Overtakes Dangote Cement by N39bn gain MTN Nigeria Plc yesterday returned as the biggest listed firm on the Nigerian Stock Exchange as sell-offs was witnessed in Dangote Cement Plc’s shares. On Monday, August 19 , MTN Nigeria had gone ahead of Dangote Cement, becoming the most capitalised company on the NSE just three months after being listed, as its share price increased to N138.70 from N135 on Friday. However, yesterday, Dangote Cement saw a 0.91 per cent increase in its share price from N164.50 on Monday to N166 on Tuesday,…
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Imperial logistics increases stake in MDS
UAC of Nigeria Plc has notified the Nigerian Stock Exchange (NSE) and its shareholders and stakeholders that the company has entered into an agreement with Imperial Logistics Limited. Under the deal, Imperial Logistics proposes to increase its shareholding in MDS Logistics Limited from 49 per cent to 57 per cent, by acquiring additional eight per cent shareholding . The Transaction is subject to relevant regulatory approvals. Under the terms of the transaction, Imperial Logistics will transfer selected profitable contracts to MDS and pay $2.4 million in cash. The transaction is…
Read MoreJPMorgan: Time to buy equities fast approaching
After August’s sell-off, the time to buy stocks is approaching; strategists led by Mislav Matejka wrote in a note on Tuesday. They said equities would move higher starting with an uptrend in September. Benchmarks including the S&P 500 Index, the Stoxx Europe 600 Index and the MSCI Asia Pacific Index are poised for their biggest monthly declines since May. “While we have been advocating a consolidation call during August, we continue to expect that the pullback will not extend for longer than the May one did, and still believe that…
Read MorePort haulage charges drop by 40%
Haulage charges,which had gone up from N120,000 to N700,000 within the last two years in Lagos due perennial gridlock and extortion at port access roads are gradually coming down due to slight improvement on the roads. Prior to the latest development, importers had been paying exorbitant charges and high rent on goods to terminal operators and truckers because of delay caused by traffic gridlock and port inefficiency. Costs Last year, the National President, National Council of Managing Directors of Licensed Customs Agents (NCMDLCA), Mr. Lucky Amiwero, complained that the cost of transporting a 20 feet container from Tin Can/Apapa ports to Alaba International Market in Lagos jumped from N200,000 to N400,000, while 40 feet container cost between N700,000 and N900,000. Also, he noted that the cost of transporting a 20 feet container from Tin Can/Apapa to Kaduna was N900,000, while it cost N1 million to transport a 40 feet container from N600,000 previously. Illegality Other charges include the cost of evacuating and transporting containers, illegal charges by shipping lines, extortion by security operatives and loss of container deposits due to late return of empty containers. Another factor is that extortion by security operatives has been reduced as the Presidential Task Force in charge of traffic at the Apapa port has reduced the gridlock. The task force was set up as a result of a presidential directive, which ordered the removal of trucks on bridges and roads in Apapa as well as the restoration of law and order on the port roads. The Vice President of National Association of Roads Transport Owners (NARTO) Dry Cargo section, Mr Abdullahi Mohammed, told New Telegraph that truckers had stopped paying between N60, 000 and N70, 000 to security operatives. He said that extortion at the port road had assumed in a new dimension, stressing that some security operatives not assigned to the port roads were using hoodlums to extort money from truck drivers. He said: “We have stopped paying money for parking space. You…
Read MoreDredging: Calabar Port channel to gulp N50bn
After endless failures, a new step to ensure that the controversial 84 kilometres Calabar port channel is dredged is again being considered by the Nigerian Ports Authority (NPA). If approval is given by government, it was gathered that the port channel would gulp another N50 billion. Already, the authority had decided to revisit the entire procurement process of the port channel. Also, the authority is planning to commission a consultant to evaluate the viability of the dredging project. The history of dredging scandals at NPA, which has lingered for over two decades, can be traced back to 1996 when the contract for the dredging of the port channel was awarded by the Federal Government to two firms- Van Oord and Jan de Nul, to scoop out 25 million cubic metres of sand to achieve an overall draft of eight metres to enable vessels of up to 30,000 tons sail on the water. The two firms were given N3billion for the job, while Van Oord was asked to dredge the first 44 kilometres, Jan de Nul got the last 40kilometers. But the job was abandoned. The same contract was also reawarded 10 years after by President Olusegun Obasanjo to the same companies in 2006 at a whopping sum of N20. 44billion($56 million). The entire length of the channel was divided between the two firms in 2002, while Van Oord was paid $26 million to dredge the first 44 kilometres, its competitor, Jan de Nul, got $30million to dredge the last 40kilometers of the channel with the instruction that the two firms should scoop out 25 million cubic metres of sand to achieve an overall draft of eight metres in 64 weeks to enable big vessels sail to the port. Also in 2006, the same contract was awarded by a former Minister of Transport, Dr Abiye Sekibo, at N14 billion but the two firms failed to delivered. Under President Goodluck Jonathan, Niger Global Engineering and Technical Company Limited (NGETCL) also got N20 billion in 2014 but the contract was terminated in August 2017 over alleged fraud in the award processes and shoddy execution of the dredging contract. This time, the authority declared that the dredging of the port would gulp N50 billion to make it navigable for modern deep sea going vessels. According to the authority’s General Manager, Corporate and Strategic Communications, Engr. Adams Jatto, NPA will determine the economics of its scales before spending such amount on the dredging. He said: “We want to revisit the entire procurement process because the problem is that we have to dredge Calabar channel and we are talking of about N50 billion to dredge it. “We have to look at economic of scales. So, if we dredge to the required length, can we get vessels to come in there? So, those are the areas we are looking at to see what can be done but by and large we want to commission a consultant to look at it, give us a business case to see how viable they are if they are to be dredged but what we doing in Calabar now is to appeal to shippers with low bed to move to calabar.”
Read MoreNaira stability: CBN sells N299bn T-bills in one week
With the recent downward movement in oil prices resulting in a decline in the nation’s external reserves and triggering concerns over naira stability, the Central Bank of Nigeria (CBN) auctioned a total of N299billion worth of Treasury Bills between August 7 and 15, to lure foreign inflows, findings by New Telegraph show. According to traders, the recent drop in oil prices, coupled with falling yields, led foreign investors to booking profits on local bonds, thereby putting pressure on the naira at the Investors and Exporters’ (I&E) foreign exchange window. The CBN responded to the development by holding an unscheduled Treasury bill auction on August 7, during which it sold a total of N114.6billion worth of T-bills. The auction was the apex bank’s first T-Bills sale since mid-July and it saw the CBN offering to sell N100billion of bills in maturities of three, six and 12 months, but getting bids of N454.9billion, with…
Read MoreNSE lists Greenwich Alpha ETF
The Nigerian Stock Exchange (NSE) yesterday listed Greenwich Asset Management Limited’s ‘Greenwich Alpha ETF on its daily official list. The Greenwich Alpha ETF units were listed at N100 each following an Initial Public Offer (IPO) on Monday, August 19, 2019. Greenwich Alpha is an open-ended ETF, which tracks the NSE 30 Index. The index constitutes 30 of the most liquid and capitalised stocks trading on the exchange. It is designed for investors to access the constituent companies of the NSE 30 index, thereby getting the performance of the index. Speaking…
Read MoreZenith Bank posts N89bn net earnings in HY’19
Zenith Bank Plc has recorded a profit after tax of N88.882 billion for the half year ended June 30, 2019 as against N81.737 billion reported in 2018, representing a growth of 8.74 per cent. In a filing with the Nigerian Stock Exchange (NSE), the group’s pre-tax profit also rose by 4.02 per cent from N107.358 billion during the previous year to N111.677 billion during the period under review. The lender’s gross earnings stood at N331.586 billion as against N322.201 billion posted in 2018, accounting for a growth of three per…
Read MoreStock market begins week bullish with N93bn gain
Trading activities on the floor of the Nigerian Stock Exchange (NSE) yesterday commenced the week on a positive track as the overall market performance indices firmed up with a gain of 0.71 per cent. Transactions on the stock market had last Friday recorded a decline to close on the red territory following depreciable demand by investors on sustained market apathy. Consequently, the All-Share Index gained 190.6 basis points or 0.71 per cent to close at 27,115.89 index points as against 26.925.29 recorded last Friday while the market capitalisation closed from…
Read MoreEquities: FMDQ plans to begin listing firms
FMDQ Securities Exchange has said that following the approval by the Securities and Exchange Commission (SEC), moving it from ‘an OTC Market’ to a full-fledged ‘Securities Exchange, it is planning among other things to enter the equity market. Addressing journalists on the development, the Managing Director/Chief Executive Officer of the firm, Mr. Bola Onadele Koko, said: “We will be in the equity market when we win the first listing. The fact that we want to do equity does not mean it will be now. Companies take time to come for…
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