HENATES

Today, Wednesday April 12 2017, Banks clearly dominated trading at the Nigerian stock exchange and Nairobi securities exchange. NIGERIAN STOCK EXCHANGE At the Nigerian stock exchange banks accounted for 52.7% of the day's traded 247.678m shares led by Fidelity bank for the second day. This time day high volume was Fidelity's 97.574m units involving equally top 360 deals but it could not top % gains as well like it did yesterday. It gained only 1% to close the deals. Helping to maintain the banking dominance, UBA recorded 3rd placed 175 deals for 7th ranked 9.613m units;  Access bank had 5th placed 156 deals for 3rd placed 17.8m shares; 6th ranked 155 deals were sealed in GTB for 3.226m units and Diamond bank recorded 40 deals for 7.28m units amongst others. FCMB group actually recorded the 2nd highest volume at 36.129m involving 7th ranked 117 deals However, the volume recorded in the banks could not help day traded units from dropping by 38.5% to 247.678m and number of deals f...

Compared to 38.3% growth in loans and advances to N507,190m in a troubled economy, Union Bank Nigeria PLC's  66.9% increase in impairment provision to N16,582m did not seem huge but as it turned out, it tilted the bank's bottom line downwards in 2016. From the audited figures released recently, gross earnings had closed the year only 8% up at N126,590m  and impairment provision turned out to be lone expense that was way ahead of this growth  Personnel cost had risen by 3.97% to N31,234m; Other operating expenses had grown by 8.55% to N25,860m leading to only 7.17% increase in non impairment overheads. Much earlier, interest income had risen by 7.81% to N98,002m while being generated using N32,963m interest expense, down 6.41%. True, gross earnings had been dragged down by 9.36% drop in Other operating income to N10,350m and 2.71% decrease in trading income to N5089m but it was well boosted by 37.4% rise in fee and commission to N10,577n and 41.3% increase in fair value income t...

Trading at Africa's two NSEs was marked by two main factors today Tuesday April 11 2017. At the Nigerian stock exchange offload in Fidelity bank set the tone for volume while at Nairobi securities exchange, Safari Com reclaim of day high volume paced the market. NIGERIAN STOCK EXCHANGE At the Nigerian stock market, All shares index continued downwards by higher 0.58% to 25478.06 compared to Monday's 0.47% drop but more pace setting was the offload in Fidelity bank. In all day high cramble for units resulted in day high 417 deals and day high % price change (up 8.70%) as 262.928m shares were sold in Fidelity bank. This os the first time this year, if not for a long while the same equity will pace the market in all three activity measures: price change; volume and number of deals. Sure the upswing in Fidelity could not push ASI upwards what with the premium equities all shedding weights through price drops accompanied by some drops in manufacturing and petroleum products sale. Bu...

The Nigerian stock exchange (NSE) has warned the investing public to be careful while buying and selling  securities of 10 quoted companies for breaking filing rules. According to a press release issued yesterday each of the companies have failed to file their 2016 annual reports due since March and have also not offered any reasons for the failure. In other to provide up to date performance information to the investing public, Rule 1.1.4 of the exchange demands that quoted companies file their annual financial reports witihin 90 days after the relevant year end or offer clear explanation of the circumstances mitigating against timely filing. The affected companies, says the NSE, have neither filed for the year ended December 2016 or offered any explanation. They include three insurance companies: African Alliance Insurance; Niger Insurance and Sovereign Trust Insurance; a conglomerate: A G Leventis and petroleum products marketing company: Con oil. Others are Capital Hotels; Premier p...

With a revenue of 64.5m Ksh in 2016 year, there is no contesting the fact that Kenya Orchards Ltd is a quoted small company but concede, it is a fruitful orchard. In 2016 its core revenue grew by only 5.9% per cent to 64.6m Ksh but with no gains from share valuation unlike 2015 0.014m, total income actually fell by 14.1%. But, the measure of its fruitfulness shines forth when the annual report for the same 2016 indicate 23.1% increase in profit before tax to 5.30m Ksh. That means that, in spite of the drop in total income, Kenya Orchards harvested 8.2 Ksh from each 100 Ksh income compared to 5.76Ksh in 2015. For good measure, this was achieved as finance cost almost tripled to 0.414m Ksh from 0.198m in 2015. The secret, of course, was that direct cost of producing (growing?) the goods sold increased by only 4.43% to 56.6m Ksh leading to 17.7% jump in gross profit. This was the foundation Kenya Orchards strengthened further by decreasing all overheads except finance cost. Administration...

From this week, the Central Bank of Nigeria (CBN) is determined not only to rain down dollars on Bureaux de change (BDCs) but also on small and medium scale enterprises. According to the CBN spokesman, Isaac Okoroafor, as promised last week, the BDCs that funded their accounts as at yesterday, will pick up their allocation today Tuesday, April 11. Also, a new window has been opened to make it east for small and medium enterprises (SMEs) to access not more than $20,000 through telegraphic transfer for importation of finished and semi finished goods. According to Okorafor, this became necessary because the CBN noticed that SMEs were being crowded out of the inter bank market. Such SMEs though must complete form M and support applications with pro forma invoice and Bank verification number. The banks will in turn have to ensure that relevant shipping documents are submitted not later 60 days from the date of the fund transfer. By the CBN's definition, SMEs are enterprises having asset...

The wise ones say that as you make your bed, so you sleep on it. This could not be more true for Kenya's Family Bank ltd in 2016. According to the figures released not too long ago, the most outstanding thing within the period was the fact that the bank did all it could to hold costs down. Hence, of all the cost heads, only directors emoluments increased by 48.4% to 229.6m Ksh. Even loan loss provision dropped by 74.8% to 211.9m Ksh thus complimenting 28.6% decrease in other operating costs to 2194m Ksh; 23.7% drop in rental charges to 486.5m and 10.1% easing of staff costs to 2640.6m Ksh. This was indeed fortune changer within the year because total interest income had risen by only 7.76% to 10,810.9m. Besides, 12.6% increase in interest expense to 4098m Ksh had wiped out any likely boost from the single digit interest income growth. Hence, with fee and commission on loans rising by 83.1% to 878m Ksh; income from forex trading growing by 26.6% to 298.5m Ksh and Other income closin...