.

Efficiency Ratio
• Gross Earnings to Total Assets ratio is estimated at 6.13%, which is 20.61% lower than the 2017 estimate.
• Similarly, Gross Earnings to Equity is now 44.78% as against the 52.89% estimated in the 2017 half-year statistics.
• Financial Leverage is 7.31x as against 6.85x, this is an estimate of the number of times the Total Assets replicates the Equity. In other words, the ratio got better.
• It was also established that 59.17% of the Total Deposit went to customers in the form of Loan and Advances during the period under estimate, 19.53% lower than the 75.53% given out during the first six months of 2017
• Meanwhile, Loan and Advances is same as 35.64% of the Total Assets this is 19.72% lower than the 44.39% of last half year. This shows a controlled/reduced risk compared to 2017.


Investment Ratios
• Just as in the company report above, since share outstanding remained constant during the two periods under consideration, the estimated amount earned per unit of Zenith Bank shares is N2.60, 8.52% better than the N2.40 of prior half-year.
• Due to Foreign currency translation differences for foreign operations, the Total Comprehensive Income per share for the period is N2.64 as against N2.24 last half year, this is 17.74% difference.
• P/E Ratio for the period is 2.30x as against 2.50x estimated last year.
• The Book Value of Zenith Bank is N22.92 fairly same as N22.91 last year. Please note that this almost same as the current market price of Zenith Bank shares (N20.05). Kindly understand the difference between the price when this result was released and when the analysis is being done
• OpEx Margin was controlled against the similar quarter of 2017 as the ratio adjust from the 32.41% to 23.19%.

Valuation
Our attempt to place a fair value on Zenith Bank took us through several valuation methods after which we settled for the constant perpetual dividend growth rate. We do not expect galloping growth in dividend, since this has experienced appreciable growth in few years prior, so we make use of 2.758% as our growth rate. To arrive at this value, we estimated five years dividend growth rate at 11.03%, and we make use of the average. It was also assumed that the final dividend will be around N2.50, and discounted at 10%. On this strength, we have placed a fair value of N40.89 per share.

https://investdata.com.ng/2018/09/zenith-bank-reduced-loan-exposure-amidst-rising-npl-ratio/#more

MTN: ‘CBN Not Against Investors Who Repatriate Capital Properly’

The Central Bank of Nigeria (CBN) said it is still engaged in discussions with officials of telecommunications giant-MTN Nigeria and the four banks recently sanctioned for allegedly involved in capital repatriation on the basis of irregular Certificates of Capital Importation (CCI).

In a statement on Wednesday by Isaac Okorafor, its Director of Corporate Communications, the CBN said the sanction was not punish investors who legitimately repatriate returns on their investment, or capital.
The move, it added, is also not “designed to restrict access to investor returns,” while urging legitimate investors to take advantage of the enormous investment opportunities in Nigeria.
Instead, he assured “all investors that the integrity of the CCI regime remains sacrosanct and there shall be no retroactive application of foreign exchange rules and regulations.”

The statement is against the backdrop of the recently concluded 30-month investigation showing that MTN Nigeria fraudulently repatriated $8.13bn out of the country over a 10-year period using irregular CCIs.
While MTN Nigeria has been mandated to refund the forex in exchange for the Naira value at current rates; the accounts of Standard Chartered Bank, Stanbic IBTC Bank, Citibank and Diamond Bank with the CBN were debited to the tune of N5.65bn, being sanction for accomplices in the process.

MTN and the banks have continued to insist on their innocence in the alleged irregularities.
The four banks and MTN, the statement continued, “are engaging the CBN and have provided additional information which is currently being reviewed with a view to arriving at an equitable resolution.

In the statement titled: “On Recent FOREX Sanctions,” the CBN acknowledged public interest over the sanctions, restating its resolve to continue welcoming foreign investments and investors, stressing that recent innovations and FX reforms like “the introduction of the NAFEX window… designed to simplify foreign exchange regulations.”
The statement further assured that delegating issuance of CCIs “to commercial and merchant banks some years ago was done to instill confidence in the investor community and encourage the flow of foreign direct and portfolio investments into the Nigerian economy.

https://investdata.com.ng/2018/09/mtn-cbn-not-against-investors-who-repatriate-capital-properly/#more

Lagos Slips To 4th Position On BudgIT’s 2018 Sustainability Index

Post Views: 121
• As Rivers, Delta, Bayelsa Top
• Amidst Dismal Outing By Cross River, Osun, Ekiti

Civil society and social advocacy group, BudgIT says seven states emerged champions in the 2018 editional of its Fiscal sustainability index, due to their robust revenue profile and manageable recurrent expenditure obligation.

A statement by Ayomide Faleye, Communications Lead at BudgIT listed the states as: Rivers, Bayelsa, Delta, Akwa Ibom, Lagos, Edo and Ondo.
While analysing the fiscal condition of the 36 states in the country, it noted a general improvement in their fiscal accounts on the back of increasing oil revenue, while urging the various sub-national governments to embrace a high level of transparency and accountability. It also challenged them to “develop workable economic plans, take haircuts — especially on overheads — expand their internally generated revenue (IGR) base, and cut down on debt accumulation without a concrete repayment plan.”
The report singled out Lagos, which dropped from second to fourth place on the index, despite its economic advantage and internally-generated revenue (IGR), which when compared to many of its peers, is relatively high.

“Her IGR as at the end of 2016 was N287bn, from 2015 levels of N268.2bn. In 2018, the State is planning a Recurrent expenditure spending of N305bn or N25bn monthly. With its IGR not expected to grow significantly above N300bn, while its share of revenue from FAAC in the first six months of 2017 was N6.6bn, Lagos’ overheads cost and debt is unusually elevated, weighing down on its revenue and its performance on the 2018 fiscal sustainability index,” BudgIT added
It commended states with low expenditure outlay and sizeable debt like Anambra, Enugu and Katsina, as well as Abia which had tightened its recurrent projection, providing it with the opportunity to leap on the sustainability rankings.

BudgIT however lamented the situation of Osun State, which it warned is not out of the woods, ranking a distant 35 out of the 36 states, even as it prepares for elections to produce a successor to Governor Rauf Aregbesola on Saturday, September 22, 2018.
The report, nonetheless, expressed extreme concern about the poor fiscal management thinking in Cross River, which made news when it set bogus plan of N1.3tr in its 2018 budget, a situation that severely weighed it down on the index.

“The Research concludes that States need to look beyond rhetorics and commit to a reduction in its operating costs, including significantly slashing its unreasonable overheads bill while freeing up more spending for social and economic infrastructure.
“States also need to link future borrowing to sustainable projects, which can pay back the capital cost of its current loans and improve the overall income profile of the state,” BudgIT added, urging economic planners at state levels to improve tax collection efficiencies and realign budgeting with statewide plans.

It called for significant investment to improve the overall economic performance at the state level, a situation that will invariably “create jobs that feed into states’ internally generated revenue. Improve spending is also critical for value-added tax revenue. Export Opportunities in aquaculture, agriculture, manufacturing, trade, logistics and tourism abound across states, but it seems states lack the rigour and foresight to explore them.”

https://investdata.com.ng/2018/09/lagos-slips-to-4th-position-on-budgits-2018-sustainability-index/#more

NGSE Index Falls Slower, As Investors Rebalance Portfolios On Q3 Financials

Market Update for September 19, 2018

The nation’s equity market had a mixed session at the midweek to close marginally lower, on a positive sentiment, despite the seeming profit booking in insurance stocks that had recently rallied as a result of the expected merger and acquisition ahead of the recapitalization in the sector.
The Nigerian Stock Exchange (NSE) Index at the opening of the session slipped downward slowly until mid-morning and into the midday, before consolidating by afternoon after touching intraday lows of 32,269.75 basis points from the highs of 32,392.93bps. It thereafter closed the session at 32,375.12bps on a low traded volume.

The mixed corporate earnings and low equity prices are factors attracting bargain hunters to the market despite the economic slowdown, and ahead of the Q3 earnings season. Traders always take advantage of price disconnection from fundamentals, especially when it’s driven by fear or confidence. The prevailing situation in our market today is traceable to the twin effects of political fear and the ensuing dwindling economic activities. These fears: political and other worries have been priced into the stocks making them highly undervalued, especially the blue-chips. There are hopes that the strong and growing fundamentals of these companies will support their prices before and after the 2019 general elections, all things being equal.
Gradually, we are seeing a convergence in MACD that may support short rally in this downturn. The performance gap between the composite index and technical indicators are now close to rebound points since it looks like the index is resisting further decline.
On Wednesday, we mentioned emerging market economics benefiting from forced trade reform in China and others.

In short, all of the countries that have been short-changed on their global trade competitiveness because of China’s weak currency policies, should benefit in a world where China is held to a standard of fair trade. Emerging stock markets are expected to witness big move with the idea that these countries may get a better crack at global demand, I suspect these stock markets could be in for a big rebound.
Back home, despite the prevailing market situation, many company fundamentals remain intact and attractive, but identifying when to buy is however what matters now which technical analysis will do for you. The market is preparing to produce another set of billionaires in 2019 and beyond, that is why you should go for Investdata Consulting’s July 28, 2018 Stock Trading Workshop HOME STUDY PACK. These are audio-visual materials you can play to view the live class on your phone and laptop to help you know when to jump into the market and specific stocks, or stay out. For your Study Pack, call or send ‘YES’ to the phone numbers below.

Market technicals for the day were positive and mixed with low volume and positive market breadth as revealed by Investdata’s Daily Sentiment Report, showing a ‘buy’ position of 86% and ‘sell’ volume at 14%. Volume index was 0.85 of the day’s total transactions.
The momentum behind the day’s market performance was further strengthened despite the prevailing weak situation, as shown in the money flow index at 32.83bps, up sharply from previous day’s 25.37bps, indicating that funds are entering some stocks and the market gradually in the midst of low liquidity.

Index and Market Cap
At the end of the midweek trading session, the NSEAll share index shed marginal 5.88bps, closing at 32, 375.12bps, after opening at 32,381bps, representing a 0.02% slide, just as market capitalisation dropped by N2.14bn to close flat at N11.82tr, which represented 0.02% value loss.
Notwithstanding, this is the time to join Investdata Buy & Sell Signal setup, where you can look over our shoulder and follow to know when to hold cash and take advantage of the watchlist of stocks for different investment purposes that you can position in for maximum gains in the coming weeks and months given that the lingering market decline has and continues to create new entry opportunities. To become a member, send: YES or STOCKS to the phone numbers below. The number of stocks on our watch list has increased due to the prolonged correction. Take advantage of this service to BUY and SELL right.
Midweek downturn was impacted by losses suffered by low, medium and high cap stocks like, International Brewery, PZ Cussons, UBA, FBNH, AXA Mansard and Hallmark Insurance, among others. This impacted slightly on the NSE’s Year-to-Date return, following which the loss inched to 15.34%, while market capitalization for same period is down N1.79 trillion, or 13.15% from the year’s opening value.

Mixed Sectoral Performance
The sectors indexes were largely bullish for the day except for NSE Consumers and Insurance that closed lower, as the weak purchasing power tells on consumer goods sector and uncertainties as insurance operators begin the jostle for funds to meet the new three-tiered minimum capital bases prescribed by the industry’s primary regulator- the National Insurance Commission (NAICOM).
Market breadth remain positive for the session with advancers outweighing decliners in the ratio of 24:13, even as market activities in volume and value terms were down 39.95% and 62.32% respectively, to 190.35m shares worth N1.77bn, from previous day’s 267.81m units valued at N2.65bn. This was largely driven by financial services, oil and conglomerates stocks like: Redstar Express, Zenith Bank, Oando, Transcorp and Fidelity Bank
Forte Oil and CCNN were the best performing stocks, topping the advancers’ table after gaining 10% and 9.7% respectively to close at N22 and N24.80 each respectively, purely on their low-price sentiment and expected better Q3 numbers.
On the flip side, AXA Mansard Insurance and PZ were the worst performing, shedding 9.6% and 7.4% of their opening value respectively to close at N2.06and N12.5 on market forces and bearish trend.

Market Outlook
We expect the market to continue in this direction over the next few days, ahead end of the quarterly rally that will usher in Q3 earning season in October, in the midst of rising oil prices, as well as the expected new policy statement and reform to stimulate the economy again. The ongoing volatility is likely to persist as bargain hunters take advantage of the low-price regime, in the midst of continued selloffs and political risk, especially as shadow elections by political parties kick off any moment from now.

Meanwhile, investors are looking forward to Q3 earnings reports so as to rebalance their portfolios and watch the political space. Meanwhile, analysing the actual numbers released has given basic insights into company earnings that are likely to drive prices and determine market valuation.
Investors should review their positions in line with investment goals, vis-à-vis strength of company numbers and act as events unfold in the global and domestic environment.
However, we would like to reiterate our advice that investors should go for equities with intrinsic value,
We advise investors to allow numbers guide their decisions while repositioning in any stock, especially now that stock prices remain volatile amidst mixed company, economic and market fundamental.

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/2018/09/ngse-index-falls-slower-as-investors-rebalance-portfolios-on-q3-financials/

Investdata Daily Sentiment Report

NSEASI buy � volume index 1.01 MFI 43.21
Access buy � volume index 1.46 MFI 52.17
ETI buy � MFI 18.26
Fbnh buy 100 volume index 2.03 MFI 50.93
Fidelity buy � volume index 1.47 MFI 48.90
Allum buy � volume index 26.59 MFI 98.04
Fmn buy 0% MFI 34.49
FO buy � volume index 1.81 MFI 65.24
GT buy 0% volume index 0.70 MFI 47.94
Hony flour buy 0% volume index 1.54 MFI 28.88
Jaiz buy 0% volume index 1.00 MFI 47.78
Japaul buy 0% MFI 34.66
Nascon buy � volume index 0.98
Nem buy 0% volume index 2.84 MFI 81.59
Oando buy � MFI 74.05
Okomu buy � volume index 3.55 MFI 69.41
Regalins buy � MFI 57.27
Skye buy � volume index 0.76 MFI 84.56
Transcorp buy � volume index 0.98 MFI 62.32
Uacn buy � volume index 3.00 MFI 23.63
Uba buy � MFI 47.57
Ucap buy � volume index 0.73 MFI 46.00
Wema buy � volume index 2.36 MFI 56.20
Zenith buy 50% sell 50% volume index 1.25 MFI 59.81

http://investdataltd..com/2018/09/investdata-daily-sentiment-report_21.html

BEAR HUG

A bear hug is a term often used in risk arbitrage. It is an hostile takeover attempt in which the acquirer offers an exceptionally large premium over the market value of the acquiree's shares so as to squeeze or hug the target into acceptance.

Explaining further, it is an offer made by a company to buy the shares of a company or the shares of a high net worth shareholder(s) for a much higher price per share than what the company is worth in the market.
It is usually made when there is doubt that the target company's or shareholders are willing to sell.

Investdata Academy
http://investdataltd..com/2018/09/bear-hug.html

GODFATHER OFFER

A godfather offer is an offer that cannot be refused. It is typically a tender offer pitched so high that the management of the target company is unable to discourage its shareholders from accepting it. Therefore, if the target company's management refuses the offer, the shareholders may initiate lawsuits or other form of revolt against the target company for not performing their fiduciary duty of looking out for the best interests of the shareholders.
This expression comes from the famous line - "make him an offer he can't refuse " featured in the godfather trilogy which is now one of the most celebrated quotations from an American film.

Investdata Academy
http://investdataltd..com/2018/09/godfather-offer.html

Indicators Slowdown As Investors Gamble On Options Ahead MPC Meeting

Market Update for September 20, 2018

Trading on the Nigerian Stock Exchange (NSE) was very strong as the benchmark All-Share index closed positive, reversing Wednesday’s down market on improved demand for blue chip stocks ahead of next week meeting of the Monetary Policy Committee (MPC) meeting.

The day started with a slight gap down with the index working its way slightly higher by midday and consolidating in the afternoon. Within the period, market technicals improved, touching intraday high of 32,480.89 basis points from a low of 32,330.18bps on a high volume to finish the day at 32,480.89bpbs.
The market further resisted decline on Thursday, which made MACD convergence to support short term rally in this downturn. The performance gap between the composite NSE index, technical indicators shortened to signal an imminent rebound, all things being equal, and outcome of next week’s MPC meeting being favorable to the market and economy.

Notwithstanding the prevailing market condition, many company fundamentals remain intact and attractive, but identifying when to buy is what matters now. This is what technical analysis will do for you. The market is preparing to produce another set of billionaires for 2019 and beyond. That is why you should go for Investdata Consulting’s July 28, 2018 Stock Trading Workshop HOME STUDY PACK. These are audio-visual materials you can play to view the live class on your phone and laptop to help you know when to jump into the market and specific stocks, or stay out. For your Pack, call or send ‘YES’ to the phone numbers below.
Thursday’s market technicals were positive, with high buying pressure on relatively high volume and positive market breadth as revealed by Investdata’s Daily Sentiment Report, showing a ‘buy’ position of 100% and ‘sell’ volume at 0%. Volume index was 1.01 of the day’s total transactions.

Momentum behind the day’s market performance was strengthened, despite the prevailing low liquidity. This was shown in the money flow index at 43.21bps, up sharply from previous day’s 32.83bps, indicating that funds are entering some stocks. This is exactly true of fundamentally sound stocks that had suffered losses before now..

Index and Market Cap
The benchmark index on Thursday gained 105.77bps, closing at 32,480.89bps, after opening at 32,327.59bps, representing a 0.33% growth. Market capitalisation was up by N38.61bn to close at N11.86tr from N11.82tr, representing a 0.33% value gain.
However, this is the time to join Investdata Buy & Sell Signal setup, where you can look over our shoulder and follow to know when to hold cash and take advantage of the watchlist of stocks for different investment purposes that you can position in for maximum gains in the coming weeks and months given that the lingering market decline has and continues to create new entry opportunities. To become a member, send: YES or STOCKS to the phone numbers below. The number of stocks on our watch list has increased due to the prolonged correction. Take advantage of this service to BUY and SELL right.

Thursda’s upturn was impacted by value gain recorded in medium and high cap stocks, like: Lafarge Africa, UBA, Flourmills, Guinness, UACN and Dangote Sugar, among others. This impacted positively on the NSE’s Year-to-Date return, reducing the loss to 15.07%, while market capitalization for same period dropped to N1.75tr, or 12.87% from the year’s opening value.

Mixed Sectoral Performance
The sectors indexes were largely bullish for the day except for the NSE Insurance and Oil/Gas that closed red. The slide in the insurance index may not be out of place, given the uncertainties arising from the jostle by operators for funds that would enable them meet the new three-tiered minimum capital prescribed by the industry’s primary regulator- the National Insurance Commission (NAICOM).

Market breadth remain positive, with advancers outnumbering the decliners in the ratio of 25:15, even as transaction volume and value rose 32.18% and 58.32% respectively, to 225.93m shares worth N2.34m, from previous day’s 190.35m units valued at N1.77bn. This was largely driven by financial services and industrial stocks like: NEM, First Aluminum, Zenith Bank, Access Bank and FBNH.

Lafarge Africa and First Aluminum were the best performing stocks, topping the advancers’ table after chalking 9.90% and 9.7% respectively to close at N22.75 and N0.34 each respectively, purely on their low-price sentiment. On the flip side, Prestige Assurance and Unity Bank were the worst performing, shedding 9.7% and 9.3% of their opening value respectively to close at N0.56 and N0.88 on market forces.

Market Outlook
We expect the market to slow down, this being the last trading day of the week and, ahead of the MPC meeting slated for Monday and Tuesday next week. This will likely be followed by another round of positioning for the quarter-end rally that will usher in the Q3 earning season in October. We are in a season rising oil, expected new policy statement and reform that would stimulate the economy again.
The ongoing volatility is likely to persist as bargain hunters take advantage of the low-price regime, in the midst of continued selloffs and political risk, especially as shadow elections by political parties kick off any moment from now.

Already, investors are looking forward to Q3 earnings reports so as to rebalance their portfolios and watch the political space.
Meanwhile, analysing the actual numbers released has given basic insights into company earnings that are likely to drive prices and determine market valuation.
Investors should review their positions in line with investment goals, vis-à-vis strength of company numbers and act as events unfold in the global and domestic environment.

However, we would like to reiterate our advice that investors should go for equities with intrinsic value.
We advise investors to allow numbers guide their decisions while repositioning in any stock, especially now that stock prices remain volatile amidst mixed company, economic and market fundamentals.

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/2018/09/indicators-slowdown-as-investors-gamble-on-options-ahead-mpc-meeting/#more

CBN Revokes Skye Bank Licence, Directs AMCON To Begin Sale

Apparently tired of injecting scarce critical life-blood over the past two years, the Central Bank of Nigeria (CBN), on Friday revoked the operating licence of troubled Skye Bank Plc.

The move is coming despite the recent renewal of the appointment of the Mohammad Ahmad and Tokunbo Abiru-led board and management of the bank for another two years.
It is also coming after the board recently assured investors through the management of the Nigerian Stock Exchange (NSE) that its audited financials for 2016 and 2017 have been presented to the CBN for approval, preparatory to being submitted.
CBN Governor and the Managing Director of the Nigeria Insurance Deposit Corporation (NDIC), Godwin Emefiele, disclosed this on Friday at a media briefing in Lagos.

He also announced the change in the name of Skye Bank to Polaris Bank which takes over the bank.
He said an injection of N786 billion has been made into the bank with the Asset Management Corporation of Nigeria has been directed to commence the sale process of the bank from Monday.

https://investdata.com.ng/2018/09/cbn-revokes-skye-bank-licence-directs-amcon-to-begin-sale/#more

Despite Global Decline, World Bank Says Africa’s Poverty Rate May Remain Double Digit

The World Bank says fewer people are living in extreme poverty around the world today, siting new data indicating that the number of people living on less than $1.90 a day fell during this period by 68m to 736m between 2013 and 2015.
A statement by the bank released on Thursday said the percentage of people living in extreme poverty globally fell to a new low of 10% in 2015 — the latest number available — down from 11% in 2013, reflecting steady but slowing progress.

While noting that the deceleration in global numbers stems mainly from an increasing concentration of extreme poverty in regions where poverty reduction has lagged, it noted the case of Sub-Saharan Africa, “where, under all but the most optimistic scenarios, poverty will remain in double digits by 2030, (due to) absent significant shifts in policy. Slowing declines in poverty also reflect falling commodity prices, conflict, and other economic challenges for developing countries.
The World Bank’s preliminary forecast is that extreme poverty has declined to 8.6 percent in 2018, noting the slowing decline in poverty rates, raising concerns about achieving the goal of ending poverty by 2030 and pointing to the need for increased pro-poor investments, the World Bank finds.

The statement quoted World Bank Group President Jim Yong Kim, as saying: “Over the last 25 years, more than a billion people have lifted themselves out of extreme poverty, and the global poverty rate is now lower than it has ever been in recorded history. This is one of the greatest human achievements of our time.
“But if we are going to end poverty by 2030, we need much more investment, particularly in building human capital, to help promote the inclusive growth it will take to reach the remaining poor. For their sake, we cannot fail,” he added.

The World Bank lamented that despite the tremendous progress in reducing extreme poverty, rates remain stubbornly high in low-income countries and those affected by conflict and political upheaval.
The estimates will be published in “Poverty and Shared Prosperity 2018: Piecing Together the Poverty Puzzle,” a report to be released on End Poverty Day- October 17.
The report lamented that although nearly half of the world’s countries now have poverty rates below 3%, the world as a whole, is not on track to achieve the target of less than 3% of the world living in extreme poverty by 2030.
In the 25 years from 1990 to 2015, the extreme poverty rate dropped an average of a percentage point per year – from nearly 36% to 10%, but the rate dropped only one percentage point in the two years from 2013 to 2015.

The deceleration in global numbers stems mainly from an increasing concentration of extreme poverty in regions where poverty reduction has lagged. A case in point is Sub-Saharan Africa, where, under all but the most optimistic scenarios, poverty will remain in double digits by 2030, absent significant shifts in policy. Slowing declines in poverty also reflect falling commodity prices, conflict, and other economic challenges for developing countries.
Two regions, East Asia and Pacific and Europe and Central Asia, the statement added, have reduced extreme poverty to below 3%; while the Middle East and North Africa region had previously been below 3% in 2013, but conflict in Syria and Yemen raised its poverty rate in 2015.

Meanwhile, Nigeria’s National Bureau of Statistics (NBS), on Thursday announced palsn for a Nigeria Living Standard Survey (NLSS), beginning on September 27.
Statistician General of the Federation and Chief executive of the NBS, Dr. Yemi Kale, announced this at a One Day Stakeholder’s Sensitisation Workshop on NLSS in Keffi, Nasarawa State.
Already, he assured, “all the background work, all the plenary exercise have been done and we are informing people so they can ask their questions and help us sensitise the public.

“From next week, trained field officers will be deployed to selected households in enumerated areas across the country over the next 12 months.”
Data to be collected by the field officers, he said, will include “information on consumption, expenditure, assets and general living conditions.”
According to him, the accurate provision of this information will ensure that indicators that reflect the true living condition of households in the country are produced, thereby providing government and its partners the best possible information to work with, in molding policies and programmes to ensure the best chance of success.

Kale said a lot of quality assurance measures and checks had been put in place to ensure good results from the field.
“Like all NBS household-based surveys, this round of NLSS, will for the first time be carried out using electronic means of data collection.
For him: “It is from this exercise that we derive statistically sound indicators for measuring poverty and inequality in Nigeria.
“It also serves as a major source of data for the 2030 Sustainable Development Agenda for tracking Nigeria’s attainment or otherwise, of the Sustainable Development Goals.
“The subject of poverty is very critical to a developing country like Nigeria, most, if not all of government effort is geared towards ensuring that citizens are able to attain a decent standard of living,” Kale stressed further.

https://investdata.com.ng/2018/09/despite-global-decline-world-bank-says-africas-poverty-rate-may-remain-double-digit/#more

Investdata Weekly Sentiment Report

NSEASI buy 60% sell 40% volume index 0.76 MFI 13.06
Access buy � volume index 1.40 MFI 15.23
Afrprud buy � MFI 59.69
Aglev buy � volume index 1.18 MFI 1.93
Aiico buy 64% MFI 61.57
Berger buy � volume index 0.80 MFI 7.88
Cadbury buy 0% MFI 19.19
Caverton buy 68% sell 32% MFI 46.04
CCNN buy 50% sell 50% MFI 28.39
CIleasing buy 47% sell 53% volume index 0.96 MFI 93.34
Continsure buy � MFI 60.96
Custodian buy � MFI 64.60
Cutix buy 25% sell 75% volume index 1.25 MFI 57.62
Dangote Cement buy 4% sell 96% MFI 19.32
Dangote flour buy 0% MFI 19.12
Dangote sugar buy � MFI 24.92
Diamond buy 0% MFI 45.73
Eterna buy � volume index 1.52 MFI 80.42
ETI buy 0% MFI 27.08
Fbnh buy 75% sell 25% MFI 44.51
Fcmb buy 89% sell 11% MFI 15.69
Fidelity buy 33% sell 67% MFI 43.37
Allum buy � volume index 21.09 MFI 87.66
Fmn buy 57% sell 43% MFI 14.75
FO buy 71% sell 29% volume index 1.28 MFI 26.75
Glaxo buy 0% MFI 23.05
GT buy 56% sell 44% MFI 25.58
Hmarkins buy 0% MFI 91.55
Hony flour buy 33% sell 67% MFI 32.99
Jaiz buy � volume index 2.54 MFI 48.19
Japaul buy 67% sell 33% MFI 37.11
Lasaco buy 0% MFI 25.23
Law buy � MFI 64.51
Linkass buy � volume index 0.99 MFI 25.02
M&B buy � MFI 71.13
Mben buy � MFI 45.32
Nascon buy 40% sell 60% volume index 1.25 MFI 35.35
Nem buy 0% volume index 2.07 MFI 91.12
Nestle buy � volume index 0.79 MFI 48.28
Oando buy 40% sell 60% volume index 1.29 MFI 34.51
Okomu buy 51% sell 49% MFI 36.37
Prestige buy 25% sell 75% MFI 83.11
PZ buy � volume index 0.94 MFI 3.68
Regalins buy � MFI 32.37
Red buy 0% volume index 20.50 MFI 3.48
Seplat buy � volume index 2.50 MFI 31.01
Skye buy � volume index 1.51 MFI 59.43
Sovereins buy � MFI 39.60
Stanbic buy � MFI 13.73
Transcorp buy 100 � MFI 19.87
Uacp buy � volume index 2.03 MFI 36.30
Uacn buy � volume index 1.96 MFI 32.35
Uba buy � volume index 0.73 MFI 18.35
Ubn buy � MFI 27.94
Ucap buy � MFI 33.55
Unity buy 81% sell 19% volume index 0.85 MFI 49.05
Wapco buy 78% sell 22% MFI 36.71
Wapic buy � volume index 0.86 MFI 76.08
Wema buy 17% sell 83% volume index 1.83 MFI 23.62
Zenith buy 75% sell 25% volume index 1.08 MFI 31.52

https://investdataltd..com/2018/09/investdata-weekly-sentiment-report_24.html?m=1

Skye Bank Goes Under In Week Its Share Price Surged 15% On NGSE

For those who traded shares of Skye Bank Plc during the week ended Friday, September 21, 2018, it was indeed a lucky break, at least, with the benefits of hinge sight, given what we now know.
For it was in the evening of that day, the Central Bank of Nigeria (CBN announced a revocation of Skye Bank’s license, several hours after trading on the Nigerian Stock Exchange (NSE) had closed and the unlucky shareholders and those investors that sought to make quick gains from the shares could not approach the exit door, window, or even the roof-top.

While investors are left to count their loss, once again, depositors have been protected by the Nigeria Deposit Insurance Corporation (NDIC), which announced the licensing of Polaris Bank Limited, as bridge bank to cherry-pick the assets of Skye Bank and “some of the liabilities.”
CBN Governor, Godwin Emefiele, said the bank’s shareholders failed to recapitalise and ensure it continued as a going concern, and not willing to continue supplying it oxygen, or stop the haemorhage, Skye just had to be allowed to die. Its board, management and staff has since been transferred to midwife the new Polaris Bank with a N786bn war-chest that has further bloated the toxic assets already weighing down the Asset Management Corporation of Nigeria (AMCON).

Investors who started counting last week’s 14.93% capital appreciation by the shares of Skye Bank, in just one week, would perhaps be licking their wounds, as an obviously shocked NSE management, late Friday night hurriedly issued a statement suspending trading on the bank’s shares when trading on Monday.
By that time, anyway, there would be no financial institution in Nigeria, so called, given its adult baptism and rechristening as Polaris Bank Limited, a name under which it would carry on business from that Monday.
According to data by the NSE, by the CBN action, a total N10.687bn will be wiped off the bourse’s market capitalization on Monday morning, being the value of Skye Bank’s shares listed for trading.
Investors traded 2,931,537 units of Skye Bank in 47 deals on Friday, when it closed at 77 kobo per share, after gaining 4.05%.

This brought total transactions on the bank’s shares for the week to 52,486,693 shares worth N34.239m in 362 deals, making it the second most traded stock in the banking sub-sector after Guaranty Trust Bank’s 255.645m units worth N8.313bn.
The bank recently raised investors’ hope on August 14, 2018, when in a regulatory filing with the NSE, its management promised to submit its backlog of financial statements covering 2016, 2017 and half-year 2018.

Investdata New had envisaged at the time that the bank was most likely to restate its 2015 audited financials which could come worse than loss after tax of N40.726bn, published by the previous board and management accounts, as against the previous N18.717bn profit.

Skye’s problems started after it used short-term funds to buy local lender Mainstreet Bank in 2014, for which it failed to raise fresh cash. It had been in talks with shareholders and investors to raise capital but suspended plans after weak oil prices hit the capital markets and drove foreign investors away.
The CBN designated it as one of Nigeria’s systemically important banks due to the size of total deposits held after it acquired Mainstreet Bank. This meant it had to increase its capital ratio to 16 percent, the industry average.

https://investdata.com.ng/2018/09/skye-bank-goes-under-in-week-its-shares-price-surged-15-on-ngse/#more