BusinessDay 26 Mar 2018

More documents

Recommendations

Info

Monday 26 March 2018 42 BUSINESS DAY Live @ The Stock Exchange Stock market liquidity indicators wane …Year-to-Date returns currently stands at 8.44% Stories by Iheanyi Nwachukwu After impressive run in January 2018, equities market performance globally slid into correction territory in February 2018 driven by sell pressure from profit taking as well as uncertainty around inflation and interest rates. At the Nigerian stock market, total turnover declined by circa 46percent month-on-month (MoM), while liquidity indicators (market depth and breadth) also waned within the period with a Daily Average Value Traded (DAVT) of N5.3billion. In the trading week to March 23, Nigerian stock market recorded a decline of 1.11percent week-on-week (WoW). Stock investors lost N21billion as the value of listed equities declined to N14.981trillion from a high of N15.002trillion the preceding week. Also, the Nigerian Stock Exchange (NSE) All Share Index (ASI) closed from a NASD sponsors investment readiness series In continuing its efforts to deepen the reach and impact of the capital market in the “real” economy, NASD sponsored an Investment Readiness Series organised by the Entrepreneurship Development Centre (EDC). The session, which was well attended by alumni of EDC and other growth focused enterprises, featured presentations on preparing growth enterprises for investments, a panel session focused on What Investors and Funders look out for, and a presentation by NASD OTC on the benefits and framework of the NASD Enterprise Portal (NASDeP). Participants also had the opportunity to listen to some registered NASDeP members such as PwC, on their role on the portal and the value they bring growth enterprises in packaging their businesses and refining strategic initiatives for growth Key takeaways from the session include: to attract the right funding to your enterprise; ensure that entrepreneurs keep proper financial records; have a good team and a strong business or investment case; adhere to good corporate governance and high of 41,935.93 points to 41,472.10 points. The market’s Year-to-Date (YtD) returns currently stands at +8.44percent. Despite the renewed investor interest in the Nigerian Equities Market in the last trading week in February- following expectations of positive results which led to positioning in fundamentally sound dividend paying stocks, the NSE ASI closed the month down 2.28percent. Amongst markets under review, the NSE ranked as one of the least performing markets in the month under review on the back of contagion effects of downturn in global markets. Insurance sector proved to be the only one in positive region and this may be attributed to the impact of revised price floor. The news of an economic expansion of 1.92percent in Gross Domestic Product (GDP) and a positive Purchasers Managers Index (PMI) further upheld positive investor sentiments at month end. Domestic participation continued to lead market activities marginally accounting for 51.4percent of market transactions with the period. Retail (mainly high networth investors (HNIs) and Institutional investors including PFAs largely drove trades in the domestic space. However, foreign investor participation increased from 32.4percent in January to 48.6percent in February 2018. The prominent sectors within the month include Financial Services, Consumer Goods and Industrial Goods, with most trading activity in Guaranty Trust Bank (GTB), Zenith Bank and FBN Holdings. Top ten brokers drove 61.79% of total transaction value and 50.92% of total volumes traded in February 2018 The month of February witnessed unstable crude oil prices. However, the nation’s FX reserves continued to rise steadily within theperiod, signifying that the FX market will remain liquid to support Foreign Portfolio Investors (FPI) flows. Reduced transaction levels in IEFX window could be attributed to slowed momentum in FPI activities as they chose to stay on the sidelines in early February. transparency standards; and pay attention to the legal and regulatory matters that affect their business. NASDeP plays a leading role in easing the funding challenges of enterprises, reducing reliance on expensive debt, and providing access to SEC licensed capital market professionals who are able to provide financial capital, and strategic and managerial synergies. NASDeP also aligns with the Economic Recovery & Growth Plan (ERGP) to reinvigorate the Nigerian economy and restore growth by attracting sustainable investments into our indigenous enterprises. Development Bank of Nigeria, NIRSAL signs MOU to promote agric lending The Development Bank of Nigeria Plc (DBN) and the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) have signed a memorandum of understanding aimed at promoting lending to the Agricultural sub-sector of the economy and its value chain. The signing ceremony which took place yesterday at the NIRSAL Headquarters in Maitama, Abuja is a strategic collaboration that will impact positively on Agriculture and all the value chain players and thus; address the concerns of financial institutions on the high risk of lending to the sector. “The Micro Small and Medium Scale Enterprises (MSMEs) if well managed have the potential to achieve key macro- economic objectives of the Federal Government which include, but are not limited to job creation, poverty alleviation, financial inclusion, development of technology and so on”, said Tony Okpanachi, Managing Director of DBN. He went further to state that the core mandate of Development Bank of Nigeria (DBN) is to alleviate financing constraints faced by the MSMEs and small corporates in Nigeria through the provision of financing and partial credit guarantees to eligible financial intermediaries on a market -conforming and on a sustainable basis’’. On his part, Aliyu Abdulhameed, Managing Director of NIRSAL informed that ‘’NIRSAL’s primary mandate is to facilitate the flow of credit, finance and investments into Agriculture and Agribusiness.’’ According to him, ‘’NIRSAL believes strategic collaborations with major stakeholders in the industry is pivotal to achieving defined and well-tailored objectives and results. It is in line with this view, that the partnership with Development Bank of Nigeria (DBN) is structured. As Development Finance Institutions, NIR- SAL and DBN share a common goal of supporting investments that will catalyse sustainable economic growth, create more jobs and equip farmers with the capital needed to thrive in the Agricultural sector’’. Under this partnership, NIRSAL is expected to provide risk mitigating credit guarantees while DBN is expected to provide the funds for on lending to MSMEs in the agricultural sub-sector and its value chain.
Monday 26 March 2018 ‘Bill Gates’ comments vindicate Nigerians resolve to kick out Buhari’ OWEDE AGBAJILEKE, Abuja People’s Democratic Party (PDP) says the verdict by American business magnate, investor and principal founder of the Microsoft Corporation, Bill Gates, that President Muhammadu Buhari’s economic policies are anti-people has justified the resolution by Nigerians to kick out the dysfunctional All Progressives Congress (APC) and its Federal Government come 2019. The PDP says the verdict has also vindicated its stand that the Buhari administration is the worst in the history of our nation; that it never had the interest of the people at heart, and has been lying to Nigerians with false performance indices and cosmetic appearances, while its agents continue to siphon funds meant for the welfare Business model for airports under threat globally Changes in passenger behaviour will require skilful management by airports worldwide, as airports are facing a significant challenge to their current business models, S&P Global infrastructure ratings senior director, Mar Beltran, has warned. The challenge comes from important changes in the behaviour of passengers using their facilities. Airports have benefitted from a boom in air travel over the past 30 years. This has been driven by airlines cutting costs and reducing prices. Airports have expanded to meet the demand, cut their rates to airlines to attract more carriers, and made up the difference with commercial activities in their terminals. Low cost carriers, also of the people. PDP national publicity secretary, Kola Ologbondiyan, in a statement on Friday, said President Buhari and the APC could now see that the entire world was fully aware of their misrule and as such should stop wasting the nation’s resources on pointless image laundering and desperate quest for international endorsements. The PDP noted that Gates was just being polite to his host, President Buhari, when he said the policy of his government was not reflecting the needs of the people. “What Gates did not tell President Buhari and his team was that their administration is so incompetent, disorganised and confused that it could not develop any functional economic policy direction and that this has caused our nation her current economic woes. “Bill Gates comments on known as budget airlines, have played a key role in these developments. Today, in Europe, for example, low cost carriers account for 40 percent of the short-haul air traffic market. And they are now moving into long-range sectors, particularly routes across the North Atlantic. While these developments have brought much more business to airports, the past two years have seen passengers changing their behaviour at the terminals. They are spending less. Around the world, sales of duty free and travel retail outlets declined in 2015 and then stabilised at the lower levels in 2016. “This figure is worrisome if we take into account that in the face of this stagnation, the volume of passengers continued on the rise,” he pointed out. the Federal Government’s empty, deceptive and discredited Economic Recovery and Growth Plan (ERGP), right in the Presidential Villa and in the presence of Vice President Yemi Osinbajo, came to President Buhari and the APC as stunt gone awry as they had planned to use the world figure to earn an undue international endorsement ahead of 2019 elections. “More disheartening is that instead of being remorseful, officials of the APC administration, including Osinbajo, are attempting to put up a lame defence, despite the indicting facts. “The whole world is sad that under President Buhari and the APC, our dear nation, which was hitherto one of the most vibrant economies, has now become one of the most dangerous places to give birth, with the fourth worst maternal mortality rate Another important source of income for airports is the car parks they provide. But improved public transport links to airports, and the rise of services like Uber, have reduced the number of passengers driving themselves to airports and parking their cars at the terminals. On top of this, the medium to long-term increase in the number of electric and self-driving cars will add to the challenges. Airports will have to make investments in their parking facilities to meet the requirements of these vehicles (such as battery recharge points). “We are therefore facing a situation that seems to threaten the [airports’] current business model,” observed Beltran. S&P Global expects the returns of airports around the world to remain stable over the next two years. in the world. “This administration, in the last three years, has not been able to initiate any functional policy on health, education, housing, agriculture, electricity, industrial growth, effective economic empowerment and gainful employment, or any deliberate plan to grow a sustainable middle class in the country. “Instead, what Nigerians get is a sinking economy resulting from anti-people policies; multiple taxations, increased tariffs on essential commodities and services, increase in food prices, fuel price hike, huge foreign debts, a weakened currency and massive job loss while APC interests continue to fritter away trillions of naira for their selfish gains. “It is obvious that this Buhari administration derives joy in seeing Nigerians suffer hunger and starvation even in L-R: Oluwatoyin Sanni, group CEO, United Capital plc; Chika Mordi, chairman, United Capital plc; and Leo Okafor, company secretary, United Capital plc at the 2018 annual general meeting, held on Friday, in Lagos. MIKE OCHONMA C002D5556 BUSINESS DAY 43 NEWS National Assembly holds public hearing on 2018 budget estimates, Monday Light rail: Ambode holds talk with Japanese investors JOSHUA BASSEY Lagos State is seen in frantic efforts to secure investors for its long delayed ‘blue line’ rail project, as Akinwunmi Ambode, the governor, held talks with Japanese investors in Tokyo, Japan, where he has been the last one week. With a fast growing population estimated at over 21 million people, which confers a megacity status on Lagos, the need for an effective public transportation system in the state had never been more compelling. The 27.5 kilometres light rail designed to run from the Marina Waterfront, on the Island, to Okokomaiko, on the Mainland, and started under the former administration of Babatunde Fashola, in 2009, has not gone halfway, as the state is still on the phase one - between Mile 2 and Marina. KEHINDE AKINTOLA, Abuja Top government functionaries, policy makers including federal lawmakers and other stakeholders are expected to converge at the National Assembly today for the second edition of public hearing on 2018 budget estimate. The public hearing is co-organised by the joint Committee of the Senate and House of Representatives on Appropriations, and is scheduled to hold at the Conference Room 0.22 Senate Wing, National Assembly complex, Abuja. Some of the dignitaries expected to make presentation are: Senate President Bukola Saraki; Speaker Yakubu Dogara; Kemi Adeosun, minister of finance; Udoma Udo Udoma, minister of budget and national planning, as well as Ben Nwabueze, director-general, Budget Office of the Federation. Others include: Civil Society Organisations (CSOs) and Non-Government Organisations (NGOs). Dogara had during Wednesday plenary session directed all the standing committees to conclude consultations with the ministers and heads of various Ministries Departments and Agencies (MDAs) and submit their reports to the Appropriations Committee. Dogara, who noted that harmonised copy of the 2018 budget would be laid before both chambers on April 19, assured Nigerians that the 2018 budget would be passed by April 24, 2018. In the same vein, Saraki had on March 22, mandated all the Sub-Committee on Appropriations to submit their reports on the 2018 budget between 12 noon On assumption of office in 2015, Ambode had projected to complete the project in 2016. However, in 2018, the state government is now uncertain when the project to which N50 billion had so far been committed, would be completed and open to public use. In spite of its huge population, Lagos, West Africa’s economic hub, relies mostly on road transportation. Unlike other megacities around the world, the state lacks intra- and inter-city light rail connections while its water transportation system is yet to gain the confidence of residents due to intermittent boat mishaps and poor navigational infrastructure. As a result, the roads are mostly jammed, causing the state economy a whopping N42 billion monthly and addition to valued man-hours lost in transit daily. The state government has and 6pm as from: Thursday, March 22, to Monday, March 26, 2018 to Meeting Room 224, Senate building. Recall that President Muhammadu Buhari had a closed door meeting with Senate President Bukola Saraki and Speaker Dogara with the view to resolve the impasse. Following the President’s intervention, all the concerned Ministers were directed to resume the defence of their budget. The Appropriations Committee of both chambers are also expected to include the breakdown of the lump-sum of N100 billion approved for Zonal Intervention/Constituency Projects in the 2018 budget. The projects are to be implemented in the 109 senatorial districts and 360 federal constituencies across the country. One of the Legislative Aides privy to the workings of the House Committee on Appropriations informed BusinessDay that the joint Committee on Appropriations comprising of Loans, Aids and Debt Management; Finance, Appropriations and Budget Research Office are expected to convey next Wednesday to fine tune the budget proposals submitted by various MDAs. According to the documents presented by Debt Management Office (DMO) to the National Assembly, total new domestic borrowing was pegged at N849.674 billion for 2018. From the total sum of N2,013,835,365,699 proposed for utilisation of the public debt charges in 2018, the sum of N1,759,755,709,708 is for servicing of domestic debt while N254,079,655,991 is for servicing of external debt. identified funding as a major constraint to the early completion of the light rail project and other transportation infrastructure. The government believes the challenge can be addressed through Public Private Partnership (PPP) as it continues to seek local and foreign investors to complete some ongoing projects, including the ongoing expansion of the Lagos-Badagry expressway. Governor Ambode, in a meeting with the Japan-African Union Parliamentary Friendship Committee in Tokyo, said Lagos was ready for such partnership. “As a government, the renewal of infrastructure in Lagos State is of paramount interest to us. We cannot afford to miss the train of regeneration going around the world. We must continue to seek comprehensive and holistic solution to the various challenges confronting us.
Page 1 and 2: usinessday market monitor Commoditi
Page 3 and 4: Monday 26 March 2018 BUSINESS DAY 3
Page 11 and 12: Monday 26 March 2018 COMMENT C002D5
Page 15 and 16: Monday 26 March 2018 C002D5556 BUSI
Page 19 and 20: Monday 26 March 2018 C002D5556 BUSI
Page 21 and 22: Monday 26 March 2018 COMPANIES & MA
Page 25 and 26: Monday 26 March 2018 C002D5556 ERNE
Page 28 and 29: Monday 26 March 2018 26 BUSINESS DA
Page 30 and 31: 28 BUSINESS DAY C002D5556 Monday 26
Page 46 and 47: 44 BUSINESS DAY C002D5556 NEWS Inve
Page 50 and 51: Monday 26 March 2018 BUSINESS DAY A
Page 54 and 55: Monday 26 March 2018 Port Harcourt
Page 58 and 59: Monday 26 March 2018 FT FINANCIAL T
Page 60 and 61: Monday 26 March 2018 COMPANIES & MA
Page 62: BUSINESS DAY Insight NEWS YOU CAN T

BusinessDay 26 Mar 2018

Create successful ePaper yourself

Delete template?

Save as template?