22 — Vanguard, MONDAY, FEBRUARY 12, 2018 FINANCIAL VANGUARD INAUGURATION: Managing Director/Chief Executive, Nigeria Deposit Insurance Corporation (NDIC), Umaru Ibrahim (4th from Left); representative of Ag. Chairman, Independent Corrupt Practices Commission (ICPC) and Head, Anti-Corruption and Transparency Unit (ACTU), Mr. Justin Kuatsea (2nd right); some NDIC Executives and ICPC ACTU Staff at the inauguration of the re-constituted NDIC ACTU at the NDIC Head Office, Abuja Drop debt-led economic strategy, Agbaje tells FG By Emma Ujah, Abuja Bureau Chief ECONOMISTt and financial analyst, Mr. O p e y e m i Agbaje, has criticized the federal government’s debtled economic strategy, advocating an investment-led strategy in managing the nation’s economy. He spoke at a media parley organised by FCMB Bank in Abuja, weekend. Agbaje who is the Chief Executive Officer of RTC Advisory Services Limited said, “The whole idea of debtled economic strategy is wrong. Why not choose an investment-led economic strategy? Now what we see is re-financing our domestic debt with foreign borrowing. The argument is that it is cheaper. However, when oil prices tumbles, we will have problems with foreign exchange inflows and when that happens, the naira value will fall and at such a time, the cost of servicing such foreign debts could more than double.” The RTC boss noted that there was a huge global investment capital that could be attracted to the nation, without borrowing and that it made better economic sense than borrowing to undertake infrastructure. “We have global capital that can transform our infrastructure. Our preference for a debt-led economy is our original sin. We need an investmentled economy. Borrowing to do all these is a sub-optimal approach.” Agbaje also called for an immediate restructuring of the budget by allocating more funds to the capital components of the federal and states budgets. He regretted that a minute percentage of Nigerians, only three million people, have been consuming the bulk of the budgets of all tiers of The whole idea of debt-led economic strategy is wrong. Why not choose an investment-led economic strategy? NEXIM Bank, House of Reps reiterate commitment to resuscitate Multi-Trex By Adaeze Okechukwu The Nigerian Export Import (NEXIM) Bank and the House of Representatives Committee on Banking and Currency has restated plans to resuscitate the moribund Multi-Tex Integrated Plc, a cocoa manufacturing and processing company.“The Managing Director, NEXIM Bank, Mr Abba Bello, stated this during the tour of Multi-Trex facilities by members of the House of Representatives Committee on Banking and Currency and the management of Multi-Trex in Ogun State, Last week Friday. Bello maintained that that the problem the company experienced last six“years led to its closure and assured that the bank will through the Export Stimulation Facility bring back the cocoa processing company to full production activity. He said: “I’m always delighted to be here because cocoa as you all know is the largest non-oil export commodity from Nigeria. However, for us we believe despite the fact that cocoa commands such large percentage of our non-oil export, we believe that we can earn more from it and the way to earn more from has been the driving that both the Central Bank and NEXIM have government, at the expense of the about 180 million people. His word: “Those in the employment of both federal and state governments are not more than three million. All the recurrent budgets of both federal and state governments are to keep three million people comfortable, out of the whole population of about 180 million people. The recurrent budgets are implemented in brought into non-oil export. “But the problem that company went through in the last six years led to its closure and it is our determination under the current Export Stimulation Facility to bring back the processing plant back to life.““And we have already gone very far with Multi-Trex on what we need to do bring the company back to production. Now, we’ve mentioned severally what the benefits the value additions are. It will create jobs by adding value along the value chain of any commodity.” He also stressed the importance of products contributing to the value chain before they are exported. “The importance of value addition cannot be overemphasized. Jobs are created by adding value along the value chain of any commodity. When we export cocoa in its raw form or semiprocessed form, we export jobs along with commodity. “Multi-Trex would create 1000 directs jobs and would add more value to people of the host community through indirect jobs that would be created when the company starts production again.“ “NEXIM is here to strongly support companies like this. Once the terms with AMCON have been reached, we are surely behind this initiative to bring back the company to production. full and whatever remains is what is used for capital. Even the capital budget is taken largely by the same people in government through corruption. “Until we reverse the budget structure of Nigeria, poverty will continue to grow. It should be reversed because the capital budget is what affects the masses, in terms of the provision of roads, rails and other infrastructure facilities. Incidentally, at some point in the life of this manufacturing outfit NEXIM was involved and we intend to come back in our strongest form and ensure that we start earning what we deserve from cocoa production in Nigeria.” Speaking on the sidelines of the tour, the Chairman, House Committee on Banking and Currency, Hon. Jones Onyereri, expressed that the private sector contribution to the GDP is unimpressive and that there is need to incentivize the private sector in order to foster the desired economic growth. “Over the last six years, the committee had been on the drive to encourage the private sector as the major driver of the national economy. Nigeria prides herself as the largest economy in Africa whereas private sectors’ contribution to country’s GDP was next to nothing,” he said. Onyerere expressed “Having visited Multi-Trex and with all that we’ve seen this afternoon, I think we’re very much encouraged. Because it’s obvious that the facility was used very well but, in the bid to expand with the prevailing economic circumstances, the company ran into problems. It’s understandable. Companies such as this should really be encouraged. We’re pushing as a parliament and will keep pushing to support these companies. Standard Chartered named best for cash management STANDARD Chartered Bank, SCB Nigeria has been named as the Best Overall Bank for Cash Management in Nigeria by Global Finance. Global Finance released the rankings for its 18th annual Best Treasury and Cash Management Banks and providers by category, region and by country recently. Speaking on the announcement, Khurrum Zaeem, Head of Transaction Banking for Nigeria and West Africa, in a statement said: “We are delighted with this industry recognition. The award is a testament to our continued focus on developing marketleading solutions, digital channels and liquidity management solutions that deliver easy, convenient banking to all our clients. As a bank, we have been investing in developing our digital banking solutions not only to transform the transacting experience of our clients but also to provide them with the highest levels of ease and security in the management of cash. We continue to invest for long-term growth in Nigeria were digital technologies will shape the future of banking.” The bank further stated: “The Transaction Banking business in Nigeria provides a full suite of market leading propositions in Cash Management, Trade Finance and Security Services to clients within the local and international network. Based on client’s needs, we provide varied solutions covering the efficient management of receivables, liquidity and payables – effectively facilitated through a fully integrated electronic banking platform which offers clients convenience, efficiency, transparency, and enhanced security.
FINANCIAL VANGUARD Divergent outlook for stock market as investors lose N542bn Stories by Peter Egwuatu ANALYSTS have expressed divergent views on the likely outcome of the market for this week following the sale pressure that led to the loss of N542 billion. The Nigerian stock market recorded loss in every session of last week, with the All Share Index shedding 3.39% Week on Week, W/W to 43,127.92 points, as investors took profit across major sectors. As a result, Month-to-Date and Year-to-Date, YtD returns dropped to -2.74% and 12.77% respectively. All sector indices closed in the red, with the Industrial Goods (-3.52%) index recording the largest loss, and the Banking (- 3.41%), Consumer Goods (- 2.60%), Oil & Gas (-1.27%), and Insurance (-0.73%) indices following suit. Top traded stocks The top traded stocks by volume were Sterling Bank (N1.8billion), Skye Bank (N282.million) and Lasaco (N266.9million), while Sterling Bank (N3.9billion), Zenith Bank (N2.2billion) and Guaranty Trust Bank (N1.7billion) were the top traded stocks by value. In their review, analysts at Lagos based investment firm, Vetiva Capital Management, said”With sell pressure persisting at session close, we THE National Co-ordinator of Independent Shareholders Association of Nigeria (ISAN), Mr. Adeniyi A. Adebisi, has raised alarm over the capital market’s sudden boom, calling on the nation’s economic managers to monitor the economy closely. Speaking at the ISAN’s Annual New Year Party in Lagos, Adebisi said: “The capital market is a barometer of some sort. It mirrors the state of the economy of a country. A situation where the economy of Nigeria is throwing out poor financial indices and the capital market is showing signs of good health and growth is suspect and should not be. “This type of sudden growth may be phantom and a precursor of another bubble that will bust. Government authorities should watch.” Praising the founder of ISAN, Sir Sunny Nwosu for his exampulary accomplishments, the ISAN national co-ordinator enjoined other expect that the negative sentiment will filter into week open trading. Stock Watch: “It was an all red week for Fidelity Bank as investors swooped in to take profit on the stock, pushing it 12 per cent downwards. The stock which trades at N3.26, above consensus target price of N2.52 has returned 33 per cent YtD” Analysts at Cowry Asset Management Limited said: “This week, we anticipate increase in NSE All Share Index WoW as investors reposition in the market for anticipated corporate results.” In their projection for the year, analysts at Lagos based investment firm, Afrinvest Research, said: “We expect to see a rebound as a result of bargain hunting by investors.We expect a strong rally in the equity market in the first half of the year 2018. We see investment opportunities in the Banking, ISAN cautions investors on stock market boom Building Materials and Consumer Goods sectors of the market.” Aslo, analysts at FSDH said: We expect a strong rally in the equity market in the first half shareholders to emulate his drive, even as he called on public officials and regulators to be patriotic and selfless in their service to the nation. He called on stockbrokers, registrars and financial advisers to be more proactive and take their integrity more seriously to checkmate the rising cases of fraud in the sector, adding that “Cases of frauds are becoming more worrisome and alarming. Assurances of our financial advisers are becoming more unreliable” He, therefore, reminded regulators that the interest of investors-small and bigshould be upper most in their minds. Not immediate interest of current revenue, stressing that governmental agencies and regulators should not un-duly focus on revenue generation but on good corporate governance in the overall interest of the economy. Vanguard, MONDAY, FEBRUARY 12, 2018 — 23 of the year 2018. We see investment opportunities in the Banking, Building Materials and Consumer Goods sectors of the market. Global Markets Global market rout persisted last week, sparked by sharp losses in the US, with most stock indices plunging further to record low levels and wiping out the year’s gain. The rout was largely catalyzed by volatility shocks, inflation concerns, economic data, monetary policy decision, increasing oil production and rising bond yields. Specifically, Asian stocks (CSI 300: -10.08%, Nikkei 225: - 8.13%) posted the largest loss, followed by the US equities (DJIA: -6.51%, S&P 500: - 6.56%), and European shares (FTSE 100: -4.35%; Euro Stoxx 50: -5.46 %). The MSCI EM index (-5.50%) closed lower, as selloffs persisted in China and Brazil (-3.0%). Similarly, the MSCI FM index (-2.98%) sustained bearish trend, as pressures in Nigeria (-3.39%) and Kenya (-0.7%) offset gains in Ghana (+3.40%). CIS Council approves new qualifications for stockbrokers THE Governing Council of the Chartered Institute of Stockbrokers (CIS) has approved the newly introduced Specialized Professional Certifications (SPC) known as the Stand-Alone-Programme. Vanguard gathered that under the new professional qualification, which would be unfolded to potential beneficiaries on February 17, 2018, the holder shall be granted a license to practise in specific areas of the capital market as a core duty. The SPC, which is in line with global trends, shall cover the following core areas: Commodity Trading and Derivatives, Equities Dealing, Share Registration and Custodianship Services, Investment Management and Financial Advisory. By the new certifications which commences in March this year, the examination shall run concurrently with the institute’s current Professional Examinations which hold in March and September annually. Confirming this development, the institute’s Registrar and Chief Executive, Mr. Adedeji Ajadi, said: “The requirements for the SPC are the same as the Professional Examinations.” Ajadi explained that a holder of the specialized certificates shall be addressed as stockbroker who is a specialist in one particular area of the Securities and Investment Industry. “They are licensed to practise only in that specific area. Although an individual can acquire as many different SPC licences as possible. Four specialized certificates will qualify the holder to become an Associate Member of the Institute.” Meanwhile, it was learnt that after induction, the institute’s SPC graduates shall be called specialists in their chosen area. They will be inducted and licensed under the same conditions as the omnibus professional examination graduate. It will be recalled that CIS President, Mr. Oluwaseyi Abe had consistently explained the need for prospective stockbrokers to take advantage of the newly approved windows of opportunities in line with the global standard. Corroborating Abe, the First Vice President, Mr Adedapo Adekoje said the new areas of specializations would enhance development of human capital, a necessary condition for the growth and development of the financial market.