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Discussion Starter · #1 ·
FCMB, Consortium Partner to Create $100 Million Africa, Middle East Fund

First City Monument Bank Plc (FCMB) Nigeria and INTL Consilium LLC, Florida, USA, has entered into a partnership to launch a US $100 million hedge fund investing in Africa and the Middle East.

A statement jointly issued by FCMB and INTL Consilium said that the fund, tagged Legacy Africa Alpha Fund, will invest exclusively in Africa and Middle East debt and equity, and will be structured as an absolute return fund. The fund which will place a 30 per cent cap on its Middle Eastern weighting to ensure significant exposure to Africa's fastest growing economies would be officially launched on July 1, 2008 with $100 million under management.

Commenting on the fund, Jonathan Binder, co-portfolio manager, said, "INTL Consilium is focused on fundamental value assessed through our primary research process integrating top-down and bottom-up analysis. The new Legacy Africa Alpha Fund is a natural extension to our global products as we have been investing aggressively in the region for three years now."

"INTL already has over US$ 450 million invested in the region in both debt and equity securities in over 16 different countries as they were quick to identify value and growth opportunities at a time when many investors shied away. The Legacy Africa Alpha Fund is an exciting venture for our team, as it will allow us to leverage our existing knowledge and contacts within the region" added Charles Cassel, co-portfolio manager.

The Legacy Africa Alpha Fund offers investors a new channel to access Africa and Middle East high-return opportunities. It also increases FCMB's ability to offer a differentiated asset management proposition to its institutional and high net worth clients.

Commenting on the launch, FCMB's Managing Director/Chief Executive Officer (MD/CEO), Ladi Balogun, said: "Africa is the most exciting investor destination and is likely to remain so for the foreseeable future. We are leveraging on INTL's experience and track record of successfully managing funds for some of the most discerning international institutional investors. We bring access to rare investment opportunities, local knowledge and market insights.

25,400 Posts
Discussion Starter · #2 ·
Afribank Projects N20bn Profit

With a Profit Before Tax (PBT) of N16 billion in the 2007 financial year, Afribank is projecting additional N20 billion in the next financial year, representing an upward boost of N4 billion, the bank has said.

The immediate past Chairman of the bank Alhaji Aliyu Kola Belgore dropped the hint at a sent forth dinner held in his honour by the bank Wednesday night in Lagos.

He said when he joined the bank in 2000, the bank made a loss of N558 million and the shares was valued at N3.30 , but with the support of the board and staff, they came through consolidation and grew the share value to N36.00.

While urging the board to be united as the panacea to succeed, he attributed the bank's success under him to an efficient and cooperative board as well as supportive staff.

He warned the new management against sycophancy and also apologized to people he may have wronged while in office.

Addressing the gathering earlier, the new Chairman board of directors Osa Osunde said when Belgore joined the bank, it was a medium sized bank, but with at least $1 billion capital base, Afribank is now a mega bank.

According to him, the Belgore and other members of the board defended the franchise of the bank from predatory investors. He noted that Belgore successfully led the bank twice in 2004 and 2007 in fund raising drive at the capital market with each witnessing an over subscription.

"He resolved the protracted ownership tussle and enhanced the market competitiveness of the bank. The ban also experienced organic growth in the areas of business expansion, earnings, assets, deposits, profits and shareholder."

He said the bank's total assets are now worth over N500 billion and over N145 billion shareholders funds.

Belgore was the chairman of the bank for eight years.

25,400 Posts
Discussion Starter · #3 ·
Bourses Oppose Plan for Continental Exchange

The Johannesburg Stock Exchange's (JSE) plan to create a Pan-African trading board is meeting resistance from major continental bourses due to the fear of being edged out by Africa's largest stock market.

While pointing out that they would not prohibit firms from listing on the JSE, Nigeria has joined Kenya in showing reluctance to an alliance with the larger and more established South African stock market.

The JSE plan is an attempt to capitalise on growing interest in Africa among Western investors, but the reluctance by the biggest exchanges in the west and east of the continent may force a rethink.

Farooq Oreagba, head of strategy and new products at the Nigerian Stock Exchange, told The Financial Times that his organisation had been in "exploratory talks" with the JSE, but that both the exchange and Nigerian companies were just as interested in cultivating ties with the London Stock Exchange and others.

Nigeria has begun to vie with South Africa for commercial and political leadership of the continent, a point brought home by Mr Oreagba with the assertion that the idea of creating a pan-African exchange based on the JSE was "never going to work politically".

"We're not going to prevent anyone listing there, but to say we're going to package them and push them out there . . . there's no mileage in that. It's an admission you can't serve the interests of the companies on your own exchange."

The JSE argues that having companies listed dually on a home exchange and in South Africa could benefit the home exchange in the same way that the JSE has benefited from dual listings in London of some of its top companies, such as Old Mutual and SABMiller.

Given the reluctance of some Western investors to trade directly in Nigeria, Mr Oreagba said his exchange was focused on improving investor relations, corporate governance and its settlement and custody services.

The 200-plus companies listed in Lagos have a combined capitalisation of $100 billion, compared with the JSE's $788 billion.

The Kenyan market is less developed and not ready for dual listings or a tie-up with the JSE.

"There would be a serious danger of our market disappearing overnight," NSE chairman Jimnah Mbaru told the newspaper.

Three Kenyan companies - East African Breweries, Kenya Airways and Jubilee Holdings - cross listed in Kenya, Uganda and Tanzania with the only benefit so far being helping investors in the specific markets to avoid currency exchange risks.

The JSE has in place an African Board targeting the continent's blue chips for dual listing in a new continental trading board.

The strategy would entail migrating willing African companies with a market cap of between $21.9 million and $33 million to African Board in key exchanges across the continent.

The Africa Board believes this will help to tap new business opportunities while improving the liquidity and visibility of African stocks, but it also has to contend with nationalistic and hosting issues.

"It is a fact that many exchanges in Africa are very nascent and would fear losing their primary listings to more developed markets such as Cairo and JSE," said NSE chief executive Chris Mwebesa when the idea was mooted last month.

With the JSE's market capitalisation currently at $788 billion compared to Kenya at $24.4 billion and Nigeria's $86.5 billion, the fear by the smaller bourses may be well founded.

"It's really the rates of return that investors are looking to get from Africa. So our prime focus is to dual list top African stocks," said Nicky-Newton King, deputy chief executive officer of the JSE.

Forty-four listed firms in Kenya, Nigeria, Ghana, Zambia, Morocco and Zimbabwe are among initial cherry picks targeted by the JSE for listing on the African Board.

Even then restrictions on foreign ownership, national pride and foreign exchange control regulations are among the impediments cited by the JSE as slowing their entry into a number of economies.

While the African Board will be open to listed firms, large unlisted firms in a number of the continent's economies will also be prime candidates for listing on the board.

The JSE's interest in other African stock markets comes at a time when the continent is witnessing an upsurge in capital markets activity.

25,400 Posts
Discussion Starter · #4 ·
GTB Grows 141 Percent Profit, Declares N8.36 Billion PAT for Q1

Guaranty Trust Bank's first quarter unaudited results for Q1 May 31, 2008 financial year shows that the 17-year-old bank is well on track to meeting and surpassing the expectations of its numerous stakeholders. Drawing inference from the disclosed figures, stakeholders of the bank can be certain of another rewarding year for their investments in the financial institution.

The unaudited results, released yesterday to the Nigerian Stock Exchange, show a 87.88 per cent increase in the bank's earnings and growth in its market share. Gross Earnings for the period under review was N27.961 billion, a N13.079 billion appreciation over the N14.882 billion recorded for 2007. This significant increase in earnings can be attributed to increased customer patronage resulting from the quality of service and products offered by the bank.

Profit before tax appreciated by 141.42 per cent, with the bank reporting a N12.3 billion PBT in comparison to the N5.1 billion reported last year. The bank's N8.36 billion profit after tax for the period under review is also a 141.43 per cent appreciation over the figure reported last year.

According to financial analysts and industry watchers, the bank's first quarter results are an indication of good times for its shareholders if dividend payout for the last financial year are anything to go by. Shareholders of the bank received a gross dividend of 95 kobo per share and a-one-for-eleven bonus issue at the end of the Bank's 2007/2008 financial year. Feelers from within the organisation indicate that the Tayo Aderinokun-led management team of the bank aim to deepen the bank's market share in the ongoing year.

According to Tayo Aderinokun, Managing Director of Guaranty Trust Bank Plc, "Our score card for the 2007/2008 financial year is a reflection of our commitment to continue generating handsome returns for our shareholders despite the daunting challenges of our operating environment".

Guaranty Trust Bank's growing reputation as an international brand was reaffirmed during the year by a successful US$750 million Global Depository Receipt (GDR) offering. The listing of the GDRs on the London Stock Exchange in July 2007 made the bank the first African bank and Nigerian company to be listed on the London exchange.

25,400 Posts
Discussion Starter · #5 ·
SEC to Introduce E-Allotment Process in Capital Market

In an attempt to further dematerialise and rid the nation's capital market of problems associated with use of share certificates, the Securities and Exchange Commission (SEC) yesterday said that it has concluded plans to formerly launch e-allotment process into the market.

e-Allotment is the electronic capture of allotted shares into investors' accounts in Central Securities and Clearing System (CSCS).

The official launch which comes on the heels of the recently introduced e-dividend system will take place on July 1st, 2008 .

Sylvester O. Akele who spoke to pressmen yesterday on behalf of the commission's Managing Director, Musa Al-Farki, in Lagos, said that this signifies a departure from the age long practice where share certificates were manually issued to document shareholders' share ownership in a public quoted company.

He noted that the introduction is another remarkable achievement of the commission towards building a vibrant and robust capital market that measure up to international standard, saying that it would also contribute to the Federal Government's vision of making Nigeria one of the world's twenty largest economies by 2020.

He said that already, infrastructures are on ground to completely back the process, while reinstating the commission's total commitment to the entire process of automation of the market.

Listing the benefits of e-allotment, Akele said that apart from drastic reduction in the cost of printing the certificates and postages, it would also reduce the stress of certificate verification by shareholders.

21,675 Posts
Nigeria: Intercontinental Bank Asset Base Hits N1.7trillion

Intercontinental Bank Plc, has announced its financial results for the year ended February 2008 which shows a deposit base of N1.05 trillion, up by 126 per cent from N468 billion in the previous year. The total assets plus contingents rose to N1.7 trillion, up by 108 per cent from N823 billion, thus making the bank the first to hit trillion mark in deposit and also giving it number one position in total assets.

Financial analysts attribute the unprecedented growth in the bank’s deposits portfolio to robust customer confidence. The customer base has been on the rise since post consolidation.

The bank also recorded a phenomenal growth in gross earnings which stood at N173.5 billion, an increase of 99 per cent over the N87.4 billion recorded in the previous year. Profit before tax grew by a whopping 102 per cent to N45.6 billion, as against N22.6 billion in 2007, while profit after tax soared by 125 per cent to N34.8billion during the period under review. The capital base also rose to N200 billion from N157 billion.

The sterling performance is due largely to the effective delivery of its business model introduced in 2006 to drive its businesses across geographical and sectoral divergence of the banking public.

Intercontinental bank recently embarked upon a strategic repositioning drive to dominate retail markets across the country, leverage on its strong corporate finance business and massive market response to the bank’s consistent delivery on its brand promises to make customers happy with excellent banking services.

The Group Chief Executive, Dr. Erastus Akingbola said the exceptional performance represents a bold step in the bank’s global strategy of benchmarking the best financial institution in the international arena while positioning to become the number one bank in Nigeria among top five in Africa and top 100 in the world by 2010.

Recently, Intercontinental Bank entered into a joint venture with Blue Financial Services Company, the number one micro finance institution in Africa with 171 branches spread across ten African countries to float Blue-Intercontinental Microfinance Bank.

Analysts said the bank’s track record of superlative performance over the years puts it in good stead to achieve this target. Intercontinental Bank was ranked 355 in the world by the Financial Times of London, making it the only Nigerian Bank in the world’s top 500 banks and the second fastest growing in the world in 2007.

Dr. Akingbola said the bank is poised to surpass this record. ”We are encouraged by our drive, vision and capacity to double, year on year, all the performance indicators of the bank. We intend to beat our record and we shall”, he said.

Intercontinental Bank is one of the Nigeria’s strongest brands. Its robust brand equity has been acquired over 18 years and resonates with a reputation for excellent customer service, superb financial performance and track record of exceptionally high returns on investments since inception.

The bank has evolved into one of the largest and most diversified financial services Group in Nigeria with about ten subsidiaries in all sub-sectors of the financial sector. Intercontinental Group is made up the following: Intercontinental Wapic Insurance Plc ( a leader in the insurance industry), Intercontinental Capital Markets Limited (a major player in the investment banking sub-sector), Intercontinental Homes & Savings Limited (a major player in mortgage finance sub-sector), and Intercontinental Properties Limited which is into real estate.

It also has EBN Securities Limited and Intercontinental Finance and Investment Limited all involved in stock market business. Others are Intercontinental Trustees Limited, Intercontinental Registrars Limited and a majority stake in Associated Discount House Limited, a major operator in the top-tier money market.

Outside Nigeria the Group operates as Intercontinental Bank Ghana Limited. Intercontinental Bank (UK) Limited is set to start operation by next month.

It also boasts one of the largest branch network spread across the country, linked by cutting-edge IT infrastructure. Currently, it has over 300 branches nation-wide.

Intercontinental Bank has the most stable board of directors in the industry with all the founding members of the board still on the board today.
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25,400 Posts
Discussion Starter · #7 ·
Nigeria: Intercontinental Bank Debuts in UK

Intercontinental Bank Plc says that its subsidiary, Intercontinental Bank UK, has been licensed by the Financial Services Authority (FSA) of the United Kingdom (UK) as a full-fledged bank to offer wholesale banking services in the country.

The news is coming as Abuja, the Nigerian capital, hosts the bank to its 2008 Annual General Meeting (AGM) today.

The bank is expected to approve an additional creation of 3.5 billion ordinary shares with the aim of pushing the company's ordinary shares from 21 billion to 24.5 billion ordinary shares of 50 kobo each.

This is in addition to 1.5 billion preference shares of 50 kobo each.

The FSA, one of the strictest financial services regulatory authorities in the world, is helping realise the bank's vision to be in all continents of the world.

With 300 branches across the Nigerian federation, the bank also has a subsidiary in Ghana, Intercontinental Bank (Ghana) Plc, which was established in 2006, and now has eight branches spread across West Africa.

A statement from the bank, signed by the Head of Corporate Communications, Mr. Emeka Anaeto, said that the licence from the FSA was "a clear testimony of its strong international brand equity, financial muscle and exceptional achievements over the years."

The statement also quoted the bank's Group Chief Executive, Dr. Erastus Akingbola, as saying that the Intercontinental Bank (UK) Plc, which is located in a prestigious banking hub in the heart of London, would enable Nigerians and corporate organisations that live or have business in the UK carry out seamless financial transactions anywhere in the world, adding that the UK subsidiary will also serve as a base for further future geographic expansion.

"London will act as a strategic addition to Intercontinental Bank's global expansion drive, providing international investors with access to investment opportunities in Nigeria and across the African continent," while also offering Nigerians and other nationals in UK "an excellent international banking services," he said.

Akingbola also hinted that more subsidiaries would open soon, to exploit identified business windows in other parts of Africa, America, Europe, Middle East and the Far East.

Ranked 355th in the world (making it the only Nigerian bank in the world's top 500 banks and the second fastest growing in the world) by the Financial Times of London, analysts say the bank's track record of superlative performance over the years puts it in good stead to achieve its vision.

While the financial results for the year ended February 2008 recently published by the bank saw its deposit and asset base rising to a new industry high, its deposit base soared to N1.05 trillion, an increase of 126 per cent from N468 billion in the previous year; this is even as its total assets also recorded a quantum leap to N1.7 trillion, representing a growth of 108 per cent from N823 billion, thus making the bank the first to hit trillion mark in deposit and also giving it number one position in total assets.

The bank also recorded a phenomenal growth in gross earnings, which stood at N173.5 billion, an increase of 99 per cent over the N87.4 billion recorded in the previous year. Profit before tax grew by a whopping 102 per cent to N45.6 billion, as against N22.6 billion in 2007, while profit after tax soared by 125 per cent to N34.8 billion during the period under review. The capital base also rose to N200 billion from N157 billion.

Financial analysts attribute the growth in the bank's deposits portfolio to robust customer confidence. The customer base has been on the rise since post-consolidation.

The sterling performance was also attributed to the effective delivery of the bank's business model introduced in 2006 to drive its businesses across geographical and sectoral divergence of the banking public.

The bank recently embarked upon a strategic repositioning drive to dominate retail markets across the country, leverage on its strong corporate finance business and massive market response to the bank's consistent delivery on its brand promises to make customers happy with excellent banking services.

25,400 Posts
Discussion Starter · #8 ·
Nigeria: First Inland Bank Records 185 Percent Subscription

First Inland Bank Plc has recorded a 185.10 per cent sub-scription for the five billion units of ordinary shares of it offered for sale at N9.50 kobo during its just concluded offer.

Though initial allotment as approved by the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) shows only 69.20 per cent level of allotment for now, the apex bank is still verifying a total of 4.037 billion units of shares valued at about N38.35 billion which is expected to be considered for allotment for the bank.

According to the official announcements on the offer by the bank on Wednesday, a total of 263,848 applications for 9.254829 billion units of shares were received in connection with the offer. A total of 263,845 applications for 9.254827 units were valid under the terms of the offer.

While reacting to the development during a luncheon with newsmen, the bank hinted of its intention for a total re-branding, which will include a logo change, increased bank networking and an immense improvement in the ways the bank's staff relate to its customers.

The bank's Managing Director Okey Nwosu made this revelation in Lagos, adding that the financial institution was set to increase its branch network by at least 200 branches, with half the number to be completed before the end of the current year.

The bank's re-branding efforts, according to Nwosu will be far-reaching, and "will be reflected in the prototype branches of the bank's buildings both in their internal and external structures.

Nwosu added that the re-branding process will see the bank putting up subsidiaries outside the shores of Nigeria especially in the West African, South African and East African sub-regions, to follow businesses being taken out of the country.

25,400 Posts
Discussion Starter · #9 ·
Shareholders Endorse Intercontinental Bank's N13 Billion Capital Raise

Intercontinental Bank Plc shareholders yesterday approved the bank's proposal to raise its authorised share capital from N11.25 billion to N13 billion by way of offer for subscription at a date to be determined by the directors.

During its Annual General Meeting (AGM) yesterday at the Transcorp Hilton Hotel, Abuja, the bank also proposed to change its financial year from end of February to 31st December of every year in accordance with the directive of the Central Bank of Nigeria.

Umar Faruk, one of the shareholders introduced the share increase proposal and was unanimously endorsed by others but however cautioned on return of over subscriptions.

He said: "We will want the Initial Public Offer (IPO) to come to the Market but you have to exercise caution when coming into the market and should not be like what happened sometimes ago when we bought Dangote's shares and about six months later our money was returned to us because of over subscriptions.

"We the shareholders will want the IPO to succeed and you can do this by computerizing everything so that when you have over subscriptions you allot appropriate units to shareholders because we will not want our money return to us with lesser units."

Reading the notice of the AGM of the bank to the shareholders, the company Secretary Taiwo Ologbenla (Mrs.) said the banks passes the resolutions "that the authorised share capital of the company be increased from N11.25 billion divided into 21 billion ordinary shares of 50 kobo each to N13 billion by the creation of additional 3.5 billion ordinary shares.

"Such new shares to rank at pari-passu in every respect with the existing shares of the company thereby increasing the ordinary shares of the company to 24.5 billion ordinary shares of 50 kobo each and 1.5 billion preference shares of 50 kobo each."

Meanwhile, the Managing Director of the Bank Erastus Akingbola has advised shareholders not to sell off their shares because of the crash in the capital market but instead cash into the market.

He said: "The speculators are moving out and real owners are moving in. This is not the time to sell your shares but you should hold unto it. It is even a better time to buy."

The bank's total assets at the end of its financial year ended February 29 rose to N1.7 trillion from N823.3 billion, while its total deposit recorded grand breaking of N1.1 trillion making it the highest in the banking sector in the country.

25,400 Posts
Discussion Starter · #10 ·
Omatek Listed At NSE Floor

Omatek Computers was last week listed at the floor of the Nigerian Stock Exchange (NSE) as one of the public quoted companies whose shares would be traded openly on the floor, thus becoming the first computer company in the country to achieve the feat.

Disclosing this to journalists in Lagos Friday, the Managing Director and CEO of Omatek, Chief (Mrs.) Florence Seriki, said the company got listed at the floor after its private placement last year was highly successful.

According to Mrs. Seriki, many highly and lowly placed Nigerians home and abroad privately brought into Omatek and the performance of the company surprised every one including the NSE management.

She said the success recorded in the past years made the NSE management to list Omatek at the floor as a publicly quoted company.

Her words: " Omatek had started 21 years ago and what better gift can we ask from our dear God to mark our 21st anniversary. Today Omatek is the first computer company to be listed at the floor of the Nigerian Stock exchange.

"We are happy to achieve this and we are thankful to all our shareholders and to NSE for the confidence they repose in us. We achieved this simply because of performance in the past years and our recent transparency in the private placement. Now the shares of Omatek are being traded at the floor and we promise our old and new shareholders more high dividends."

25,400 Posts
Discussion Starter · #11 ·
APT Stock Market Scan Highlights for the Week Ended July 04, 2008

A turnover of 4.79billion shares worth N41.96billion exchanged hands in 77,286 deals during the week. The Insurance sector emerged the most active in terms of turnover volume with 2.9billion shares worth N4.4billion exchanged hands in 13,755 deals. The volume in the sector was largely driven by shares of Investment and Allied Insurance plc which accounted for 2.3billion shares representing 78.5% of the sector's turnover.

TREND: The market commenced on a strong bullish note, a continuation of the recovery initiated as the end of the previous week. The trend triggered price recovery in most equities that had experienced significant decline in prices as volume build-up was also noticed along the same path of recovery. The All-Share Index captured a major leap on Monday with a 1.90% gain and a further 1.96% gain on Tuesday. These gained injected some level of confidence as buyers exhibited stronger bullish tendencies with most sellers retracting in anticipation of a continued bullish run. Opinions were that the intensity of the trend would be sustained throughout the week, but failed as short-term profit taking was noticed Midweek. Most short-term speculators saw clear opportunities for a quick profit taking particularly in the banking and Insurance sectors, the major beneficiaries of the latest recovery. At the close of trading on Wednesday, it became glaring that the bullish trend wouldn't be sustained; the intensity dropped significantly with the Index pulling only 0.47%. With the statistics tilting downwards, Thursday and Friday ignited a movement southwards as most sellers renewed their sales mandates as volume on supply increased significantly. In a bid to exit the market before a reversal takes effect, sellers forced prices southwards as statistics captured a 1.60% and 1.70% decline in the Index on Thursday and Friday respectively. Thus the market witnessed a week price swing with 75 equities recording appreciation in share prices as against 38 equities capturing price depreciation. Consequently, by the close of trading on Friday, the market had gained over N160billion in shareholder value representing a 1% rise in the NSE all-share Index.

A sectorial analysis shows a general recovery in most of the major sectors. The banking and insurance sub-sectors benefited with most equities in the sector recovering an average 10-15%. The petroleum marketing & Agriculture sectors exhibited fair stability. The Conglomerate, Building material and Food/beverages sectors were also not left out with an average 5% recovery. By and large, speculative activities contributed substantially to this swing. Buyers were noticed retracting as sellers were notice desperate to exit. Declining Share holder value has been halted in the interim with a likelihood of a reversal southward drive as captured by the move in the All-Share Index up to close at 55,456.58points on Friday.

LIKELY TREND FOR JULY 07, 2008: Generally, the market has in the last one month been characterized by significant swings; increased volatility as recovery and subsequent reversals has driven activities with no clear sustained trend in the last four weeks. Shareholder value has continued to dwindle with most investors recording substantial losses. Buyer apathy has trailed any slight recovery as sellers are always eager to take profits; recovery has in the recent past been shorter than expected with prolonged price declines. Some market analyst have opined that the hitherto liquidity squeeze may not even be the major reason for the prolonged bearish trend rather, investor confidence. As the uncertainty surrounding the recapitalization drive of capital market operators has been put on halt, this may gradually initiate the require confidence to ensure a sustained recovery. For this recovery to be sustained, investors' confidence must keep waxing stronger so as to halt the movement of funds from the capital market to the money market by most fund managers whose portfolios have been reporting consistent losses. With the further clarification by CBN on lending to Capital market Investors/Operators, we are optimistic this will gradually enhance liquidity in the market.

Thus with a strong recovery at the beginning of the previous week, and a subsequent reversal after midweek, this is likely to trigger the market further southwards with the likelihood of increased in fluxed of sellers and the retracting position of buyers. Nevertheless, the last recovery saw the influx of funds into the market which is good for the market. As short-term speculator renew their credit lines and with more Government spending, we are optimistic that liquidity position is likely to improve and at such a gradual recovery being envisaged.

The banking and insurance sub-sectors are expected to suffer from profit taking early in the week with stability after midweek, this is because the sectors have always enjoyed the patronage of speculators, and coupled with the fact that most of the sectors' equity have recorded significant price recovery in the last one week attractive for profit taking. The petroleum marketing, Agriculture, Building material sectors are likely to weaken. The Construction and brewery sectors should sustain their current form while stability is expected in the Food/beverages sector after midweek.

Market statistic captured a significant weakness in the bullish charge with decreasing intensity, indicating the likelihood of the recovery drive being reversing in the coming week. Secondly, a good number of equities had experienced appreciation in price to levels where attraction to profit taking is gathering momentum. Thus the week is likely to be bearish up till midweek with stability afterwards.

25,400 Posts
Discussion Starter · #12 ·
Trading On NSE Hit $17.91 Billion in 2007

Director General of the Securities and Exchange Commission (SEC),Mr. Musa Al-Faki, has said that the value of trading on the Nigerian Stock Exxhange (NSE) grew remarkably from N225.8billion (U$1.71billion) in 2004 to 2.09trillion ($17.9million in 2007.

The DG made this known yesterday in Abuja at the national conference on financing the seven-point agenda through the Capital Market.

According to him, economic indices show that the real GDP growth averaged 7.3 per cent over the last four years while the IMF's World Economic Outlook predicts a 9 per cent growth for Nigeria in 2008.

"The exchange rate has stabilised while inflation rate remains within single digit. The country now prides itself with a relatively strong banking sector a robust capital market", he stressed.

As one of the organisers, the DG expressed the belief that the capital market will continue to play its role as the engine of growth for the Nigerian economy. "It is in line with this objective that we have put in efforts and resources to support the laudable seven-point agenda of this administration", he added.

He continued, "In 2007, new equities reached N1.34trillion, which was well in excess of the aggregate issues from 1981 to 2006 which stood at N1.04trillion. Value of trading on the NSE also grew remarkably from N225.8billion ($1.771billion) in 2004 to N2.09trillion ($17.91billion) in 2007.

"More remarkable was the growth of market capitalisation from N2.11trillion ($15.96billion) in 2004 to N13.294trillion ($114.3billion) by December, 2007. Market capitalisation as a percentage o GDP also rose significantly from 18.5 per cent to about 50 per cent in 2008.

Meanwhile, the Chairman of the Board of SEC, Senator Udoma Udo Udoma, acknowledged that the capital market has been used to foster the growth and development of the advanced economies. "This is because it is a particularly suitable source of funding for capital intensive projects that have long gestation periods", he stated.

According to Udoma, "It is for this reason, amongst others, that we believe that the capital market has the potential to play a major role in the growth and development of our country, Nigeria."

25,400 Posts
Discussion Starter · #15 ·
Market Capitalization Hits N13 Trillion

Capital market capitalization in the Nigerian Stock Market has reached N13.294 trillion, the Director General of the Securities and Exchange Commission (SEC) said yesterday in Abuja.

Musa Al-Faki said this at the opening of a two-day conference on financing the 7-point Agenda of the federal government through the capital market at the Transcorp Hilton Hotel. The conference ends today.

He said the market capitalization grew from N2.11 trillion in 2004 to N13.294 trillion.

Because of the growth in the capital market, he said the market will provide the platform for "mobilization of investments into critical areas of the 7-point Agenda."

In 2007, he said new equities reached N1.34 trillion "which was well in excess of the aggregate issues from 1981 to 2006 which stood at N1.04 trillion".

He also said the value of trading on the Nigerian Stock Exchange has grew from N225.8 billion in 2004 to N2.09 trillion in 2007.

Because of the robust market situation, the SEC boss said the 7-point agenda will be financed mostly through the capital market.

He said: "A number of topical issues around the 7-point agenda have been identified and will be discussed by local and international experts who are expected to share their experiences. It is hoped that the interactions and conclusions will assist in proffering best strategies for utilizing the market to finance the laudable programmes of the present administration.

"This conference is therefore the beginning of this process. In this regard, Nigeria will need massive investment in infrastructure over the next couple of years. These investments are expected to come through Public Private Partnership (PPP) initiative."

According to him, in achieving the 7-point agenda, the capital market will play its role as the engine of growth for the economy.

The Director General, Nigerian Stock Exchange (NSE) Ndi Okereke-Onyiuke in her remarks said the private sector have agreed to help the government achieve the 7-point agenda because "the government cannot do it alone."

She said: "We in the Nigerian Stock Exchange believe that the 7-point agenda will be better financed through the capital market because there can never be any meaningful improvement in the economy without the capital market.

"We have developed a lot of securities in the market to implement the 7-point agenda and this constitutes issuing bonds and securities where money can be raised through the capital market."

25,400 Posts
Discussion Starter · #16 ·
Bears Bounce Back, Deflate Market Indices By 0.99 Percent

A bearish trend was recorded on Monday on the Nigerian Stock Exchange (NSE), as the performance indices, the All-share index and market capitalisation both depreciated by 0.99 per cent each.

Particularly, the index which opened at 55,456.58 points dropped by 548.58 basis points to close at 54,908.50 points while the capitalisation closed at N10.77 trillion from N10.88 trillion at which it opened.

The drop in the market indices was brought about as a result of losses on the share prices of blue chip companies, with Chevron Oil Nigeria Plc recording the highest share price loss, dropping by N17.39 to close at N338.10 per share from N355.49 per share at which it opened, Lafarge Cement WAPCO Plc followed with a loss of N2.61 to close at N50.40 per share and Ashaka Cement Plc dipped by N1.86 to close at N40.80 per share.

Other share price losers include: Dangote Sugar Refinery Plc N1.69, Dangote Flour Mills Plc N1.20, BankPHB Plc N1.17, UAC Nigeria Plc N1.01, United Bank for Africa Plc N0.84, Intercontinental Bank Plc N0.80, Oceanic Bank International Plc N0.80 among others.

Conversely, Guinness Nigeria Plc recorded the highest share price gain, rising by N4.99 to close at N128.00 per share from N123.01 per share at which it opened, followed by Ecobank Transnational Incorporated with a gain of N1.83 to close at N38.61 per share and Eterna Oil and Gas Plc garnered N1.36 to close at N30.97 per share.

Other share price gainers include: Flour Mills Nigeria Plc N0.60, Cement Company of Northern Nigeria Plc N0.59, Prestige Assurance Plc N0.57, Incar Plc N044, University Press Plc N0.42, Afribank Nigeria Plc N0.39, Nigerian Wire and Cable Plc N0.37 among others.

Equity trading depreciated by 16.95 per cent, as a turnover of 984.55 million shares valued at N7.61 billion was recorded 15,498 deals, in contrast to Friday's turnover of 1.18 billion shares valued at N6.57 billion in 18,446 deals.

The Insurance sub-sector recorded the highest patronage, accounting for 60.17 per cent of the market turnover with 592.45 million shares valued at N762.3 million in 3,337 deals. Investment and Allied Assurance Plc continued domination of trading activity in the sub-sector, with a turnover of 495.97 million shares valued at N411.96 million in 1,121 deals, followed by Regency Alliance Insurance Plc with the exchange of 21.87 million shares valued at N51.82 million in 155 deals and Custodian and Allied Insurance Plc recorded 10.24 million shares valued at N56.54 million in 178 deals.

The Banking sub-sector followed on the sectorial analysis, accounting for 31.7 per cent of the market turnover with 312.1 million shares valued at N4.83 billion in 6,496 deals. Fidelity Bank Plc recorded the highest transaction in the sub-sector, trading 132.20 million shares valued at N1.32 billion in 322 deals, followed by First Inland Bank Plc with the exchange of 64.32 million shares valued at N521.66 million in 121 deals and United Bank for Africa Plc recorded 20.58 million shares valued at N684.19 million in 641 deals

681 Posts
Presidency directs Soludo to re-present naira redenomination

Presidency directs Soludo to re-present naira redenomination
…Approves FS 2020
Wednesday, July 9, 2008

After nearly a year after its suspension, the Strategic Agenda for the Naira mooted by the Central Bank of Nigeria (CBN) may now get the approval of the Federal Government.

The CBN policy intended to restructure the naira by dropping two zeros to the left from the currency and issuing more coin denominations was greeted with criticisms, which led to its suspension by the Federal Government.

Femi Fani-Kayode

Photo: Sun News Publishing

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Daily Sun, however, exclusively learnt “all things being equal the CBN Governor, Prof. Chukwuma Soludo had been given the green light to re-present the Naira redenomination policy.

A top source at the presidency said the new development followed a successful defence of the Financial System Stragegy FSS 2020 policy by Soludo recently in Aso Rock.

“The presidency called Soludo to defend the feasibility of the FSS 2020 policy based on objections raised by the economic team. Soludo came well-prepared for the defence and all questions pertaining to its feasibility were well answered,” the source said.

He continued: “But the head of the economic team, that is Dr. Shamsudeen Usman and Economic Adviser to the president, Senator Sanusi Daggash disagreed sharply with Soludo on the grounds that the reality of what is on ground cannot support FSS 2020, and they even went on to describe it as Soludo’s dream. By the time the duo finished with their presentation it was clear that they were not in support of the FSS2020 dream.”

The source further revealed that both Usman and Daggash argued that Soludo was only trying to make Lagos the economic capital of Nigeria again through the FSS 2020 policy and that President Umaru Yar’Adua’s seven-point agenda could handle all that was in FSS 2020.

Minister of State for Finance, Mr Remi Babalola, however, had a contrary view, arguing that the CBN boss’ presentation gave the administration a clear focus of where the country was heading to and how it could get there. “Every macroeconomic indices supplied by the CBN governor are verifiable and supported by the international community,” he reportedly stressed, adding that the FSS 2020 policy was “workable and feasible.”

Following the submissions, President Yar’Adua was said to have given a nod to the FSS 2020, directing the CBN governor to re-present naira redenomination, which is a key aspect of the FSS 2020 document.”

The CBN had bowed to the Federal Government’s suspending the redenomination of the naira.

In a press statement personally signed by the governor, Prof. Soludo, the CBN stated that it had agreed to suspend with immediate effect the redenomination of the naira, which was the soul of its “Strategic Agenda for the Naira.”

According to the statement, the board of the CBN recognized and affirmed President Umaru Yar’Adua as the approving authority in matters relating to the denomination, form and design of the national currency as enshrined in Section 19 of the CBN Act, 2007.

The CBN said it remained committed to President Yar’Adua and his goal of making Nigeria one of the 20 largest economies in the world by the year 2020. The apex bank which recognized the patriotism of the president said it was ready and committed to do all within its powers to accelerate the president’s agenda for a stronger economy.

25,400 Posts
Discussion Starter · #18 ·
Equities Traded Rise to 1.554 Billion

Equities traded on the floor of the Nigerian Stock Exchange (NSE) rose to 1,554,709,458 worth N12.917 billion in 19,276 deals on Wednesday. This was against the previous day's trading in which N1,459,738,215 shares were exchanged for N8.236 billion in 18, 702 deals.

The market capitalization dropped to N10.839 trillion while All-share-Index also dropped to54,601.91 points

Insurance sub sector was the most active sector on the floor of the trading, measured in volume as 1,018,048,347 billion shares were traded for N1.132 billion in 3,622 deals.On Tuesday, the Insurance sub sector, again was the most active on the floor on Tuesday, measured in volume, with 1,088,467,918 million shares valued at N1.114 billion in 3,419 deals.

Intercontinental shares drive the sector with over 1,626 billion shares worth N5.499 billion in 9,304 deals

Activity in the Investment and Allied Insurance's stock drive the market as investors offered N826.040 million for 929,722,908 million shares in 1,567 deals. Activity in the insurance firm shares on Tuesday drove the market as over 1,008,790,578 billion shares of the company were traded at N829.957 billion recorded in 1,232 deals.

The banking sector followed with 423,864,093 million shares worth N10.418 billion was traded in 9,304 deals This was against the previous day dealings in which a total of 286,786,336 million shares worth N5.951 billion in 8,646 deals were recorded.

On Tuesday equities traded on the floor of the Nigerian Stock Exchange (NSE) rose by 475,187,961 million shares to close at N1,459,738,215 billion shares valued at N8.236 billion in 18, 702 deals. This was against a turnover of 984,550,254 million shares worth N7.608 billion in 15,498 deals was recorded on the floor of the market on Monday.

The market had closed on Friday with 757,048,006 million valued at N7.978 billion recorded in 17,048 deals.

The Insurance sub sector, again was the most active on the floor on Tuesday, measured in volume, with 1,088,467,918 million shares valued at N1.114 billion in 3,419 deals. This was at variance with what was recorded in the market in the previous day's trading. On Monday, the Insurance sub sector was the most active on the floor with a turnover of 592,452,921 million shares worth N762.296 billion, exchanged by investors in 3,337 deals.

5,047 Posts

LAGOS, July 10 (Reuters) - The U.S. Export-Import Bank has raised its credit facility to Nigeria's Intercontinental Bank Plc INBK.LG to $100 million from $27 million, the Lagos-based bank said on Thursday.

Several Nigerian banks have obtained credit facilities from foreign financiers since the conclusion of sector reforms in 2005 that forced 89 mostly weak institutions to fuse into 24 stronger groups.

Ex-Im Bank said in June it raised its Nigerian bank facility to $1 billion from $405 million due to soaring demand for long-term financing for infrastructure and transport projects in the country.

Intercontinental is among about 14 banks benefiting from the facility, which previously allowed for quick processing of only short and medium-term insurance and guarantee transactions of U.S. imports to Africa's top oil producer.

Ex-Im Bank vice president for trade and insurance, Jeffery Abramson, said the increase was in recognition of Intercontinental's active facility utilisation and financial performance, the Nigerian bank said in a statement.

Its credit lines from international financial institutions were in excess of $400 million, including $40 million from the International Finance Corp, it said.

Intercontinental, whose foreign holders include venture capital firm Vectis Capital and South Africa's Rand Merchant Bank, is one of the Nigeria's top five banks by assets.

Last month it reported a 124 percent jump in aftertax profit to 34.7 billion naira ($295 million) for the year ended February on the back of strong asset growth.

The bank, which has about 300 branches in Nigeria and a unit in Ghana, was recently granted a licence by Britain's Financial Services Authority to operate as a full-fledged bank offering wholesale banking services in the United Kingdom.

The 74-year-old Ex-Im Bank is the official export-credit agency of the United States. It authorised more than $433.5 million to support export of U.S. goods and services to sub-Saharan Africa last year. (Reporting by Tume Ahemba; Editing by Nick Tattersall/Jeffrey Benkoe

25,400 Posts
Discussion Starter · #20 ·
Guinness Shareholders Okay Increase in Share Capital to N1.750 Billion

Shareholders of Guinness Nigeria Plc have unanimously approved the proposed recommendation of its Board of Directors to increase its authorised share capital to N1.750 billion from N1.250 billion.

Consequently, the shareholders at the Extraordinary General Meeting (EGM) held in Lagos, last week, endorsed the creation of additional 500 million ordinary shares of 50 kobo each.

Also shareholders smiled home with a special divided that was proposed by the Board of Directors and approved by the shareholders present at the meeting.

Specifically, a total of N10, 029,493, 529 special dividends, translating to N6.80 on each 50 kobo shares held by shareholders, was distributed to them.

The Chairman of Guinness Nigeria Plc, Chief Ralph Alabi, stated that the Board for sometime now, has been considering how best to use its accumulating cash surplus.

According to him, "following a detailed review of future cash needs carried out by the company, the Board decided that surplus is not required for ongoing business needs as future cash flows show that these can be met easily without recourse to these funds."

Having the interest of shareholders in mind, Alabi reiterated that the Board decided that the best use for the cash in the reserves was to return part of it to shareholders for them to decide how best to use the funds in line with individual investment preferences and needs.

Explaining further, he said: "With the strident calls for the return of surplus capital to the shareholders at the last Annual General Meeting (AGM), the company's directors made commitment to carefully consider this request from shareholders at the appropriate time in line with normal practice. The resolution for the approval of a special dividend is in fulfillment of that commitment".

The shareholders at the meeting unanimously commended the Board and Management for their proactiveness and initiatives for the growth of the company.

According to them, "We want other companies to copy this practice because it gives shareholders succour and heighten our interest in the company".

It would be recalled at the presentation of the company's Facts Behind its last financial year end figure, Director- General of the Nigerian Stock Exchange (NSE), Professor Ndi Okereke-Onyiuke appealed to the company to make its shares, which was considered scarce, public, and readily available since it is one of the most sought on the Exchange.

As at today, 74 per cent of the authorised share capital of the company has been issued.
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