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Tag: Ambrose Omordion

  • Mixed earnings: NSE indicators maintain negative outlook

    Activities on the Nigerian Stock Exchange (NSE), for the second consecutive day, maintained bearish trend, dropping further by 1.02 per cent due largely to mixed 2018 earnings reports.

    The market capitalisation on Tuesday, nosedive by N120 billion or 1.02 per cent to close at N11.677 trillion against N11.797 trillion on Monday.

    The All-Share Index maintained the same direction, dropping by 323.30 points or 1.02 per cent to close at 31,313.36 compared with 31,636.66 posted on Monday.

    The drop in market indices was contrary to expectations of some market analysts who were of the opinions that the market would rebound following relatively peaceful conduct of the general elections.

    Commenting, Mr. Ambrose Omordion, the Chief Operating Officer, Invest Data Ltd., told NAN that the lull was due to low liquidity in the system.

    Omordion said that the low liquidity was as a result of early exit of smart money in the market.

    He said that some smart investors whose expectations were dashed exited the market shortly after the presidential election.

    Omordion said that mixed numbers emanating from quoted companies for 2018 financial year contributed to the development.

    Meanwhile, Mobil recorded the highest loss during the day, declining by N5.10 to close at N165 per share.

    International Breweries trailed with a loss of N2.65 to close at N24.05, while Guaranty Trust Bank dropped by N1.80 to N35.50 per share.

    NASCON dipped N1 to close at N20.70, while Dangote Cement also depreciated by N1 to close at N194 per share.

    Lafarge Africa dominated the gainers’ table, gaining 50k to close at N13 per share.

    United Capital followed with a gain of 13k to close at N3.28, while UAC Property added 13k to close at N1.95 per share.

    Africa Prudential increased by 12k to close at N4.92, while Union Bank of Nigeria gained 10k to close at N7 per share.

    FBN Holdings was the most active in volume terms, exchanging 60.14 million shares worth N493.12 million.

    Zenith Bank followed with an account of 46.46 million shares valued at N1.05 billion, while Zenith Bankexchanged 14.47 million shares worth N35.32 million.

    Access Bank traded 11.45 million shares valued at N68.46 million, while United Bank for Africa sold 8.53 million shares worth N64.66 million.

    In all, a total of 219.37 million shares valued at N2.93 billion was traded by investors in 3,345 deals, representing an increase of 70.89 per cent.

    This was against 128.37 million shares worth N2.39 billion exchanged in 2,752 deals on Monday.

    NAN

  • Budget 2018: Quick release of funds will ensure optimum performance

    Financial experts on Thursday advised the Federal Government to avoid bureaucratic bottlenecks and ensure quick release of funds for optimal performance of the 2018 budget.

    The experts gave the advice in separate interviews with the News men in Lagos, while reacting to the 2018 budget signed by President Muhammadu Buhari on Wednesday.

    Prof. Sheriffdeen Tella of the Department of Economics, Olabisi Onabanjo University, Ago-Iwoye, Ogun, said the government should embark on damage control by ensuring quick release of budgetary allocations.

    He said the availability of funds would go a long way in achieving some credible performance of the budget by the first quarter of 2019.

    The economist said the economy would continue on an upward trend if there was no external macroeconomic shock.

    He said the government should ensure that domestic prices were not significantly affected by spending on political activities.

    “The budget of N9.12 trillion might look quite unrealistic, but we have to look at the current revenue in terms of current price of oil as against when the budget was presented.

    “What were the exchange rate then and now, and the inflationary rate going down? The economy actually requires reflation to get us out of the depression fast.

    “So, there is the need for higher budget than what was presented and if the value of oil does not go down drastically, and the oil output increases, the economy can meet up without external borrowing,” Tella said.

    Read Also: Buhari signs Budget 2018 despite N578b injection

    He, however, tasked the executive and the legislature to address budget delays, noting that it was not good for the economy.

    “Given that the budget was signed in the sixth month, eight months after presentation, it is apparent that the legislature needs to show more commitment to developing the economy,” he said.

    Tella said the Nigerian economy was public-driven, not private-driven like developed capitalist economies, and that the legislature must recognise this in dealing with budget consideration and approval.

    Also speaking, Mr Ambrose Omordion, the Chief Operating Officer, InvestData Ltd., said the President’s speech signaled lack of unity and different goals between the executive and the legislature.

    Omordion said the development, if not checked, would make budget implementation difficult.

    According to him, the budget would be realistic if only the government could do the needful by reducing its borrowing and use the surplus above the oil price benchmark to finance projects.

    He said the government should channel the funds to projects that will have direct impact on the economy and the people.

    He also called for change in style, in the disbursement of funds for projects, and that the funds should be disbursed on time, for effective implementation.

    On budget delays, Omordion said the development had affected monitoring of project execution, thereby creating economic uncertainties.

    “Budget delay in Nigeria is as old as the government; and it has contributed to the slow development and economic growth of Nigeria,” Omordion said.

    The news men reports that President Buhari, on June 20, signed the appropriation bill of N9.12 trillion into law, after seven months of delay.

    The President, however, raised concern over the National Assembly’s injection of strange projects and sundry irregularities into the 2018 budget.

    Buhari said the legislators, “made cuts amounting to N347 billion in the allocations to 4,700 projects submitted to them for consideration, and introduced 6,403 projects of their own, amounting to N578 billion.”

    NAN

     

  • Oando: Confusion trails NSE’s lifting, reversal of technical suspension

    The Nigerian Stock Exchange ( NSE ) on Wednesday lifted the technical suspension placed on Oando shares with the Securities and Exchange Commission ( SEC ), ordering a reversal three hours later.

    Confusion trailed the action of the exchange and SEC with market operators and shareholders calling on the Federal Government to intervene in the matter.

    The exchange, in a letter entitled: “Notification of Lifting of Technical Suspension on the Shares of Oando,” said SEC on April 9, directed it to lift the suspension.

    “We refer to our bulletins of 18, 20 and 23 October, 2017 regarding the directive of the SEC to the Nigerian Stock Exchange to place the shares of Oando Plc on Technical Suspension.

    “Please be informed that on April 9, 2018, the commission directed the Exchange to lift the technical suspension placed on the shares of Oando.

    “On receipt of the commission’s directive, the Exchange put the process in place to lift the technical suspension, including testing on its trading system.

    “Further to the commission’s directive of April 9, please be advised that effective today, April 11, 2018, the Exchange lifted the technical suspension placed on the shares of Oando.

    “Consequently, there is no longer any impediment to price movement in Oando shares.

    “The above is for your information and records update please,” said the Exchange.

    However, three hours after lifting the technical suspension on Oando’s shares, the suspension was reversed by the NSE.

    All efforts by our correspondent to get the reasons for the reversal proved abortive as the Corporate Communications Officers of both the NSE and SEC declined to pick their calls or respond to inquiries.

    Commenting on the issue, Mr Ambrose Omordion, the Chief Operating Officer, InvestData Ltd. described both regulators’ actions as unprofessional.

    Omordion said SEC and NSE needed to correct the impression on time in order not to dampen investors’ confidence.

    “If this impression is not corrected, the confidence of the investing public in the regulators will start dwindling which will not be good for the market.

    The regulators are expected to have done their due diligence before giving any directive,” he said.

    Concerned Shareholders of Oando Plc had on April 10 urged the Federal Government to prevail on NSE and SEC to lift the technical suspension placed on the shares of the company without any further delay.

    The shareholders at a news briefing in Lagos said that the suspension of Oando’s shares was sending wrong signals to the global community about the seriousness of the Federal Government to attract investments to bolster the economy.

    NSE, on Oct.18, 2017, announced that it had placed the shares of Oando, a public quoted energy company trading on the floor of the NSE, on ‘full suspension for 48 hours.’

    The exchange, thereafter on Oct. 23, 2017, further announced that it had placed the shares of the company on ‘Technical Suspension.’

    The NSE informed the company that the suspension of its shares by the NSE was done in compliance with a directive issued to it by SEC.

    Mr Patrick Ajudua, Head, Concerned Shareholders of Oando, said that the continued suspension of the company’s shares could also send wrong signals about the prevailing operating environment in the country.

    Ajudua said the Federal Government should protect a prosperous company like Oando from going down if it wanted to demonstrate to the investing world its seriousness to attract investors to the country.

    “The continued suspension of Oando is a wrong signal to the global market about the prevailing harsh operating environment in Nigeria.

    “This is at variance with the Federal Government’s initiatives to diversify the economy through increased Foreign Direct Investment,” he said.

    NAN

  • NSE market indicators drop further by 1.16%

    NSE market indicators drop further by 1.16%

    The Nigerian Stock Exchange ( NSE ) market indicators on Tuesday dropped further by 1.16 per cent due to market volatility caused by profit taking.

    Market capitalisation shed N187 billion or 1.16 per cent to close at N15.902 trillion compared with N16.089 trillion on Monday.

    The All-Share Index lost 522.68 points or 1.16 per cent to close at 44,389.85 against 44,912.53 achieved on Monday.

    Mr Ambrose Omordion, the Chief Operating Officer, InvestData Ltd., attributed the development to profit taking embarked by some investors ahead of 2017 earnings season.

    Omordion said some investors were taking adavantage of 18 per cent growth posted by the market in the past three weeks.

    Mobil Oil recorded the highest loss, declining by N7 to close at N209 per share.

    Read also: NSE, CBi award corporate governance rating to 33 companies, 435 directors

    Dangote Cement trailed with a loss of N4 to close at N269, while Julius Berger was down by N1.60 to close N30.40 per share.

    Guaranty Trust Bank shed N1.51 to close at N52, while Zenith International Bank dropped by 75k to close at N32 per share.

    On the other hand, Seplat topped the gainers’ table, increasing by N9.99 to close at N685 per share.

    Unilever followed with a gain of N2.21 to close at N46.41, while Nigerian Breweries gained N2 to close at N145 per share.

    Presco appreciated by N1.31 to close at N70, while Nestle added N1.11 to close at N1,471.11 per share.

    A breakdown of the activity chart showed that Skye Bank was the toast of investors trading 150.37 million shares worth N226.77 million.

    FBN Holdings followed with an account of 104.17 million shares valued at N1.36 billion, while Wema Bank traded 64.09 million shares worth N87.36 million.

    Diamond Bank sold 44.39 million shares valued at N144.80 million, while Transcorp exchanged 43.39 million shares worth N94.28 million.

    In all, the volume of shares traded closed lower with an exchange of 737.86 million shares valued at N7.67 billion traded in 8,927 deals.

    This was against the 4.44 billion shares worth N15.93 billion shares exchanged in 8,572 deals on Monday.

    NAN

  • Equities maintain price rally on NSE, Index hits 43,041.54

    Equities maintain price rally on NSE, Index hits 43,041.54

    Trading on the Nigerian Stock Exchange ( NSE ) on Thursday maintained a bullish run with the All-Share Index hitting all-time high of 43,041.54, while market capitalisation crossed over to N15.317 trillion.

    The index rose by 1,225.43 points or 2.93 per cent to close higher at 43,041.54 against 41,816.11 recorded on Wednesday.

    Similarly, the market capitalisation which opened at N14.880 trillion inched N437 billion or 2.94 per cent to close at N15.317 trillion following price growth in anticipation of 2017 audited results.

    Mr Ambrose Omordion, the Chief Operating Officer, InvestData Ltd., attributed the market rally to investors’ anticipation of improved 2017 audited results that would start hitting the market very soon.

    Omordion said investors were positioning in stocks with good fundamentals ahead of earnings release.

    Seplat led the gainers’ table with a gain of N15.01 to close at N675.01 per share.

    Nigerian Breweries came second with N6.68 to close at N152.68, while Guinness appreciated by N5.01 to close at N105.21 per share.

    Dangote Cement also gained N5 to close at N252, while Okomu Oil Palm added N4.46 to close at N72.15 per share.

    Read also: NSE market capitalisation rises by N29bn

    Conversely, Flour Mills recorded the highest price loss, declining by 40k to close at N33 per share.

    Dangote Sugar Refinery trailed with a loss of 30k to close at N21.50, while Berger Paint dipped 25k to close at N9.10 per share.

    Cadbury lost 20k to close at N16.80, while UPl declined by 13k to close at N2.63 per share.

    Also, the volume of shares traded appreciated by 43.63 per cent with an exchange of 1.62 billion shares worth N17.38 billion transacted in 8,968 deals.

    This was in contrast with 1.09 billion shares valued at N13.29 billion traded in 8,025 deals on Wednesday.

    Transcorp was investors delight, accounting for 208.78 million shares worth N439.19 million.

    Diamond Bank trailed an account of 149.70 million shares valued at N368. 33 million, while Zenith International Bank traded 129.43 million shares worth N4.40 billion.

    FBN Holding traded 93.16 million shares valued at N1.06 billion, while Access Bank sold 89.46 million shares worth N1.08 billion.

    NAN