The Nation Newspaper

Category: Equities

  • Equities rally N75b gain amid bargain-hunting

    Nigerian equities traded mostly at higher prices yesterday as increasing bargain-hunting for value stocks drove the overall market to a net capital gain of N75 billion. With more than two gainers for every loser, quoted equities showed considerable recovery, sustaining underlying positive sentiment that started the week.

    The benchmark index at the Nigerian Stock Exchange (NSE)- the All Share Index (ASI), recorded average gain of 0.58 per cent to close at 35,516.21 points as against its opening index of 35,311.36 points. Aggregate market value of all quoted equities rose from its opening value of N12.891 trillion to close at N12.966 trillion, representing net capital gain of N75 billion. The rally moderated the negative average year-to-date return to -7.13 per cent.

    With 33 gainers to 16 losers, most sectoral indices closed positive, showing the widespread positive sentiment across the sectors and stocks’ groups. The NSE Banking Index rose by 1.7 per cent. The NSE Oil & Gas Index appreciated by 0.7 per cent. The NSE Consumer Goods Index rose by 0.3 per cent while the NSE Industrial Goods Index inched up by 0.02 per cent. However, the NSE Insurance Index slipped by 0.2 per cent.

    The momentum of activities also improved considerably as turnover volume and value rose by 93.3 per cent and 180 per cent respectively. Investors traded a total of 339.68 million shares valued at N5.50 billion in 3,394 deals. Hallmark Insurance was the most active stock with 99.95 million shares valued at N30.99 million. Stanbic IBTC Holdings followed with 72.95 million shares worth N3.61 billion while May & Baker Nigeria placed third with 40.09 million shares worth N91.87 million.

    “We expect performance to stay upbeat in subsequent sessions as investors hunt for bargains,” Afrinvest Securities stated.

    Total Nigeria led the gainers’ chart with a gain of N9 to close at N190. Flour Mills of Nigeria followed with a gain of N1.20 to close at N24.80. Guaranty Trust Bank rose by N1 to close at N39. PZ Cussons Nigeria appreciated by 95 kobo to close at N14. Dangote Sugar Refinery added 50 kobo to close at N15.50 while Access Bank, Africa Prudential and Union Bank of Nigeria rose by 25 kobo each to close at N9.30, N4 and N5.85 respectively.

    On the negative side, GlaxoSmithKline Consumer Nigeria led the losers with a loss of N1 to close at N14. Ecobank Transnational Incorporated and Forte Oil followed with a drop of 70 kobo each to close at N19.30 and N22.30 respectively. Nigerian Breweries declined by 50 kobo to close at N100. Custodian Investments slipped by 35 kobo to close at N5.10 while Dangote Flour Mills dropped by 30 kobo to close at N7.85 per share.

    Analysts at SCM Capital remained cautious on the outlook for the market in the short term. “In the interim, we maintain our conservative outlook, underpinned by continued apathy towards the market as the 2019 electoral cycle draws nearer amid sustained capital flow reversals in emerging and frontier markets,” SCM Capital stated.

  • High-cap stocks drag equities to N42b loss

    Most transactions at the Nigerian equities market closed yesterday at higher prices but losses recorded by large-cap stocks overshadowed the overall market position.

    Benchmark indices at the Nigerian Stock Exchange (NSE) indicated average decline of 0.32 per cent, representing a net capital depreciation of N42 billion.

    With 26 gainers to 14 losers, most sectoral indices closed on the upside as investors sought to take advantage of low share prices across small and mid-cap stocks. However, profit-taking transactions of Dangote Cement, UAC of Nigeria and FBN Holdings depressed the overall market value.

    The All Share Index (ASI)-the main index that tracks share prices at the Exchange, declined from its opening index of 35,426.17 points to close at 35,311.36 points. Aggregate market value of all quoted equities also dropped from its opening value of N12.933 trillion to close at N12.891 trillion. Average year-to-date return for Nigerian equities declined to -7.67 per cent.

    Sectoral analysis showed widespread recovery across the sectors. The NSE Banking Index and NSE Insurance Index rose by 1.0 per cent each. The NSE Oil & Gas Index appreciated by 0.5 per cent while the NSE Consumer Goods Index inched up by 0.2 per cent. However, the NSE Industrial Goods Index played the contrarian, dropping by 0.8 per cent. Dangote Cement is listed under the industrial goods sector.

    Dangote Cement led the losers with a drop of N5 to close at N230. Unilever Nigeria followed with a loss of N1.50 to close at N51. UAC of Nigeria declined by 60 kobo to close at N12. GlaxoSmithKline Consumer Nigeria lost 30 kobo to close at N15. Ikeja Hotel dipped by 27 kobo to close at N2.52 while FBN Holdings declined by 15 kobo to close at N9.50 per share.

    On the positive side, Total Nigeria led the gainers with a gain of N3.40 to close at N181. Flour Mills of Nigeria followed with a gain of N2.10 to close at N23.60. Lafarge Africa rose by 75 kobo to close at N27. Guaranty Trust Bank and Nigerian Breweries chalked up 50 kobo each to close at N38 and N100.50 respectively while Dangote Sugar Refinery added 30 kobo to close at N15 per share.

    Total turnover stood at 178.81 million shares valued at N2.02 billion in 2,981 deals. Nigerian Aviation Handling Company was the most active stock with a turnover of 19.23 million shares valued at N73.05 million. Access Bank followed with a turnover of 16.84 million shares worth N151.83 million while Diamond Bank placed third with a turnover of 13.23 million shares valued at N15.6 million.

    Analysts remained cautious about the outlook for the equities market, with projections depending on the investment horizons.

    “In subsequent sessions, we expect a positive performance as investors position in bellwethers with attractive entry prices,” Afrinvest Securities stated.

    “In the interim, we expect sentiments to remain downbeat underpinned by continued apathy towards the market as the 2019 electoral cycle draws nearer amid sustained sells in emerging and frontier markets by offshore investors,” SCM Capital stated.

     

  • Lafarge Africa to create 10b new shares

    Lafarge Africa Plc plans to create additional 10 billion ordinary shares of 50 kobo each to increase its authorised share capital to 20 billion ordinary shares. The cement company will thereafter float a rights issue to raise N90 billion.

    In a regulatory filing yesterday, Lafarge Africa stated that shareholders of the cement company have been invited to an extraordinary general meeting next month to consider resolutions on the creation of additional shares and the rights issue among other proposals.

    Lafarge Africa currently has authorised share capital of N5 billion consisting of 10 billion ordinary shares.

    Shareholders are expected to authorise the board of the company to “raise capital of N90 billion by way of a rights issue of ordinary shares to its shareholders  and that the rights issue be executed at such price, time, for such period and on such other terms and conditions as the directors may deem fit”.

    Also, the meeting is expected to consider granting the board the authority to “apply any convertible loan, shareholder loan or any other loan facility due to any person, from the company, as may be agreed by the person and the company, towards payment for any shares or rights subscribed for in the rights issue”.

    Shareholders are also expected to consider a resolution authorising the company to enter into a related party transaction to accept loan facility from LafargeHolcim, the foreign majority core investor which holds 76.32 per cent equity stake.

  • Investors jostle for UBA ahead of interim dividend

    United Bank for Africa (UBA) Plc has been the toast of the stock market in the past four weeks as investors sought to take positions ahead of the impending release of the audited half-year results and interim dividend of the commercial banking group.

    UBA was the most active stock last week with a turnover of 332.72 million shares valued at N2.68 billion in 978 deals, representing 34 per cent and 26.15 per cent of the total turnover volume and value traded respectively at the Nigerian Stock Exchange (NSE). It has featured consistently in the past four consecutive weeks within the two most active stocks at the equities market.

    UBA is expected to release its audited report and accounts for the first half ended June 30, 2018 this week. Most analysts expect the bank to sustain its tradition of interim dividend payment based on the first half report.

    Under the rules at the NSE, where a company chooses to audit its quarterly accounts, it shall be required to file such accounts not later than 60 calendar days after the relevant quarter. Generally, quoted companies are required to file their unaudited quarterly accounts with the NSE not later than 30 calendar days after the relevant quarter, and publish it within five business days after the date of filing, in at least two national daily newspapers, and post it on the company’s website, with the web address disclosed in the newspaper publication. Also, an electronic copy of the publication shall be filed with the Exchange on the same day as the newspaper publication.

    A source at the UBA said the commercial banking group will submit its report within the August 29, 2018 deadline for audited half-year results for the period ending June 30, 2018.

    UBA had paid a total dividend per share of 85 kobo for the 2017 business year, consisting of a final dividend per share of 65 kobo in addition to interim dividend of 20 kobo earlier paid after the first-half results. The total payout for 2017 represented a 13 per cent growth on a dividend per share of 75 kobo paid for the 2016 financial year.

    UBA  had started the 2018 business year on a strong footing as the commercial banking group witnessed considerable growths in the top-line and bottom-line. Key extracts of the interim report and accounts of UBA for the first quarter ended March 31, 2018 showed that gross earnings rose by 18 per cent to N119.4 billion in first quarter 2018 compared with N101.25 billion recorded in corresponding period of 2017.

    Profit before tax rose to N26.6 billion in first quarter 2018 as against N25.5 billion posted in first quarter 2017. Profit after tax stood at N23.7 billion in first quarter 2018 compared with N22.4 billion recorded in corresponding period of 2017. The group sustained its strong profitability with an annualized 18 per cent Return on Average Equity (RoAE).

    Group Managing Director, United Bank for Africa (UBA) Plc, Mr. Kennedy Uzoka, said the bank would sustain its impressive performance in the first quarter through the year.

    “Barring unforeseen circumstances, we look forward to sustaining this strong performance through the year, with the primary objective of delivering superior return to our shareholders,” Uzoka said.

    According to him, the first quarter result is a good start to the year and a reflection of the bank’s capacity to sustainably grow earnings over the medium to long term.

    “We are committed to exceeding our 2018 deposit growth target in the year, with strategic focus on retail, low cost savings and current accounts, which is critical to sustaining our net interest margin uptrend,” Uzoka said.

    He pointed out the increasing relevance of the group’s African operations to its bottom line, adding that the bank is increasingly becoming systemically important across the 19 other African countries, where it operates.

    Group Chief Financial Officer, United Bank for Africa (UBA) Plc, Ugo Nwaghodoh, had also assured that the management of the baking group is committed to delivering on the group’s financial goals for the year.

    “We are diligently executing our priorities for the year, as we focus on profitable growth. We are making strong progress in Nigeria, where our continuous market share gain is translating into higher profit. I am pleased that our drive towards optimal scale across our subsidiary operations is progressing well. More importantly, the contribution of these foreign operations to the group’s profit is impressively reflective of geographic diversification,” Nwaghodoh said.

  • Equities sustain recovery after steep decline

    Nigeria equities sustained steady but modest recovery across the markets as investors resumed from the Eid-ul-Kabir holiday to  strong appetite for large-cap stocks.

    After declining to their lowest levels in nearly a year, benchmark indices at the equities market sprang to a recovery in the latter half of the week.

    The All Share Index (ASI)-the main index that tracks share prices at the Nigerian Stock Exchange (NSE), rose by 0.45 per cent in the three-day trading session last week to close at 35,426.17 points as against its week’s opening index of 35,266.29 points. The Federal Government had declared a two-day holiday to celebrate Muslim’s main festival of Eid-ul-Kabir.

    Aggregate market value of all quoted equities at the NSE also rose from its week’s opening value of N12.875 trillion to close the week at N12.933 trillion, representing net capital gain of N58 billion. The sustained recovery at the NSE helped to moderate the negative average year-to-date return for Nigerian equities to -7.37 per cent.

    On the NASD OTC Securities Exchange Plc-the platform for trading in unlisted public companies, the NASD Unlisted Securities Index (NASD USI) rallied by 1.0 per cent to close the week at 698.78 points as against 692.47 points recorded as index-on-board for the week. Total market capitalisation of securities listed on the NASD appreciated by N1.55 billion to close the week at N470.17 billion compared with the week’s opening value of N468.62 billion.

    The rally at the market however remained narrow with continuing large selloffs within the small and mid-cap stocks. At the NSE, three out of every four deals still closed at lower prices while two in every three deals on the NASD closed at discount. Most sectoral indices closed negative, underlining the widespread price depreciation across the sectors.

    The positive overall market position was largely driven by bargain-hunting in Dangote Cement- Nigeria’s most capitalised quoted company and Africa’s largest cement producer, which rose by 6.82 per cent to close at N235.

    The NSE 30 Index-which tracks 30 most capitalised stocks at the NSE, declined by 0.48 per cent last week. The NSE Banking Index dropped by 3.04 per cent. The NSE Consumer Goods Index depreciated by 2.18 per cent while the NSE Oil and Gas Index dipped by 0.23 per cent. However, the NSE Industrial Goods Index rode on the back of gains by Dangote Cement to post a week-on-week return of 1.96 per cent while the NSE Insurance Index rallied net average gain of 0.78 per cent.

    There were 45 losers to 15 gainers at the NSE last week compared with 16 gainers and 56 losers recorded in the previous week. A total of 109 stocks closed flat last week as against 97 stocks that were unchanged in the previous week.

    Newrest ASL Nigeria led the gainers, in terms of percentage gain, with a gain of 19.10 per cent to close at N5.30. Skye Bank followed with a gain of 18.75 per cent to close at N57 kobo. Veritas Kapital Assurance rose by 7.69 per cent to close at 28 kobo. FCMB Group rallied by 7.65 per cent. Dangote Cement rose by 6.82 per cent to close at N235 while Dangote Flour Mills appreciated by 6.49 per cent to close at N8.20 per share.

    On the downside, Jaiz Bank led the table with a drop of 11.11 per cent to close at 48 kobo. Union Diagnostic & Clinical Services dropped by 10.34 per cent to close at 26 kobo. University Press lost 10 per cent to close at N2.07. Livestock Feeds declined by 9.84 per cent to close at N55 kobo. International Breweries depreciated by 9.09 per cent to close at N32 while Red Star Express dropped by 8.77 per cent to close at N5.20 per share.

    Total turnover for the three-day trading session at the NSE stood at 968.95 million shares valued at N10.25 billion in 9,654 deals compared with 1.15 billion shares valued at N12.55 billion traded in 16,649 deals in the previous five-day trading week.

    The financial services sector remained the dominant group with a turnover of 874.02 million shares valued at N7.67 billion in 6,029 deals; representing 90.2 per cent and 74.87 per cent of the total equity turnover volume and value respectively.

    The consumer goods sector followed with a turnover of 26.82 million shares worth N1.62 billion in 1,476 deals while the oil and gas sector placed third with a turnover of 24.80 million shares worth N91.44 million in 752 deals.

    The three most active stocks were United Bank for Africa Plc, NEM Insurance Plc and Zenith Bank Plc, which altogether, accounted for 503.96 million shares worth N4.63 billion in 1,992 deals, representing 52.01 per cent and 45.17 per cent of the total equity turnover volume and value respectively.

    Also traded during the week were a total of 9,205 units of Exchange Traded Products (ETPs) valued at N201,119 in four deals, compared with a total of 1,793 units valued at N282,571.59 that was traded in nine deals penultimate week.

    In the sovereign bond market, a total of 152,741 units of Federal Government Bond valued at N179.381 million were traded this week in 13 deals compared with a total of 2,647 units valued at N2.725 million transacted last week in 17 deals.

    “Despite the positive performance for the week, we note that investor sentiment on bellwethers still remains weak and we believe this will further pressure the market in the coming week. Nevertheless, we expect appetite for penny stocks to stay upbeat as noticed this week,” Afrinvest Securities stated in a weekend note on the equities market.

    “Our expectation for the next trading week is mixed. We expect slow but steady positive sentiment to return to the equity market as profit-taking by foreign and domestic investors dissipate. However, we encourage investors to trade cautiously in the short-to-medium term as the 2019 general election activities is expected to further weigh on the market in the coming months,” analysts at GTI Securities stated.

    Analysts noted the possible negative impact of the tit-for-tat trade dispute between the United States of America and China on the global economy pointing out that the sparring could lead to inflationary effect across the global economy. This could moderate the 3.1 per cent World Bank 2018 global economic growth projection given the fact that both nations account for 49 per cent of global GDP.

    Analysts also pointed out that there could be further decline in capital importation into the Nigerian economy as foreign portfolio investors seek to balance between interest rate increase in United States and Nigeria’s political risks as the 2019 elections draw near.

    Meanwhile, four stocks were traded on the NASD during the week including Central Securities Clearing System (CSCS)    Plc, Afriland Properties, Friesland Campina Wamco Nigeria Plc and Mixta Real Estate Plc. CSCS was the most active with a turnover of 5.96 million shares valued at N69.07 million. Afriland followed with 10,000 shares valued at N7.2 million while WAMCO recorded 7,000 shares worth N33.65 million. CSCS was the only gainer with a gain of 12.86 per cent to close at N11.50. WAMCO dropped by 3.33 per cent to N144.13 while Afriland declined by 3.85 per cent to N2.50 per share.

  • High-cap stocks lift equities to N198b gain

    Nigeria’s largest quoted company and most capitalised financial services institution led the stock market to a major recovery yesterday despite continuing selloffs within mid and small-cap companies.

    More than two out of every three deals at the Nigerian Stock Exchange (NSE) were closed at discount as trading resumed after the Eid-ul-Kabir holiday, but gains by large-cap stocks in the cement and banking sectors lifted the equities market to its major positive close in many weeks.

    With 25 losers to 11 gainers, gains by Dangote Cement Plc and Guaranty Trust Bank Plc boosted the overall market position. The All Share Index (ASI)-the main index that tracks share prices at the Exchange rose by 1.57 per cent from its opening value of 34,663.48 points to close at 35,206.16 points. Aggregate market value of all quoted equities increased by N198 billion to close at N12.853 trillion as against its opening value of N12.655 trillion.

    The rally moderated the negative average year-to-date return to -7.94 per cent.

    Dangote Cement-Nigeria’s most capitalised quoted company led the rally with a gain of N15 to close at N230. Guaranty Trust Bank-Nigeria’s most capitalised financial services company, followed with a gain of 85 kobo to close at N37.80. Dangote Flour Mills rose by 50 kobo to close at N8.20. Oando added 25 kobo to close at N5 while FBN Holdings inched up by 5.0 kobo to close at N9.65 per share.

    Most sectoral indices closed positive, reflecting the weights of the large-cap stocks. The NSE Industrial Goods Index rose by 6.42 per cent. The NSE Oil and Gas Index rose by 0.10 per cent. On the other hand, the NSE Banking Index declined by 0.52 per cent.

    Total turnover stood at 220.71 million shares valued at N2.53 billion in 3,287 deals. Union Bank of Nigeria led activities chart with a turnover of 54.33 million shares valued at N436.11 million. Zenith Bank followed with a turnover of 25.99 million shares worth N571.42 million while FBN Holdings placed third with a turnover of 14.19 million shares worth N138.64 million.

    On the negative side, Total Nigeria led the losers with a drop of N5.40 to close at N177.60. Okomu Oil Palm declined by N3.35 to close at N71.20. Lafarge Africa dropped by N1.55 to close at N26.25. Ecobank Transnational Incorporated dipped by N1.30 to close at N19.20 while International Breweries lost N1.20 to close at N34 per share.

    “In the interim, we expect sentiments to remain downbeat underpinned by continued apathy towards the market as the 2019 electoral cycle draws nearer amid sustained sells in emerging and frontier markets by offshore investors,” SCM Capital stated.

     

     

  • Equities lose N220b as sell-off continues

    Nigerian equities reopened yesterday on a negative note as widespread selloffs within the large-cap stocks led the market to a net capital loss of N220 billion.

    The All Share Index (ASI)-the main index that tracks share prices at the Nigerian Stock Exchange (NSE) dropped by 602.81 points, representing a loss of 1.71 per cent to close at 37,992.12 points. Aggregate market capitalisation of quoted equities also declined by N220 billion to close at N12.655 trillion.

    The downturn was largely due to losses recorded by medium and large capitalised stocks,including Nigerian Breweries, Unilever Nigeria, Guaranty Trust Bank, PZ Cusson Nigeria and Zenith Bank.

    Analysts at United Capital noted that “given that the second quarter, 2018 earnings season is closing out, we expect geopolitical events and policy changes to impact more on global equity Indexes.

    “We also expect the market to remain largely downbeat in the local market due to a continued absence of bullish triggers,” United Capital stated.

    There were two losers for every gainer.  Airline Services and Logistics led the 11-stock gainers’ list by 8.99 per cent to close at N4.85 per share. FCMB Groups followed with a gain of 5.88 per cent to close at N1.80, while Regency Insurance appreciated by 4.35 per cent to close at 24 kobo per share.

    Also, Skye Bank went up by 4.17 per cent to close at 50 kobo and Lasaco Assurance rose by 3.23 per cent to close at 32 kobo per share.

    On the other hand, UAC Property led the 22-stock losers’ list by 8.19 per cent to close at N1.57 per share. Honeywell Flour trailed with a loss of 7.59 per cent to close at N1.46, while Japaul Oil and Maritime Services shed 7.14 per cent to close at 26 kobo per share.

    PZ Cussons dipped by 7.12 per cent to close at N13.05, while United Capital went down by 6.62 per cent, to close at N2.82 per share.

    Also, total volume traded declined by 41.09 per cent to 220.5 million shares, valued at N3.19 billion, and exchanged in 3,054 deals. Transactions in the shares of United Bank for Africa (UBA) topped the activity chart with 42.72 million shares valued at N354.78 million. Zenith Bank traded 36.66 million shares worth N34.23 million and Access Bank transacted 32.69 million shares valued at N310.43 million.

    Skye Bank followed with 18.32 million shares worth N9.16 million, while FBN Holdings traded 15.58 million shares valued at N151.56 million.

  • Biovaccines appoints Azoji COO

    The board of directors of Biovaccines Nigeria Limited (BVNL) has appointed Mr Matthew Azoji as the Chief Operating Officer and Executive Director of the company. Azoji will lead the executive team and will be responsible for the day to day running of the company. The appointment takes effect September 1, 2018

    Biovaccines Nigeria is a joint venture between the Federal Government of Nigeria and May & Baker Nigeria Plc. Incorporated in 2005 as the Special Purpose Vehicle to revive vaccines production activity in Nigeria, May & baker Nigeria holds the majority 51 per cent equity stake in the company while the Federal Government holds the remaining 49 per cent equity stake.

    Biovaccines Nigeria Limited is expected to produce safe and affordable human vaccines for Nigeria, create a regional center for vaccine production in West Africa and position Nigeria as a global player in vaccine business.

    Until his appointment, Azoji was the Managing Director of CHAN Medi-Pharm Ltd, Jos, Plateau State. He graduated in 1985 with a first class honours in Pharmacy from the Obafemi Awolowo University, Ile-Ife, and went on to obtain an MBA (Marketing), in 1999, from the Enugu State University of Science and Technology, Enugu. He was in the 2003 Advanced Management Programme (AMP) of the Lagos Business School.

    Azoji also holds certificates in Pharmaceutical Policy Analysis and Pharmacoeconomics from Utrecht University, The Netherlands, A WHO Collaboration Centre, as well as M.Sc. (Public Health) from the University of London, International Programmes. His other qualifications include M.Phil (Pharmacy Administration) from the Obafemi Awolowo University, Ile-Ife, and a PhD (Clinical Pharmacy & Pharmacy Practice) in view from the University of Jos, Jos, Plateau State.

    Azoji commenced his career as a Medical representative in Astra-Arewa Pharmaceuticals Ltd, Kano in 1987 and later joined May & Baker Nigeria Plc in 1988, where he spent 12 years working in various positions.

     

  • Stanbic IBTC declares N10.1b first half dividend

    •Net profit rises by 79%

    The board of directors of Stanbic IBTC Holdings Plc has recommended 66.7 per cent increase in interim dividend payout as the financial services holding company grew net profit by 79 per cent to N43.08 billion in the first half of 2018.

    The board of directors yesterday indicated that shareholders will receive N10.11 billion as interim dividend for the first half of 2018, representing interim dividend per share of N1 as against 60 kobo paid for the corresponding period of 2017.

    Under a resolution passed at its extraordinary general meeting in August 2016, shareholders of Stanbic IBTC Holdings may choose to receive dividends declared by the company, up to year 2020, either in cash or as new ordinary shares in the company.

    Key extracts of the audited report and accounts of Stanbic IBTC Holdings for the six-month period ended June 30, 2018 showed that gross earnings grew by 17 per cent while profit after tax jumped by 79 per cent. Gross earnings rose from N97.20 billion in first half 2017 to N114.21 billion in first half 2018. Profit before tax also leapt by 74 per cent to N50.73 billion in first half 2018 compared with N29.17 billion in the corresponding period of 2017. Profit after tax increased to N43.08 billion in 2018 as against N24.11 billion recorded in the corresponding period of 2017. Total assets closed first half 2018 at N1.37 trillion as against N1.39 trillion recorded in December 2017.

    Chief Executive Officer, Stanbic IBTC Holdings Plc, Yinka Sanni, described the first half results as stellar performance noting that the bottom-line was boosted by non-interest revenue growth and recoveries from delinquent assets previously impaired.

    According to him, the company’s credit impairment line had a write back of N5.5 billion as at June 2018 as the company continues to intensify recovery efforts on previously classified loans.

    He noted that the company has been making good progress on its drive to reduce cost of funds which has reduced by more than 100 basis points, with a 15 per cent reduction in interest cost between first and second quarters of 2018.

    “We have seen significant growth in transaction volumes across our digital platforms. The volume of transactions via our mobile banking, SME internet banking, USSD platforms and ATMs have increased by over 100 per cent each year-on-year as we continued to drive non-interest income growth. Also, we kicked off the initial stage of implementing a virtual banking proposition,” Sanni said.

    He added that the group’s Africa-China Banking Center was recently launched with the aim of providing bespoke solutions and addressing the needs of business communities in both Nigeria and China while leveraging on its relationship with Standard Bank and the Industrial & Commercial Bank of China (ICBC). Stanbic IBTC Holdings is a member of Standard Bank Group.

    He assured that the group remains focused on driving long-term value for its clients and shareholders through its balanced and diversified business model.

    “We remain well-positioned to meet expected future capital requirements and growth”, Sanni stated.

    Further analysis showed that the group maintained capital adequacy levels that are significantly above the regulatory limit of 10 per cent. The group’s total capital adequacy ratio for the period closed at 27.4 per cent while the commercial banking entity had a ratio of 23.0 per cent. Group Tier 1 capital adequacy ratio stood at 23.3 per cent with the bank having 18.5 per cent). The improvement in group capital adequacy ratio to 27.4 percent from 23.5 percent in December 2017 was as a result of the significant increase in retained profit.

     

     

  • Equities continue decline with N80b loss

    Nigerian equities lost N80 billion in market value yesterday at the Nigerian Stock Exchange (NSE), the eigth consecutive negative trading session as investors continued a selloff that had seen the market mostly on the decline.

    The All Share Index (ASI)-the value-based common index that tracks share prices at the NSE declined by 0.62 per cent from its opening index of 35,288.23 points to close at 35,069.34 points. Aggregate market value of quoted equities also dropped correspondingly from its opening value of N12.883 trillion to close at N12.803 trillion.

    With this, the average year-to-date decline worsened to -8.30 per cent, reflecting the reversal that started since March 2018.

    Most sectoral indices closed negative with the NSE Consumer Goods Index leading the decliners with a drop of 1.5 per cent. The NSE Banking Index declined by 1.0 per cent. The NSE Oil & Gas Index dipped by 0.8 per cent while the NSE Industrial Goods Index slipped by 0.03 per cent. Meanwhile, the NSE Insurance Index inched up by 0.04 per cent.

    Total turnover stood at 209.54 million shares valued at N2.90 billion in 4,044 deals. United Bank for Africa led the activities chart with a turnover of 28.26 million shares. Zenith Bank followed with 22.39 million shares while and FCMB Group recorded 21 million shares.

    “In subsequent sessions, we anticipate a marginal rebound as we expect investors to take position in bellwethers with attractive entry prices,” Afrinvest Securities stated.

    Nestle Nigeria led the losers with a drop of N60 to close at N1,500. Berger Paints declined by 70 kobo to close at N6.50.

    Zenith Bank lost 50 kobo to close at N23 while ASL Newsrest and Oando dropped by 45 kobo each to close at N4.50 and N4.55 respectively.

    On the upside, Total Nigeria rose by N5 to close at N190. FBN Holdings added 30 kobo to close at N9.85. Forte Oil rose by 15 kobo to close at N23.15 while May & Baker Nigeria chalked up 7.0 kobo to close at N2.35 per share.

    “Our outlook for equities in the short to medium term remains conservative, amidst brewing political concerns, and the absence of a one-off positive trigger. However, stable macroeconomic fundamentals remain supportive of recovery in the long term,” Cordros Capital stated in a post-trading note to investors.