The Nigerian Stock Exchange market indices further dropped on Thursday to 31,864 points over renewed pressure to sell by investors.
 
The All-Share Index on dipped by 244.12 points or 0.76 percent to close at 31,864.80 compared to 32,108.92 points on Wednesday.
 
The market capitalization also suffered a setback by shedding N89 billion or 0.76 percent to close at N11.633 trillion as against the N11.722 trillion on Wednesday.
 
Thursday’s price movement indicated that International Breweries led the losers’ table by shedding N3.35
to close at N30.20 per share.
 
Guaranty Trust Bank followed with a loss of N2.40 to close at N34, while Mobil Oil dropped N1 to close at N150 per share. Zenith Bank lost 75k to close at N23.30, just as UACN share went down by 50k to close at N9.50 per share.
 
On the gainers table, Nestle led gaining N50 to close at N1, 500 per share while Nigerian Breweries followed with a gain of 50k to close at N83.
 
The Cement Company of Northern Nigeria added 50k to close at N18.50 per share, Union Bank gained 20k to close at N5.05, while Eco Bank Transnational Incorporated advanced by 5k to close at N15.75 per share.
 
Despite the drop in market indices, the volume of shares traded rose by 52.34 percent as investors staked N2.45 billion on 349.25 million shares
transacted in 2,595 deals.
 
This was in contrast with a turnover of 229.26 million shares valued at N2.49 billion achieved in 2,726 deals on
Wednesday.
 
Diamond Bank topped as the most active stock, exchanging 208.68 million shares worth N185.36 million while FCMB Group followed with an account of 34.68 million shares valued at N53.83 million. Stanbic IBTC exchanged 15.09 million shares worth N724.72 million.
 
 
Source: The Ripples
 
The U.S. Department of Agriculture (USDA) has projected that Nigeria will become the world’s biggest rice importer after China.
 
According to the USDA, Nigeria’s importation of rice will jump up by a whopping 13 percent to 3.4 million metric tons.
 
The Rice Outlook report released on Tuesday, said: “China and Nigeria are projected to remain the largest rice importing countries in 2019, followed by the EU, Cote d’Ivoire, and Iran.”
 
The USDA also said that “Nigeria and Egypt are projected to account for the bulk of the 2019 import increase.”
 
This latest USDA rice outlook projection for Nigeria is however contrary to the optimism by the Federsl Government o become rice self-dependent in the nearest future.
 
It will be recalled that Vice President, Yemi Osinbajo had said earlier in the year that Nigeria will stop importing rice into the country within the next one year on account of Federal government’s interventions in rice production.
 
“We only import 2 percent of rice into the country presently and this is because we are funding agriculture and production of rice locally.
 
“Today, only two per cent of rice consumed here are imported while the remaining 98 per cent are locally produced, since we came to power, we have been funding agriculture and encouraging our farmers across the country so as to be self-sufficient in food production”, the VP had said.
 
According to data from Bloomberg terminal, rice production in Nigeria had increased more than 50 percent since 2012 to 3.7 million tons last year.
 
Domestic demand rose 4 percent to 6.7 million tons in the 2017-18 year that ended in May, leaving gap of 3 million tons.
 
 
 
Source: The Ripples
 
The Federal Government of Nigeria on Wednesday successfully raised
a new $2.86 billion Eurobond.
 
The $2.86 billion however came at a higher interest rate, a move that may put more pressure on the country’s debt servicing to revenue ratios.
 
Analysts are of the belief that the new interest rates may drive rates paid on debts to about 70% of the revenue ratio except government is able to boost its revenue generation.
 
Nigeria at the moment spends an average of N69 of every N100 revenue servicing debts.
 
The completion of the Eurobond transaction is coming after Nigeria’s successful engagement with the Fitch rating agency, and their subsequent decision to change the outlook on the country’s sovereign rating from B+ (negative) to B+ (stable), based on improving macro-economic fundamentals.
 
The new $2.86 borrowing has however pushed Nigeria’s external debt to
$24.9 billion, which is six percent of the country’s Gross Domestic Product.
 
In the new borrowing, the Federal government sold benchmark-sized dollar bonds maturing in 2025, 2031 and 2049, which is equivalent to a 7-year, 12-year and 30-year bonds, at a price higher than its previous issuance.
 
It sold January 2049 (the 30-year bonds) at 9.25 percent compared to the 7.625 percent yield achieved on a 30-year bond a year ago.
 
The federal government also raised a 12-year bond at 8.75 percent
compared with the 7.875 percent achieved on a similar tenor in February and sold the 7-year bond at 7.625 percent.
 
The proceeds of new borrowing is expected to be used to fund the country’s N9.1 trillion ($29.8 billion) budget, which has a deficit of N2.4 trillion.
 
The deficit figure may however increased if government’s
ambitious revenue targets set out in the budget are not achieved.
 
Speaking on the successful completion of transaction, the Minister of Finance, Zainab Ahmed, said: “Nigeria is investing strategically in critical capital projects to bridge our infrastructure deficit, provide a better operating environment for the private sector, and improve the standard of living of our citizens. The proceeds of this issuance will provide critical financing for projects in transportation, power, agriculture, housing, healthcare and education as well as the capital elements of our social investment programmes. Nigeria’s Economic Recovery and Growth plan is delivering results.”
 
 
Source: The Ripples
In its latest round of intervention, the Central Bank of Nigeria (CBN) on Tuesday injected the sum of $210 million in the inter-bank foreign exchange market.
 
Figures obtained from the CBN indicate that the authorised dealers in the wholesale segment of the market received the sum of $100 million while the Small and Medium Enterprises (SMEs) and invisibles segments were allotted the sum of $55 million each. 
 
The Bank’s Director, Corporate Communications Department, Mr. Isaac Okorafor, assured that the CBN would continue to sustain liquidity in the forex market. He also expressed optimism that the Naira will continue its strong run against the dollar and other major currencies around the world, considering the stability in the market and robust reserves.
 
CBN had on Friday, November 2, 2018, made interventions to the tune of $337.16million in the retail Secondary Market Intervention Sales (SMIS) and CNY 56.17million in the spot and short-tenored forwards segment of the foreign exchange market.
 
Meanwhile, the Naira yesterday exchanged at an average of N360/$1 in the BDC segment of the market.
 
 
Source: News Express
 

Two commercial banks in the Nigeria, Diamond Bank Plc and Access Bank Plc have denied reports that the two banks are in merger or acquisition talks.

The banks, in seperate statements on Monday, notified the Nigerian Stock Exchange and the general public that the report circulating in some media is false.

According to Company Secretary of Diamond Bank, Mr Uzoma Uja, the bank was not in discussion with any financial institution at the moment on any form of merger or acquisition.

Uja, who, in the statement noted the attention of Diamond Bank had been drawn to the rumour in the media stating that the bank was purportedly in discussion with Access Bank to acquire the bank said: “We wish to state categorically that the bank is not in discussion with any financial institution at the moment on any form of merger or acquisition.

“We trust that the above clarifies the position of the bank with regards to the rumour on the various media platforms,” Uja said.

The Company Secretary of Access Bank, Mr Sunday Ekwuochi, in his own statement, said the bank had not entered into any such discussion with Diamond Bank or any other institution.

“As a publicly quoted company built on best practice, the bank is fully cognisant of its disclosure obligations in respect of any such corporate action and will always discharge its obligations in the most professional manner.

“Consequently, any statement regarding any such corporate action that is not issued by the bank should be disregarded,” Ekwuochi said.

The Central Bank of Nigeria (CBN) has said Nigeria is leading other Africa nations and one of the top five (5) globally in remittances inflows.
 
CBN Governor, Godwin Emefiele, who made this known, however, did not mention the exact amount of inflow but simply said Nigerians in the diaspora and other African nationals sent $72 billion home last year.
 
Emefiele, who was represented at a workshop on Remittance Household Surveys by the Director, Statistics Department of the apex bank, Mohammed Tumala, on Tuesday in Abuja, also said, while quoting a World Bank report that Nigeria was one of the top five countries of the world which received about $613 billion in remittances in 2017.
 
Although, the World Bank had in the same report disclosed that Nigeria received a total of N22 billion remittances inflows in 2017.
 
In his address, the CBN boss said remittances inflows contribute substantially to foreign exchange earnings and household finances in most developing countries.
 
“Money sent home by migrant workers is among the major financial inflows to developing countries and in some cases, it exceeds international aids and grants.
 
“According to the World Bank, global remittances have risen gradually over the years to about $613 billion in 2017, of which $72 billion was received by African countries. As a recipient country, Nigeria tops African countries and is also ranked among the top five globally,” he said.
 
Emefiele added that Nigeria had taken steps to attract more remittances inflow into the nation to further develop the Nigerian economy.
 
The steps aimed at attracting Nigerians in diaspora to remit funds home, Emefiele said, include the floating of a $300 million diaspora bond by the federal government.
 
He also added that the introduction of electronic Certificate of Capital Importation to Nigerians abroad and the country’s membership of the International Association of Money Transfer Networks were parts of measures to encourage Nigerians outside the country to remit monies home.
 
Emefiele said the former statistics on remittances inflows in the country were based on bank records and staff estimates, which according to him is a “methodology with limitations.”
 
“We think that a large chunk of migrants’ remittances pass through informal channels and are thus, unrecorded.
 
“Nigeria is yet to conduct a household based remittances survey to provide scientific estimates of these informal inflows.
 
“In addition, data from banking records also come with some discrepancies due to classification challenges on the part of reporting,” he added.
 
 
Source: The Ripples
Guinness Nigeria Plc has said its profit after tax rose by 249 per cent to N6.7bn for the year ended June 30, 2018, compared to the N1.9bn reported in the previous year.
 
The firm announced a 14 per cent growth in its revenue from N125.92bn in 2017 to N142.98bn in 2018.
 
This is as the firm declared a dividend of N4.03bn following the approval by its shareholders at the 68th Annual General Meeting held recently in Abuja.
 
According to the firm, the dividend declared translates to a payment of 184 kobo gross per share to the shareholders, representing 318 per cent increase over the dividend paid in the previous financial year.
 
It said the 2018 financial year showed impressive growth as it recorded a 31 per cent improvement in operating profit from N10.2bn to N13.4bn.
 
Addressing shareholders at the AGM, the Chairman, Board of Directors, Guinness Nigeria, Mr Babatunde Savage, said the firm had demonstrated business resilience, adding that its performance showed its commitment to ensure returns on shareholders’ investments.
 
“The company’s performance for the year ended 30 June, 2018 shows impressive growth and resilience. Although the challenges in the operating environment are yet to ease, the execution of our strategy is working well as we delivered both top line growth and margin expansion while also increasing investment behind our brands,” Savage added.
 
He told shareholders that the firm would continue to focus on the three strategic pillars of productivity, expansion of its portfolio, and the execution of the commercial footprint initiatives to drive the business forward.
 
Savage noted that as the economy continued to improve, Guinness was determined to ensure sustained and steady growth in its operations to achieve improved returns on investments.
 
 
Source: The Punch
The Nigerian Stock Exchange (NSE) on Tuesday lifted the suspension it placed on trading in the shares of four listed companies after over a year.
 
This was contained in a notice to issuers on Tuesday by NSE Head of Listings Regulation Department, Godstime Iwenekhai.
 
Lifting of suspension placed on the shares of a company implies investors and shareholders of the company could resume trading in their equities.
 
The NSE had on July 5, 2017, August 2, 2017, and October 4, 2017 suspended trading in the shares of seventeen (17), one (1) and four (4) listed companies, respectively for noncompliance with Rule 3.1 of the rules for filing of accounts and treatment of default filing.
 
The rule provides that, “If an issuer fails to file the relevant accounts by the expiration of the cure period, the exchange will: send to the issuer a second filing deficiency notification within two business days after the end of the cure period; suspend trading in the issuer’s securities; and notify the Securities and Exchange Commission (SEC) and the market within twenty-four hours of the suspension.”
 
 
According to the notice, the NSE however said four (4) of the twenty-two (22) companies suspended on three different occasions last year submitted their respective financial statements.
 
The four companies include Premier Paints Plc., Ekocorp Plc., Austin Laz & Company Plc. and Academy Press Plc.
 
The exchange explained that the suspension was lifted in view of the submission of the companies’ respective accounts and pursuant to Rule 3.3 of the default filing rules.
 
The rule provides that, “The suspension of trading in the issuer’s securities shall be lifted upon submission of the relevant accounts provided The Exchange is satisfied that the accounts comply with all applicable rules of The Exchange. The Exchange shall thereafter also announce through the medium by which the public and the SEC was initially notified of the suspension.”
 
“The general public is hereby notified that the suspension placed on the trading of the company’s shares has been lifted effective today, 6 November 2018,” NSE stated in the notice.
 
 
Source: RipplesNigeria…

President Muhammadu Buhari said on Thursday in Abuja that his administration will continue to implement policies that will make Nigeria’s economy, which is already looking good, better.

Speaking at an audience with Mr Jesper Kamp, the new Ambassador of the Kingdom of Denmark to Nigeria, President Buhari said Nigeria welcomes further strengthening of relations with countries, especially in the areas of agriculture and trade.

President Buhari told the Danish Ambassador he was pleased that relations between Nigeria and Denmark have remained strong; noting that in the economic sphere there is still some more work to do.

‘‘The Nigerian economy is looking good and we look forward to making it better,’’ the President told the Danish Ambassador after receiving his Letter of Credence.

President Buhari who also received Letters of Credence from Major General (Retd) Waqar Kingravi, the new High Commissioner of Pakistan to Nigeria, Mr Babacar Ndiaye, the new Ambassador of Senegal to Nigeria and Mr Vyacheslav Beskosky, the new Ambassador of Belarus to Nigeria, told them that Nigeria valued the existing cordial and friendly relations with their countries.

The President described the long-standing military cooperation between Nigeria and Pakistan as very commendable and beneficial to both countries.

‘‘Given the vast experience of the Pakistani military, your commitment in assisting us to develop our military is commendable,’’ he told the Pakistani High Commissioner:

The Nigerian leader recounted that as a former military officer, several of his colleagues who trained in Pakistan still have very fond memories of the country.

Receiving the Senegalese Ambassador, President Buhari commended President Macky Sall of Senegal for his roles in the progress achieved in the political process in Guinea Bissau.

Noting that he was aware of the economic progress taking place in Senegal, President Buhari stressed the need for stability in the West African region to ensure rapid socio-economic development, particularly in the key areas of education, health and infrastructure.

‘‘The bigger we are the bigger the problems, so we must continue to do our best to surmount our challenges in the region,’’ President Buhari, who is also the current Chair of the ECOWAS Authority of Heads of States and Government, told the Senegalese envoy.

In his audience with the Belarus Ambassador, President Buhari harped on the need for improved economic ties, while commending the Eastern European country for accommodating international students from Nigeria in their tertiary institutions.

The President wished the four Ambassadors very successful tenures, reiterating Nigeria’s commitment to continue to partner with their countries in areas of mutual concerns.

 

Source: PmNews

The Ghanaian High Commissioner in Nigeria, Alhaji Rashid Bawa, has clarified the controversy surrounding the closure of 400 Nigerian businesses in Ashanti, Ghana.
 
Bawa made the clarification while speaking at a programme organised by the Lagos Chamber of Commerce and Industry on Wednesday in Lagos.
 
The envoy, who was represented by the Minister, Counsellor for Trade and Investment, Sintim Asare, explained that contrary to reports that 400 Nigerian businesses were closed, only 117 were shut in Ghana.
 
According to him, the businesses were closed because they were not registered, evaded tax, their owners did not have work permits and a large percentage of them dealt in fake drugs.
 
Bawa noted that the closure of the businesses did not affect only Nigerians but other nationals, including Chinese and Indians.
 
He said the Ghana Investment Promotion Centre Act, under which the businesses were shut, was meant to protect small businesses in the country by preventing non-Ghanaians from engaging in petty trade, adding that some of the closed businesses have been reopened.
 
“We are committed to the ECOWAS Treaty and we cannot fight Nigerians, because they are our brothers. Some of the 117 businesses have been reopened.
 
“For those that are still shut, the owners were given time to regularise their papers and they are doing that, while others have simply shut their shops out of fear of attacks or in solidarity with their brothers who have not opened theirs,” the envoy said.
 
Reacting, the representatives of various Nigerian businesses in Ghana said the reasons presented by the Ghanaian envoy were not true.
 
Also speaking, the President of Nigeria Union of Traders Association, Ghana (NUTAG), Chukwuemeka Nnaji, while citing similar occurrence in 2007, said the attacks on Nigerian businesses in Ghana have become a recurring trend.
 
Nnaji argued that the Act completely eroded the rights of other Economic Community of West African States (ECOWAS) citizens in Ghana, even as Ghanaian citizens continued to enjoy privileges all over West Africa.
 
 
Source: NAN

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