HENATES

At the Nigerian stock exchange today Wednesday April 26, it was weight pulling of sorts as Dangote Cement dragged All shares index down despite an active day and at Nairobi it was gentle easing after super Tuesday. NIGERIAN STOCK EXCHANGE At the Nigerian stock exchange, the ASI ended 0.77% down at 25620.94 after yesterday's 0.28% rally as pulled by 2.93% drop in premium index to 1600.56 and 1.17% decrease in industrial index to 1717.26. This was in spite of the fact that gainers (24 in all) outnumbered losers above 2:1 as losers were only 10. It was also 1.18% rise in oil and gas index; 0.56% increase in main board index amidst price gains by banks and manufacturers like PZ Cussons, Flour Mills, Dangote Sugar and Okomu Oil. The premium index dropped too inspite of gains by two of the three equities in this elite segment of the market alas because heavyweight Dangote Cement went down N6 per share or by 3.64% to led day Naira losers. This occurred as it recorded 52 deals for 372,709 ...

NIGERIA: TRANSCORP GETS NEW CEO. From June 1, this year Mr Emmanuel N Nnorom will retire as the president/CEO of Transnational Corporation of Nigeria and be replaced by Mr Adim Jibunoh. According Transcorp's group company secretary, Helen Iwuchukwu,  the new CEO is currently the group business development director in charge of group non- financial activities. He is a first class economics graduate of the University of Port Harcourt with a Masters in business administration from the University of Lagos. He will bring to bear on his new job above three decades experience that spanned stints as executive director, Standard Trust Bank; and CEO Continental Trust Bank. He is currently a non executive director of United Capital PLC, Avon HMO and Transcorp Hotels PLC. KENYA: TWO KCB GROUP IRECTORS RETIRE. KCB Group Holdings Ltd  on Monday announced the retirement of three directors from the board of the group. According to group company secretary, Joseph Kania, they are General (Rtd) Josep...

So, Nigeria was in recession in 2016 and things were pretty difficult? Well, not for companies like Dangote Sugar Refinery PLC. The year turned out to be so sweet for Dangote Sugar that even shareholders have a right to wonder if it could be true. Dangote Sugar had changed its year end to December from September so 2016 was really a 15 month one, hard to compare with 12 month. 2015. But as it turned out there was no basis for comparing them because performance in 2016 was beyond comparison. For example, in the 15 month 2016, total revenue at N105,765.3m was more than double the 2015 mark. Yet, for a 15 month period, cost of sale grew by only 75.4% to N76417.6m thus allowing gross profit to hit N29347.7m compared to 12 month 2015's N4468.1m. Down the line from there, everything came in the superlative package of high growth in inflow and low growth in outflow with the exception of Other income which increased by only 17.4% to N1382.5m. According to the p...

NAIROBI SECURITIES EXCHANGE It was indeed superlative Tuesday today April 25 at the Nairobi securities exchange as traded volume and value more than doubled and number of deals almost doubled although All shares index dropped by 0.7%. At the bond market too, it was super topping of yesterday's value growth with traded value rising by 76.4% to giddy 3331.5m Ksh. The leaps recorded in the equity market occurred as top volume deals in relatively priced equities combined with trading activity in higher priced ones. Traded value in particular rose by 177.5% to 863.5m Ksh principally as fairly high priced KCB group recorded deals for 7.347m units at between 30 and 32.5 Ksh per share and Equity Group Holdings too, though down 5 Kenyan cents, had deals for 5.738m shares at 33.25 Ksh per share. And so, with fellow banking sector equity, Diamond Trust bank also having sealed deals for 256,000 units at high priced 125 (up 4.16%), the banking sector ended up contributing 468m Ksh or 54.2% to t...

According to the first quarter unaudited results released by Forte Oil PLC last week, the company is now balanced on three strong legs in the face of what year 2017 has to offer. These are more efficient of costs; relative liquidity and gains from selling foreign exchange. Of the three, forex gain seems to be more manifest because amidst an almost total dry up other income sources of yore, it held sway by closing the quarter at N499.9m compared to N16.3m same time 2015. The 2017 shock for Forte Oil was that most of 2015 source of support virtually dried up: Nothing was earned from crude oil lifting contract; throughput income dived by 82.1% to N26.7m; freight income came to N61.7m, down 63.3% leaving 10.6% growth in rental income to N41.6m the lone support by forex gain feat of finally keeping resultant drop in other income to only 16.4% or to N647.9m. But take a closer look at the figures, ready manifestation does not displace a more fundamental leg which FO now stands: Cost control. ...

It was clearly a bullish Monday  April 24 at the Nigerian stock exchange but not quite so at Nairobi securities exchange even though All shares index also ended up. NIGERIAN STOCK EXCHANGE At the Nigerian stock exchange, All shares index closed rather strongly today by 2.21% to 25747.05 as combined leaps in industrial, premium and banking indices were recorded. The industrial index closed 6.3% up at 1732.58 followed by 3.4% and 3.01% respectively in Premium and industrial indices to 1651.78 and 276.18 as all premium equities gained including Dangote Cement; as cluster of bank gains occurred and as Nestle turned to be the one major loser weighty enough to pull in the opposite direction. The industrial index lead leap was inevitable as La Farge Africa led % gains with 10.24% but lagged behind Dangote Cement in terms of Naira which gained N6 per share as against N4.71 per share. Adding to the shove in industrial index was 7up Bottling's N4 per share gain which amounted to 4.45%. There...

From the audited figures for the year 2016 released by Fidelity Bank PLC recently, it was a year noted more for its checkmates except in one area: personnel cost. In the first, place gross earnings grew by 3.45% to N152021m as a result if two checkmates. The first was that interest income increased by 1.65% to N123153m but interest expense promptly deflated most of its benefits by growing by 1.54% to N61225m. Then fee and commission had a year high income growth of 19.3% to N20557m but again, it was overwhelmed by 34.3% increase in fee and commission expense to N3238m. Then even the elbow grip called checkmate turned into something else as operating income went down by 2.83% to N8311m; operating expense rose by 7.89% to N35662m and loss from financial instruments more than doubled to N625m. As for impairment charges, growing by only 50.4% to N8671m in a recession year looked encouraging but then, place it alongside only 24.2% growth in loans and advances to N718401m, some of the encour...

Kenya's Deacon East Africa ltd ended financial year 2016 bottomless in the loss league, in sharp contrast to 2015 finish and here's how. First there was a 3.11% drop in sales to 2309.1m Ksh which was accompanied by 1.62% increase in cost producing the goods sold to 1295.2m Ksh. The end result was that gross profit which is the foundation for each year good home run, went down 8.56% to 1013.9m Ksh. Second, income from other sources either dried up or decreased significantly. Agreed, it was difficult replicating 2015's asset disposal profit of 64.9m Ksh, share of profit from associated companies also dried up. Then, to worsen matters, income from other sources declined by 67.7% to just 16.1m Ksh thus helping total income to drop by 8.88% to 2325.2m Ksh. Finally, the last nail was driven in by  leakages that grew even faster as new expenses surfaced in 2016; as good old administration cost increased and as net foreign gain in 2015 turned into loss in 2016. Administration expen...

This April 22 instalment of events features some of the events billed for next month, May 2017.  It will be updated and expanded periodically. SEC NIGERIA CAPITAL MARKET COMMITTEE MEETING. The first Capital Market Committee meeting of the security and exchange commission of Nigeria comes up May 9, 2017. Venue: Federal Palace Hotel Victoria Island. Admission: By invitation and membership. Related follow up: Interactive session with the media 10/5/2017. Venue: SEC Zonal office Victoria Island. EUROMONEY CONFERENCE NAIROBI, KENYA. This conference sponsored by the Central Bank of Kenya comes up May 9, 2017. Theme: To focus on regional development of digital business and financial inclusion ecosystem in Kenya and Africa. Participants: From across the continent mainly high level policy makers, business leaders and financiers  STANDARD CHARTERED BANK KENYA AGM Kenya's Standard Chartered Bank ltd holds its Annual general meeting on May 25, 2017. Venue: Safari Park Hotel, Thika Road Nairobi...

From next Monday, April 24, investors and exporters of goods in Nigeria will have their own dedicated window through which to access foreign exchange and even sell. According to a circular from the Director Financial Markets, Central Bank of Nigeria, Dr Alvan Ikoku, the apex decided to open this new window for more timely execution and settlement of eligible transactions of investors and exporters. Thus, explained, Dr Ikoku, the transactions to be settled through this window are loan repayment, interest payment, dividend remittances, capital repartriation; management services fees and Consultancy fees. Others are software subscription fees, technology transfer agreement obligations; personal home remittances and any other such transactions except airline ticket sales remittance. Bills for collection are also eligible for the new window. The CBN anticipates supply of forex for the window to come mainly from portfolio investors and exporters; authorised dealers and other parties with for...

Do you buy and sell shares of quoted companies solely because of potential dividend income?  If yes, then be careful while considering 89 companies quoted on the Nigerian stock exchange that have not paid dividend since 2015, as at Friday, April 21 2017. Of this number, it is possible that 18 of them that last declared and paid dividend in 2015 could be excused because many companies are yet to get approvals from external auditors and relevant regulatory bodies overseeing for 2016 annual report. However, of the 89, a total of 71 companies have not declared or paid dividend since 2014, according to information from official list of the Nigerian stock exchange as at yesterday, Friday April 21. The list of 89 includes 15 from amongst insurance; 6 banks; 6 emerging market equities; five each from paints manufacturers; and food processing. Others include four each from computer solutions and savings and loans and three each from healthcare and printing and publishing. A total of seven have ...

The only thing Africa's two NSEs shared in common today April 21, 2017 was that All share indices dropped but activity was clearly a case of different strokes. NIGERIAN STOCK EXCHANGE At the Nigerian stock exchange, today April 21, ASI went down 0.37% to 25189.37 after Thursday's 0.19% drop but traded volume and deals sealed increased by 16% to 171.6m units and 10.4% to 2846 respectively. Once again, there was no major offload but a scattered shower of fairly large parcels from different segments of the equity market. FCMB Group led volume with 5th ranked 125 deals for 35.5m shares accompanied by 1% price decrease. It was followed by Transcorp PLC with equally 2nd placed 208 deals for 33.27m units that led to 4.30% price gain which sat well at the rare of above 4% gainers. At 3rd place in terms of volume was Flour Mills of Nigeria in which 15.5m shares changed hands in 33 deals without a change in price per share. Two other equities closed the day with deals above 10m units: Di...

To many Africans, Africa is green enough and need not worry about being green. They look around their immediate environment, see the expanse of green forests and wonder if any thing or place can be greener. The answer, of course is yes, no place canbe greener than the natural rain forest still abound in Africa romanced each day by the rising sun and gentle breeze and sometimes, wild storm when the rains do decide to pour down. But of course, unknown to these few people, what they view and inhale is offered only in some parts of African; desert Africa is crying for trees with which to hold back the growing expanding sand dunes; city Africa is choking under the overhang of daily polluted air and fast growing population and inadequate public governance is leading to crowding; scramble for few working and reliable public facilities be it energy supply, water supply or good network for moving men, materials and information. What they also don't see are the rivers and creeks in o...

On April 20, the third day of trading after the Easter holidays, traded volume dropped further at both the Nigerian stock exchange and Nairobi Securities exchange. NIGERIAN STOCK EXCHANGE At the Nigerian stock exchange the drop at 40.3% to 147.8m units, was well ahead of the 38.5% decrease reported on Wednesday. This was due mainly to any exceptional offload in any equity or more particularly, any offload in a quoted bank or finance related company as was the lifting norm for a while now. Top volume was reported in Transnational Corporation in which 3rd placed 179 deals were sealed for 28m units after gaining N0.04 per share or 4.49% on opening price. This was followed by Diamond Bank's 6th placed 127 deals for 24.977m shares again like Transcorp, after gaining 4.71% or N0.04 per share. In all only four equities closed the day with deals for above 10m units each: The other two being 3rd ranked 13.8m units of FCMB sold in 74 deals ranked outside the top ten deals. FCMB also ended ga...

Compared to yesterday when the All shares indices eased in both African NSEs, today April 19 closed with ASI rally although activity indicators went in opposite directions between the markets. NIGERIAN STOCK EXCHANGE At the Nigerian stock ASI easily rose by 0.49% to 25331.77 as most of the 13 losers were lightweight, Dangote Cement did not counter premium index rise this time around and traded volume grew. The main trust for the rally, though came from the banking sector where 5 out of 7 recorded gains as Diamond bank led the sector to pace volume. In the end, banking index rose rather strongly by 3.93% to 270.91 followed by 1.11% rally in pension index to 824.23. There we're 15  gainers led, in terms of % by Transcorp which closed 8.54% up with 2nd placed 216 deals for 3rd ranked 28.384m units. This however, represented N0.17 per share gain, no where near Nestlé's leading and ASI tilting N21.93 per share gain or 3.01% for 23 deals involving only 24,960 shares. Three other equi...

KENYA: MARSHALLS (EAST AFRICA) LTD If all goes as planned, by this time two months hence, Marshalls (East Africa) ltd will be finally delisted from the Nairobi Securuties Exchange voluntarily. The process has been on for a while and has indeed been approved by Kenya's Capital Markets Authority. It remains for shareholders to pass a formal resolution on at an annual general meeting billed for May 8. As required by Kenyan laws, a formal circular letter has been sent to all shareholders about the meeting and the pending all important resolution. Those who may not be able to attend have until May 6 to submit their proxy forms and formal announcement on the final resolution will be made on May 9. Meanwhile, for minority shareholders who may not be interested in being part of a delisted Marshalls, the majority stakeholder, Global Ltd will throw open an offer to buy such holdings at 10.75 Ksh per share later in May to close June 7, 2017. Marshalls is being delisted voluntarily to make roo...

For veteran cement manufacturer, LA Farge Africa PLC, financial year 2016 was indeed a nightmare but happily, it found a strange good Samaritan in the tax collector. The bare fact was this: According to audited report for the year released recently, La Farge almost made as much loss in 2016 as it made as profit before tax in 2015. It was like leaping from a height of N29286.8m profit in 2015 to a sudden pit of N22818.7m loss in 2016. Within  12 months!. The audited report reveal so many trying developments like 16.1% decrease in total income to N227232.6m as core revenue dropped by 17.8% to N219,714.1m; other operating income grew by only 1.26% to N3842.2m leaving finance income's 44.9% increase alone to raise hopes. Even then, the raised hopes were dashed almost imnediately because despite the decline in core revenue, associated cost of sale rose by 15.8% to N179052.4m. This resulted in 50.3% dive in gross profit to N40661.7m. Hence, even though administration cost was depressed b...

Even though it was a year gross prenium insured grew by only 1.41% to 13244.9m Ksh, that final net premium earned rose by 5.58% to 12,686.8m Ksh must have given hopes of a happy ending for Kenya Reinsurance ltd in 2016 but unfortunately tbis was not realised. Why? Simple, management grip slipped within the year such that in the end, Kenya Re settled for 6.56% decrease in profit to 4218.1m Ksh, not increase. This was despite 5.40% drop in net claims to 6680.5m ksh; despite great leap in investment income to 3079.3m ksh and in spite of 7.6% increase in share of associated companies profit; and 11.5% rise fair value gain The main issue was that as a reflection of slipped grip, bad debts provision took wings to land at 665m Ksh and operating expenses rose by 38.9% to 1832.4m Ksh. Agreed, that Other income dropped by 78.1% to only 54.3m Ksh and tbat acquisition costs rose by 6.83% to 3635.3m Ksh may not be solely due to slipped grip but the some total of it all was that from an estimated 24...

Trading closed at the two African NSEs Nigerian stock exchange and Nairobi securities exchange with All shares indices tumbling apace sort as Dangote Cement (Nigerian) and KCB Group ( Nairobi) flexed muscles. NIGERIAN STOCK EXCHANGE At the Nigerian stock exchange FBN Holdings had led % gainers with 5% lift for day high 236 deals for 3rd placed 20.66m units. Fellow premium heavyweight, Zenith bank had also gained 0.56% for 2nd placed 221 deals involving 10.85m shares. But both gains were not weighty enough to sway premium index into increase. Instead, the index went down 1.78% because Dangote Cement, the only other equity in the premium segment, dropped by 2.44% to record 24 deals for 524,537 shares. Indeed, aided by 17 other losers led by Fidelity bank down 9.09% and helped greatly by Nestle losing N21.93 per share or 2.92%, eventually All shares index dropped by 1.19% to 25207.03 after last thursday's rally. Among the other equities that helped ASI down were Ecobank Transnational ...

At the Nigerian stock exchange as at close of business last Thursday, April 13, a total of 19 quoted equities  can be ranked the least traded ones in the market. Seven of them have not recorded any deal since this year and we are in April; two no deals since January; three no deals since February and another seven no deals since March. Among the seven with zero deals since this year, none in fact had recorded any deal in years. Leading the pack was Ikeja Hotels PLC in which the last transaction was on November 9, 2006 ( that is almost 11 years ago). The transaction was for 10,000 units at N1.80 per share. MTech Communications PLC was next. The last deal on it was in November 2009 although it was for a fairly large parcel of 499,998units at N0.91 per share. Also showcasing years without any deals was Goldlink Insurance PLC in which the last deal sealed was at N0.50 per share for 499,000 shares in November 2012; that is five years ago approximately. All these equities are quoted on the m...

NIGERIA: AXA MANSARD TO INVEST IN HOSPITAL. AXA Mansard Insurance PLC is presently having consultations with International Finance Corporation on plans to co-invest along side other companies in an integrated hospital project According to a notice signed by its company secretary, Omowunmi Adewusi, the project is to be called Greenfield integrated medical facility. It will comprise a multi specialty hospital and two 10-bed primary healthcare centres/polyclinics. "Once approved" declared Adewusi, the project "will be manakged and operated by Health share Health Solutions ltd," with headquarters in South Africa. However, talks are still preliminary and the boards of both the IFC and AXA Mansard are yet to pass any formal result ions on it. UBA PLC At the next Annual General meeting of UBA PLC the issue of the legality of the meeting itself will be the number item to be resolved. This is because, says company secretary, Bili Odum, the legally required 2...

NIGERIA: FIDELITY BANK Proposed: 14 kobo per share Qualification: 13/4/2017 Closure: 18-21/4/2017 Payment: 4/5/2017 AGM:       4/5/2017 Venue: Shell hall, Muson centre , Onikan. MEDVIEW AIRLINES Proposed: 3kobo per share Qualification: 28/4/2017 Closure:   2-5/5/2017 AGM:      17/5/2017 Venue: To be advised Payment:  ,29/5/2017 OKOMU OIL Proposed:  150k per share Qualification: 15/5/2017 Closure:  16-19/5/2017 Payment:  27/6/2017 AGM:  23/6/2017 Venue: To be advised. KENYA: NATION MEDIA Dividend: 7.50 Ksh per share Closure:  9/6/2017 Payment: 31/7/2017 UMEME LTD Dividend: 7.80 Ksh per share Closure: 20/6/2017 Payment:  5/7/2017

No fewer than 18. quoted companies have sort extension of filing date for 2016 annual report with the Nigerian stock exchange so far this month. This was in an attempt to stay within quotation rules that demand such filing within 90 days after the year end. Most of these reports were thus due at most by March 30 and so, they sort to explain the reason for the delay or even ask for more time. The reasons given by most of the 18 companies who either filed late or asked for extension can be grouped into three categories. The first were those handicapped by inability to obtain waiver from the Financial Reporting Council for authorised signatories to sign the report. Ashaka Cement; Tantalizers; Nahco Advance; Unity Capital; Arbico and Secure Electronic found themselves in these group. According to letters written mostly by their company secretaries, they needed to obtain waiver from the FRC so as to enable, in most cases, the audit committee chairman sign his committee's portion. The se...

Newly quoted Medview Airlines had what looked a very active 2016 but you know? It also had so many mouths wide open to snatch juicy bits out of earnings. Together they actually amounted to Shylock of sorts demanding pound of flesh. According to the audited figures released recently Medview's total income almost doubled (85.4%) to N26,250.6m as core revenue grew by 84.1% to N25,962.5m and other income ended 177.9% up at N176.2m. Nice foundation for equally resounding growth in profit? Wrong. For starters, Medview ended with only 19.7% increase in gross profit to N4067.2m and worse, only 1.10% rise in profit before tax for the year. Wide open mouths to feed, had the real lion share. First cost of sale increased by 104.6% to N21,895.3m thus deflating gross profit's tyres  They included 109.9% rise in fuel costs to N8097.7m; 130% increase in handling charges to N1158.5m; 140% hike in catering expenses to N985.4m and 141.2% jump in overflight charges to N686.5m. Don't say waoh y...

The Central Bank of Nigeria (CBN) has called proposals to connect its three data centres and 18 locations throughout the country through Wide area network (WAN). Proposals can be submitted by single providers or multiple providers but they must have certified knowledge; verifiable capacity and experience in telecommunications. According to a public notice posted on its website since April 11, the contracts have been dividend into three lots. Lot one involves one leased line (1Mbps- 4Mbps) from 38 locations across the country to CBN's three data centres in Abuja and Lagos; one leased 1Mbps line to link Bauchi, Enugu and Kano branches to their clinics and 1Gbps fibre link from data centre 1 in Abuja to centre 3, Lagos. Lot two involves linking 38 locations to the 3 data centres; fibre link from data centre 2 to 3 and clinic to branch links. Interested organisations are free to bid for lots one and two but they will only win one lot. Lot 3 of the proposed contract has to d...

Do you know that from June 30 this year, no physical dividend warrants will be issued to investors in the Nigerian capital market? Then note this: The Securities and Exchange Commission of Nigeria has created a platform through which you can check your own e-dividend registration status. Posted on its website since yesterday April 13, the notice asks investors to click on a link to unregistered investors to find out if their name appears on the list. If your name appears, SEC Nigeria advises you to go to the nearest branch of your bank or the registrar of the company you invested in to obtain and fill e-dividend registration form to get registered. This will not only ensure that from June 30, your dividends from companies you invested in will be paid directly into your choice account but also ensure that whatever is due to you based on any transactions on your behalf by brokers is promptly paid in too. What's more, get registered now and avoid paying money to get register...

At Africa's two NSEs Thursday April 14, Fidelity Bank and Safaricom set very relatively high pace for traded volume that closing volume more than tripled at Nairobi Securities exchange to 89.3m shares and increased by 41% to 349.278m units at the Nigerian stock exchange. NIGERIAN STOCK EXCHANGE At the Nigerian stock exchange it was the third consecutive day of Fidelity Bank offload pace setting the equities market. This time however, 112.26m shares were offloaded in Fidelity Bank and continued investors interest led to equally day high 365 deals but like for Wednesday this did not repeat Tuesday's simultaneous d top % price increase. Fidelity Bank ended the day 0.99% up at N1.02 per share. Although, alone tge offload could not driven total volume that high without support from three other equities with deals for above 30m units each. The Fidelity lead was followed by FBN Holdings with 2nd placed 256 deals for also 2nd ranked 62.432m units at marginal 0.31% up per shar...