₦airaland Forum

Oando Loses Appeal to Stop Forensic Audit
https://www.businesspost.ng/2017/12/15/oando-loses-appeal-stop-forensic-audit/

Two Senior Lafarge Officials in Terrorism Financing Mess
https://www.businesspost.ng/2017/12/15/two-senior-lafarge-officials-terrorism-financing-mess/

DMO Sells N77.58b Bonds to Investors Despite Getting N279.95b Offers
https://www.businesspost.ng/2017/12/15/dmo-sells-n77-58b-bonds-to-investors-despite-getting-n279-95b-offers/

T-Bills Yields Drop to 13.81% as Overnight Rate Falls to 1.88%
https://www.businesspost.ng/2017/12/15/t-bills-yields-drop-13-81-overnight-rate-falls-1-88/

T-Bills Yields Drop to 13.81% as Overnight Rate Falls to 1.88%
https://www.businesspost.ng/2017/12/15/t-bills-yields-drop-13-81-overnight-rate-falls-1-88/

DMO Sells N77.58b Bonds to Investors Despite Getting N279.95b Offers
https://www.businesspost.ng/2017/12/15/dmo-sells-n77-58b-bonds-to-investors-despite-getting-n279-95b-offers/

International Breweries Lists Additional 5.3b Shares on NSE After Merger
https://www.businesspost.ng/2017/12/14/international-breweries-lists-additional-5-3b-shares-nse-merger/

By Dipo Olowookere

The Nigerian Stock Exchange (NSE) All-Share Index (ASI) recorded another huge loss on Thursday, December 14, 2017, depreciating by 1.56 percent at the close of transactions after going down by 1 percent on Wednesday.

However, the market capitalisation recorded a growth, appreciating by 0.57 percent with Year-to-Date (YtD) return standing at 41.15 percent at the close of business today.

Business Post reports that the ASI went down by 600.94 points to settle at 37,933.70 points against the previous close of 38,534.64 points, while the market capitalisation increased by N77 billion to finish at N13.497 trillion from N13.420 trillion achieved yesterday.

Today’s trading was dominated by the Financial Services sector, which transacted the highest volume of shares, exchanging a total of 218.7 million shares for N2.3 billion, and was followed by the Consumer Goods industry, which sold 31.7 million shares for N3.3 billion.

It was gathered that the volume equities traded by investors on Thursday decreased by 10.69 percent from 323.95 million to 289.30 million, while the total value of shares traded increased by 41.36 percent from N4.4 billion to N6.2 billion.

FBN Holdings was recorded the highest volume of sales, trading 40 million shares worth N357.2 million.

It was followed by FCMB, which sold 33 million shares valued at N43 million, and Zenith Bank, which exchanged 29 million shares for N729.2 million.

Fidelity Bank sold 25.5 million shares worth N60.8 million, while Diamond Bank transacted 25 million shares valued at N37.3 million.

On the price movement chart, Dangote Cement emerged the highest price loser, depreciating by N9.88k to close at N230 per share.

Flour Mills of Nigeria went down by N3.32k to finish at N30.87k per share, while Lafarge declined by N1 to settle at N44 per share.

In addition, NASCON deflated by 69k to close at N19.31k per share, and Nigerian Breweries suffered a 65k loss to end at N139 per share.

On the other hand, Seplat gained N38.74k to lead the gainers’ log, closing at N540.5k per share at the close of business.

It was trailed by Nestle, which rose by N1.55k to finish at N1464.5k per share, and Julius Berger, which appreciated by N1 to end at N28 per share.

Unilever increased by 40k to close at N40.70k per share, while GTBank went up by 10k to finish at N40 per share.

With Christmas just six trading days away, the bears are expected to hold their grip tight on the Nigerian stock market with a lot of profit-taking by investors.

https://www.businesspost.ng/2017/12/14/nse-index-sheds-1-56-despite-0-57-rise-market-capitalisation/

NSE Index Sheds 1.56% Despite 0.57% Rise in Market Capitalisation
https://www.businesspost.ng/2017/12/14/nse-index-sheds-1-56-despite-0-57-rise-market-capitalisation/

Domestic IPO by African Issuers Rises 19.5% to $1.4b in 2017—Report
https://www.businesspost.ng/2017/12/14/domestic-ipo-african-issuers-rises-19-5-1-4b-2017-report/

By Dipo Olowookere

Federal Government has commenced a roadshow to sensitise prospective investors as part of preparations towards the issuance of its first Sovereign Green Bond.

The roadshow is organised by the Debt Management Office (DMO) and will hold in Abuja and Lagos on December 14 and 15, 2017.

The offer, which is for N10.69 billion, will be advertised in various media including newspapers and the DMO’s website to enable the public subscribe for the bonds.

The Green Bond is being issued following Nigeria’s endorsement of the Paris Agreement on Climate Change on September 21, 2016.

The Paris Agreement aims to strengthen the global response to the threat of climate change and since the signing of the agreement, various countries who are parties to the agreement have initiated several steps aimed at making the environment better.

The Green Bond proceeds will be used to finance projects in the 2017 Appropriation Act that have been certified as Green because of their positive effects on the environment.

Amongst these projects are the Renewable Energy Micro Utilities and Afforestation Programmes.

With the Green Bond Issuance, Nigeria will become one of the few countries in the world and indeed the first African country to issue a Green Bond.

Moody’s Investors Service has assigned a GB1 (Excellent) Green Bond Assessment to the issuance.

The DMO is working with the Federal Ministry of Environment towards the issuance while Chapel Hill Denham is the Financial Advisers to the Transaction.

https://www.businesspost.ng/2017/12/14/fg-begins-roadshow-n10-7b-green-bonds-issuance/

Moody’s Assigns GB1 to Nigeria’s Green Bonds
https://www.businesspost.ng/2017/12/13/moodys-assigns-gb1-nigerias-green-bonds/

FG Begins Roadshow for N10.7b Green Bonds Issuance
https://www.businesspost.ng/2017/12/14/fg-begins-roadshow-n10-7b-green-bonds-issuance/

Moody’s Assigns GB1 to Nigeria’s Green Bonds
https://www.businesspost.ng/2017/12/13/moodys-assigns-gb1-nigerias-green-bonds/

FG Begins Roadshow for N10.7b Green Bonds Issuance
https://www.businesspost.ng/2017/12/14/fg-begins-roadshow-n10-7b-green-bonds-issuance/

Moody’s Assigns GB1 to Nigeria’s Green Bonds
https://www.businesspost.ng/2017/12/13/moodys-assigns-gb1-nigerias-green-bonds/

Court Rules on SEC Suspension of Oando Friday
https://www.businesspost.ng/2017/12/14/court-rules-sec-suspension-oando-friday/

9mobile to Soon Announce Buyer from 5 Top Bidders
https://www.businesspost.ng/2017/12/13/9mobile-soon-announce-buyer-5-top-bidders/

By Dipo Olowookere

A total volume of 213,693,964 transactions valued at N19.33 trillion were recorded in the Nigerian banking sector in the third quarter of 2017, the National Bureau of Statistics (NBS) has revealed.

The figures, according to the stats office, were obtained from data on Electronic Payment Channels in the Nigeria Banking Sector.

The NBS, in its report released on Wednesday and obtained by Business Post, disclosed that the NIBSS Instant Payment (NIP) transactions dominated the volume of transactions recorded during the period under review.

It said 97,530,856 volume of NIP transactions valued at N13,963 billion were recorded in Q3 2017, while in terms of credit to private sector, a total of N15.83 trillion worth of credit was allocated by the banks in Q3 2017.

Oil & Gas and Manufacturing sectors got credit allocation of N3.54 trillion and N2.27 trillion to record the highest credit allocation in the period under review.

As at Q3 of 2017, the total number of banks staffs increased by 9.16 percent from 75,607 in the Q2 of 2017 to 82,531.

https://www.businesspost.ng/2017/12/13/banking-sector-records-n19-3tr-transactions-q3-2017-nbs/

Union Bank Sells N291m Shares to Employees
https://www.businesspost.ng/2017/12/13/union-bank-sells-n291m-shares-employees/

By Dipo Olowookere

Shares of Union Bank of Nigeria Plc worth N291 million have been sold to employees of the first generation bank.

This is coming over a month after the lender completed the raising of N50 billion through rights issue with the net proceeds to be used to enhance the bank’s regulatory capital requirement, increase working capital and grow in strategic areas that correspond to emerging opportunities in Nigeria.

The proceeds are also to be used to enhance technological platforms through strategic investments in technology and digitalisation and optimise customer experience with investments in customer touch points.

It was gathered that the N291 million shares sold to workers of the bank arose from its Long Term Transformation Incentive Plan (LTTIP).

Union Bank had secured regulatory approval to sell the new shares worth N291 million to employees under its employee share scheme.

About 51.3 million ordinary shares of 50 kobo each were sold at N5.67 under the LTTIP and were listed on the Nigerian Stock Exchange (NSE).

The additional shares have increased the financial institution’s total issued shares from 16.936 billion ordinary shares to 16.987 billion ordinary shares.

https://www.businesspost.ng/2017/12/13/union-bank-sells-n291m-shares-employees/

By Modupe Gbadeyanka

Market operators have received, with excitement, news of the Debt Management Office (DMO) disclosing that it would redeem maturing treasury bills worth N198.032 billion this week and next week.

On Thursday, December 14, 2017, N131.415 billion worth of Nigerian Treasury Bills (NTBs) will mature, while on Thursday, December 21, 2017, another NTBs valued at N66.617 billion will also mature.

But the debt office has disclosed that it would redeem these maturing bills in full as at when due instead of the usual practice of rolling over NTBs at maturity.

These payments, according to the DMO, are aimed to help the private sector have to access funds and possibly at a lower cost than was hitherto possible.

However, the DMO said it expects operators in the market to use this opportunity to develop the other segments of the debt capital market such as corporate bonds.

The debt office noted that the NTBs would be redeemed primarily using proceeds of the $500 million raised through a Eurobond Issuance by Nigeria in November 2017.

Nigeria had issued a dual-tranche $3 billion Eurobond in November 2017 out of which $2.5 billion is to part-finance the deficit in 2017 Appropriation Act and the balance of $500 million is for the refinancing of domestic debt.

Recently, Federal Government said it was planning to refinance some maturing domestic debt with external borrowing as part of its overall debt management strategy of reducing debt service costs.

Other objectives of this strategy are to free up space in the domestic market for other borrowers and achieve a more sustainable debt portfolio mix of 60 percent domestic and 40 percent external.

In addition, the redemption overtime will help reduce the refinancing risk associated with short-term borrowings through NTBs with tenors of 91, 182 and 365 days.

As at September 30, 2017, NTBs accounted for 30.23 percent of the Federal Government’s domestic debt of N12.5 trillion compared to the DMO’s target of a maximum of 25 percent.

https://www.businesspost.ng/2017/12/12/excitement-dmo-redeems-maturing-n198b-maturing-t-bills/

Jejebaba:
Never knew Tbills can mature on Tuesday, i thought maturity is on Thurs, Dec 14. Stand to be corrected please.

You are right, N198b worth of T-bills are maturing Dec 14 and 21.

Excitement as DMO Redeems Maturing N198b Maturing T-Bills
https://www.businesspost.ng/2017/12/12/excitement-dmo-redeems-maturing-n198b-maturing-t-bills/

NSE Kicks Out Midland, 89 Others from Capital Market
https://www.businesspost.ng/2017/12/13/nse-kicks-midland-89-others-capital-market/

By Dipo Olowookere

Transactions on the floor of the Nigerian Stock Exchange (NSE) rebounded on Tuesday after enduring a two-day bearish run.

The equity market marginally rose by 0.03 percent after the All-Share Index (ASI) increased by 10.64 points to close at 38,924.63 points.

However, the market breadth ended weak yesterday despite the slight gain with the market closing with 21 gainers and 23 losers. A total of 91 equities participated in trading on the NSE platform on Tuesday.

At the close of market, the volume of shares exchanged improved by 31.97 percent from 350.595 million to 462.670 million, while the total value of stock transacted increased by 445.40 percent from N4.916 billion to N26.810 billion.

It was the Financial Services sector that led the activity chart yesterday with 305.57 million shares exchanged for N2.396 billion, while the Industrial Goods followed with 98.581 million shares exchanged for N23.417 billion.

Union Bank led the gainers’ chart with 10.01 percent share price appreciation, closing at N7.91k per share, and was followed by Diamond Bank, which rose by 7.14 percent to settle at N1.50k per share; and Berger Paints, which advanced by 4.9 percent to end at N7.71k per share.

Caverton grew by 4.55 percent on Tuesday to finish at N1.38k per share, while NASCON moved up by 4.06 percent to settle at N19.50k per share.

On the losing front, FCMB came out bottom with an end-of-day price depreciation of 4.69 percent to close at N1.22k per share, followed by Fidelity Bank, which depreciated by 4.64 percent to settle at N2.26k per share.

NAHCO declined by 4.64 percent to finish at N4.32k per share, Linkage Assurance shed 4.62 percent of its share price to close at 62k per share, while Sterling Bank went down by 4.59 percent to close at N1.4k per share.

Dangote Cement recorded the highest volume of 95.5 million traded shares, followed by Diamond Bank (51.17 million), FBN Holdings (49.94 million) and FCMB (48.09 million).

Business Post reports that yesterday’s marginal gain at the market pushed the year-to-date return to 44.84 percent, with the market capitalisation growing by N3 billion to settle at N13.6 trillion.

https://www.businesspost.ng/2017/12/13/nse-market-breadth-remains-weak-despite-0-03-rise/

NSE: Market Breadth Remains Weak Despite 0.03% Rise
https://www.businesspost.ng/2017/12/13/nse-market-breadth-remains-weak-despite-0-03-rise/

T-Bills Yields Drops to 15.54% as Overnight Rate Falls to 4.08%
https://www.businesspost.ng/2017/12/12/t-bills-yields-drops-15-54-overnight-rate-falls-4-08/

Oando Drags SEC to Appeal Court Stop Forensic Audit
https://www.businesspost.ng/2017/12/11/oando-drags-sec-appeal-court-stop-forensic-audit/

Capital Market Operators Want Single License from SEC, CBN
https://www.businesspost.ng/2017/12/11/capital-market-operators-want-single-license-sec-cbn/

CBN Threatens to Blacklist Loan Defaulters
https://www.businesspost.ng/2017/12/11/cbn-threatens-blacklist-loan-defaulters/

I&E Forex Window Trades $900.50m in 5 Days
https://www.businesspost.ng/2017/12/11/ie-forex-window-trades-900-50m-5-days/

By FSDH Research

There are investment opportunities in the Federal Government of Nigeria Savings Bonds (FGNSB) as they offer attractive returns and low investment risk for low income earners.

The FGN introduced the FGNSB in March 2017 to provide an avenue for the low income earners to invest their money to earn consistently good return over time.

The FGNSB is also an initiative of the FGN to encourage savings among Nigerians, while it accesses capital for long-term projects. The FGNSB is open for subscription to the investing public on the first week of each month. The minimum investment in the Bond is N5,000 while the maximum investment is N50 million.

Investors can either invest in the two or three years FGNSB. The interest rate (coupon) on the three-year tenor is usually higher than that of the two-year tenor.

The average interest rate on the two-year tenor between March and November 2017 was 13.01 percent. The average interest rate on the three-year tenor between April (when it was introduced) and November 2017 was 14.01 percent.

The FGN pays the interest on the Bond on a quarterly basis. This means that an investor who invests N100,000 in the Bond, with an interest rate of 14.82 percent, will earn N3,705 every three months throughout the life of the Bond.

The interest on the Bond is higher than what investors can earn on their savings account in the Nigerian Banks and it is exempted from all forms of taxes. This makes it more attractive as an investment option than a savings account.

Investors can trade the Bond on The Nigerian Stock Exchange (NSE) if they need money before maturity.

Investors buy and sell the Bonds through their Stockbroking firms anywhere in the country. Investment in the FGNSB can also be used as a collateral to borrow money in any financial institution in Nigeria.

FSDH Research believes investing in the FGNSB is a good avenue for low income earners to build wealth over a long period of time.

Our illustration shows that an investment of N100,000 in the FGNSB can easily grow to N1,921,863.20 in 25 years. This is possible if the interest earned and the maturing principal are reinvested at an interest rate of 12 percent annually, payable every quarter.

https://www.businesspost.ng/2017/12/10/investment-opportunities-fgn-savings-bonds/

Investment Opportunities in FGN Savings Bonds
https://www.businesspost.ng/2017/12/10/investment-opportunities-fgn-savings-bonds/

Pharmtj:
thanks. I want other legit means to invest in apart from tbils. any idea?

Investment Opportunities in FGN Savings Bonds
https://www.businesspost.ng/2017/12/10/investment-opportunities-fgn-savings-bonds/

NASD Unveils Enterprise Portal to Capital Market Operators
https://www.businesspost.ng/2017/12/10/nasd-unveils-enterprise-portal-capital-market-operators/

Lexit:
Hello house, when is the next TB auction?

The last t-bills auction via the primary market was conducted on Nov 29, 2017. We still await the CBN to conduct sale of t-bills via OMO. I hope this information helps.

Investors Anticipate N138.6b Maturing Treasury Bills This Week
https://www.businesspost.ng/2017/12/10/investors-anticipate-n138-6b-maturing-treasury-bills-week/