zik4ever:
Mergers, acquisitions likely for banks
Six commercial banks are likely to seek mergers and acquisitions in the New Year – no thanks to the shock created in their assets and balance sheet sizes in the face of declining oil prices.

Crude oil prices have fallen to as low as $37.11 per barrel from over $110 per barrel a year ago. This has adversely affected banks’ oil assets.

Besides, the level of non-performing loans in the sector has risen.

The Managing Director, Sterling Bank Plc, Yemi Adeola, who disclosed this yesterday said he envisaged possible shrinking in the number of local banks in the New Year. There are already moves suggesting that trend, he said, but did not name any bank.

Speaking at an end-of-year media briefing in Lagos, the bank chief said two international banks were discussing with local lenders on possible acquisition. He said the year has been a challenging one for the economy and the banking sector, adding that banks are now finding ways to wriggle out of these challenges, including a tough regulatory environment.



He said oil price could also come further down, and called for a more efficient tax system, blocking of revenue leakages and focus on areas neglected in the past – “from agric to solid minerals and other commodities we have in abundance. We also need to support Small and Medium Enterprises to create opportunities that will create jobs,” he said.

Adeola said the Nigerian banking industry was the most regulated sector in the country thereby affecting banks’ performance.

“To say that everything will be rosy in 2016 will be deceiving ourselves. I think if the opportunities arise for banks to pursue further consolidation, we could see two or three. I also know that one or two international banks are interested in pursuing acquisitions in Nigeria and they are indeed having discussions already,” he said.

“So, you could see a combination of one or two international banks taking over one or two Nigerian banks or merging with them. And nothing also stops two or three Nigerian banks having merger discussions in 2016.”

Adeola said Sterling Bank is ready for either a merger or an acquisition, provided it will add value to stakeholders. “For us at Sterling Bank, we are always open to mergers or acquisitions. We are open to anything that can give us scale. Whether it is a merger or acquisition, we are open, but the synergy must be there. We must see the benefits clearly. Any merger must be one that ensures stakeholders will benefit more; otherwise it will not be worthwhile,” he said.

Adeola added: “We have every cause to remain optimistic in 2016, despite the fact that it is going to be a challenging year for the banking sector. We are determined to keep the momentum going. We first started a merger of five banks, and all the consultants predicted that all the entities will struggle for the next 10 years. It was challenging but we got out of it. Experience has shown globally, that mergers don’t work, especially when you are merging five institutions.”

Adeola said Sterling Bank did first merger in 2006 and ran as a bank from day one, despite the fact that five banks came together. “In 2011, we did another merger with Equitorial Trust Bank (ETB), and was done in record time and you will never see cultural differences. We are one bank, and it means we have perfected the act of acquisitions. Could there be an opportunity to pursue an acquisition again, we will try,” he said.

Adeola said the foreign exchange challenge remained a tough one for banks and the economy. “You can only spend what you have and if our reserves are at $29.4 billion as at December 15, there will barely fund four to five months of import. The options are usually two: to adopt capital control and focus on key sectors. In other words, you determine where you want the forex to go to in order to curb wastages,” he said.

In Adeola’s view, Nigeria cannot sustain capital controls for so long. He said the government does not want the forex to be used for speculative purposes. “But it is a double edged sword. If you adopt capital controls, investors are reluctant to come in, because if they bring their money in at N200 to dollar, they will not be able to know what rate when they are going. So, you shut your door to new money coming in. The other option, is let the naira find its true value. The question is what is the true value for the naira?”

To Adeola, the right thing to do is find the true value of the naira and devalue it from there. “Some will suggest the street value, while others will suggest the Central Bank of Nigeria rate. But it is also not the true value. The true value of the naira is between the CBN rate and the parallel market rate. But there are ways we can find the true value of the naira and devalue to that extent. If people are sure, they are getting true value for their dollars, then the dollars will come down,” he said.

Adeola said Sterling Bank continued to survive in spite of such tough regulations because it plays by the rules. “We do not flout regulations. We keep strictly to regulations. We will continue to face challenges that come our way with maturity. He said the bank desires to be a top six bank, from top 10 currently, and also be a leading consumer banking franchise,” he said.
http://thenationonlineng.net/mergers-acquisitions-likely-for-banks/

truth is good and it is good to be reveal. Fall in oil price really affected all corner of Nigerian economy and investment, that why I said earlier that we should not expect much dividend this financial year.

http://www.punchng.com/naira-devaluation-is-inevitable-economists/ Oyetunji Abioye and Ifeanyi Onuba
Economists and financial analysts say the
devaluation of the naira has become inevitable
in the face of continued economic challenges,
especially the free fall of the naira.
The naira had continued its free fall on
Thursday, crashing to 280 against the United
States dollar at the parallel market, a day after
being sold at N269 against the dollar.
“The CBN needs to be realistic in its strategies
given that the main source (crude oil) of its
forex has continued to wane,” the Head,
Research and Investment Advisory, Afrinvest
West Africa, Mr. Ayodeji Ebo, said.

Chibuking81:
truth is good and it is good to be reveal. Fall in oil price really affected all corner of Nigerian economy and investment, that why I said earlier that we should not expect much dividend this financial year.

Abeg, somebody fit guess the six banks?

9free:


Abeg, somebody fit guess the six banks?

without being told you should know them by their fruits.SUWU first followed by other two unknown for now.

http://www.marketwatch.com/m/quote/clf6 Open $34.87 P/E: N/A
High $35.07 EPS N/A
Low $34.41 Dividend N/A
Shares Out N/A Yield N/A
Market Cap N/A Ex Date N/A
52-Wk High $65.56 52-Wk Low $34.41
MarketWatch News for CLF6
12/17/15 at 2:36 pm ET
Nymex oil ends under $35/bbl, at lowest
settlement since Feb. 2009
12/17/15 at 2:36 pm ET
Jan. oil loses 57 cents, or 1.6%, to settle
at $34.95/bbl on Nymex
12/17/15 at 4:05 am ET
Crude drops below $35 a barrel as
commodity rout continues
12/16/15 at 2:37 pm ET
Jan. oil down $1.83, or 4.9%, to settle at
$35.52/bbl on Nymex
12/16/15 at 2:37 pm ET
Nymex oil settles under $36/bbl, at lowest
since Feb. 2009 http://www.thestar.com.my/business/business-news/2015/12/18/oil-down-second-day-running-on-fresh-supply-build-dollar-spike/?style=biz TOKYO: Crude futures fell in Asian trading on
Friday as fresh signs of inventory building and
the Federal Reserves rate hike this week kept
prices under pressure amid a global glut of oil
that shows no sign of abating.
U.S. crude's West Texas Intermediate (WTI)
futures <CLc1> were down 18 cents at $34.77 a
barrel by 0104 GMT (8.04 a.m. EDT). The
contract fell 1.6 percent to $34.95 a barrel on
Thursday.
Brent <LCOc1> fell by 19 cents to $36.87 a
barrel. It fell 33 cents to $37.06 a barrel on
Thursday.
Both contracts are on track to post a third week
of losses, with U.S. crude down 2.4 percent and
Brent off by 2.6 percent.
WTI is less than 60 cents away from the low
reached during the global financial crisis of
$32.40 in December 2008, while Brent is less
than 70 cents off its nadir of $36.20 the same
month.

Chibuking81:
Where man's treasure lie there lies his interest, without been told, I know that you have a good percentage in Eterna, I like Eterna but as for now I don't have any percent with them, one bad thing about them is that they eat alone, they never declared dividend. I wanted to start taking position in the stock this year, but with current happening in crude oil price, I am patiently waiting for the price of crude oil to bottom out, if possible stable. Iran may start their oil supply by January 2016 and this will push oil price further down, thereby affecting Nigeria economy and the stock exchange market, but if their participation is been perfectly handle by OPEC, at least economy will be improving gradually.

If Eterna does not pay dividend this time around,
we will bundle its board to the Mountain Of Fire church for compulsory deliverance.

zendi:
If Eterna does not pay dividend this time around,
we will bundle its board to the Mountain Of Fire church for compulsory deliverance.

They will pay a surprise dividend.it is the stock to watch in 2016 as per price appreciation.

Tigerbrands on full bid at last.
The dumpers have finally emptied their sacks.

locodemy:


without being told you should know them by their fruits.SUWU first followed by other two unknown for now.

I know only of Unity, Sterling, Wema, and Heritage. Abeg, tell me the others

most stocks will be on full bid starting from monday.Any transactions done on the active stocks of the moment will never be regreted because there will be serious bergain till the end of the month.on the contrary,bears may resurface in the new year.The reason is the nation needs to be addressed on the situation of our currency and oil price.

http://www.marketwatch.com/story/crude-sticks-below-35-a-barrel-amid-relentless-global-glut-2015-12-18

Crude oil prices continued their rout on Friday on reports of additional buildup in U.S. crude stockpiles, fueling worries of a worsening global glut that has already affected prices struggling in the multiyear-lows range.

On the New York Mercantile Exchange, light, sweet crude futures for delivery in January CLF6, -0.60% fell 46 cents, or 1.3%, to $34.49 a barrel.

February Brent crude LCOG6, -0.57% on London’s ICE Futures exchange slid 20 cents, or 0.5%, to 38.86 a barrel.

locodemy:

They will pay a surprise dividend.it is the stock to watch in 2016 as per price appreciation.

they always disappoint, that's why I said they eat alone, because there is always gain at the end of every financial year, but even 5 kobo dividend they will not declare, is it now there is serious economy challenges that they will declare.

locodemy:
most stocks will be on full bid starting from monday.Any transactions done on the active stocks of the moment will never be regreted because there will be serious bergain till the end of the month.on the contrary,bears may resurface in the new year.The reason is the nation needs to be addressed on the situation of our currency and oil price.

yes, people selling to raise money for Xmas shopping should be done by now.

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Price: =N=35,000 Per Month with Additional Service Charge.

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Price: =N=35,000 Per Month with Additional Service Charge.

Accessibility:
- Less than 2mins drive to Maryland
- Less than 10mins drive to GRA ikeja and UK embassy collection centre
- 5mins drive to Town planing ilupeju
- less than a minute drive to Lagos State university satellite campus
- Quick links to Lagos airport, Gbagada, lagos island, Ojota, and ikorodu road.

For Enquiries Call: 09092777877

Do you think you are at the right room?person wey his house dey catch fire no dey pursue rat.we are talking of stocks and how to make money and u dey show us rooms wey 419 people dey play draft.

zendi:
Tigerbrands on full bid at last.
The dumpers have finally emptied their sacks.

Hope the offers don't show up once the price reaches N1.30. People are only looking for 10% nowadays.

http://af.reuters.com/article/investingNews/idAFKBN0U11Y620151218?feedType=RSS&feedName=investingNews&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+reuters%2FAFRICAbusinessNews+%28News+%2F+AFRICA+%2F+Business+News%29&&rpc=401 LAGOS (Reuters) - Nigerian stocks hit a three-
year low on Friday, tracking a fall in global
markets as investors digested the impact of this
week's U.S. rate hike.
The stock market, which has the second-biggest
weighting after Kuwait on the MSCI frontier
market index, shed 1.54 percent at the close,
dropping to levels last reached in December
2012. The index fell to 26,537 points.
Investors turned cautious on Friday about what a
stronger dollar and weak commodity prices could
mean for the world economy following
Wednesday's 0.25 percent rate hike, the first by
the U.S. Federal Reserve since 2006.
Analysts said the current bearish run in Nigerian
equities will perhaps be sustained for a while in
response to the improving pull of U.S.
investments.
"The Fed’s decision to hike rate will indeed
impact on asset prices across emerging and
frontier markets," said Robert Omotunde an
analyst with Lagos-based Afrinvest Securities.
He noted that "the exit of most foreign investors
in the Nigerian market appears to have been
appropriately priced into stock prices, the
weakening domestic currency moderating
interest rate, poor corporate earnings, shaky
monetary and fiscal policy responses are still
likely impacting Buy-sentiment of most investors,
Omotunde said.
Top decliners include Dangote Cement, which
accounts for a third of total market
capitalisation, shed 3.25 percent, Cadbury
dropped 5 percent, Flour Mills of Nigeria down
4.63 percent, while Guaranty Trust Bank fell 3.59
percent.
(Reporting by Oludare Mayowa; editing by John
Stonestreet)

DANGSUGAR OR FLOURMILL

Raider76:


Hope the offers don't show up once the price reaches N1.30. People are only looking for 10% nowadays.

This stock has just gotten back its strong fundamental - the name of Dangote. And it had been badly battered.
The offers will be coming, but demand will be overpowering it. Almost 10m units were sold today alone.
It has only about 1.5b shares in circulation. The rest are passed back and forth between Tigerbrands and Dangote.
It may not rise steeply (which stock will these days?), but it will be trending up,
barring a general market crash, God forbid.

zendi:
This stock has just gotten back its strong fundamental - the name of Dangote. And it had been badly battered.
The offers will be coming, but demand will be overpowering it. Almost 10m units were sold today alone.
It has only about 1.5b shares in circulation. The rest are passed back and forth between Tigerbrands and Dangote.
It may not rise steeply (which stock will these days?), but it will be trending up,
barring a general market crash, God forbid.

Dangote's name alone run things on any stock. E dey vex me say I no see road enter this train today. I'm interested in only 15% gain.

9free:


Dangote's name alone run things on any stock. E dey vex me say I no see road enter this train today. I'm interested in only 15% gain.

You fit enter on monday when your fellow ten percenters, the ones wey enter at 1.14, go come depress am a bit..

Some good stocks were on full bid today.. couldn't enter

Justcul:
Some good stocks were on full bid today.. couldn't enter

Sorry bro, good stocks like ?

[quote author=GudluckIBB post=41129803]


Sorry bro, good stocks like ?[/quote

like OANDO.Why u dey do like say you no know.i got 500,000 units today at the highest bid #5.73.The stock was not available today and if i wait till monday,that means i will buy at #6.00 and above.The stock is going up the more.selling at #7.00 is not bad.At least #500,000 profit is sure in a short while...........

[quote author=locodemy post=41130524][/quote]

My brother, u think oando will do 7 naira soonest?
Anyway, I wish you all the best!

GudluckIBB:


My brother, u think oando will do 7 naira soonest?
Anyway, I wish you all the best!

i believe in the time i bought it.it has nowhere to go except upwards.#7.00 is certain soonest

locodemy:


i believe in the time i bought it.it has nowhere to go except upwards.#7.00 is certain soonest

I will advicee you to trade with oando with 10 kobo margin, the manipulation on that stock has no rival

With the nnpc news today, I expected oando to open at premarket with 5 percent but it didn't rather it was allowed to settle on its own

Always put ur ears on the ground incase of shares reconstruction, so that what happened to unity bank will not repeat it self with oando,


As for me, I won't buy oando anything above 5 naira, and I will sell at 5.50 max

Chibuking81:
on Eterna, I know that Agbalowomeri use to have great interest in Eterna, but since he obtain his PhD in NSE, is like his interest has declined, BITL Ihedioramma is not true?.

i dont understand . but why is ubcap now ucap? .

PETERiCHY:
Time to buy OANDO because subsidy will soon die a natural death.

*ThE OcToPuS*

chibuking81 is this peterichy ? or has another person take the name from him .

Bnsitl abeg wetin una tink about entering UACN now? Any PROBABLE reason not to enter?