24 — Vanguard, MONDAY, AUGUST 19, 2019 FINANCIAL VANGUARD Ekiti eyes capital market <str<strong>on</strong>g>to</str<strong>on</strong>g> fund infrastructure S<str<strong>on</strong>g>to</str<strong>on</strong>g>ries by Peter Egwuatu EKITI State Government has commenced moves <str<strong>on</strong>g>to</str<strong>on</strong>g> approach the capital market for funds that would enable it provide critical infrastructure. The Governor, Dr. Kayode Fayemi, who was at the <str<strong>on</strong>g>Nigeria</str<strong>on</strong>g>n S<str<strong>on</strong>g>to</str<strong>on</strong>g>ck Exchange, NSE, at the weekend <str<strong>on</strong>g>to</str<strong>on</strong>g> brief capital market community <strong>on</strong> the state’s ec<strong>on</strong>omy said: “We deemed it necessary <str<strong>on</strong>g>to</str<strong>on</strong>g> visit the s<str<strong>on</strong>g>to</str<strong>on</strong>g>ck exchange <str<strong>on</strong>g>to</str<strong>on</strong>g> inform the market about the level of development and the projects we intend <str<strong>on</strong>g>to</str<strong>on</strong>g> embark up<strong>on</strong>. We are also excited with the development in the s<str<strong>on</strong>g>to</str<strong>on</strong>g>ck exchange for providing and sustaining the channel of providing l<strong>on</strong>g term funds for development.” The governor, however, refused <str<strong>on</strong>g>to</str<strong>on</strong>g> disclose how much the State intend <str<strong>on</strong>g>to</str<strong>on</strong>g> raise saying at the appropriate time the market and regula<str<strong>on</strong>g>to</str<strong>on</strong>g>rs would be notified. Speaking at the event <strong>on</strong> “Investing in Ekiti: Facts behind the State ec<strong>on</strong>omy” he said: “We are revitalising the agricultural, manufacturing, mining, trade and <str<strong>on</strong>g>to</str<strong>on</strong>g>urism sec<str<strong>on</strong>g>to</str<strong>on</strong>g>rs, which <str<strong>on</strong>g>to</str<strong>on</strong>g>gether account for 75 percent of the state’s gross domestic product (GDP). “We are establishing <strong>on</strong>es<str<strong>on</strong>g>to</str<strong>on</strong>g>p investment promoti<strong>on</strong> centre and enterprise z<strong>on</strong>e industrial clusters; widespread road c<strong>on</strong>structi<strong>on</strong>s, electrificati<strong>on</strong> and ICT infrastructure; as well as rehabilitati<strong>on</strong> of Fountain Hotels and commencement of an Ekiti State Airport project. We have revitalised Ikogosi warm spring and the water is now <strong>on</strong> sale. “During my first term as Governor of Ekiti State we raised N20 billi<strong>on</strong> which was used in financing a number of projects including the Ikogosi warm spring redevelopment, the Ekiti Water Works INVESTORS’ negative sentiment c<strong>on</strong>tinued in the equity market <strong>on</strong> the <str<strong>on</strong>g>Nigeria</str<strong>on</strong>g>n S<str<strong>on</strong>g>to</str<strong>on</strong>g>ck Exchange, NSE, despite the N0.30kobo interim dividend declared by Guaranty Trust Bank Plc. Reacting <str<strong>on</strong>g>to</str<strong>on</strong>g> market downturn, analysts at Cowry Asset Management Limited said: “In this week, we expect the domestic bourse <str<strong>on</strong>g>to</str<strong>on</strong>g> close in red terri<str<strong>on</strong>g>to</str<strong>on</strong>g>ry amid persistent negative inves<str<strong>on</strong>g>to</str<strong>on</strong>g>r sentiment; although we expect value inves<str<strong>on</strong>g>to</str<strong>on</strong>g>rs <str<strong>on</strong>g>to</str<strong>on</strong>g> c<strong>on</strong>tinue <str<strong>on</strong>g>to</str<strong>on</strong>g> take advantage of the low s<str<strong>on</strong>g>to</str<strong>on</strong>g>ck prices and hold relatively l<strong>on</strong>g positi<strong>on</strong>s in order <str<strong>on</strong>g>to</str<strong>on</strong>g> benefit from the high yielding dividend returns.” Analysts at Afrinvest Research said: “Following the bearish performance last week, we expect sell pressures <str<strong>on</strong>g>to</str<strong>on</strong>g> dominate in the near-term given the generally negative mood and absence of catalyst <str<strong>on</strong>g>to</str<strong>on</strong>g> spur inves<str<strong>on</strong>g>to</str<strong>on</strong>g>r interest.” Meanwhile, market analysis last week showed that the benchmark NSE All Share Index (ASI) shed 1.4 percent Week-<strong>on</strong>- Week, W-o-W, <str<strong>on</strong>g>to</str<strong>on</strong>g> settle at 26,925.29 points while Year-<str<strong>on</strong>g>to</str<strong>on</strong>g>-Date, YtD, loss worsened <str<strong>on</strong>g>to</str<strong>on</strong>g> -14.3 percent. As a result, inves<str<strong>on</strong>g>to</str<strong>on</strong>g>rs lost N185.9billi<strong>on</strong> in value as market capitalisati<strong>on</strong> fell <str<strong>on</strong>g>to</str<strong>on</strong>g> N13.1trilli<strong>on</strong>. The bearish performance was largely due <str<strong>on</strong>g>to</str<strong>on</strong>g> sustained losses in Nestle (-10.0 percent), Stanbic IBTC (-3.8 percent) and Ecobank Transnati<strong>on</strong>al Incorporated, ETI (- 4.8 percent). However, activity level strengthened as average eTransact <str<strong>on</strong>g>to</str<strong>on</strong>g> c<strong>on</strong>solidate expansi<strong>on</strong> strategy with N7bn fresh capital c<strong>on</strong>structi<strong>on</strong>, as well as the refinancing of high-interest borrowings by the state. We have redeemed the m<strong>on</strong>ey we borrowed from the capital market.” In his own part, the Chief Executive Officer of the Exchange, Mr Oscar Onyema commended the governor for Equity market: Inves<str<strong>on</strong>g>to</str<strong>on</strong>g>rs’ negative sentiment persists volume and value rose 12.1 percent and 45.1 percent <str<strong>on</strong>g>to</str<strong>on</strong>g> 258.3milli<strong>on</strong> units and N3.5billi<strong>on</strong> n respectively. The <str<strong>on</strong>g>to</str<strong>on</strong>g>p traded s<str<strong>on</strong>g>to</str<strong>on</strong>g>cks by volume were Guaranty Trust Bank (228.1milli<strong>on</strong> units), SHAREHOLDERS of C<strong>on</strong>oil Plc have expressed optimism over a possible improvement in the company’s returns <strong>on</strong> investment, in line with its traditi<strong>on</strong> of delivering good dividend. In his address <str<strong>on</strong>g>to</str<strong>on</strong>g> shareholders at the 49th Annual General Meeting, AGM, of the company in Uyo, Akwa Ibom State, the Transcorp (96.1milli<strong>on</strong> units) and Zenith Bank (91.9milli<strong>on</strong> units) while Guaranty Trust Bank (N5.9billi<strong>on</strong>), MTN (N1.9billi<strong>on</strong>) and Dangote Cement (N1.7 billi<strong>on</strong>) led by value. taking the bold step <str<strong>on</strong>g>to</str<strong>on</strong>g> visit the market. He said: “You have increased the proporti<strong>on</strong> of capital <str<strong>on</strong>g>spend</str<strong>on</strong>g>ing in the 2019 budget <str<strong>on</strong>g>to</str<strong>on</strong>g> 44 percent from 31 percent in 2018; and channelled budgetary resources <str<strong>on</strong>g>to</str<strong>on</strong>g>wards pro-growth projects. At the NSE, we recognize that <str<strong>on</strong>g>to</str<strong>on</strong>g> build a sustainable ec<strong>on</strong>omy for the estimated 3.5 milli<strong>on</strong> citizens of Ekiti State, supported by vibrant sec<str<strong>on</strong>g>to</str<strong>on</strong>g>rs, both stateowned and private sec<str<strong>on</strong>g>to</str<strong>on</strong>g>r enterprises will require access <str<strong>on</strong>g>to</str<strong>on</strong>g> right-sized capital. We have been l<strong>on</strong>gstanding partners with Ekiti State in accessing such capital.” C<strong>on</strong>oil assures shareholders of improved returns Chairman, Dr. Mike Adenuga, stated that despite the challenges of a <str<strong>on</strong>g>to</str<strong>on</strong>g>ugh operating envir<strong>on</strong>ment in the downstream petroleum sec<str<strong>on</strong>g>to</str<strong>on</strong>g>r, C<strong>on</strong>oil c<strong>on</strong>tinued <str<strong>on</strong>g>to</str<strong>on</strong>g> record progress <str<strong>on</strong>g>to</str<strong>on</strong>g>wards delivering superior shareholder value. “Every segment of our business will c<strong>on</strong>tinue <str<strong>on</strong>g>to</str<strong>on</strong>g> receive the desired attenti<strong>on</strong> with a view <str<strong>on</strong>g>to</str<strong>on</strong>g> maintaining world class levels of Fidelity Bank surpasses CBN’s 60% LDR requirement By Emma Ujah, Abuja Bureau Chief FIDELITY Bank Plc has surpassed the 60 per cent Loan <str<strong>on</strong>g>to</str<strong>on</strong>g> Deposit Ratio (LDR) requirement of the Central Bank of <str<strong>on</strong>g>Nigeria</str<strong>on</strong>g> (CBN). The Regi<strong>on</strong>al Bank Head, Abuja Bank 1, Ms. Venessa Mordi, disclosed this at the just-c<strong>on</strong>cluded training programme for Small and Medium Enterprises (SMEs) opera<str<strong>on</strong>g>to</str<strong>on</strong>g>rs in Abuja. According <str<strong>on</strong>g>to</str<strong>on</strong>g> her, the Fidelity Bank’s LDR ratio was already above 80 per cent and that it was made possible due <str<strong>on</strong>g>to</str<strong>on</strong>g> the organisati<strong>on</strong> clear understands of the role of banks as financial intermediaries. She said, “We have achieved over 80 per cent in terms of Loan <str<strong>on</strong>g>to</str<strong>on</strong>g> Deposit ratio. We believe that the business of banking is financial intermediati<strong>on</strong>. The job of banking is taking from the haves and giving it <str<strong>on</strong>g>to</str<strong>on</strong>g> the havenots. So we have tried <str<strong>on</strong>g>to</str<strong>on</strong>g> see where the needs are. Most of the loans we have given are in this sec<str<strong>on</strong>g>to</str<strong>on</strong>g>r, the SMEs. operating and capital discipline. We believe that the future holds a lot of promise for our shareholders, the company will surely reward them for their steadfastness and unwavering faith in its prospects,” Adenuga said. For the financial period ended December 31, 2018, C<strong>on</strong>oil profit before tax rose by 11.4 percent <str<strong>on</strong>g>to</str<strong>on</strong>g> N2.6 billi<strong>on</strong> from N2.3 billi<strong>on</strong> in 2017, while profit after tax soared <str<strong>on</strong>g>to</str<strong>on</strong>g> N1.8 billi<strong>on</strong> from N1.6 billi<strong>on</strong>, representing 13.8 percent increase. Turnover rose by 5.8 percent <str<strong>on</strong>g>to</str<strong>on</strong>g> N122 billi<strong>on</strong> from N115 billi<strong>on</strong>. At the meeting, shareholders ratified a <str<strong>on</strong>g>to</str<strong>on</strong>g>tal dividend cash payment of N1.4 billi<strong>on</strong>, which translates <str<strong>on</strong>g>to</str<strong>on</strong>g> 200kobo for every 50kobo share held. Adenuga attributed C<strong>on</strong>oil’s achievement in the financial year under review <str<strong>on</strong>g>to</str<strong>on</strong>g> the commitment of the Board and management of the company <str<strong>on</strong>g>to</str<strong>on</strong>g> deliver solid financial results, in spite of the enormous challenges that c<strong>on</strong>fr<strong>on</strong>ted opera<str<strong>on</strong>g>to</str<strong>on</strong>g>rs in the downstream oil sec<str<strong>on</strong>g>to</str<strong>on</strong>g>r, including the prohibitive cost of procuring petroleum products. By Nkiruka Nnorom eTRANSACT Plc, an e- payment soluti<strong>on</strong> provider listed <strong>on</strong> the <str<strong>on</strong>g>Nigeria</str<strong>on</strong>g>n S<str<strong>on</strong>g>to</str<strong>on</strong>g>ck Exchange, NSE, has said that the proposed fresh capital raising of N7 billi<strong>on</strong> would help the company <str<strong>on</strong>g>to</str<strong>on</strong>g> move <str<strong>on</strong>g>to</str<strong>on</strong>g> the next level of its expansi<strong>on</strong> drive, which started in 2018. The company also revealed that it processed over 400 milli<strong>on</strong> data transacti<strong>on</strong>s valued at N30 trilli<strong>on</strong> in 2018. The Managing Direc<str<strong>on</strong>g>to</str<strong>on</strong>g>r/CEO, Mr. Niyi Toluwalope, who disclosed these at a media parley in Lagos, said that the company is awaiting approval from the Securities and Exchange Commissi<strong>on</strong>, SEC, and the Central Bank of <str<strong>on</strong>g>Nigeria</str<strong>on</strong>g>, CBN, <str<strong>on</strong>g>to</str<strong>on</strong>g> proceed with the offer, which he hoped would be c<strong>on</strong>cluded before the end of 2019 financial year. The company had earlier in the year secured shareholders nod for the capital raising exercise. He said that the company has reviewed and streamlined its strategies since June 2018 when the new management assumed positi<strong>on</strong> <str<strong>on</strong>g>to</str<strong>on</strong>g> align with its future focus and the roles it plans <str<strong>on</strong>g>to</str<strong>on</strong>g> play in the financial technology and electr<strong>on</strong>ic payment space. “The major use of the capital we plan <str<strong>on</strong>g>to</str<strong>on</strong>g> raise is <str<strong>on</strong>g>to</str<strong>on</strong>g> invest and expand our technology capability as well as our bandwidth and processing capabilities. It will also help us <str<strong>on</strong>g>to</str<strong>on</strong>g> deepen our network security systems and human capital strategy. We believe that we are here for the l<strong>on</strong>g run and the injecti<strong>on</strong> of additi<strong>on</strong>al equity would enable the management <str<strong>on</strong>g>to</str<strong>on</strong>g> strategically maintain the company’s leading positi<strong>on</strong> within the electr<strong>on</strong>ic payment industry” he stated.
C M Y Vanguard, MONDAY, AUGUST 19, 2019 — 25
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