₦airaland Forum

Investors Anticipate N216b Maturing Bills via Secondary Market
https://www.businesspost.ng/2018/06/04/investors-anticipate-n216b-maturing-treasury-bills-via-secondary-market/

Compliance with Corporate Governance Code Very Low in Nigeria—SEC
https://www.businesspost.ng/2018/06/01/compliance-with-corporate-governance-code-very-low-in-nigeria-sec/

By Dipo Olowookere

The Nigerian Stock Exchange (NSE) continued its downward movement on Friday as the equity market sank deeper by 3.38 percent with the year-to-date gain shrinking to -3.73 percent.

Business Post reports that the All-Share Index (ASI) suffered its heaviest loss this year after going down by 1288.25 points to finish at 36,816.29 points, while the market capitalisation depreciated by N466.6 billion to settle at N13.336 trillion.

Also, the volume of equities transacted by investors at the market decreased by 68.05 percent, while the value declined by 89.89 percent.

A total of 516.8 million shares were sold on Friday in 5,031 deals worth N7.2 billion compared with the 1.6 billion equities traded on Thursday in 5,166 deals valued at N71.2 billion.

It was observed that the Financial Services sector led the activity chart with 458 million shares transacted for N5 billion with the Consumer Goods sector following with 21.4 million shares exchanged for N1.7 billion.

On the price movement chart, Nestle Nigeria emerged the biggest price loser after losing N42.50k to close at N1430 per share.

It was followed by Dangote Cement, which fell by N17 to finish at N223 per share, and Total Nigeria, which declined by N10.30k to settle at N201.70k per share.

Guinness Nigeria depreciated by N5 to end at N95 per share, while Nigerian Breweries decreased by N4.90k to close at N103 per share.

At the other side, CCNN topped the gainers’ table at the close of business on Friday, going up by N1.30k to end at N27.95k per share.

It was trailed by Access Bank, which increased by 55k to close at N10.95k per share, and Eterna, which went up by 30k to finish at N6.33k per share.

UBA grew by 20k to close at N11 per share, while Fidelity Bank appreciated by 9k to settle at N1.99k per share.

https://www.businesspost.ng/2018/06/02/nigerian-equities-lose-n467b-friday-as-panic-selling-persists/

Naira Appreciates by 0.29% at I&E, Trades Flat at Black Market
https://www.businesspost.ng/2018/06/01/naira-appreciates-by-0-29-at-ie-trades-flat-at-black-market/

CBN Mops up Excess Liquidity Inflows with N561b OMO Sales
https://www.businesspost.ng/2018/06/01/cbn-mops-up-excess-liquidity-inflows-with-n561b-omo-sales/

Barclays Africa to Join Nigerian Stock Exchange July
https://www.businesspost.ng/2018/06/01/barclays-africa-to-join-nigerian-stock-exchange-july/

May & Baker to Sell Asset in Lagos to Raise Capital
https://www.businesspost.ng/2018/05/30/may-baker-to-sell-asset-in-lagos-to-raise-capital/

T-Bills Market Trades Bullish as Overnight Rate Drops to 2.50%
https://www.businesspost.ng/2018/05/31/t-bills-market-trades-bullish-as-overnight-rate-drops-to-2-50/

S&P Affirms Ratings on Stanbic IBTC Bank, Predicts Robust Earnings in 2018
https://www.businesspost.ng/2018/05/31/sp-affirms-ratings-on-stanbic-ibtc-bank-predicts-robust-earnings-in-2018/

S&P Affirms Fidelity Bank Ratings, Raises Concerns on High Loan Concentration
https://www.businesspost.ng/2018/05/29/sp-affirms-fidelity-bank-ratings-raises-concerns-on-high-loan-concentration/

FG Lists ‘Resetting the Economy’ as Achievement of Buhari
https://www.businesspost.ng/2018/05/29/fg-lists-resetting-the-economy-as-achievement-of-buhari/

Consolidated Hallmark Insurance Assures Shareholders More Dividends
https://www.businesspost.ng/2018/05/28/consolidated-hallmark-insurance-assures-shareholders-more-dividends/

Stanbic IBTC Pension Managers Invests N350b in Nigerian Stock Market
https://www.businesspost.ng/2018/05/28/stanbic-ibtc-pension-managers-invests-n350b-in-nigerian-stock-market/

By Dipo Olowookere

As President Muhammadu Buhari marks his third year in office on Tuesday, May 29, 2018, the Nigerian government has listed ‘resetting the economy’ as one of his achievements in three years.

In a post on its Twitter handle on Monday, the Nigerian government (@Aso Rock), it was said that since Mr Buhari took over from the past administration, he has also grown what people eat, made business work, plugged leakages, invested in people, secured the country, brought about reforms in the judiciary and come up with new vision for the Niger Delta.

According to the Federal Government, President Buhari reset the nation’s economy by coming up with the Economic Recovery and Growth Plan (ERGP), which was launched in April 2017.

The economic plan charts a course for the Nigerian economy over the next four years (2017–2020) with the vision to restore economic growth, invest in Nigerians, and to build a globally competitive economy.

Government aims to achieve these by focusing on five execution priorities: stabilizing the macroeconomic environment; achieving agriculture and food security; ensuring energy efficiency (especially in power and petroleum products); improving transportation infrastructure; and driving industrialization, primarily through SMEs.

To fast-track the implementation of the ERGP, the Federal Government launched the ERGP Focus Labs, as a targeted 6-week intervention (March to April 2018) bringing together all stakeholders to identify bureaucratic bottlenecks impacting medium-scale and large-scale investment projects in Nigeria, and then generate ideas and resources to resolve them.

Government said the just-concluded Phase 1 of the ERGP Focus Labs identified private-sector projects worth about $22.5billion and with a potential for 500,000 jobs (in Agriculture, transportation, manufacturing and processing, power and gas) for unlocking by 2020.

According to the Nigerian authorities, Mr Buhari returned the economy to the path of growth, after the recession of 2016-17 with the GDP recording 1.95 percent growth in the first quarter of 2018.

It was stated that the Buhari administration’s priority sectors of Agriculture and Solid Minerals maintained consistent growth throughout the recession.

“Inflation has fallen for the fifteenth (15th) consecutive month, from 18.7 percent in January 2017 to 12.5 percent as of April 2018.

“External Reserves of $47.5 billion are the highest in 5 years, and double the size as of October 2016.

“Total exports in 2017 were 59.47% higher than for 2016. In 2017, agriculture exports grew 180.7% above the value in 2016.

“In 2017, raw material exports grew 154.2% above the value in 2016. In 2017, solid minerals exports grew 565% above the value in 2016. In 2017, exports of manufactured goods grew 26.8% above the value in 2016. The first quarter of 2018 saw the fourth consecutive quarterly increase in capital importation since Q2 2017.

“The total value of capital imported in the quarter stood at $6.32 billion, which is a year-on-year increase of 594.03%, and a 17.11% growth over the figure reported in the previous quarter. The new FX Window introduced by the CBN in April 2017 now sees an average of $1 billion in weekly turnover, and has attracted about $25 billion in inflows in its first year (and a total turnover of $47.14 billion), signalling rising investor confidence in Nigeria.

“Nigeria’s stock market ended 2017 as one of the best-performing in the world, with returns in excess of 40 percent. Five (5) million new taxpayers added to the Tax Base since 2016, as part of efforts to diversify government revenues. Tax Revenue increased to N1.17 trillion in Q1 2018, a 51% increase on the Q1 2017 figure.

“N2.7 trillion spent on infrastructure in 2016 and 2017 fiscal years, an unprecedented allocation in Nigeria’s recent history. Fourteen (14) moribund Blending Plants revitalized so far under the Presidential Fertilizer Initiative (PFI); with a total capacity of 2.3 million MT of NPK fertilizer.

“The contribution of Solid Minerals’ to the Federation Account rose five-fold from N700 million in 2015 to N3.5 billion in 2017,” the Nigerian authorities said.

https://www.businesspost.ng/2018/05/29/fg-lists-resetting-the-economy-as-achievement-of-buhari/

T-Bills Rates to Rise as CBN Intensifies Liquidity mop up
https://www.businesspost.ng/2018/05/28/t-bills-rates-to-rise-as-cbn-intensifies-liquidity-mop-up/

Sell-Off Across African Markets as Foreign Investors Cut Exposure
https://www.businesspost.ng/2018/05/27/sell-off-across-african-markets-as-foreign-investors-cut-exposure/


Fidelity Bank Plans Acquisition of Other Banks for Tier-1 Status
https://www.businesspost.ng/2018/05/25/fidelity-bank-plans-acquisition-of-other-banks-for-tier-1-status/

Dear SBG04, I hope you know that the late passage of the 2018 budget had a negative effect on the market. Now, what caused the late passage; disagreement between the executive and the senate.

With foreign investors knowing that election in Nigeria is just 9 months away and the budget has not been signed yet, won't they panic, knowing full well that six or five months to elections in Nigeria are used for preparations by politicians?

This and others are what investors weigh to readjust their portfolio compositions. Nobody wants to be caught unawares.

And to end this, when dog bites man, it is no NEWS, but when man bites dog, it is.

SBG04:
Mr dipoolowoo and business day, please let's be very careful with the kind of Journalism we practise. Emerging markets worldwide have been tanking since rates increased in the US. Rates in American securities are around 3.1% now, the highest since 2012. Emerging markets like Egypt, Argentina and South Africa have been feeling the heat from FPI withdrawals since February. Nigeria just started feeling it last month. The naira is now falling on the I&E window even with increasing reserves, which is unusual.
We don't hear South Africans or Argentinians playing politics with simple international economics. It's stupid Nigerians that always turn something so simple upside down. Are you telling me that out of 180million Nigerians, nobody opens Bloomberg.com or watches CNBC? Or even CNN money? It's just shameful!

By Dipo Olowookere

The heating up of the political terrain in the country is gradually having a negative effect on the Nigerian stock market, Business Post reports.

During the just-concluded trading week, the Nigerian Stock Exchange (NSE) lost about N416 billion as a result of huge selling pressure at the market.

Analysts had predicted that trading during the week would be positive as a result of improving macroeconomic indices in the domestic space, especially with the further ease in the inflation rate, positive GDP growth, passage of the 2018 budget and retention of the interest at 14 percent by the apex bank.

However, these did nothing to drive the equity market up last week as the stock market did not record any single rise throughout last week.

This was attributed to profit-taking activities by investors, especially foreign investors, who are parts of the major drivers of the local bourse. It was observed that foreign investors are reassessing their portfolio compositions so as to limit their losses as a result of political intrigues in the country ahead of the 2019 general elections.

Business Post reports that at the close of transactions last week, the All-Share Index (ASI) depreciated by 2.84 percent to settle at 39,323.62 points, while the market capitalization decreased by N416 billion to finish at N14.244 trillion against its previous close of N14.660 trillion.

During the week also, a total of 14 equities appreciated in price, lower than 20 in the previous week, while 61 stocks depreciated in price, higher than 54 equities of the previous week, and 94 counters remained unchanged, lower than 95 recorded in the preceding week.

A total turnover of 1.372 billion shares worth N16.022 billion in 21,099 deals were traded last week by investors on the floor of the exchange in contrast to a total of 1.457 billion shares valued at N23.666 billion that exchanged hands the previous week in 19,674 deals.

It was further observed that the Financial Services Industry, measured by volume, led the activity chart with 1.010 billion shares valued at N8.670 billion traded in 12,049 deals; thus contributing 73.62 percent and 54.11 percent to the total equity turnover volume and value respectively.

The Services Industry followed with 107.246 million shares worth N229.715 million in 712 deals, while the third place was occupied by Consumer Goods Industry with a turnover of 71.946 million shares worth N5.506 billion in 3,818 deals.

Trading in the top three equities; Zenith Bank, African Alliance Insurance Company and Ikeja Hotel, measured by volume, accounted for 276.876 million shares worth N2.939 billion in 2,112 deals, contributing 20.18 percent and 18.35 percent to the total equity turnover volume and value respectively.

The top gainer for the week was Ikeja Hotels, which rose by 44.94 percent to settle at N2.58k per share.

It was followed by MRS Oil Nigeria, which appreciated by 21.18 percent to finish at N36.05k per share, and Law Union and Rock Insurance, which increased by 20.99 percent to close at 98k per share.

Niger Insurance grew by 19.05 percent to end at 25k per share, while Consolidated Hallmark Insurance increased by 11.11 percent to finish at 30k per share.

On the flip side, Eterna closed the week as the worst performing stock after shedding 22.27 percent of its value to close at N5.27k per share.

It was trailed by Japaul Oil, which went down by 20 percent to end at 24k per share, and Dangote Flour, which decreased by 16.82 percent to close at N8.90k per share.

Transcorp declined by 16.35 percent to close at N1.33k per share, while AIICO Insurance fell by 16.18 percent to end at 57k per share.

Also traded during the week were a total of 70 units of Exchange Traded Products (ETPs) valued at N1,943.00 executed in 7 deals, compared with a total of 153,246 units valued at N4.009 million that was transacted in the preceding week in 22 deals.

In addition, a total of 10,754 units of Federal Government bonds valued at N11.412 million were traded during the week in 5 deals, compared with a total of 7,508 units valued at N7.506 million transacted in the previous week in 12 deals.

https://www.businesspost.ng/2018/05/27/nigerian-stock-market-loses-n416b-in-one-week-amid-political-anxiety/

Like we always say here, to learn about the stock market in Nigeria, take time to read the threads from the beginning. I hope this helps.

But generally, the stock market is highly volatile and you must be ready to lose money to gain. Like they say, experience is the best teacher.

nkemjacob2:
investing in stock market in general

Do you mean the Ibeto Cement deal?

nkemjacob2:
I'm totally confused about the investment. I would like if somebody put me through

Will this start another cement war in Nigeria if it eventually pulls through?

Ibeto Cement Plans Public Listing with $850m Investment Deal with Milost
https://www.businesspost.ng/2018/05/24/ibeto-cement-plans-public-listing-with-850m-investment-deal-with-milost/

Shareholders Okay Sale of Forte Oil's Assets in Nigeria, Ghana
https://www.businesspost.ng/2018/05/23/shareholders-okay-sale-of-forte-oils-assets-in-nigeria-ghana/

eTranzact Appoints Acting Managing Director as Obi Steps Down
https://www.businesspost.ng/2018/05/22/etranzact-appoints-acting-managing-director-as-obi-steps-down/

Brent Crude Oil Hits $80 per Barrel Again
https://www.businesspost.ng/2018/05/22/brent-crude-oil-hits-80-per-barrel-again/

CBN Orders Audit of eTranzact over N11b Fraud, Sacks Directors
https://www.businesspost.ng/2018/05/22/cbn-orders-audit-of-etranzact-over-n11b-fraud-sacks-directors/

Treasury Bills Yields Close at 13% as Market Trades Bullish
https://www.businesspost.ng/2018/05/22/treasury-bills-yields-close-at-13-as-market-trades-bullish/

Stock Recommendation for this Week (May 21)
https://www.businesspost.ng/2018/05/21/stock-recommendation-for-this-week-may-21/

Ikeja Hotels Resumes Trading on NSE after Two-Year Suspension
https://www.businesspost.ng/2018/05/20/ikeja-hotels-resumes-trading-on-nse-after-two-year-suspension/

Fundamentally Sound Stocks to Lift Equity Market This Week—Analysts
https://www.businesspost.ng/2018/05/21/fundamentally-sound-stocks-to-lift-equity-market-this-week-analysts/

Nigeria's GDP Records 1.95% Growth in Q1 2018—NBS
https://www.businesspost.ng/2018/05/21/nigerias-gdp-records-1-95-growth-in-q1-2018-nbs/

Brokerage Firm Unveils App to Ease Treasury Bills Investment
https://www.businesspost.ng/2018/05/21/brokerage-firm-unveils-app-to-ease-treasury-bills-investment/

CBN Sells N75b Treasury Bills in One Week
https://www.businesspost.ng/2018/05/21/brokerage-firm-unveils-app-to-ease-treasury-bills-investment/

Sterling Bank May Change Operational Structure to Boost Performance
https://www.businesspost.ng/2018/05/18/sterling-bank-may-change-operational-structure-to-boost-performance/

BREAKING: Supreme Court Orders Erastus Akingbola to Face N5b Fraud Trial
https://www.businesspost.ng/2018/05/18/breaking-supreme-court-orders-akingbola-to-face-n5b-fraud-trial/

Investors Snub CBN OMO Auction on System Liquidity Strain
https://www.businesspost.ng/2018/05/18/investors-snub-cbn-omo-auction-on-system-liquidity-strain/

Chai, I for like go dis Diamond Bank AGM next month o just to observe how shareholders go react to 'our impressive 2017 results.' Make we dey look sha.

Shareholders Approve Lafarge Africa N100b Bond, N13b Dividend
https://www.businesspost.ng/2018/05/17/shareholders-approve-lafarge-africa-n100b-bond-n13b-dividend/

Forbearance Window: SEC Vows to Address Issues Raised by Investors
https://www.businesspost.ng/2018/05/17/forbearance-window-sec-vows-to-address-issues-raised-by-investors/

By Modupe Gbadeyanka

The Nigerian Senate on Wednesday eventually passed the 2018 Appropriation Bill and would be forwarded to President Muhammadu Buhari for his assent.

The 2018 budget is estimated to be N9.12 trillion.

On Tuesday, report of the 2018 Appropriation Bill was laid before the Senate by Chairman of the Senate Committee on Appropriations, Mr Danjuma Goje.

Today, he briefed his colleagues on the components of the budget, saying it contains N3.5 trillion for recurrent (non-debt) expenditure, N2.9 trillion for development fund for capital expenditure, N2.2 trillion for debt servicing, N530.4 billion for statutory transfer and N190 billion for sinking fund for maturing loans.

While debating on the budget before it was passed, the lawmakers said it was unfortunate that Nigerians believed that the passage was delayed by the Senate when it was the executive that actually did.

They said Ministries, Departments and Agencies (MDAs) of Federal Government failed to defend their budget estimates until they were directed to do so in March this year.

President Muhammadu Buhari had presented the budget of N8.612 trillion to the parliament for passage in November 2017.

But the National Assembly raised the estimate to N9.12 trillion.

Details later.

https://www.businesspost.ng/2018/05/16/breaking-senate-passes-2018-budget-of-n9-12tr/

BREAKING: Finally, Senate Passes 2018 Budget of N9.12tr
https://www.businesspost.ng/2018/05/16/breaking-senate-passes-2018-budget-of-n9-12tr/