Access Bank Plc announced its audited results for the full year ended 31 December, 2017, showing gross earnings of N459.075 billion, up by 20 per cent from N381.3 billion in 2016. Growth in gross earnings was boosted by a 29 percent increase in interest income to N319.9 billion in 2017, from N247.2 billion in 2016 whilst net interest income grew by 17 percent from N163.452 billion in 2017, from N139.148 billion in the comparative period of 2016. Similarly, non-interest income grew four per cent to N139.1billion in 2017 from N133.4 billion in 2016. Foreign exchange income soared from N3.598 billion in 2016 to N107.932 billion in 2017. However, loan impairment charges jumped 57 per cent from N21.953 billion to N34.467 billion in 2017, a development the bank attributed to the adverse lingering effects of the macro on asset quality in the industry.
Consequently, profit before tax fell by 11 per cent to N80 billion, from N90.33 billion, while profit after tax declined by 13 per cent to N71.439 billion to N61.991 billion.
Despite the decline in bottom-line, bank has proposed a final dividend of 40 kobo per share to its shareholders, in addition to 25 kobo interim dividend paid earlier, making a total of 65 kobo for the financial year.
A further analysis of the bank’s results showed that loans and advances grew 11 per cent to N2.064 trillion in 2017, from N1,855 trillion in December 2016, while total assets grew 18 per cent to N4.102 trillion in December 2017, from N3,484 trillion in the corresponding period in 2016.
Commenting on the results, Group Managing Director of Access Bank Plc, Herbert Wigwe, said: “Our operating performance in 2017 was impacted by the residual effects of macro-economic conditions of 2016, characterised by slow economic expansion and adverse credit conditions, which resulted in making conservative provisions on our loan book. Despite the macro and regulatory headwinds, our underlying business remained strong as reflected in the gross earnings growth of 20 percent to N459 billion in 2017. We grew our loan book to position it for improved earnings, whilst driving deposit mobilisation from targeted segments to diversify our funding base.”
Dangote Cement Plc wednesday disclosed that it has gotten approval from the Securities and Exchange Commission (SEC) and other regulators to raise N300 billion ($833 million) in local-currency bonds.
The company, which is the most capitalised stock on the Nigerian Stock Exchange (NSE) intends to utilise the fund on its expansion as well as to refinance its debt.
Africa’s largest producer of the building material plans issue the debt over three years, Bloomberg quoted its Chief Financial Officer, Brian Egan, to have said during an investor conference call on Tuesday.
The bond will be issued in tranches of N50 billion at a time whenever interest rates are favourable, Egan added.
The company, controlled by Africa’s richest man, Aliko Dangote, is also considering to sell Eurobonds to boost its funding, Egan said. Dangote is planning to spend $350 million on capital projects this year, including the building of export facilities at Nigeria’s seaports, which will see it begin shipments of clinker and cement to neighbouring West African countries.
The company said revenue for the year through December rose 31 per cent to N806 billion while net income rose 43 per cent to N204 billion. Sales volumes declined by seven per cent owing to a downturn in Nigeria, its biggest market, it said. The company sees “higher volumes” this year as Nigeria’s economy recovers, its acting Chief Executive Officer Joe Makoju said.
Contrary to expectations that impressive full year financial results of companies will further boost the performance of the equities market last week, investors ignored results released by Zenith Bank Plc, Guaranty Trust Bank Plc and Stanbic IBTC Holdings Plc and increased their sell pressure.
Consequently, the two-week bullish run came to a halt as the Nigerian Stock Exchange (NSE) All-Share Index (ASI) plunged 2.9 per cent to close at 41,935.93, while market capitalisation shed N506billion to be at N15.002 trillion. Similarly, all other indices finished lower during the week with the exception of the NSE Insurance.
Ironically, the NSE Banking Index was among the sectors that contributed to the decline despite impressive results and improved dividend recommendation by Zenith Bank and GTBank. The local bourse traded southwards on all days expect Tuesday when it closed the day flattish.
Specifically, the market began last week on negative note as the Nigerian Stock Exchange All Share Index (NSE ASI) depreciated by 0.26 per cent to close at 43,056.51. Decline in the share prices of FBN Holdings Plc, Access Bank , Flour Mills, GTBank, and United Bank for Africa (UBA) were mainly responsible for the negative close.
The three most actively traded stocks were FBN Holdings (425.60 million shares), Zenith Bank (78.96 million shares) and Japaul Oil and Maritime Services (64.76 million shares).
According to operators, the market performance was mostly negative across sectors. Activity level declined and market breath closed negative. Market activity is expected to improve in coming sessions with release of other 2017 corporate earnings.
In terms of sectoral performance two closed in the red, while two trended northwards while one closed flat. The Insurance Index was the biggest gainer, up 0.8 per cent. Similarly, the NSE Oil & Gas Index inched 0.3 per cent. Conversely, sell pressure in UBA and Union Bank of Nigeria dragged the NSE Banking Index 0.9 per cent southwards. The NSE Consumer Goods Index shed 0.09 per cent, while the NSE Industrial Goods index remained flat.
However, the market appreciated marginally on Tuesday as the NSE ASI appreciated by 0.04 per cent to close at 43,073.42. But there were more price losers. Specifically, 39 stocks depreciated while 26 others appreciated But the share price of Japaul Oil and Maritime Services Plc suffered the first major decline after a bull run that lasted for days. Japaul had in the previous week appreciated by 53 per cent following renewed demand by investors who were reacting to news that it had entered into a binding commitment with Milost Global Inc., an American private equity firm to inject $350 million into its operations.
Japual had disclosed to market operators, shareholders and other stakeholders that the $350 million capital injection by the United States based firm was in line with the mandate received from the company’s shareholders at the annual general meeting held on Thursday the 30th day of June, 2016.
According to Japual, the facility is in form of $250 million equity injection and $100 million Convertible Notes and it is expected to bail help to bail out the company from the present financial situation.
Based on this information, many investors renewed their demand for the stock, which led to a jump of over 50 per cent to close at 97 kobo per share.
However, profit taking by some investors on Tuesday reversed the gaining streak and made it to close as the highest price loser. It shed 8.3 per cent to be at 88 kobo per share.
Renewed sell Pressure depressed the market on Wednesday with NSE ASI, falling 0.54 per cent to close at 42,839.52. The depreciation recorded in the share prices of Transcorp, Cadbury Nigeria, Zenith Bank, UBA, and Nestle led to the decline.
“Market performance was mostly bearish driven by sustained sell pressure predominantly in the banking sector stocks, despite the release of results of GTBank and Stanbic IBTC Holdings Plc,” operators said.
Accordingly, market capitalisation declined N83.7 billion to close at N15.3 trillion. Activity level was mixed as volume traded fell 8.6 per cent to 372.7 million units while value traded trended 11.9 per cent northwards to N6.8 billion.
Also, sector performance was mixed three of the five major indices closed southwards with the banking index leading the laggards, down 1.5 per cent due to losses in Zenith Bank Plc and Access Bank Plc.
The NSE Consumer Index trailed, losing 0.8 per cent on the account of price depreciation in Nestle (-1.4 per cent), and Dangote Sugar (-4.9 per cent) while the NSE Oil & Gas Index shed 0.3 per cent as losses in Total Nigeria (-1.2 per cent) dragged the index lower. On the positive side, the NSE Insurance Index and NSE Industrial Goods Index were the only gainers, rising 0.10 per cent apiece.
The market depreciated further on Thursday as decline by bellwether stocks dragged the NSE ASI to close at 42,185.38.
Commenting on the performance, analysts at FSDH Merchant Bank said: “The sustained sell pressure particularly in banking sector stocks resulted in a number of stocks on offer at the lower limit. Market outlook remains positive with the possibility of a rebound as investors take advantage of low valuations.”
Also commenting, analysts at Meristem Securities Limited said: “The market mood has been predominantly bearish this week, save for the positive close on Tuesday, which was driven by the gain on Dangote Cement Plc. There were notable selloffson banking stocks as the release of positive results by some of the Tier-1 banks failed to sway investor sentiment towards the sector. We envisage some bargain hunting on some of these counters, given their relatively low prices.”
Meanwhile, investors traded 2.444 billion shares worth N36.665 billion in 26,712 deals as against 3.079 billion shares valued at N39.990 billion that exchanged hands in 23,086 deals the previous week. The Financial Services Industry led the activity chart with 2.044 billion shares valued at N26.330 billion traded in 16,788 deals, thus contributing 83.61 per cent and 71.81 per cent to the total equity turnover volume and value respectively.
The Consumer Goods Industry followed with 168.973 million shares worth N8.111 billion in 4,927 deals. The third place was occupied by Oil and Gas Industry with a turnover of 94.742 million shares worth N825.871 million in 1,641 deals.
Trading in the top three equities namely – FBN Holdings Plc, Zenith Bank Plc and
Fidelity Bank Plc accounted for 1.084 billion shares worth N17.852 billion in 7,074 deals, contributing 44.34 per cent and 48.69 per cent to the total equity turnover volume and value respectively.
Price Gainers and Losers
An analysis of the price movement chart showed that only 25 equities appreciated in price during the week, lower than 45 of the previous week, 60 equities depreciated in price, higher than 40 equities of the previous week.
Associated Bus Company Plc led the price gainers with 14.29 per cent, trailed by John Holt Plc with 12.5 per cent, while N.E.M Insurance Plc appreciated by 11.5 per cent. Cutix Plc chalked up 9.8 per cent, just as NPF Microfinance Bank Plc garnered 9.1 per cent.
Other top price gainers included: Fidson Healthcare Plc (7.1 per cent); Learn Africa Plc (5.7 per cent); First Aluminium Nigeria Plc(3.9 per cent); AXA Mansard Insurance Plc (3.8 per cent) and Morison Industries Plc (3.7 per cent).
Conversely, Japaul Oil & Marine Services Plc recorded the highest price loss of 30.9 per cent, trailed by Fidelity Bank Plc with 22.48 per cent. Unity Bank Plc went down by 21.5 per cent, while African Prudential Plc shed 20.2 per cent.
Other top price losers were: Regency Alliance Insurance Company Plc (20. Per cent); LASACO Assurance Plc (18.1 per cent); Wema Bank Plc (18.0 per cent); Thomas Wyatt Nigeria Plc (16 per cent), United Capital Plc (15.8 per cent);NASCON Allied Industries Plc(15.4 per cent).
The market capitalisation of Nigerian Stock Exchange (NSE) was reduced by N65.321 billion yesterday following the delisting of the shares of Seven-Up Bottling Company (SBC) Plc.
The shares of SBC were delisted by NSE six years after its main rival, Nigerian Bottling Company(NBC) Plc was delisted from the Nigerian bourse.
The NSE had last month approved the voluntary delisting of SBC after receiving a takeover bid from its majority shareholder, Affelka S.A aimed at restructuring the soft drinks bottler. The majority shareholder made the takeover proposal last August after the company posted losses.
Affelka held 73 per cent of the equity of SBC before it offered to completely buyout minority shares in SBC for a consideration of N112.70 per share.
While the company received a “no objection” from the Securities and Exchange Commission (SEC), the minority shareholders were expected to approve the proposal on January 11, 2018. However, few days before court-ordered meeting, Affelka raised the offer price for the acquisition of the outstanding 171,542,574 to N125. The new offer price represented a premium most of the shareholders could not resist.
Consequently, the Affelka had its way and bought out the minority shareholders. Under the scheme, shareholders were to be paid cash consideration of N125 per share as modified at the court ordered meeting.
According to the scheme “ share certificates representing the interest of the holders of the shares shall cease to be valid and that the scheme shares previously held in demutualised form shall be expunged from the respective record of the company’s shareholders maintained by the Central Securities Clearing System, CSCS. Also, upon the scheme becoming effective, the ordinary shares of the petitioner be delisted from the Daily Official List of the NSE ; or such incidental , consequential and /or supplementary orders as are necessary to ensure that the scheme be fully and effectively implemented.”
Investment analysts at Afrinvest West Africa, had advised minority the shareholders of SBC to accept the tender offer from Affelka.
According to Afrinvest, given the recent weak financial performance, historical illiquidity characterising SBC’s stock – which will possibly worsen post-acquisition – and the premium offered by Affelka relative to the current market price, they recommended investors tender their shares for the price consideration.
Meanwhile, the Nigerian bourse opened the week on a negative note as the NSE All Share Index (ASI) depreciated by 0.26 per cent to close at 43,056.51.
As part of its liquidity management system, the Central Bank of Nigeria (CBN) is expected to mop up excess liquidity from the banking sector as open market operations (OMO) bill worth N261.9 billion hit the system this week.
The central bank has been issuing secondary market treasury bills also known as OMO bills, to mop–up excess liquidity in the banking system and control inflation.
Nevertheless, in the treasury bills market, performance was mixed as rates across benchmark tenors trended lower on two of the five trading days. The trading week started on a relatively quiet note with average rate across benchmark tenors staying flat at 13.9 per cent as the CBN continued its OMO mop ups.
By Tuesday however, buying interest was recorded at the shorter end of the curve and this pulled average rate five basis points lower to 13.9 per cent. The bullish sentiment was extended till Wednesday as rates further declined nine basis points on average on account of the decision by the CBN to withhold OMO auctions on the day which spurred buying interest in short tenored instruments. This positive trend was reversed on Thursday as sell-offs were recorded across shorter tenored instruments which drove average rate 10basis points higher. But average rate closed the week at 13.9 per cent, indicating a three basis points week-on-week decline.
Despite the anticipated liquidity mop up by the banking sector regulator, analysts anticipate that rates would remain at similar levels they were last week.
Meanwhile, in the money market last week, rates trended lower on three of the five trading days despite sustained OMO mop-ups by the CBN (held on all days save for Wednesday) to maintain system liquidity.
According to analysts at Afrinvest Securities Limited, at the start of the week,the open buy back (OBB) and overnight (OVN) rates inched 1.9 percentage pointsand 2.7 percentage points higher to close at 11.7 per cent and 12.7 per cent respectively consequent on tighter system liquidity (which settled at N298.1 billion, from N919.0 billion the preceding Friday) as the CBN carried out an OMO auction in which the 94-day (offered: N50billion Sold: N0.69bn) and 277-day instruments (offered:N150bn, Sold:N89. 2bn) were offered. Also, by Tuesday, OBB and OVN rates trended higher, closing at 12.6 per centand 13.4 per cent respectively as the CBN continued its OMO mop-up, offering N50billion for the 114-day instrument (No sale) and N100 billion for the 219-day (sale of N67.7bn) bills.
In the same vein, mid-week, OBB and OVN rates trended lower to 11.3 per cent and 12.5 per cent respectively as there was no OMO mop-up conducted by the CBN. But on Thursday, OMO maturity of N113.6billion partially offset the impact of an OMO auction sale of N150 billion of the 259-day instrument; hence, system liquidity remained robust at N412.4 billion while the OBB and OVN rates declined to 9.5 per cent and 10.2 per cent respectively before closing the week at 8.5 per cent and 9.2per cent on Friday – indicative of a 1.3percentage points and 0.8 percentage points week-on-week decline.
Last week, the CBN continued with its weekly forex intervention sales by offeringa total of US$545.43 million into the forex market.
A breakdown of this showed that while in offered $210 million on Tuesday an additional injection of N335.43 million.
For the $210 million, while $100 million was earmarked for the wholesale market, $55million for small businesses and individuals, and $55 million for school fees and medical bills.
On the other hand, the $355.43 million was injected into the market through Retail Secondary Market Intervention Sales (SMIS). Figures obtained from the CBN revealed that the intervention was to meet requests in the agricultural, airlines, petroleum products and raw materials and machinery sectors.
The Bank’s acting Director, Corporate Communications Department, Mr. Isaac Okorafor confirmed the development. He reiterated that the CBN’s interventions in the market were aimed at sustaining liquidity in the market as well as boosting production and trade. He explained that with increasing accretion to the country’s reserve, the Bank was in a much better position to ensure liquidity in the inter-bank sector of the market and as such would continue to intervene in order to drive growth in the economy and guarantee stability in the market, particularly now that the economy had gained steam due to an upsurge in the non-oil sector.
The CBN Spot rate, which opened the week at N305.85/US$1.00, appreciated by five kobo to N305.80/US$1.00 on Tuesday and maintained this level till the end of the week.
Similarly, the naira remained flat at the parallel market, trading at N362.00/US$1.00 throughout the week. At the Investors’ & Exporters’ (I&E) FX Window, the NAFEX rate opened the week flat at N360.14/US$1.00 and subsequently traded within a tight band of N360.10-N360.45/US$1.00. The NAFEX rate closed at N360.08/US$1.00 on Friday, indicating asix kobo appreciation week-on-week.
Total turnover on I & E window during the week stood at $801.11 million.
In the FMDQ OTC futures market, the total value of open contracts of the Naira settled OTC futures increased by US$105 million to US$3.3 billion relative to the US$3.2billion recorded the preceding Friday,which implied a 3.3 per cent increase in market size. The APR 2018 instrument (contract price: N360.59) was the most subscribed with a total value of US$659.9million while JAN 2019 instrument (contract price: N361.94), was the least subscribed with a total value of US$45.5million.
“In line with trend, we expect the CBN to maintain its weekly interventions in theforex market, thus keeping rates at similar levels across segments,” analysts at Afrinvest stated.
Performance of the local bond market was largely flattish last week with marginal movements in yield. Average yield stood at 13.8 per cent on Monday (the same level recorded the preceding Friday).
However, it was observed that buying interest across longer tenored bonds with APR 2037 experienced the most buying interest (down 5 basis points to 13.0%). However, on Tuesday sentiment was mildly bearish as yield on 10 of 16 instruments rose, driving average yield by three basis points higher.
Analysts observed renewed investor interest at the shorter end of the curve midweek as yields on MAY 2018, JUNE 2019 and OCT 2019 bonds fell 32 basis points, 10 basis points and four basis points to 15 per cent, 14 per cent and 13.9per cent respectively.
Average yield remained at the same level till the end of the week, closing at 13.8 per cent. This implied a flat performance week-on-week.
According to Afrinvest, near term outlook for bond yields remained broadly anchored on forex market stability and inflation development.
Meanwhile, the National Bureau of Statistics is expected to release itsFebruary 2018 inflation report this week, just as analysts anticipates further moderation of inflation to 14.8 per cent in February, from 15.1 per cent in January.
“In the absence of negative inflation surprises in coming months, our yield expectation remains bullish as external sector balance stabilises further on the back of stable oil prices and robust foreign portfolio inflows,” Afrinvest added.
But performance of African sovereign Eurobonds last week was largely bearish as yield on 14 of 22 instruments advancedweek-on-week.
Despite the negative performance of the market, average yield across Senegalese instruments fell three basis points week-on-week in line with the increased appetite shown at the Eurobond issuance in the week. On Tuesday, Senegal joined other African countries – Nigeria, Egypt and Kenya – which have already issued Eurobonds in 2018. The West African country issued US$2.2 billion in two tranches – US$1.2 billion at 4.75% for a 9-year tenor and US$1 billion at 6.75% for a 29-year tenor. A total of US$10.3 billionwas received as bids signalling sustained investor interest in high yield emerging and frontier foreign currency debts as well as improving domestic macroeconomic fundamentals and remarkable stable political environment in the country. Sentiment towards Nigerian Corporate Eurobonds remained upbeat, as yield onnine of the 12 instruments declined week-on-week.
IMF’s Article IV
The Director of the International Monetary Fund (IMF) last week urged the Nigerian Senate to confirm the Monetary Policy Committee (MPC) members of the CBN as well as the Bank’s deputy governors and non-executive directors who were nominated for the positions by President Muhammadu Buhari since last year.
The fund’s directors have also emphasised the need for the Nigeria government to pursue growth‑friendly fiscal adjustment, saying it would help frontload non-oil revenue mobilisation and rationalise current expenditure in the country.
According to them, this was necessary in order to reduce Nigeria’s ratio of interest payments to revenue to a more sustainable level and create space for priority social and infrastructure spending.
The fund’s directors proffered the advice in the IMF Article IV Consultation with Nigeria, released by the executive board. The IMF, in the Article IV Consultation, also noted ongoing efforts to improve tax administration in the country, just as they underlined the need for more ambitious tax policy measures, including the reform of value‑added tax, increased excise, and rationalising tax incentives.
“The implementation of an automatic fuel price‑setting mechanism, sound cash and debt management, improved transparency in the oil sector, increased monitoring of the fiscal position of state and local governments, and substantially scaled-up social safety nets should support the adjustment,” the IMF added.
The IMF directors welcomed Nigeria’s exit from recession and the strong recovery in foreign exchange reserves, helped by rising oil prices and new foreign exchange measures. They commended the progress in implementing the Economic Recovery and Growth Plan (ERGP), including the start of a convergence in forex windows, tight monetary policy, improvements in tax administration, and significant strides in improving the business environment.
Med-View Airline Plc, the only airline listed on the Nigerian Stock Exchange (NSE), is set to pay shareholders second dividend since becoming quoted on the exchange. This follows the company’s improved performance for the year ended December 31, 2017.
According to the audited results of the company released last week, revenue grew by 41 per cent from N26.039 billion in 2016 to N36.962 billion in 2017. Operating cost rose from N21.895 billion to N30.949 billion, while gross profit stood at N6.012 billion, showing an increase of 45 per cent above N4.144 billion in 2016. Administrative expenses moved up to N4.179 billion, from N3.321 billion, while finance cost was driven by high charges on overdraft to N227 million, from N193 million.
Med-View Airline ended the year with a profit before tax of N1.506 billion, up 79 per cent from N840 million. However, higher tax of N252 million in 2017, which was an increase of 276 per cent compared with N67 million in 2016, made the profit after tax (PAT) to grow slower. Specifically, PAT rose by 62 per cent from N772 million to N1.253 billion in 2017. Based on the performance, the directors have recommended a dividend of three kobo per share.
This is the second dividend the airline would be paying, having paid the first dividend last year. The Managing Director/Chief Executive Officer of Med-View Airline Plc, Alhaji Muneer Bankole had assured the capital market community that unlike other airlines that listed on the exchange and did not pay dividend before they went under, the Med-View would create wealth for shareholders.
According to him, Med-View is a company that has been known for excellent services delivery, stressing that the service excellence would be replicated in the company dealing with investors and other market stakeholders.
He had said that the future of the aviation industry was very bright and Med-View Airline was positioning to be a leader, hence the decision to list on the NSE.
Prospects of recording more earnings and giving higher returns to shareholders brightened last December when Med-View commenced schedule flights to Jeddah .
According to Bankole, Med-View is a designated carrier for the Nigerian government on Jeddah route, noting that this recognition has made the Kingdom of Saudi Arabia to grant schedule flight operations to the airline as approved by General Authority of Civil Aviation (G.A.C.A).
“Jeddah route is highly significant to the corporate and economic standing of Med-View as this is one sector through which the company generates substantial fund particularly during Hajj operations. The flight is schedule to depart Lagos via Kaduna and Kano to Jeddah. The airline is poised to making the operation a memorable and worthwhile experience having mastered flights operation to the route over the years,” Bankole said.
The positive performance recorded by the Nigerian bourse the previous week was sustained last week on the back of positive macroeconomic fundamentals and high expectations of improved corporate results.
Having appreciated by 0.72 per cent the previous week, the Nigerian Stock Exchange (NSE) All-Share Index (ASI) extended the growth, advancing by 0.68 per cent to close at 43,167.86 last week. Similarly, market capitalisation added N104 billion to close higher at N15.508 trillion.
All other indices finished higher during the week with the exception of the NSE Premium, NSE ASeM, NSE Banking and NSE Insurance Indices that depreciated by 0.25 per cent, 1.76 per cent, 1.08 per cent and 0.74 per cent respectively.
According to analysts at Cordros Capital Limited, “As investor sentiment remains buoyed by optimism around positive macroeconomic fundamentals, and expected positive fourth quarter 2017 corporate releases, our outlook for the equities market remains positive.”
The market opened for the week on a positive note following gains recorded by Dangote Cement Plc and other bellwether stocks. As a result, the NSE ASI rose 1.49 per cent to close at 43,513.93, while market capitalisation added N229 billion to close higher at N15.6 trillion. A total of 32 stocks appreciated compared with 25 stocks that depreciated. Although the top gainers’ were mainly low capitalised stocks, gains by Dangote Cement Plc, Seplat Petroleum Development Company Plc, Unilever Nigeria Plc, Total Nigeria Plc among others boosted the performance.
Caverton Offshore Support Group Plc led the price gainers with 9.9 per cent, trailed by Japaul Oil and Maritime Plc with 9.5 per cent. First Alumium Nigeria Plc chalked up 8.8 per cent, while Seplat garnered 8.5 per cent.
Other top price gainers included: Presco Plc (7.2 per cent); Consolidated Hallmark Insurance Plc (6.9 per cent); Fidelity Bank Plc (5.0 per cent); Beta Glass Plc, Unilever Nigeria Plc and Vitafoam Nigeria Plc (4.9 per cent apiece).
Conversely, Regency Alliance Insurance Plc led the price losers with 4.5 per cent, trailed by Learn Africa Plc with 4.9 per cent, just as UNIC Diversified Holdings Plc shed 4.4 per cent. Eterna Plc and Wema Bank Plc went down by 3.9 per cent and 3.5 per cent apiece.
A look at the sectoral performance of the market showed all the sectors closed bullish. The NSE Oil & Gas Index led with 4.8 per cent, followed by the NSE Industrial Goods Index that chalked up 2.2 per cent. The NSE Insurance Index went up 0.8 per cent, just as the NSE Banking Index and NSE Consumer Goods Index closed 0.4 per cent and 0.02 per cent higher.
The market rose further on Tuesday as investors’ positive sentiments sustained the bullish trading. The index appreciated 0.22 per cent to close at 43,609.77.
According to analysts at SCM Capital, they expect a mixed market mood at tomorrow’s (today) session, while earnings scorecard expectation still remains the dominant theme in shaping investors’ sentiment.”
Tuesday’s appreciation has lifted the year-to-date growth to 14 per cent. A look at the gainers’ table showed that Unilever Nigeria Plc led with 10.1 per cent, trailed by Caverton Offshore Support Plc with 9.8 per ent. Japaul Oil and Maritime Services Plc chalked up 8.7 per cent, while A.G Leventis Nigeria Plc went up by 7.0 per cent.
Consolidated Hallmark Insurance Plc maintained recent gaining streak, garnering 6.4 per cent. After suffering significant depreciation last month, CHI shares rebounded recently as investors reacted to assurance of more returns on their investments.
Meanwhile, Regency Insurance Plc led the price losers, shedding 9.1 per cent, trailed by Multiverse Plc with 7.4 per cent. Wema Bank Plc went down by 5.0 per cent, followed by UNIC Diversified Holdings Plc with 4.7 per cent decline. Vitafoam Nigeria Plc and Sterling Bank Plc lost 4.6 per cent and 4.5 per cent in that order.
The NSE Banking Index was the only loser yesterday following losses posted by GTBank Plc (-1.7 per cent), Access Bank (-2.2 per cent ) and Sterling Bank Plc.
However, the NSE Oil & Gas Index led with 1.4 per cent gain.
The NSE Consumer Goods Index rose by 0.9 per cent, just as the NSE Insurance Index improved 0.1 per cent. The Industrial Goods Index recorded a marginal increase of 0.01 per cent.
The bullish trend was halted on Wednesday as the NSE ASI depreciated by 1.51 per cent to close at 42,952.70. The depreciation recorded in the share prices of Dangote Cement, Transcorp, Access Bank, GTBank, and Nigerian Breweries were mainly responsible for the loss recorded in the index.
“Market performance across sectors was broadly bearish with renewed sell pressure amidst weakening investors’ sentiment. The bearish sentiment is likely to remain till company results are released. This is expected to boost market activity and investor sentiment in coming sessions,” some market operators said.
In terms of sectoral performance all indices trended southwards save for the NSE Insurance Index that gained 0.4 per cent following price appreciation in Consolidated Hallmark Insurance Plc (+6.1 per cent), NEM Insurance Plc (+5.0 per cent) and Linkage Assurance Plc (+3.5 per cent).
On the negative side, the NSE Industrial Goods Index led laggards with decline of 1.8 per cent. The NSE Banking Index shed 0.9 per cent , while the NSE Consumer Goods Index shed 0.7 per cent. The NSE Oil & Gas Index closed 0.5 per cent lower.
The market rebounded on Thursday after a day decline with the NSE ASI appreciating by 0.32 per cent to close at 43,090.55. Gains recorded by FBN Holdings, Transcorp, Unilever , GTBank and Nigerian Breweries Plc were the major booster of the positive performance.
The market rose further on the fifth day, appreciating by 0.18 per cent, bringing the week-on-week growth to 0.68 per cent.
Meanwhile, investors traded a total turnover of 3.079 billion shares worth N39.990 billion in 23,086 in contrast to a total of 2.170 billion shares valued at N39.087 billion that exchanged hands in 24,657 deals the previous week.
The Financial Services Industry led the activity chart with 2.288 billion shares valued at N29.585 billion traded in 13,188 deals; thus contributing 74.30 per cent and 73.98 per cent to the total equity turnover volume and value respectively. The Oil and Gas Industry followed with 386.811 million shares worth N1.273 billion in 1,573 deals, while the third place was occupied by Consumer Goods Industry with a turnover of 205.245 million shares worth N5.803 million in 4,959 deals.
Trading in the top three equities namely – Access Bank Plc, Capital Oil Plc and Zenith Bank Plc accounted for 1.677 billion shares worth N20.413 billion in 2,476 deals, contributing 54.48 per cent and 51.05 per cent to the total equity turnover volume and value respectively.
Price Gainers and Losers
A look at the price gainers chart showed that 45 equities appreciated in price last week, higher than the 38 of the previous week, while 40 equities depreciated in price, lower than 45 equities of the previous week.
Japaul Oil & Maritime Services Plc led the price gainers with 53.9 per cent, trailed by Consolidated Hallmark Insurance Plc that rose 34.4 per cent. LASACO Assurance Plc chalked up 25.7 per cent, while Unilever Nigeria Plc went up by 20.6 per cent.
Other top price gainers included: Caverton Offshore Support Group Plc(19.9 per cent); Cadbury Nigeria Plc (18.7 per cent); ABC Transport Plc (13.5 per cent); First Aluminium Plc (13.3 per cent); Royal Exchange Plc (12.9 per cent) and A.G Leventis Nigeria Plc (12.2 per cent).
Conversely, Regency Alliance Insurance Plc led the price losers with 27.1 per cent, trailed by African Alliance Insurance Plc (13.8 per cent) and FTN Cocoa Processors Plc (13.5 per cent).
Other top price losers included: Sovereign Trust Insurance Plc (13.1 per cent); C & I Leasing Plc (9.7 per cent); United Capital Plc (9.3 per cent); Capital Oil Plc (8.3 per cent); WAPIC Insurance Plc (7.6 per cent);Multiverse Mining and Exploration Plc (7.1 per cent) and Livestock Feeds Plc (6.3 per cent).
The board of directors of Vitafoam Nigeria Plc has been advised to inject equity capital into the company via a rights issue. A shareholder of the company, Alhaji Gbadebo Olatokunbo, gave the advice at the annual general meeting (AGM) held in Lagos thursday.
According him, such funds from existing shareholders with the prudent management of the N2.1 billion loan from the Bank of Industry(BoI), will reduce finance cost and boost the bottom-line of the company.
Olatokunbo commended the company’s foresight in diversification into pre-fabricated buildings and leather products that could be exported to earn foreign exchange and enhance its revenue.
Commenting on the rights issue, Group Managing Director of Vitfaom Nigeria Plc, Mr. Taiwo Adeniyi said the advice would be looked into and the most professional decision would be taken on it at the appropriate time.
Adeniyi reviewed the unfavorable operating environment and its impacts on the manufacturing sector.
He said:”On the forex issue, unfavorable monetary policy of the federal Government led to high interest rates, devaluation of the Naira and hyper inflation which all combined to increase our production costs. With the economic recession experienced during the greater part of last financial year under review, management was mindful of price increases but as a good corporate citizen, the company could not completely pass the costs to consumers through products’ prices increases.”
In his address to the shareholders, Chairman of the company, Dr. Bamidele Makanjuola said it had completed its expansion project and has begun to consolidate for optimal performance as reflected in the current status of some subsidiaries.
“Vitapur Nigeria Limited has become a source of hope and inspiration. It has posted profit for the second year running. Our moulded foam products, Vitavisco Nigeria Limited has continued to operate profitably. It is growing slowly but steadily. Vitafoam Nigeria Limited has maintained its profit-making streak, although this was attenuated during the year by the adverse economic conditions in the country,” said Makanjuola. According to him, going the company’s performance last year, most of its subsidiaries are already operating profitably while others have strong potential to enhance its profitability.
He noted that shareholder value would be increased with expected strong earnings from the subsidiaries.
The chairman assured the shareholders that the company would revamp Vono Furniture Products, Vitagreen Nigeria Limited while strategic decision would be taken on Vitafoam Sierra Leone Limited and Vitafoam Ghana Limited respectively in view of the negative impacts of foreign exchange on their operations.
the Federal Government on Wednesday announced that it would utilise infrastructure bond instruments from financial institutions and investors to finance the development of roads and bridges across the country.
According to the government, the move will help fast-track the construction of roads nationwide and will supplement other sources of funding for road projects.
The Minister of Power, Works and Housing, Babatunde Fashola, disclosed this while playing host to institutional investors, including representatives of HSBC and different Chinese groups, who were led to the ministry by the Managing Director of Stanbic IBTC, Damola Sogunle.
Fashola, in a statement issued by the Federal Ministry of Power, Works and Housing in Abuja on Wednesday, told his guests that financing road projects through tax relief and the Islamic banking sukuk were not enough to provide the required infrastructure development in Nigeria.
He said the utilisation of infrastructure bond instruments would complement the Federal Government’s effort in providing the needed critical infrastructure to end users.
The minister also stated that there was a need for a reset in the housing sector, adding that financial establishments must stand as the vanguard for this initiative as it was being done in other countries, such as the United Kingdom.
Fashola said the pilot projects for the National Housing Programme had taken off in 33 states of the federation.
He explained that the housing project was made up of one to three-bedroom apartments, adding that the buildings would be valued accordingly, considering their respective standards and infrastructure.
According to him, the Federal Government currently holds 40 per cent stake in the power distribution companies, and urged investors in the power sector to bring in value to the industry by looking at areas where investments were actually required.
Earlier in his address, Sogunle explained that investors were interested in financing projects that would impact positively on the country’s infrastructure.
He said the visit was aimed at enabling investors in Nigeria to have information and good understanding of the activities of the ministry and the country at large in order to make proper investment decisions.
MTN Group plans to list its Nigerian unit worth $5.23bn by July in a debut Initial Public Offer on the Nigeria Stock Exchange and will raise fresh funds to reduce debt, according to pre-IPO presentation seen by Reuters.
MTN aims to raise at least $400m from the IPO to pay preference shareholders and is preparing to file application to the Securities and Exchange Commission to launch the offer after getting approvals from existing investors last week, sources with knowledge of the matter said.
Nigeria’s biggest telecoms operator plans to go on roadshow between May and June 2018, according to the presentation and list on Nigeria’s bourse between June and July. It will now need to appoint professional parties to the offer.
MTN Nigeria has around 402 million shares in issue, the same amount in preference shares, which it sold at $0.99 in 2007.
As part of the IPO it would split one share into 50 units, to create 20 billion shares, which would be listed on the bourse and set the IPO price via book building.
MTN declined to comment on the IPO, Reuters stated.
IPOs dried up in Nigeria after a 2008 crash wiped more than 60 per cent off the stock market’s capitalisation. The index has since recovered, gaining 42.3 per cent last year and 11 percent so far this year but IPOs have yet to resume.
MTN shares are currently traded over-the-counter in Nigeria at $13, giving it a market value of $5.23bn, down from $25bn in 2015 before a Nigerian government fine, sources said.
The company would use the proceeds of the share sale to redeem preference shares issued to existing investors who bought the shares 11-years ago and also cut its dollar exposure.