Nigerian Stock Exchange records N130b rise in market capitalisation

By Newsdesk

The Nigerian Stock Exchange (NSE) market capitalisation recorded N130 billion, representing 1.03 per cent increase, following gains posted by some highly capitalised equities.

Similarly, the All-Share Index which opened at 36,584.44 inched 378.04 points or 1.03 per cent to close at 36,962.48 as a result of price growth.

The market capitalisation closed on Tuesday closed at N12.739 trillion compared with N12.609 trillion recorded yesterday.

A breakdown of the price movement chart indicated that Nestle recorded the highest gain to lead the gainers’ table growing by N20.19 to close at N1, 220.20 per share.

Trailing the beverage firm, Total, recorded a gain of N11.40 to close the market at N239.51 and Dangote Cement completed the top three highest earners with  N9.29 to close at N224.90 per share.

Forte Oil appreciated by 50k to close at N50.50, while NASCON increased by 48k to close at N13.50 per share.

On the other hand, Mobil Oil recorded the highest loss declining by N11.25 to close at N213.81 per share.

Conoil trailed with a drop of N3.30 to close at N30.59 and Flour Mills depreciated by N1.15 to close at N29.85 per share.

Zenith International Bank lost 95k to close at N23.05, while UACN was down by 85k to close at N15.07 per share.

It was gathered that LiveStock Feeds was the toast of investors in volume terms, accounting for 101.19 million shares valued at N101.12 million.

Guaranty Trust Bank (GTB) came second with an exchange of 16.48 million shares worth N670.47 million, while United Bank for Africa sold 15.06 million shares valued at N141.31 million.

Also, Sterling Bank accounted for 13.45 million shares worth N13.54 million and investors staked N110.84 million on 8.54 million of Dangote Sugar.

However, the volume of shares traded closed lower as investors bought and sold 244.32 million shares valued at N3.67 billion achieved in 3,829 deals.

This was in contrast with a turnover of 368.38 million shares worth N6.27 billion exchanged in 3,729 deals yesterday.

NSE market capitalisation records N208bn increases

By Newsdesk

The transactions made on floor of Nigerian Stock Exchange (NSE) has sustained the ongoing positive trend after recording market capitalisation growth of N208 billion amid gains by cement, banking and consumer goods stocks.

 

Though market capitalisation opened trading with N12.52 trillion rose by N208 billion or 1.66 per cent to close at N12.73 trillion.

 

Similarly, All-Share Index inched stood at 603.98 points or 1.66 per cent to close higher at 36,920.56 points on Friday compared with 36,316.58 points achieved yesterday.

Among the top gainers was Dangote Cement  which recorded a N5.20 share growth to close at N225 per share, and led the gainers’ table for the day.

Guaranty Trust Bank (GTB) and Stanbic IBTC ended the first three with a gain of N2.40 to close at N39.50 per share and appreciated by N1.85 to close at N38.85 per share repectively.

Other on top gainers chart were Zenith International Bank which added N1.52 to close at N24.53 per share, while PZ Industries increased by N1.28 to close at N26.93 per share.

Market watchers attributed the development to investors’ repositioning ahead of release of Access Bank and United Bank for Africa (UBA) 2017 half year results.

They said that the repositioning sustained the volatility witnessed in the market in last couple of days.

Okomu Oil Palm, however, recorded the highest loss at end of the day’s trading, dropping by N3.63 to close at N69.09 per share.

Also on the loser’s chart, Nigerian Breweries, who closely trailed Okomu oil, recorded a loss of N2.98 to close at N181.07 and Cadbury was down by 63k to close at N12.07 per share.

UACN recorded a declined by 60k to close at N16 per share after the day’s trading, and CCNN lost 45k to close at N9.22 per share.

Also, the volume of shares traded closed higher as investors traded a total of 236.62 million shares valued at N4.81 billion in 3,803 deals.

Meanwhile, aside that Zenith International Bank, recorded massive gains, the bank was also most active, trading 61.85 million shares valued at N1.47 billion.

UBA followed with an account of 40.41 million shares worth N380.68 million and GT Bank traded 32.51 million shares valued at N1.26 billion.

Fidelity Bank sold 12.38 million shares worth N16.04 million, while FBN Holdings exchanged 11.74 million shares valued N70.10 million.

Investors lose N342bn as bearish trading wanes

By Jide Ajia

Equity investors on the floor of Nigerian Stock Exchange (NSE) has recorded another whooping losses of N342.677 billion at the close of daily trading on Wednesday.

The Market Capitalisation, which tells the total value of shares bought and sold closed at N12.443 trillion as against N12.786 trillion recorded on Tuesday.

A total of 224.773 million units of listed companies shares valued at N5.090 billion were transacted by investors in 4,822 deals.

Trading data from NSE showed ten companies gained against 30 losers as the Year-to-date returns (Ytd) stood at 34.34 percent.

Specifically, FBN Holdings led activity chart as stock traders exchanged 34.466 million shares worth N206.834 million.

Access Bank  followed by less than half trading 27.425 million shares worth N276.911 million; Guaranty Trust Bank; followed with 25.150 million shares valued at N970.777 million; while 15.082 million units of Jaiz Bank shares worth N11.992 million were traded.

Also traded were 12.655 million units of Zenith Bank shares valued at N284.670 million.

Nestle Nigeria Plc, led the gainers’ table adding N11.9 to close at N1220, from N1208 per share recorded Wednesday.

Nascon Allied Industries, followed with a gain of N0.31 from day open level of N11.69 to close at N12, while Union Bank Nigeria appreciated by N0.21 to close at N6 per share, up from N5.79. Dangote Sugar Refinery gained N0.13 to close at N12.8 from N12.67, while Vita Foam Nigeria increased by N0.12 to close at N2.83 per share, from N2.71.

Conversely, Dangote Cement, Total Nigeria, Nigerian Breweries, Guinness Nigeria and Stanbic IBTC Holdings led the losers as Dangote Cement share price declined by N11 to close at N214 per share, down from N225.

Total Nigeria lost N9.55, from N236.55 to N227; while Nigerian Breweries declined by N5, from N190 to N185. Guinness declined by N1.93 to close at N87.96 from N89.89; while Stanbic IBTC Holdings depreciated by N1.92 to close at N37.08 per share, down from N38.95.

Lagos lauds Sterling Bank’s sustainability campaign

Jide Ajia

In a massive show of endorsement of Sterling Bank’s sustainability campaign known as Sterling Environmental Makeover (STEM), senior officials of the Lagos State Government have paid glowing tributes to the initiative, saying it was in line with the state government’s vision of encouraging residents to show respect for the environment.

The Commissioner for the Environment, Lagos State, Dr. Babatunde Adejare, commended Sterling Bank for its outstanding show of commitment to the campaign for a livable environment.

Addressing the mammoth crowd during flag off of mega cleaning exercise which took place at the Computer Village in Ikeja, Adejare said, there was need to have more respect for our environment than we do now.

He stressed that the state government cancelled the monthly sanitation exercise because it believed that cleaning the environment should be part of our daily lives and not just a monthly routine.

The commissioner disclosed that the state government recently introduced the Cleaner Lagos Initiative in a bid to better manage solid waste and urged participants in the cleaning exercise to extend the practice to their different homes as part of their contribution to the emergence of a cleaner Lagos that is fit for human habitation.

Adejare enjoined residents in Lagos not to block drainages with their refuse but to put them in bags and tie the mouths before leaving them in front of their houses for officials of Lagos State Waste Management Authority (LAWMA) to pick up.

The Chief Executive Officer of Sterling Bank, disclosed that the STEM programme was being held simultaneously in eight other locations across the country to include: Ogun, Oyo, Kwara, Rivers, Enugu, Plateau, Kano and in Abuja, the Federal Capital Territory (FCT).

In his welcome address, Adeola explained that STEM was the bank’s corporate social responsibility initiative which promotes sanitation and helps to reduce the impact of human activities on the environment with the aim of making planet earth a clean and safe place for all.

He added that the STEM programme covered partnership with waste management agencies in 14 states, planting of trees in Bauchi, Gombe and Plateau to combat desertification and an annual national cleaning exercise.

He said the phenomenon of global warming which triggers flooding, earthquakes, tsunamis and volcanoes, among other natural disasters can no longer be denied.

According to him, global warming is not primarily an act of nature. Human activities that lead to the emission of greenhouse gases such as carbon dioxide, methane and nitrous oxide are dominant influence. These activities are ensuring that global temperature is rising at the fastest rate in 50 years with oceans getting warmer and expanding, thereby causing climate change, expansion of deserts and rise in sea levels.

Calling on Nigerians to treat the environment with care, the Sterling Bank Chief Executive observed that cases of flooding, especially the types experienced in urban neighbourhoods in Nigeria during the wet season, were the result of poor sanitation practices and not acts of nature.

He advised Nigerians to pay better attention to the state of their immediate environment and desist from indiscriminate dumping of refuse, plastic bottles, empty cans, water sachets and nylons in drainages, canals and highway man-holes.

Also speaking, the Chairman of Ikeja Local Government, Engr. Mojeed Babajide, thanked Sterling bank for the initiative, adding that the local government was very happy to partner with it; he re-echoed the commissioner’s plea for refuse to be properly packed for officials of LAWMA to pick them up in a bid to ensure a cleaner Lagos.

Among other highlights, Olamide Adedeji, a popular hip-pop artiste known as Olamide Badoo, the brand ambassador of STEM thrilled the audience with entertainment and encouragement on the need to keep the environment clean.

GTBank reports N101bn pretax profit in H1

By Jide Ajia

Guaranty Trust Bank has released its audited financial results for the half year ended June 30, 2017 to the Nigerian and London Stock Exchanges.

A review of the half year performance, showed positive growth across all key financial metrics and improved strategic positioning of the brand.

In specific terms, the lender’s gross earnings for the period grew by two per cent to N214.1billion from N209.9 billion reported in the June 2016; driven primarily by growth in investment securities income as well as income from risk assets.

Its profit before tax stood at N101.1billion, representing a growth of 18 per cent over N85.69 billion recorded in the corresponding period of June 2016.

However, the bank’s loan book dipped by six per cent from N1.590 trillion recorded as at December 2016 to N1.491trillion in June 2017 and customer deposits decreased by one per cent to N1.966 trillion from N1.986trillion in December 2016.

The bank closed the half year ended June 2017 with total assets and contingents of N3.75 trillion and shareholders’ funds of N538 billion and on the backdrop of the financial result, Return on Equity (ROAE) and Return on Assets (ROAA) stood at 38.8 per cent and 6.4 per cent respectively.

Nonetheless, as part of efforts aiming at improving shareholder’s value, the bank is proposing interim dividend of 30 kobo per ordinary share of 50 kobo each for period ended June 30, 2017.

The Chief Executive Officer, Guaranty Trust Bank, Segun Agbaje, said that the bank’s strong performance in the first half of 2017 reflected the strength of its businesses, the quality of its past decisions and success of the financial institution’s efforts towards becoming a digital-first customer-centric bank that offers simple and easily accessible products and services.

According to Agbaje said despite the challenging environment of slow economic growth, we focused our resources on strengthening relationships with our customers, creating business platforms that seek to add value across all customer segments, whilst consolidating our leading position in all the economies in which we operate.

Agbaje stressed that the bank has continued to report the best financial ratios for a financial institution in the industry with a return on equity (ROE) of 38.8 per cent and a cost to income ratio of 40.2 per cent evidencing the efficient management of the banks’ assets.

“Overall, the bank has enshrined its position as a clear leader in the industry. In due recognition of the bank’s leading role in Africa’s banking industry, owing to its bias for world class corporate governance standards and excellent service delivery and innovation, GTBank has been a recipient to numerous awards over the course of the year”, said Agbaje.

FG to auction N135bn bonds in August 23rd– DMO

By Jide Ajia

The Debt Management Office (DMO) has disclosed that Federal Government is offering for subscription and auctioning of N135 billion bonds in its Aug. 23 public sale.

The offering circular obtained from the DMO’s website on Tuesday in Abuja, indicated that it would sell N35 billion of a bond, to mature in July 2021, at 14.50 per cent.

It would also sell N50 billion at 16.28 per cent to mature in March 2027, while another N50 billion of paper would be sold at 16.24 per cent, to mature in April 2037.

All the bonds on offer were expected to reopening previous issues, the circular said.

It should be recalled that the federal government of Nigeria issues sovereign bonds monthly to support the local bond market, which also created a benchmark for corporate issuance to fund its budget deficit and maintain a benchmark for companies to follow.

The debt office will sell N35 billion of bonds due in 2021 and N50 billion each of bonds due in 2027 and in 2037, using a Dutch Auction System (DAS), while settlement is expected two days after the sale.

The West African country expects a budget deficit of N2.36 trillion this year as it tries to spend its way out of a recession and expects to raise money to cover more than half the deficit from the local market.

Bureau de change operators pledge support for IDPs

By Jide Ajia

The Association of Bureau De Change Operators of Nigeria (ABCON) has pledged to assist in reducing the plight of the Internally Displaced Persons (IDPs) in the North-East.

President of the group, Aminu Gwadabe, made the pledge in an interview with finance and industry-based journalists on Tuesday, in Lagos.

Gwadabe stressed that members of the association were willing to make voluntary contributions to meet the humanitarian challenges in the IDP camps in the north-east.

According to him, the planned support for the IDPs was in line ABCON’s Corporate Social Responsibility (CSR) and members’ sacrifices toward assisting the oppressed, adding that the association had also resolved to solicit for help for the internally displaced persons in the country.

While commending international organisations and some philanthropic Nigerians for their contributions so far in ameliorating the suffering of the IDPs, Gwadabe hinted that the IDPs lacked a voice for international support and ABCON was set to come to their aid.

He said the association was particularly moved by the recent donation of N360 million by 18 state governments from the north to cushion the suffering of the IDPs and the recent donation by 18 governors from the north was commendable and he called for a prudent management of the resources generated for the IDPs.

It was reported that since the commencement of the insurgency in 2014, close to two million people have been displaced and 32 IDP camps created to cater for their needs.

Meanwhile the United Nations Office for the Coordination of Humanitarian Affairs (OCHA) has said that about 6.5 million people have been marked for life-saving assistance in north-eastern Nigeria in 2017.

OCHA said that of the figure, an estimated 1.9 million people had been displaced in Adamawa, Bauchi, Bornu, Gombe, Taraba and Yobe.

The UN agency said about $1.1 billion was required to meet the needs of the people, adding that about $480.1 million had been spent so far while $574.3 million remained the funding gap.

Investors lose N294bn as stock market sustains negative posture

By Jide Ajia

Trading activities on the floor of Nigerian Stock Exchange (NSE) closed on depressive mode as major blue chip companies further depreciated at the close of trading for the second day of the week.

The negative trend forced market indicators to close negatively with loss of 2.25 per cent with the market capitalisation shedding N294 billion in a day to close at N12.786 trillion compared with N13.080 trillion recorded on Monday due to selling pressure.

Also, the All-Share Index extended its lost, dropping by 854.36 points or 2.25 per cent to close at 37,096.60 in contrast with 37,950.96 achieved on Monday.

At the close of trading, Dangote Cement, one of the most capitalised equity in stock market, recorded the highest loss, shedding N10 to close at N225 per share.

Nigerian Breweries trailed with a loss of N3 to close at N190, while Lafarge Africa dipped N2.99 to close at N60.01 per share, Stanbic IBTC also lost N2.05 to close at N38.95 per share,

Conversely, Seplat led the gainers’ table during the day, appreciating by N3 to close at N482 per share.

Conoil followed with a gain of N1.30 to close at N33.89 and GlaxoSmithKline increased by N1 to close at N21 per share, Berger Paint added 34 kobo to close at N7.14, while Unilever grew by 13 kobo to close at N45.63 per share.

An analysis of the activity chart indicated that Access Bank was the most active stock for the day, trading 179.30 million shares worth N1.87 billion.

Zenith International Bank followed with an exchange of 40.15 million shares valued at N937.28 million and United Bank for Africa traded 24.88 million shares worth N233.64 million, FBN Holdings transacted 22.07 million shares valued at N133.77 million, while Guaranty Trust Bank sold 11.86 million shares worth N461.58 million.

In all, the volume of shares traded inched by 23.89 per cent with a turnover of 391.63 million shares valued at N5.44 billion traded in 5,285 deals as against a turnover of 316.12 million shares worth N4.24 billion transacted in 4,113 deals on Monday.

Experts explain foreign inflow, portfolio rebalancing triggers rise in Nigerian stock market

By Jide Ajia

Some financial experts have attributed the ongoing rally on the Nigerian Stock Exchange (NSE) to renewed foreign inflow and portfolio rebalancing on the strength of second quarter results.

They said that a lot of foreign investors had diverted their investment into the nation’s bourse due to persistence price losses recorded before the half year turned-in.

The Managing Director, Trust Yield Securities Limited, Rasheed Yusuuf, said that both foreign, local and institutional investors were back in the market in one form or the other due to companies’  good earnings and strong fundamentals.

Yusuuf said that strong performance by some banks, as well as consumer goods and oil companies, made demand to be very high in the market with a rush to increase holding, adding that the performance, in spite of recession, encouraged people back to the market.

The investment analyst added that the second quarter performance had changed people’s perception about the economy, showing that it was not as bad as it was painted; the market was gradually stabilising because portfolio investors were not investing the way they used to in the past.

Yussuf stated that companies were doing well even in the face of tightening by government through various policies, while expressing optimism that the market growth would be sustained because it was based on fundamentals, not on speculation.

The managing director said that favourable economic environment, foreign exchange stability and increased foreign reserve would sustain investors’ confidence in the market.

Yussuf said that some investors had started taking position in the market ahead of third quarter earnings due to impressive second quarter numbers released by most quoted companies.

The Chief Operating Officer, InvestData, Ambrose Omordion, said that portfolio rebalancing by fund managers on the strength of half-year earnings contributed to equities price rally.

He said that low valuation of stocks due to currency devaluation of 2015/2016 made prices of stocks cheaper when compared with other markets in the world.

Omordion stated that relatively stable exchange rate due to robust investors and exporters window introduced by the Central Bank of Nigeria (CBN) in the foreign exchange market further boosted foreign investors inflow.

“With South African economy struggling with recession, many portfolio investors are likely to look elsewhere in the short to medium-term for juicy returns,” Omordion said.

He said that Nigeria remained a destination of choice with the economy on the path of recovery, as shown by the Gross Domestic Product (GDP) that is gradually coming out from a negative terrain.

It should be recalled that during last week, market capitalisation in just three days between Aug. 7 and Aug. 9 rose by N248 billion or 1.92 per cent to close at N13.144 trillion against N12.899 trillion at which it opened for the week.

Also, the All-Share Index which opened for the week at 37,425.15 improved by 718.87 points or 1.92 per cent between Aug. 7 and 9 to close at 38,144.02 following price growth.

Zenith Bank declares N75.32bn profit in 6 months

By Jide Ajia

Zenith International Bank has declared a profit after tax of N75.32 billion for the half year ended June 30, as the financial result released by the Nigerian Stock Exchange (NSE) on weekend showed that the profit-after-tax increased by 112.35 per cent when compared with N35.47 billion posted in the preceding period of 2016.

Its profit-before-tax rose to N92.18 billion, compared with N53.91 billion in 2016.

The bank also recorded gross earnings of N380.4 billion against N214.8 billion achieved in the comparative period of 2016, indicating a growth of 77 per cent.

However, Net interest income stood at N138.962 billion, as against N127 billion in 2016, while impairment charges increased by 196 per cent from N14.2 billion to N42 billion.

The bank’s trading income, realised from foreign exchange, jumped from negative N864 million to positive N65.318 billion; other operating income soared from N3.57 billion to N15.11 billion in 2017.

The bank also announced an interim dividend of N7.8 billion, which translated to 25 kobo per share, same amount paid in the corresponding period of 2016.

The Chairman, Zenith Bank, Jim Ovia, told the shareholders in March that the bank would continue to reward them accordingly.

Ovia stated that in line with its commitment to delivering superior returns to its shareholders, the bank ensured that a good chunk of the profit was set aside for shareholders.

He stated that the bank had maintained a culture of outstanding performance and industry leadership even in the face of a very challenging operating environment.

“As a bank, we are monitoring developments both in the local and global economy and applying pragmatism and dynamism as appropriate. Our strategy and approach to the pursuit of financial inclusion and sustainability gives us a lot of competitive advantage to explore even new frontiers in the market”, he said.