NSE sustains bullish trend as Nigerian Breweries, Guinness, 28 others spur gains
At the close of trading on Wednesday the Nigerian Stock Exchange (NSE) further extended gains on investments as value of stocks increased lead to 0.50 percent growth in the market All Share Index which represent 184.44 points. The upturn was largely boosted by value appreciation recorded in some stocks such as: Nigerian Breweries Plc and Guinness Nigeria Plc, as 30 stocks advanced against 18 losers.
At the close of trading on the Nigerian stock exchange (NSE) Stocks value added N64.382 billion yesterday as the Nigerian Stock Exchange (NSE) All Share Index (ASI) increased by 0.50 percent or 184.44 points, while the Year-to-Date (YtD) return stood at 37.32 percent.
The All Share Index closed at 36,905.06 points against the preceding close of 36,720.62 points, while the equities market capitalization closed at N12.720 trillion as against preceding day close of N12.655 trillion. The volume of stocks traded increased stood at 215.013 million while the total value of stocks traded in 4,047 deals was N3.777 billion.
Transnational Corporation of Nigeria Plc led Tuesday’s activities chart as 34.784 million of the corporation’s shares valued at N49.669 million were traded. Fidelity Bank Plc traded with 29.968 million shares exchanged for N39.026 million; followed by FBN Holdings Plc with 28.819 million shares traded for N173.296 million. Stock traders exchanged Zenith International Plc’s 25.604 million shares worth N641.472 million; while they exchanged Guaranty Trust Bank Plc’s 20.995 million shares valued at N815.330 million.
Nigerian Breweries Plc led the list of advancers after gaining N4.24 from N167.01 to N171.25, while Guinness Nigeria Plc followed with N3.32 gain from N66.55 to N69.87 The shares of the Lafarge Africa Plc gained N2.75 from N55 to N57.75. Nestle Nigeria Plc rallied from N1025 to N1026.42 adding N1.42; while Flour Mill of Nigeria Plc gained N1.2, from N28 to N29.2.
On the laggard table, Seplat Petroleum Development Company Plc share price dipped the most, from N488 to N470.1, down by N17.9; Mobil Oil Nigeria Plc followed from N253 to N240.65, down by N12.35, Total Nigeria Plc lost N8.5, from N270 to N261.5; Okomu Oil Palm Plc also lost 3.8 from N76.95 to N74.5 while Presco Plc lost N2.45 from N76.95 to close at N74.5.
Source: Business Day
Equities Market Maintains Positive Momentum on Bargain Hunting
The equities market recorded its second positive performance for the month of August as the bulls remained in control. This followed bargain hunting by investors in value stocks, a development that made the Nigerian Stock Exchange All-Share Index to close 0.50 per cent higher at 36,905.06. Market capitalisation added N64.3 billion to close at N12.7 trillion.
This implies that the market has gained 2.96 per cent in August and 37.32 per cent from January to yesterday. A total of 31 stocks appreciated yesterday, while 18 depreciated.
C & I Leasing Plc led the price gainers, chalking up 10 per cent as investors continued to react to the positive results reported by the company for the half year ended June 30, 2017.
The company grew its profit after tax by 298 per cent to N580 million in 2017, from N145.4 million in 2016. The Managing Director of the company, Mr. Andrew Otike-Odibi attributed the improved financial performance to the strength in the diversity of its business.
“Our three business lines namely, Marine, Fleet management and Outsourcing are gaining strength in their different markets with each contributing positively to the overall performance of the business. This is not without the difficulties faced in the operating environment with rising financing and operating costs coupled with continuous pressure on turnover. We remain focused on sustaining delivery of superior customer service and continued diversification of earnings, to take advantage of growth opportunities in the markets and business segments we operate in,” Otike-Odibi said.
Lafarge Africa Plc trailed as the second highest price gainer, rising by 5.0 per cent, just as Guinness Nigeria Plc went up by 4.9 per cent. Skye Bank Plc and Caverton Offshore Services Group Plc appreciated by 4.6 per cent and 4.3 per cent respectively.
Other top price gainers were Jaiz Bank Plc (4.3 per cent); Flour Mills of Nigeria Plc (4.2 per cent) and United Capital Plc(3.9 per cent).
Conversely, Okomu Oil Palm Plc led the price losers with 5.0 per cent, trailed by Continental Reinsurance Plc that depreciated by 4.9 per cent. Mobil Oil Nigeria Plc and Nigerian Aviation Company Plc shed 4.8 per cent apiece among others.
In terms of sectoral performance, three sectors appreciated, while two depreciated. The NSE Industrial Goods Index led the gainers with 1.93 per cent following investor interests in Lafarge Africa and Cement Company of Northern stocks. The NSE Consumer Goods Index followed with 1.63 per cent, while the NSE Banking Index appreciated by 0.49 per cent.
On the flipside, the NSE Oil and Gas Index dominated, falling 2.43per cent due to sell-off in Seplat, while the NSE Insurance Index shed 0.49 per cent.
SEC to sanction capital market operators, PLCs on tax default
The Securities and Exchange Commission (SEC) has warned that it will begin to sanction capital market operators who default on tax, going forward.
In a circular posted on its website, SEC drew the attention of all Capital Market Operators (CMOs) and Public Limited Company (PLCs) on a new executive order by the Federal Government to comply with the new rule of Taxpayers on Voluntary Assets and Income Declaration Scheme (VAIDS) or face penalty.
On June 29, Acting President Yemi Osinbajo signed an executive order that would encourage citizens to voluntarily come forward and pay tax arrears without being punished.
The executive order gives impetus to government tax amnesty programme tagged- Voluntary Assets and Income Declaration Scheme (VAIDS) which seeks to boost the country’s very low tax base and raise much needed revenues.
In a statement, SEC said it is now encouraging all taxpayers in the Capital Market (i.e. CMOs and PLCs) to comply with the new Executive Order No. 004 on VAIDS before the expiration of the 9 month grace period as specified by the FG .
“In order words, the Executive Order on VAID signed by the Acting President of the Federal Republic of Nigeria, Prof. Yemi Osinbajo on June 29, 2017 stated that, taxpayers who are under all relevant Federal and State Tax laws are advised to regularize their tax status by honestly declaring their assets and incomes from sources within and outside Nigeria,” the regulator added.
SEC further announced that beginning from March 31, 2018, all CMO’s and PLC’s would be required to show evidence of compliance with VAIDS or a clean tax status as part of their mandatory submissions to the Commission. Failure to comply with this public notice shall result in appropriate sanctions in accordance with the law.
It however, noted that “the decree of limitations for a tax investigation for honest returns is limited to six (6) years” adding that, “there is no limit where a fraudulent return has been submitted for assessment.”
“In a nutshell, all CMO’s and PLC’s are hereby duly advised to comply with the Executive Order by taking advantage of the nine (9) months grace period to rectify their tax status in complying with the order,” SEC advised.
Source: Business Day
NSE market capitalisation grows by N117 bn in one day
The nation’s equity market on Tuesday maintained a bullish trend for the eighth consecutive day with the indices appreciating by 1.28 per cent and the volume by 101.48 per cent.
The News Agency of Nigeria (NAN) reports that the market capitalisation increased by N117 billion or 1.28 per cent to close at N9.249 trillion against N9.132 trillion on Monday.
Also, the All-Share Index which opened at 26,418.33 rose by 337.88 points or 1.28 per cent to close at 26,756.21 due to huge gains posted by some highly capitalised stocks.
A breakdown of the price movement chart indicated that Dangote Cement led the gainers’ table, gaining N2.50 to close at N162 per share.
Nigerian Breweries followed with a gain of N2 to close at N132 and Oando increased by 80k to close at N8.69 per share.
Okomuoil gained 72k to close at N48.52, while PZ Industries appreciated by 70k to close at N15.70 per share.
Mr Ambrose Omordion, the Chief Operating Officer, InvestData Ltd., attributed the growth to investors and traders renewed confidence to impressive earnings of the first quarter of 2017 released by some companies.
Omordion stated that the current uptrend was the longest streak since the beginning of the year. He added that investors were taking advantage of low valuation of equities to reposition and increase their stake in the market.
Omordion said that the Central Bank of Nigeria (CBN) new foreign exchange policy contributed to the market trend. On the other hand, Total topped the losers’ chart, dropping by N6 to close at N249 per share.
7UP Bottling Company trailed with a loss of N1.89 to close at N102 and Lafarge Africa dipped N1.10 to close at N48.50 per share. Dangote Sugar declined by 24k to close at N6.46, while Presco shed 10k to close at N46.90 per share.
NAN also reports that FCMB Group drove the activity chart, accounting for 243.86 million shares valued at N239.40 million. Zenith International Bank followed with 52.29 million shares worth N856.16 million, while United Bank for Africa traded 42.53 million shares valued at N274.51 million.
Diamond Bank sold 33.94 million shares worth N29.02 million and FBN Holdings exchanged 22.81 million shares valued at N81.35 million.
In all, a total of 539.23 million shares worth N2.82 billion were transacted by investors in 4,519 deals, representing an increase of 101.48 percent.
This was in contrast with a turnover of 267.64 million valued at N3.26 billion traded in 3,907 deals.
Source: The Guardian
NSE indices up by 0.44%, turnover 232.43%
Activities on the Nigerian Stock Exchange (NSE) closed for the week on Friday on a positive note, with the turnover volume appreciating by 232.43 per cent, while market indices grew by 0.44 per cent.
The News Agency of Nigeria (NAN) reports that a total of 480 million shares valued at N1.98 billion were exchanged by investors in 2,713 deals.
This was in contrast with a turnover of 144.39 million shares worth N1.54 billion transacted by investors in 2,303 deals on Thursday.
NAN reports that Staco Insurance drove the activity chart with an exchange of 252.12 million shares worth N126.06 million.
United Capital followed having accounted for 61.96 million shares valued at N24.88 million and Zenith International Bank traded 59.53 million shares worth N893.06 million.
FCMB Group sold 21.29 million shares valued at N27.53 million and FBN Holdings traded 15.19 million shares worth N50.33 million.
In the same vein, the market indicators closed higher with a growth of 0.44 per cent due to price appreciation recorded by some highly capitalised stocks.
An analysis of the price movement table indicated that Total Nigeria led the gainers’ table gaining N2.90 to close at N273.01 per share.
Nigerian Breweries came second with a gain of N1.98 to close at N115 and Julius Berger added N1.82 to close at N38.39 per share.
PZ Industry gained N1.23 to close at N13.39 and Presco Plc increased by N1.01kobo to close at N47.01 per share.
Conversely, Forte oil recorded the highest loss for the day, shedding N3.11 to close at N59.21 per share.
UAC Property trailed with loss of 10k to close at N1.94, while Custodian and Allied Insurance lost 8k to close at N3.34 per share.
Guinness Nigeria shed 5k to close at N60.95 and Livestock dipped 4k to close at 76k per share.
Source: The Guardian
Nigerian stock exchange to become one of strongest by 2025
Nigerian Stock Exchange is expected to join league of strongest world capital market by 2025, sequel to the enactment of the demutualisation of the Nigerian Stock Exchange (NSE).
Some of the industry players including Chartered Institute of Stockbrokers; Central Securities Clearing System; Central Bank of Nigeria, Federal Ministry of Finance and Association of Stockbroking Houses of Nigeria, expressed the optimism at the public hearing held by the joint Senate and House Committee on Capital Market and Other Institutions, held on Thursday, at the National Assembly complex, Abuja.
According to them, the demutualisation was an integral part if the 10-year capital markets master plan, aimed at underpin the rapid growth that is envisioned over the next decade.
In his remarks, Tajudeen Yusuf, chairman, House Committee on Capital Market and other Institutions explained that the bill will boost Nigeria’s economic development.
On his part, Adedeji Lawal, CBN’s Deputy Director Legal Service Department who pledged solidarity for the demutualisation of the Exchange, disclosed that the initiative was to “stimulate economic growth, promote efficiency in the creation and harnessing of capital as well ad create liquidity in the capital market, adapt and strengthen corporate governance best practices.”
“We observed that this transition from a company limited by guarantee to a public company limited by shares, will promote efficiency in operations, enhance liquidity and strengthen corporate governance of the NSE.
“The demutualisation process will bring the NSE within the legacies of 56 out of 64 members if the World Federation of Exchanges which have de-mutualised.
“The dynamism presented to a demutualised Exchange would augument Nigeria’s debt profile and capital raising capabilities by providing a number of attractive vehicles for foreign and domestic investors.
“The proposed demutualisation will also enable the Exchange to facilitate capital to support Federal Government initiatives and infrastructure projects as well as assist corporates and financial institutions in raising much needed capital,” Lawal said.
He added that capital market and money market are dependent on each other, as a result, efforts aimed at improving the operations of the capital market would invariably make a positive impact on the money market, which is within the remit of the apex bank’s regulatory powers.
On his part, Oscar Onyema, NSE Chief Executive Officer who noted that the Minister of Finance, Kemi Adeosun fully supported the process, disclosed that the NSE is currently registered with Corporate Affairs Commission as a company limited by guarantee.
“In its current form, the Exchange is subject to several legal restrictions which have hampered its ability to operate competitively and profitably as a limited liability entity.
“Presently, the NSE is one of the right exchanges of the 63 members of World Federation of Exchange that still operate as mutual organization. Therefore demutualisation of the NSE will reposition it to a world class and performing organization.
“Demutualisation of the NSE will provide access to global market and capital required for business development. The capital would enable the exchange meet challenges of contemporary market without necessarily placing additional financial burden on participants,” Onyema noted.
In its submission, Central Securities Clearing Systems Plc, expressed optimism that the demutualisation of the Exchange will effect technological improvements which will allow for imrpooved efficiency and effectiveness in service delivery to its customers for the development of the capital markets while ensuring that the right of access to trading on the demutualised entity is not prohibitive.
“The opportunity to raise capital from new shareholders and a broader and more strategic shareholder pool, significantly improves the visibility institutional investors as shareholders will maximize economies of scale and scope, increase accessibility and market reach.
“A demutualised entity affords a wider investor base, including participating organizations, listed companies, institutional and retail investors, the opportunity to become shareholders in the demutualised entity.
“As a result of demutualisation, the exchange can build a more sustainable institution given its ability to raise capital, expand across geographies and better consummate strategic relationships,” he said.
GTBank Celebrates 10th Anniversary of Listing on LSE
Guaranty Trust Bank Plc (GTBank) is celebrating the 10th anniversary of its listing on the London Stock Exchange (LSE) as the first Nigerian bank to be listed on the London Board.
The bank is the first to dual list on an international exchange and the first Nigerian company to raise international capital using listed Global Depositary Receipts.
To mark the pioneering feat, the Managing Director/ Chief Executive Officer of GTBank, Mr. Segun Agbaje, led the market open ceremony at the LSE last Friday, accompanied by senior representatives of the bank and other institutional partners.
The LSE is a diversified international exchange that offers international business, and investors, unrivalled access to Europe’s capital markets.
A statement from the bank at the weekend explained that since its listing on the LSE, GTBank has embarked on a decade of unparalleled growth, leading the financial industry in profitability and products and service delivery.
Commenting on the anniversary, Agbaje, said: “To be listed on the London Stock Exchange, one of the most illustrious exchanges in the world, was a pioneering feat which remains fresh in our minds.
“We are deeply grateful to all our investors and partners for the integral role they played and their confidence in our ability to pull of that giant leap. Ten years on, we remain committed to maximising shareholders’ value and delivering superior and sustainable return, guided by our founding values of hard work, discipline and integrity.”
GTBank offers a wide range of financial services and products throughout Nigeria, with strong footprints in West and East Africa, as well as the United Kingdom.
GTBank had been recognised as the Best Bank in Nigeria by Euromoney (2016), the African Bank of the Year by the African Banker Magazine (2016) the Best Bank in Africa for Corporate Governance (2015) and the Most Innovative Bank in Africa by African Investor (2016).
NSE’s indices plunge further by N44 billion
NSE, CIS endorse ASHON’s new leadership, Ikeja Hotel’s shares suspended
ICMR seeks regulatory permission to earn fee on all secondary market transactions
NPA: 25 Years Ports Devt Master Plan Underway
‘Inside Nigerian Banks’ Debuts
Lead Asset Management Floats Fixed Income Fund
Investors Blame Market Woes on Government Policies
NSE All Share Index falls marginally as profit taking sets in
Financial Experts Allay Fears over Nigeria’s Rising Debt Stock
FX Scarcity Heightens Concern over Banks’ Eurobond Obligations
Naira to begin recovery next week – BDCs
Naira crashes to N436 to dollar as foreign reserves shrink
$17b Refinery: AFREXIMBANK promises funding support to Dangote Group
Conoil Gains 97% as Investors Increase Demand on Impressive Results
Guinness Nigeria Secures $95m Loan from Diageo
NERFUND to Prosecute Customers over N17.2bn Bad Loans
FG to Raise $2bn from Concession of Lagos-Kano/Port Harcourt- Maiduguri Rail
Nigeria’s foreign exchange reserves fall below $25bn
CBN to resolve bottlenecks in non-oil export stimulation facility
FSDH Merchant Bank establishes N30bn commercial paper programme
Interbank rates expected to drop on FAAC disbursement
Honeywell Flour Mills’ New Multi-billion Naira Factory Nears Completion
Markets Watch CBN for Direction as MPC Meets
$66bn Spent On Bureau de Change in 11 years
Elumelu to Clinton, Trump: Africa Needs More US Engagement in Trade, Investment
Chairman of Heirs Holdings, Mr. Tony Elumelu, yesterday appealed to the leading candidates in the United States presidential election — Democratic Party’s Hilary Clinton and Republican Party’s Donald Trump — to retain the prevailing US-Africa policy, saying it was adequate and would only need to be expanded and scaled up.
“On US-Africa policy, some things don’t need to change,” he told his audience as the keynote speaker at the US Senator Chris Coon’s Opportunity Africa Conference 2016 in Delaware, adding: “What they need is to be expanded and scaled up. In other words, we need more US engagement in Africa through mutually beneficial trade and investment.”
He said this would be his and 200 other US and African political and business leaders, including President Obama and over 30 African presidents’ focus during next week’s US-Africa Business Forum in New York.
“We would discuss how to strengthen mutually beneficial economic ties between the African and American peoples,” the chairman of Heirs Holdings said.
Elumelu, who spoke on the theme, entrepreneurship, is one of Africa’s leading entrepreneurs, who isdedicating time and money to create a new generation of African business women and men, committing $100 million of his own money to the laudable project.
According to him, “If we give our people the economic tools to thrive and living standards increase, the political challenges that Africa face can be tackled and fundamental positive change can be assured.”
He, therefore, called on the next US president to work in shared purpose with Africans on implementing innovative solutions to the complex but surmountable challenges in Africa.
He challenged the American electorate to impress it on their candidates and the eventual president to engage more with Africa.
“So when you meet, write, call and email your political candidates and representatives and the elected president in November, tell them that when it comes to Africa, you want more. And by more, I mean more engagements, more positively impactful policies and more development and commercial investment in Africa,” Elumelu said.
Closing his address at the eventful conference, Elumelu said: “I am an unashamed optimist and I believe that working together, in shared purpose, which is what Africapitalism is about, we can help usher in economic transformation that will ensure Africa is a critical player in the 21st century global economy.”
Source: Thisday Newspapers
Recession: The Worst is Over, Says Emefiele
CBN Tasks States to Set Up Bank of Industry
High Port Charges: Nigerian Importers Divert Cargoes to Neighbouring Countries
‘Policy Inconsistency, Bane of Nigeria’s Economic Challenges’
Senate to Investigate Recession as Saraki Calls for Collaboration on Economy
Stock market drops by 0.18 per cent in profit taking trading
CBN Reads Riot Act on N213bn Electricity Stabilisation Fund
How Nigerian govt caused economic recession — Emir Sanusi
Financial stocks contribute 89% to NSE’s turnover
CBN launches Nigerian Portfolio Investors programme to boost FX inflows
Airtel and Nestle Say Nigeria’s Dollar Squeeze Far From Over
Nigeria Stock Exchange Sees ‘Total Reduction’ in Activity
FG Foresees Growth as Nigeria Enters Recession
Nigeria Slips into Recession, FG Attempts to Allay Concerns
How to get cheap forex from your bank
Naira hits 418/dollar as forex scarcity lingers
NBS: “Nigeria officially in recession, GDP growth drops to -2.06%”
The National Bureau of Statistics (NBS) on Wednesday released the much-awaited Gross Domestic Product figures for the second quarter of 2016 with the GDP growth rate sliding further from -0.36 per cent in the first quarter to -2.06 per cent year-on-year.
The negative growth rate recorded in the second quarter of this year is a confirmation of the predictions by the Federal Government and economists that the country was heading into recession.
A recession is defined as a significant decline in activities across the economy, lasting longer than a few months. It is visible in industrial production, employment, real income and wholesale retail trade.
The technical indicator of a recession is two consecutive quarters of negative economic growth as measured by a country’s GDP.
In the GDP report released by the NBS, the bureau said, “In the second quarter of 2016, the nation’s Gross Domestic Product declined by -2.06 per cent (year-on- year) in real terms.
“This was lower by 1.70 per cent points from the growth rate of –0.36 per cent recorded in the preceding quarter, and also lower by 4.41 per cent points from the growth rate of 2.35 per cent recorded in the corresponding quarter of 2015. Quarter on quarter, real GDP increased by 0.82 per cent.”
-Source: Punch Newspapers
Online fraudsters hit capital market, Sec warns
The Securities and Exchange Commission has raised the alarm over the activities of some online fraudsters, who are currently running an online investment scheme tagged ‘MMM Federal Republic of Nigeria’.
The fraudsters, according to SEC, carry out their illegitimate business via Nigeria.mmm.net portal/platform, and are promising investors a monthly investment return of 30 per cent.
SEC said the venture had no tangible business model, describing it as a Ponzi scheme, where returns would be paid from other people’s invested funds.
Investopedia.com describes a Ponzi scheme as a fraudulent investing scam promising high rates of return with little risk to investors. The scheme generates returns for older investors by acquiring new investors.
SEC on its website, said, “The attention of SEC, Nigeria has been drawn to the activities of an online investment scheme tagged ‘MMM Federal Republic of Nigeria (nigeria.mmm.net). The platform has embarked on an aggressive online media campaign to lure the investing public to participate in what it called ‘mutual aid financial network’ with a monthly investment return of 30 per cent.
“The commission hereby notifies the investing public that the operation of this investment scheme has no tangible business model hence it’s a Ponzi Scheme, where returns are paid from other people’s invested sum. Also, its operation is not registered by the Commission.”
SEC, therefore, advised the general public to distance themselves from the online scheme, adding, “Please note that anyone that subscribers to this illegal activity do so at their own risk.”
In a related development, SEC said its attention had been drawn to the activities of one Mrs. Oge C. Ottiwu of No. 118 Zink Avenue, Opposite Eke Market, Awka, Anambra State, allegedly engaging in capital market activities without any registration within Anambra State and its environs.
“Section 38(1) of the Investments and Securities Act, 2007 requires any person who intends to operate as a professional in the capital market or carry on securities business to be registered by the commission before engaging in such activities. It is therefore illegal to carry on any kind of capital market business without registration."
-Source: Punch Newspapers
SEC Clears NAHCO over Corporate Governance Issue
The Securities and Exchange Commission has cleared Nigerian Aviation Handling Company (NAHCO), its board and management of wrongdoing with respect to corporate governance and capital market activities.
The SEC clearance followed the petition addressed to President Muhammadu Buhari alleging amongst others, NAHCO’s violation of the corporate governance code and involvement in capital market related issues, a copy of which it received on July 21, 2016.
SEC in its own response to the petition addressed to the acting Chairman of the Economic and Financial Crimes Commission (EFCC), Ibrahim Magu, signed by E.A. Okolo for its director-general, and copied President Buhari, Chairman of Independent Corrupt Practices and Other Related Offences Commission (ICPC), President of the Nigerian Stock Exchange, Managing Director of Asset Management Corporation of Nigeria and Chairman of NAHCO, disclosed that it “carried a thorough examination of the corporate governance and capital market related issues cited in the letter” and did not find NAHCO, its board and management wanting.
SEC in the letter revealed that, “In order to forestall a situation where one individual wields enormous powers, Section 5.1(b) of the SEC Code of Corporate Governance for Public Companies prohibits one individual from occupying the positions of Chairman and Chief Executive Officer, NAHCO complied with this provision.”
Also, the commission noted that, “In an attempt to empower the boards of public companies to exercise appropriate oversight on management, Section 4.3 of the SEC Code of Corporate Governance requires that non-executive directors should be in the majority, NAHCO complied with this provision.”
Besides, the commission stated that, “For the purposes of efficiency and effectiveness, the Code requires that boards public companies should operate through committees, NAHCO complied with this requirement.”
Furthermore, SEC disclosed that, “In 2011, NAHCO entered into a Management Service Agreement with Rosehill Group. It was alleged that due to Mal. Suleiman Yahyah’s interest in Rosehill Group, the process was not transparent. However, documents show that the matter was presented by the management to the relevant board committee; the full board also considered the matter and finally an extra-ordinary general meeting of shareholders was convened to approve the agreement. This process largely complies with good corporate governance practice especially where the interested directors were excused from the meetings when the decision was taken. This is in addition to the fact that detailed disclosure of the management service agreement as well as the value paid by NAHCO to Rosehill Group is made in the Annual Financial Statements (AFS) of the company every year. (Please refer to AFS of 21012, 2013, 2014 and 2015).”
In addition, the commission stated that, “ We are yet to identify any rule breaches with respect to the disposal of Sabena Airlines and British Airways shares by the concerned parties. The petitioner expected that the company should have part of the N5 billion bond proceeds on the Cargo Warehouse Modernisation Project when there was a shortage of funds.
“Since the Warehouse Modernisation Project was not cited in the offer documents as one of the purposes of the offer, the company had no power to divert the funds as expected by the petitioner. This is in line with Rule 305 (6) of the SEC Rules which prohibits the utilisation of the issue proceeds on projects not contained in the offer documents.”
-Source: ThisDay Newspapers
National Bureau of Statistics to reveal we are in recession with -2% GDP growth in the 2nd Quarter
After a two-week delay in releasing the all important Gross Domestic Product (GDP) economic growth data, Nigeria’s National Bureau of Statistics (NBS) will on Wednesday, officially confirm that the country is in recession with data pointing to a further GDP contraction of minus two percent (-2%) in the second quarter of fiscal year 2016.
The data would show a record lowest deep in GDP posted by the country in 25 years after the negative growth of minus 0.36 percent (-0.36%) recorded in the first quarter. Technically, an economy is in recession if it records two consecutive quarters of negative growth.
Nigeria’s GDP contracted by 0.36 percent year-on-year in the first three months of 2016, as the country’s non-oil sector contracted mainly due to a slowdown in the services and manufacturing sectors, caused largely by a weakening naira, while lower oil prices continue to drag the oil sector down.
The Q1 GDP was against 2.11 percent expansion in the previous period and way below forecasts of 1.7 percent growth. But before the first quarter contraction, the last time that Nigeria saw a negative annual growth rate, going by the rebased numbers, was in 1991 at -0.55 percent. Before that, it had settled at -0.51 percent and then -7.5 percent in 1983.
The figures would indicate that agriculture showed some growth in the second quarter, but both industry and services contracted, a highly placed source said “Generally, industry, which includes manufacturing was largely affected by the difficulty in accessing forex,” the source said.
Figures would also show that the crude oil and gas sector recorded the worst performance.
Recent reports have it that Nigeria has lost over N1.1 trillion in oil revenues since the resurgence of militancy in the oil-rich Niger Delta region, as oil installations witnessed about 28 attacks just between February 10, 2016 and the end of last month (July) by the rampaging militants.
After hitting a two-year low in June, due to militants’ attacks on oil facilities, production managed to increase from the 1.4m barrels per day to 1.5m bpd, still much lower than the 2.2m bpd OPEC quota for the country, as well as 2016 budget estimates.
A confirmation by the NBS on Wednesday is ominous as it would obliterate prediction by the International Monetary Fund (IMF) earlier this year that Nigeria would see growth of around 1.8 percent by end of the year. Analysts say that this is because to attain a positive growth by the end of the year, the economy would need significant positive growth for the remaining third and fourth quarters, which remains unlikely, as the economy still struggles with a weakening naira and low oil prices.
But in the first quarter, the oil sector shrank 1.89 percent year-on-year, following an 8.28 percent contraction in the previous quarter. Oil production stood at 2.11 million barrels per day (mbpd), 0.05 mbpd, lower than in the preceding period.
Industrial production shrank 2.24 percent: manufacturing declined 8.39 percent (-13.09 percent in Q4), mining and quarrying fell by 2.96 percent (-8.05 percent in Q4) and electricity, gas, steam and water supply dropped 44.46 percent (+1.2 percent in Q4) and construction fell 5.37 percent (+4.14 percent in Q4).
The non-oil sector went down 0.18 percent, from a 3.14 percent growth in the previous period. Services expanded at a much slower 0.8 percent, compared with a 3.69 percent increase in the previous period.
Information and communication grew 4.07 percent (+4.21 percent in Q4); internal trade went up by 2.02 percent (+4.69 percent in Q4); while real estate decreased 4.69 percent (+0.79 percent) and finance and insurance fell 11.28 percent (+6.41 percent in Q4).
Agriculture grew 3.09 percent, lower than a 3.48 percent expansion in Q4.
Quarter on quarter, real GDP dropped by 13.7 percent, following a 3.1 percent growth in the previous period.
GSK Nigeria extends divestment deal closure date
GlaxoSmithKline Consumer Nigeria Plc (GSK Nigeria), an affiliate of GlaxoSmithKline Plc is extending the deal closure date for the divestment of its drinks bottling and distribution business to Suntory Beverage & Food Nigeria Limited.
- Source: Businessday
GT Bank report as at 18th of August 2016
GTBank reports N91.38bn pre-tax profit in H1’16
Guaranty Trust Bank plc on Wednesday released its audited financial results for the half year (H1) period ended June 30, 2016 to the Nigerian and London Stock Exchanges.
The results published at the Nigerian Stock Exchange (NSE) for investors and shareholders showed gross earnings for the period grew by 37% to N209.9billion from N153billion reported in the June 2015; driven primarily by growth in fee and commission income as well as foreign exchange income.
Profit before tax (PBT) stood at N91.38billion, representing a growth of 45% over N63.11billion recorded in the corresponding period of June 2015.
GTBank closed the half year ended June 2016 with total assets and contingents of N3.42trillion and shareholders’ funds of N453 billion.
Further review of the half year performance shows that the Bank recorded positive growth across all key financial metrics, a testament to the cutting edge strategy of the bank.
The bank’s loan book grew by 14% from N1.373trillion recorded as at December 2015 to N1.562trillion in June 2016 with corresponding growth in total deposits which increased by 23% to N2.008trillion from N1.637trillion in December 2015.
The Bank’s non-performing loans remained low and within regulatory threshold at 4.39% (Bank: 3.54%) with adequate coverage of 170.1% (Bank: 214.8%). Increase in collective impairment was borne out of the prudent stance of the Bank, while Capital remains strong with CAR of 18.25%.
On the backdrop of this result, Return on Equity (ROAE) and Return on Assets (ROAA) closed at 35.8% and 5.7% respectively. The Bank is proposing interim dividend of 25k per unit of ordinary share held by shareholders.
Segun Agbaje, Managing Director/CEO of Guaranty Trust Bank plc, while commenting on the results said that “Going into the year, we knew it would be a challenging year and we prepared for it by focusing on effective management of the balance sheet and adapting our business model to changing market variables. The quality of our past decisions enabled us navigate the challenges that persisted in the business environment most of the half year period”
Whilst expressing his sincere appreciation to customers for their loyalty, and to staff for their hard work and commitment, Agbaje added that “While the current economic realities present some challenges to growth, we remain committed to our ideals of staying positive, delivering exceptional service to our customers and adding value to all stakeholders”.
abstract from Business day news paper.