Headlines news for the day. – First Ideas Limited

Headlines news for the day.

Illegal multiple checkpoints continue to sabotage electronic call-up system

Despite the implementation of electronic call-up system, security officials known as ‘enforcement team’ employed by the government to monitor truck movement in and out of Apapa and Tin-Can Island ports, have been found compounding the traffic gridlock by creating multiple checkpoints to extort money from truckers

N6bn in-flight catering market takes hit as airlines slow to resume

The business of local in-flight catering is currently hurting, as some airlines operating in Nigeria have failed to resume these services on the local routes. Ticket prices have however either remained at pre-COVID levels or even increased.

Stock investors gain N163bn as buy-side activity strengthens

The buy-side activity level on Nigerian Exchange strengthened further on Tuesday August 3 as investors continued to bargain hunt across sectors.

Investors in equities gained about N163billion at the close of trading – thanks to investors who raised bet on shares of Airtel Africa Plc, making the stock to rally most on the Bourse, from a low of N615 to N650, up N35 or 5.69percent.

Airtel on Tuesday announced first closing relating to the Airtel Money minority investment transactions with both TPG’s The Rise Fund and Mastercard previously announced by the Group on March 18, 2021 and April 1, 2021 respectively.

“With the conditions for first closing having now been met, The Rise Fund and Mastercard have invested $150million and $75million respectively in a secondary purchase of shares in AMC BV from a subsidiary of Airtel Africa, with a further $50million and $25million respectively to be invested at second close upon further transfers of mobile money operations into AMC BV.

“Under the AMC BV shareholders’ agreement, The Rise Fund is now entitled to appoint a director to the board of AMC BV and both Mastercard and The Rise Fund now have certain customary information and minority protection rights”, Airtel said.

As previously reported, the proceeds from these transactions will be used to reduce Group debt and invest in network and sales infrastructure in the respective operating countries.

Also, Cutix Plc made the top advancers’ list after its share price increased from N4.81 to N5, up by 19kobo or 3.95percent.

Meanwhile, the share price of Honeywell Plc decreased most from day open high of N1.67 to N1.54, down by 13kobo or 7.78percent.

This record positive came despite diminishing market reception of first-half (H1) corporate earnings on the Exchange.

The Nigerian Exchange Limited (NGX) All-Share Index (ASI) and Market Capitalisation increased by 0.81percent, from preceding trading day’s lows of 38,604.72 points and N20.113trillion respectively to 38,917.99 points and N20.276trillion. The negative return seen year-to-date (Ytd) on the Bourse decreased to -3.36percent.

Transnational Corporation, Jaiz Bank, Honeywell, Wema Bank and Mutual Benefit were most traded stocks on the NGX on Tuesday. In 4,651 deals, equity buyers exchanged 231,451,362 units valued at N2.132billion.

Shipping losses at historic lows, as Covid, Mega-ship remain challenge – Allianz

The international shipping industry continued its long-term positive safety trend over the past year but has to master Covid challenges, apply the learnings from the Ever Given Suez Canal incident and prepare for cyber and climate change challenges ahead

MTN shares surge as US judge hints at end to anti-terror case

An ongoing US antiterrorism case looks to have turned in mobile operator MTN’s favour as a judge recommended that the case be dismissed, sending shares shooting up more than 8% on Monday

IMF Governors Approve a Historic US$650bn SDR Allocation of Special Drawing Rights

The Board of Governors of the IMF has approved a general allocation of Special Drawing Rights (SDRs) equivalent to US$650 billion (about SDR 456 billion) on August 2, 2021, to boost global liquidity.

“This is a historic decision – the largest SDR allocation in the history of the IMF and a shot in the arm for the global economy at a time of unprecedented crisis. The SDR allocation will benefit all members, address the long-term global need for reserves, build confidence, and foster the resilience and stability of the global economy. It will particularly help our most vulnerable countries struggling to cope with the impact of the COVID-19 crisis,” IMF Managing Director Kristalina Georgieva said.

The general allocation of SDRs will become effective on August 23, 2021. The newly created SDRs will be credited to IMF member countries in proportion to their existing quotas in the Fund.

About US$275 billion (about SDR 193 billion) of the new allocation will go to emerging markets and developing countries, including low-income countries.

“We will also continue to engage actively with our membership to identify viable options for voluntary channeling of SDRs from wealthier to poorer and more vulnerable member countries to support their pandemic recovery and achieve resilient and sustainable growth”, Ms. Georgieva said.

One key option is for members that have strong external positions to voluntarily channel part of their SDRs to scale up lending for low-income countries through the IMF’s Poverty Reduction and Growth Trust (PRGT). Concessional support through the PRGT is currently interest free. The IMF is also exploring other options to help poorer and more vulnerable countries in their recovery efforts. A new Resilience and Sustainability Trust could be considered to facilitate more resilient and sustainable growth in the medium term.

Julius Berger Reports N4.8bn Loss in Q2 2021 Results,(Share Price:N24.50k)

Julius Berger Nigeria Plc released its Q2 2021 Unaudited results for the period ended June 30th, 2021.

 Key Highlights

  • Revenue grew by 43% to N146bn from N102bn in the previous quarter.
  • Profit before tax stood at N6bn.
  • Profit after tax stood at N4.8bn.
  • Net Assets grew by 30% from N38bn to N49bn.
  • Share Price Currently Stands at N24:50k


 2021 N’m2020 N’m% Change
Basic EPS(N)3.040.0130300.00%

·                     BALANCE SHEET INFORMATION

Net Asset49,00537,69530.00%

MTN Nigeria Reports N141bn PAT in Q2 2021 Results, Proposes N4.55K Interim Dividend;(SP:N165.00k)

MTN Nigeria Communications Plc released its Q2 2021 Unaudited results for the period ended June 30th, 2021.

 Key Highlights

  • Revenue grew by 24% to N791bn from N638bn in the previous quarter.
  • Profit before tax grew by 54% to N215bn.
  • Profit after tax grew by 49% to N142bn.
  • Net Assets grew by 12% from N178bn to N200bn.
  • Share Price Currently Stands at N165:00k


 2021 N’m2020 N’m% Change
Basic EPS(N)6.974.6649.57%

·                     BALANCE SHEET INFORMATION

Net Asset200,121178,38612.2%

Corporate Declaration

Proposed Dividend                          N4.55

Qualification date                            19-Aug-21

Payment date                                   27-Aug-21

Closure date                                     20-Aug-21

Senate Alleges Irregularities in FG’s N1.1tn Investments in UK Firm, Others

 – The Senate says it has uncovered irregularities in the Federal Government’s investments in Crown Agents Bank and some other financial institutions amounting to N1.1tn

Federal Govt Executing 895 Road, Bridge Contracts, Says Fashola 

– Minister of Works and Housing, Babatunde Fashola, said the federal government is currently undertaking 895 road and bridge contracts as well as fixing internal roads in 43 tertiary institutions in the country

SEC Inaugurates Securities Issuers Forum

– The Securities and Exchange Commission (SEC) in collaboration with the Nigeria Employers’ Consultative Association (NECA) is set to inaugurate the Securities Issuers Forum (SIF) through an online webinar. Source by SEC Nigeria

Naira Depreciated by -2.40% WoW in the Parallel Market at an Average Exchange Rate of N512

 – In the FX Spot, Forwards and Futures markets, the total turnover for the week-ended July 30, 2021, was $902.45 million, representing an increase of 98.43% ($447.66 million) from $454.79 million reported for the week-ended July 23, 2021. Source by FMDQ

NNPC Plans Policy Guidelines for Divesting IOC Partners

– The Nigerian National Petroleum Corporation has said it would outline policies to guide partners (International Oil Companies) of the corporation who wish to divest from joint ventures or the Nigerian oil and gas industry.

CBN to Monitor Banks’ Foreign Exchange Sale

 The Central Bank of Nigeria’s (CBN’s) has assured the public that it will monitor commercial banks to ensure they meet the legitimate Foreign Exchange (FX) customers’ demands. This is coming after the apex’s directive to Deposit Money Banks (DMBs) to sell foreign exchange to customers, for invisibles such as Basic Travelling Allowance (BTA), medical and tuition etc.  

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First Ideas Limited is an investment and financial advisory company established in 1994 to provide advisory services to high net worth individuals, trust funds, financial institutions and medium sized companies in growth sectors.

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