HENATES

Today, May 31, 2017, All shares index closed up at both the Nigerian stock exchange (same direction since last week) and Nairobi securities exchange but Nairobi was accompanied with very strong rally in activities while at the Nigerian market, there was a marked slump. NIGERIAN STOCK EXCHANGE: Once again, today at the Nigerian stock exchange, the ASI closed up by 0.76% 29498.31 thus surpassing yesterday's 0.66 % growth but trading activity headed down in sharp contrast. The ASI had risen this time as Dangote Cement led Naira gainers with N7.90 per share gain or 4.53%; supported by other heavy weights like Nigerian Breweries which gained N3.50 per share or 2.40%; Nestle Nigeria which closed up by N5.01 per share or 0.58% and Total Nigeria with N5.00 gain per share or 1.92%. Hence premium index closed 3.24% up at 1913.44; industrial index rose by 2.08% and consumer index came to 733.84, up 1.49%. Only Total Nigeria could not swing oil and gas index to the positive because fel...

Presently, MRS Oil Nigeria Plc is deep in a waiting game that can test the patience of many: It is hoping and praying that the Nigerian government will soon pay backlog of petrol subsidy owed to petroleum marketers; it is hoping that the present fortunes of the downstream sector of the oil and gas industry will change and waiting too, though not quite seen as such, for the day its shareholders and executives will together appreciate the need to suspend dividend payment help build up working capital. However, on all counts, it is a waiting game that could be threatening and ill advised. Firstly, even though crude oil prices have behaved better in recent months with renewed OPEC and some other major crude producers common page view, the Buhari administration is not in a position yet to pay up subsidy backlog. It needs all the money it can raise to stay atop of its political promises with all eyes now fixed on 2019 elections; to steer budget 2017 on course and to pay. amongst others, ...

The Nigerian Stock Exchange (NSE) will on Friday June 6, 2017, in conjunction with Bloomberg, organise the 3rd annual CEO Roundtable at the NSE Events Centre, Lagos this time with the theme: Innovating out of Nigeria's recession. According to the NSE, it is a roundtable intended to bring together economists, top government officials and chief executive officers to address Nigerian resource dependency and alignment of the economic recovery plan and road map to insulated the economy from the shocks of resource dependency. Attendance shall be by prior registration on line with welcome address to the delivered by NSE CEO, Oscar N Onyema; followed keynote address and an opening address by Selloua Chakri, Head Market Strucuture strategy, Bloomberg LP. The tune for the day's discussion shall be set by Dr Doyin Salami, Associate professor, Lagos Business school with panel discussion  and question and answer session thereafter. Formal registration at the Roundtable will be betwe...

The all shares indices for the Nigerian stock exchange and Nairobi securities exchange closed 0.66% in opposite directions on Tuesday, May 30, 2016. NIGERIAN STOCK EXCHANGE At the Nigerian stock exchange, the ASI increase was accompanied by continued upwards movement in activities especially traded value  and volume that recovered rather strongly on the previous trading day. Traded volume in creased by 14.7% to 832.5m while traded value rose by 32.8% to N7.59bn. The rise in ASI had slowed down compared to Friday trading but it still represented a top up that led to new high of 29,276.59. At that level, banking index (up 2.13%); Insurance index (1.97% up), NSE 30 (plus 0.89%) and premium index (up by 0.85%) were ahead while drag came from Oil and gas index which dropped by 2.01% to 302.76, Lotus index which rose by only 0.10% and consumer index which grew by 0.33%. Traded value climbed further up on the back of GTB, mainly and Zenith bank. In GTB, 3rd placed 516 deals were...

If first quarter figures to March 2017, are anything to go by, then Kenyan banks, unlike Nigerian ones, do not fear for avalanche of bad debts this year but, they may have to grapple with decrease in earnings. Henates is privy to first quarter results from six quoted Kenyan banks or groups with banks as flagship subsidiary. They are KCB Group, Equity Group, NIC Bank;  Diamond Trust bank; Barclays bank and Standard chartered bank. A study of these results revealed decreased provision for loan loss in all but one; decline in gross earnings in all, again but one and interestingly, profit margin decline and increase in equal number. The loner with increased loan loss provision was Standard Chartered bank (SCB) which increased it bad debt provision by 6.04%. However, not only is not comparable to growths recorded by Nigerian banks in recent times, it was in fact in lieu of 6.46% increase in its loans and advances when compared to first quarter of 2016. Of the six banks, though, ...

Today May 26 2017, the Nigerian stock market closed the trading week strongly bullish and active but at the Kenya stock market it was slightly a different story especially in terms in trading activity. NIGERIAN STOCK EXCHANGE Friday May 26 was certainly a good and bullish end to a week that was consistently upbeat day by day with All shares index (ASI) closing up strongly by 2.1% to hit a new high of 29064.52. It was driven by even stronger 4.46% rise in banking index to 361.97; 3.12% growth in premium index to 1837.87; 3.05% increase in the pension index to 1010.10 thus crossing 1000 threshold and 2.17% top up by NSE index to 1337.60. None of the sectoral indices recorded drops, not even the Oil and gas index despite Mobil oil's lead of Naira and %gainers with N14.98 per share price decline or 5%. Despite too Total Nigeria marginal price drop by 0.02%. It only made the index close marginally up on a bullish Friday. The banking index growth was propelled by cluster of gains by many...

Trading in both stock markets in Nigeria and Kenya was upbeat May 25 confirming 3rd day in Nigeria and rally in Kenya. NIGERIAN STOCK EXCHANGE At the Nigerian stock exchange, the only activity indicator that ended down was number of deals dropping by 5.96% to 3944. Traded volume closed the day up by 51% to 418.9m; traded value rose by 43.5% to N4.96bn and All shares index increased by 0.65% to 28467.61. Traded value driven by deals recorded in GTB (mainly) and Stanbic IBTC which together accounted for 51.1%. GTB paced the market the most recording day high 315 deals for 2nd ranked 51.86m shares valued at top ranked N1.735bn. It also closed the day N1 per share up, like Stanbic IBTC, 2nd placed Naira gain. On the other hand, Stanbic IBTC had less investor interest( 63deals); for less offload (30.77m units) ranked 4th worth 2nd placed N800m. In all 8 eqiities recorded deals for above N100m value and together they accounted for 91.2% of the traded value, talk of being top heavy. Trailing ...

Trading and dealers expectations were up beat today, May 24 at both the Nigerian stock exchange but only as indicated by all shares index growth at Nairobi securities exchange. NIGERIAN STOCK EXCHANGE; At the Nigerian stock exchange, it was a day of rally for all market indicators as All shares Index confirmed the previous day's very marginal growth with a higher 0.68% increase to 28,288,43. This was as a result of rally in all sectoral indices even if marginal in all cases except banking and except in ASEM index that closed firm as usual and Lotus index that dropped by 0,09% to 1812,08. Banking index rose by 1.47% to 340.75 but it was closely followed by premium index which closed 0.9% up at 1775.45. Traded value too was upbeat rising by 58.6% to N3.45bn just like traded volume that rose by 46,4% to 311.276m and number of deals that clocked 4194, up 7.32%. Zenith bank paced the market in both traded value and volume as 2nd ranked 367 deals were sealed  for 94.78m units w...

There was a significant drop in the inflow of capital into Nigeria in the first quarter of this year compared to the closing 4th quarter of 2016. According to the National Bureau of Statistics, in its 1st quarter capital importation released today, May 24 2017, capital importation (CI) into Nigeria was $908.27m, down 41.3% on 2016 4 quarter but up 27.5% on 1st quarter of 2016. The report shows confirms again that foreign investors now prefer to give loans as against direct investment. Other investment sub heading accounted for $383.28m or 42.2% of the total captal imported. This represented a drop from its 2016 1st quarter share of 58.3% and an increase on its share in the 1st quarter of 2016. The significant development was that Other investment has always been dominated by loans as against foreign direct capital. In the 1st quarter, it accounted for 96.35% of Other capital imported. However, portfolio investment rose 10.34% to $313.61m in the 1st quarter to make up 34.53% of ...

May 23 2017 witnessed recovery of trading activities at the Nairobi Securities exchange but at the Nigerian stock exchange, it dropped further. NIGERIAN STOCK EXCHANGE. At the Nigerian stock exchange All shares index ASI recovered marginally by 0.05% to 28093.30 after Monday's 0.12% drop but the more remarkable thing was that traded value dropped once again by 41.5% to N2.18bn and traded volume went down 30.5% to 21.6m units. This means that after hitting a high of sorts May 18, 2017 at N9.162bn, traded value continued down since then dropping by 76.2% in three trading days. What is more, three high priced equities were responsible for 57.8% of the traded value while 6 equities accounted for 53.6% of traded volume. Leading the pack in traded value was Seplat Petroleum in which 35 deals for 1.548m shares were traded at price down 3.41% worth N576.5m. It was trailed by GTB which witnessed 4th placed 248 deals for equally 4th ranked 14.29m units at price up 0.415 worth N458....

UNITED BANK FOR AFRICA PLC TO RAISE $500m United Bank for Africa (UBA) yesterday formally announced its plans to raise $500m through Eurobond unsecured medium term notes to be listed on the Irish stock exchange. According to company secretary, Bill A Odum, the plan already has go ahead from the Central bank Of Nigeria and the Securities and Exchange Commission. The net proceeds of the issue will be paid into UBA's foreign currency dormicilliary account and only converted into Naira if and when situation warrants the bank to. Hence, there will be no certificate of capital importation (CCI) for the money except any part of it the bank decides to convert into Naira eventually. Consequently too, the loan will be repaid and serviced without recourse to the Nigerian inter bank  foreign exchange market unless condition makes the bank's foreign reserves inadequate to meet these obligations as they occur in future. In such cases, a formal approval of the CBN will be sort to ac...

According to latest statistics released by the National Bureau of statistics yesterday, May 23, Nigeria's real gross domestic product (GDP) dropped by 0.52% in the first quarter of this year. However, this is good news of sorts because it represents the lowest % drop since 2016 first quarter and thus represents a confirmation of the slow recovery discernible in the 4th quarter when it dropped by 1.73% compared to 3rd quarter's minus 2.34%. The real downswing had started in the 4th quarter of 2015 when 2.11% growth was recorded, which represented a slide from 2.84% growth in the 2015 3rd quarter. Before then, it had opened 1st quarter 2015 with 3.96% growth before going down to 2.35% growth by 2nd quarter, hence the 2015 3rd figure represented a higher growth rate compared to 2nd quarter. It was from the 2015 marginal growth, the economy entered the road to real recession as real GDP dropped by 0.67% by 2016 first quarter. It dropped again by 1.49% in the following quarter...

Vitafoam Nigeria plc appears to be lying comfortably on a good foam so far this financial year, if half year figures to March 2017 are anything to go by. According to the figures released earlier this month, even though cost growth seemed out of proportion in the second quarter, by half year the company seemed set for a fine outing come year end September 2017. At 31.2%, total income growth to N10640m was good enough although dragged down slightly from the 31.3% growth to N10567.4m by core income. The interim cause for concern were the 42.4% increase in cost of sale to N7802.9m, that is well ahead of growth in core income it generated; 21.2% increase in finance income to N524.1m even though growth rate was behind income growth and the drag that resulted from only 20.2% rise in Other income to N73.1m since it did not match core income growth. But Vitafoam had going for it the greater control it had over non direct cost resulting in 8.07% drop in administration expenses to N1623....

The Central Bank of Nigeria (CBN) after being inundated with inquiries and complaints, has formally come out with a list of some 36 items you can access foreign exchange officially and import. They are items the public and official agencies were not sure could be imported and have been making repeated inquiries. In a circular dated May 17 addressed to authorised dealers; the customs service and the public;  signed by W. D Gotring, Director Trade and exchange department, the CBN assured that the items were valid for foreign exchange and so should be given allocation when requested. Of the 36 items, 7 covered coated and uncoated, paper; in rolls, paper board and kraft paper. They were all mentioned from group 5 to group 11. Also featuring prominently were some items specifically for the pharmaceutical manufacturing industry. These items were mentioned in 8 groups and covered other plates; sheets, film, foil and strip of polymers; hygienic or pharmaceutical hardware; glass in ba...

At the Nigerian stock exchange and Nairobi securities exchange today May 22, 2017, trading closed down even though All shares index rose more strongly by 0.98% to 139.46 at Nairobi and resumed cautious drop by 0.12% at the Nigerian one. NIGERIAN STOCK EXCHANGE; At the Nigerian stock exchange, all trading indicators closed down. Traded value declined by 30.8% to N3.738bn; traveded volume went down by 31.9% to 208.3m units and deals struck dropped by 14.7% to 3498 from 4100 previously. Traded value was dominated by four equities that together accounted for about 74.4%. Top of the bill was N1.113bn worth traded in Seplat Petroleum in 88 deals for 3.17m shares at day high Naira gain in price of N5.20 per share or just 1.41% up. It was followed by GTB in which 2nd ranked 336 deals were recorded for equally 3rd placed 22.1m units for a total worth of N708.45m; Zenith bank with day high 348 deals for 2nd ranked 29.857m shares at a price down 1.60%  for total worth of N534.05m and ...

In the financial year to March 2017, there was clearly no smooth sailing safari trip for Kenya's telecommunication model, Safaricom ltd. It has always been and was a matter of cash. So much cash flows in and so much flows out just as fast that a relax cruise is always out of the question. For example, in the year under review, according to audited figures signed by board chairman Nicolas Nganga and released earlier this month, total income of the company grew by 20.3% to 217,097.2m Ksh yet Safaricom still ended with doubled working capital deficit. The deficit rose to 29bn Ksh from 14.bn despite so much cash generated from operations, 16.5bn Ksh in borrowed funds, and 13.5% drop in receivables. The main reason was that with customers number increasing by 11.8% to 28.13m, says the chair, Safari com had to invest some 37.7bn Ksh within the period on its 2G; 3G and 4G networks and roll out more fibre cables mainly bringing total investment in network upgrade since inception to 344.08...

Trading at Africa's two NSEs today May 19, 2017 was marked by sharp drop in traded value at the Nigerian stock exchange and strong rally at Nairobi securities exchange. NIGERIAN STOCK EXCHANGE At the Nigerian stock exchange, traded value ended the week down by 41.1% to N5.399bn from Thursday's N9.16bn mostly as the major high priced equities that traded high volumes on Thursday recorded far less. On Thursday, traded value was led by Seplat Petreoluem with N3.369bn followed by Nigerian Breweries  with N1.6bn and Zenith bank with N1.12bn. Thus, between the three, they accounted for 66.6% of traded value. Come Friday, Mat 19, 6 top equities could only account for 56.3% of the day's traded value. They were led by Dangote Cement in which 108 deals for 6.02m shares changed hands at a price down N0.01 per share worth day high N981.1m. Dangote Cement was not among Thursday's top value contributors. GTB was responsible for N634m traded value on Thursday and turned to b...

NIGERIA: NEW NCR CEO A new country manager/CEO has been appointed for NCR Nigeria in the person of Mr N Anumihe. According to the company secretary, Olufunke Hussain, the replaced Mr Ahmed Abdel Aziz Hamada who resigned effectively by April 28 after three years on the job. Anumihe is a graduate of computer science University of Nigeria Nsukka with years of experience gathered in banking and information technology. In the course of his career he worked with Citibank, Ivory Merchant bank and Intercontinental bank. He also worked with IBM, Oracle, Dell and Misya helping to establish many of them in Nigeria. He took over the NCR CEO from May 12, this year. NAHCO CEO RESIGNS The managing/CEO of National Cargo Handling co PLC (NAHCO) Mr Norbert Bielderman, has given three months notice of his intention to resign his appointment. According to NAHCO corporate communications and services manager, Tayo Ajakaye, the outgoing CEO joined the company in May 2010; was appointed executive director, op...

Today. May 17 2017, only the All shares indices ended up in reverse gear at the N igerian stock exchange while market activity indicators did the same at Nairobi Securities exchange. NIGERIAN STOCK EXCHANGE At the Nigerian stock exchange the ASI grew by strong 1.05% to 27900.44 thus reversing the 2.4% drop on Tuesday as if the bears had taken over again for a while. A total of 23 gainers as against 16 rather weak gaibers on Wednesday thus pointed to a change of gear . Leading the gainers in % terms was Oando back at the top here with 9.90% rise but this equated with only N0.77 top up per share. Day high Naira gain and so, the major swinger of the ASI rise was high priced and resultant heavyweight Nestle Nigeria up N24.94 per share or 3.12%  with closing 47 deals for 292,980 units. it was followed by another heavyweight Nigerian Breweries which closed up by N3 per share or 2.07%  with 8th ranked 122 deals for 2.71m shares. NB was trailed in Naira terms by GTB's N1.20 per share or 4....

Currently, there is playing out in Kenya as in the suddenly changed fortunes of Kenya's Atlas African Industries ltd, what happens when fiscal policies and development clash. In December 2015, the directors of ATI had convinced shareholders to approve ambitious plans to tap opportunities in neighbouring Ethiopia through the establishment of a glass factory in Addis Ababa to produce 105m glass bottles. The market was solid because bottles used there were imported and in fact an MOU had been signed with a major beer brewer in Ethiopia for offtake once it meets expected standards and the price was right. Through a subsidiary set up in Ethiopia TEAP Glass PLC, 100 year lease on the site was acquired; and a leading Ethiopian firm was contracted to do the feasibility study, do all the required designs and quantity survey and, of course, about $5m was raised from existing and new shareholders for the project tagged 'The Chancho project'. Naturally the Ethiopian government ...

The Nigerian stock exchange will on Saturday July 1, this year organise a race to raise money in support of cancer prevention, diagnosis and treatment in Nigeria. According to press release today issued by the NSE, it is the 4th annual NSE Corporate challenge tagged "Erace Cancer 2.0" . As an annual highly competitive and fun filled 5km walk, jog and run competition, it is designed to raise awareness and money for the purchase of 37 mobile cancer centres (MCCs) at $613,000 each. According to the NSE's acting head, Corporate services, Ms Pai Gamde, the MCCs "conduct community outreach for screening and treatment of ...caner" while the competition provides "holistic approach towards raising awareness about cancer". The competition is open to individuals; all dealing members, listed and unlisted companies, government and nongovernment organisations. Running clubs and firms. Any one interested is expected to register on line through the NSE website...

According to unaudited figures to March released last week, Kenya's NIC Bank is likely to end this financial year reaping more from less, all things being equal. One of the things that must be equal is the trend showcased by the figures which resulted in marginal profit before tax to 1368.6m Ksh (by 2.19%)  from double digit decline in total income to 5301.2m Ksh (13.7% down). The total income decrease was heralded by 13.9% drop in interest income to 4312.2m and 13.1% decline in Other operating income to 989m Ksh. On its part, the decline in Other operating income in spite of 18.7% increase in Other fees to 217.4m Ksh and in fee and commission by 4.44% to 336.7m Ksh, due principally to 58.9% decrease in Other income to 134.2m Ksh aided by 1.44% drop in forex trade income to 300.7m Ksh. It was then left for reduced cost pressure to help NIC Bank the tide of income decrease. Help came from 21.8% decrease in interest expense to 1605.1m Ksh; 29.4% decline in loan loss provision to 875....

Most indicators at Africa's two NSEs pointed in opposite directions for both markets today May 16, after yesterday's all round decline, NIGERIAN STOCK EXCHANGE; The All share index recovered at the Nigerian stock exchange by 0.35% after three days of bearish tendencies led to drops but activity indicators were mostly down today May 16 at the market. The ASI increase occurred despite a major 3.37% decrease in oil and gas index amidst very marginal growths in others and despite 0.01% drop in the price of Dangote cement. The increase was driven by 1.27% rise in consumer index to 701.75 and higher than ASI growths in Banking, Pension, Main and NSE 30 indices. In spite of the ASI rally though, activity indicators pointed in the opposite direction. Traded value dropped by 15.5% to N6.682bn; traded volume declined by 46.5% to 569.1m and number of deals recorded dropped by 13.3% to 4632. Two equities alone contributed above 50% of the day's traded value: Dangote Cement in...

NIGERIA: AXA MANSARD NIGERIA GETS NEW CEO From July 7, 2017, Mr Kunle Ahmed will take over from Mrs Yetunde Ilori as the managing director/ CEO of AXA Mansard Insurance plc; according to company secretary, Mrs Omowunmi Adewusi. According to Mrs Adewusi, Mrs Ilori retires formally from that date and the new CEO is currently the executive director Technical of the company. Mr Ahmed was appointed an executive director in February 2012 and is a member of the board's risk and technical committee and also non executive director of AXA Mansard subsidiary, AxA Mansard Health ltd. He is an insurance professional with over 24 years experience since graduating from the University of Ilorin in 1993. He started his career insurance in 1993 when he joined IGI Insurance staying there until 2004 when he moved to AXA Mansard insurance. He pioneered the energy group of the company and the regional office in Port Harcourt. NEW CHAIRMAN FOR STANBIC IBTC A new chairman of the board of...