The Nation Newspaper

Category: Money

  • Nigerian equities lose N124b in 19,143 deals

    Nigerian equities lose N124b in 19,143 deals

    Nigerian equities fell for four consecutive trading sessions and lost about N124 billion last week as the market continued to grope for macroeconomic direction.

    The two main common benchmark indices at the Nigerian Stock Exchange (NSE) indicated a week-on-week average decline of 1.08 per cent, worsening the negative sentiments that had dominated the market this month as investors await major economic decisions and appointments by the President Muhammadu Buhari administration.

    Average year-to-date return at the stock market worsened to -4.04 per cent at the weekend, driven by a month-to-date return of -3.07 per cent in June.

    Cross-sectoral review indicated that most stocks are trading in the negative with the negative sentiments more pronounced in the oil and gas sector and the consumer goods sector, two sectors that had suffered from transitional leakages.

    The NSE 30 Index, which tracks the 30 most capitalized companies, recorded a year-to-date return of -2.91 per cent. The NSE Consumer Goods Index, which tracks large manufacturers of fast moving consuming goods, recorded average year-to-date return of -6.75 per cent. The NSE Lotus Islamic Index, which tracks Islamic compliant ethical stocks, recorded average loss of 2.39 per cent. NSE Insurance Index recorded average loss of -2.47 per cent while the NSE Oil and Gas Index opened today with average year-to-date loss of 6.19 per cent. Meanwhile, the NSE Banking Index, which tracks the most active sector, carries a positive return of 5.26 per cent while the NSE Industrial Goods Index posted average return of 3.64 per cent.

    Total turnover last week stood at 1.28 billion shares worth N31.3 billion in 19,143 deals compared with a total of 1.55 billion shares valued at N17.53 billion that were traded in 17,785 deals two weeks ago. The bank-led financial services sector remained the most active with a turnover 976.65 million shares valued at N11.27 billion in 10,121 deals; representing 76.2 per cent and 36 per cent of the total equity turnover volume and value respectively. The consumer goods sector occupied a distant second on the activity chart with a turnover of 114.14 million shares worth N7.98 million in 3,467 deals. The oil and gas sector placed third with a turnover of 70.87 million shares worth N10.49 billion in 2,016 deals.

    The trio of Access Bank Plc, Zenith International Bank Plc and Guaranty Trust Bank Plc were the most active stocks jointly accounting for 486.911 million shares worth N7.69 billion in 3,963 deals, representing 37.99 per cent and 24.56 per cent of the total equity turnover volume and value respectively.

    Further share price analysis indicated that 28 equities appreciated during the week while 46 equities depreciated. A total of 119 equities remained unchanged.

     

  • CAP’s shareholders get N1.65b dividends

    SDhareholders of CAP Plc, a subsidiary of UAC of Nigeria (UACN) Plc, yesterday approved the distribution of additional N595 million as final dividends for the 2014 business year, bringing the total dividends for the year to about N1.645 billion.

    At the annual general meeting in Lagos, shareholders overwhelmingly approved the recommendation to distribute N595 million, representing a dividend per share of 85 kobo. The company had earlier paid an interim dividend of N1.05 billion at a rate of N1.50 per share. This brought total dividend per share to N2.35 for the 2014 business year.

    Key extracts of the audited report and accounts of CAP, the manufacturer of Dulux, a leading global paint brand, showed that profit before tax of rose by 17 per cent to N2.44 billion in 2014 as against N2.09 billion in 2013. Profit after tax also rose by 17 per cent from N1.42 billion to N1.66 billion. Turnover had risen by 13 per cent from N6.20 billion to N6.99 billion.

    Addressing the shareholders at the meeting held at Golden Tulip Festac, Lagos, chairman, CAP Plc, Mr. Larry Ettah said the company would continue to harness its distinctive brand quality, strong pedigree and continuous investments to sustain performance.

    According to him, as a forward-looking business, the company will continue to seek and harness opportunities that ensure it remains relevant and create more value for its shareholders and other stakeholders.

    “We will invest in cutting edge technology for paint manufacture that will enable your company to efficiently meet the needs of consumers, allowing them to express their colour preferences in the local variant of our flagship brand,” Ettah assured.

    He said the company had expanded its operations and opened 11 new Dulux colour shops across the country in 2014 while it also successfully executed the Dulux mobile room makeover, an innovative marketing campaign in Nigeria, to the delight of its teeming customers.

    He decried the inclement business environment noting that businesses have continued to be buffeted by the usual challenges of poor infrastructure and public services, insecurity, official corruption, multiple taxes, power supply shortfalls and volatile capital market.

    He lamented that power supply had declined so precipitously in the country that public power became non-existent just as the currency devaluation heralded another round of sharp increases in the prices of inputs.

    He added that corporate performance was adversely affected by the elevated political risk and weak consumer purchasing power remained weak, pointing out that the effects of these developments on the economy were low corporate revenues and margins and higher cost of doing business.

     

  • ‘Demutualisation central to NSE, stockbrokers’ value creation’

    ‘Demutualisation central to NSE, stockbrokers’ value creation’

    The Nigerian Stock Exchange (NSE) and its dealing members are working to realize the demutualisation of the Exchange to unlock values for the dealing members and widen the economic benefits of the Exchange to the general citizenry.

    President, Nigerian Stock Exchange (NSE), Mr. Aigboje Aig-Imoukhuede, at the annual general meeting of the Exchange in Lagos, said that the dealing members and the larger capital market committee are working towards the demutualisation of the Exchange.

    According to him, it is only the realization of demutualisation that all stakeholders can deeply participate in the creation of wealth within the NSE as an economic entity.

    Chief executives of stockbroking firms also met on Saturday to discuss the demutualisation of the Exchange among other issues.

    Aig-Imoukhuede said the priority of the council and management of the Exchange this year is to deepen the market in terms of issues and participation while also creating an enabling environment that is attractive to investors.

    “We are working with government in the area of economic policy, to ensure that the government is aware that the financial markets are critical to the successful implementation of government policy,” Aig-Imoukhuede said.

    He noted that the NSE as an institution had in 2014 recorded impressive growth along key financial indices with total assets rising by over 30 per cent while net assets grew by 29 per cent.

    He pointed out that the growth in net assets was driven by a consistent rise in trading revenue and other income. The NSE recorded an operating surplus of N3.95 billion, representing a significant increase of 21 per cent from 2013 and closed the year with accumulated funds of N17.49 billion.

    “We achieved record revenues, thanks to a focused business model and the completion of several strategic initiatives. These initiatives have strengthened and improved the functioning of our market, leading to significant gains in profitability and efficiency,” Aig-Imoukhuede said.

    But the stock market generally was down in 2014. With average return of -16.14 per cent, quoted equities lost a whooping N1.75 trillion during the year.  Aggregate market value of all quoted equities closed 2014 at N11.477 trillion as against its opening value of N13.226 trillion.

    Chief executive officer, Nigerian Stock Exchange (NSE), Mr. Oscar Onyema said the outlook for the Nigerian capital market remains positive in spite of the current headwinds.

    “We will continue to deliver on our strategic commitments, drive operational excellence and create value for the exchange and our various stakeholders,” Onyema said.

     

  • Govt earns N735b in April, 35% higher than March

    Govt earns N735b in April, 35% higher than March

    Federally-collected revenue in April was estimated at N735.07 billion, showing an increase of 35.8 per cent above the receipts in the preceding month, the Central Bank of Nigeria (CBN) Economic Report for April, said.

    The report, released at the weekend, indicated that the figure was lower than the receipts in the corresponding period of 2014 by 8.4 per cent.

    However, at N286.24 billion, oil receipts (gross), which constituted 38.9 per cent of total revenue, was lower than the receipts in the preceding month and the corresponding period of 2014, by 21.5 and 54 per cent.

    The apex bank said the fall in oil receipts relative to the level in the preceding month, was attributed to the decline in revenue from crude oil and gas exports, occasioned by the drop in the prices of crude oil in the international market.

    Non-oil receipts which stood at N448.83 billion or 61.1 per cent of the total, was 154.1 and 150.4 per cent higher than the receipts in the preceding month and the corresponding month of 2014, respectively.

    The development reflected, largely, the rise in receipts the Federal Government independent revenue. “Federal Government estimated retained revenue in April 2015 was N452.38 billion, while total estimated expenditure was N155.52 billion. Thus, the fiscal operations of the Federal Government resulted in an estimated surplus of N296.86 billion,” it said.

    According to the CBN, crude oil export was estimated at 1.46 million barrels per day (mbd) or 43.80 million barrels during the month. The average price of Nigeria’s reference crude, the Bonny Light (370 API), was estimated at US$59.55 per barrel, indicating an increase of 3.7 per cent above the level in the preceding month.

    The end-period headline inflation rate (year-on-year), in April 2015, was 8.7 per cent, compared with 8.5 per cent in the preceding month. Inflation rate on a 12-month moving average basis remained at 8.2 per cent, same as in the preceding month.

    Foreign exchange inflow and outflow through the CBN in April 2015 was $2.88 billion and $2.55 billion, respectively, and resulted in a net inflow of $0.33 billion. Foreign exchange sales by the CBN to the authorised dealers amounted to $2.39 billion, showing a decline of 14.9 per cent below the level in the preceding month.

    Relative to the level in the preceding month, the average naira exchange rate against the dollar appreciated at both the bureau-de-change and interbank segments of the market. Non-oil export receipts declined by 51.3 per cent below the level in the preceding month. The development was attributed, largely, to the significant decline in export earnings from the minerals sector.

    Also, world crude oil output last April was estimated at an average of 94.10 million barrels per day (mbd), while demand was at 92.50 million barrels per day (mbd), compared with 93.99 and 91.91 mbd supplied and demanded, respectively, in the preceding month.

     

  • Ecobank empowers women entrepreneurs

    Ecobank Nigeria is partnering Women’s Entrepreneurship Day (WED) on the hosting of this year’s Women of West Africa Entrepreneurship (WOWe) Festival.

    WOWe Festival 2015 with the theme: Vision to Reality slated for June 25 and 26 will provide the opportunity for female entrepreneurs and corporate professional women with entrepreneurial ambitions, to secure practical information on how to transform their businesses and realise their entrepreneurial ambitions.

    The conference, the bank said in a statement, will also provide a high level networking platform that connects the most influential women entrepreneurs who exchange ideas, address challenges, will uncover new strategies and dialogue on issues relating to entrepreneurship and leadership.

    Deputy Managing Director, Ecobank Nigeria, Tony Okpanachi said the bank decided to partner  the festival because of its belief in female entrepreneurs. He was optimistic that the existing and budding entrepreneurs would find the knowledge sharing from the festival useful.

    “As a bank, it is part of our philosophy to sponsor initiatives such as this. We believe this interactive and engaging dialogue from experts that have been assembled to facilitate at the conference will assist existing and budding entrepreneurs in becoming their own brands and job creators for their societies and have a positive impact on the sub-region economy.”

    Founder, WOWe, Tori Abiola said this year’s festival brings a completely new and superior experience for women entrepreneurs as it incorporates its first exhibition running with co-located seminars for two full days. “This amazing platform will give visitors the opportunity to network, showcase products and give 10 lucky VIP guests the opportunity to pitch to investors looking to fund $1,000,000 towards women driven entrepreneurship ventures at the show.”

    She explained that the event will also feature eight seminar streams, workshops and master classes which will focus on fashion and beauty; technology and digital powerhouses; finance and investments; manufacturing; agri-business; the creative industries – design, media and entertainment; talent and skills management; export.

    She added that attendees will have opportunity to examine future trends favouring women entrepreneurship, identify immediate long and short term needs of definitive industries and uncover up-and-coming technologies that will add value and assist in business growth and overall profits.

  • FCMB rewards millionaire promo winners

    Another set of 643 customers of First City Monument Bank (FCMB) Limited have been rewarded at the second draws of the Bank’s ongoing promotion tagged, ‘’FCMB Millionaire Promo’’.

    The winners emerged at the electronic selection which took place across the three regions and 25 zones of the bank nationwide held last week. While three customers of the bank were rewarded with the sum of N1 million each at the regional draws held in Akure (Ondo State); Awka (Anambra State) and Abuja, a total of 640 others smiled home with LED televisions, generating sets, decoders, tablets, smart phones and other consolation prizes at the Zonal draws held in different parts of the country.

    At the Lagos/Southwest Regional draw which took place in Akure, Mr. Abdulkadiri Olorunjuwon, got the reward of N1 million, while at the Abuja/North Regional draw held in Abuja, Mr. Isaiah Abari received the same amount while Mr. Odia Osasumwen won N1 million at the Southeast/ Southsouth Regional draw that took place at Awka.

    The FCMB Millionaire Promo, which began  in February and ran till July, is targeted at all segments of the society and for existing as well as potential savings account customers. The eligible products/accounts for the promo include FCMB basic savings, kids account, Nairawise, e-savings, premium savings and third party accounts.

    Speaking on the promo and how to participate draws, the Senior Vice President/Divisional Head of Retail of FCMB, Mr. Olu Akanmu, said all an existing or new customer of the Bank needs to do is to save N10,000 in any of the eligible savings account of his or her choice for 30 days to qualify for the electronic selection of winners where the star prize of N1 million and other fantastic prizes will be won.  Multiple savings of N10,000 will increase chances of winning.

    To qualify for the grand finale draws in August, where three customers will each receive N5million, existing and new customers are to save N50,000 in any of the eligible accounts for 30 days. Multiple savings of N50,000 increases winning chances.

    According to Mr. Akanmu, “We are excited to once again reward our customers for their patronage and loyalty’’. He added that, ‘’our customers are the reason why FCMB exists and as a bank that is committed to continually satisfy their needs, the millionaire promo is to further show appreciation to existing and potential customers by expanding the reward opportunities that the promo offers them. We are happy that the second set of winners have emerged. We encourage all our customers to partake in this exercise, because it is an avenue for economic empowerment’’.

     

     

  • Heritage Bank, PMAN promote biometric card scheme

    Heritage Bank has announced its partnership support with the Performing Musicians Employers Association of Nigeria (PMAN) for the launch of a Biometrics Card Scheme for members of the music body.

    The PMAN Biometrics Card Scheme, a flagship multi-purpose identity card project which was initiated to re-validate the association’s eminent status in the nation’s entertainment industry, is conceived as a starting point of an all-inclusive scheme to ensure significant levels of protection for Nigerian musicians’ commercial rights.

    PMAN President, Pretty Okafor, explained that the scheme is a product of a comprehensive assessment of the nation’s entertainment business landscape which shows that Nigerian musicians and their colleagues in the entertainment sector have been earning far below the commercial value of their works due to a variety of factors such as poor infrastructure and weak institutional and policy environment.

    According to him, the scheme would make it possible for PMAN to develop a sound database of genuine practitioners in the nation’s music business sector, thereby strengthening the anti-piracy campaign.

    Additionally, the card would serve as a debit ATM Card and will also  avail members a CUG (Close User Group) platform to call their music business associates for a fixed monthly flat rate using the network service provider that is also partnering with PMAN in the scheme.

    Heritage Bank’s Group Head of e-bank, Tobe Nnadozie said the bank’s decision to be part of the PMAN Biometrics Card Scheme is informed by its unwavering commitment to wealth creation, preservation and transfer in the entertainment sector.

    “The entertainment sector has been identified as one of the biggest economic blocs in the country with potential to contribute hugely to the development of the national economy. Sadly, entertainment practitioners are being hampered from enjoying large chunks of what they deserve as income from their creative investments. As a bank that is wholly committed to the mantra of wealth creation and preservation, Heritage Bank is more than ready and willing to partner with PMAN in the task of sanitizing the environment so that entertainment practitioners can really flourish”.

     

  • Skye Bank refreshes corporate identity

    Skye Bank has unveiled its ‘Skye is Big Enough’ campaign aimed at promoting the its new “Smart” unique selling proposition.

    The bank’s Executive Director, Corporate Services, Abimbola Izu said the campaign became necessary to align with evolving market trends as well as draw attention to the bank’s enormous capacity in ensuring customers convenience and maximum comfort at all times.

    “The entire world is under very serious economic stress and pressure, but in the midst of the pressure, we find opportunities to shine. Skye Bank is seizing the moment to reposition itself for the challenges and the opportunities that abound in the market place as we evolve,’’ she said.

    According to her, the essence of the campaign was to tell the customers that Skye is big enough to handle all forms of business transaction, as well as have smart, intelligent and innovative technologies that support the businesses of its customers.

    She said the lender was adopting all its platforms to convey its message. Also, the bank would soon commence an advertising campaign that highlights the new realities and its capabilities using the success stories of individuals. The excercise, she said, would ‘drive home the point that the Skye is Big Enough for anyone that is determined to succeed’.

    Izu said the bank’s acquisition of Mainstreet Bank last year, as a proof  of its determination to leapfrog into the league of bigger and stronger institutions that are major players in the evolving global economy.

    She noted that the acquisition also gives Skye Bank the leap in the electronic channel business, with a total ATM network of 849 for their customer convenience.

    “Our Skye Mobile channel is also going to be re-launched as we have revamped it. All these we have reworked just for customer’s convenience and comfort.”

     

  • Stanbic IBTC to publish list of loan defaulters

    Stanbic IBTC to publish list of loan defaulters

    Stanbic IBTC said yesterday it will publish the list of loan defaulters in line with a new directive by the Central Bank of Nigeria (CBN).

    Stanbic IBTC would be among the first banks to publish such a list after the regulator ordered lenders in April to crack down on non-performing loans to forestall a repeat of a 2009 industry bailout that cost the government $4 billion.

    The new plan requires banks to give bad debtors three months to square their accounts, following which they would be named in the media and barred from taking part in currency and government debt markets in Africa’s biggest economy.

    Stanbic said in a statement that in addition to publishing a list of defaulters by the end of August, it would also use legal and other means to recover non-performing loans.

    While issuing its order, the central bank did not give an estimate of the level of non-performing loans held by banks. In 2009, the central bank rescued several banks that had lent mainly to the oil and gas sector just before crude prices collapsed, triggering a near-collapse of eight commercial banks.

  • FirstBank unveils FBNBank Guinea

    FirstBank unveils FBNBank Guinea

    First Bank of Nigeria Limited, a subsidiary of FBN Holdings Plc, has unveiled FBNBank Guinea, formerly registered as International Commercial Bank (ICB), Guinea.

    The unveiling, it said in a statement,  comes after the agreement reached by FirstBank and International Commercial Bank Financial Group Holdings Ag (ICBFGH) for the acquisition of a 100 per cent equity interest in ICB Guinea.

    The launch further consolidates FirstBank’s position as the largest corporate and retail banking financial institution in sub-Saharan Africa (excluding South Africa) with presence in Ghana, Gambia, Guinea, Senegal, and Democratic Republic of Congo as well as presence in the UK and Representative Offices in Johannesburg, Abu Dhabi and Beijing.

    The expansion represents FirstBank’s strategic objective to maintain significant market share, expand its pan-African footprint and diversify earnings while delivering value to shareholders.

    FBNBank Guinea is strategically positioned to foster greater collaboration and provide better service for the country’s public and private sector clients, and the general public at large. The Bank leverages FirstBank’s international network, business expertise, which is part of the diversified synergies of the FBN Group to offer innovative, convenient and secure banking services to its customers and better seize the emerging opportunities in the local market.

    Speaking on this development, the GMD/CEO of FirstBank, Bisi Onasanya, said the launch of FBNBank Guinea fulfills one of the critical stages of our ambition to steadily broaden and build a more diverse footprint across Africa. “We are committed to developing a multi-local business model that broadens our geographic revenue base while providing enhanced service delivery to our new customers and equity participation to local investors.”

    The Managing Director, FBNBank Guinea, Akeem Oladele said “Having built value for Nigeria over the last 120 years, FirstBank through FBNBank Guinea is poised to do even more in the Guinean financial market.  FBNBank Guinea will provide customers with a bouquet of banking solutions that make their financial lives more convenient and stress-free whilst providing a delightful service experience”.

    “Given our heritage and market leadership at FBNBank, we are committed to co-creation; to listen and input feedback received from our customers in the development of products and services that are relevant”, Oladele added.