Sunday, 19 November 2017
Business and Economy

Business and Economy (725)

The National Council on Privatization (NCP) has approved the sale of 70 percent of Egbin Power Plant in Lagos at the cost of $407.3 million to KEPCO, a Korean firm.

The council also approved Omotosho power plant in Ondo State and Olorunsogo power plant in Ogun State for sale to the Chinese firms constructing them.

Atedo Peterside, chairman, Technical Committee of NCP, who announced this to State House correspondents after the council ended its meeting chaired by Vice President Namadi Sambo at the Presidential Villa, Abuja, said the Geregu power plant value was increased to $600 million, as against $549 million valuation of 2007 when the Federal Government began negotiations to sell only 51 percent equity of the plant to the same firm.

Peterside disclosed that “it made more sense to NCP to offer the plants on right of first refusal to the Chinese firms since they would naturally understand the plants better and have agreed to a sale price the council considered reasonable enough”.

He disclosed that except for Afam plant “every other power plant owned by PHCN now has a core investor”.

Akin Akinfetiwa, CEO of Forte Oil, a partner of Amperium Consortium, presented a confirmation of payment of $33 million including local component of N519.12 million into NCP account, being 25 percent down payment for acquiring 51 percent of Geregu power plant.

The firm was given 15 days grace but the firm owned by business mogul, Femi Otedola, paid the purchase sum immediately after the approval was granted and the meeting ended.

The NCP also deliberated on the report of the progress being made by the attorney-general of the federation on the issue of arbitration delaying the privatisation of the Ajaokuta Steel Plant and Aluminium Smelter Company of Nigeria (ALSCON).

This was made known by Mines and Steel Development Minister, Sani Sada, who disclosed that the feuding parties had their initial meeting to settle out of court, adding that “some useful discussions to take the resolution further are ongoing”.

According to him, “We are beginning to see that very soon we are likely to conclude some of those issues, such that BPE will take full charge of these two important facilities and are appropriately privatised, not the way it happened before that is now putting us into these issues”.

Minister of communications technology, Omobola Johnson, also announced the NCP’s approval of five draft bills for onward transmission to the Federal Executive Council (FEC) for further approval. They are Inland Waterway; Ports; Railways; Road Sector, and National Transport Commission.


Posted On Tuesday, 05 March 2013 04:59 Written by

At the Nigerian Stock Exchange (NSE) yesterday, trading in stocks closed lower as profit taking wrecked equities prices causing the stock market to lose 0.25 percent.

Though, a late-day rally helped some stocks erase their losses with most of the pullback concentrated in the consumer goods and agricultural sector stocks. Analysts say this move suggested investors were still willing to buy on dips even after the sharp losses in the past sessions.

Transactions in the shares of FBN Holdings plc, Access Bank plc, UBA plc, Transnational Corporation plc, and United Bank plc helped to buoy equities market volume. In 5,679 deals, investors exchanged 361.929 million shares valued at N4.030billion.

The NSE ASI close lower at 33,811.07 points against the preceding trading day’s 33,895.07 points while the market cap close lower at N10.819 trillion compared with N10.846trillion the preceding day.

NewGold Exchange Traded Fund (ETF) rallied most at the Nigerian bourse from N2, 400 to N2, 414, adding N14. It was followed by Guinness Nigerian plc which rose from N276.30 to N290, after adding N13.70. Nestle Nigeria plc garnered N10 from N890 to N900; Zenith Bank rose from N20.51 to N21.08, adding N0.57; while CAP plc rallied by 0.25kobo from N36.05 to N36.30.

On the loser chart, Nigerian Breweries plc dipped most from N166 to N161.20, after shedding N4.80. Presco plc declined from N21.85 to N20.12, after losing N1.73. Cadbury was the next big loser after its stock dropped from N37.05 to N35.50, losing N1.55.

Okomu Oil followed after declining from N52.36 to N51, losing N1.36; while Lafarge Cement Wapco plc lost N1.10, after its stock price dropped from N66.10 to N65.

 

Posted On Tuesday, 26 February 2013 14:00 Written by

TRANSACTIONS on the Nigerian Stock Exchange closed in an upbeat yesterday occasioned by price gains by major bluechip stocks, causing market capitalization to rise further by N120billion.

Volume of transactions traded however dropped slightly as 434 million shares worth N4.3 billion was exchanged in 7243 deals, lower than 528.8 million units valued at N3.6 billion exchanged in 6,827 deals on Tuesday.

Specifically the All/Share index of the NSE rose significantly by 373.07 points or 1.1per cent from 33,335.11 recorded on Tuesday to 33,708.18 while market capitalization increased by N120 billion from N10,666 trillion recorded on Tuesday to N10,786 trillion.

Further analysis of yesterday’s transactions showed that Nestle topped the gainers chart with 7100kobo to close at N981.00 per share followed by Nigerian Breweries with 799 kobo to close at N169.99 per share.

Dangote Cement gained 199 kobo to close at N146.99 per share.

Presco, Cadbury, BetaGlass garnered 165 kobo,159 kobo and 45 kobo to close at N25.90, N40.80 and N9.49 per share.

National Salt Company of Northern Nigeria and Champion added 35 kobo and 21 kobo to close at N9.50 and N4.56 per share.

FBNH gained 19 kobo while DN Meyer added 17 kobo to close at N1.96 per share.

However, Julius Berger topped the losers chart with 599 kobo to close at N54.00 per share followed by Guinness with 500 kobo to close at N275.00 per share. PZ Cussons lost 325 kobo to close at N37.00 per share.

Okomuoil, GlaxoSmithKline, Flourmills lost 299kobo, 177kobo and 74 kobo to close at N58.00,N47.96 and N77.00 per share.

Berger Paints shed 59 kobo to close at N11.31 per share. UACN lost 50 kobo to close at N50.00 per share.

Stanbic IBTC and AirService also dropped 38 kobo and 31 kobo to close at N13.90 and N5.45 per share.

On the activity chart, the banking sub-sector maintained its dominance in volume terms with 182 million shares valued at N1.4 billion followed by the insurance sub-sector which traded N63 million units worth N52 million in 504      deals.

The food/products sub-sector also featured with N41 million units valued at N271 million in 392   deals.

Trading in the shares of   Fidelity Bank and United Bank for Africa boosted activities in the banking sub-sector with 32 million shares and 21million units worth N108 million and N169 million while the insurance sub-sector was enhanced by activities in the shares of Mutual Benefit Assurance with 12.5        million shares worth N6 billion.

 

Posted On Thursday, 21 February 2013 18:55 Written by

As investors remain bullish in their expectations of improved Full Year (FY) 2012 financials from quoted companies, if anything contrary becomes the case this earnings’ season, it may likely result in a slowdown in the rate at which the market currently moved.

While investors add to their portfolio ahead FY12 and Q1’13 results, market watchers are advising on the need to remain cautious about the current run, particularly following observations that while many stocks are now trading at fair value, others also trade above fair value.

Analysts at Partnership Investment Company in their recent outlook say: “The current rally is sustainable given the expectation of results which indicate positive. We however advise cautious trading, based mainly on strong fundamentals. Intermittent profit taking will only give way to new price discovery and create opportunity for new price discovery.

“Portfolio basket with a mix of fixed income instruments is recommended. Equities are the dominant instruments at this time. Significant appreciation on buying price is incentive to sell and lock in gains in order to explore opportunity in other equities.”

“High expectations of corporate profits for the 2012 financial year whetted investors’ appetite, as market sentiments stayed positive. Investors sustained recent buy pressure towards active and value stocks with strong market fundamentals. This week, performance indicators of traded equities may further swing northwards, as rising investors’ confidence and foreign portfolio investment inflows continue to induce buoyant mood in the equities market,” says Tony Monye-led team of economic intelligence at Access Bank plc.

Analysts at Financial Derivatives Company recently asked whether this rally is supported by fundamentals or whether it is another awaiting asset bubble driven by irrational exuberance.

“Another stock market rally has started with the market gaining more than 18 percent year-to-date; that is five-weeks (annualised at 187%). Current run is backed by fundamentals and global fund flow to equities and emerging markets. Many stocks are now trading at fair value or above fair value, as investors add to their portfolio ahead FY12 and Q1’13 results. Consumer goods sector showing signs of overpricing. Future earnings of many consumer goods company can no longer support their share prices,” they added.

“A great month in January may be consolidated in February. However, we remain cautious about the current run. Global markets have also risen to pre-crisis level, although risks still remain. Little headroom to manoeuvre if US debt ceiling is not avoided in March and Eurozone crisis comes flooding back. We expect a few misses when earnings’ season start. A disappointing earning season may dampen the market run. Market making activity must be closely watched to ensure an asset bubble is not built up again,” the Financial Derivatives Company analysts, say recently at the Lagos Business School executive breakfast meeting.

Meanwhile, analysts at FBN Capital recently note that the Nigerian Stock Exchange (NSE) All Share Index (ASI) soared by 19 percent year-to-date (ytd), as investor sentiment has turned still more positive for frontier markets in general, and Nigeria in particular.

“The comparable index in Kenya, the second largest equity market on the continent outside South Africa, has risen by 9 percent in the same period. The global context is that the accommodative monetary stance in the US and other developed economies has fuelled portfolio inflows into emerging and frontier markets. We could explain the out-performance of Lagos in terms of the stronger growth prospects. GDP rose by a provisional 7.1 percent year-on-year (y/y) in Nigeria in Q4 2012, compared with 4.7 percent in Kenya in Q3,” the analysts add in their report titled “An unsustainable pace on the Lagos bourse.”

Posted On Thursday, 14 February 2013 14:09 Written by

HEAVY share price gains recorded by major bluechip companies, especially PZ Cussons and Unity Bank, yesterday lifted market capitalization by N63 billion.

Volume of shares traded, also soared significantly, as 683million shares worth N4.3 billion changed hands in 7,300 deals, higher than 627 million units worth N3.2 billion exchanged in 7,412 deals on Friday.

Specifically, at the close of transactions yesterday on the Nigerian Stock Exchange, 56 companies constituted the gainers chart, led by PZ Cussons with 9.99 per cent to close at N44.48 per share followed by Unity Bank, adding 9.89 per cent to close at N1.00 per share.

AIICO gained 9.84 per cent to close at N1.34 per share, TransNational Corporation and Prestige Assurance garnered 9.82 and 9.71 per cent to close at N1.79 and N1.13 per share.

Royal Exchange Assurance, Wema Bank, Fidson gained 9.68,9.52 and 8.54 per cent to close at N1.02, N1.61 and N1.78 per share.

Custodian&Allied insurance added 7.84 per cent to close at N2.20 per share.

UACN also gained 6.00 per cent to close at N53.00 per share.

However, 19 stocks recorede price depreciation, as RedStar Express topped the losers chart with 6.22 per cent to close at N3.77 per share while JohnHolt followed with 5.00 per cent to close at N1.33 per share.

Flourmills lost 4.99 per cent to close at N76.01 per share.

FO shed 4.98 per cent to close at N15.84 per share.

International Breweries, ABC Transport, Ikeja Hotel shed 4.76,4.69 and 4.42 per cent to close at N24.00,N0.61 and N1.08 per share.

MCNichols lost 4.00 per cent to close at N0.72 per share.

Portland Pains and Skye Bank also dropped 3.85 and N3.17 per cent to close at N5.00 and N6.10 per share.

Consequently, the All/Share index of the NSE rose by 198.14 points or 0.5 per cent from 33,313.49 recorded on Friday to 33,511.63 hile market capitalization increased by N63 billion from N10,658 trillion to N10,721 trillion.

Further analysis of yesterday’s transactions showed that the banking sub-sector remains the most active stock in volume terms with 363million shares worth N2.4 billion in 3,015 deals, followed by the insurance sub-sector which traded 147million units valued at N108 million.

Transactions in the shares of Unity Bank strengthened activities in the banking sub-sector with 115 million shares worth N115 million followed by Fidelity Bank with 43million units worth N146 million.

 

 

Posted On Tuesday, 12 February 2013 02:40 Written by

FIDSON Nigeria Plc traded high at the end of transactions yesterday on the trading floor of the Nigerian Stock Exchange, as market capitalization hits N127 billion.

Specifically, at the close of transactions yesterday, Fidson led 54 stocks with 10 per cent to close at N1.54 per share.

Following Fidson yesterday was Ashaka cement, adding 9.98 per cent to close at N24.35 per share.

Other gainers of yesterday’s transactions include Wema Bank, AIICO, Transcorp, adding 9.91,9.90 and 9.88 per cent to close at N1.22, N1.11 and N1.89 per share.

Royal Exchange gained 9.86 per cent to close at N0.78 per share while Prestige Assurance gained 9.41 per cent to close at N0.93 per share.

Unity Bank and Union Bank garnered 8.86 and 8.67 per cent to c lose at N0.86 and N10.40 per share.

RedStar Express also added 7.89 per cent to close at N3.83 per share.

However, 13 stocks constituted the losers chart, led by Eternaoil with 5.00 per cent to close at N4.18 per share while Premier Breweries followed by UPL with 4.61 per cent to close at N4.55 per share.

JohnHolt lost 4.55 per cent to close at N1.47 per share.

Presco shed 3.64 per cent to close at N26.21 per share. United Bank for Africa dropped 1.19 per cent to close at N7.50 per share.

Ikeja Hotel lost 0.94 per cent to close at N1.05 per share while Livestock shed 0.84 per cent to close at N2.35 per share.

Sterling Bank and Zenith Bank dropped 0.68 and 0.47 per cent to close at N2.93 and N21.40 per share.

Consequently, the All/Share index of the NSE rose by 395.77 points or 1.18 per cent from 33,064.37 posted on Tuesday to 33,460.14 while market capitalization increased by N127billion from N10,578 trillion to N10,705 trillion.

On the activity chart, the banking sub-sector maintained its dominance in volume terms with 457million shares worth N3.3 billion followed by the insurance sub-sector with 171 million units valued at N122million.

The conglomerates featured with 133 million shares worth N288 million.

Transactions in the shares of United Bank for Africa and Unity Bank buoyed activities in the banking sub-sector with 100 million shares and 68 million units valued at N764 million and N58 million.

The insurance sub-sector was boosted by activities in the shares of Niger Insurance and Mutual Benefit Assurance with 49 million shares and 34 million units valued at N24 million and N18 million.

In all, investors exchanged 944 million shares worth N6.5 billlion in 8,492 deals.

Posted On Thursday, 07 February 2013 04:15 Written by

Remodelling your kitchen or bathroom is an excellent way to make your home feel more welcoming and inviting, and to increase its value, too. However, both of these rooms will require you to do some plumbing. That can be tricky if you're not used to doing this kind of work. To avoid problems caused by inexperience, make sure you know what you're doing or still better get an expert. Here are nine solutions that could help you with your bathroom and kitchen remodelling projects.

1. Know what you're capable of. Just because you know how to change out an O ring to fix a leaky sink doesn't mean you're ready to install a new toilet. Be willing to let projects that are too big for you go, and stick to the ones you know you can do. This will make a big difference in the success of your remodel.

2. Don't go for the cheapest replacement parts and fixtures you can find. There's usually a difference between cheap and midgrade products, and you'll see that difference in longevity. While those inexpensive fixtures might be shiny, they'll probably last for a shorter period of time. If you don't want to have to repair or replace them in the future, choose quality over price.

3. Don't replace what you don't have to. A new sink or toilet is going to be pretty expensive, but unless you don't like the look of the old one or the porcelain itself is cracked, you probably don't need to buy one. Look at the parts that might have failed and replace them instead. It'll cost you less in the long run.

4. Always shut the water off at the source if you're going to be working with the plumbing. For most modern fixtures, this means simply turning the knob that's attached to the sink or toilet to keep a flood from occurring. However, if you're working in an older house, you might need to shut the water off at the source. If this is the case, think about installing shut off valves as part of your remodel to make future jobs easier.

5. Organize everything. Know where all your tools and instructions are before you start work, so you won't have to run back and forth to find things and make the job take longer.

6. Do remodelling jobs a little at a time. Instead of tearing the whole kitchen or bathroom apart at once, do one part at a time to keep you and your family a lot happier.

7. Think about drainage. Your home has a system for draining and venting, and if you're installing a new fixture, doing it wrong could upset the balance. Be very careful when you set up drains to make sure they work correctly.

8. Install only water resistant materials. We've all seen it - a bathroom where the owner has unwittingly installed carpet, only to have it ruined. Even if things seem fine, remember that kitchens and bathrooms are moist places. Choose vinyl, ceramic tile and metal over wood and fibrous materials. You'll thank yourself later.

9. Use the right tools and components! This might seem like a no-brainer, but many home plumbers take shortcuts that end up being a real problem later. Don't let this happen to you - use the right thing to begin with.

WALTER UWALAKA

*I-One Building Solutions*  Bathrooms. Doors. Tiles

Consultancy |  Sales&Supply  |  Installation.

01-8500411, +234-08060500676, 08022416132

Posted On Tuesday, 05 February 2013 14:22 Written by

THE bulls have continued to strengthen its hold on the trading floor of the Nigerian Stock Exchange, even as virtually all the highly capitalised stocks appreciated in price, especially PZ Cussons and West African  Portland Company, causing market capitalization to rise further by N87billion.

Volume of shares traded also increased, as 578million shares valued at N4.3 billion was exchanged in 7,740 deals yesterday, higher than 410 million units worth N3.5 billion exchanged in 6,708 deals on Friday.

Specifically, at closed of transactions yesterday, the All-Share index of the NSE rose by 273.16 points or 0.8 per cent, from 32,411.86 recorded on Friday to 32,685.02 while market capitalization increased by N87 billion from N10,370 trillion to N10,457.46 trillion.

Further analysis of yesterday’s transactions showed that PZ Cussons led the bulls up with 356kobo to close at N71.43 per share while West African Portland Company followed with 343 kobo to close at N49.36 per share.

GlaxoSmithKline added 235kobo to close at N49.36 per share.

International  Breweries, Guinness, Cadbury garnered 227kobo,218kobo and 168kobo to close at N24.98,N294.21 and N35.28 per share.

Nigerian Breweries gained 168 kobo to close at N166.65 per share while UACN added 141 kobo to close at N48.51 per share.

MRS and FBN Holdings also gained 124kobo and 108 kobo to close at N26.12 and N19.79mper share.

On the other hand, Nestle topped the losers chart with 18.99kobo to close at N801.00 per share. Flourmills followed with 809kobo to close at N72.82 per share.

Dangote cement shed 487kobo to close at N140.00 per share.

Presco, Livestock, DN Meyer dropped 18kobo, 12kobo and 11kobo to close at N26.11,N2.38 and N1.15 per share.

May&Baker shed nine kobo to close at N1.88 per share while LearnAfrica lost six kobo to close at N2.25 per share.

RT Briscoe and Cutix also lost six kobo and four kobo to close at N1.69 and N1.42 per share.

On the activity chart, the banking sub-sector dominated in volume terms with 338 million shares worth N2.1billion in 3,199 deals, followed by the conglomerates with 70 million units valued at N166 million.

The insurance sub-sector trailed with 41 million units valued at N31 million in 332 deals.

Transactions in the shares of Sterling Bank and Fidelity Bank buoyed activities in the banking sub-sector with 114 million shares and 39 million units valued at N326 million and N134 million while the conglomerates sub-sector was boosted by activities in the shares of TransNational Corporation which traded 68 million units valued at N103 million in 384 deals.

 

Posted On Tuesday, 05 February 2013 04:42 Written by

THE Nigerian Stock Exchange, NSE has assured stakeholders that the current year would be quite gainful, even as the market is expected to leverage on key initiatives and policies advocacies that commenced in the past year to deliver outstanding performance.

The NSE’s Chief Executive Officer, Mr. Oscar Onyema, explained that even though he feared that problems around liquidity might spill into the New Year, he assured that concerted efforts are being made to address the ugly trend.

His words, “we anticipate that the relative attraction of the FGN bonds will continue for local and global investors on the fixed income side, as a result of record high yields. With the forthcoming inclusion of the Nigerian FGN bonds in the Barclays Emerging Markets Local Currency Bonds Index, it will put the nation’s bonds in the international spotlight,” he added.

He noted that expected entrance of foreign issuers such as the International Finance Corporation into the Nigerian bonds market this year would help to lift the market performance.

He listed other contributing factors to the optimism on the capital market to include early passage of the national budget which, according to him, created the impression that fiscal policy is prioritised, the pronouncement by the Federal Government to begin investing proceeds of the Sovereign Wealth Fund (SWF) in the capital market in March 2013, as well as, elimination of value added tax, VAT and stamp duties from transaction charges in the market.

According to him, continued product innovation by the Exchange, including the commencement of secondary bond market trading and introduction of new indices and ETFs would provide additional incentives.

Speaking on some of the initiatives for 2013, Onyema said, “For ETF, we intend to roll out additional ETFs covering various undermined products and we also intend to introduce the Nigerian depository receipt programmes this year,” saying that this would provide access to the trading of companies that are listed in other markets, but have their products heavily used in Nigeria.

Continuing, he said, “we intend to conclude work on transaction cost analysis framework that will allow us to benchmark how effective or extensive we executive an order in this market as compared to other emerging or frontier markets, and that will give us a clear understanding of where action needs to take place. We also intend to continue the work on market optimisation, so that we can continue to improve on the liquidity in the market place.”

 

Posted On Monday, 04 February 2013 04:20 Written by

EQUITY transactions on the Nigerian Stock Exchange closed in an upbeat yesterday, as more blue chip companies join the league of gainers, causing market capitalization to increase by N78 billion.

However, the volume of shares traded dropped, as 4.24million shares worth N3.8 billion changed hands in 6,505 deals, lower than 507 million units worth N3.1 billion exchanged in 6,666 deals on Tuesday. 

Specifically, at the closed of transactions yesterday, the All/Share Index rose by 244 points or 0.7 per cent from 31,571.45 recorded on Tuesday to 31,815.45 while market capitalization increased by N78billion from N10,179 trillion to N10,101 trillion.

Julius Berger topped the gainers chart with 9.92 per cent to close at N66.50 per share while Nestle followed with 6.31 per cent to close at N840.10 per share. PZ Cussons gained 5.92 per cent to close at N34.00 per share.

Flourmill, West African Portland Paints added five per cent to close at N85.05 and N4.20 per share respectively, while Eterna oil gained 4.98 per cent to close at N4.64 per share.

FO added 4.94 per cent to close at N15.94 per share. Livestock and Vitafoam garnered 4.85 and 4.82 per cent to close at N2.38 and N4.35 per share.

AG Leventis also gained 4.61 per cent to close at N1.59 per share.

International Breweries led others on the losers chart with 10 per cent to close at N25.20 per share followed by Prestige Assurance with 9.09 per cent to close at N0.60 per share.

Unity Bank lost 8.86 per cent to close at N0.72 per share. UACN shed 8.63 per cent to close at N50.30 per share.

Berger Paints, CAP, Honeywell dropped 5.00 , 4.95 and 4.89 per cent to close at N9.50, N31.90 and N3.11 per share.

JohnHolt and Nigerian Aviation Handling Company also shed 4.81 and 4.76 per cent to close at N1.78 and N8.00 per share.

On the activity chart, the banking sub-sector maintained its dominance in volume terms with 211million shares worth N1.7 billion followed by the insurance sub-sector with 99 million units valued at N61 million.

The food products subsector trailed with 27 million units worth N169 million.

Trading in the shares of Unity Bank buoyed activities in the banking sub-sector with 42 million shares worth N30 million while the insurance sub-sector was enhanced by activities in the shares Niger insurance with 62 million units worth N31 million.

olp

 

Posted On Thursday, 31 January 2013 03:01 Written by
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