NPL Ratio of Nigerian Banks Soars From 2.9% To 14.8% in 3 Years

One revelation of the Central Bank of Nigeria (CBN) audited report for the year ended December 31, 2017, is the worsening Non-Performing Loans (risk assets) level in the nation’s banking industry.
From just 2.9% in 2014, an improvement from previous year’s 3.2%, non-performing loans as a percentage of total industry credit has weakened to 14.8% at the end of the year under review.
From 2.9% in 2014, the level, according to the CBN data ballooned to 4.9% the following year and then soared by almost 300% to 12.8% in 2016 and further to 14.8% last year.

Although tolerable NPL level remains 5%, there banks that reported 17% and even more at the end of 2017.
To accentuate the level of the worry, members of the CBN’s Monetary Policy Committee (MPC) in their personal comments at the first meeting of the year on April 4, variously identified bloating NPL as a notable red flag, especially as it had risen to 16.21% by February 2018. This, they blame for fragility among Nigerian banks, just as the continued delay in passage of the 2018 Appropriation Bill by the National Assembly.

Edward Lamtek Adamu, a CBN deputy governor and committee member, agreed with Adebayo Adelabu, now retired Deputy Governor, that NPL growth among banks is assuming worrisome dimension in the aftermath of the 2015 slump in crude oil price, at a time most of the banks are heavily exposed to the upstream segment of the sector.
Bank credit to the private sector, Adebayo noted, remains “exceptionally weak over the last three years on account of constraints imposed by rising NPLs, among other factors.”

The CBN report also showed that industry average CapitalAdequacy Ratio (CAR) fell from 14.8% in 2016, to 10.2% at end-December 2017, while industry average Liquidity Ratio (LR), improved from 43.9% in 2016 to 45.6%, staying above the 30% regulatory minimum by 15.6 percentage points.
At the end of 2017, the number of borrowers on the Credit Risk Management System (CRMS) database at the end of December 2017, has grown by a robust 430.5% from just 147,828 in the corresponding period of 2016 to 784,172.

Of this number, 752,692 were individuals, while 31,480 were corporate borrowers.
Total number of credit facilities reported on the database rose from 516,848 in 2016 to 2,692,403 in 2017, consisting of 2,263,109 and 429,294 facilities granted to individuals and corporates, respectively.
“Thus, the number of borrowers, with outstanding facilities, rose by 1,113 per cent to 1,418,081 in 2017, from 127,374 in 2016. The significant increase also reflected the effect of stricter regulations and enhanced enforcement, thereby improving the transparency and credibility of the overall debt profile in the industry.

Also, the CBN said it intensified supervision of the three existing private credit bureaux (PCBs), with average number of records at 47.2m in 2017, reflecting 0.85% growth over the 46.8m in 2016, attributed to increased compliance, following the passage of the Credit Reporting Act.
Number of borrowers and value of outstanding credit, however, declined from 16.03m and N24.07tr in 2016, respectively, to 15.33m and N23.86tr in 2017, a development that reflected reduced credit activities in the review period

https://investdata.com.ng/2018/08/npl-ratio-of-nigerian-banks-soars-from-2-9-to-14-8-in-3-years/

Nigerian Economy Records $57.3bn Net Fx Inflow In 2017- CBN

The Central Bank of Nigeria (CBN) says net foreign exchange inflow into the Nigerian economy increased by US$20.13bn, or 54.12% in 2017, from US$37.19bn in 2016 to last year’s US$57.32bn.
According to the CBN’s audited financials for the year ended December 31, 2017, published on its website Tuesday, there was a net inflow of US$11.62bn, in contrast to a net outflow of US$2.10bn in 2016.
Meanwhile, aggregate foreign exchange inflow into the Nigerian economy increased by 45% to US$91bn, up from US$62.75bn in the preceding year, with inflows, through the Central Bank of Nigeria (CBN), amounting to US$42.17bn, or 46.3% of the US$21.07bn recorded in 2016.
Inflow from autonomous sources stood at US$48.33bn, or 46.3 and 53.7% of the total.
“A breakdown of the forex inflow, through the CBN, showed that earnings from
crude oil export increased by 1.9 per cent to US$10.37 billion, above the level in 2016,” the CBN noted.

This was attributed to price and output of crude, both of which rose relative to the preceding period, while non-oil component of the inflow, through the CBN, soared by 192.2% to US$31.8bn in 2017, above the level in the preceding year.
Factors responsible were listed to include: increase in forex purchases; government debt proceeds; securities lending cash collateral; and TSA and third-party receipts.

“Further analysis of non-oil inflow, through the CBN, indicated increase in cash swap in respect of BDC, was US$1.92 billion; unutilised funds from foreign exchange transactions, US$1.37bn; returned payments (wired/cash), US$1.15bn; return of unutilised International Money Transfer Organisations funds, US$1.02bn and interest earning on reserves and investment, US$0.33bn, compared with US$48.7m, US$142.1m, US$287.42m, US$94.55m and US$221.05m, respectively, in 2016.
“Swaps and other official receipts, however, fell to US$2.93bn and US$2.48bn, respectively.”
Inflow through autonomous sources rose by 17.1% from the level in 2016, with invisibles amounting to US$46.21bn; non-oil export receipts by banks, US$2.53bn; and external account purchases, US$0.09bn, constituting 94.6, 5.2 and 0.2%, respectively, of the total.

A further breakdown of the invisibles shows that over-the-counter (OTC) purchases and domiciliary account were US$26.38 bn, or 57.1%; and US$19.83bn, or 42.9% respectively.
Of the OTC purchases, while capital importation accounted for US$12.4bn; other OTC purchases stood at US$11.17bn; oil companies, US$1.7bn; and home remittances, US$1.1bn.
Aggregate foreign exchange outflow, from the economy, increased by 31.8% to US$33.68bn, above the US$25.55bnin 2016, just as outflow through the CBN of this amount accounted for 90.7%, while autonomous sources explained the balance.
“Foreign exchange outflow, through the CBN, increased by 31.9% to US$30.55bn, compared with US$23.16bn in the preceding year,” which was attributed, mainly, to
increased intervention by the CBN in the inter-bank and BDC segments of the forex market.

“A breakdown of foreign exchange outflow, through the CBN, indicated that 3rd party MDA transfers, external debt service and drawings on letters of credit, at US$2.68bn, US$0.42bn and US$0.36bn, increased by 27.8, 20.3, and 139.2 per cent, respectively, above the levels in 2016.
“A disaggregation of foreign exchange supply to the market indicated that: inter-bank forwards amounted to US$10.54 billion; inter-bank sales, US$5.6bn; BDC sales, US$4.16bn; and matured swaps contract, US$1.11bn.”

Other official payments rose by 24.1% to US$5.43bn, attributed to increase in miscellaneous and estacode payments of US$2.99bn and US$0.23bn, compared with US$0.21bn and US$0.13bn, respectively, in 2016; just as Joint Venture Company (JVC) cash calls arrears fell by 26.3% to US$2.21bn, below the level of US$3bn in 2016.”
Outflow through autonomous sources in the period under review rose by 30.9%, above the level in 2016, to US$3.13bn, out of which payments for invisibles and import were US$2.54bn and US$0.59bn, respectively.

https://investdata.com.ng/2018/08/nigerian-economy-records-57-3bn-net-fx-inflow-in-2017-cbn/

CBN Publishes 2017 Financials, Nets N70.17bn Income

The Central Bank of Nigeria (CBN), on Tuesday published its audited financials for the year ended December 31, 2017, showing a 29.19% rise in total income, while net operating income declined due to fair value loss on financial instruments.

While total income rose by N489.29bn from N1.675tr in the corresponding full year of 2016, to N2.165tr last year, net operating income decreased by 38.8% to N400.46bn, compared to the N654.87bn in prior year.
Specifically, the report noted that the fair value loss “brought about a reduction of the net income for 2017 to N70.17bn, compared with N104.93bn in 2016.”
In line with the provisions of the Fiscal Responsibility Act 2011, the CBN is to credit 20% of the amount to its retained earnings (reserves) and the balance paid to the Federal Government.

The report also noted a further 35% expansion in the apex bank’s balance sheet in the review period at N29.31tr, helped mainly by growth in External Reserves, Loans and Receivables, holdings of SDR and Quota in the IMF.
The corresponding increase on the liability side, it continued, “resulted mainly from increased CBN issued instruments, increased IMF and other liabilities.”

https://investdata.com.ng/2018/08/cbn-publishes-2017-financials-nets-n70/

Nigerians Transferred N99.3tr Via e-Payment Platforms In 2017, Says CBN

More Nigerians are embracing the electronic cash transfers and payment platforms, as a substitute for besieging bank branches to make deposits or withdrawals, according to figures contained in the Central Bank of Nigeria (CBN) audited report for the year ended December 31, 2017.
The report showed a healthy growth in volume and value of e-payments across various platforms, with total volume soaring by 60% to 1.478bn from just 941.8m in 2016, worth N99.292tr, as against the N71.1tr.

The CBN attributed the rise to increased consumer awareness and confidence in e-payment channels by the apex bank and the various banks as part of the cashless economy initiative started some years ago.
A breakdown of the figure showed that automated teller machines (ATMs) remained the most popular e-payment platform yet, accounting for 800.549m, or 54.15% of total bank transactions; followed by the Nigeria Inter-Bank platform where a total of 370.87m, or 25.08% of total transactions occurred. Point of Sale (PoS) machines as a means of settling transactions followed with 146.257m , or 9.89%; among others.
In value terms however, NIP remained the most attractive, accounting for N56.165tr, representing 56.57% of gross value for the period, ahead of NEFT’s N14.946tr, or 15.05%; Remita pooled N13.529tr or 13.63%. The ATM placed third with N6.437tr, or 6.48%; and NAPS, 4.86tr, representing 5% proportion of total value.

With these embrace of electronic payment channels, the report noted, has also come a 28% increase in number of fraud cases increased at 25,043 in the review period, adding thankfully though that “actual losses declined by 24.0 per cent relative to that of 2016.”
Specifically, while a total of 25,043 cases of fraud, worth N4.034bn were reported, up from 19,531 worth N4.368bn; the value of actual loss was put at N1.631bn, as against N2.196tr in 2016.

The report also reported increased patronage of the Nigerian Security Printing & Minting Plc (NSPM) to meet the banknote needs of the nation’s economy.
Of the 2.674bn pieces of banknotes of various denominations, representing an increase of 28.6% over the level in 2016, all of which the NSPM was engaged to print.
The company delivered 1.944bn pieces, representing 72.7% of the total indent, up from 1.648bn units or 79.3% in 2016, while of an outstanding 325.35m pieces of the N100 centenary commemorative banknotes originally awarded to Swedish firm- the Crane Currency in 2014, 60.15m pieces were delivered by NSPM in 2017 as part of the domestication policy.

https://investdata.com.ng/2018/08/nigerians-transferred-n99-3tr-via-e-payment-platforms-in-2017-says-cbn/

Nigeria Earns N7.317tr Revenue, Records N3.05tr Deficit In 2017

Nigeria’s total federally collected revenue in 2017 rose 30.3% to N7.317tr in 2017, according to the Central Bank of Nigeria (CBN) annual report for the year ended December 31, 2017.

The amount, representing 6.1% of the nation’s Gross Domestic Products (GDP) for the period, was boosted by higher crude oil price, as well as output, helped by sustained peace in the nation’s otherwise restive Niger Delta region. There was also the impact of stronger drive for non-oil revenue, through the Federal Government’s Voluntary Assets and Income Declaration Scheme (VAIDS).

Overall, gross oil revenue amounted to N4.109tr, representing 56.2% of the total and 3.6% of GDP, while non-oil revenue (gross) at N3.207tr, accounted for 43.8% of total
Revenue and 2.5% of GDP.
Within the period however, the federation’s consolidated revenue and expenditure amounted to N8.884tr, or 7.7% of GDP; and N11.938tr, or 10.4% of GDP, respectively.

This resulted “in an overall deficit of N3,053.1 billion (2.7% of GDP),” for the period.
The CBN put the Federal Government’s retained revenue and aggregate expenditure were N4.622tr and N6.896tr, respectively, leading to an estimated deficit of N2.273tr, or 2.0% of GDP, compared with the deficit of N2.675tr, or 2.6% of GDP in 2016.

The deficit, “within the revised WAMZ primary convergence criterion of 3% of GDP. It was financed by 31.8% “of the total financing gap from external sources and 68.2 per cent from domestic sources.”

https://investdata.com.ng/2018/08/nigeria-earns-n7-317tr-revenue-records-n3-05tr-deficit/

Gradually, Investors Take Advantage Of NGSE’s Low Price Regime, Await Q2 GDP Data

Market Update for August 16, 2018
The Nigerian Stock Exchange (NSE) continued bleeding on Thursday, as the free fall of equity prices persisted, owing to factors that we have shared repeatedly on this platform as those militating against the market and the economy. So strong and compelling are these negative influences on the market that investors seem to have forgotten about the strong fundamentals of these companies and the recent interim dividends paid by those in the banking sector. Of particularly note are: Zenith Bank, Guaranty Trust Bank and, capped on Thursday by Stanbic IBTC Holdings offer of N1.00 dividend per share, the highest so far, as contained in its impressive Q2 numbers. Last year, the group paid 50 kobo as interim dividend.
Besides the political tension ahead of the 2019 general elections, data so far published show a slowdown in economic activities, even as the July Consumer Price Index report for July as published by the National Bureau of Statistics (NBS), shows a further move towards single-digit inflation. The decline in July PMI and consumer confidence index was due to the fall in consumer demands which has affected the performance of consumer goods manufacturing companies, as reflected in the half year corporate earnings. These has further depressed the share prices of these companies on the NSE.

As a pointer to the fact that all is not well, the benchmark All-Share index of Nigeria’s stock market as a leading indicator of the economy has suffered a year-to-date decline of 9.48%. This is after it recorded almost 17% jump in January 2018 alone, before the ongoing downtrend that had lasted over seven months.
Economic reports from CBN, like the pool of foreign reserves, money supply, the 4% dip in oil price recently to $70.62 per barrel, among others, have since confirmed the decline. When the oil price drop is combined with the effect of a 7.3% slip in production output to 1.66 million barrels per day in 2018Q2, it only shows that the Federal Government’s revenue projection for 2018 could come under some pressure. This could make further fiscal consolidation a major challenge as the market expects implementation of 2018 budget and electioneering spending to impact the liquidity level in the system.

The NSE benchmark index on Thursday started out sharply on the downside in the morning hours, a situation that was sustained until afternoon, as highly capitalized stocks suffered further decline. It touched a low of 34,603.07 basis points, from its high of 35,069.34bps, as corrective wave extended, despite marginal retracement in the last few minutes, before closing at 34,617.12bps on improved volume. This signals that investors are bailing out for safety to watch events unfold in the short term, ahead of next year’s general elections.

Regardless of this market downtrend, some stocks have remained fundamentally okay. Identifying when to buy is however what 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 through your phone and laptop. This will help you determine 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 Thursday’s session were negative and mixed as volume traded was high and above the recent market average in the midst of negative market breadth and sentiments. This was confirmed by Investdata’s Daily Sentiment Report, showing a ‘sell’ position of 97% and ‘buy’ volume at 3%. Volume index was 0.97 of the day’s total transactions.
The momentum behind the day’s market performance was weakened further, as reflected in the money flow index at 19.22bps, sharply down from previous day’s 28.90 points, indicating that funds left the market in the midst prevailing low liquidity in the market and economy.

Index and Market Cap
Thursday’s composite index at the end of trading shed 456.39bps at 34,603.07bps, after opening at 35,0069.34bps, representing a 1.29% decline, to breakdown the psychological line of 35,000, while market capitalisation dropped by N164.62bn to close at N12.61tr, from an opening value of N12.81tr, representing 1.29% value loss, to further worsen investors’ negative 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 phones 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 downturn on Thursday was as a result of price depreciation in medium and high cap stocks that impacted negatively on the NSE’s Year-to-Date return, which further worsened to 9.48%, just as market capitalization decline within the period rose to N970.61bn, 7.13% below the year’s opening value.


Bearish Sector Performance
Sectorial performance for the day remained bearish, except for the NSE Oil/Gas that closed higher by 0.48%. Market breadth was negative as the number of decliners outpaced advancers in the ratio of 27:17, to record ten sessions of bearish run.

Market activities were up in volume and value by 13.49% and 6.47% respectively to 237.81m shares worth N3.09bn from the previous day’s 209.54m units valued at N2.9bn.
Transactions for the day were boosted by trading in financial services and consumer goods stocks: UBA, Guaranty Trust Bank, FBNH, Zenith Bank and International Breweries that witnessed increased trading to top the activity chart.
Equity Assurance and Portland Paints were the best performing stocks that topped the advancers’ table, after gaining 10% and 9.7%respectively, which closed at N0.22 and N2.47 respectively, purely on market forces.
On the flip side, Newest ASL and Neimeth were the worst, losing 10% and 9.59% respectively to close at N4.05 and N0.66 respectively as a result on profit taking and market trend.

Market Outlook
Being the last trading of the week, we expect the market to remain in red as bargain hunters take advantage of the low-price regime ahead of political party primaries. The ongoing anxiety in Nigeria’s political environment by party leaders are scaring investors away. The market may also likely be impacted by the outcome of the expected Q2 GDP report any moment as the whole world watches Nigeria’s politicians ahead of the all-important 2019 general elections.

Meanwhile, investors continue to interpret the recent Q2 earnings reports so as to rebalance their portfolios and watch the political space, while analysing the actual numbers released so far as a basis for determining the market and economy’s direction going forward. More disappointing reports will drive the market further down, or inspire a reversal if the numbers beat expectation.
Also important, is the outcome of the shadow elections by political parties taking place in the month of August. Investors should review their positions in line with investment goals, strength of the 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, especially during this season were Q2 interim dividend payment are expected in the market arena very soon.
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 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/2018/08/gradually-investors-take-advantage-of-ngses-low-price-regime-await-q2-gdp-data/

Investdata Weekly Sentiment Reports

NSEASI buy 77% sell 23% MFI 24.45
Access buy 20% sell 80% MFI 42.14
Afrprud buy 62% sell 38% MFI 84.61
Aiico buy 60% sell 40% volume index 0.88 MFI 36.36
Air service buy 44% sell 56% volume index 7.77 MFI 22.99
Berger buy 3% sell 97% volume index 1.45
Cadbury buy 0% MFI 15.13
Caverton buy 0% MFI 49.94
CIleasing buy 0% volume index 1.33 MFI 80.15
Custodian buy 38% sell 62% volume index 1.72 MFI 48.92
Cutix buy � volume index 0.95 MFI 62.38
Dangote Cement buy 78% sell 22% MFI 52.95
Dangote flour buy 52% sell 48% MFI 23.07
Dangote sugar buy 7% sell 93% MFI 67.10
Diamond buy 0% MFI 29.95
Equity ass buy 0% volume index 1.45 MFI 51.03
Eterna buy 0% volume index 2.15 MFI 74.71
ETI buy 60% sell 40% MFI 50.71
Fbnh buy 87% sell 13% MFI 43.90
Fcmb buy 0% MFI 39.48
Fidelity buy 35% sell 65% MFI 40.43
Fmn buy 31% sell 69% MFI 23.82
FO buy 15% sell 85% volume index 1.44 MFI 30.28
GT buy 9% sell 91% volume index 0.71
MFI 40.03
Hmarkins buy 0% MFI 74.18
Hony flour buy 15% sell 85% MFI 34.42
Jaiz buy 38% sell 62% MFI 40.32
Japaul buy 75% sell 25% MFI 42.24
Lasaco buy 33% sell 67% MFI 9.93
Lawunion buy 0% MFI 74.29
L/A buy 0% MFI 40.22
Lvstk buy 0% volume index 1.29 MFI 24.05
M&B buy 0% MFI 21.22
Mben buy 0% MFI 71.39
Nahco buy 7% sell 93% MFI 9.19
Nascon buy 33% sell 67% volume index 0.90 MFI 57.39
Neimeth buy 0% volume index 2.28 MFI 27.45
Nem buy 33% sell 67% MFI 57.57
Nestle buy 0% MFI 77.59
Nigerins buy � volume index 1.37 MFI 71.13
Oando buy 37% sell 63% MFI 15.86
Okomu buy 25% sell 75% MFI 32.91
Regalins buy 50% sell 50% MFI 30.88
Skye buy 0% MFI 16.69
Sovereins buy � MFI 70.86
Stanbic buy � MFI 3.58
Sterling buy 18% sell 82% MFI 29.56
Total buy 0% volume index 1.33 MFI 7.09
Transcorp buy 67% sell 33% MFI 17.10
Uacn Property buy 0% volume index 0.81 MFI 13.31
Uacn buy 0% MFI 12.35
Uba buy 12% volume index 1.02 MFI 11.50
Ubn buy 25% sell 75% MFI 30.53
Ucap buy 88% sell 12% MFI 71.06
Unilever buy � MFI 63.16
Uniondac buy 50% sell 50% volume index 4.24 MFI 73.45
Unity bank buy 0% volume index 0.79 MFI 31.24
Wapco buy 7% sell 93% volume index 1.95 MFI 45.22
Wema buy 50% sell 50% MFI 25.06
Zenith buy 12% sell 88% MFI 27.21

http://investdataltd..com/2018/08/investdata-weekly-sentiment-reports_20.html

Nigeria’s 36 States Earned 49% Of Revenue From FAAC In 2017- CBN

The Central Bank of Nigeria (CBN) says total revenue of the 36 state governments in the country grew by a robust 21.3% to N2.992tr in 2017, representing a mere 2.6% of GDP, compared to N2.467tr or 2.4% of GDP in 2016.
Of this amount, according to the CBN’s audited financials for the year ended December 31, 2017, Internally Generated Revenue (IGR) constituted just N765bn or 25.5% of total, up by a mere 2.5% from the level in 2016.

The states however received N1.462tr, or 48.9%, the lion’s share of their revenue, for the period from the monthly Federation Account Allocation Committee (FAAC) distributions (including 13% Derivative Fund).
Value-Added Tax (VAT) pool account yielded N473.8bn, or 15.8%; exchange gain, N123.1bn, or 4.1%; excess Petroleum Profit Tax, N94.5bn, representing 3.2%; just as grants and others (including share of stabilization fund and recovered excess bank changes amounted to N73.8bn, or 2.5%.

A further breakdown of IGR, showed that Lagos garnered a sizeable 68.4%, followed by oil-rich Rivers with 43.3%, and Kwara in the North-Central, 34.4%; while Bayelsa, neighbor to Rivers State came last on the IGR table, which just 5.3% of the 2017 total.
The most significant improvement in IGR was recorded by north-eastern state of Gombe, which increased its IGR by 16.3%, from 12.9% in 2016; ahead of Benue and Abia.

The various states governments however raised their spending level by 15.4% to N3.702tr, representing 3.2% of GDP, with N2.663tr, or 2.3% of GDP, of which 32.6% of recurrent expenditure, accounting for the 71.9% of total. This left capital expenditure at N1.039tr or 28.1% of total, which was 13.4% below the 2016 level.
“Analysis of spending on primary welfare sectors indicated that outlay on education rose by 89% to N305.8bn, above N161.8bn in 2016, and represented 37.9% of the total.

“Also, expenditure on housing, health, agriculture and water supply rose by 177.3%, 148.3%, 34.1% and 6.9% to N57bn, N264.8bn, N123.2bn and N55.7bn, respectively, relative to the levels in 2016,” the report noted, adding that aggregate expenditure on primary welfare sector amounted to N806.4bn, or 0.7% of GDP, and
accounted for 21.8% of total expenditure

https://investdata.com.ng/2018/08/nigerias-36-states-earned-49-of-revenue-from-faac-in-2017-cbn/

Investdata Price & Earnings Tracking For Week Ended August 17, 2018

https://investdata.com.ng/2018/08/investdata-price-earnings-tracking-for-week-ended-august-17-2018/

Regularising Investor Accounts Will Raise Liquidity In Nigeria’s Equity Market- Says SEC

a periodic gathering of stakeholders in the Nigerian capital market to discuss capital market related matters. Fielding questions from capital market journalists after the media briefing Acting Director General of the Securities & Exchange Commission (SEC), Ms. Mary Uduk, explained some of the discussion points and resolutions reached at the meeting.

What is the update on implementation of electronic-annual report?
Over one year ago, the SEC spearheading the market saw the need to embrace electronic annual report distribution for three reasons. One, we discovered that the cost of printing annual reports, which in many cases gets to the investors very late… many months even after the AGM has held, such monies would have been wasted. So, we discovered that rather than waste such monies it is better to distribute these annual reports electronically. The second advantage is that because technology is taking over the world, wherever you are in the world… once your email address is known, you can receive the audited annual report electronically. And we discovered that the money that was being wasted for printing annual reports will now be distributed as part of dividends.

Why do you want to waste such monies when they can be directed to the shareholders as dividends? We gave the market to implement a pilot exercise for one year. That one year ended in June, when it ended SEC conducted an impact assessment to see how it went and yesterday at the CMC it was considered and it was agreed that technology is the way to go. We observed that shareholders have one or two challenges about the issue, one of them is awareness, and the market has agreed that awareness on this will be intensified. Two, we are making greater efforts to ensure that we get the email addresses of all the shareholders. Thirdly, we have agreed, in addition, that there should be enlightenment campaigns. And for those who do not have internet, which is one of the issues that the shareholders have raised, it has been agreed that physical copies will still be distributed as a mix with the electronic versions. We believe that within the next five years, technology will continue to expand and go to remote places.
We have also enjoined registrars that at every AGM they should take a few minutes to enlighten shareholders on the benefits of electronic annual report.

What about Minimum operating standards? Was it discussed at the meeting?
Yes, it was. As part of the Commission’s initiatives to enhance efficiency and effectiveness of the capital market operators, a number of initiatives are being taken. About two years ago the Commission introduced the Risk Based Supervision for Capital Market Operators in addition to that, we also set up a Committee to come up with a Minimum Operating Standards for capital market operators. The Committee has submitted its report and some of the recommendations include manpower and equipment, organizational structure, technology and effective processes. The report was discussed at the CMC yesterday and adopted, after that the relevant department in the Commission will work with the leadership of the Trade Groups and implement the recommendations. We have a minimum of two years to implement that. One advantage we have is that the Nigeria Stock Exchange has already implemented the Minimum Operating Standard for the stock brokers, now what we are going to do is also implement the Minimum Operating Standards for the Registrars, fund managers, issuing house, custodian and the rest of them and we will commence immediately following the adoption of the recommendations of the committee at the CMC Meeting.

Where are we now on forbearance of multiple subscriptions?
During the banking and insurance sector consolidation between 2004-2007, there were a lot of issues in the primary market because the banks or insurance companies came to the market to raise funds and during that period, because a lot of people were coming to the capital market for the first time, they saw the capital market as a place where they can make a lot of money so a lot of them bought shares in different names. Today those shares are not in the system, because if you are not able to identify yourself properly and then those shares in the system. If you are able to identify yourself properly those shares cannot be properly captured in the system. We are saying come and regularize that situation and get back your shares which are being warehoused somewhere. There is absolutely no punishment attached to it, the SEC is not punishing anybody, we just want such individuals to come and regularize that transaction between now and 31st December 2018.
The objective of doing that is that it will increase liquidity in the market because the shares are just there no trading on them, not only that, the investors cannot claim their dividends too and that increases unclaimed dividend. Let them come and regularize so that there will be increase in trading of those shares and they will also claim their dividends so that the balance of unclaimed dividends will also go down.

Can we know what is delaying crowd funding in this market?
I want to assure you that he SEC is very desirous in having rules on crowd funding. We have severally discussed it and we want to have crowd funding in this market but we have a challenge. Firstly, the CAMA which is the primary regulation for all companies does not have provision for crowd funding and even if it has, ISA does not support it. I want to assure you that with the review of ISA that provision is now there and when it is approved we will be able to have it.

Why is the demutualization of the Nigeria Stock Exchange taking so long?
That is going on, as we speak, the bill is with the Presidency, the National Assembly has passed it.

Has cost of raising funds in the capital market reduced?
What we did in terms of trying to enhance issuance is to try to look at the entire value chain holistically and look at the issues that actually impede on issuers coming to the market. One of them was transaction cost. There was a committee that was set up and a study was conducted and it was observed that our market is very expensive in terms of issuance at the primary level and the Commission in collaboration with other stakeholders looked at the cost of the issuance. If you are coming to the market how much will the issuer pay? The rule has provided a limit of 3.17 for equities and 3.97 for Fixed Income. What we did in conjunction with other stakeholders is to look at those entire costs and do a haircut. Everybody agreed on how to reduce the cost in other to incentivize issuers to come to our market and that is wat we did. We reduced the cost of equities from 3.17 to 2.21 and then for Fixed Income from 3.97 to 2.38. it was a pilot for one year after which we will do an impact assessment to see how it will impact in the market.
I can say it has started impacting because issuers are coming and they are happy that these transaction cost has been reduced. It’s a value chain, but it has started giving result. At the end of one year the Commission will conduct an impact assessment to decide if we can move forward or make amendments.

What is the update on the MTN IPO? If they decided to come to the market how long will it take to approve it?
Let MTN file first and the day they inform you they have filed watch what the SEC will do. Not what is being bandied on the pages of newspapers, we will do our work to the best of our ability. I will make an exception and allow the press to come and monitor, that’s the seriousness with which we view everything that surrounds MTN and other filings. As we speak, as far as we know MTN is still a private company and until they convert to a public company and then file application with us, that is when the matter should be focused on us.
Another thing you have to consider is documentation.

What are you and CAC doing to ensure every PLC leverages the NASD platform?
We have been working with NASD, we have come up with a rule of trading in securities of We have collaborated with CAC on this, we have an arrangement where they open their portals to us and also agreed that companies that have not opened up their shares to the Commission
Secondly, on the issue of unlisted securities, we have an interface with CAC and that essentially is because these Plc. about 17,000, we need to liaise with other regulators to check if their securities are registered with SEC when they bring annual returns. We have also issued a circular and given a deadline of 31st Decemberfor all companies that ought to have registered their securities and have not registered. We can decide either to extend it or not. The law provides that they register their securities,

Recently FMDQ shareholders approved the expunged “OTC” from its name, is that of any significance?
The change of name by FMDQ has not changed what the platform is, it is only a change of name. An OTC is an Over the Counter Market where bilateral transactions take place. In the wake of technology and speed, that does not happen anymore. There is a very thin line between trading on an exchange and what you call an OTC. The name change has not changed anything about the functions or nature of the FMDQ as an exchange.

What measures are in place to prevent the market from reacting negatively to the 2019 elections?
The market must react whether positively or negatively. Irrespective of measures we put in place, the market reacts to activities that happen in the system. In 2008 during the meltdown, the market reacted to the global situation. Therefore, you should be alarmed if something happens during the 2019 election and the market does not react, we should be worried.
Irrespective of what we put in place, the market will react. I would rather enjoin gentlemen of the press to help us. The world is now a global village, anything we write here is blown out. I enjoin us to stay on facts, when we do that I am sure it will be fine. I therefore appeal to you especially since we are going into an election year to please help us.

What is the financial literacy timeline?
We have been working with National Education Research and Development Council (NERDC) on the curriculum. We will soon begin to see traction in respect of Capital Market Studies Coming into curriculum of schools.

On the average what is the time to market?
Our desire is to review applications within the shortest possible time and if possible within 48 hours and 72 hours we want to be able to give approval. But there are other factors to consider for instance the documents that is being filed have to be complete, there are other issues we need to look at. If a company is supposed to file 6 documents and they file 3 it is not complete filing. It Is those underlying documents that will make you to be able to review the main document and therefore if they are not all filed at the same time they have to be requested to do so. Most times it takes them substantial time to do that.

When you now open the offer documents and you find a lot of mis statements, a lot of information that is not correct, a lot of information that need to be clarified. You have to ask so that you don’t misleads investors. Those are some of the issues that makes us not to be able to give specific time lines within which an application can be reviewed. We have been working with the various stakeholders and now we are engaging the solicitors as well.
We are also doing IT related things within the commission for companies to be able to file electronically, then we review electronically so that it can be fast tracked. We are trying as much to reduce paper work, everyone reviews at the same time electronically so that we close the gap and totally shorten it.

FinTech is taking over. What is the SEC doing to guide against cross boarder offerings electronically from impacting negatively?
We are trying our best to ensure that investors are not hurt. There is no way that we will not encourage innovation, but at the same time you want to be sure that investors are not hurt. We have witnessed two ICO. We have in-house a dedicated FinTech team that watches the environment. Also. We have a sandbox on our website to watch what Fintech is doing. We don’t want Ponzi’s to take over and investors get hurt.
Periodically we issue circular and press release advising investors to be careful on investors and securities that have not been listed. Even IOSCO is still studying the issue and yet to come up with a guideline. SEC is actively involved in the working group of IOSCO and very soon IOSCO will come up with a guideline. And with that the SEC will come up with guidelines or rules on that. But we just advise investors to be careful.

https://investdata.com.ng/2018/08/regularising-investor-accounts-will-raise-liquidity-in-nigerias-equity-market-says-sec-boss/

Investdata Corporate Actions As At August 17, 2018

https://investdata.com.ng/2018/08/investdata-corporate-actions-as-at-august-17-2018/

Further Repositioning Ahead, On Earning Surprises, Amidst Wait For UBA, Access,

Market Update for Week Ended August 17 and Outlook for Aug 20-24
It was yet another week of bear dominance on the floor of the Nigerian Stock Exchange (NSE) as equity prices kept declining as a result of panic selloffs and cautious trading by market players, in the absence of respite from the leadership of politicians who continue heating up the nation’s polity ahead of the 2019 general elections. It could however have been worse, but for Friday’s rebound as a result of price appreciation of Dangote Cement, the market’s most capitalized stock, ending 10 consecutive trading sessions of decline.
There have been plenty of analyses, reports and charts lately about the current bear market becoming the “fastest on record within the shortest time.” Below is an updated look at the length of the current bear market, compared to past bear markets on the NSE.
First things first, though, until the NSE closed at a new five-year high in January 22, 2018, representing the end of the bull ascendance in the market. Before then, the market had decline for three years: 2014-2016 before rebounding in 2017, which extended to early January 2018. Thus, the current bear market has lingered seven months since January 22, 2018.
A bear market is commonly defined as a 20%+ decline coming after a 20%+ rally. Since we don’t know whether the NSE index will go into a new bull market in the nearest time due to political uncertainties surrounding the rest of the year to close above its 1/22 high, or vice versa, we can extend the length of the current bear market, depending on market forces and sentiments that influenced the movement of stock prices.

The Nigerian market has suffered 22.19% loss from its January 22 peak of 45,312.82 to 35,266.29 last Friday.
The recent reports published by NBS and CBN show a slowdown in economic activities, even as the July Consumer Price Index further move towards single-digit inflation at 11.14% from June post of 11.24% . The decline in July PMI and consumer confidence index was due to the fall in consumer demands which has affected the performance of consumer goods manufacturing companies, as reflected in the half year corporate earnings. These has further depressed the share prices of these companies on the NSE.

The nation’s foreign reserves, money in circulation, the 4% dip in oil price recently to $70.62 per barrel, among others, have since confirmed the decline. When the oil price drop is combined with the effect of a 7.3% slip in production output to 1.66m barrels per day in 2018Q2, it only shows that the Federal Government’s revenue projection for 2018 could come under some pressure. This could make further fiscal consolidation a major challenge as the market expects implementation of 2018 budget and electioneering spending to impact the liquidity level in the system.
During the week under review, only three companies released their earnings reports. While both quarterly reports by Stanbic IIBTC and Linkage Assurance, were impressive, the full-year scorecard by Afromedia was disappointing.

Market reaction to the Q2 numbers were positive and general sentiment for the week were mixed with buying position at 77%, while selling volume stood at 23%, as bargain hunters took advantage of low prices. This was despite the selloffs and profit booking as majority of investors and traders continued to ignore company fundamentals in their desperate run for capital safety.
Negative market breadth for the period was widened as the momentum behind the week’s trades was weak despite inching up as reflected in the money flow index that rose to 24.45 points from previous week’s 23.51points. This is an indication that funds are searching for direction in a market that is facing liquidity challenges as the smart money continues to sell down.

Equity Indicators Last Week
The NSE All-Share index suffered further decline within the period under consideration to consolidate seven weeks of downturn, despite the rebound to seemingly safe zone. The NSE index shed 180.18 basis points to breakout the psychological line of 35,000; after touching intraweek lows of 34,562 point to finish the week at 35,266.29 basis points, having opened at 35,446.47bps, representing a 0.51% decline on improved traded volume, compared to the previous week’s. The volume index of total transactions for the period was 0.50, as market capitalisation was down by 0.51%, closing at N12.88tr from the previous N12.94tr. This was due to the decline in the rate of selloffs in high cap stocks, as traders and investors took position on Friday to reduce sell down by foreign investors.
A mix of low and high cap stocks dominated the top advancers table for the week as short-term traders took advantage of the low prices to position, especially as financial market regulators and stakeholders parleyed on Wednesday to find solution to the prolonged correction. The meeting, it was gathered, was to encourage more local participation in the market, expecting also that the regularizing of accounts will further boost liquidityy according to Ms. Mary Uduk, Acting Director-General of the Securities & Exchange Commission (SEC).
Meanwhile, the NSEASI’s year to date negative returns deepened further to 7.78%, just as market capitalisation yielded negative returns of N734.56bn, or 5.40% below the year’s opening value.

Bearish Market Breadth
Market breadth remained negative as the number of decliners outweighed advancers in the ratio of 56:14 amidst intensified selloffs and profit taking, due also to the declining economic numbers as reported by CBN and NBS. We cannot rule out the impact of the currency war now threatening global economic growth and expected hiking of rates in the developed economies, which may further put pressure on the emerging and frontier markets.
The NSE Index opened the week on a negative note, a situation that was sustained through to make lower lows before rebounding on Friday on a high volume and strong market sentiment, resulting in 1.87% gain that reduced the negative position during the period, culminating in a 0.51% loss for the week, a significant improvement, when compared to previous week’s 2.89% slide.

All sectoral indexes closed lower for the week, except for the NSE Premium and Industrial Goods that closed higher, while NSE AseM remained flat.
Market activities for the period were up in volume and value traded by 23.87% and 50.55% respectively to 1.45bn shares worth N12.53bn, from previous week’s 925.63m units valued at N8.33bn.
International Breweries and Portland Paints were the week’s best performing stocks, chalking 10% and 9.87% gains respectively to close at N35.20 and N2.47 each, due to market forces and positive sentiments. The worst performing were: Neimeth International Pharmaceuticals and Secure Electronic, with 25% and 20.69% dip, closing at N0.60 and N0.23 respectively on profit taking and market forces.
During the week, the share price of Guaranty Trust Bank, Linkage Assurance and Aluminum Extrusion Industries were adjusted for dividend recommended by their directors.

Market Outlook
We expect a mixed performance for the market in the new week, if last Friday’s rebound is confirmed as market opens Monday morning, while volatility is likely to continue with economic reports and corporate earnings being analyzed. The market is however anxiously waiting for the half-year reports of UBA, Access Bank and probably, Fidelity Bank which is billed to join the interim dividend companies, even as analysts, investors and traders digest economic and numbers already released.

There could be repositioning on the strength of earning surprises and disappointing numbers that come below market expectations in the midst of events unfolding 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, especially during this season were more quarterly earnings are expected to hit the market, ahead of Q2 interim dividend paying equities in August due to the auditing process of their financials for half year.
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.

Ambrose Omordion
CRO|Investdata Consulting Ltd
info@investdataonline.com
info@investdata.com.ng
ambrose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08032055467

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ASK-BID SYSTEM

This is a system used to place a market order. The market order to buy requires a purchase at the lowest offering (asked) price and a market order to sell require a sale at the highest (bid) price, the bid price is what the dealer is willing to pay for the stock while the ask price is the price at which the dealer will sell to individual investors, the difference between the bid and ask prices is the spread.

Investdata Academy
http://investdataltd..com/2018/08/ask-bid-system.html

You are responsible for This...

Who is really responsible for your current status in life. Either health, family or Financial status. my reason for asking is simply because have sent you series of post regarding the Comprehensive Stock Trading Toolbox for the Rest of 2018.

However, I have not received any response from you. Well, I understand and it is not your fault.

However, there are 3 most important aspect of our lives.

*1. Health:* This is very important to you. Any form danger against it automatically affects your world view. As a result, we go hospital for medical check up, medication, engage in constant physical exercise just for a single reason which is to keep the body functional at all times.

*2.Relationships:* According to John Donne "No man is an Island..." we cannot exist in isolation. Hence, nobody can live alone without the help of another person either physically, emotionally and mentally. You know what I mean.

*3.Finance:* Finance is very important no wonder the Holy Book say Money Answers all things. Now, how have you been managing your finance? See to be sincere with you, the only way to get the best and take control of your finances is to make it work for you.

Now, if you think your finance is not important to you then how have you been paying your hospital bills or how have you been keeping relationships with your spouse. Many will say a relationship will endure without money but on the long run just like an motor oil is to a car engine so is money in a relationship. If you are married you already know what I mean...

So, the other 2 aspect will be covered and if it doesn't go well, then it is a choice not financial handicap.

Happy Trading
Ambrose Omordion

If you are among those knows what it takes and understand that you cannot change your current status by just mere will but Knowledge get Comprehensive Stock Trading and investing toolkit for the rest of 2018 home study pack USB NOW by calling 08028164085,08032055467 or send an email to ambroseconsultants@yahoo.com

https://investdataltd..com/2018/08/you-are-responsible-for-this.html?m=1

Investdata Daily Sentiment Reports

NSEASI buy 84% sell 16% volume index 0.88 MFI 15.74
Access buy � volume index 2.03 MFI 45.36
Cadbury buy � volume index 1.90 MFI 50.12
Dangote sugar buy � MFI 10.60
Diamond buy � volume index 0.72 MFI 38.32
Fbnh buy 50% sell 50% volume index 0.99 MFI 60.77
Fidelity buy 0% MFI 33.33
Fmn buy � MFI 14.17
GT buy 48% sell 52% volume index 1.20 MFI 12.70
Hony flour buy � volume index 0.77 MFI 34.98
Nahco buy 6% sell 94% MFI 2.81
Oando buy 0% MFI 49.31
Regalins buy � MFI 30.39
Skye buy 50% sell 50% volume index 5.49 MFI 44.30
Sovereins buy � MFI 54.39
Stanbic buy � volume index 1.94 MFI 83.37
Sterling buy � MFI 38.45
Transcorp buy 0% MFI 52.55
Uac Property buy 0% volume index 1.83 MFI 46.31
Uba buy 20% sell 80% volume index 1.99 MFI 26.34
Zenith buy 40% sell 60% volume index 1.59 MFI 8.39

http://investdataltd..com/2018/08/investdata-daily-sentiment-reports_21.html

BALANCED FUND

This is a mutual fund that buys a combination of ordinary shares, preference shares bonds and short-term bonds, to provide both income and capital appreciation while avoiding excessive risk. Balanced funds are geared toward investors who are looking for a mixture of safety, income and modest capital appreciation. It generally keeps to a 50-50 mix of stock and bond investments.

Investdata Academy
http://investdataltd..com/2018/08/balanced-fund.html

CBN Bars Toxic Debtors From 7-Year, Single-Digit Interest Funds

The Central Bank of Nigeria (CBN), on Thursday published guidelines for its Real Sector Support Facility (RSSDF), a pool of funds comprising the Cash Reserve Requirement (CRR) kept in its vault by deposit money banks in the country.

Under the guideline released by the CBN’s Development Finance Department, banks may facilitate as much as N10bn to any company in economic growth stimulating and job creating sectors such agriculture and manufacturing, at a minimum tenor of seven years for facilities under the Differentiated Cash Reserves Requirement (DCRR) regime.

The DCRR allows banks to request the CBN to release funds from their CRR to finance new (greenfield), as well as expansion (brownfield) projects in the real sector. Such banks must however provide verifiable evidence that such funds shall be directed at the CBN approved projects.
Unlike in the present situation where the CRR was warehoused at zero interest rate with the CBN, the owner banks can now earn an all-inclusive 9% interest rate per annum.

To discourage the activities of serial debtors, the CBN requires that while the banks shall bear the credit risk of such, the facilities must not be enjoyed by borrowers (an entity incorporated in Nigeria under the Companies & Allied Matters Act of 1990) with “a non-performing facility with any financial institution.”
Giving further clarifications on the guidelines on Thursday, August 23, 2018, acting Director of Corporate Communications at the CBN, Isaac Okorafor, expressed hope for increased flow of credit to the real sector of the economy as deposit money banks (DMBs) are incentivized to direct affordable, long-term bank credit to the manufacturing, agriculture, as well as other sectors considered as employment and growth stimulating.

Okorafor also noted that such target companies would be required to publish an Information Memorandum, spelling out the details of the projects for which the funds are required together with terms and conditions showing that these are long term projects that are employment-elastic and growth stimulating.

The CBN, he continued, had put in place a programme under the Differentiated Cash Reserves Requirement (DCRR) Regime whereby DMBs interested in providing Credit Financing to greenfield (new) and brownfield (expansion) projects in the real sector (Agriculture and Manufacturing) could request for the release of funds from their CRR to finance the projects; subject to DMBs providing verifiable evidence that the funds shall be directed at the approved projects by the CBN.
He called for a total compliance with the guidelines by stakeholders and also highlighted the eligibility criteria for participation in the facility/CP programme, as well as the responsibilities of the stakeholders; just as he reiterated the CBN’s determination towards the encouragement of projects that will further enhance Nigeria’s import substitution strategies.

https://investdata.com.ng/2018/08/cbn-bars-toxic-debtors-single-digit-funds/

Big Caps Buoy Indicators, As Investors Position On NGSE Amidst Cautious Trading

NGSE Market Update for August 23, 2018

Dangote Cement Plc, the biggest stock by market capitalization of the Nigerian Stock Exchange (NSE), on Thursday, pulled its weight, impacting the indicators positively to reverse the previous day’s down market after the Sallah holiday. This followed a seemingly improved buying sentiment, as highly capitalized stocks become most attractive at the prevailing market value for institutional investors.

The volatility pattern of the market continued to reflect cautious trading by players as the nation’s statistics support arguments about stagnation in the economy, especially with the low consumer confidence and dwindling purchasing power among Nigerians. Unfortunately, it is happening at a time governance has taken the back seat, with government and politicians concentrating their efforts at the moment on politics at the detriment of the economy, with implementation of the 2018 budget yet to reflect on the system. Meanwhile, the government is talking of presenting the 2019 budget to the National Assembly next month.
The NSE’s All-Share index opened Thursday on a sharp gap down in the morning session, which was sustained until afternoon, as high cap stocks that had suffered losses appreciated in price, before retracing up. It touched an intraday high of 35,206.16 basis points, from its low of 34,481.47bps to close the session higher at 35,206.16bps on its recent average traded volume.

Despite the prolonged down market, some stocks have remained fundamentally okay. Identifying when to buy is however what 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 through your phone and laptop. This will help you determine 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 on Thursday were weak and mixed, despite the positive sentiment in the midst of relatively low volume traded and negative market breadth. This was confirmed by Investdata’s Daily Sentiment Report, showing a ‘buy’ position of 100% and ‘sell’ volume at 0%. Volume index was 0.88 of the day’s total transactions.

Momentum behind the day’s market performance was weak, as reflected in the money flow index at 15.91bps, despite inching up from previous day’s 15.74 points, indicating that funds entered few stocks in midst of the prevailing low liquidity in the market.

Index and Market Cap
The benchmark index at the end of the day’s trading gained 542.68bps at 35,206.16bps, after opening at 34,663.46bps, representing a 1.57% growth, to remain above the psychological line off 35,000bps. Market capitalisation rose by N198.12bn to close at N12.85tr, from an opening value of N12.62tr, representing a 1.57% value gain, which further reduced investors’ loss 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 phones 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.
Thursday’s upturn was attributed to value gain in low medium and high cap stocks like Dangote Cement, Guaranty Trust Bank, Oando, Dangote Flour, United Capital, FBNH, and Honeywell that impacted positively on the NSE’s Year-to-Date return, which further contracted to 7.94%. Market capitalization decline within the period dropped to N726.95bn, or 5.37% below the year’s opening value.



Mixed Sector Performance
Sectorial performance for the day was largely bullish, except for the NSE Banking and Consumer goods that closed down by 0.38% and 0.46% respectively. Market breadth remained negative as decliners outpaced advancers in the ratio of 25:11 to halt the previous day bear market.

Market activities were mixed as volume was up by 0.10% to 220.71m shares from the previous day’s 220.5m units, while value was down by 20.59% to N2.53bn from Monday’s N3.19bn.
Transactions for the day were boosted by trading in financial service and conglomerates stocks that witnessed increased trading to top the activity chart, like: UBA, Zenith, FBNH, Transcorp and Skye Bank,
Wapic Insurance and Veritas Kapital were the best performing stocks as they topped the advancers’ table, after gaining 8.82% and 7.68%respectively, closing at N0.37 and N0.28 respectively, purely on market sentiments. On the flip side, Livestock Feeds and Redstar Express were the worst, losing 9.84% and 9.65% respectively to close at N0.55 and N5.15 respectively as a result on profit taking and market trend.

Market Outlook
We expect the market to oscillate as bargain hunters take advantage of the low-price regime, as political party primaries kicks off. The ongoing anxiety in Nigeria’s political environment by party leaders and politicians is heating up the system and scaring investors away. The market may also likely be impacted by the outcome of the expected Q2 GDP report any moment as the whole world watches Nigeria’s politicians ahead of the all-important 2019 general elections.

Meanwhile, investors continue to interpret the recent Q2 earnings reports so as to rebalance their portfolios and watch the political space, while analysing the actual numbers released so far as a basis for determining the market and economy’s direction going forward. More disappointing reports will drive the market further down, or inspire a reversal if the numbers beat expectation.
Also important, is the outcome of the shadow elections by political parties taking place in the month of August. Investors should review their positions in line with investment goals, strength of the 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, especially during this season were Q2 interim dividend payment are expected in the market arena very soon.
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 fundamental.


https://investdata.com.ng/2018/08/big-caps-buoy-indicators-as-investors-position-on-ngse-amidst-cautious-trading/

CBN Targets CRR Pool At Growth Stimulating, Job Creating Companies

As promised in the communique issued at the end of the 119th meeting of its Monetary Policy Committee (MPC) on July 24, the Central Bank of Nigeria (CBN), on Thursday, unveiled plans to enable companies with capacity to create employment and stimulate economic growth, access a pool of once sterile Cash Reserve Requirement (CRR) warehoused by deposit money banks.
Although it is not immediately known how much is available under the programme, it may run into trillions of Naira.

Funds to be disbursed under the scheme tagged: Real Sector Support Facility (RSSDF), are targeted primarily at A-rated companies operating in the real sector (manufacturing, agriculture and any other permitted by the CBN).
Banks are allowed under the scheme to facilitated a maximum of N10bn per project at an all-inclusive interest rate/charge of 9% per annum. The CBN encouraged customers to report any bank that charges rates above that prescribe to the CBN’s Director of Banking Supervision, even as repayment shall be amortised and remitted on a quarterly basis to the CBN.

Traditionally, banks across the globe are required to keep a percentage of deposits they mobilise from customers (22.5% in the case of Nigeria), known as Cash Reserve Requirement (CRR) with the CBN. It is the portion of every Naira of customer deposits kept with the CBN and not available for investment and/or lending or credit purpose. The CRR attracts zero interest, and is therefore a tool used to control liquidity in a nation’s banking system and ensures that banks do not run out of cash to meet the maturing obligations of their depositors.

The CBN’s “Guidelines for Accessing Real Sector Support Facility (RSSDF) through Cash Reserves Requirement (CRR)/Corporate Bonds (CBs),” seeks to increase the flow of credit to the real sector of the economy, in order to consolidate and sustain the nation’s economic recovery, just as the participating banks would earn an income.

The sectors have been identified as manufacturing and agriculture, as well as others considered by the CBN as meeting the set criteria. They include ‘A’ rated companies that will be encouraged to issue long-term corporate bonds and projects targets at both backward integration and those capable of enhancing Nigeria’s Import Substitution Strategy.
The guideline noted that under its Differentiated Cash Reserves Requirement (DCRR) regime, commercial banks are allowed to request the CBN to release funds from their CRR to finance new (greenfield), as well as expansion (brownfield) projects in the real sector. Such banks must however provide verifiable evidence that such funds shall be directed at the CBN approved projects.

Emphasis will be on greenfield projects under the DCRR and shall be at minimum tenor of seven years, with two-year moratorium, with the Participating Financial Institution (PFI) bearing the credit risk
Banks may also invest part of their CRR in long-term corporate bonds of Tripple A-rated companies which the meet job creation and economic stimulating criteria.
The CB must also be with a minimum tenor of seven years, while the moratorium is as specified in the offer document.

Specifically, priority will be given to “projects with high local content, import substitution, foreign exchange earnings and potential for job creation, just as existing loans shall not qualify for funding under the programme.
While trading activities are prohibited from benefiting, the CBN warned of severe penalties for banks that seek to present any project that do not meet its eligibility criteria.

https://investdata.com.ng/2018/08/cbn-targets-crr-pool-at-growth-stimulating-job-creating-companies/

Nigeria’s External Reserves Shed $1.13bn In One Month

Latest data from the Central Bank of Nigeria (CBN) website shows that the nation’s external reserves fell to $46.257bn on August 20, from $47.119bn at the end of July, 2018, representing a decline of $862.23m, or 1.82%.

Month-on-Month however, the reserves level fell by $1.13bn or 2.38% from $47.388bn on July 20, 2018, returning to a level it last touched on March 29, when it hit $47.257bn as it climbed upward.

The reserves level had risen from $38.765bn at the end of December 2017, peaking at $47.865bn on May 5, 2018, accumulating a robust $9.099bn, or 23.47% within the period.

Thereafter, it began a gradual decline, owing to the exit of foreign portfolio investors due to the mounting concerns over the 2019 elections.

In his personal commenting at the April meeting of the Monetary Policy Committee (MPC), released by the CBN, a member, Prof. Adeola Adenikinju, a member, noted the need for the “maintenance of adequate foreign reserves as a hedge against reversal in portfolio investments and cyclicality of the global oil market.”

He equally noted the need for more committed by the Federal Government to sustain “an effective, functional and well-resourced stabilization account that will provide needed buffer for the economy, increase in non-oil tax-GDP ratio, horizontal and vertical diversification of the oil sector, speedy passage of the 2018 budget, payment of contractors’ debts to reduce the NPLs of banks, provision of more credit to the economy by the banking sector, reduction in the maximum lending rates by banks..”

He lamented the “continued depletion of the excess crude account, the monetization and sharing of oil revenues, and foreign debts without any effective stabilization fund… Added to this is the potential spike in domestic spending that is a regular feature of past electoral cycles in Nigeria.

“All of these factors, plus the risking debt profiles of the government, increases inflationary outlook for the economy,” which he said call for the synchronisation of fiscal and monetary policies in Nigeria.

https://investdata.com.ng/2018/08/nigerias-external-reserves-shed-1-13bn-in-one-month/

CBN Injects $543m, CNY63m Into Forex market In Two Days

In two consecutive days- Thursday, August 23 and Friday, August 24, 2018, the Central Bank of Nigeria (CBN) injected a total sum of $543.22m and CNY63.21m into the inter-bank foreign exchange market.

While $100m was offered as wholesale interventions, the sum of $55m was allocated to the Small and Medium Enterprises (SMEs) forex window, just as the invisibles window, which caters for customers requiring forex for Business/Personal Travel Allowances, tuition and medical fees, among others, received $55m.

Similarly, on Friday, a statement by the CBN said the sum of $323.22m, or 59.48% was injected into the interbank retail Secondary Market Intervention Sales, besides the total of CNY63.21m offered in the spot and short-tenored forwards, arising from bids received from authorized dealers
CBN’s spokesperson, Isaac Okorafor, who confirmed the figures, expressed the apex bank’s renewed commitment to maintaining Nigeria’s external reserves to safeguard the international value of the Naira in line with its mandate.

According to him, the CBN’s management of the forex market had entrenched transparency in the market and continued to strengthen the value of the naira against other major currencies of the world.
Okorafor said the sale of Chinese Yuan (Renminbi) was in line with the CBN guidelines, which stipulate that it would be for the payment of Renminbi denominated Letters of Credit for agriculture as well as raw materials.

While also noting that availability of the Chinese currency would ease pressure on the Nigerian foreign exchange market, he attributed the relative stability in the foreign exchange market to the intervention of the CBN as well as the sustained increase in crude oil prices in the international market. He further pledged that the Bank would ensure that the requirements of customers in all sectors of the foreign exchange market are guaranteed access to required foreign exchange.
Meanwhile, $1 exchanged for N360 at the Bureau de Change (BDC) segment of the foreign exchange market, while CNY 1 exchanged for N53.17.

https://investdata.com.ng/2018/08/cbn-injects-543m-cny63m-into-forex-market-in-two-days/

Investdata Price & Earnings Tracking For Week Ended August 24, 2018

https://investdata.com.ng/2018/08/investdata-price-earnings-tracking-for-week-ended-august-24-2018/#more

CSR: Ecobank Adopts Lekan, Boy Who Painted President Macron’s Portrait

As part of its corporate social responsibility initiatives, Ecobank Nigeria Limited at the weekend announced its adoption of Waris Olamilekan Kareem, the 11-year old boy who painted the portrait of French President Emmanuel Macron, during his visit to the New Afrika Shrine in July.

He was identified by Ecobank, one of the sponsors of the “Celebration of African Culture” at the New Afrika Shrine, as a talented young artist and was given the opportunity to paint and present a portrait of Emmanuel Macron on behalf of the bank.
An agreement was signed with boy-artists parents for educational support/grant and upkeep allowance spanning all of 20 years.

According to Charles Kie, its outgoing Managing Director, Ecobank Nigeria decided to support the education of Waris, “to nurture and enable him develop his gifts and other interests he may have in future.”
It is a great privilege, he continued, to partner with the family in recognition of the child’s exceptional talent, especially as the bank is a firm believer in the development of the African child and the sustainable power of education as well as the diversity obtained in the arts.

The Managing Director stressed further: “We today make a commitment to partner with Mr & Mrs. Kareem on this laudable endeavor to help Waris grow in all aspects of life. Ecobank is supporting Waris in furtherance of the Bank’s CSR initiatives with the primary focus of enabling Waris further enhance his talent whilst also ensuring his general educational development through proper monitoring and guidance.
“To be sure, good education makes for good citizens, it is a pathway towards a prosperous, productive life and good citizenship. This is our wish for this unique and talented young man, Waspa (as he likes to be called), he added.

Advising Waris, Kie said “we can give you all the support by funding your education and ensuring your wellbeing through your parents, none of these will however matter unless you work hard in school, pay attention to your teachers, and listen to your parents and other adults.

Also speaking, Ecobank Nigeria’s Company Secretary and Chief Legal Counsel, Adenike Laoye said the bank also extended monetary support to Waris’s art school to recognize their talent, whilst also enhancing the general learning environment for Waris and other talented young boys and girls under their care.
Mrs. Laoye reiterated that the adoption of the child artiste is in line with Ecobank CSR strategy, which has a guiding principle to give back and contribute effectively to the communities in which the bank operate.

She said Ecobank, is a responsible and caring corporate citizen interested in enhancing lives especially that of children, who are the future of Africa. “we encourage creativity and excellence amongst African youths while also fostering integration on the continent.” she stated.

Caption: Mrs. Kareem (3rd right), mother of 11-year old Warris (3rd left) receiving the agreement from Managing Director, Ecobank Nigeria, Charles Kie (2nd left). On hand to grace the occasion were: Tope Akinbola, Head, Brand and Communications Ecobank (left); the lad’s father, Mr. Kareem; Company Secretary/Chief Legal Counsel of the bank, Adenike Laoye and Head, Consumer Marketing, Insights & Analytics, Ikechukwu Kalu, during the agreement signing ceremony on the adoption of Waris by Ecobank in Lagos

https://investdata.com.ng/2018/08/csr-ecobank-adopts-lekan-boy-who-painted-president-macrons-portrait/#more

Investdata Corporate Actions As At Week Ended August 24, 2018

https://investdata.com.ng/2018/08/investdata-corporate-actions-as-at-week-ended-august-24-2018/#more

Never Ever Give up

"Never give up, and be confident in what you do. There may be tough times, but the difficulties which you face will make you more determined to achieve your objectives and to win against all the odds."

With the current status of the market I want to encourage you never to give up on the market completely.

I understand that you must have lost a lot in the market couple the discouraging news about the market, you might decide not to venture into stocks again.

However, Thomas Edison who failed 9,999 times in the process of inventing electric bulb saw opportunities in every failure that came his way.

Hence, I want you to see the current bear market as an opportunity to prepare yourself for the bull market. But this can be done in isolation or guessing but through knowledge acquisition.

The *Comprehensive Stock Trading Toolbox for the Rest of 2018 Home study pack USB* have been prepared in line in helping you prepare. Order now if you have not given up on the market.

Send an email to ambroseconsultants@yahoo.com

Happy Trading
Ambrose Omordion
http://investdataltd..com/2018/08/never-ever-give-up.html

Investdata Weekly Sentiment Reports

NSEASI buy 79% sell 21% MFI 30.05
Access buy 23% sell 77% MFI 43.71
Afrprud buy 0% MFI 84.38
Aiico buy � MFI 45.32
Air service buy � volume index 2.07 MFI 35.18
Cadbury buy � MFI 20.04
Cutix buy 0% MFI 58.58
Dangote Cement buy 80% sell 20% MFI 56.45
Dangote flour buy � MFI 27.34
Dangote sugar buy 60% sell 40% MFI 66.04
Diamond buy 20% sell 80% MFI 36.16
Eterna buy 0% volume index 0.87 MFI 69.96
Eti buy 48% sell 52% volume index 3.99 MFI 38.76
Fbnh buy 50% sell 50% MFI 44.84
Fcmb buy � MFI 23.48
Fidelity buy 50% sell 50% MFI 44.60
Fmn buy � MFI 31.78
GT buy 75% sell 25% MFI 44.42
Hmarkins buy 67% sell 33% volume index 1.05 MFI 73.69
Hony flour buy � MFI 35.58
Jaiz buy 0% MFI 41.17
Japaul buy � MFI 42.93
Lvstk buy 0% MFI 25.15
M&B buy � volume index 0.70 MFI 20.79
Mben buy 0% MFI 66.90
Nahco buy 6% sell 94% MFI 8.42
Nascon buy 0% MFI 57.43
Nem buy � volume index 8.79 MFI 79.44
Oando buy � MFI 19.00
Okomu buy 0% MFI 35.07
Red buy 85% sell 15% volume index 0.98 MFI 37.42
Regalins buy 0% volume index 1.48 MFI 26.55
Royalex buy 0% MFI 57.57
Skye buy � MFI 34.69
Sovereins buy 0% MFI 67.22
Stanbic buy 0% MFI 3.57
Sterling buy � MFI 29.75
Total buy 0% MFI 7.41
Transcorp buy 45% sell 55% MFI 17.46
Uacn Property buy 0% MFI 15.06
Uba buy 22% sell 78% volume index 2.46 MFI 10.70
Ucap buy 72% sell 28% MFI 71.27
Unilever buy � MFI 61.45
Uniondac buy 0% volume index 0.82 MFI 74.94
Wapco buy 0% MFI 48.92
Wapic buy 50% sell 50% volume index 1.44 MFI 81.18
Wema buy 17% sell 83% MFI 27.43
Zenith buy 55% sell 45% MFI 30.53

http://investdataltd..com/2018/08/investdata-weekly-sentiment-reports_27.html

Who We Are

Welcome to those who are just joining us. This is InvestData Consulting Limited which specializes in Financial Services.

We are very renowned for excellent guidance regarding the stock market and capital markets. Our team of experts will be sharing not only financial services but general update regarding the financial market. Also, this forum will give you useful tips that will affects your finances positively.

1.   Free tips on investing productively.

2. General emotionally and psychologically tips that affects our lives.

3. Make extra and passive income. This is not the common get rich quick schemes.

4. Forecast of how market will turn out.

5. Weekly tips and advice.

6. Buying and selling signal. That is what stock to buy.

Dedicated to your financial success.
Ambrose Omordion
CRO InvestData Consulting
08028164085,08032055467
www.investdataonline.com


Please also note the rules that governs this forum.

A simple rule to govern the forum. Please be aware that jokes, quizzes, puzzles, proverbs, gossips, entertainment, news,nudity, advertising, religious and political posts are prohibited on this forum. Only posts related to finance and investment are permitted here. Anyone who violate this rule will be suspended from this forum for two weeks and will be readmitted after two weeks that if you want.

https://investdataltd..com/2018/08/who-we-are.html?m=1

BAGGING THE STREET

This slang means a concealment of information about the sale of stock from dealers and specialists by institutional investors or brokers. Such information may include reasons why the stock is being sold off, and the number and price of the shares in question. In a nutshell, bagging the street refers to the strategy of profiting from price changes created by block trades.

Bagging the street is a classic trading strategy, but it relies on access to real-time information, something most everyday traders do not have. This slang is a great example of how information can be the most valuable commodity in the world, and traders will pay through the nose to get access such an information.

Investdata Academy

http://investdataltd..com/2018/08/bagging-street.html

Investdata Daily Sentiment Reports

NSEASI buy 78% sell 22% volume index 0.70 MFI 31.95
Access 50% sell 50% volume index 1.41 MFI 48.38
Afrprud buy 44% sell 56% volume index 1.60 MFI 44.82
Aiico buy 50% sell 50% volume index index 1.94 MFI 43.34
Dangote Cement buy � MFI 76.95
Dangote flour buy 93% sell 7% MFI 20.95
Dangote sugar buy 67% sell 33% volume index 0.80 MFI 23.91
Diamond buy � volume index 2.15 MFI 61.35
Fbnh buy 33% sell 67% MFI 45.24
Fcmb buy 0% MFI 36.30
Fidelity buy 56% sell 44% volume index 0.72 MFI 51.99
Fmn buy � volume index 3.69 MFI 52.48
GT buy � MFI 17.34
Hmarkins buy � volume index 0.91 MFI 57.41
Hony flour buy � MFI 28.99
Jaiz buy � volume index 4.56 MFI 63.98
Japaul buy 0% volume index 1.13 MFI 47.17
Lasaco buy � MFI 18.20
Nigerins buy 100 volume index 1.45 MFI 87.24
Oando buy 50% sell 50% MFI 59.64
Skye buy 0% volume index 1.46 MFI 58.67
Transcorp buy 80% sell 20% MFI 55.17
Uacn buy � volume index 3.25 MFI 54.61
Uba buy � MFI 14.92
Ubn buy � volume index 1.28 MFI 16.44
Unilever buy 0% volume index 6.03 MFI 43.67
Uniondac buy 100 � MFI 66.41
Wapco buy � MFI 69.91
Wema buy 0% MFI 3.23
Zenith buy 0% MFI 22.52

http://investdataltd..com/2018/08/investdata-daily-sentiment-reports_3.html