The Chairman, Association of Stockbroking Houses of Nigeria, Chief Patrick Ezeagu, says the nation’s capital market holds good prospects for investors, despite the downturn being experienced. Ezeagu, while speaking at the association’s 9th Annual General Meeting in Lagos, expressed optimism that the fundamentals of the market remained strong with good prospects for investors, even though the operating environment was tough. He said he was convinced that there was a positive outlook for the market in the near term given the sustained rise in oil prices, stable foreign exchange rate and availability of forex. He stated that the association had come of age and that some initiatives had been put in place to strengthen the advocacy functions in line with the operational philosophy. Accord
A new industry survey has revealed that over N8bn in unpaid fees by advertisers, many of whom are multinational companies, are currently hampering smooth operations of some media outfits and advertising agencies. According to the survey and economic intelligence research conducted by Marketing Edge, the huge media debt profile of the client companies has been creating some operational challenges for the media, especially those in the out-of-home advertising, electronic and print media. The report noted that relevant stakeholders promised last year to address the challenge of media debt in brand management and management of brand business in Nigeria. It stated that while the advertising agencies and media outfits had fulfilled their own part of the contractual agreements by executing ...
Statistics are seldom ever both cheery and grim. But the National Bureau of Statistics’ (NBS) recent report that Nigeria’s Pension Fund Asset in the second quarter currently stands at N8.232 trillion – up from the N7.943 trillion recorded in the first quarter – is one such. It was cheery as it offers a strong hint of just how successful the contributory pension scheme has been. But its grimness is not immediately deducible. It lies rather in our collective bitter reckoning as we ponder what might have been had states in the federation fully embraced the scheme since its launch in 2004. The result is that pension bills continue to rise annually in every state as more civil servants join the rank of retirees, putting an extra burden on their resources and, indeed, causing many states (
The Nigerian stock market opened the week on a negative note as market participation weakened on Monday, causing both the volume and value of trades to decline by 43.72 per cent and 57.08 per cent, respectively. The market capitalisation of stocks listed on the Nigerian Stock Exchange dropped from N11.849tn on Friday to N11.833tn on Monday, while the All-Share Index declined by 0.13 per cent close at 32,413 basis points. Fidson Healthcare Plc led 17 losers on Monday, having seen its share price decline by 10 per cent to close at N5.40. Other laggards on the chart were Wapic Insurance Plc, UACN Property Development Company Plc, Lafarge Africa Plc and Unilever Nigeria Plc. Wapic saw its share price drop by 9.09 per cent to close at N0.40, while UPDC’s share price declined by eight p
Prof. Ishaq Akintola, the Director of Muslim Rights Concern (MURIC), an NGO, has urged the Central Bank of Nigeria (CBN) to enforce the ban on sale of new naira notes at parties. Akintola, who made the plea in Lagos on Monday, said that the hawkers were aiding and abetting “spraying” of money at parties. “MURIC calls the attention of the CBN to those who sell new naira notes. They are the ones who aid and abet spraying at parties. “The Police should be empowered to seize such money and return it to government treasury. Those who desecrate the naira deserve punishment. “Emphasis should be placed on imprisonment for spraying at parties. There should be no option of fine. “By doing this, we can save the society from materialism and moral decadence,’’ he said in a statement. Akintola als
An economist at Bloomberg Africa, Mark Bohlund, has said the Nigerian capital market is unlikely to record any positive performance after the 2019 elections if key issues in the economy are not addressed. Bohlund, who spoke on the sidelines of the NSE-Bloomberg CEO Roundtable conference in Lagos on Tuesday, noted that the diversification from oil revenue had proceeded quite slowly under the President Muhammadu Buhari administration. He noted that changes in the oil price directly impacted on market performance, stressing that failure to diversify from oil might have serious adverse effects on the capital market and the economy as a whole.He said, “Personally, I am not optimistic that the dependence on oil will change after the elections or even in the next four years. However, on market
Renewed sell off in the shares of many highly capitalised negatively impacted transactions on the Nigerian Stock Exchange (NSE) yesterday, as market capitalisation dropped by N10 billion. Yesterday, the All-Share Index (ASI) shed 27.26 absolute points, representing a decline of 0.08 per cent to close at 32,417.70 points. Also, the market capitalisation declined by N10 billion to close at N11.835 trillion. The downturn was impacted by losses recorded in medium and large capitalised stocks, amongst which are; Unilever Nigeria, Nigerian Breweries, International Breweries, Northern Nigeria Flour Mills (NNFM) and Presco. Analysts at Afrinvest Limited said: “We anticipate a rebound in today’s trading, as we saw significant buy interest in banking stocks yesterday, which we expect to be sus
The inaction surrounding the commencement of derivatives trading has been attributed to low liquidity and assessed instability bedevilling the nation’s stock market. An Exchange Traded Derivative (ETD) is merely a contract that derives its value from an underlying asset that is listed on a trading exchange and guaranteed against default through a clearinghouse. A member of the Chartered Institute of Stockbrokers’ Conference Committee, Akeem Oyewale, said despite efforts by the regulators to roll out trading in derivatives, there is still lethargic action by the market players due to market instability and low liquidity. “Securities and Exchange Commission (SEC) and Nigerian Stock Exchange (NSE) have tried to introduce this to the market. There is still that lethargic action by the ma
Eterna Plc, an integrated energy company that manufactures, markets and distributes lubricants, supplies chemicals, trades in crude oil among other services, is to issue N10 billion 270-day commercial paper (CP). In a notification to the Nigerian Stock Exchange (NSE), yesterday, Eterna Plc said the funds raised would be used for working capital and general corporate purposes. CPs, which are unsecured promissory notes with a fixed maturity of about nine months are issued by companies to raise money to meet short term finance obligations. The notes are backed by the promise of the issuers to repay based on certain agreed terms. They present a cost-effective and stable means of sourcing scarce capital as against to bank loans and provide investors avenue to diversify their portfol
The performance of three sectors, on Monday, dragged the market capitalisation of equities listed on the Nigerian Stock Exchange higher by N22.56bn. The market capitalisation rose from N11.822tn on Friday to N11.844tn on Monday, as three out of five sectors closed on a positive note. The insurance index gained the most as price appreciation in NEM Insurance Plc and Mutual Benefit Assurance Plc drove the index 0.8 per cent higher. The banking and consumer goods indices rose by 0.4 per cent and 0.1 per cent, respectively, as a result of bargain hunting in Zenith Bank Plc, Guaranty Trust Bank Plc, Nigerian Breweries Plc and Honeywell Flour Mills Plc. The oil and gas index closed flat as losses in Eterna Plc were offset by gains in Conoil Plc, while the industrial index remained unchange...