Tag: gain

  • Equities’ rally gathers momentum with N143b gain

    nigerian equities sustained their rally yesterday as increased bargain-hunting left investors with net capital gain of N143 billion within five hours of trading at the Nigerian Stock Exchange (NSE).

    With more than two gainers for every loser, benchmark indices at the Exchange showed average gain of 1.17 per cent, pushing the average year-to-date return to 33.11 per cent. The positive market situation was driven by widespread buy sentiments as investors sought to take positions ahead of expected inflow of third quarter corporate earnings.

    Aggregate market value of all quoted equities rose from its opening value of N12.171 trillion to close at N12.314 trillion. The All Share Index (ASI)-the value-based index that tracks share prices, appreciated to 35,773.98 points as against its opening index of 35,358.57 points.

    Most sectoral indices trended upward with the NSE Industrial Goods Ion the double with average gain of 2.8 per cent. The NSE Banking Index appreciated by 0.8 per cent while the NSE Consumers Goods Index inched up by 0.5 per cent. On the downside, the NSE Insurance Index and NSE Oil & Gas Index dropped by 0.4 per cent each.

    There were 31 gainers to 14 losers.  Dangote Cement-the most capitalised quoted company, led the gainers with a gain of N5 to close at N215. Nestle Nigeria followed with a gain of N2.99 to close at N1,223.01. Presco rose by N2.95 to close at N61.95. Lafarge Africa appreciated by N2.08 to close at N54.10. Nigerian Breweries rose by N2 to close at N163.60 while Total Nigeria added N1.50 to close at N241 per share.

    On the negative side, Mobil Oil Nigeria led the losers with a drop of N8.28 to close N161.72. MRS Oil and Gas dropped by N1.51 to close at N28.88. PZ Cussons Nigeria declined by 68 kobo to close at N23.55. Cadbury Nigeria dipped by 54 kobo to close at N10.26. Ecobank Transnational Incorporated lost 35 kobo to close at N16.75. Unilever Nigeria dropped by 18 kobo to close at N43.43 while Africa Prudential dipped by 10 kobo to close at N3.31 per share.

    The momentum of activities also improved with exchange of 317.4 million shares valued at N2.9 billion. Skye Bank was the most active stock with 94.32 million shares worth N48.14 million. United Bank for Africa followed with 35.75 million shares valued N321.39 million while Transnational Corporation of Nigeria placed third with 26.05 million shares worth N34.93 million.

    “Performance in the near term will remain driven by investor expectation of third quarter 2017 earnings results. Accordingly, we expect the market to close the week in the green,” analysts at Afrinvest Securities stated.

  • Equities regain rally with N53b gain

    Nigerian equities rebounded yesterday as large-cap stocks rallied the market to a net capital gain of N53 billion. Benchmark indices at the Nigerian Stock Exchange (NSE) showed average day-on-day gain of 0.44 per cent, representing net capital appreciation of N53 billion.

    The All Share Index (ASI)-the benchmark index for the equities market, rose from its opening index of 34,951.27 points to close at 35,103.40 points. Aggregate market value of all quoted equities also rose from its opening value of N12.048 trillion to close at N12.101 trillion.

    The upturn was driven by widespread gains, especially within the medium and large-cap stocks including Nestle Nigeria, Dangote Cement, Zenith Bank, International Breweries and Stanbic IBTC Holdings.

    There were 24 gainers against 22 losers. Champion Breweries recorded the highest price gain of 8.14 per cent to close at N2.39 per share. Neimeth International Pharmaceuticals followed with a gain of 4.62 per cent to close at 68 kobo. Linkage Assurance appreciated by 4.55 per cent to close at 69 kobo per share. Fidson went up by 4.52 percent to close at N3.24 per share while C & I Leasing appreciated by 4.32 per cent to close at N1.45.

    On the other hand, Morison led the losers’ chart by 8.33 per cent to close at 66 kobo per share. UACN Property Development Company followed with a decline of five per cent to close at N2.85. University Press depreciated by 4.81 per cent to close at N2.57 per share. Caverton Offshore Support Group declined by 4.59 percent to close at N1.04 while AG Leventis Nigeria declined by 4.41 per cent to close at 65 kobo per share.

    Turnover meanwhile slowed down considerably as volume traded declined by 72.74 per cent to 136.40 million shares worth N1.27 billion in 2.860 deals. Transactions in the shares of Jaiz Bank topped the activity chart with 35.85 million shares valued at N26.1 million. Meyer Paints followed with 20.01 million shares worth N14.01 million. FBN Holdings traded 6.69 million shares valued at N36.78 billion. Diamond Bank traded 5.43 million shares valued at N6.04 million while Access Bank recorded 4.88 million shares worth N46.2 million.

    “Despite the rebound in ASI, we note that market breadth is yet to comfortable crossover to the positive territory. The low level of activity as shown in weaker volume and value traded further suggests sentiment for equities remains low; thus, we expect the market to trade sideways in subsequent sessions pending the release of third quarter earnings,” Afrinvest Securities stated.

     

  • Equities hit two-year high as investors gain N194b on N114b deals

    Equities hit two-year high as investors gain N194b on N114b deals

    Nigerian equities hit their highest level in two years at the weekend as increased bargain-hunting for quoted shares sustained a bullish trend that had seen investors with N902 billion net capital gain in July. Investors recorded net capital gain of N194 billion last week as bargain-hunters overran a major profit-taking breather that started the week to sustain four consecutive positive trading sessions.

    Major indices at the Nigerian Stock Exchange (NSE) showed increased momentum of activities and continuing investors’ appetite for quoted shares. Average week-on-week gain stood at 1.52 per cent last week, equivalent to net capital gain of N194 billion. The sustained rally over four trading sessions nudged the average year-to-date return to 39.26 per cent at the weekend.

    Aggregate market value of all quoted equities on the Nigerian Stock Exchange (NSE) rose from the week’s opening value of N12.705 trillion to close the week at N12.899 trillion. The All Share Index (ASI)-the common value-based index that tracks share prices at the Exchange, also rose from its index on board of 36,864.71 points to reach a new high of 37,425.15 points at the weekend.

    Investors traded a total 2.52 billion shares worth N114.12 billion in 23,546 deals during the week, compared  to a total of 2.21 billion shares valued at N30.64 billion traded in 26,287 deals in the previous week. Financial services stocks accounted for 1.51 billion shares valued at N16.35 billion in 12,511 deals; representing 59.9 per cent and 14.3 per cent of the total equity turnover volume and value respectively. The industrial goods sector rode on the back of negotiated deals on Dangote Cement to record a turnover of 441.91 million shares worth N89.36 billion in 1,282 deals. The conglomerates sector placed third with a turnover of 184.61 million shares worth N701.67 million in 929 deals.

    The three most active stocks were Dangote Cement, Access Bank and Zenith International Bank, which altogether accounted for 833.97 million shares worth N95.97 billion in 3,203 deals, contributing 33.1 per cent and 84.1 per cent of the total equity turnover volume and value respectively.

    With 38 gainers to 28 losers, most sectoral indices at the Exchange also closed positive. The NSE 30 Index, which tracks the 30 most capitalised companies, recorded a week-on-week average return of 1.24 per cent. The NSE Consumer Goods Index recorded the highest average gain of 4.87 per cent. The NSE Insurance Index appreciated by 2.81 per cent while the NSE Industrial Goods Index inched up by 0.07 per cent. However, the influential NSE Banking Index depreciated by 1.64 per cent while the NSE Oil and Gas Index dipped by 3.05 per cent.

    Low-priced stocks were ahead of the bullish run. C & I Leasing recorded the highest gain, in percentage terms, of 44.9 per cent to close at N1 per share. Dangote Sugar Refinery followed with a gain of 37.3 per cent to close at N14.91. Linkage Assurance rose by 27.1 per cent to 75 kobo. Nascon Allied Industries appreciated by 26.9 per cent to close at N12. Livestock Feeds rallied by 19.2 per cent to close at 93 kobo. Cadbury Nigeria rose by 12.9 per cent to N11.80 while Jaiz Bank gained 12.1 per cent to close at 74 kobo.

    On the downside, Morison Industries led the losers with a drop of 16.9 per cent to close at N1.13. Red Star Express declined by 12.4 per cent to N4.38. Cutix lost 9.9 per cent to close at N2.19. University Press dropped by 9.3 per cent to N2.63. NPF Microfinance Bank dipped by 9.1 per cent to N1.20 while Mobil Oil Nigeria lost 8.3 per cent to close at N232 per share.

    Also traded during the week were a total of 1.166 million units of Exchange Traded Products (ETPs) valued at N16.169 million in 17 deals compared with a total of 1.732 million units valued at N13.711 million traded in 19 deals two weeks ago.

    In the sovereign bond market, a total of 5,850 units of Federal Government bonds valued at N5.702 million were traded in seven deals as against a total of 750 units valued at N0.695 million traded in eight deals in the previous week.

     

  • Equities regain rally with N185b gain

    After losing N584 billion to profit-taking last week, Nigerian equities regained the uptrend at the resumption of trading yesterday as highly capitalised stocks rallied the market to a net capital gain of N185 billion. Benchmark indices at the Nigerian Stock Exchange (NSE) showed average gain of 1.7 per cent, nudging the average year-to-date return to 21.5 per cent.

    The overall market situation showed widespread positive sentiments, especially within the blue chips and value stocks. However, the profit-taking continued to run underneath with 26 gainers to 21 losers. Aggregate market value of all quoted equities rose from its opening value of N11.108 trillion to close at N11.293 trillion. The All Share Index (ASI)-the common value-based index that tracks prices at the Exchange, also increased from 32,122.14 points to close at 32,657.30 points.

    Most sectoral indices also closed positive, underlining the broad rally that marked share pricing yesterday. The NSE Banking Index rose by 3.2 per cent. The NSE Industrial Goods Index appreciated by 1.1 per cent. The NSE Consumer Goods Index rose by 0.8 per cent while the NSE Oil & Gas Index inched up by 0.4 per cent. However, the NSE Insurance Index slipped by 0.1 per cent.

    Nestle Nigeria-the highest priced stock at the stock market, led the rally with a gain of N9.99 to close at N910. Dangote Cement-the most capitalised quoted company, followed with a gain of N4.40 to close at N200. Nigerian Breweries-the second most capitalised quoted company, appreciated by N2.63 to close at N154.53. Forte Oil rose by N2.50 to close at N52.54 while Guaranty Trust Bank-the most capitalised banking stock, rallied N1.50 to close at N36 per share.

    Total turnover stood at 386.2 million shares valued at N3.3 billion. The most active stock was United Bank for Africa with 87.11 million shares worth N762.08 million.

    On the downside, Okomu Oil Palm led the losers with a loss of N3.07 to close at N58.49. Unilever Nigeria followed with a drop of N2.14 to close at N40.85 while Julius Berger Nigeria lost N2.07 to close at N39.45 per share.

    “As expected, the prices of some value stocks prompted buying interest by investors and we expect the optimism to be sustained in the near term as investors continue to spot opportunities in a fundamentally driven market,” Afrinvest Securities stated.

  • How investors’ll gain from sector’s $12tr, by LADOL chief

    How investors’ll gain from sector’s $12tr, by LADOL chief

    Investors  stand to benefit from  the opportunities in the oil and gas sector worth $12trillion, the Chief Executive Officer, Lagos Deep Offshore Logistics base (LADOL), Dr Amy Jadesinmi, has said.

    Presenting a paper titled: “Business leaders to promote $12 trillion global economic development target,”at a conference organised by the Business and Sustainable Development Commission (BSDC) in London, Jadesinmi said the investments spaned  oil and gas, agriculture, maritime, Information Technology (IT), industry, and banking.

    Areas affected by environmental pollution during exploration and production, she said, would also benefit from the investments, adding that carbon emissions and pollution have compounded the woes of operators in the sector, thereby making it difficult for the industry to record the desired growth.

    She urged the Federal Government to leverage the opportunity to develop critical sectors of its economy, especially petroleum.

    A member of the 36-member Commission drawn from petroleum, business, finance, civil society, labour, and international organisations across the world, Jadesinmi believed that the initiative would bring about more opportunities for countries.

    Citing the report of the Commission, Jadesinmi said: “Beyond the $12 trillion estimated, conservative analysis shows potential for an additional US$8 trillion of value creation across the wider economy, if companies in the oil sector and others embrace the idea.

    She said at the heart of the Commission  are the Sustainable Development Goals ’s 17 goals of eliminating poverty, improving education and health outcomes, creating better jobs and tackle oil pollution and other  key environmental challenges by 2030.

    She said: “The Commission believes the Global Goals provide the private sector with a new growth strategy that opens valuable market opportunities, while at the same time, creating a world that is both sustainable and inclusive. And the potential rewards for doing so are significant. We need to show these ideas work not just in a report but on the business frontline.’’

    She noted that last year the Commission tackled questions, such as How to address challenges facing the oil, banking and other sectors of the economy globally, and what will it take for business to be central to building a sustainable market economy?

  • Equities sustain rally with N32b gain

    Nigerian equities continued on the uptrend for the fourth consecutive trading session as fund managers continued to rebalance their portfolios for the year-end. Today is the last trading session for this year and the stock market will close by 12.30 pm, two hours earlier than the usual closing time for the market. Nobel Laureate, Professor Wole Soyinka will beat the closing gong to close the market for the 2016 business year, keeping to the Nigerian Stock Exchange (NSE)’s tradition of ceremonial closure for the market.

    With 24 gainers to 20 losers, aggregate market value of all quoted equities rose from N9.183 trillion to close at N9.215 trillion, representing a gain of N32 billion. The All Share Index (ASI), the common index that tracks prices at the Exchange, also rose from 26,688.25 points to close at 26,782.93 points.

    Oil and gas stocks remained atop on both sides of bargain-hunting and profit-taking. Total Nigeria led the gainers with a gain of N11.88 to close at N299. Seplat Petroleum Development Company followed with a gain of N9.49 to close at N379.99. Guaranty Trust Bank rose by N1.35 to close at N24.74. Okomu Oil Palm added 65 kobo to close at N40.17 while Ashaka Cement garnered 57 kobo to close at N12.02 per share.

    On the other hand, Forte Oil led the losers with a loss of N10.07 to close at N93.54. Mobil Oil Nigeria followed with a loss of N2 to close at N290. Stanbic IBTC Holdings declined by 66 kobo to close at N15. Access Bank lost 19 kobo to close at N5.78. Champion Breweries dropped by 12 kobo to close at N2.38 while Airlines and Services Logistics lost 12 kobo to close at N2.43.

    Total turnover was below average at 117.40 million shares valued at N877.63 million in 2,392 deals. FCMB Group was the most active with 12.77 million shares worth N13.9 million. Zenith Bank followed with 11.76 million shares valued at N174.15 million while FBN Holdings placed third with 11.6 million shares worth N40.31 million.

    Analysts at Afrinvest Securities noted that the uptrend has been largely dictated by end of year portfolio rebalancing by institutional investors.

    “We expect this bullish sentiment to persist in (today) tomorrow’s trading session as the market closes for the year,” Afrinvest Securities stated.

  • Dangote Cement, others lift equities to N22b gain

    Nigerian equities remained under a delicate balance of profit-taking and bargain-hunting yesterday at the Nigerian Stock Exchange (NSE) as investors simultaneously sought to lock in profits from the recent rallies by oil stocks while taking positions in leading manufacturing companies and banks.

    With 20 decliners to 19 advancers, a 1.16 per cent rise in the share price of Dangote Cement Plc helped the overall market situation to a positive close with a net capital gain of N22 billion. Dangote Cement, Nigeria’s most capitalised stock, rose by N1.84 to close at N160, offsetting significant losses recorded in major oil and gas companies. Dangote Cement accounts for nearly one-third of the total market capitalisation of all quoted companies at the stock market.

    Aggregate market value of all quoted companies on the Nigerian Stock Exchange (NSE) rose from its opening value of N8.834 trillion to close at N8.856 trillion. The All Share Index (ASI), the benchmark index that tracks share prices at the NSE, also rose by 0.25 per cent from 25,673.80 points to close at 25,739.18 points. The average year-to-date return, though still negative, improved to -10.14 per cent.

    Most sectoral indices closed on the upside. The NSE Industrial Goods Index rode on the back of gains by Dangote Cement to close with a day-on-day return of 0.7 per cent. The NSE Banking Index appreciated by 0.4 per cent while the NSE Insurance Index inched up by 0.3 per cent. However, the NSE Oil & Gas Index depreciated by 0.6 per cent while the NSE Consumer Goods Index declined by 0.5 per cent.

    Forte Oil led the rally with a gain of N8.95 to close at N96.37. UAC of Nigeria followed Dangote Cement with a gain of 40 kobo to close at N16.50. Zenith Bank rose by 25 kobo to close at N14.50 while Flour Mills of Nigeria added 19 kobo to close at N18.49 per share.

    Total turnover stood at 165.99 million shares valued at N1.27 billion in 2,485 deals. The most active stock was Diamond Bank with a turnover of 80.27 million shares valued at N64.29 million.

    “As market performance remains driven by bargain hunting, we expect some end of the week profit taking by investors in the trading session ahead,” Afrinvest Securities stated.

    On the negative side, Total Nigeria topped the losers list with a loss of N27.56 to close at N276.05. Mobil Oil Nigeria followed with a loss of N16.16 to close at N307.15. Unilever Nigeria declined by N2 to close at N46. International Breweries lost 95 kobo to close at N18.05 while Guinness Nigeria dropped by 84 kobo to close at N77.90 per share.

  • Pain, gain and change

    When I remember the fact that Nigeria is now officially in a recession, the shamelessness of officially-licensed larceny going on in the National Assembly with the Abdulmumin Jibrin’s ‘confessions’ and the crying poverty biting the common and the not-so-common citizenry, I can’t help but revisit this piece published in January 2. No doubt, it is going to be a long way to economic recovery for this country if the authorities continue playing the ostrich…

    In this period of good tidings, it is generally assumed that the beginning of another year should ignite the feeling of hope across the world. Unfortunately, you rarely see the jollity or good feelings of the season on the face of the average Nigerian. Instead, he bears a melancholic, plastic smile on the face; in spite of everything around him, he wants to feel and seem happy. But repressed concerns and emotions surface into the consciousness now and then. For him, the rude joke of belt-tightening has gone beyond ‘be careful’ as they say in the suburb. Ironically, in this period of joyful bloom elsewhere, all that surrounds him is a pall of gloom. It becomes manifestly clear when he realises that the 2014 celebration, though low-keyed with the crumbs he could muster for the family, was far better than the no-budget reality that gnawed at him last year. The people on our streets are not smiling even when the government has not officially declared any austerity crisis. The pain and anguish of a deflated economy are already biting without anyone knowing when its reality would be officially made public. Yes, it is an era of change with a promise of a brighter tomorrow. What confounds the citizen is the possibility of not seeing that tomorrow if nothing urgent is done now, to save him from becoming a casualty of the present economic strangulation. Crudely put, this country is wobbling on its legs!

    As I write this, I can only imagine the number of families that celebrated Christmas in 2015 with the mood of a horde mourning the death, not the birth, of Jesus Christ. It is not just about those who could excuse the tragedy on a curious ‘presidential order’ that civil servants be paid salaries on the eve of a 5-day long public holidays. It is more about that commoner on the street who forages for fate daily in a society that has lost its humanity due to the raw greed of the privileged few. It is not just about the pain that aggravates the heart of the one who was used to drawing infectious laughter out of the harsh faces of few beneficiaries from his generosity both far and wide.  This year, he just could not do anything while being rendered useless by the asphyxiating economic conundrum in which the country has found itself. It is more about the unmitigated gloom that most families have been thrown into, in a season of imprisoned hope.

    And so, when President Muhammadu Buhari drew applause with his inspirational canticles on the floor of the National Assembly during the presentation of the 2016 Budget the other day, many had thought that the three-volume documents would be spared the perennial repetitive streak that has turned the annual ritual into a waste of precious time by all. But if feelers are anything to go by, then President Buhari would need more than elevated language to convince anyone that The Presidency is not about to shift into higher gear towards exceeding the benumbing profligacy of the immediate past tenants. Yes, Buhari may not have watched idly like Jonathan did when he stamped his presidential imprimatur on the illegal sharing of billions of Naira to apologists, hangers-on and unscrupulous aides by the former National Security Adviser, Col. Sambo Dasuki. Maybe he wouldn’t have tolerated the callous rape of the treasury by all manner of characters hanging around the corridors of power in the guise of protecting a weakling whose main interest was returning to office by all means possible. Well, those who participated in the heist are facing the odd music being played by the orchestra of the Economic and Financial Crimes Commission.

    Having said this, some seven months into the life of the Buhari government (now more that 14 months), we are not exactly sure if anything significantly different has changed in the way Abuja is doing things. It is one thing for Buhari to wax poetic about how deeply sorry he was to see the anguish on Nigerian faces as they eke for a slice of porridge in a challenging economic terrain. It is definitely another bitter pill to swallow when we were treated to the shocking reality that the details of the 2016 national budget reflect nothing more than a continuation of the wasteful allocations of the past 16 years. Simply put, there is something unnerving about a budget that seems to appropriate more money for The Presidency to service the luxurious tastes of a few individuals in an era of recession. Unless Buhari convinces Knuckle-headed me that he never saw the breakdown of what Aso Rock would gulp before rushing to the National Assembly to wow us with his “I feel your pain” lyrics, then I align with those who have refused to be overoptimistic about that three-tome disaster called a budget!

    In case none of his aides has been bold enough to tell him, there is a world of difference between saying the right things and doing what ought to be done to instill sanity into a system that is corrosively corrupt. How can a Buhari, an epitome of frugal living, justify the allocation of a whopping N3.6bn for the purchase of posh BMW cars for his office in the 2016 budget? Why must the State House change cutleries in a yearly ritual that gulps millions of Naira of taxpayers’ sweat? We thought that era of sickening madness had gone with the Jonathan mistake. What we did not bargain for is the report that the present change agents, whose Aso Rock residence was refurbished shortly before moving in in May last year, would be needing N387m to renovate a guest house; N47m to furnish the guest house; N27m to buy computers and N764m to provide recreational facilities. If we labelled Jonathan reckless for cornering N944m for his foreign and local junkets in 2015, why shouldn’t we cry daylight murder if Buhari now plans to hug the skies in 2016 with N1.4bn only? And what’s that thing we hear about the appropriation of N189m to purchase tyres for vehicles?

    To be fair to Buhari, he has drastically cut down on the gluttonous allocation for food in the last ten years or more. But The Presidency budget is not just about bread and butter alone. There is little or less to cheer in a budget that projects to spend N29bn, about N5bn more than what Jonathan spent last year, on certain fussy sub-heads. It is not just about the bloated figure but also about the list of spend. Besides the questions hanging over the planned purchase of exotic vehicles to mostly political appointees, it beggars belief and logical reasoning that Mr. Buhari’s palatial residence would be needing N326m for wildlife conservation and the purchase of exotic animals. Pray, wouldn’t Jonathan be laughing his head off especially when we took him to the cleaners for daring to spend common N24.6m on the same subhead last year? Like I wrote in a piece last year, I still cannot fathom any cogent reason why they keep on changing ‘canteen material and kitchen equipment’ every year in Aso Rock. Now, we are being told that N89m would be needed in 2016 to change cutleries; about five million naira more would be added to the N11m spent last year in the Vice President’s office to buy foodstuff and catering services; N12m for recreational materials and N30m to purchase tool boxes, car jacks and diagnostic machines for Buhari’s bulletproof cars! If care is not taken, I may abandon this thankless job and take up appointment as an apprentice motor mechanic in Aso Rock!

    I’m personally pained that the mistakes of the past have crept into this latest experiment at budgeting, thereby exposing the government to ridicule. It is either someone had failed to do his job with the seriousness it required or the government has refused to take the feelings of the common person seriously. You can only attract condemnation when you come out with a budget that ingloriously assumes that it is perfectly cool to spend a whopping N27m on buying C-caution sign triangles, fire extinguishers and cables. Do they think something better couldn’t have been done with N114m instead of wasting it on the upgrade of internet infrastructure in the State House?

    I perfectly understand that the State House needs to be heavily protected especially with the state of general insecurity in the land. Yet, one wouldn’t mind if the drafters of this bogus budget can explain why they need N100m for ‘Active Devices for State House Network’ and another N35m for security appliances, licenses and computer anti-virus software. How much of these gadgets were purchased last year and why should they crop up in the 2016 budget again? Now, what kind of ‘All-eye” surveillance project would be costing the Office of the National Security Adviser to install at N8.7bn with another N9bn going into what this paper tagged an esoterically-named “Stravinsky Project” in this budget of humongous figures?

    We may go on and on about the fundamental errors in the Buhari budget. In fact, some persons may even justify the appropriations. However, what is not in doubt is that The Presidency has failed to lead by example in its campaign of change by failing to cut down on its excesses and needless longing for impudent prodigality. In his budget summation at the National Assembly, Buhari said: “I know the state of our economy is a source of concern for many, worsened by the unbridled corruption and security challenges we have faced in the last few years. Fellow Nigerians, the confidence of many might be shaken. However, I stand before you today promising that we will secure our country, rebuild our economy, and make the Federal Republic of Nigeria stronger than it has even been”.

    Quite a number of persons would naturally doubt how these lofty ideals can be achieved if this unproductive tradition of profligate spending is yet to be nipped in the bud right under the nose of a President with a knack for simple if not rustic living. There is nothing reflective of Buhari’s hyped love for Spartan life and moderation in this budget! Nothing at all to show that we have changed for the better. Should the rot persist, then that would be the greatest pain, the deepest disappointment for the masses in this experimental journey of change. Will Buhari call for a re-jig of The Presidency’s appropriations for 2016 to reflect the pain he claims to feel for the suffering masses? Now that’s a tall order.

    You know what? Now that we are officially in the red, can we have a new figure on The Presidency’s spend reflecting all the cuts from the initial humongous figures that were hastily yanked off the official site of the Budget Office? Can we know if this recession bites them too?

  • Equities rally to 8-month high with N242b gain

    The upswing at the Nigerian stock market continued yesterday with a stronger momentum as increased demand for quoted equities drove the stock market to its highest point in eight months. Investors added N242 billion in capital gains, equivalent to average day-on-day gain of 2.4 per cent, while the average year-to-date return improved to 5.19 per cent.

    With the rally yesterday, quoted equities have recorded net capital gains of more than N1 trillion in the past six trading sessions since the release of the framework for the new flexible foreign exchange (forex) policy of the Central Bank of Nigeria (CBN). Nearly all analysts agreed that the uptrend was induced the new forex policy, in a market where foreign investors control some half of transactions.

    The CBN had last week’s Wednesday released the framework and on Monday started the implementation of its new forex policy that leaves Naira mainly to market forces. In a dexterous move, the apex bank simultaneously launched a one-off intervention to clear the backlog of forex demand on Monday, leaving the forex market on a plain level field.

    “Investors’ sentiment remained stoked by the increasing expectation of an influx of foreign portfolio investors (FPIs) into the market,” Afrinvest Securities, which trades on the Nigerian Stock Exchange (NSE), stated after trading yesterday.

    With two gainers to every loser, increased open buy market orders virtually turned the equities market into a seller’s market, thus allowing divesting investors to close their deals at higher prices. The cumulative effect lifted the benchmark index across the 30,000 index points.

    Aggregate market value of all quoted equities at the NSE rose from N10.105 trillion to close at N10.347 trillion, representing a gain of N242 billion. The All Share Index (ASI), the benchmark index for the equities market, also rallied by 2.40 per cent from 29,422.71 points to cross over to 30,127.82 points, its highest point since October

    Turnover also improved considerably as investors increased stakes by 16.8 per cent to N7.93 billion for 541.86 million shares in 5,727 deals. Leading banks were atop the activities chart. Guaranty Trust Bank, the most capitalised banking stock, was the most active stock with a turnover of 96.35 million shares valued at N2.23 billion.

    Nestle Nigeria led the 31-stock gainers’ list with a gain of N16 to close at N832. Dangote Cement followed with a gain of N9.25 to close at N194.25. Guinness Nigeria rose by N2.45 to close at N106.45. Seven-Up Bottling Company rallied N2 to close at N140 while GlaxoSmithKline Consumer Nigeria rose by N1.68 to close at N18.21 per share.

  • Equities rally N294b gain as CBN releases forex guidelines

    Equities rally N294b gain as CBN releases forex guidelines

    The release of the much-awaited guidelines for the flexible foreign exchange policy of the Central Bank of Nigeria (CBN) triggered a scramble for Nigerian equities, leaving the market with a net gain of N294 billion.

    Against the background of sustained depression in share prices over the past three weeks attributed to foreign exchange (forex) uncertainties, the announcement by the CBN excited both foreign and domestic investors. With more than three advancers for every decliner, the stock market spiraled to its best performance so far this month.

    In the new flexible foreign exchange system, the apex bank will merge all existing segments of foreign exchange market into a single “window”, which pricing will be determined by market forces with limited intervention from the apex bank. In essence, Naira will flow according to market forces with effect from Monday June 20.

    Foreign investors, who account for more than half of Nigerian stock market transactions, who had stayed on the sidelines due to foreign restriction joined the bargain-hunting at the Nigerian Stock Exchange (NSE).

    Aggregate market value of all quoted equities rose to N9.579 trillion from its opening value of N9.285 trillion, indicating a gain of N294 billion. The All Share Index (ASI)-the benchmark index for the stock market, rose by 3.17 per cent to the month’s high of 27,891.96 points as against its opening index of 27,034.05 points. The steep gain pared the negative average year-to-date return to 0-2.62 per cent.

    Market pundits were unanimous that the release of the framework for the flexible forex policy was the main driver for the market.

    “Investments were largely stimulated by Central Bank’s clarification on its flexible foreign exchange policy which reduced uncertainty in the financial markets,” Cowry Asset Management stated.

    Dangote Cement, NSE’s most capitalised stock, led 32 other stocks on the gainers’ list with a gain of N8.20 to close at N172.20. Mobil Oil Nigeria followed with a gain of N7.99 to close at N169.50. Nigerian Breweries rose by N5.75 to close at N133.75. Guinness Nigeria added N4.90 to close at N102.90 while Guaranty Trust Bank gathered N1.44 to close at N19.95 per share.

    Total turnover was above average with the exchange of 588.42 million shares valued at N3.48 billion in 5,088 deals. The three most active stocks were United Bank for Africa (UBA), with 197.20 million shares; Skye Bank, 74.55 million shares and FCMB Group, with 54.49 million shares.