4 BUSINESS DAY C002D5556 Monday <strong>11</strong> <strong>Dec</strong>ember <strong>2017</strong> BUSINESSDAY MARKET AND COMMODITIES MONITOR NSE 39,600 39,500 39,400 39,300 39,200 Biggest Gainer LINKASSURE N0.06 +9.60pc Commodities FMDQ Close Foreign Exchange Brent Oil US $61.87 Gold $ 1,255.60 Cocoa $ 1,895.00 Bitcoin N6,168,889.63 +3.81pc Powered by Market Spot $/N I&E FX Window 360.41 CBN Ofcial Rate 306.40 Treasury bills 3M 6M -0.01 -1.90 17.27 14.90 39,100 6a 7a 8a 9a Day range (39,231.97 - 39,656.53) 39,257.53 -276.61 (-0.07pc) Previous close (39,534.14) YtD return (46.08pc) N0.64 -5.32pc DANGFLOUR Biggest Loser Exchange Rate BDC $-N 362.00 £-N 480.00 €-N 428.00 TRAVELEX 363.00 480.00 426.00 Everdon Bureau De Change $-N £-N €-N BUY 306.00 410.00 362.00 SELL 363.00 483.00 430.00 FGN Bonds 5Y 0.00 14.35 10Y 20Y -0.36 -0.21 14.23 14.03 Apapa: NECA, MAN, others warn of collapse of more businesses ... tasks FG on ease of doing business JOSHUA BASSSEY Members of the Organised Private Sector (OPS) comprising manufacturers, chambers of commerce and industry, employers of labour, among others have hinted of imminent collapse of more businesses in Apapa as the gridlock continues unabated. The consequence of this on the national economy, the OPS warned, would be more job losses and further descent of the largely distressed population into poverty. Members of the OPS, who spoke with <strong>BusinessDay</strong> in Lagos, said in the last eight months, manufacturers had been finding it difficult to evacuate imported raw materials for their production lines, from the ports, just as they decried a sharp increase in Banks earn 64 percent... Continued from page 1 the period. The NSE - 30 which tracks the top 30 listed firms on the Nigerian Stock Exchange (NSE) in terms of market capitalization and liquidity accounts for 94 percent of the stock markets N13.54 trillion total market capitalization. “Most players in the industry especially foreign investors consider liquidity as they look at the average volumes,” said Ayodeji Ebo, managing director and chief executive officer of Afrivest Securities Limited. “The activities of the market have always been skewed towards the banking sector. They have a steady earnings and dividend policy,” said Ebo. Lenders are the best performer on the exchange this year as the banking index has gained 71.06 percent year to date, outperforming the NSE All Share Index (ASI), performance of 46 percent. Lenders, especially the large ones saw a significant growth in third quarter earnings, underpinned by improved yields on the loan book and high yields from money market instruments as interest Income. For now, analysts still see banks driving a big portion of the overall earnings growth. The NSE-30 firms as a whole transporting a container from the ports to their factories, from N100, 000 to between N350, 000 and N400, 000 due to port and road congestions. The national economy is said to be losing about N200 billion daily to the crisis in Apapa. According to the OPS, additional costs of transacting business within Apapa, is already heavily impacting their bottomline, and this could lead to a further cut in staff of member companies. The OPS comprises five key players in the Nigerian economy. These include Nigeria Employers Consultative Association (NECA), Manufacturers Association of Nigeria (MAN), Nigerian Association of Chambers of Commerce, Industry, Mines & Agriculture (NACCIMA), National Association of Small and Medium Scale Enterprises (NASME) and National Association of Small Scale Industries (NASSI). The five saw earnings surge by 42 percent to N818.43 billion in the Q3, <strong>2017</strong> period from N575.39 billion in Q3, 2016, based on data compiled by <strong>BusinessDay</strong>. Industrial goods firms were the second biggest profit generator in the period with Dangote Cement and Lafarge Africa combined profits of N194 billion equivalent to 23.7 percent of NSE-30 profits. This was followed by consumer goods firms (Dangote Sugar, 7UP, Flour Mills, Guinness, International Breweries, Nigerian Breweries, Nestle, Unilever and PZ), responsible for 8.1 percent of NSE-30 profits. Oil and gas firms (Conoil, Forte Oil, Mobil, Oando, Seplat business associations have over 15,000 member companies cutting across various sectors of the nation’s economy. Segun Oshinowo, the Director General of NECA, told Business- Day that quite a lot of businesses have closed shop and it was high time the Federal Government adopted a multi-prong approach to arresting the situation in Apapa. He added that government needed to speed action not only on the repair of collapsed road infrastructure in Apapa, but seek a holistic approach to enhancing the ease of doing business in the area. Speaking also, Segun Ajayi- Kadiri, the Director General of MAN, said the OPS was deeply concerned about the gridlocks and the dilapidated road to the ports. These, he said have continued to pose a challenge to businesses with grave implications for the economy. and Total), had 3 percent of profits in the index for the period. Energy companies have floundered in Nigeria as attacks on oil pipelines in the Niger Delta region combined with lack of reform in the downstream space is squeezing cash flows. Also, corporate governance issue relating to oil and gas giant Oando Nigeria Plc has soured investors’ appetite for the company’s shares. The SEC has ordered a forensic audit of the firm’s affair over alleged ‘insider dealings’ and ‘manipulation of the company’s shareholding structure’ in breach of the Investments & Securities Act 2007 and the SEC Code of Corporate Governance “The challenges have paralysed business activities, engendered loss of man-power, and revenues to government. Manufacturing companies can no longer meet up with set production targets. This by all standards is not business-friendly. It takes five to eight weeks for OPS member companies to take delivery of their cargo and their vital raw materials. We affirm that this is not good for business, it hinders Stanbic IBTC retains AAA national Fitch... Continued from page 1 SIBTCH’s main strengths is its diversified earnings. Noninterest income generation is high and underpinned by fees and commissions and trading income. Loan impairment charges are high, but manageable in the context of strong earnings. Costs are well controlled. As a result, profitability metrics are healthy,” Fitch added. In its report, the rating agency also reviewed the capital adequacy of Stanbic IBTC in compliance with L -R: Ripudaman Sharma, corporate sales head, Multipro Consumer Products Limited; Rosette Agbor, brand manager, Arla DANO; Bartholomew Brai, president, Nutrition Society of Nigeria; Mads Burmester, managing director, TG Arla Nigeria, and Ifunaya Obiakor, marketing manager, TG Arla Nigeria, at the launch of DANO flavoured milk powder in Lagos. for Public Companies. “If not for the technical suspension on Oando’s shares, the shares would have been further beaten down,” said an analyst who doesn’t want his name mentioned. Seplat Petroleum Development Corporation recorded a loss of N1.62 billion as at September <strong>2017</strong> while Total Nigeria, Mobil Nigeria and Conoil recorded 48.79 percent, 20.02 percent and 24.49 percent drop in net income to N5.95 billion, N4.59 billion and N1.35 billion in the period under review. The NSE Oil and Gas Index has returned -7.01 percent this year, underperforming the wider NSE All Share Index (ASI). profitability,” Ajayi-Kadiri said. Regina Odiah, a member of MAN who corroborated Ajayi- Kadiri’s statement, lamented that about 60 percent of manufacturing firms have relocated from Apapa. “The Federal Government wants manufacturing companies to key into backward integration policy but it fails to provide a conducive environment and good infrastructural development,” Odiah said. regulations and concluded that it was very strong and compare favourably against peers. “Fitch expects these levels to be maintained.” The liquidity position of Stanbic IBTC was reviewed and its ability to meet foreign currency obligations as they fall due. The Group was certified as having “good funding profile and very good liquidity” as customer deposits grew strongly by 13 percent in the first half of <strong>2017</strong> with the bank rolling out new delivery channels. “Balance sheet liquidity is underpinned by large volumes of government securities. Additionally, SIBTCH’s loans/ deposits ratio at 62% is one of the lowest among peers.” Chief Executive of Stanbic IBTC Holdings PLC, Mr. Yinka Sanni, said the ratings are a clear testament of the financial institution’s strength, strong leadership and the unyielding support of its parent company. He reiterated Stanbic IBTC’s commitment to the Nigerian market and pledged it will continue to provide support to all sectors of the economy in order to keep moving individuals and businesses forward. “We are elated by this validation of our strength. This will help to boost our drive to build a strong end-to-end financial solutions institution that offers bespoke products and services to our clientele. Our commitment to supporting the attainment of Nigeria’s developmental aspirations remains resolute,” Sanni said. Stanbic IBTC Holdings PLC is a full service financial services group with a clear focus on three main business pillars - Corporate and Investment Banking, Personal and Business Banking and Wealth Management. Stanbic IBTC belongs to the Standard Bank Group, the largest African financial institution by assets. It is rooted in Africa with strategic representation in 20 countries on the African continent. Standard Bank is focused on building first-class, on-the-ground financial services institutions in chosen countries in Africa; and connecting selected emerging markets to Africa by applying sector expertise, particularly in natural resources, power and infrastructure.
Monday <strong>11</strong> <strong>Dec</strong>ember <strong>2017</strong> C002D5556 BUSINESS DAY 5
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