The Nation Newspaper

Tag: MARKET

  • Downbeat for the stock market

    Downbeat for the stock market

    Nigerian equities are losing the momentum in the second half. Against the expectations that half-year earnings would boost stock market performance, equities have struggled with sustained declines over the weeks. Capital Market Editor Taofik Salako reports that insecurity, election and low earnings might have sapped investors’ appetite

    Equities opened this week with average decline of 0.32 per cent on Monday, extending the downtrend after it lost 0.83 per cent last week. With more losers than gainers, the selling pressure has built up and appeared to be spreading across the sectors. Last week, 47 stocks depreciated against 27 stocks that appreciated. In the previous week, more than half of price changes ended on the negative with 54 decliners to 26 advancers.

    The early period of August reflected the echoes of the downtrend in the preceding month of July, when equities lost some N128 billion. Equities had lost the momentum and struggled through July as a mixed of modest and uninspiring earnings dampened investors’ appetite. With the market closing on the downtrend, investors lost about N128 billion in July, implying average decline of 0.91 per cent. The downtrend in July depressed the average year-to-date return from 2.79 per cent at the beginning of the month to 1.86 per cent.

    Equities opened this week with average decline of 0.32 per cent on Monday, extending the downtrend after it lost 0.83 per cent last week.

    Equities had lost the momentum and struggled through July as a mixed of modest and uninspiring earnings dampened investors’ appetite. With the market closing on the downtrend, investors lost about N128 billion in July, implying average decline of 0.91 per cent. The downtrend in July depressed the average year-to-date return from 2.79 per cent at the beginning of the month to 1.86 per cent.

    Also, accumulated capital gains over the course of the year, which stood at N802 billion by the end of June, dropped to N674 billion by the July month-end as a last-day bearish trend sent most equities to lower prices.

    Aggregate market value of all quoted equities on the Nigerian Stock Exchange (NSE) closed July at N13.900 trillion as against the month’s opening value of N14.028 trillion. The All Share Index (ASI), the composite index that tracks prices of all equities on the NSE, also dropped from its month’s opening index of 42,482.48 points to close at 42,097.46 points.

     

    On the reverse

     

    The seven-month performance in 2014 represented a significant reversal against the performance in the corresponding period of 2013. Nigerian equities had by July 2013 rode to a seven-month average return of 35.03 per cent. Equities closed July 2013 on a high note, trotting back to N12 trillion after adding N581 billion capital gains in July.

    Aggregate year-to-date return thus improved from six-month value of N2.45 trillion to N3.03 trillion by the end of July 2013. After the downtrend in June, the market was particularly spectacular in July with a month-on-month average return of 5.08 per cent. The market closed the last trading day of July 2013 with a gain of N34 billion.

    Aggregate market value of all equities closed July 2013 at N12.007 trillion as against its opening value of N11.426 trillion for the month. The ASI also rose from month’s opening index of 36,164.31 points to close at 37,914.33 points by July 2013. With a bulging pocket of N3.03 trillion and average year-to-date return of 35.03 per cent, equities had readied for another record successive performance. In value terms, the seven-month capital gain of N3.03 trillion had already surpassed total gains of N2.44 trillion recorded for the entire 2012. Also, real benchmark return of 35.03 per cent was only a point below the average full-year return of 35.45 per cent recorded in 2012.

     

    The topsy-turvy pricing trend

     

    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.

    Aggregate market value of all quoted equities had opened this year at N13.226 trillion while the ASI started the year at 41,329.19 points. Riding on the back of sustained gains in May and June, the stock market had erased the losses in the previous four months and left the investors with some N802 billion in capital gains by the end of first half.

    Quoted equities had wriggled all through the first four months of this year 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.

    The ASI had 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.

    However, 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 2014 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 first half 2014 at 42,482.48 points, indicating month-on-month average return of 2.43 per cent.

    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, in expectation of half-year earnings. 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.

    Notwithstanding the modest gain in the first half, the downbeat was evident when also compared with the performance in the first half of 2013. In the first half of 2013, the Nigerian stock market recorded a six-month average return of about 28.8 per cent, leaving investors with approximately N2.45 trillion in capital gains during the period. Aggregate market value of all equities on the NSE closed the first half of 2013 at N11.426 trillion as against its value-on-board of N8.974 trillion that started the year, representing an increase of 27.3 per cent. The ASI rose from 2013’s opening index of 28,078.81 points to close the first half at 36,164.31 points. The market had subsequently built on this momentum to close 2013 with a capital gain of more than N4.25 trillion. The 2013 business year set the stock market on a new high with 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.

     

    Losing the momentum

     

    Now, market pundits appeared to agree that the equities’ market would close this year with its lowest performance in recent years, although the level of returns differs across various analyses. Most analysts believe the market would close with marginal return, a euphemism for average return of a single digit.

    Executive director, Stanbic IBTC Nominees, Mr. Akeem Oyewale, said the Nigerian equities market may struggle through the remaining month of the year to close flat as investors continue to weigh the possible risks from the political transition programme, insecurity and insurgency and economic lull.

    According to him, the equities market would possibly close flat by the end of this year as the remaining months of this year might be more challenging for equities because of concerns over the lingering insurgency in some areas of the Northern region and political transition as the 2015 election draws near.

    He noted that the while the unimpressive performance of the stock market this year may be partly due to the boom-burst investment cycle, uninspiring earnings and macroeconomic risks are also fuelling the selling pressure.

    He noted that the lingering insurgency in the North is affecting the stock market in many ways by reducing the earnings of quoted companies and also raising risk profile of the country.

    He pointed out that the insurgency in the North has affected the earnings of several companies adding that the inability to sell their products in some part of the country negatively impacted on the earnings of companies, especially fast moving consumer goods (FMCGs) which thrive on nationwide sale strategy.

    He added that the security challenge was also partly responsible for the low earnings of banks given the constrained financing opportunities.

    Analysts at Afrinvest (West Africa) also attributed the decline in the market to what they described as “broadly unimpressive earnings published by quoted companies especially the banks”.

    According to analysts, the slowdown in the momentum of the market signifies the waning appetite for select stocks particularly stocks within banking space which continued to be weighed down by weaker earnings performance.

    Group managing director, BGL Plc, Mr. Albert Okumagba, however said the second half might benefit from the muted performance in the first half. According to him, the market may witness a reversed positive trend in the second half, with better average return than the first half.

    Executive director, Magnartis Finance, Oluwaseyi Abe, said the downtrend was not peculiar to the equities, but also across fixed-income securities. This, he noted, could dissuade investors from aggressive portfolio relocation.

     

    Weak earnings, slow gains

     

    A review of operational results of most companies, especially large fast moving consumer goods (FMCGs) companies that thrive on economy of scale and large market, indicated a general decline in the momentum of sales and profitability.

    First half reports of Cadbury Nigeria, Unilever Nigeria, DN Meyer, Chellarams and Scoa Nigeria Plc among others showed declines in corporate earnings and profitability. Cadbury Nigeria’s sales dropped by 12 per cent to N15.32 billion in first half of 2014 as against N17.43 billion in comparable period of 2013. The company’s pre and post tax profits dropped by 50 per cent each. Profit before tax dropped from N3.59 billion to N1.79 billion while profit after tax declined from N2.52 billion to N1.26 billion.

    Unilever Nigeria also reported marginal decline in sales while its bottom-line was depressed by increasing sales and operating costs. Unilever Nigeria’s turnover slipped from N29.67 billion in first half of 2013 to N29.28 billion in first half of 2014. Profit before tax meanwhile dropped by 48 per cent from N3.96 billion to N2.08 billion. Profit after tax declined by 47 per cent from N2.74 billion in first half 2013 to N1.46 billion.

    DN Meyer recorded a pre-tax loss of N59.85 million in first half 2014 as against a profit of N59.01 million in first half of 2013. Loss after tax totaled N61.59 million in 2014 compared with N57.88 million in 2013. Turnover dropped from N720.63 million to N633.46 million.

    Scoa Nigeria also reported significant declines in sales and profit. Total sales dropped from N6.23 billion to N3.42 billion. Profit before tax halved to N77.04 million in 2014 as against N157.42 million while profit after tax dropped from  N123.25 million to N58.25 million.

    With its first quarter of the current business year, Chellarams recorded a loss of N109.13 million in 2014 as against N147.05 million in 2013. Turnover dropped from N7.17 billion to N6.25 billion.

    Corporate sources said spate of violence and lingering and escalating sense of insecurity have been undermining their forecasts given that the Northern market represented a major segment for nationwide companies. They said all the sales representatives in major states like Kano, Kaduna, Sokoto and Maiduguri have been forced to relocate to the Federal Capital Territory (FCT), Abuja. Particularly hard-hit were companies dealing in perishable and breakable products, which have had to contend with longer transportation schedule and sometimes, seizure and obstruction of delivery trucks.

    Banks, which form the most active stocks in the stock market, have also generally shown a largely tepid performance, ranging from outright negative bottom-line to muted growth.

    FBN Holdings Plc, the holding company for First Bank of Nigeria (FBN) Limited and its previous subsidiaries, reported 12 per cent decline in pre-tax profit in the first half. Interim report and accounts of FBN Holdings for the period ended June 30, 2014 showed that gross earnings rose by 7.9 per cent to N212 billion in first half 2014 as against N196.4 billion recorded in comparable period of 2013. Profit before tax however dropped by 12 per cent to N48.3 billion in first half 2014 as against N54.8 billion in first half 2013. Profit after tax also dropped by 19 per cent from N46.1 billion to N37.2 billion.

    Zenith Bank witnessed marginal growths across key indices. Profit before tax rose by about seven per cent to N57.85 billion in first half 2014 as against N54.08 billion recorded in the corresponding period of last year. Profit after tax also rose to N47.45 billion as against N45.42 billion for the same period in 2013. Gross earnings rose by 7.8 per cent from N171.02 billion in 2013 to N184.43 billion in first half 2014.

    Skye Bank indicated that profit before tax dropped to N7.266 billion in first half of 2014 as against N10.545 billion during the corresponding period in 2013. Profit after tax also decreased to N5.786 billion as against N8.428 billion the previous year.

    As the market winds down the alley, the only major dose from its slumbering walk is strong earnings in the third quarter. The cast is split equally; the risk is the earnings may not be strong, and the downtrend worsens..

  • Taraba opens market

    The Taraba State government has inaugurated a modern market built by former governor of the state, Jolly Nyame seven years ago.

    Acting Governor Garba Umar had flagged off the allocation of shops at the market, which is located along Jalingo-Yola Road.

    The development is believed to be a boost to economic activities which, in turn, would shore up the revenue base of the state.

    Umar praised the state Chambers of Commerce, Traders’ Association and the Taraba Savings and Loans Limited that jointly facilitated the movement of traders to the modern market.

    He said government would evolve measures that would improve quality of life of all citizens.

    The acting governor stated that government will put in place infrastructural facilities and create enabling business environment.

    “The people must work hard, rededicate themselves to the service of the state and show patriotism through actions that are not inimical to the well-being of the state and its citizens and to avoid working for foreign interests to the detriment of the state.

    “I believe that the Jalingo modern market will usher in a new era in the social, political and economic transformation of the state and serve as a vehicle for forging unity and integration,” he said.

    Umar donated one hilux van and a bus to the management of the market for surveillance, promising that government will ensure that lives and property at the market complex are protected.

    Chairman, Board of Directors of the Taraba Savings and Loans Limited, Umaru Baba said “the market will promote the social status and economic viability of the Jalingo community.

    “For this reason, no amount of government capital investment could be considered too much in establishing a market with modern structure and facilities as this one.”

    Baba assured Umar and the people of Taraba State that the Taraba Savings and Loans Limited will manage the market effectively to justify the purpose for which it was built.

    Highpoint of the occasion was the tour of the market complex by the acting governor and top government officials and the flag-off of the allocation of stores to traders.

  • Inside Nigeria’s counterfeit market

    A huge industry has been built around the sales and marketing of inferior goods, especially fast moving consumer goods (FMCG), including everything from household appliances, electrical and electronics equipment, mobile phones, computer hardware and software and other related accessories. In this report, Ibrahim Apekhade Yusuf takes a look at concerted efforts by constituted authorities to address the menace 

    IN life, everything is a matter of choice. Whether you’re taking a decision of what to eat, drink, wear, or where to live, it all boils down to one thing: choice. Little wonder in most markets across the country, the price of any product depends largely on the disposable income of the prospective buyer. And the reason for this is not far to seek: inferior goods come cheap while superior goods come with a huge price tag.

    In the assertion of analysts, pricing is sadly the major economic consideration that has come to define the quality of products that can be readily available to whomever, wherever and whenever!

    Naturally, playing on the psyche of the rest of the society, especially those on the lower rung of the ladder, people have had to succumb to the nefarious activities of unscrupulous businessmen who deal on substandard products, all to the detriment of the unsuspecting consumers.

    A peep into Nigeria’s counterfeit market

    From Oluwole, Balogun, Ladipo, Jankara, Ikeja, Alaba International Market, Westminister in Apapa to Aba New Market, Ariara Market, Nnewi Market, Onitsha Main Market, Sabon Gari in Kano, to mention just a few, it is common knowledge that in those places you find genuine brand of any product side by side with their imitations. Here, you will find products of the original equipment manufacturers as well as those that have been cloned in such a way that their fakes are only visible to the trained eye.

    Why fake product persists

    In the view of some experts, the main reason for the proliferation of fake products is because of the complicity of some greedy Nigerian importers in saturating the markets with cheap, fake and substandard goods; and the ugly situation is exacerbated by some local manufacturers of products that fall short of international or national set standards.

    Stanley Amaechi holds the view and very strongly too that the weakest spot is the fact that the purchase of fake or substandard products could be linked to the poor status of the purchasers, because poverty cannot be separated from environment management.

    One way to stem the problem of fake and adulterated products, Amaechi said, is that “the government must show a lot of will in assisting in the development of technology to manufacture most of the goods imported which are also vulnerable to adulteration and counterfeiting.”

    Expert mirrors Nigeria’s counterfeit market

    Mr. Anthony Offor, a freight forwarder in Apapa Tin Can Island Port, Lagos, in an interview with The Nation, gave a bird’s eye view of the products which are being faked and the modus operandi of counterfeiters.

    “The most commonly counterfeited electrical products in the country as at today are wires, bulbs, especially the newly introduced energy-saving bright but hotless brands and appliances such as heaters and switches. It is always difficult to identify them without the necessary gadgets for electrical standardisations,” he said.

    Continuing, he said: “In terms of volume or the likely quantity of substandard electrical products being dumped into the country for local consumption, I must say that the quantity is gradually decreasing, to be honest, due to awareness and the relentless fights by the relevant agencies here in Nigeria and those of the countries where the fake products emanated from. If I may estimate the likely volume, I will put it at 13.7% and most of it comes in through the land routes and border. On the likely cost estimation, one can tentatively put it at 4.6billion naira annually.”

    As to how to find out when electrical goods are being counterfeited, Offor said: “As I said earlier, most of these counterfeited electrical goods enter the country through the land borders, not the sea or air ports. Of course, the local business communities work like a cartel. They are distributed through the usual distributions and sold in the open shops from where they get to the end users.

    “The actual percentage varies and depends on the type of products, but I can rightly say that out of 100%, about 35% is being utilised locally, with less than 300 per cent re-exported: 65% is also re-exported to various countries.

    “Remember, the above electrical products are under the regulatory purview of the Standard Organisation of Nigeria, and they have the necessary equipment and gadgets to detect them. This is why some of us still want both SON and NAFDAC back at the ports because some of the importers of those substandard products play smart with the producers, especially from China.

    “The responsibilities are being shared by the Nigeria Customs Services, SON and NAFDAC in ridding the Nigerian markets of counterfeited and substandard products by conducting surveillance checks and also carrying out market survey to detect the influx of fake goods in the country.

    “The main actions taken by the authorities are raiding the markets where the counterfeited products are sold, seizures are made and the goods are confiscated or burnt. But all these come through enforcement exercise which rises through surveillance and intelligence report to pursue resolutely government’s zero-tolerance against product counterfeiters because they are committed to the war against product counterfeiting.”

    Besides, he said, “The main obstacles faced by law enforcement is lack of adequate facilities and at times the investigation is hampered by the so called corrupt officials because the suspects usually try to manoeuvre their way to get out of the loopholes when they get caught in the act. I believe there should be change in the modus operandi, and government should endeavour to reduce the quantum of sub-standard products into the country.”

    A victim’s sad tale

    Mr. Adekunle Mattew (not real name) is not usually happy to recount his not-so-pleasant experience at Computer Village. Located within the Ikeja axis, Computer Village houses thousands of technology companies and phone shops and is acclaimed as the largest IT market in sub-Saharan Africa.

    Still seething with rage, Matthew who spoke with The Nation over the weekend recalled that sometime in 2008, he had gone to purchase some mobile phones, desktop computers and other related accessories for his wife, who had just accessed a small loan from her company’s cooperative, in order to set up a business centre.

    “We committed over half a million into the transaction. But unknown to us, most of the products we bought were inferior. From the desktop to the software, all were adulterated products. Barely one week after we set up shop, the computers crashed and the Microsoft software we purchased was also not genuine,” he recalled.

    Expatiating, he said, “Apparently convinced that we had a warranty for most of the products, I visited the shops we made those purchases from, but to my greatest surprise they said I had to pay extra if I was desirous of getting new products. But I insisted on a refund and that was when the trouble started.  I instituted a criminal case against them but the law enforcement agencies compromised. And after two years of foot-dragging, I had to withdraw the case at the end. It’s a sad experience I don’t usually want to recall.”

    Naturally, when news filtered in three years ago that the Lagos State government was set to relocate the popular Computer Village in order to decongest Ikeja, and ensure urban renewal, Matthew was one of those who heaved a sigh of relief.

    “The whole place is rowdy and unorganised, especially the manner in which various activities go on in the place, as touts have a free reign in the market and sometimes harbour criminal s too. So, it’s best if the market is relocated,” he said.

    But it never came to pass.

    No longer at ease with Nigeria’s counterfeit market

    From available statistics made available to The Nation, the Standard Organisation of Nigeria, SON, has so far arrested more than 80% of individuals who have been involved in the illicit trade of counterfeiting.

    Standards Organisation of Nigeria (SON), Nigeria Customs Services, and other sister agencies have been at the forefront of campaign to stem the tide of inferior goods in the system.

    Interestingly, their concerted effort is beginning to yield some dividends. As part of this campaign, the SON in company of heavily armed policemen clamped down on suspected fake phone dealers at the Computer Village market recently.

    Justifying the need for the raid, SON’s Head of Intelligence and Compliance Directorate, Mr. Bede Obayi, who briefed journalists after the raid, said the exercise was diligently carried out, following the surveillance team’s reports which indicated the influx of substandard phones into the market. He added that a handset dealer at Otigba Road, in the Lagos computer village, called Trinity Technologies and Communication Limited, came to SON and registered a brand called ‘H-Mobile’ phone, only for SON to discover thereafter that the company had embarked on the importation of different brands of handset other than the H-Mobile it registered with SON.

    “The company also imported a large quantity of unbranded handsets into the country and kept itself busy labelling them with marks of popular brands in the market, thereby deceiving the unsuspecting innocent buyers.”

    The Managing Director of the company, who apparently got wind of SON’s presence at his shop, took to his heels. However, two members of his staff are now helping SON and the police in locating his warehouse, where it is believed that he has a stockpile of the fake handsets, being a big time distributor of the product.

    However, Obayi expressed shock at the unholy attitude of the market leaders who instigated their boys to assault SON officials and the police with dangerous weapons during which the agency’s vehicles were destroyed.

    He said: “Our operation in the market was very smooth as our target was only the Trinity Technologies and Communication Limited shop and we requested other traders who converged around us to go about their businesses. Nobody was molested or insulted by our men and policemen attached to us, as we consulted with the police in charge of the market and they provided us with a place to park our vehicles.

    “Even their market leaders were informed about our operation in the market as SON and market associations in major markets across the country have been collaborating to rid markets of fake and substandard goods.

    “So, if Lagos computer village market association leaders are now collaborating with dealers in fake and substandard goods in their market, that will be the next thing the SON management has to decide on how to handle,” he concluded.

    NCC raises voice over the din

    Apparently miffed by the incidence of adulterated IT products in the country, the Nigerian Communications Commission (NCC) has urged men of the Nigerian Customs Service (NCS) to tackle the influx of fake and substandard mobile phones into the country.

    Speaking in Lagos recently, its Executive Vice Chairman/Chief Executive Officer (CEO), Dr Eugene Juwah, said the duties of the regulator do not extend to monitoring the importation of mobile phones, but type-approving and placing the list of the type-approved mobile phones on its website and availing the NCS of a copy too.

    According to him, the issue of fake/substandard mobile phones is complex as the phones find their way into the country through the various entry points.

    Experts have argued that aside factors, such as base transmission station (BTS) and metropolitan optic fibre cable (OFC) vandalism, the quality of service (QoS) problem in the country has been associated with interference arising from low and substandard mobile phones.

    He said: “Well, on the issue of phones, it is very difficult. We don’t control the import of phones. All sorts of phones come into the country.

    “NCC has always been in talks, discussion and information-sharing with the Customs Service and it is really their duty (to stop unbridled importation of mobile phones). They have our list of approved phones but phones come through smuggling and other means. You have to bear that in mind. A lot of the cheaper phones come through smuggling. The bigger phones such as Apple phones come through specific distributors and they come to the customs too. The small phones can contribute to the issue of QoS because they are not approved, they are not well manufactured and they come from the grey markets into Nigeria.”

    A rebuttal from a Chinese firm

    Meanwhile, a Chinese telecom equipment vendor, Huawei Technologies Limited, has extricated his home country from allegations of product counterfeiting.

    Rather, he blamed the erratic power supply from the national grid for the poor telecoms services in the country.

    Speaking during a courtesy visit to the headquarters of Vintage Press Limited, publishers of The Nation newspaper titles and Sporting Life, in Lagos, recently, the Managing Director, Huawei Technologies Limited, Nigeria, Mr. Pang Jimin, said as telecoms equipment vendors with network optimisation agreements with all the operators in the country, the recurrent issue of poor quality of service (QoS) has nothing to do with its equipment but more of the challenges the nation is having with the power sector.

    Jimin dispelled the insinuation that Chinese firms were manufacturing substandard equipment and shipping them to Nigeria and other third world countries, adding that its products are universal in quality and in every ramification.

    He said: “I think one of the major issues that you cannot compare this country with China or Europe is power. In China, there is no power failure. Here, there is always power failure and you know when one base transmission station (BTS) goes off, service quality will go down.”

    According to him, its range of mobile phones and other products are manufactured with no region or continent in mind, insisting that Huawei, as a global brand, does not collude with unscrupulous elements to mass-produce substandard products and ship to the local market for gains.

    As standard regulatory bodies, SON, NAFDAC et al, take the battle to product counterfeiters in the country, we wait with bated breath to see if they succeed.

  • Quoted firms, capital market operators get deadlines on complaints’ resolution

    Quoted companies and capital market operators must compulsorily set up complaint resolution framework and address complaints from investors and other parties within a specified timeline, according to  new rules being considered by the Securities and Exchange Commission (SEC).

    A draft of the new rules on complaints management in the capital market obtained by The Nation mandates all capital market institutions including SEC, Nigerian Stock Exchange (NSE), quoted companies, Chartered Institute of Stockbrokers (CIS), capital market trade groups, stockbrokers and 1other operators to establish complaints management policies for the handling of various complaints.

    A source at SEC said the new rules were part of efforts to protect investors and enhance market’s integrity.

    The source noted that the new rules would complement other initiatives such as the Investors’ Protection Fund and ensure that the Nigerian market operates on the global best practices.

    According to the draft, all capital market operators and listed public companies shall be required to establish a clearly defined complaints management policy to handle and resolve complaints including complaints against operators by clients or other operators, shareholders and public companies and shareholders or investors.

    All capital market operators must resolve complaints against them within 10 working days from the date that the complaint was received while they have two working days to notify the relevant authority of the resolution of the complaint.

    Also, all the operators and quoted companies would have two working days to acknowledge receipt of complaints received by email and five working days to respond to complaints received by post.

    Where the complaint is not resolved within the given timeframe, the complainant or company will refer the complaint to the relevant competent authority within two working days with the letter of referral detailing proceedings of events leading to the referral and copies of relevant supporting documents.

    Also, all complaints lodged at first instance with the relevant competent authority would be resolved within 20 working days while the outcome of all complaints that are not resolved shall be referred to SEC 20 working days.

    The new rules make it mandatory for complaint policy by each quoted company and operator, which shall be defined and endorsed by the company’s senior management.

    According to the rules, the management of the companies would be held responsible for its implementation and for monitoring compliance.

    Besides, all capital market operators and quoted companies are required to have a complaint register, which will include details of all complaints. The companies are expected to provide the summary of the complaint register including the number of complaints to SEC.

    The new rules also empowered SEC to refer all prima facie case of criminal market abuses to the appropriate criminal agency for prosecution.

    However, companies and operators are exempted from addressing any complaints bordering on allegations without supporting documents, suggestions or seeking guidance or explanation, explanation for non-trading of shares or illiquidity of shares, trading price of the shares of the companies, non-listing of shares of private offers of securities by private companies and disputes arising out of private agreement with companies or intermediaries.

  • ‘The deodorant market is huge’

    ‘The deodorant market is huge’

    For strategic reasons, manufacturing giant, Unilever has replaced Sure Deodorant with its global brand, Rexona. In this interview, the Category Manager, Deodorants and Skin Care, Unilever, Mr James Inglesby, tells ADEDEJI ADEMIGBUJI, why the firm took that decision.

    Why are you replacing Sure with Rexona?

    Sure and Rexona are exactly the same thing. The reason we brought Rexona to replace Sure is that Sure is only sold in the United Kingdom (UK). Rexona is a two billion euro global brand while Sure only contributes 13 per cent to the market. So, when you want to launch a new product, you bring the global leader, which is Rexona. By bringing Rexona to Nigeria is of multiple benefits. First, the product that you get is designed for the UK market and not Nigeria. Also, we’ve looked into what other fragrances that Nigerians want before launching Rexona. The other thing that we have is earning global sponsorship; everybody can see that we sponsored the World Cup. You can only do that with Rexona, you cannot do that with Sure, because it is only a UK thing, while Rexona is a global brand. It also allows us to bring in innovations, bigger innovations, and quicker to Nigerians. That’s why we brought it. So, what we offer is a superior product that has been improved for Nigeria. So the Sure deodorant that you know is now coming in improved format as Rexona.

    What informed the introduction of Rexona Deodorant into Nigeria’s market?

    It is because of the huge potential the market holds. About 170 million people live in Nigeria. That means we have 340 million armpits that need deodorant. Besides, what we are also trying to do is to help use Rexona deodorant bring people’s confidence back. Once people start sweating and smelling, they begin to lose confidence. We are here to restore that confidence.

    What would this add to Unilever as a company?

    For us, it is transformational. Unilever is 91 years old in this country and we have attained leading position in the traditional categories that we operate in. This is a beginning of the new set of categories that we’ll launch the movement of Unilever to another level, in line with the consumer needs.

    Why are you so confident about the Nigerian market?

    In Nigeria, smell and beauty are closely linked. Looking at all the beautiful ladies, we know that they are actively out there looking for solutions to body odour and great fragrance. And I know as the number one deodorant company, we are the people that deliver that solution. Another thing that gives me confidence is the accessibility of the price. The reason people do not use these things is the inaccessibility of their costs.

    How do you intend to cope with counterfeiting?

    We have our NAFDAC number. The regulatory body is fully aware of our products. Another thing that we have done is that we only advertise the key variants and we constantly monitor the market. We are very much aware of the fact that counterfeiting very much happens in Nigeria and we are ready to counter that. The other thing is that consumers in Nigeria know that there are fakes. So, we will make sure Nigerians only pick up our products and not the counterfeits.

  • Truck rams into market, kills four

    Truck rams into market, kills four

    •11 injured

    Four persons died yesterday, while 14 others were injured at the Odo-Eran bus stop area of LASU/Igando Road, after a truck lost control and rammed into a market.

    Eyewitnesses said truck had brake failure when its driver was trying to negotiate a sharp bend about 10 am. The deceased were said to comprise two men and two women.

    The driver was said to have rammed into the market in an attempt to avoid over-running a tricycle riders’ park by the corner.

    One of the male victims, who was described as a Good Samaritan, died while attempting to save a woman from being overrun by the truck.

    Moments after pushing the woman out of the way, a rod from the truck was said to have struck Good Samaritan.

    The truck driver, it was gathered, attempted to escape, but traders caught him and inflicted machete wounds on him.

    An eyewitness, identified as Balogun Towiwa, said: “The truck driver would have been killed but for the timely intervention of officials of the Federal Road Safety Corps (FRSC).”

    One of the deceased was said to have been dismembered as her remains were later evacuated in a sac.

    The truck was loaded with bags of sachet of water belonging to Dammy Pure Water, which is situated at 22, Church Close on Igando Road.

    Hon Salami Adedoyin, a politician in Idimu area, said: “The driver was saved by FRSC. He wanted to run, but was apprehended by traders who used machetes on him.”

  • Four killed as truck rams into market

    Four killed as truck rams into market

    Four persons died yesterday when a truck lost control and rammed into a market at Odo-Eran bus stop on LAU-Iba road yesterday. Eleven others were injured.

    Eyewitnesses said the truck’s brakes failed when its driver was trying to negotiate a sharp bend at about 10 am.

    The truck was said to have rammed into the market to avoid over-running a tricycle riders’ park.

    A male victim described as a Good Samaritan died while attempting to save a woman from being overrun by the truck.

    Moments after pushing the woman out of the way, a rod from the truck was said to have struck the Good Samaritan.

    The driver, it was gathered, attempted to escape from the scene but traders seized him and inflicted machete wounds on him.

    An eyewitness, identified as Balogun Towiwa, said: “The truck driver would have been killed but for the timely intervention of officials of the Federal Road Safety Corps (FRSC).”

    The truck was loaded with bags of sachet water belonging to Dammy Pure Water, which is situated at 22, Church Close on Igando Road.

    Hon Salami Adedoyin, a politician, said: “The driver was saved by FRSC. He wanted to run, but was apprehended by traders who used machetes on him.”

  • Capital market regulators issue guidelines on online trading

    Capital market regulators issue guidelines on online trading

    Securities regulators have designed guidelines for the growing number of retail online stockbroking portals that allow investors to execute their own orders on the Nigerian Stock Exchange (NSE).

    A reliable source said the regulators have raised a team to review the retail online stockbroking portals and develop a robust regulatory framework that could aid the growth of the segment and protect the investors and the market from abuses.

    The regulatory framework is expected to provide clear rules and guidelines for stockbroking firms and users of the online trading portals.

    There are no specific rules and guidelines for the online trading portals, which have emerged with the launching of the NSE’s new multi-faceted trading engine in 2013.

    At least four stockbroking firms have launched online retail stockbroking portals. These included Meristem Securities Limited, Lead Capital Plc, Morgan Capital Group and Capital Bancorp Plc.

    The regulatory framework, according to sources, would seek to protect the market and investors from the main risk of identity theft while allowing enough flexibility that could stimulate the growth of the online trading.

    NSE’s new trading engine, X-GEN, became fully operational in 2013. A dynamic platform that has numerous opportunities and capabilities, it is able to process some 100 million orders per day with 5,000 trades per second. It has a highly flexible and configurable market structure that can be enhanced to support the auctioning process and trading of several asset classes including Treasury Bills, a wide range of Fixed Income securities (including FGN Bonds), Equities, Exchange Traded Funds, Commodities and Derivatives.

    Based on NASDAQ OMX’s proven X-Stream technology, the X-Gen allows investors, through their stockbrokers, to have real-time access to market prices and their portfolios and provide them with ability to execute market orders in near real-time on a wide range of devices including smart phones and laptops from any location.

    Capital Bancorp is billed to formally launch its online stockbroking portal, Bancorp e-Trade, tomorrow. Bancorp e-Trade enables retail investors with as low as N1,000 to open stockbroking accounts and trade on these accounts.

    Managing Director, Capital Bancorp Plc, Mr. Higo Aigboje, said the portal will provide investors with round-the-clock access to their portfolio and cash statements while investors can also place their orders within and outside the trading hours of the NSE.

    According to him, Bancorp e-Trade is designed as a convenient and transparent means to ensure investors are in control of their investments at any time.

    To be eligible to trade on the portal, one needs only access to internet, a functioning e-mail address, any active bank account, a fair understanding of the workings of the stock market and a stockbroking account with Capital Bancorp.

    He outlined that his firm has simplified the account opening process for new investors as they only need to fill account opening form and upload scanned passport photo, scanned utility bill that is not later than three months, scanned specimen signature, scanned mode of identification and their bank details.

    The features of Bancorp e-Trade, which sits on the infoware e-business suite platform, included display of balance in any currency of choice, online mandate, ability to specify expiry dates on orders, display of portfolio balance and portfolio analysis, statement of account, ability to view and download contract note in different formats, ability to view certificates and verification status, live streaming of stock market prices, live portfolio valuation, amendments or cancellation to undone transactions, graphs and charts and online real-time client information.

  • Life in Lusada market

    Lusada market is a market mainly for Igbesa people in Ogun State but it’s now for all shoppers and traders from other villages as they meet to sell their goods, it is the central market of the people of Igbesa land who don’t really have a market as they spend their days in the farm.

    The Lusada market, held every five days, helps in bringing different shoppers all over the neighbouring towns to  showcase their products, while traders from Badagry, Cotonou, Idiroko and as well as the northerners use this opportunity to sell their goods.

    Lusada market is one of those market where shoppers can get all what they need especially on the market day, which is five days interval. People from the borders also bring their goods such as rice, groundnut oil and turkey to sell to shoppers at a cheaper rate.

    The market which is not really a big market has all what it takes to be called a market according to a shopper Mrs.  Shola Ayodele.

    She said the market has been in existence for long and has been meeting people’s needs.  She said: “The way shoppers of different tribes patronise the market makes me to believe that we are one in Nigeria.”

    Mr. Mustafa Abubakar, a trader, who sells onions believe that Lusada market is the best place for shoppers because all the goods to sell is at a cheap rate that is why it is usually once in a week, to enable shoppers have time for themselves and be ready for another week.

    Mrs Senayon Wheto a shopper from Cotonu said: “I love coming here to shop here, because most of their goods here are cheap, so when I come I buy and go back to sell at my village.”

    The market, which is usually held every five days, is as a result of other markets, such as Agbara and Owode markets so that shoppers can also patronise them to avoid clash and low sales, among other traders.

  • Nigeria expands mobile phone market

    The chief executive of Tingo Mobile Phones, Dozy Mmobuosi, has said Nigeria has the capacity to produce mobile phones of international standard.

    He spoke recently in Lagos, during the launch of Tingo mobile branded phones, stressing that it would not only meet local consumption but export to other countries.

    Mmobuosi said 80 per cent of components used in the manufacture of Tingo mobile phones are sourced locally. He explained that Tingo products came into being as part of efforts to complement government’s technological drive to launch Nigeria among comity of nations in communication technology.

    He stated that the phones range from single to dual sims, noting that apart from their durability, they are equally cost-friendly.

    He said the inbuilt system allows information to be passed in Nigeria three major languages; Hausa, Yoruba and Igbo.

    According to him, Nigerians who do not understand English language can make use of it because of the local language devices in the phones.

    The CEO stressed: “The phones can even assist you to locate your family members, pets and important things. This can be done by ensuring that they are properly documented.

    “Should your relations be kidnapped or held in danger, your car stolen, you can easily notify the appropriate authority for immediate action.”

    He urged Nigerians to take advantage of the new product to express themselves. “It is all about your style, your personality and the Nigerian image. They are basically designed to conform with your life style.”