HENATES

According mates composite price index for May 2017 released today by the National Bureau of statistics, inflation rate in Nigeria slowed down to 16.25% compared to 17.24% in April. It represents the fourth consecutive easing of the rate indicating a gradual slow down to a possible single digit inflation rate in the future. The inflation rate had risen consistently from May 2016 to January always in double digit. Thus from 15.6% in May 2016, it rose monthly to hit a high of 18.7% by January this year. According to the NBS top price index increases were recorded in meat,breadand cereals; fish, solid and liquid fuels and garments and clothing. By May though, furnishing and household equipment and maintenance and miscellaneous goods and services finally crossed the 200 mark thus joining majority of the segments in the composite index to recording prices that were twice base year November 2009 levels. Urban index closed May at 16.34% growth level compared to 17.62% in April while ...

NIGERIA: UBA FIRST EUROBOND OVERSUBSCRIBED According to UBA company secretary, Bili A Odum, the $500m global euro bond offered by UBA PLC was oversubscribed by 240%. In a notice to the exchange this week, he said the debut 5 year senior unsecured benchmark bond is listed on the Irish stock exchange. It was issued globally at 7.75% coupon Tate and will be redeemed by June 2022. Investors worldwide expressed in interest. He said, adding they came from the United kingdom, Europe, Asia,  Middle East and the United States The dollar denominated offering, says UBA group CEO, Kennedy Uzoka, "further illustrates investor confidence in the strong fundamentals of UBA group". On his part, group chief finance officer, Ugo Nwaghodoh said the " debut ...offering is another milestone for us. It is timely in the group's growth phase and aligns with our strategic plan.." SKYE BANK TO FILE 2016 REPORT THIS QUARTER. The annual financial report of Skye Bank PLC, w...

At both the Nigerian Nairobi stock markets today, June 14, 2017, offloads dominated although not enough to drive Nairobi volume upwards; only the Nigerian one rose by 85% to 759m shares from Tuesday's 410.2m shares. NIGERIA STOCK EXCHANGE: At the Nigerian stock excchange, bullish pressure punctuated recent days of drops in the j All share index as it rose by 1.38% to 33,598.20 in contrast to 0.28% drop on Tuesday. Though strong a  recovery, the market was excited more by offloads in FBN Holdings; Transcorp and  rarely traded LASACO insurance. The leading volume was recorded in FBN Holdings as 106.36m shares were offloaded  in 2nd highest 662 deals worth 4th placed N727.1m closing the day 5.07% up or by N0.34 per share. It was followed by Transcorp with 3rd ranked 583 deals for 99.788m shares worth 8th placed N186.99m also closing up but by 1.10% or N0.02 per share and LASACO which closed firm but recorded fairly high 184 deals for 99.753m units. Fairly high, that is...

Nigeria's revenue from value added tax (VAT) may grow by about 9.74% this year to N853,208.75m, all things being equal. According to the National Bureau of Statistics (NBS) latest report on sectoral distribution of Vat inflow in Nigeria, total revenue from it grew by 2.38% to N777,504.7m in 2016 with first quarter of the year contributing 24% or N186,428.2m. Meanwhile, total Vat revenue in 2015 was N759432.7m with the first quarter of the year being responsible for 25.9% or N196,706.9m. Now, the first quarter of 2017 recording N204,770.1m, according to the NBS, the possibility is that as a % share of the total, it should be in the range of 24% and 25%. Meaning the full year figure should be in the neighbourhood of N853,208.7m all things being equal. According to NBS, the 2017 first quarter figure was down 1.25% on quarter 4, 2016 but 9.84% higher than same period in 2016. It actually represents the second quarter since 2015 that a drop will be recorded. The first was in q...

The Nigerian stock exchange will this year launch the derivatives segment of its market, according to its 1st Vice President, Mr Abimbola Ogunbanjo, this is an attempt to key into the fast growing derivatives market world wide Speaking during the opening ceremonies of the on going NSE X Academy first training programme yesterday at the Civic Centre, Victoria Island, he said that was  why the training session became necessary and timely. However, he drew attention to divergent perspectives on the derivatives market saying " To some, derivatives are simple tools that allow market participants to efficiently manage their risks, to others derivatives are weapons that allow market participants thwart regulations; exceed risk limits, and threaten the very fabric of the world's economic system" He added: " As with any other tool, the answer as to whether the tool is good or bad is determined by the way it is used and who is using it." The training started yeste...

Have you heard of the merger being put together between International Breweries (IBL) and private limited liability brewers in Nigeria? Then rest assured that for IBL, says annual report for the year to March this, what may in fact be brewing is financial engineering. According to the report released this week, virtually everything in the company grew very strongly within the year, including, unfortunately, costs outside management control. Total income grew by 39.4% to N32,816.6m slightly lower than core revenue's 40.6% to N32,711.2m but, IBL not only ended the year with 20.9% drop in profit to N2,891.7m; it also crossed the tape with a heavy load: A total of N14,112.9m working capital defucit, almost twice 2015's closing figure. Simple, IBL was plagued by massive jump in finance cost to N5195.7m compared to N1709.4m previously; cost of sales 39.7% growth to N17 546.8m; marketing cost rise 41.5% to N5089.8m and 98.6% dry up of interest income ti just N2.98m However, th...

At Africa's two NSEs on Monday June 12 2017 it was downbeat all the way for the marginal rise in trade value in Nigeria to N6.11bn. NIGERIAN STOCK EXCHANGE: At the Nigerian stock exchange the All shares index eased by 0.12% to 33235 after last Friday's close upwards. This was accompanied with 27% drop in traded volume to 501.08m shares and 2.21% decrease in deals recorded to 6635. The decrease in traded volume was scattered without one very dominant offload but top five still accounted for 53.8% or 269.6m shares It was led by Access bank as 2nd ranked 425 deals were sealed for 65.35m shares worth also 2nd rated N705.34m. The bank though ended with only N0.36 per share or 3.46% price gain. It was followed by FCMB which witnessed 10th placed 232 deals for 60.377m units worth only N42.29m, well outside top 10 by traded value. To round up the top five by volume, GTB had 5th ranked 232 deals for 58.68m shares worth pace setting N1,985.98m; Transcorp recorded 7th placed 2...