₦airaland Forum

Foreign Investors Pull Out N75b from Stock Market in January 2018
https://www.businesspost.ng/2018/03/01/foreign-investors-pull-n75b-stock-market-january-2018/

Seplat Issues Dollar Bonds to Refinance Debts
https://www.businesspost.ng/2018/03/01/seplat-issues-dollar-bonds-refinance-debts/

By Dipo Olowookere

The Nigerian Stock Exchange (NSE) kicked off 2018 on a very positive note and in the first trading month of the year, the market was busy with investors making gains.

This followed the over 40 percent gained by the local bourse in 2017, which made it to be among the top five performing equities market in the world last year.

But a report released by the NSE on Wednesday showed that in January 2018, foreign investors pulled out a total of N74.64 billion from the stock market.

This was against N33.05 billion cashed out by foreign investors in December 2017, representing 125.84 percent increase in the foreign investments outflows in the period under review.

Furthermore, foreign inflows decreased by 47.10 percent from N173.43 billion in December 2017 to N91.75 billion in January 2018.

In its report titled Domestic & Foreign Portfolio Participation in Equity Trading for January 2018, the nation’s bourse said total transactions during the period under review decreased by 17.96 percent from N480.80 billion recorded in December 2017 to N394.44 billion (about $1.29 billion) in January 2018.

However, in comparison to the same period in 2017, total transactions increased significantly by 313.81 percent from N95.32 billion recorded in 2017.

It said foreign investors conceded about 15.64 percent of trading to domestic investors. Total foreign transactions decreased by 19.42 percent from N206.48 billion recorded in December 2017 to N166.39 billion in January 2018.

In addition, domestic transactions also decreased by 16.87 percent from N274.32 billion to N228.05 billion within the same period.

Since 2011, foreign transactions have consistently outperformed domestic transactions. However, domestic transactions marginally outperformed foreign transactions in 2016 and 2017, accounting for 52 percent of the total transaction value in 2017.

Also, foreign transactions which stood at N1.539 trillion in 2014 declined to N518 billion in 2016, but increased significantly by 133 percent to N1.208 trillion in 2017 thereby accounting for about 48 percent of total transactions in 2017.

Over an 11-year period, domestic transactions have decreased by 62.46 percent from N3.556 trillion in 2007 to N1.335 trillion in 2017.

However, there was a significant increase in 2017 by 111 percent from N634 billion recorded in 2016.

https://www.businesspost.ng/2018/03/01/foreign-investors-pull-n75b-stock-market-january-2018/

NNPC in Final Talks With Oando, MRS Oil, Others to Revamp Refineries
https://www.businesspost.ng/2018/02/28/nnpc-final-talks-oando-mrs-oil-others-revamp-refineries/

UBA Obtains $100m Loan from Chinese Bank to Fund SMEs
https://www.businesspost.ng/2018/02/28/uba-obtains-100m-loan-chinese-bank-fund-smes/

Diamond Bank Won’t Raise Fresh Capital From Stock Market—CEO
https://www.businesspost.ng/2018/02/27/diamond-bank-wont-raise-fresh-capital-stock-market-ceo/

In simple words, T-bills bought directly from the CBN via your banks and other issuing houses are from the primary market and they are in three tenors (91, 182 and 364 days), while those bought from a third party, eg, from someone who had already bought from the CBN are from the secondary market. It means you will usually not buy t-bills with full maturity of 91, 182 and 364 days at the secondary market, you get shorter tenors.

I hope this explains it.

Ikmontana1:
pls wat is d difference btw primary n secondary market in treasury bills.?

CBN Auctions N260b Treasury Bills at Primary Market Tomorrow
https://www.businesspost.ng/2018/02/27/cbn-auctions-n260b-treasury-bills-primary-market-tomorrow/

By Dipo Olowookere

Data released by the National Bureau of Statistics (NBS) on Tuesday, February 27, 2018 revealed that Nigeria’s Gross Domestic Product (GDP) grew in the fourth quarter of 2017 by 1.92 percent (year-on-year) in real terms, maintaining its positive growth since the emergence of the economy from recession in the second quarter of 2017.

According to the stats office, this growth is compared to a contraction of –1.73 percent recorded in Q4 2016 and a growth of 1.40 percent recorded in 2017.

It said further that quarter-on-quarter real GDP growth was 4.29 percent.

The NBS disclosed also that the year 2017 recorded a real annual growth rate of 0.83 percent higher by 2.42 percent than –1.58 percent recorded in 2016.

In the quarter under review, aggregate GDP stood at N31,209,137.74 million in nominal terms higher when compared to N29,169,058.99 million in Q4 2016, resulting in a Nominal GDP growth of 6.99 percent.

This growth, the stats office said, is lower relative to growth recorded in Q4 2016 at 12.49 percent, while nominally, 2017 recorded an annual growth rate of 12.05 percent higher by 4.25 percent compared to 2016 annual growth of 7.80 percent.

The broad classification into the oil and non-oil sectors will give a clearer depiction of the Nigerian economy.

NBS noted that in the period under review, oil production averaged at 1.91 million barrels per day (mbpd), -0.12 million barrels lower than the daily average production recorded in the third quarter of 2017.

It said oil production during the quarter was higher by 0.15 million barrels per day relative to the corresponding quarter in 2016, which recorded an output of 1.76mbpd.

Real growth of the oil sector was 8.38 percent (year-on-year) in Q4 2017. This represents an incline of 26.08 percent relative to rate recorded in the corresponding quarter of 2016. Growth reduced by -17.50 percent when compared to Q3 2017 which was 25.89 percent.

Quarter-on-Quarter, the oil sector dropped by -25.52 percent in Q4 2017.

The annual growth of the oil sector stood at 4.79 percent higher than the previous year’s growth of -14.45 percent.

The Oil sector contributed 7.17 percent of total real GDP in Q4 2017, up from figure recorded in the corresponding period of 2016 and down from the preceding quarter, where it contributed 6.75 percent and 10.04 percent respectively.

The sector’s annual contribution was 8.68 percent in 2017 and 8.35 percent in 2016.

The non-oil sector grew by 1.45 percent in real terms during the reference quarter. This is higher by 1.78 percent point compared to the rate recorded same quarter, 2016 and 2.21 percent point higher than in the third quarter of 2017.

The non-oil sector recorded an annual growth of 0.47 percent compared to -0.22 percent in 2016. This sector was driven this quarter mainly by Agriculture (Crop), Trade and Transportation and storage.

In real terms, the Non-Oil sector contributed 92.83% to the nation’s GDP, lower from share recorded in the fourth quarter of 2016 (93.25 percent) but higher than in the third quarter of 2017 (89.96 percent). Annual contribution was 91.32 percent and 91.65 percent in 2016.

https://www.businesspost.ng/2018/02/27/nigerias-gdp-maintains-positive-growth-1-92-rise-q4-0-83-fy-2017/

Nigeria's GDP Maintains Positive Growth With 1.92% Rise in Q4, 0.83% FY 2017
https://www.businesspost.ng/2018/02/27/nigerias-gdp-maintains-positive-growth-1-92-rise-q4-0-83-fy-2017/

United Capital Declares 35 kobo Per Share Dividend as PBT Drops 13%
https://www.businesspost.ng/2018/02/27/united-capital-declares-35-kobo-per-share-dividend-pbt-drops-13/

Treasury Bills Yields Lose 0.04% on First Trading Day
https://www.businesspost.ng/2018/02/27/treasury-bills-yields-lose-0-04-on-first-trading-day/

Africa Prudential Proposes 40 kobo per share Dividend after 68% Rise in 2017 Profit
https://www.businesspost.ng/2018/02/26/africa-prudential-proposes-40-kobo-per-share-dividend-68-rise-2017-profit/

Stock Recommendation for this Week (February 26)
https://www.businesspost.ng/2018/02/26/stock-recommendation-week-february-26/

Total Nigeria Rewards Shareholders with N4.8b Dividend Despite Weak Results
https://www.businesspost.ng/2018/02/26/total-nigeria-rewards-shareholders-n4-8b-dividend-despite-weak-results/

Investors Anticipate N369b Maturing T-Bills at Primary, Secondary Markets
https://www.businesspost.ng/2018/02/26/investors-anticipate-n369b-maturing-t-bills-at-primary-secondary-markets/

Investors Reject CBN Directive on Dividend Payment by Banks, Threaten Lawsuit
https://www.businesspost.ng/2018/02/25/investors-reject-cbn-directive-dividend-payment-banks-threaten-lawsuit/

Nigeria to Lose More in UK Listing of Naira
https://www.businesspost.ng/2018/02/22/nigeria-lose-uk-listing-naira-fsdh/

NSE Launches Corporate Governance Index to Help Investors
https://www.businesspost.ng/2018/02/23/nse-launches-corporate-governance-index-help-investors/

CSCS in Investors' Good Books, Gains 48%
https://www.businesspost.ng/2018/02/23/cscs-investors-good-books-gains-48/

One of the leading investment research firms in Nigeria, FSDH Research, has revealed in a recent report that Nigeria stands to lose more in the recent trade deal with the United Kingdom, where the UK listed the local currency, Naira, as an acceptable lender tender for trade.

FSDH feared that the deal will not eventually favour Africa’s largest market.

Recently, the Export Credit Agency of the United Kingdom (UK), UK Export Finance (UKEF) announced trade incentives for Nigeria that will stimulate the importation of goods and services from the UK.

This is expected to ensure more exporters in the UK sell their goods and services in Nigeria as the incentives will remove some hindrances to trade between the UK and Nigeria.

The UKEF will guarantee a buyer credit loan to Nigerian borrowers in local currency (Naira) to finance purchase of capital goods and/or services from UK exporters.

Thus, it reduces the foreign currency risk for the import and avoids a variable debt service cost. UK will provide up to 85% of funding for projects containing at least 20% UK content. The loan will also benefit from a UK government-backed guarantee.

Many have lauded the proposal on the ground that it may reduce the demand for foreign exchange in Nigeria and consequently strengthen the value of the Naira.

However, FSDH Research analysed the historical trade figures between the UK and Nigeria to appropriately place the benefits in the arrangement in the right context.

Nigeria’s exports to the UK dropped significantly by 59% from N730bn in 2013 to N301bn in 2016 while the imports from the UK dropped marginally by 1% from N367bn in 2013 to N363bn in 2016.

We note that Nigeria’s exports is dominated by crude oil while Nigeria imports a variety of items from the UK. Thus Nigeria exports to the UK is more volatile than Nigeria’s imports increased to 10% as at Q3 2017.

The UK also accounts for an average of 4.75% of the total exports of Nigeria between 2013 and 2016. The figure dropped to 2% as at Q3 2017.

FSDH Research is of the view that the trade structure between the UK and Nigeria favours the UK. The proposed incentives may further place Nigeria at a disadvantage. This is because of the weak exports potential of Nigeria to the UK. Nigeria needs strategic policies to drive local competiveness in production in order to take advantage of the opportunities in the international markets.

https://www.businesspost.ng/2018/02/22/nigeria-lose-uk-listing-naira-fsdh/

By Dipo Olowookere

The House of Representatives on Thursday stepped down a bill for an Act to Amend the Personal Income Tax Act, Cap. P8, Laws of the Federation of Nigeria, 2004.

The bill, in its second reading and moved by Mr Tasir Olawale Raji, a lawmaker from Lagos State, was stepped down yesterday by the Deputy Speaker, Mr Yussuf Lasun, who presided over plenary, because the bill did not come with a compendium.

A compendium is a collection of concise but detailed information about a particular subject, especially in a book or other publication.

Mr Raji, who moved the motion, explained that the bill seeks to make it mandatory that tax is remitted to tax authorities where an individual works and not where they live.

For a long time, there have been debates on where tax deducted from employees should be remitted.

While some believe that tax authorities where a worker lives should take the personal income tax, others say the tax should be remitted to where the office is located.

However, the lawmaker said the bill, when passed, will have the potential of giving rise to disputes amongst employers, taxpayers and tax authorities with respect to the appropriate authority for tax remittance and filing of tax returns.

But during his debate, another lawmaker from Bauchi State, Mr Muhammad Sani Abdu, raised a point of order under Order 12(3), stating that a compendium ought to have been delivered.

In response, Mr Raji said the compendium was submitted along with the brief, but Chairman Rules and Business, Mr Emmanuel Yisa Orker Jev, said he has always been a proponent of Members complying with the rule.

Mr Jev further stated that the brief was not same as the compendium and that he had also not received it.

Consequently, the Deputy Speaker ruled that the Bill be stepped down until the compendium has been made available.

https://www.businesspost.ng/2018/02/23/reps-step-bill-amend-personal-income-tax-act/

T-Bills tenors are usually 91 days (3 months), 182 days (6 months) and 364 days (one year).

allhavesinned:
I have a question " How much will someone earn as profit investing 5M for a month in TB with Access Bank or any other bank "

Not yet released. It should be out by next month.

katamo:
Good day all - does anyone have the calendar for Q2 2018 TB issuances? Not sure if it has been released yet.

CBN Resumes OMO Sales as T-Bills Yields Drop 0.07%
https://www.businesspost.ng/2018/02/22/cbn-resumes-omo-sales-t-bills-yields-drop-0-07/

Transcorp Hotels to Pay Dividend Amid 34.5% Drop in Profit
https://www.businesspost.ng/2018/02/22/transcorp-hotels-pay-dividend-amid-34-5-drop-profit/

Barclays Names Teleology Holdings New Owner of 9mobile
https://www.businesspost.ng/2018/02/22/barclays-names-teleology-holdings-new-owner-9mobile/

Axa Mansard Board Approves Dividend Payment to Shareholders
https://www.businesspost.ng/2018/02/22/axa-mansard-board-approves-dividend-payment-shareholders/

T-Bills Yields Further Fall as CBN OMO Suspension Continues
https://www.businesspost.ng/2018/02/21/t-bills-yields-fall-cbn-omo-suspension-continues/

CBN Issues No-Sale OMO Result for Third Consecutive Day
https://www.businesspost.ng/2018/02/21/cbn-issues-no-sale-omo-result-third-consecutive-day/

By Dipo Olowookere

Several outlets of popular Kentucky Fried Chicken (KFC) in the United Kingdom were closed on Monday as a result of shortage of chicken.

The firm has over 900 outlets in the UK and over half of these stores were shut down as a result of delivery problems.

Until last Tuesday, KFC's chicken was delivered by South African-owned distribution group, Bidvest, which describes itself as “the leading supplier of logistical and supply chain solutions to the UK hospitality and restaurant sector.”

The new delivery company handling the job for KFC is now DHL.

“Due to operational issues, a number of deliveries in recent days have been incomplete or delayed.

“We are working with our partners, KFC and QSL, to rectify the situation as a priority and apologise for any inconvenience,” DHL said in a statement.

But a spokesperson of KFC disclosed that it was unclear when the delivery problems would be rectified.

“Our teams are working flat out all hours to get the rest back up and running as soon as possible - but it's too early to say how long it will take to clear the backlog,” the spokesperson said.

Almost 80 percent of KFC outlets are run on a franchise basis and the “franchisees will be seeking their own independent advice, but we're encouraging them to adopt this policy too,” the chain disclosed.

This policy is about a web page set up by KFC, where customers can find the nearest outlet still open for business.

According to the chain, in the restaurants it owns, staff on short-term contracts would be paid the average hours worked per day over the past 12 weeks, while those on salaries would be paid as normal.

Meanwhile, the management of KFC has apologised for the inconvenience caused by the shortage of chicken to its outlets.

“We've brought a new delivery partner onboard, but they've had a couple of teething problems - getting fresh chicken out to 900 restaurants across the country is pretty complex.

“We won't compromise on quality, so no deliveries has meant some of our restaurants are closed, and others are operating a limited menu or shortened hours,” the firm posted on its Twitter page.

However, some customers have expressed their frustration over this, urging the company to quickly resolve the issue.

https://www.businesspost.ng/2018/02/20/kfc-outlets-uk-closed-shortage-chicken/

Cadbury Nigeria Announces Closed Period
https://www.businesspost.ng/2018/02/20/cadbury-nigeria-announces-closed-period/

Nigerian Pension Funds Post 16.37% Gains in 2017—Report
**As APT RSA Pension Fund Leads Peers Again
https://www.businesspost.ng/2018/02/20/nigerian-pension-funds-post-16-37-gains-2017-report/

T-Bills Market, Yields Open Week Flat as CBN Records Zero OMO Sales
https://www.businesspost.ng/2018/02/20/t-bills-market-yields-open-week-flat-cbn-records-zero-omo-sales/

American Equity Firm Milost Global to Acquire “Large Nigerian Bank”
https://www.businesspost.ng/2018/02/19/american-equity-firm-milost-global-acquire-large-nigerian-bank/

New CBN Rules: See Banks That Won't Pay Dividends to Shareholders
https://www.businesspost.ng/2018/02/19/new-cbn-rules-see-list-banks-wont-pay-dividends-shareholders/