The Nation Newspaper

Category: Equities

  • Fidelity rewards customers with N2.6b

    Fidelity Bank Plc has rewarded over 6,000   customers to a tune of N2.6 billion in the last four years.

    This according to the bank is part of its continuous culture of giving back and rewarding its loyal customers.

    This was disclosed in Abuja on Tuesday by the Regional Manager of the bank (Abuja), Vanessa Mordi, during its campaign in Lugbe market.

    According to her, “In the last four years, over 6,000 customers have been rewarded under the Fidelity Personal Savings Scheme (FPSS), and over N2.6 billion has been given back to our customers across the country.

    “For us in Fidelity, we believe in giving back to the society. Lugbe is a place where we have a base. This has crystallized to the setting today for which three winners have emerged. It is something that we will continue to do from time to time to keep our customers and us close together.

    “We want to reach out to our customers and find out what their needs are and what we can do to meet it.”

    She further added, “If the GDP of our country has to change, we cannot do without Small and Medium Scale Enterprises (SMEs). As a financial institution, we have come up with products to support and help SMEs grow.

    “We have also set up the ‘Manage SME Desk’ to advise small and medium scale businesses in their business activities.”

    Three winners emerged during the draw; two customers won N500,000 each while the third winner (a child) operating the sweet Account won the sum of N150,000.

    Once you have an account opened with the bank – either a Savings Account or a Sweet Account (children’s account), and you operate it very well, you are a prospective winner. Customers can do this with as low as N10,000.

    According to a winner in the raffle draw, Mrs. Nneoma Agatha Nmadu, “I started using Fidelity in 2017. I operate other banks as well, but in Lugbe here, Fidelity is the best. I was not surprised to be picked as a winner in the draw because I know they never disappoint.”

    Another winner, Mrs. Stella Onuoha, expressed her delight and surprise that the bank sticks to its promise of rewarding loyalty.

    The third winner, Ms Deborah Enedubiojo, who operated the children’s account, went away with the sum of N150,000.

  • Access Bank tackles insurgency, lifts education in North

    Access Bank Plc has partnered with the United Nations Children Education Fund (UNICEF) and Fifth Chukker,  to promote the educational sector through improved funding. The bank has also partnered with the North to tackle insurgency.

    The bank and the other institutions are supporting child development and strategic community support using the Charity Shield Polo tournament. The purpose is to rebuild and strengthen the educational system with the hope of increasing access to formal education and reducing child delinquency.

    Through this initiative, Access Bank has raised funds to invest in schools, fixed existing ones by providing facilities and teaching materials, and by building new schools in several rural communities.

    Speaking on the development, Access Bank Executive Director, Retail Banking, Victor Etuokwu, said, “In Kaduna, we are facilitating the building of a new school which will have 60 classroom blocks and accommodate over 1,200 children. Once this is completed, we intend to expand our impact to other states and consequently other regions.

    “We are happy that we are not working alone, as we have the full support of UNICEF and Fifth Chukker and hope other banks can join us in our crusade”.

    Read also: Access Bank issues N30b Tier-2 Bond

    He said the Boko Haram insurgency has been a point of concern for both Nigerians and the global community. It has cost more than 4,000 lives, Bank still hopes to revitalize the educational system in the locations of focus, and provide Nigerian children with a chance for a better tomorrow.

    According to the Polo & Equestrian General Manager, Fifth Chukker, Barbara Zingg, the 2019 event also featured a special Children’s Day programs which included riding lessons for 200 children, 150 of which will be underprivileged children selected by UNICEF. She also disclosed that cuisines from countries across West Africa, East Africa and Mexico were introduced as part of a cultural exchange program.

    Over the years, through various schemes and projects, the bank continues to showcase its commitment to being more than banking. The  Group Head, Corporate Communications, Access Bank Plc, Amaechi Okobi, who spoke on the essence of the polo charity event, said, “So, as often as we can, through the support of organisations like UNICEF, Fifth Chukker and the media, we will continue to let Nigeria and the world know that Nigerian children and their education will not be ignored”.

    Also, there are signs of hope for the future, and Access Bank is leading the way. With such an impressive record in giving back to communities, a stronger and sustainable foundation is currently being laid for the future; the Nigerian dream. Therefore, it is important that everyone, as individuals and corporate institutions, begin to raise our voices and drive the action in supporting the growth of the Nigerian child.

    By 2018, the number of out-of-school children in Nigeria rose from 10.5 million to 13.2 million. Although primary education is officially free and compulsory in many states, 61 percent of 6 to 11-year-olds regularly attend primary school with only 35.6 percent of children aged 36-59 months receiving early childhood education. Interestingly, the picture is bleaker in Northern Nigeria, with a net attendance rate of 53 per cent.

    According to the United Nations International Children’s Emergency Fund, only 45 per cent of girls in the North are enrolled in schools, while the North-East and the North-West states had a female primary attendance ratio of 44 percent and 47 per cent. The agency explained that the issue can be traced to poverty, early marriage and cultural beliefs, and further compounded by uncommitted teachers, poor learning environment, leading the country to account for more than one in five out-of-school children globally.

    This year, the Federal Government reported that following various interventions by state government and their partners, the number reduced from 13.2 million to 10.2 million. The number remains mind-boggling, but there is hope. While the population continues to increase through rising birth rate, parents are not financially supported, and children are sent out into the streets and left exposed to abuse, slavery and recruitment for anti-social activities.

    other direction and paint them a picture of different possibilities. However, the first step to achieving this is strengthening the education system and getting as many children as possible off the streets and into the classrooms.

     

     

     

  • FBN Holdings posts N294b half-year gross earnings

    FBN Holdings Plc has posted N294.2 billion gross earnings for the half-year ended June 30, 2019. The figure represents 0.3 per cent year-on-year rise.

    Its net-interest income of stood at N146.7 billion, down two per cent from N149.6 billion in June 2018.

    “Non-interest income of N63.6 billion, up 3.6 per cent year-on-year (as against N61.3 billion in  June 2018; Operating income of N210.3 billion was achieved, down 0.3 per cent while impairment charge for credit losses of N22.1 billion, down 58.1 per cent. Also, operating expenses stood at N148.3 billion, up 24.3 per cent; Profit before tax of N39.9 billion, up 2.6 per cent and Profit after tax N31.7 billion, down 5.4 per cent,” it said.

    Statement of Financial Position also showed that total assets stood at N5.7 trillion, up 1.8 per cent year-to-date, customer deposits of N3.6 trillion, up 2.8 per cent while customer loans loans and advances (net) of N1.74 trillion, up 3.5 per cent.

    Its none performance loans ratio stood at 14.5 per cent among other performance milestones.

    Its Group Managing Director, UK Eke, said: “Despite the difficult operating environment, we remain resolute in delivering on our guidance across key metrics including our commitment towards a single digit NPL ratio by the end of year, as evidenced by the reduction in NPLs from the last quarter.”

    Read also: FBN Holdings plans innovation week

    “Essentially, Atlantic Energy – our largest NPL, was written off, translating into a decline in the NPL ratio from 25.9 per cent in December 2018 to 14.5 per cent as at June 2019, a step that brings us closer to our fiscal year 2019 target and creates more headroom for quality asset growth.”

    “We are confident in the Group’s ability to deliver stronger results sustainably as we execute our strategy and unlock earnings potential from recent investments in innovation and digital transformation. This will enhance our future earnings capacity and drive operational efficiencies that will enable the generation of superior returns to our shareholders.”

    Chief Executive Officer of FirstBank and Subsidiaries Adesola Adeduntan, said: “In line with our commitment to address the legacy asset quality challenges, exposure to Atlantic Energy was written off in the quarter.”

     

     

  • Notore grosses N16.5b in nine months

    Notore Chemical Industries Nigeria Plc recorded a turnover of N16.5 billion in the third quarter of its current business year as the vertically integrated agro-allied and chemicals group struggled with plant downtime and high finance costs.

    Key extracts of the interim report and accounts of Notore for the nine-month period ended June 30, 2019 showed a turnover of N16.5 billion against operating profit of N3.34 billion. The report however showed a top-down slowdown in the performance of the company, a situation the company attributed to plant downtime and finance costs.

    Notore had recorded a turnover of N20.6 billion in period ended June 30, 2018 while operating cost was higher at N3.75 billion in 2018. With cost of sale rising from N12.42 billion to N13.23 billion and financing cost increasing from N7.69 billion to N10.45 billion, the company ended June 30, 2019 with net loss after tax of N7.103 billion as against N3.94 billion in comparable period of 2018.

    The company attributed the top-line performance to plant downtime due to ongoing Turn-Around Maintenance (TAM) programme, which is expected to be completed by first quarter of 2020. The company stated that the plan will operate at its nameplate capacity after the completion of the TAM.

    The company stated that it remains optimistic on its growth outlook noting that the Nigerian fertilizer demand is quite robust and is expected to continue to grow because of the federal government’s efforts to increase both the supply and demand for fertilizers, through provision of subsidies, grants and loans and through recent government initiatives such as the Presidential Fertilizer Initiative (PFI).

    According to the company, the domestic fertilizer market is yet to reach its full potential as the consumption of fertilizer per hectare of arable land in Nigeria is below 10kg compared to the 200kg recommended by Food & Agriculture Organisation.

    Notore added that the demand for urea and compound fertilizers, such as NPK, from the West African markets and Sahel African states is also quite significant noting that it sold all the 156,615 metric tonnes of urea that it produced during the period under review.

    “Additionally, on-going market demand for NPK and NPK specialty will boost the business’ revenues when its newly installed and commissioned 2,000 MTD NPK blending plant begins production. Consequently, Notore has begun gradual efforts to further diversify its revenue streams by selling specifically produced Notore seeds to farmers. To enhance profitability, Notore is working on financial initiatives to reduce its finance cost considerably,” Notore stated.

     

  • ‘NAHCO’ five-year plan’ll deliver greater returns’

    The board and management of Nigerian Aviation Handling Company (NAHCO) Plc at the weekend assured shareholders that ongoing implementation of a strategic five-year growth plan will lead to a more agile and profitable company.

    At the Annual General Meeting (AGM) in Kano, directors of NAHCO laid out strategic growth objectives, key implementation drives, challenges and transformational initiatives being taken to sustain the company as the leading ground handling company with sustainable returns to shareholders.

    The first AGM by the new board and management of the company, directors of the company outlined that they have launched a new five-year strategy and transformation plan that covers between this year and 2023, which is expected to drive growth, service improvement, improved profitability and also ensure that NAHCO maintains its leadership position, despite increasing competition in the ground handling business.

    The assurance came as shareholders approved the distribution of N406 million as cash dividend for the 2018 business year, representing a dividend per share of 25 kobo.

    Nigerian Aviation Handling Company (NAHCO) Plc Chairman, Dr Seinde Fadeni, said the new board and management have reset the company’s group structure and operations and have started implementing key initiatives to address cost structure, realign products and interface with customers and other stakeholders with a view to ensuring optimal performance in the years ahead.

    He said the company has started modernisation of its warehouses in order to position itself for global changes in cargo handling and management noting that NAHCO is currently investing in warehouse refurbishment, facility and equipment upgrade to ensure leadership in all areas of air cargo within the West and Central African region.

    He pointed out that while increased costs of operations and administrative expenses impacted the company’s performance in 2018, the new management has been addressing these cost centres to ensure improved efficiency and competitive returns.

    “It is my belief that our company will grow more rapidly in the coming years in light of the measures and innovations being implemented,” Fadeni said.

    According to him, the company’s five-year strategic plan was anchored on five strategic pillars of operational excellence, digital transformation, people and culture transformation, organic and inorganic growth and diversification. These pillars would be driven by three main enablers including adequate funding and capitalisation, financial grip and enhanced risk management.

    He explained that the company’s strategy for growth entails maximising parent company and subsidiary companies’ opportunities and capacity utilisation while taking advantage of market trends and the group’s dominant market position.

    “We are restructuring our strategic business units (SBU) and subsidiary companies in such a way that from now on, every member of the NAHCO Group contributes more to the overall profitability of the group. We have set a revenue target that is ambitious but achievable. We expect to grow our revenues by a factor of four times 2018 figure and achieve this over the next five years. We have resolved to maximise the revenue opportunities inherent in the synergies of our group,” Fadeni said.

    He pointed out that the company is developing sustainable business plans for two of its subsidiaries-NAHCO Free Zone (NFZ) and Mainland Cargo Options (MCO) while exploring best strategy to ensure long –term viability of NAHCO Energy Power and Infrastructure (EPI).

    “The company’s outlook for 2019 is positive, with the unwavering commitment of the board, management and staff, we are fully committed to perform better and deliver more value to you, our esteemed shareholders. We will continue to implement the strategic direction we have set for the transformation of NAHCO,” Fadeni said.

    Fadeni noted that one of the critical elements of the company’s growth strategy is the asset renewal strategy and policy for all its plant machinery and equipment including ground support equipment (GSE) and cargo management equipment, which will help to improve service delivery and efficiency while reducing maintenance costs.

    He said the company has commenced purchase of necessary machinery and equipment from international OEMS and reputable vendors with some of the equipment already received and commissioned into service.

    According to him, the company has also commenced the upgrade of its infrastructure, facilities and equipment starting from the Lagos Warehouse Complex. Early 2019, it added a cold room facility to its Kano warehouse. It has also committed material investment and upgrades to its strategic business units in Abuja and Lagos.

    “We have started on a good note in 2019, as we move into our 40th year of commercial operations with the acquisition of new and modern equipment and a new business strategy for growth. We are on a clear path of positive transformation. This is our new NAHCO, more profitable, more agile; the new board is committed to this transformation which will reposition the company for growth, carry out the necessary people transformation and culture change, achieve operational excellence and increased profitability,” Fadeni said.

    Nigerian Aviation Handling Company (NAHCO) Plc Group Managing Director, Mrs Olatokunbo Fagbemi, said the new management has continued to make steady progress in driving the company’s new vision “to be the leading service provider, continuously innovating and reshaping our chosen markets”. Fagbemi assumed office in December 2018.

    She explained that the “New NAHCO” is being built on core values of safety, integrity, innovation, reliability, respect and empathy noting that the “New NAHCO” is to ensure there is regular communication, transparency in decision making and sincerity in governance.

    “We are building a culture of safety, security, innovation, integrity and ownership. Our “New NAHCO” is building a cohesive management team and an efficient workforce. Our “New NAHCO” is harnessing the strengths and opportunities of the group structure to drive growth and profit. Our “New NAHCO” is focused on retaining existing customers and on-boarding new customers. Our “New NAHCO” is focused on strong balance sheet, profit and loss and enhanced free cashflow. Our “New NAHCO” is focused on consistently delivering value to all stakeholders,” Fagbemi said.

    She noted that NAHCO has continued to maintain internationally acceptable and recognised standards of its operations as the company earlier this year accomplished the feat of acquiring IATA Safety Audit for Ground Operations (ISAGO) certification in three major airports of Lagos, Abuja and Kano, making NAHCO the only ground handler in Nigeria to achieve this.

    She added that the company also has achieved the Third Country EU Regulated Agent (RA3) revalidation of its operations in the major airports of Lagos, Abuja, Port Harcourt and Kano by the European Union.

    “NAHCO has come out successful in all the airlines audits we have done this year. We have also received commendation for the new measures we have put in place to ensure stricter security and compliance to international standards at our facilities. In addition, our staff have received commendations from several airlines,” Fagbemi said.

    She assured that in the coming months, the company will increasingly become an efficient organisation that is fit and able to deliver services at optimum prices to the delight of its stakeholders.

    According to her, NAHCO is working with full understanding of the market place to create a win-win strategy with its suppliers and service providers to ensure that the costing and pricing is optimal and sustainable.

    As the International Air Transport Association (IATA) pushes for more modern processes in anticipation of projected double in the size of the air cargo industry over the next two decades, Fagbemi said NAHCO is positioning for the global implementation of the e-Air Waybill (e-AWB) with a view to be able to provide ecargo service to all its customers and partners within the next 24 months.

    She assured that the company is proactive and resilient enough to thrive despite domestic and global challenges, urging shareholders to support the company as it implements its growth plan and transformation agenda.

    “We have a team that is seasoned and has a clear view of the strategic direction and what the competitive landscape is now vis a vis what it would be in the next few years. We have committed, dedicated and trained people focused on the customer,” Fagbemi assured.

    Audited report and accounts of NAHCO for the year ended December 31, 2018 showed that turnover grew by 24 per cent to N9.83 billion. Gross profit margin increased from 29 per cent in 2017 to 32 per cent last year. With 19 per cent increase in operating costs and 27 per cent increase in administrative expenses, profit before tax dipped by 16 per cent to N503.2 million while profit after tax dropped to N196.8 million last year.

  • Equities close flat as investors stake N11.4b

    Nigerian equities traded almost on the balance last week as first-half earnings renewed investors’appetite for quoted shares. Benchmark indices at the Nigerian Stock Exchange (NSE) showed a marginal drop of 0.003 per cent last week, leaving the average year-to-date return almost unchanged at -11.17 per cent.

    The All Share Index (ASI)- the common value-based index that tracks share prices at the Exchange, closed weekend at 27,918.59 points as against its week’s opening index of 27,919.50 points. Aggregate market value of quoted equities also slipped from its week’s opening value of N13.607 trillion to close weekend at N13.606 trillion.

    With 31 advancers to 29 decliners, the market performance was buoyed by the release of interim earnings reports by several companies. NPF Microfinance Bank led the advancers, in percentage terms, with a gain of 14.16 per cent to close at N1.29 per share. BOC Gases followed with a gain of 11.67 per cent to close at N5.07. Lafarge Africa rose by 11.2 per cent to close at N14.40. Neimeth International Pharmaceuticals appreciated by 10 per cent to close at 55 kobo while Nigerian Aviation Handling Company rose by 9.36 per cent to close at N2.57 per share.

    On the negative side, Linkage Assurance led the decliners with a loss of 20.31 per cent to close at 51 kobo. International Breweries dropped by 18.3 per cent to close at N12.50. Forte Oil declined by 10.67 per cent to close at N18. Caverton Offshore Support Group dropped by 10.51 per cent to N2.30 while Nascon Allied Industries depreciated by 9.67 per cent to N13.55 per share.

    Total turnover stood at 1.07 billion shares worth N11.39 billion in 16,346 deals last week compared with a total of 1.09 billion shares valued at N13.39 billion traded 15,774 deals two weeks ago. The financial services sector led the activity chart with 606.44 million shares valued at N5.38 billion in 7,529 deals, representing 56.75 per cent and 47.23 per cent of the total equity turnover volume and value.

    The information and communication technology sector staged a distant second with a turnover of 225.576 million shares worth N1.776 billion in 751 deals while the conglomerates sector placed third with a turnover of 66.375 million shares worth N85.924 million in 890 deals.

    The three most active stocks were Courteville Business Solutions, United Bank for Africa (UBA) and FCMB Group, which altogether accounted for 402.69 million shares worth N819.83 million in 1,526 deals, contributing 37.68 per cent and 7.20 per cent to the total equity turnover volume and value.

    A total of 753 units of Exchange Traded Products (ETPs) valued at N102,213 were also traded in eight  deals while a total of 22,242 units of Federal Government bonds valued at N22.56 million were traded in 15 deals last week compared with a total of 5,666 units valued at N5.847 billion traded in 17 deals two weeks ago.

  • MTN declares N60b H1 dividend

    MTN Nigeria Communications Plc has earmarked N60 billion as interim cash dividend to shareholders as the telecommunication company marked its first post-listing performance with considerable growths across major indices.

    The board of the telco indicated shareholders will receive a dividend per share of N2.95 for the first half ended June 30, 2019. This however represented a drop of 17.83 per cent from N3.59 per share paid for the first half of 2018.

    Key extracts of the six-month report showed that profit before tax rose by 30.9 per cent to N141.8 billion in first half 2019 as against N108.35 billion recorded in comparable period of 2018. Profit after tax grew by 34.8 per cent from N73.4 billion to N98.93 billion. Total turnover grew by 12.12 per cent to N566.95 billion as against N505.67 billion. Operating profit had risen by 39.49 per cent from N136.50 billion to N190.4 billion. Earnings per share rose by 34.8 per cent to N4.86 compared with N3.61.

    The report showed that the telco’s mobile subscribers increased by 3.3 million within the first six months of this year to 61.5 million while service revenue increased by 12.2 per cent. Voice revenue increased by 11.4 per cent, data revenue rose by 31.7 per cent while fintech revenue increased by 21.2 per cent. However, digital revenue dropped by 64.5 per cent. The company’s earnings before interest, tax depreciation and amortisation (EBITDA) rose by 40 per cent to N304.9 billion while EBITDA margin improved by 10.7 percentage points to 53.8 per cent.

    Read Also: MTN retires Dozie, five others

    MTN Nigeria Communications Plc Chief Executive Officer, Ferdi Moolman described the first half performance as a solid performance as the company continued to invest to improve network quality and expand 4G coverage.

    He noted that recent work on revamping data prices and accelerating 4G network has put the company in a strong competitive position to offer more value to customers and provide new impetus for overall corporate growth.

    He said the listing of the company on the Nigerian Stock Exchange (NSE) in May, this year demonstrated the company’s commitment to the market while providing opportunity to domestic investors to participate in and benefit from the company’s growth.

    “Our overriding priority for the rest of the year is to focus on our BRIGHT strategy to build a sustainable business and create value for customers. We will continue to progress in the second half of the year making improvements to our network experience, subscriber growth and enhance operational efficiency. We expect lower data pricing and our acceleration of the 4G network expansion to bolster the acquisition of customers and data traffic volumes in the second half,” Moolman said.

  • New Zenith Bank’s GMD assures of improved returns

    The new Group Managing Director of Zenith Bank International Plc, Mr Ebenezer Onyeagwu has assured shareholders and other stakeholders that the bank has sustainable structure that will ensure continuous growth and improved returns to shareholders.

    Onyeagwu spoke yesterday in Lagos during an introductory visit to the Nigerian Stock Exchange (NSE). The new GMD was honoured with the ceremonial beating of the closing gong at the stock market.

    He said the main responsibility of the new leadership of the bank is to uphold the strong legacy and outstanding pedigree that has been set by the previous management by improving financial performance and shareholders’ value.

    “We will do everything within us to elevate the strong value and the excellent performance that the bank has been known with. Under the new leadership, we will delivered outstanding performance, reward our shareholders, provide strong timely disclose to the market,” Onyeagwu said.

    According to him, while the management may not be able to immediately predict the outcomes of many headwinds in the banking sector and the overall economy, it is certain that the bank will predictably deliver impressive results.

    Read Also: Fed Govt, Sterling Bank, others partner on renewable energy

    He allayed fears in some quarters that the new loan-to-deposit ratio of the Central Bank of Nigeria (CBN) will negatively impact the banking sector noting that increased loans and more effective credit risk management will result in greater benefits for the banking sector and the general economy.

    According to him, the loan-to-deposit ratio policy of apex bank is a laudable initiative that will boost the economy.

    He noted that the policy will facilitate lending to the small and medium enterprises (SMEs) sector as well as the retail sector of the economy, which will bring positive impact to the overall economy.

    He pointed out that while the attitudes of some borrowers have been major impediments to lending, improved technology in the banking sector has helped to reduce the tendency to serial loan defaulters.

    “With the BVN, this has help in solving the problem of identity and the Banker’s Committee is working on building stronger capability into that. The capability that will enable us enforce very effective and tight credit control such that if a customer takes a loan from Bank A and abandoned it and go to Bank B to open account, with the BVN, such customer can be traced. If the customer is owning Bank A N1 million and go to Bank B to  open an account and deposit N2 million, electronically, the system will recover the money from the debtor. We believe this will help drive decent behaviour and promote good credit borrowers,” Onyeagwu said.

    He added that the bank would continue to invest in cutting-edge technology to boost its digital banking, which remains a priority.

  • 113 Nigerian investors invest in US citizenship programme

    A total of 113 Nigerian investors signed up for the Employment -Based Fifth Preference Category 1, EB-5 Visa, which allows investors and all their immediate family to become permanent citizen of United States of America (USA).

    The EB-5 Visa Programme was created by US Congress in 1990 by the Immigration Act to stimulate the US economy in exchange for immigrant investors to become lawful permanent residents along with their spouse and children below the age of 21. The programme is being controlled and monitored by United State Citizenship and Immigration Services (USCIS) .Nigerian investors have been advised to take right and swift decision now to further take advantage of the programme as the USA is prepared to hike its EB-5 Visa Fee by 270 per cent.

    Chief Executive Officer, Brandley International Limited, Olumide Idowu gave this advice in a press statement.

    The advice came on the heels of the completion of EB-5 Immigrant Investor Programme Modernisation’s review by the US Office of Management and Budget (OMB), in June. The EB-5 Visa affords foreigners opportunity to bring capital investment into the United States in exchange for citizenship.

    According to Idowu, as a result of the review, the investment fee is expected to grow to about $1.35 million from current $500,000 and increase as much as $1.8 million from current $1 million.

    “It is believed that once the final rule is published in the Federal Register, the usual time for a legislative change to take effect is 30-60 days. The time to act is now. With the priority dates still in place, any interested investor can still get their petition signed under the old fee if they act now. One major cause of delay in filing for EB-5 is the Source of Funds (SOF). It takes two or more months for attorney to get pass this stage before filing the main petition Form i526. It is pertinent at this point, prospective investors should contact a regional centre and a reputable attorney to get started. For those who can afford the higher minimum investment level of $1.35 million and above, it is advisable that they should apply as normal,” Idowu said.

  • Equities rebound with N163b gain

    Nigerian equities rode on the back of renewed bargain-hunting to a major recovery yesterday, rallying N163 billion gains in its second positive closing in eight trading sessions. With increased demand for shares, average value index rose by 1.21 per cent.

    The breather came as President Muhammadu Buhari submitted the names of ministerial nominees to the National Assembly. The Monetary Policy Committee of the Central Bank of Nigeria (CBN) yesterday also decided to retain the Monetary Policy Rate (MPR), the benchmark interest rate, at 13.5 per cent.

    Aggregate market value of all quoted equities at the Nigerian Stock Exchange (NSE) rose from its opening value of N13.553 trillion to close at N13.716 trillion, representing a net capital gain of N163 billion. The All Share Index (ASI)- the common value-based index that tracks share prices, rallied from its opening index of 27,808.69 points to close at 28,144.87 points. The rally reduced the negative average return to -10.45 per cent.

    Read also: Harmonized tax bill to hit NASS soon – FIRS

    With 21 gainers to 15 losers, most sectoral indices also closed on the upside. The NSE Industrial Goods Index recorded the highest gain of 3.91 per cent. The NSE Consumer Goods Index followed with a gain of 1.66 per cent while the NSE Banking Index appreciated by 0.46 per cent. On the downside, the NSE Oil & Gas Index dropped by 0.66 per cent while the NSE Insurance Index dipped by 0.18 per cent.

    NSE’s highest-priced stock, Nestle Nigeria led the gainers with a gain of N67 to close at N1,327. Dangote Cement, NSE’s most capitalised stock, followed with a gain of N4 to close at N174. Lafarge Africa rose by N1.30 to close at N14.40. MTN Nigeria Communications appreciated by N1 to close at N127. Cement Company of Northern Nigeria and Cadbury Nigeria added 55 kobo each to close at N12.55 and N11.35 respectively. Union Bank of Nigeria rose by 40 kobo to close at N6.85. UAC of Nigeria chalked up 30 kobo to close at N5.90. Nigerian Aviation Handling Company (Nahco) rose by 22 kobo to close at N2.57 while Stanbic IBTC Holdings garnered 10 kobo to close at N38.10 per share.

    On the negative side, Forte Oil led the losers with a drop of N2 to close at N18.15. International Breweries declined by N1.50 to close at N13.80. Dangote Sugar Refinery declined by 45 kobo to close at N10.80. GlaxoSmithKline Consumer Nigeria dropped by 30 kobo to close at N8. United Bank for Africa (UBA) lost 25 kobo to close at N5.70. Africa Prudential dipped by 20 kobo to close at N3.50 while Ikeja Hotel dropped by 12 kobo to close at N1.34 per share.

    Total turnover stood at 135.18 million shares valued at N2.09 billion in 3,358 deals. Guaranty Trust Bank was the most active stock with a turnover of 15.65 million shares valued at N453.43 million. Zenith Bank followed with a turnover of 12.57 million shares worth N232.73 million while Lafarge Africa placed third with 12.16 million shares valued at N172.8 million.

    Market analysts, however, remained cautious. “We expect bearish performance to dominate activities in the market, although we see opportunity for bargain hunting,” Afrinvest Securities stated.

    Analysts at Cordros Securities maintained their conservative outlook for the equities market in the short to medium term, citing the absence of any catalysts to drive positive market returns.

    Most analysts agreed that the stock market had been weakened by macroeconomic uncertainties due to the emerging political situation.

    Managing Director, Network Capital, Mr Oluropo Dada, said political risk was a major factor noting that early determination of the presidential election result at the tribunal and appointment of ministers will further create legitimacy for the government and give clearer direction to foreign investors who are major drivers of the market.

    Managing Director, APT Securities and Funds Limited, Mallam Kasimu Garba Kurfi said early release of the ministers’ list could clear the macroeconomic uncertainties about who will lead the economic agenda of the government.