• follow us in feedly

How investors lost N687bn in Nigerian Stock Exchange

By News Desk,

The free fall of equities persisted on the Nigerian Stock Exchange (NSE) in the month of August with investors net worth depreciating further by 5.86 per cent.

Data obtained from the exchange showed that the All-Share Index during the period shed 2,169.33 points or 5.86 per cent to close at 34,848.45 against 37,017.78 in July.

Also, the market capitalisation, in spite of the listing of Notore Chemical Industries, lost N687 billion or 5.12 per cent to close at N12.722 trillion compared with N13.409 trillion achieved in July.

Speaking on the market performance, Prof. Sheriffdeen Tella, Professor of Economics, Olabisi Onabanjo University Ago-Iwoye, said the capital market performed poorly in the month of August.

Tella said the poor performance was caused by both local and international activities.

“Locally, the economy was not performing due to late budget passage and late implementation in an economy that is public sector driven.

“On the international scene, there were large capital outflow from the markets as foreign investors were moving money out for investment elsewhere,” Tella said.

He said the implementation of the budget in this quarter would likely assist in stabilising the market.

Ambrose Omordion, the Chief Operating Officer, InvestData Ltd. attributed the poor performance to the political environment ahead of the next year’s general elections in the midst of dwindling macro- economic indices.

Omordion said the delayed implementation of the 2018 budget impacted negatively on the capital market and the economy in general.

He said the volatility experienced so far in the second half of the year was a reflection of the negative factors against the market, amidst capital flight.

According to him, the exit of foreign investors resulted to dwindling foreign reserve.

Omordion urged investors and analysts to interpret the recent scorecards from first-tier banking stocks and other stocks to reposition their portfolios ahead of third quarter.

He advised the Federal Government to evolve policies that would drive recovery and influence the market positively.

An analysis of the price movement table during the period showed that Ikeja Hotel emerged the worst performing stock in percentage terms.

The stock during the period lost 27.48 per cent to close at N2.27 per share against N3.13 achieved in July.

Other top losers’ were Law Union and Rock Insurance, GSK, Skye Bank, Forte Oil, Royal Exchange, Universal Insurance, CAP, Continental Reinsurance and Berger Paints.

Conversely, Niger Insurance was the best performing stock in percentage terms with a growth of 69.23 per cent to close at 44k against 26k in July.

It was trailed by Portland Paints, Newest ASL, Neimeth Pharmaceuticals, AIICO Insurance, NEM Insurance, Eterna Oil, Hallmark Insurance, Transcorp and May & Baker.

A turnover of 5.40 billion shares valued at N66.92 billion were exchanged by investors in 68,906 deals during the period under review.
This represented a decrease of 19.52 per cent compared with a turnover of 6.71 billion shares worth N 73. 04 billion transacted in 84,963 deals in July.
An analysis of the activity chart indicated that the Financial Services Sector emerged the most active with an exchange 2.52 billion shares, valued N19.38 billion in 21,121 deals.
It was trailed by the Services Sector with 209.97 million shares worth N1.31 billion in 2,157 deals.
Consumer Goods sector came third with a turnover of 258.95 million shares valued at N14.02 billion in 11,252 deals.

e4, others top Ecobank Fintech competition

By Business Desk,

e4, technology company, is one of the top 11 finalists in the Ecobank Fintech Challenge for its new Virtual Identity product, a competition designed to further develop Africa as one of the most innovative continents.

The competition is also aimed at identifying innovative solutions that address African-centric issues within the financial services sector.

According to a McKinsey Report, Africa’s banking landscape is amongst the most exciting in the world and is the second-fastest-growing and second most profitable of any global region.

Andrea Tucker, Research and Development Head, e4, says that the Ecobank Fintech Challenge is necessary in these continuously evolving and competitive times.

“It’s time for financial institutions to consider alternative solutions to address the challenges within their environments.’’

Tucker says that the Ecobank Fintech Challenge is a great platform for e4 to showcase its innovative technology to a pan-African banking giant.

“We are excited about a potential opportunity to partner with Ecobank as part of a collaboration to share knowledge and insights of the state of Fintech in Africa.”

Virtual Identity provides a video-conferencing tool, enabling two people to communicate via a web browser or mobile app for the purposes of completing a virtual KYC process in order to verify a new or existing client’s identity.

“This exciting technology assists by providing banks with an opportunity to better service previously under-serviced or geographically remote clients.

“Bank customers with a smartphone are now able to call their bank to verify their identity as opposed to travelling to the nearest branch to do this in person,” says Tucker.

She says that by collaborating with these start-ups, Ecobank can focus on becoming more engaged with their customers, increasing customer loyalty and making it easier for customers to bank with them.

“By being more transparent and open to the challenges that regulatory and compliance requirements place onto their customers, Ecobank will improve its services and the banking life of its customers.

“This will shape the future of banking in Africa. Banks need to ensure that they ride the wave of innovation and digitisation for the benefit of all Africans.

Rapid developments in banking services and financial inclusion are key for accelerating the movement of Africans into the middle class and driving economic growth.”

Digital transformation continues to change the world and the way we live and do business.

Fintech remains one of the fastest growing and innovative industries.

“This is more relevant in Africa than on any other continent, as technological advancements can result in more benefit than anywhere else,” says Tucker.

Political uncertainty cause N2.49 trn loss in 7 months – Stocks Analyst

By Business Desk,

Investors on the Nigerian Stock Exchange (NSE) lost N2.49 trillion or 15.64 per cent between January and July, a development experts attribute to the political uncertainty in the country.

The financial experts who spoke said the political uncertainty had taken its toll on the bourse.

Data obtained from the exchange revealed that the market capitalisation which closed at N15.895 trillion in January declined to N13.409 trillion in July.

Similarly, the All-Share Index lost 7,325.87 points or 16.52 per cent during the period under review, closing at 37,017.78 in July compared with 44,343.65 in January.

Prof. Uche Uwaleke, Head of Banking and Finance Department, Nasarawa State University Keffi, said that the performance of the market was dismal and eroded the growth recorded in January.

Uwaleke said the market had remained bearish despite the oil price recovery, stable exchange rate, retreating inflation and even improved company fundamentals.

He, however, attributed the development to heightening political tension, insecurity from herdsmen and economic uncertainties from the delay in budget implementation.

Uwaleke added that the spike in interest rates in the United States of America and to some extent the US-China trade war combined to swing the attention of foreign investors to US markets.

Prof. Sheriffdeen Tella, Professor of Economics, Olabisi Onabanjo University Ago-Iwoye, Ogun, said the bearish trend was caused by movements of interest rates in the United States which resulted in withdrawal of money from the market by foreign investors.

“The seeming sustainability of the downward trend is caused by fear of local investors that they might be losing large amounts of money if they don’t sell off their securities now,” Tella said.

Okechukwu Unegbu, former President, Institute of Bankers of Nigeria (CIBN), said security issues and the social environment were responsible for the negative sentiments in the capital market.

Unegbu said foreign investors had pulled out their funds from the nation’s market, especially portfolio investors.

He said the real investment that impact positively on the economy was foreign direct investment in the productive sector not ‘hot money investment’ in the stock market.

Unegbu said government must encourage local investors to invest in the market by creating an enabling environment.

He added that politicians should stop their daily political altercations in the media, which he said was fueling fears among investors.

Garba Kurfi, the Managing Director, APT Securities and Funds Ltd., said the performance of the capital market had remained negative from February to date.

Kurfi said the initial gains of January of about 17 per cent had been completed eroded by July.

He said the market for about seven weeks now had experienced a loss of one per cent per a week or even more.

Kurfi attributed the trend to the exit of foreign investors and the institutional investors, and that the market witnessed a lot of sell pressure.

He also said the Pension Funds Administration failed to invest due to political risks.

“We hope to see revised trends probably after primary elections when the foreign investors are likely to review the prospective candidates and take decision,” Kurfi said.

However, the volume of shares traded between January and July rose by 56.16 per cent with an exchange of 82.58 billion shares valued at N871.71 billion in 742,014 deals.

This was in contrast with a turnover of 52.88 billion shares worth N565.83 billion transacted in 539,315 in the comparative period of 2017.

Nigerian banks made N32.9 trillion transactions in Q2

By Business Desk,

The National Bureau of Statistics (NBS) says a total volume of 509,668,433 transactions valued at N32.90trn was recorded in the banking sector during the second quarter.

The NBS made this known  in its “Selected Banking Sector Data: Sectorial Breakdown of Credit, ePayment Channels and Staff Strength (Q2 2018)’’ report released in Abuja.

According to the report, Automated Teller Machine (ATM) transactions dominated the volume of transactions recorded.

It said 217,417,961 volume of ATM transactions valued at N1.6 trillion was recorded in the period under review.

“In terms of credit to private sector, the total value of credit allocated by the bank stood at N15.34trillion as at the second quarter.

“Oil and Gas and Manufacturing sectors got credit allocation of N3.45trillion and N2.02trillion to record the highest credit allocation as at the period under review.

“As at the second quarter, the total number of banks staff increased by 13.67 per cent, from 89,608 in first quarter to 101,861,’’ the report stated.

Nigerian banks are hiring more staff

By News Desk,

Nigerian banks are hiring more staff, indicating that the sector is booming.

The National Bureau of Statistics revealed in its latest report that the number of bank staff in the second quarter that ended in June, increased by 13.67 per cent, from 89,608 in first quarter to 101,861.’’

The NBS also said a total volume of 509,668,433 transactions valued at N32.90trn was recorded in the banking sector during the second quarter.

The NBS made this known  in its “Selected Banking Sector Data: Sectorial Breakdown of Credit, ePayment Channels and Staff Strength (Q2 2018)’’ report released in Abuja.

According to the report, Automated Teller Machine (ATM) transactions dominated the volume of transactions recorded.

It said 217,417,961 volume of ATM transactions valued at N1.6 trillion was recorded in the period under review.

“In terms of credit to private sector, the total value of credit allocated by the bank stood at N15.34trillion as at the second quarter.

“Oil and Gas and Manufacturing sectors got credit allocation of N3.45trillion and N2.02trillion to record the highest credit allocation as at the period under review.

Stock market cap sheds 21bn as Mobil, 21 others record loss

By Business Desk,

An analysis of the price movement chart on Thursday at the Nigerian Stock Exchange (NSE ) showed that 22 stocks posted loses against 12 gainers.

The market capitalisation, which opened at N13.249 trillion, shed N21 billion to close at N13.228 trillion.

Top on the price laggards’ table was Mobil Oil which lost N10 to close at N170 per share.

FBN Holdings trailed with a loss of 45k to close at N9.50, while Vitafoam was down by 36k to close at N3.24 per share.

PZ industries depreciated by 20k to close at N14.05, while Zenith International Bank lost 15k to close at N23.60 per share.

On the other hand, International Breweries led the price gainers’ table, gaining 50k to close at N31 per share.

Sterling Bank followed with a gain of 13k to close at N1.49, while Ecobank Transnational gained 10k to close at N22.15 per share.

Eterna Oil also appreciated by 10k to close at N6.10, while Stanbic IBTC grew by 10k to close at N50 per share.

UBA was the most at active stock in volume terms, trading 27.22 million shares worth N260.24 million.

Law Union and Rock Insurance followed with 25 million shares valued at N22.50 million, while Zenith International Bank traded 19.92 million shares worth N71.39 million.

Courteville traded 19.69 million shares worth N4.13 million, while Regency Insurance sold 13.13 million shares valued at N3.05 million.

In all, a total of 188.26 million shares valued at N1.29 billion were transacted by investors in 2,795 deals.

This is in contrast to the 114.04 million shares worth N730.08 million traded in 2,610 deals on Wednesday.

The loses followed mixed second quarter earnings of companies and anxiety over 2019 general elections.

The NSE All-Share Index shed 67.16 points or 0.19 per cent to stand at 36,232.66 from the 36,299.82 posted on Wednesday.

The index had fallen by 5.26 per cent year to date so far this year after appreciating by 42 per cent in 2017.

Ambrose Omordion, the Chief Operating Officer, InvestData Ltd., in Lagos, attributed the persistent decline to political risk ahead of election and mixed sector quarter earnings announced by some companies.

Omordion said that second-quarter earnings had been mixed with most commercial banks posting decline in loans growth, while several consumer goods companies recorded lower profits.

Naira gains 40 kobo to firm against dollar

By Business Desk,

The Naira gained 40 kobo to firm against the dollar at the parallel market in Lagos, on Thursday .

The Nigerian currency exchanged at N358, stronger than N358.4 traded on Wednesday, while the Pound Sterling and the Euro closed at N480 and N417, respectively.

At the Bureau De Change (BDC) window, the naira was sold at N360 to the dollar, while the Pound Sterling and the Euro closed at N480 and N417, respectively.

Trading at the investors’ window showed that investors settled for N362.19 to the dollar, with a market turnover of 146.85 million dollars, while the naira exchanged at N306 to the dollar at the CBN window.

Meanwhile, the apex bank had sustained its interventions at the interbank foreign exchange market with the injection of 210 million dollars to the market on Tuesday.

The series of interventions of the CBN had helped to stabilise the exchange rate at the market.

Okomu oil, Dangote cement shares depreciate at NSE

By News Desk,

The price movement table at the Nigerian Stock Exchange (NSE) on Friday indicated that Okomu Oil topped the losers’ chart, dropping by N5 to close at N76 per share.

Dangote Cement depreciated by N1 to close at N229, while Cadbury dropped by 95k to close at N9.75 per share.

International Breweries trailed with a loss of N2.90 to close at N30.50, while Forte Oil was down by N1.10 to close at N23.40 per share.

On the other hand, Beta Glass led the gainers’ table, gaining N7.80 to close at N85.80 per share.

Seplat followed with a gain of N6 to close at N710, while Nigerian Breweries gained N3 to close at N103 per share.

Redstar Express appreciated by 30k to close at N5.75, while Zenith International Bank garnered 20k to close at N23.85 per share.

The market indices at the exchange lost 0.52 per cent  due to low earnings declared by some quoted companies for six months ended June 30 and political uncertainties.

The All-Share Index also dipped 189.24 points or 0.52 per cent to close at 36,499.67 against 36,688.91 recorded on Thursday.

Similarly, the market capitalisation which opened at N13. 311 trillion shed N69 billion or 0.52 per cent to close at N13.322 trillion.

The volume of shares traded dropped by 16.87 per cent, while value increased by 20.68 per cent.

Specifically, investors staked N4. 26 billion on 266.40 million shares traded in 3,242 deals.

This was against a turnover of 320.45 million shares valued at N3.53 billion achieved in 3, 293 on Thursday.

NAHCO was the most active stock during the day, trading 59.60 million shares worth N235.41 million.

United Bank for Africa came second with an account of 29.37 million shares valued at N282.92 million, while Diamond Bank traded 20.22 million shares worth N24.71 million.

FBN Holdings sold 17.29 million shares valued at N172.93 million, while Niger Insurance exchanged 15.38 million shares worth N4.61 million.

Notore boosts Nigerian Stock Exchange by N100b

By Business Desk,

Fertilizer maker Notore Chemical Industries has achieved a 100.75 billion naira ($330 million) valuation by listing on the Nigerian Stock Exchange, with a free float of 16 percent.

Notore, which produces fertilizer for sale within Nigeria and for export to West Africa, Southern Africa and Europe, said it had listed 1.61 billion ordinary shares at 62.50 naira each on Thursday, a day before active trading begins.

The offering will increase access to capital to fund its growth plans, Notore’s Chief Executive, Onajite Okoloko told stockbrokers during the listing.

The company, which also has interests in power, food and seed production, said in a presentation that 75 percent of its urea fertilizer is sold at home with the balance exported to traders in Europe such as Helm AG, Ameropa and Yara.

Agriculture accounts for 20 percent of Nigeria’s gross domestic product with crop production contributing the highest with the farming subsector.

However, low fertilizer production and the high cost of importing fertilisers has limited seed production. Fertilizer consumption in Nigeria ranks below its African peers at around 100 kilogram per hectare, Notore said.

Africa’s richest man Aliko Dangote is developing a 1.5 million tonne fertilizer plant in Nigeria’s commercial hub of Lagos, which he expects to commission by end of the year.

Singapore-owned Indorama Eleme Petrochemicals Ltd, is seeking to double its Nigerian plant annual output of urea fertilizer to 2.8 million tonne, and plans to list in Lagos next year.

Notore acquired the assets of state-owned fertilizer company National Fertilizer Company of Nigeria, based in the Niger Delta for $152 million more than 10 years ago and in 2012 entered into a joint venture with Mitsubishi Corporation to develop a new fertilizer plant, it said in the presentation.

It now has Africa Finance Corporation (AFC) as one of its shareholders with 4.9 percent holding. More than half of the shares are held by a vehicle registered in Mauritius.

Notore has the capacity to produce 500,000 metric tonnes per annum of urea, it said and also develops and sells staple crops such as maize and rice.

It narrowed its loss before tax to 2.15 billion naira for 2017 from 12.2 billion naira the year before. However, turnover grew to 35.89 billion naira, from 25.20 billion naira.

First Bank launches chat banking on WhatsApp

By News Desk,

First Bank Nigeria Plc, has on Thursday unveiled its chatbanking on WhatsApp  to ensure effective service to its customers,

Chuma Ezirim, the bank’s Group Head, E-Business, said the application would enable customers leverage the real-time messaging capabilities of the WhatsApp Business Solution to check their account balance.

Ezirim said that customers would also leverage on the solution to perform simple banking queries.

He said in a statement in Lagos that the launch which took place on Aug. 1 was at its pilot phase and would be available to a select group of customers after which it would be made available to all customers.

Ezirim said additional details on the solution would be provided in the coming weeks as customers are encouraged to keep interacting with the bank on its various social media channels for updates.

“Customers expectations are constantly changing and it is our duty as a customer-focused bank to ensure that our customers are provided with the means to carry out banking services through any channel they desire.

“We are constantly seeking new ways and opportunities to meet customers at their preferred touch points and we understand our customers are actively engaged on WhatsApp.

“With First Bank chat banking on WhatsApp, it is not just about staying connected with friends and loved ones, but also keeping in touch with your bank anytime and anywhere you are,” Ezirim said.

The First Bank is the premier bank in West Africa with about 14 million customer accounts and also provides a comprehensive range of retail and corporate financial services with over 750 business locations.

It has international presence through its subsidiaries, FBN Bank (UK) in London and Paris, FBNBank in the Republic of Congo, Ghana, the Gambia, Guinea, Sierra-Leone and Senegal as well as a representative office in Beijing.