₦airaland Forum

Treasury Bills Yields Rise as Funding Rates Remain in Single Digit
https://www.businesspost.ng/2018/08/07/treasury-bills-yields-rise-as-funding-rates-remain-in-single-digit/

SEC Proposes N1b Capital for Nominee Companies
https://www.businesspost.ng/2018/08/06/sec-proposes-n1b-capital-for-nominee-companies/

'Suspended' Conoil Posts 22% Growth in Profit in Q1 2018
https://www.businesspost.ng/2018/08/07/suspended-conoil-posts-22-growth-in-profit-in-q1-2018/

Property (Real Estate) Transactions With Their Attendant Risks
https://www.businesspost.ng/2018/08/07/property-real-estate-transactions-with-their-attendant-risks/

Sterling Bank Issues N35b Commercial Papers
https://www.businesspost.ng/2018/08/06/sterling-bank-issues-n35b-commercial-papers/

Subscription Opens for FGN Savings Bond for August
https://www.businesspost.ng/2018/08/06/subscription-opens-for-fgn-savings-bond-for-august/

By Dipo Olowookere

Trading at the local stock market started off on a bearish note on Monday with 26 equities recording various price declines.

Beta Glass topped the laggards’ chart at the close of transactions today with N7.80k of its share price lost to profit taking to close at N78 per share.

Following Beta Glass on the log was Okomu Oil, which went down by N2.90k to finish at N73.10k per share, and Nigerian Breweries, which depreciated by N2.10k to end at N100.90k per share.

Flour Mills declined today by N1.40k to finish at N24.60k per share, while Dangote Cement fell by N1 to settle at N228 per share.

Business Post reports that the market breadth ended negative as only 21 equities appreciated at the close of business on Monday.

The top gainers’ table was mounted by Lafarge after adding N2.50k to its share value to close at N30.50k per share.

This was followed by Ecobank, which rose by 90 kobo to finish at N22 per share, and United Bank for Africa (UBA), which improved by 25 kobo to end at N9.70k per share.

Oando gained 15 kobo to settle at N5.75k per share, while Forte Oil also appreciated by 15 kobo to finish at N23.55k per share.

It was observed that the mood at the Nigerian Stock Exchange (NSE) on Monday was mixed despite the loss recorded.

Business Post reports that investors were not too happy with the half year earnings of Zenith Bank released today.

The lender posted a sharp decline of over 15 percent in its gross earnings, but its profit appreciated by over 8 percent. The Tier-1 bank also declared an interim dividend of 33 kobo per share, which some said was enough to pacify shareholders.

At the close of transactions today, the stock market marginally closed 0.06 percent lower with the Year-to-Date (YtD) returns closing at -4.61 percent.

The All-Share Index (ASI), which closed at 36,499.67 points last Friday, depreciated on Monday by 20.25 points to settle at 36,479.42 points, while the market capitalization finished at N13.315 trillion after reducing by N7 billion.

A look at the sector performance showed that the NSEIND gained 2 percent, NSEINS10 rose by 1.03 percent, NSEBNK10 appreciated by 0.86 percent and NSEOILG5 increased by 0.42 percent.

However, the only sector that recorded a loss today was the Consumer Goods sector (NSEFBT10), which went down by 0.93 percent. This was mainly influenced by the losses recorded by two of the big boys in the arm, Nigerian Breweries and Flour Mills.

Business Post reports that the volume and value of shares transacted by investors on Monday depreciated by 31.57 percent and 52.21 percent respectively.

While the volume of share went down to 182.3 million from 266.4 million, the value declined to N2 billion from N4.3 billion.

The trades were dominated by financial stocks, which accounted for 126.6 million units worth N958 million, while the equities in the Healthcare sector followed with 14.5 million shares exchanged for N8 million.

United Bank for Africa topped the activity chart with a total of 21.7 million shares worth N208.1 million exchanging hands during the day’s trading.

It was followed by United Capital, which sold 20.4 million units valued at N58.3 million, and Regency Alliance Insurance, which transacted 16.9 million shares worth N4 million.

Access Bank traded 13.9 million equities for N138.7 million, while Union Diagnostic & Clinical Services exchanged 12.7 million shares valued at N4.6 million.

With the market recorded a slight loss today, investors would be hopeful that the bulls will resurface tomorrow.

https://www.businesspost.ng/2018/08/06/26-stocks-drag-nigerian-market-slightly-lower-by-0-06/

H1 2018: Zenith Bank Profit up by 8.5%, Revenue Drops 15.3%
**Declares Interim Dividend
https://www.businesspost.ng/2018/08/06/h1-2018-zenith-bank-profit-up-by-8-5-revenue-drops-15-3/

NSE Suspends Trading of Conoil Shares
https://www.businesspost.ng/2018/08/06/breaking-nse-suspends-trading-of-conoil-shares/

Emerging Market Governments Raise $129b Eurobond in H1 2018
https://www.businesspost.ng/2018/08/05/emerging-market-governments-raise-129b-eurobond-in-h1-2018/

By Modupe Gbadeyanka

Trading the shares of Conoil Plc on the floor of the Nigerian Stock Exchange (NSE) has now been suspended.

This information was revealed on Monday, August 06, 2018, in a statement issued by the market regulator.

According to a circular signed by the Head of Listings Regulation Department at the stock exchange, Mr Godstime Iwenekhai, Conoil was suspended because it failed to file in its financial statements as required by the rules governing the market.

“Dealing members are hereby notified that pursuant to Rule 3.1, Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of The Exchange (Issuers’ Rules), which provides that; ‘If an Issuer fails to file the relevant accounts by the expiration of the Cure Period, The Exchange will: (a) Send to the Issuer a ‘Second Filing Deficiency Notification’ within two (2) business days after the end of the Cure Period; (b) Suspend trading in the Issuer’s securities; and (c) Notify the Securities and Exchange Commission (SEC) and the Market within twenty- four (24) hours of the suspension,” a part of the circular said.

It said further that “trading in the shares of Conoil Plc has been suspended effective today, August 6, 2018.”

The stock exchange management however said, “In accordance with the rules set forth above, the suspension of Conoil Plc will only be lifted upon the submission of the relevant accounts and provided The Exchange is satisfied that the accounts comply with all applicable rules of The Exchange.”

Business Post reports that as at the close of market last Friday, shares of Conoil were sold at N24.30k each.

However, as at the time the NSE suspended trading in the shares of the oil firm, it was being traded at N23 per share, indicating that it had lost N1.10k or 4.56 percent of its share value on Monday.

Nigerian businessman, Mr Mike Adenuga, is the Chairman of Conoil, where he controls the largest stake in the company. According to Forbes, Mr Adenuga owns about 74 percent stake in Conoil.

https://www.businesspost.ng/2018/08/06/breaking-nse-suspends-trading-of-conoil-shares/

You are right, but some investment firms also contributed to it. Some of these companies lured investors into the market, promising them high yields and when things turned bad, they packed up. AIMS Asset Mgt Ltd is an example.

Deadlytruth:
It was all because most newbies were approaching the Stock market with a kalokalo mindset.

The 2008 experience is what should never happen again. Some pensioners, like the Nigeria Airways, who invested their severance package then in stocks, lost almost everything. Some that I know today are yet to recover from the crash.

To me, Notore is too high at N62. It should be in the low-priced category.

Well, time will tell.

Mpeace:
The funny thing is that once they fall they hardly ever rise again.

Stocks to Watch out for This Week
https://www.businesspost.ng/2018/08/06/stocks-to-watch-out-for-this-week/

Investors Lambast SEC for Double-Standards
https://www.businesspost.ng/2018/08/06/investors-lambast-sec-for-double-standards/

NSE Unveils X-Pay to Ease Payments by Investors
https://www.businesspost.ng/2018/08/06/nse-unveils-x-pay-to-ease-payments-by-investors/

Market Anticipates N452b Treasury Bills Maturing This Week
https://www.businesspost.ng/2018/08/06/market-anticipates-n452b-treasury-bills-maturing-this-week/

By Dipo Olowookere

The United Kingdom authorities have rejected a consignment of agricultural produce from Nigeria worth N5 million for failing to meet up with the expected requirements.

Head of Inspection at the Nigerian Agricultural Quarantine Service (NAQS) in the South West Zone, Dr Moses Adewumi, made this disclosure at a news conference.

He disclosed that the consignment contained bitter leaf, wrapping leaf, pumpkin leaf, waterleaf, native pear, backyard eggs, amongst others.

Mr Adewumi, however, emphasised that the goods were rejected because they did not have phytosanitary certificates.

Business Post reports that a phytosanitary certificate is an official document issued to indicate that consignments of plants, plant products or other regulated articles meet specified phytosanitary import requirements and are in conformity with the certifying statement of the appropriate model certificate.

Mr Adewumi informed reporters at the briefing that the Food and Agriculture Organisation (FAO) requires that within the movement of agricultural produce or commodities around the globe, the commodities must be free from pest.

According to him, “On this case, now we have as much as about 41 Worldwide Standard For Phytosanitary Measures (ISPM), which guides the transfer of commodities.

“When you find yourself sending commodities beyond the shores of the country, the worldwide process is that it should be accompanied with a phytosanitary certificate, that’s the well-being of the commodity being exported.”

He said, “Any commodity not accompanied by the certificates is against the law,” explaining that, “That’s the reason all these consignments have been returned to the nation (Nigeria) due to the fact that most of them weren’t accompanied with phytosanitary certificates.”

But Mr Adewumi said NAQS was making efforts to ensure exporters and non-exporters know about these requirements to prevent such from happening in the future.

Recall that last year, some consignments of yam exported from Nigeria to the USA at a ceremony in Lagos attended by the Minister of Agriculture and Rural Development, Mr Audu Ogbeh, were rejected on account of poor quality.

https://www.businesspost.ng/2018/08/06/uk-rejects-consignment-of-agric-produce-from-nigeria/

Moody's Assigns first-time B2 Issuer Rating to Ecobank
https://www.businesspost.ng/2018/08/04/moodys-assigns-first-time-b2-issuer-rating-to-ecobank/

GCR Assigns BBB(NG), A2(NG) Ratings to Eterna
https://www.businesspost.ng/2018/08/04/gcr-assigns-bbbng-a2ng-ratings-to-eterna/

Staco Insurance Fires Sakiru Oyefeso as CEO over Fraud
https://www.businesspost.ng/2018/08/03/staco-insurance-fires-sakiru-oyefeso-as-ceo-over-fraud/

Information Determines Value of Stock—ASHON
https://www.businesspost.ng/2018/08/03/information-determines-value-of-stock-ashon/

Dem don start the solar business for a while now. I even made efforts to get one, but their customer service na mess. I just fashied them.

maishai:
Going thru forte oil report and I can see they are now doing solar.... So I ask how are they going to compete with all this alaba boys .... Anybody with info on their strategy

NSE Reclassifies Fidson to Mid-Priced Stock
https://www.businesspost.ng/2018/08/03/nse-reclassifies-fidson-to-mid-priced-stock/

By Dipo Olowookere

One of the leading investment research firms in Nigeria, FSDH, has predicted a marginal drop in the inflation rate for the month of July 2018.

The National Bureau of Statistics (NBS) is due to release the inflation rate for the month of July on Wednesday, August 15, 2018.

In the month of June 2018, the inflation rate moderated to 11.23 percent year-on-year and analysts at FSDH are saying this would further drop to 11.01 percent.

Economic expert at the company explained that the expected decrease in the inflation rate would be largely due to the base effect of the previous year with a slower increase observed in the price of some food items in July than in June.

The Food Price Index (FPI) published by the Food and Agriculture Organization (FAO) for the month of July 2018 indicated that the index averaged 168 points in July 2018, 3.73 percent lower than the June value, and the first significant month-on-month decline since December 2017.

According to the FAO, all the sub-indices reflected a notable drop in values. The FAO Dairy Index fell by 6.59 percent from June 2018 as the prices of butter, cheese, skim milk powder and whole milk powder eased in July.

The FAO Sugar Price Index was down by 6.01 percent on the heels of reports on improved supply conditions in the main sugar producing region of India and Thailand.

The FAO Cereal Price Index was down by 3.58 percent, largely driven by weaker export quotations for maize, rice and wheat. The FAO Vegetable Oil Price Index was down by 2.88 percent, marking a two and half year low and the sixth consecutive month fall in the index.

This was as a result of abundant inventory levels coupled with a favourable outlook for global supply and weak export demand of soy and palm oil.

The FAO Meat Price Index was also down by 1.88 percent as prices of bovine, pig and poultry meat declined due to reduced demand.

According to FSDH, its analysis indicated that the value of the Naira depreciated marginally at the Nigerian Autonomous Foreign Exchange (NAFEX), while it appreciated at the parallel market to end July 2018.

The value of the Naira depreciated by 0.03 percent to close at $/N361.20 at the NAFEX market while it appreciated by 0.84 percent at the parallel market to close at $/N359 to end July.

The general decline in the international prices of food coupled with the appreciation in the value of the Naira at the parallel market muted the prices of imported consumer goods in Nigeria between the two months under review.

The prices of most of the food items the firm monitored in July 2018 moderated compared with June, while a few items recorded price appreciation.

“The movement in the prices of food items during the month led to a 1.18 percent increase in our Food and Non-Alcoholic Index. This Index increased year-on-year by 12.57 percent, up from 248.82 points recorded in July 2017.

“We also observed an increase in the prices of Transport and Housing, Water, Electricity, Gas & Other Fuels divisions between June and July 2018.

“We estimate that the increase in the Composite Consumer Price Index (CCPI) in July would produce an inflation rate of 11.01 percent, lower than the 11.23 percent recorded in June,” the Inflation Watch report released on Friday said.

https://www.businesspost.ng/2018/08/03/july-inflation-to-drop-to-11-01-from-11-23-fsdh/

July Inflation to Drop to 11.01% from 11.23%—FSDH
https://www.businesspost.ng/2018/08/03/july-inflation-to-drop-to-11-01-from-11-23-fsdh/

Notore Lists N100.75b Shares on Stock Exchange at N62.50k Per Share
https://www.businesspost.ng/2018/08/03/notore-lists-n100-75b-shares-on-stock-exchange-at-n62-50k-per-share/

Guinness Nigeria Appoints Magunda as New CEO as Ndegwa Resigns
https://www.businesspost.ng/2018/08/03/magunda-replaces-ndegwa-as-md-ceo-of-guinness-nigeria/

CBN Rakes N363b from N600 OMO Bills Offered to Investors
https://www.businesspost.ng/2018/08/03/cbn-rakes-n363b-from-n600-omo-bills-offered-to-investors/

GNI Delists from NSE over Drop in Trading Volumes, Others
https://www.businesspost.ng/2018/08/02/gni-delists-from-nse-over-drop-in-trading-volumes-others/

Carnation Registrars to Address Dividend Clearing Issues
https://www.businesspost.ng/2018/08/02/carnation-registrars-to-address-dividend-clearing-issues/

FCMB Bank (UK) Limited Launches Personal and Business Banking Proposition to Deepen Inclusiveness
https://www.businesspost.ng/2018/08/02/fcmb-bank-uk-limited-launches-personal-and-business-banking-proposition-to-deepen-inclusiveness/

T-Bills Market Quiet as PMA Rates Slightly Decline
https://www.businesspost.ng/2018/08/01/t-bills-market-quiet-as-pma-rates-slightly-decline/

By Modupe Gbadeyanka

Nigeria’s Minister of Finance, Mrs Kemi Adeosun, on Wednesday, August 01, 2018, attended the weekly Federal Executive Council (FEC) meeting in Abuja.

The meeting today was presided over by President Muhammadu Buhari, who embarks on a 10-day vacation to London tomorrow.

The Finance Minister was pictured at the FEC meeting looking radiant as she chats with other members of the council.

Mrs Adeosun was recently accused of forging an exemption certificate of the National Youth Service Corps (NYSC).

Since the report broke over three weeks ago, the Minister has remained silent on the matter, refusing to speak on it.

Also, President Buhari, who is regarded to be Mr Integrity, has not spoken on the saga, while the management of the NYSC only said it was investigating the issue.

https://www.businesspost.ng/2018/08/01/photos-adeosun-attends-fec-meeting-amid-nysc-certificate-mess/

By Modupe Gbadeyanka

The first trading day of the month of August 2018 started on bearish note with the political tension in the country gradually taking its toll on the stock market.

In the past few days, politicians in the ruling All Progressives Congress (APC) had been defecting to the opposition Peoples Democratic Party (PDP) with the Senate President, Mr Bukola Saraki, announcing his defection last night and the Governor of Sokoto State, Mr Aminu Tambuwal, announcing his today.

With this cross-carpeting heating up the polity ahead of the 2019 general elections, investors are trading cautiously so as not to be caught unawares.

Business Post reports that on the floor of the Nigerian Stock Exchange (NSE) on Wednesday, investors embarked on profit-taking, leaving the market pointing south at the close of business.

Our correspondent reports that the local stock market depreciated today by 1.09 percent with the Year-to-Date (YtD) returns closing at -4.26 percent.

In addition, while the All-Share Index (ASI) decreased on Wednesday by 404.95 points to close at 36,612.83 points, the market capitalization reduced by N147 billion to settle at N13.263 trillion.

Like in the previous session, the market breadth finished negative with 22 stocks appreciating in value as against the 24 equities, which depreciated at the close of transactions on Wednesday.

Nestle Nigeria led the price losers’ table today after shedding N40 to finish the day at N1560 per share.

It was followed by International Breweries, which fell by N3.60k to close at N33.40k per share, and CAP, which declined by N3.50k to end at N31.50k per share.

Dangote Cement depreciated by N3 to close at N231 per share, while Nigerian Breweries lost N2 to settle at N103 per share.

On the other side, it was a rewarding session for Total Nigeria as the stock appreciated by N7 to settle at N190 per share.

Okomu Oil gained N6.30k to end at N81 per share, while Beta Glass increased by N1.05k to move up to N78 per share.

Lafarge went up by 50 kobo to close at N28 per share, while Ecobank garnered 25 kobo to finish at N20.80k per share.

Business Post reports further that at the close of trading today, the volume of shares bought and sold by investors decreased by 1.94 percent, while the value increased by 10.91 percent.

A total of 240.2 million exchanged hands today in 3,494 deals worth N5 billion compared with the 245 million equities worth N4.5 billion transacted yesterday at the stock market.

Like it happened on Tuesday, financial stocks dominated the activity chart on Wednesday with 191.9 million shares sold for N2.8 billion, while stocks in the Consumer Goods space followed with 22.7 million units transacted for N1.8 billion.

A further breakdown showed that Zenith Bank shares emerged the most traded at the market today with a total of 94.9 million units traded for N2.2 billion.

It was followed by United Bank for Africa (UBA), which exchanged 28.7 million units valued at N271.9 million, and Nigerian Breweries, which traded 15.1 million units worth N1.6 billion.

Fidelity Bank sold 12.6 million shares for N23.6 million, while Sterling Bank transacted 8.2 million equities worth N11.7 million.

A look at the performances of the sectors in the market showed that while the NSEFBT10 lost 2.31 percent, the NSEBNK10 went down by 0.66 percent and the NSEIND declined by 0.42 percent.

https://www.businesspost.ng/2018/08/01/stock-market-loses-n147b-as-political-tension-heightens/

GTBank to Begin Banking Services on WhatsApp
https://www.businesspost.ng/2018/08/01/gtbank-to-begin-banking-services-on-whatsapp/


Jimoh Ibrahim to List Bank Shares on Stock Exchange
https://www.businesspost.ng/2018/08/01/jimoh-ibrahim-to-list-bank-shares-on-stock-exchange/


UBA’s Leo Takes Banking Operations to WhatsApp
https://www.businesspost.ng/2018/08/01/ubas-leo-takes-banking-operations-to-whatsapp/

BREAKING: Sokoto Governor Aminu Tambuwal Leaves APC
https://www.businesspost.ng/2018/08/01/breaking-sokoto-governor-aminu-tambuwal-leaves-apc/

Transcorp Quits Fruit Juice Concentrate Business
https://www.businesspost.ng/2018/08/01/transcorp-quits-fruit-juice-concentrate-business/

New Solvency Requirement will Boost Financial Health of Insurance Firms—Expert
https://www.businesspost.ng/2018/08/01/new-solvency-requirement-will-boost-financial-health-of-insurance-firms-expert/

T-Bills Market to Trade Cautiously as CBN Conducts PMA Today
https://www.businesspost.ng/2018/08/01/t-bills-market-to-trade-cautiously-as-cbn-conducts-pma-today/

Diamond Bank’s Recent Performances Worry Shareholders, Investors
https://www.businesspost.ng/2018/07/31/diamond-banks-recent-performances-worry-shareholders-investors/

Union Bank Will Focus More on Recovery of Bad Loans—CEO
https://www.businesspost.ng/2018/07/31/union-bank-will-focus-more-on-recovery-of-bad-loans-ceo/

Market Anticipates N540b Maturing Bills Thursday
https://www.businesspost.ng/2018/07/31/market-anticipates-n540b-maturing-bills-thursday/

T-Bills Yields Close at 11.95% as Money Market Rates Gain 2.63%
https://www.businesspost.ng/2018/07/30/t-bills-yields-close-at-11-95-as-money-market-rates-gain-2-63/

By Modupe Gbadeyanka

The recent decline in the external reserves of Nigeria continued last week, recording a further drop by 0.30 percent.

As at Friday, July 26, 2018, the foreign reserves of Africa’s largest market and economy was down to $47.25 billion.

A look at the foreign exchange market last week showed that the Nigerian Naira further depreciated week-on-week (w-o-w) against the US Dollar at the Investors & Exporters Forex Window (I&E FXW) by 0.19 percent to close at N362.28.

However, the local currency remained unchanged against the Dollar at the Bureau De Change segment and the parallel (black) market to close at N357/$ and N360/$ respectively as Central Bank of Nigeria (CBN) sustained its special intervention.

Also, Naira/Dollar rate also closed flat at the interbank foreign exchange market at N330/$ amid weekly injections by apex bank of $210 million into the foreign exchange market via the Secondary Market Intervention Sales (SMIS); of which $100 million was allocated to Wholesale (SMIS), $55 million was allocated to Small and Medium Scale Enterprises and $55 million was sold for invisibles.

Meanwhile, all dated forward contracts at the interbank over-the-counter (OTC) segment depreciated – spot rate,1 month, 2 months, 3 months and 6 months contracts lost 0.02 percent, 0.19 percent, 0.24 percent, 0.32 percent and 0.69 percent to close N305.90/$, N365.43/$, N368.81/$, N372.34/$ and N385.09/$ respectively.

“This week, we expect stability alternative forex market segments amid sustained CBN intervention therein,” analysts at Cowry Asset said.

https://www.businesspost.ng/2018/07/30/nigerias-external-reserves-further-dip-by-0-30-to-47-2b/