The Nation Newspaper

Category: Money

  • Wema Bank, Shelter Afrique sign $10m facility

    Wema Bank, Shelter Afrique sign $10m facility

    Wema Bank Plc has secured a $10 million development finance loan to support the real estate sector for Shelter Afrique, a Pan-African development finance institution focused on financing affordable housing in Africa.

    Speaking at the signing ceremony in Lagos, yesterday, the bank’s Managing Director/CEO, Segun Oloketuyi, said the facility underscores the confidence of local and international partners in the lender’s capacity to handle such transactions.

    He said Wema Bank is deeply committed to supporting the growth of real estate and affordable housing financing in the country, by providing access to loans as well as other value-added services, including financial advisory from its expert team of corporate banking professionals.

    Oloketuyi said Wema Bank remains a premier financial institution and Nigeria’s longest surviving lender with branches spread across 125 locations, adding that the bank provides a host of corporate banking, retail banking, electronic banking, treasury and trade services to its customers.

    The Managing Director, Shelter Afrique, James Mugerma, said his organisation remained committed to providing affordable housing in Africa, stating that the partnership with the bank through the grant of this facility, is another step in the right direction.

    He said strong mechanisms have been put in place to ensure that the viable projects get access to this fund. He also praised the unique nature of this transaction which not only provides project funding but also includes mortgage financing.

  • Banking thrives on quality customer services

    Banking thrives on quality customer services

    Customers’ kingship in the marketplace is taken seriously by forward looking organsiations. This year’s International Customer Service Week celebrated by banks, presented opportunity for lenders to show customers how much they cherish them. Sterling Bank used the occasion of the event to tell a story of its continued commitment to its customers, COLLINS NWEZE,  writes.

    The need to properly address customer’s concern prompted quality conscious organisations across the world to set aside the first week of October, annually, to promote customer service and honour contributors to service excellence.

    Nigerian banks have taken steps to demonstrate their commitment to excellent customer services by embracing the 2014 International Customer Service Week was celebrated between October five and 10.

    The week-long celebration, is traditionally devoted to recognising the significance of customer service and honour the people who serve and support customers with the highest degree of care and professionalism.

    Leading financial, healthcare, insurance, manufacturing, hospitality and communications companies as well as other service-oriented organisations around the world join the celebration.

    However, the 2014 Customer Service Week may have come and gone, but the footprints and the glamour added to the celebration by Sterling Bank Plc will linger in the minds of its customers nationwide especially those who had what could best be described as the ‘One Customer’ experience.

    Customers who visited branches of the lender nationwide during the period were excited by the experience they got and the colour added to it. From the decoration of the banking hall to banners with the message: “Enjoy Exceptional Banking Service as We Celebrate You, Our Customers” strategically displayed, the One Customer T-Shirts worn by the staff and the various gift items on offer to customers, the customers of the bank could only wish that the celebrations never end. Better still, they definitely look forward to the celebrations in 2015.

    Specifically, the bank rewarded its loyal customers during the week by giving out various gift items such as hand sanitisers, branded phones, petts tablets, pocket cards, TV sets, fridges and other unique gifts. This confirms the stance of the bank as one that appreciates its customers.

    “At Sterling Bank, we view Customer Service Week as prime time to recognise our awesome customers through a week-long celebration with activities every day to give our loyal customers the Sterling Bank customer experience”, the lender said.

    A customer with the Kaduna branch of the bank who won a bed side fridge and spoke on condition of anonymity said: “Sterling Bank added a new dimension to the Customer Service Week celebrations as it gave out various gift items to its walk-in customers in all parts of the country and l am a beneficiary of that. This shows the premium that the bank places on its customers and we are really happy about that”. The customer also spoke about how the bank had enhanced customer satisfaction during the customer service week.

    “One thing is to provide quality service. It is another for such products to meet the expectation of the customer to ensure they are satisfied. Sterling Bank has in many ways exceeded their customers’ expectationsby providing consumer – centric products and services delivered in a timely manner. The bank has succeeded in further consolidating its relationship with its customers who are satisfied with its product offerings  coupled with what it did during the Customer Service Week”.

    Mr. Kingsley Okpara, an Engineer based in Aba explained that customer appreciation the Sterling way is unique as it will have a multiplier effect on the bank. His words: “I was surprised when l came to Port Harcourt to pick up some money at the Rumuola branch of the bank and received a gift for doing so. It is fantastic and will affect how I  perceived Sterling Bank henceforth and I  will tell the story to other people”.

    Mrs. Juliana Adebisi Lamikanra who banks with the Dugbe branch of the bank in Ibadan was surprised when she won a fridge on the last day of the week. She said: “Initially l thought it was a joke when l was asked to take part in the lucky dip. l was expecting to win a pen, pencil or at best a school bag, but l was shocked when they read out what l won and, it was a fridge. It was also presented to me on the spot. This is great. It is interesting to note that  banking is no longer about taking deposit and giving out loans, but that of rewarding and celebrating customers as well.”

    A source at the bank who spoke on the basis of anonymity said that the Bank celebrated its customers because “Our success story so far is attributed to the overwhelming support we have received from our customers. This is why we consider them the most important to us and hence the reason for us as a responsible financial institution to celebrate them during the Customer Service Week”.

    Over the years, Sterling Bank has remained consistent in the provision of  quality customer service across its service points and “we are using the celebration to leverage on our  planned enhanced customer service initiatives during the week”, the source said.

    Some of these initiatives already put in place by the Bank to make life easy for the banking public include the opening of additional branches to take the Bank’s quality banking products and services to the door steps of its customers, development of additional customer oriented products and services and deployment of additional Automated Teller Machine points to ensure that customers have access to the bank’s delivery channels at no additional cost.

    In GT Bank, Guest Tellering, an exercise in which top executives of the bank serve as tellers in various branches was  in practice. Skye Bank has equally inaugurated a public-friendly customer care centre, the ‘Yes Centre’, to enhance customer satisfaction and experience. Other banks have also found their unique way of communicating to customers at such times.

    The Central Bank of Nigeria (CBN) insists that customers’ expectations have taken a quantum leap in the new global financial landscape. “Financial services no longer involve providing only standard products to customers. The need for financial products to be personalized and customized to the individual needs of corporate and retail clients is the order of the day. Banks would, therefore, need to be more proactive and innovative in packaging and marketing their products,” it advised.

    Experts said that customers’ perception of quality services varies from person to person. Moses Obinna, a market leader in Balogun Market, Lagos, says he is always excited when his bank calls him or sends birthday message to him on his birthday. “I only want to know that my bank cares for me, my family and business,” he said. Another customer of a new generation bank, Idris Akintola says he is interested is getting a timely statement of account and account balance any time he needs it. But to another motor parts dealer at the Ladipo Market, Lagos, Okeke Okorie, a good customer service simply means giving customers the freedom to choose what they want. “Banks are forcing customers to use ATMs even when there is large scale fraud associated with the product. Anytime I make withdrawals across the counter, my bank charges me N100. It is a sad experience,” he said.

    Analysts insist that service-oriented banks should be able to boost staff morale through motivation, reward frontline representatives, promote teamwork among their workforce, raise companywide awareness of the importance of customer service and remind customers of their commitment to their satisfaction. Achieving this, he added, requires adequate staff training, designed to improve service levels, productivity and performance in the customer contact centres.

    Experts say that customer services transcend the way phone calls are answered or promises are kept. It is even beyond listening effectively, dealing with customers’ complaints or improving on turnaround time. Good customer services means to personally know the customers and recognize their individual needs. It is doing what you say you will, when you say you will, how you say you will, at the price you promised – plus a little extra tossed in to say “I appreciate your business.”

     

    Global practice

     

    According to reports, the International Customer Service Association customer service week was created in 1988. In 1991, the Customer Service Group became the nationally recognised sponsor, providing employers with celebration materials and how-to information.

    Reports have it that the Customer Service Group also serves as a resource for professionals who want to share plans and ideas for the event. In 1992, the congress of United States declared customer service week as a nationally recognized yearly event. Same year, President George H. W. Bush signed the Customer Service Proclamation.

     

  • ‘Naira slide could trigger emergency MPC meeting’

    ‘Naira slide could trigger emergency MPC meeting’

    The naira which has come under undue pressure in recent months over the sharp fall in Brent oil prices, may cause the Monetary Policy Committee (MPC) to convene an emergency meeting, analysts have predicted.

    Currencies Analyst at Ecobank Nigeria, Olakunle Ezun, said should the naira weaken in the interbank market to N170 or more, and oil prices drop below $80 per barrel, an emergency MPC meeting could raise the Monitory Policy Rate by 50 to 100 basis points and increase the Cash Reserve Ratio (CRR).

    This, he said, would undermine the naira, given that hydrocarbons account for 98 per cent of export revenues and around 75 per cent of fiscal revenues.

    Ezun explained that without a large cushion of foreign exchange reserves, the CBN, would remain under pressure from the fall in oil prices to tighten policy as a means of underpinning the naira.

    “Yields on government securities rose steadily around 100 to 150 basis points since early October. It is clear that a tightening cycle is developing, with a strong possibility of further direct tightening,” he said.

    The analyst explained that the Monetary Policy Rate (MPR), the benchmark lending rate for banks, could remain above 12 per cent for the weeks ahead, with the possibility of indirect tightening at the next MPC meeting.

    “CBN would likely decide to tighten policy in its next meeting. Although a rise in the MPR is currently unlikely, tightening could be made by raising the Cash Reserve Requirement (CRR) on private sector deposits. Currently it stands at 15 per cent (it was last raised from 12 per cent in March),” he said.

    He explained that another risk facing the CBN is the possibility of increased government spending in the run-up to the February 2015 election.

    “Any injection of liquidity above target would undermine macroeconomic stability by pushing inflation up above the most recent level of 8.3 per cent in September (inflation has been largely stable around this level for more than one year. The CBN considers the inflation outlook is good with single digit inflation likely by yearend,” he predicted.

    He said the tight monetary policy stance was adopted in order to ensure exchange rate stability (given the managed float exchange rate regime), and help contain inflationary pressures. Indirectly, the tight policy has helped underpin real returns on fixed income securities investments by attracting foreign investors into naira denominated assets, thereby helping strengthen demand for the naira.

    However, demand for Federal Government bonds issued across all maturities remains strong. Increased supply of securities would help temper some of the high levels of oversubscription, however, demand remains strong despite uncertainties related to inflation, exchange rate risk, and the macroeconomic policy environment.

    The authorities, he said, have continued to stimulate interest via liquidity management and indirect monetary tightening to boost confidence in the market and at the same time provide forward guidance on monetary policy directions, which has helped realign the yield curve with monetary policy expectations.

    Meanwhile, the CBN has pledged to keep supporting its currency after the naira approached a record low amid declining oil prices and the end of US monetary stimulus that bolstered emerging-market assets.

    “We will continue to defend the naira,” CBN Deputy Governor, Economic Policy, Dr. Sarah Alade said. Since mid-September, the CBN has used the reserves to sell dollars outside of regular auctions held Mondays and Wednesdays, according to Standard Chartered Plc.

    It will keep using the auctions and direct dollar sales to banks to preserve the value of the currency, Alade said. The currency strengthened 0.2 per cent to 164.90 per dollar. It earlier weakened as much as 0.8 per cent to 166.42, a record low on a closing basis.

  • ‘Two subsidiaries needed for HoldCo status’

    The Central Bank of Nigeria (CBN) guidelines for banks operating the Holding Company (HoldCo) structure, stipulates that each lender in the category must have two subsidiaries within the group.

    The guidelines, signed by CBN Director, Financial Policy and Regulations, Kelvin Amugo, said two subsidiaries  shall be in the financial services sector.

    He said the guidelines, issued in exercise of the powers conferred on the CBN under the CBN Act, 2007 (CBN Act) and the Banks and Other Financial Institutions Act, Cap B3, Laws of the Federation of Nigeria, 2004 (BOFIA), complement CBN Regulation on the Scope of Banking Activities and Ancillary Matters, No 3, 2010.

    According to the guidelines, the apex bank said a financial holding company is permitted to have only two hierarchies (parent and intermediate financial holding companies). Given the permissible level of hierarchies, a Nigerian financial holding company may have a subsidiary which is a parent to another subsidiary (intermediate financial holding company).

    According to the guidelines, where such subsidiary is locally based, the relevant regulator shall have responsibility for its supervision. Where the subsidiary is overseas, the relevant regulator shall seek a Memorandum of Understanding (MoU) with the host regulator for its joint supervision.

    It said a financial holding company may acquire controlling interest in any permissible financial institution, subject to prior approval of the CBN. Where the target company is outside the supervisory purview of CBN, the prior approval of the relevant regulator will also be required.

    Still, where a subsidiary of the financial holding company outside the purview of the CBN is acquiring another subsidiary similarly outside the purview of the CBN, the Holdco shall notify the CBN before the acquisition is consummated. Evidence of prior approval of the relevant sector regulator shall accompany the notification.

    Equally, a financial holding company that elects to change to mono-line commercial or merchant banking shall seek the prior approval of the CBN. Such financial holding company shall submit along with its request for approval the annual audited financial statements of the immediate past three years under the arrangement/structure it seeks to discontinue; divestment plan from subsidiaries; and any other requirements as may be determined by the CBN from time to time.

    The CBN in 2010 introduced a new banking model, which requires banking groups with non-core banking activities to incorporate a holding company (HoldCo) structure. To facilitate the establishment and operation of holding companies, the CBN, in collaboration with stakeholders, developed guidelines for setting up, regulating and supervising financial holding companies in Nigeria.

  • AfDB to invest in people-centred innovation

    Innovation and technology can serve as a springboard for economic transformation provided they are driven by people, the African Development Bank (AfDB) said at the ninth Annual African Economic Conference (AEC)  which ended in Addis Ababa on Monday.

    Decision-makers and business leaders, economists and academics from across the globe, met for the AEC to discuss how to harness knowledge and innovation to boost youth employment, foster the adoption of new technologies, and enhance Africa’s economic transformation.

    “Investments in skills, technology, knowledge, and innovation will ensure democratic and responsive governance that can deliver effective public services and facilitate universal access to basic services, such as food and nutrition, water and sanitation, shelter, health and education,” African Union Commission Chairperson, Nkosazana Dlamini Zuma said.

    Acting Chief Economist and Vice-President of African Development Bank, Steve Kayizzi-Mugerwa said innovation is seen as an essential component for the transformation of African economies.

    “We need to stop being lazy analysts and take our challenges for ourselves; stop wasting resources and implement our own ideas. Africa must first understand where we are, what brought us here and then try to understand what to do differently to bring different results,” he said.

    Beyond technology and technology transfer, the role of innovation was discussed at the conference as a trigger for behaviour and social change. “Innovation is a key determinant of the ability of economies to sustain growth, and is critical to improving socio-economic conditions. Socio-economic transformation in Africa requires both adaption of existing technologies, and the development of home-grown innovations,” Director, UNDP Regional Bureau for Africa, UN Assistant Secretary General, Abdoulaye Mar Dieye said.

    The continent can boost its development agenda by using technology and technology transfer creatively, participants argued, creating revenue opportunities for farmers, jobs for youths in urban areas and tackling a wide diversity of challenges, from climate change adaptation to disaster risk reduction.

    M-Pesa, an innovative mobile-phone payment system, created in Kenya and expanded to Tanzania, South Africa, Afghanistan, India and Eastern Europe, has had great impact on the lives of ordinary Kenyans.

    It has increased access to financial services to 19 million Kenyans, created jobs, and positively impacted savings and money transfer patterns. In just five years, M-Pesa decreased informal savings in the country by 15 per cent, increased the frequency of transfers and remittances by 35 per cent, and increased usage of banking services by 58 per cent beyond the levels of 2006.

  • Private equity firms raise $3.3b, says FBN Capital

    FBN Capital has said that management consultants, Ernst & Young estimate that Africa focused Private Equity (PE) firms, raised $3.3 billion in 2013. The investment and research firm said Nigeria will be the leading destination of those funds, adding that the greater opportunities and rewards lie in PE firms

    FBN Capital said finding of the National Bureau of Statistics, is that the average household has 5.7 people, adding that Nigeria has 23.4 million middle class, equivalent to almost 14 per cent of the population. According to the report, consumption by the households ranges from $23 to $115 per day.

    The study reported that the Nigerian middle class population has increased six-fold since 2000, indicating a redistribution of wealth amounting to more than just “trickle-down”.

    “Many investors have bought into the story of the emerging middle class. Marriott of the US bought South Africa’s Protea Hospitality Group, which has several properties across Nigeria. Local e-commerce companies such as Jumia and Konga are expanding rapidly on the back of foreign investment.

    Shopping malls are the most visible examples of this investment. Market research for the Jabi Lake mall in Abuja identified 68,000 households within its target consumer area spending at least $150,000 per year on consumables. This would place them well above the middle class range,” it said.

    However, FBN Capital said the story is at odds with the generally disappointing results of listed consumer goods companies in first quarter of and second quarter of 2014.

    “Their sales growth has slowed markedly. We have also bought into the story and suggest that the listed companies, unlike the many which are privately owned, may not be targeting the best domestic market. The listed companies account for no more than five per cent of this segment of the economy in sales terms,” it said.

    Globally, money committed to private equity funds but as yet un-invested – stands at a record $1.19 trillion, up from $1.08 trillion at the end of 2013 and comfortably above the pre-crisis peak.

  • Capital market needs consistent policy for sustained growth, says Orekoya

    Capital market needs consistent policy for sustained growth, says Orekoya

    The president, PEARL Awards Nigeria, Mr. Tayo Orekoya, has called for a competitive and stable policy framework for the development of the Nigerian capital market.

    According to him, unstable policies and monetary and fiscal changes that are often against the long-term interest of the capital market have been the major dampeners for the capital market.

    He noted that for the Nigerian capital market to become more competitive and attractive to Nigerian and foreign investors, government and capital market regulators need to create a stable atmosphere for long-term corporate strategies.

    At a press conference to announce the 2014 PEARL Awards Nite slated for November 30, 2014 in Lagos, Orekoya commended the exemption of capital market transactions from Value Added Tax (VAT) and called for more policies in favour of the market.

    “Yes the Federal Government should be commended on exemption of VAT on stock market transaction but it should strive to be consistent. We have recorded a number of incidences where government counters itself with policies. We don’t want that repeating all the time because inconsistencies in policies affect the capital market negatively,” Orekoya said.

    He urged capital market regulators to intensify investors’ education noting that several investors are still wary of the stock market due to the hangover of the 2008-2009 recession.

    He outlined that the 2014 PEARL Awards would continue in the tradition of the earlier awards and would use 10 globally acceptable parameters including turnover growth; return on equity, earnings yield; share price appreciation; dividend cover, profit margin ratio amongst others.

    He added that there would be special recognition awards to reward and honor individuals and media institution that contributed remarkably to capital market development in Nigeria.

    “The 2014 Pearl awards as usual would be in three main competitive categories namely the sectoral leadership awards, which rewards a company for outperforming other companies within the same sector based on aggregate points garnered from all the ten indices utilized for ranking. The market excellence awards category is based on recognition of entire market leadership in respect of each of the ranking indices while the third category is the overall highest award category-the Pearl of the Nigerian Stock Market,” Orekoya said.

     

     

  • ‘Sustainable banking has global interest’

    ‘Sustainable banking has global interest’

    Group Managing Director\CEO,  First Bank of Nigeria Bisi Onasanya has said issues relating to sustainable banking is global in nature.

    He spoke at  the bank’s conference on sustainability held in Lagos at the weekend.

    He explained that in a bit to sensitise organisations on the roles to play in social challenges, FirstBank conference educated attendants in the importance on embodying sustainable practices both beneficial to the society and their various organisations.

    The international sustainability conference, which focused on how businesses can minimise risks, manage revenue and enhance the reputation of brands, was organised  for CEOs and executives of large and small corporations, was held at the Lagos Business School.

    Onasanya said: “As a bank which has used sustainable principles for  120 years , we have come to realise that it is not possible for a single institution to carry the burden and therefore we decided to go through a process to enlighten on the prospects and benefits of sustainable practices in businesses.

    “Our corporate responsibility and sustainability investments have always been devoted to forging partnerships with people and institutions at the vantage position of finding lasting solutions to the economic, social and environmental issues facing people and communities”.

    ‘’Globally, organisations are being tasked with taking more active interest in meeting the world’s environmental and social needs. Stakeholders, from investors to customers and employees,  amongst many others, are demanding sustainable practices as a condition for determining engagement with business organisations.”

    Speaking further, he advised companies to improve on sustainable practices: “ I don’t think we would rest until we get every institution to accept that sustainability is not an expensive incentive. Whilst it might be expensive in the short run, at the end of the day, the rewards are bountiful. And when we get to a situation where every individual thinks about the impact his or her own actions both as individuals and as corporate entities on the neighborhood and communities and we all accept the responsibility that we cannot abandon the society. We have to give back to the society.”

    Onasanya added:”I think it is important to know that being a corporate responsible organisation is not always about making money and also not about losing money. It might be expensive to implement but at the end, the entire society benefits from it.”

     

     

    Also speaking to executives , the Director of Doughty centre Professor David Grayson said: “Long term value creation requires the company to embrace the risks and opportunity of sustainable development and that the board are simultaneously mentors and monitor stewards and auditors of management in their commitment to corporate responsibility and sustainability.

     

  • GTBank’s SME MarketHub recognised

    GTBank’s SME MarketHub recognised

    Guaranty Trust Bank plc has been announced as the winner of the “2014 Product Leadership Award” at the 2014 Frost and Sullivan Excellence In Best Practices Awards Banquet that held at the weekend in  Monaco, France.

    Frost & Sullivan is a growth consulting firm that provides market research and analysis, growth strategy consulting, and corporate training services across multiple industries including banking, automobile, healthcare, internet and communication technology, and more. Its headquarters is located in California with offices in 31 countries across six continents.

    Explaining the rationale behind GTBank winning the award, Frost & Sullivan stated that the award is in recognition of the bank’s efforts to offer robust value to SMEs in Nigeria. Recognising that accessibility remains a major challenge in the Nigerian banking landscape, GTBank introduced GTPay and GAPS platforms to facilitate quick, safe and efficient payment systems for SMEs. In addition, GTBank developed the SME MarketHub; an online e-commerce platform that allows SMEs create and maintain an online presence and expand their businesses to new markets as well as millions of buyers that are online.

    The introduction of the SME MarketHub continues to highlight GTBank as a frontrunner in innovative banking solutions, as e-commerce is widely acknowledged as a powerful tool for fully enhancing business possibilities as it opens up a world of businesses to customers and a world of customers to businesses.

     

     

    Receiving the award on behalf of the Bank, Mrs. Lola Odedina; General Manager, Communication & External Affairs, GTBank stated that “The SME sector holds paramount towards the development of the Nigerian economy, as 96 per cent of Nigerian businesses are SMEs.

     

  • Investors lose N1.2tr in October as average return drops to -9.14%

    Nigerian investors lost an average of 8.88 per cent in October, equivalent to about N1.17 trillion, as the stock market set on a grueling fourth quarter that looks to exacerbate the recession at the equities’ market. With week-on-week losses that failed to yield to new third quarter corporate results, Nigerian equities wriggled through selling pressure all through the month.
    Last week, average loss at the stock market stood at 3.93 per cent, highlighting a reversal that has seen most indices at their recent lowest points. There was increased selling pressure last week as aggregate turnover climbed to 2.1 billion shares worth N20.23 billion in 21,802 deals as against a total of 1.41 billion shares valued at N17.04 billion traded in 24,427 deals in the previous week.
    Aggregate market value of all quoted equities closed October at N12.437 trillion compared with the opening value of N13.607 trillion for the month, representing a loss of N1.17 billion. The All Share Index (ASI), the composite value-based index that tracks prices of all quoted equities on the Nigerian Stock Exchange (NSE), closed October at 37,550.24 points as against 41,210.10 points recorded as opening index for the month.
    The decline in October pushed the average year-to-date for the past 10 months to -9.14 per cent. This simply amounted to a loss of N789 billion, although the average decline in market capitalisation was moderated by new listings.
    The ASI indicated a 10-month average decline of 9.14 per cent. The ASI, as the pricing barometer for the Nigerian stock market, serves as Nigeria’s country index and measures the general pricing direction of the country’s stocks within a particular period.
    Aggregate market value of all quoted equities had opened this year at N13.226 trillion, indicating a loss of N789 billion. The ASI had opened the year at 41,329.19 points, representing average 10-month return of 9.14 per cent.
    Sectoral analysis showed widespread bearishness across several sectors with investors in banking, consumer goods and ethical stocks bearing the highest losses. The NSE 30 Index, which tracks the 30 most capitalised stocks on the NSE, indicated a 10-month average return of -11.72 per cent. Banking stocks recorded the highest loss with the NSE Banking Index trailing with a 10-month average return of -16.51 per cent.
    The NSE Consumer Goods Index, which tracks several fast moving consumer goods companies including the major multinationals, indicated average loss of 16.33 per cent while the NSE Insurance Index showed average return of -3.21 per cent. Investors who had opted for ethical stocks that comply with Islamic’s rules also suffered above-average loss with the NSE Lotus Islamic Index indicating average loss of 13.99 per cent.
    Meanwhile, the oil and gas sector retained double-digit value for investors in spite of recent decline in share prices of oil and gas stocks. The NSE Oil and Gas Index closed October with a 10-month average gain of 22.63 per cent.
    The 10-month performance of the market was worsened by the sustained depreciation recorded last month. Nearly all tracked indices at the stock market were on the downward during the month. The NSE 30 Index dropped by 10.55 per cent in October while banking and insurance declined by 12.05 per cent and 0.82 per cent respectively. Consumer goods index depreciated by 10.84 per cent, oil and gas index declined by 9.56 per cent, industrial goods index lost 6.82 per cent while the ethical NSE Lotus Islamic Index recorded average loss of 9.66 per cent during the month.
    After a modest return in the first half, the stock market has mainly been dominated by the downtrend in the second half. Investors lost N107 billion in capital gains in September, sustaining a downtrend that had seen losses mounting from N128 billion in July to N186 billion in August. Average loss in August stood at 1.34 per cent compared with average loss of 0.91 per cent recorded in July.
    Aggregate market value of all quoted companies on the NSE closed August at N13.714 trillion as against the month’s opening value of N13.900 trillion. The ASI declined from the month’s opening index of 42,097.46 points to close weekend at 41,532.31 points.
    The continuing downtrend reduced the average year-to-date gain of investors to N488 billion by the end of August compared with N674 billion in July and N802 billion in June. Indexed, average year-to-date return dwindled to 0.49 per cent, down from 1.86 per cent and 2.79 per cent in July and June respectively.
    Equities had lost the momentum and struggled the first month of the second half as a mixed of modest and uninspiring earnings dampened investors’ appetite. Aggregate market value of all quoted equities on the NSE closed July 2014 at N13.900 trillion as against the month’s opening value of N14.028 trillion. The ASI also dropped from its month’s opening index of 42,482.48 points to close at 42,097.46 points.
    The July 2014 downtrend dampened enthusiasm that started the second half as capital gains accumulated to N802 billion on the back of early positioning for the second quarter and first half earnings. However, the first half reports have shown muted performance across several sectors; especially in the financial services sector where banks have shown tight bottom-line.
    A six-month analysis of the first half had shown that the market benefited from increasing positioning and portfolio rebalancing as investors sought to strengthen their portfolios across sectors. Aggregate market value of all quoted equities closed the first half at a high of N14.028 trillion as against its 2014 opening value of N13.226 trillion. The ASI rose from the year’s opening index of 41,329.19 points to close first half at 42,482.48 points, representing average return of 2.79 per cent.
    Nigerian equities had in June built on strong gain made in May to add additional capital gains of N333 billion. Aggregate market value of all quoted equities closed June at N14.028 trillion as against the opening value for the month at N13.695 trillion. This represented additional gain of N333 billion. The ASI rose from index on board for the month of 41,474.40 points to close June at 42,482.48 points, indicating month-on-month average return of 2.43 per cent.
    In May, equities had broken away from a year-long bearish streak with a gain of N1.02 trillion. While the market had closed April with a four-month average loss of -6.88 per cent, the average gain of 7.77 per cent recorded in May turned the average year-to-date return positive at 0.35 per cent. Though modest, the five-month average gain of 0.35 per cent represents a significant breakeven for the equities market. It also underlined the overtly bullish overall market situation during the month.
    Aggregate market value of all quoted equities closed May at N13.695 trillion as against its opening value of N12.672 trillion, indicating a whooping gain of N1.02 trillion. The ASI also rallied by 7.77 per cent to close May at a high of 41,474.40 points compared with its index-on-board of 38,485.48 points. The market had seen strong rally last week with the ASI recording a week-on-week gain of 4.12 per cent.
    Quoted equities had wriggled all through the first four months with negative month-on-month return. The stock market recorded a negative return of -0.68 per cent in April, building on the bearish trend that had characterized the stock market in the first quarter. In January, February and March, the market consistently recorded losses of 1.8 per cent, 2.5 per cent and 2.0 per cent respectively.

     

     

    The negative return in April further depressed the overall market performance, increasing the four-month average loss to 6.88 per cent. This implied that an average investor had lost 6.88 per cent of its portfolio over the four-month period.
    Aggregate market value of all quoted equities closed April at N12.672 trillion as against its opening value of N13.226 trillion for the year. The ASI closed April at 38,485.48 points as against its opening index of 38,748.01 points for the month.
    The ASI closed the first quarter of 2014 with a drop of 6.25 per cent to close at 38,748 points while market capitalization dropped by 5.89 per cent to close at N12.45 Trillion. Total market volume for the quarter also fell by 26 per cent at 22.83 billion while total market value rose marginally by 6.3 per cent to close at N269.4 billion.
    Nigerian equities had set a new high in 2013 with a capital gain of more than N4.25 trillion and average full-year return of 47.19 per cent, its best performance since 2007. Aggregate market capitalization of all quoted equities on the NSE closed 2013 at N13.226 trillion as against its opening value of N8.974 trillion for the year. This represented a whooping increase of N4.252 trillion. The ASI recorded full-year return of 47.19 per cent rising from its opening index for the year of 28,078.81 points to close the year at 41,329.19 points. The performance in 2013 significantly surpassed the much applauded return in 2012 when equities posted average return of 35.45 per cent, equivalent to capital gains of N2.44 trillion.