GCR Assigns a National Scale Long Term Issue Rating of A+(NG) to Lagos State Government’s N137.3bn Series IV Bonds
GCR Ratings (“GCR”) has assigned a national scale long term Issue rating of A+(NG) to Lagos State Government’s (“Lagos State”, “the State”, or “the Issuer”) N137.3bn Series IV Senior Unsecured Fixed Rate Bonds, with the Outlook accorded as Positive. Source GCR Ratings Read More
Economic Warfare: The Weaponization of Sanctions & Currency
Since time immemorial, human beings have waged war. Conflict is as ingrained into human nature as selfinterest and the need to socialize. What is not set in stone, however, are the ways in which humanity has chosen to resolve conflict throughout the millennia. Source Proshare Read More
Rising Inflation, Others Threaten Buhari’s Poverty Reduction Scheme – World Bank Economists
World Bank economists, Jonathan Lain and Jakob Engel, have said that rising inflation, persistent population growth, the COVID-19 pandemic, and the war in Ukraine are threatening Nigeria’s poverty reduction aspiration. Source Punch Read More
Lagos Ports Collapsing, Cargo Diversion to West African Countries Imminent
There are indications that the nation may soon start experiencing more cargo diversions to neighbouring West African ports as well as increase in freight rates due to the collapse of both Tin Can and Apapa quay aprons. Source Punch Read More
FG: Disagreements Among Concessioners Delaying Take-off of $3.1bn e-Customs Project
The federal government has explained why the $3.1 billion contract for complete automation of the Nigeria Custom Service (NCS) approved by the Federal Executive Council (FEC) in 2020 was reversed. Source THISDAYLIVE Read More
Saudi Arabia to Raise Oil Production if Russian Output Falls Under Sanctions – FT
Saudi Arabia is prepared to raise its oil production if Russia’s output falls substantially because of the western sanctions imposed on it, the Financial Times reported on Wednesday, citing sources. Source Reuters Read More
Telcos Record 6.18 million New Subscribers in Four Months – NCC
6.18 million Global System for Mobile Communications subscribers joined the national network between January and April this year, according to a new industry statistic from the Nigerian Communications Commission. Source Punch Read More
South Korea to Support Nigeria with $13m on E-government Plan
The Republic of South Korea is to support Nigeria with $13 million on the implementation of the second phase of the Nigerian e-government national master plan 2021-2026, through the Korean International Cooperation Agency (KOICA). Source THISDAYLIVE Read More
Nigeria Recorded N2tr E-Commerce Trade In 2020
Nigeria recorded a $5 billion (N2.075 trillion) transaction on the e-commerce platform in 2020, said the Executive Director/Chief Executive Officer, Nigerian Export Promotion Council (NEPC), Dr Ezra Yakusak. Source Daily Trust Read More
How The IsDB Is Safeguarding Food Security for its Member Countries
At a recent webinar organized by the Islamic Development Bank, IsDB, and International Centre for Biosaline Agriculture, ICBA, H.E. Dr. Mansur Muthar, Vice President, Country Operations, Islamic Development Bank, IsDB was the keynote speaker. Source Bukola Akinyele-Yisau Read More
Enforcement of Credit Risk Regulations to Begin August 1, CBN tells OFIs
The Central Bank of Nigeria (CBN) has mandated the enrolment of other financial institutions (OFIs) on the credit risk management system (CRMS). Source TheCable Read More
Investors Lose N85.38bn as NGXASI Dips by -0.30%; Overnight Rates Closes at 6.17%; IEFX Rate Depreciates to N419.50
1. EQUITIES MARKEt
1.1 NGX – Listed Equities
Nigerian Equities Market maintained negative market sentiment as sell pressure persist at the close of trading today.
The NGX All-Share index dipped further by -0.30% to close at 52,815.78 basis points as against -0.03% loss recorded at the end of the previous trading session. In Naira terms, the NGX Market CAP records N85.38bn loss
YTD, the NGXASI Stands at +23.64%
The total volume traded declined by -7.08% to close at 274.43m, valued at N4.03bn and traded in 5,011 deals. FBNH was the most traded stock by volume with 74.66m units traded, while FBNH was the most traded stock by value which is put at N836.14m.
Sectoral performance was broadly negative as two (2) NGX sector indices closed northward, fourteen (14) closed southward while four (2) closed flat. The NGX Growth Index inched up by +0.27% while the NGX MERIVAL Index dipped by -1.79% to top all sector indices otherwise.
Gote index closed red with -0.06% loss recorded to close at 144.74 basis points while Toni index also closed red with -1.07% loss recorded to close 116.56 basis points.
At the close of trading, market recorded 11 gainers to 25 losers and 70 unchanged. ELLAHLAKES topped the list of gainers as ROYALEX topped the list of losers. Thus, market breadth closed negative.
Volume and Value Contribution
FBNH led the volume chart with 41.25% contribution and closely followed by TRANSCORP and ZENITHBANK.
FBNH led the value chart with 15.97% contribution and closely followed by ZENITHBANK and GTCO.
NGX Earnings Summary
No Financial statement was released on the NGX today.
NGX Corporate News
Stanbic IBTC Holdings Plc has announced that its Board of Directors has decided to audit its Half Year Financial Results. Accordingly, the Audited Results for the Half Year Ending 30 June 2022 will be presented to the Central Bank of Nigeria (CBN) for approval, following which the said Financial Statements will then be released to the Market no later than 29 August 2022.
Union Bank of Nigeria Plc has announced the completion of core investors’ sale of majority shareholding to Titan Trust Bank. This follows the notification in December 2021 of the execution of a Share Sale and Purchase Agreement (SSPA) between the Bank’s majority shareholders – Union Global Partners Limited, Atlas Mara Limited, et al. – and Titan Trust Bank Limited (TTB), and the subsequent receipt of all necessary regulatory approvals, Union Bank hereby notifies Nigerian Exchange Limited (NGX), the Securities & Exchange Commission and members of the public of the completion of the transaction under the SSPA, which effectively transfers 93.41% of Union Bank’s issued share capital to TTB
1.2 NASD OTC Exchange – Unlisted Equities
The NASD market index dipped by -0.47% to close at 762.38 basis points as against -0.53% loss recorded previously.
The total volume traded declined by -96.82% to close at 267,046 units valued at N18.38m and traded in 12 deals.
At the close of trading, NASD OTC market recorded 0 gainer(s) to 2 loser(s)
Volume and Value Contribution
SDCSCSPLC led the volume chart with 57.11% contribution
SDNDEP led the value chart with 82.67% contribution
NASD Earnings Summary
No Financial statement was released on the NASD OTC Exchange today.
NASD Corporate News
No Corporate News was released on the NASD OTC Exchange today.
1.3 Global Indices
On the global scene, the Canadian Index leads the top five gainers with 1.34% gain while the Belgium BEL-20 Index tops the top five losers with -2.34% loss as of 4pm Nigerian Time
1.4 African Indices
Similarly on the African scene, the Zimbabwe All Share Index tops the top five gainers with 1.53% gain while the Namibia Index tops the top five losers with -1.82% loss as of 4pm Nigerian Time
2. BONDS AND FIXED INCOME MARKETS
2.1 Debt Market Size
The FMDQ Debt Market Size was not available as at the time of finalizing this report..
2.2 Overnight and Open Repo (OPR)
The overnight lending rate declined by 0.83% to close at 6.17% while the Open Repo (OPR) rate also declined by -0.33% to close at 6.00%
3. COMMODITIES MARKET
3.1 AFEX Indices
The ACI declined by -1.37% to close at 459.42 basis points as against previous figure of 465.80 while the AEI closed flat at 197.95 basis points.
3.2 AFEX Commodity Prices
Sesame and Paddy Rice both moved up by 15.47% and 9.54% respectively while Cashew and Maize both declined by 18.77% and 15.58% in that order.
3.3 Global Commodity Prices
Gold recorded 1.27% gain while Silver also advanced by 2.34% as of 12:37 NY time
In the energy market, Brent advanced by 1.47% while WTI also advanced by 1.60% as of 11:37AM Central Daylight Time (CDT)
4. CURRENCY/ FX MARKET
The naira depreciated at the I&E FX Window by 0.12% to close atN419.50/USD while the NAFEX rate appreciated by 0.06% to close at N419.14.
Source: FMDQ, BDC
APC’s electricity promise falls short
The All Progressives Congress (APC), Nigeria’s ruling party, has delivered far less electricity to homes and businesses than it pledged seven years ago as supply continues to wobble. The country’s beleaguered power sector is seen to be moving at a snail pace despite over N1.6 trillion interventions by President Muhammadu Buhari’s administration, which clocked seven this week.
For decades, the country has suffered from chronic shortages of power, and repeated promises to fix the problem have long been a staple of election campaigns.
Meyer, Wema, Guinness, two others surpass 100% return
Meyer Plc, one of Nigeria’s major manufacturers and marketers of paints, and four other companies topped the chart of stocks with returns of over 100 percent in five months to May 31. The others are Wema Bank Plc, Academy Press Plc, Guinness Nigeria Plc, and Cadbury Nigeria Plc.
FEC approves ₦22b contracts for Police, oil and gas sector
The Federal Executive Council, ( FEC) on Wednesday approved sundry contracts in the sum of ₦22 billion for the Ministry of Police Affairs, Oil and gas, as well as the power sectors. Maigari Dingyadi, Minister of Police Affairs, while briefing State House Journalists after the FEC meeting, presided over by Vice President Yemi Osinbajo, said the Council gave approval to the Nigerian police Trust Fund, to award contracts for the supply of 82 operational vehicles, Toyota brand for the efficient operation of Nigerian police at the total cost of N2.2 billion.
“We also had approval for supply of customized police raincoat for distribution to police across the country at the cost of N1.9 billion. Also customized Police boots at the cost of N576 million. We also got approval for the supply of micro first aid kits for the police at the cost of N1 billion as well as customized instructional materials for the police colleges and schools at the cost of N664 million.
The Council also approved contracts for the supply of drugs and medical equipment for police hospitals across the country at the cost of N2 billion.
“ When you add all these,projects, they will come up to 8,315,209,825 billion..
Fairly-used gadgets demand rising amid inflation
A growing number of Nigerians are resorting to fairly-used tech gadgets to survive persistent inflation, which has led to a surge in the prices of new products. A fairly-used tech gadget, according to experts, is an electronic device that has been carefully used by..
Meta’s COO to step down after 14 years
Sheryl Sandberg, chief operating officer of Meta, the parent company of Facebook is leaving after serving the company for 14 years. Sheryl Sandberg joined Meta, formerly known as Facebook, in 2008 as the second in command of the social media giant.
Letter from leading lawyer is latest salvo in push to end Nigeria’s multiple FX rates
Leading lawyer and activist Femi Falana is seeking a clear timeline for the elimination of Nigeria’s irritating multiple FX rates which some blame for holding back badly needed foreign investment from the country. Falana has written the governor of the Central Bank of Nigeria, Godwin Emefiele requesting precise information on the abolition of the multiple exchange rates in the country.
Falana writing under Nigeria’s Freedom of Information law wrote to Emefiele asking him to provide information about the CBN’s plans to unify the exchange rates in the country
Kasada Albatross Holding to buy Southern Sun Ikoyi for US$30.4m
Kasada Albatross Holding, a Mauritius-based subsidiary of Kasada Hospitality Fund LP, is set to buy Southern Sun Ikoyi from Tsogo Sun Hotels in a US$30.4 million deal. The acquisition deal is now at an advance after a Sale of Shares Agreement between Southern Sun Africa (SSA) and Kasada Albatross Holding , which requires SSA to dispose of all of its sale shares in its wholly owned subsidiary, Southern Sun Ikoyi Holdings (SSIH) together with all shareholder loan claims against Ikoyi Hotels Limited (IHL) to the purchaser.
As at March 31, 2022, the value of the net assets of IHL was US$ 41.0 million while Southern Sun Africa Group’s 75.55 percent share of IHL’s net asset value equates to US$ 31.0million
FG approves Nigeria-Morocco gas pipeline construction
The Federal Executive Council (FEC) has given the Nigerian National Petroleum Corporation (NNPC) the nod to sign a memorandum of understanding with the Economic Community of West African States (ECOWAS) for the construction of the Nigeria-Morocco Gas Pipeline. The approval comes as African gas supplies to Europe become more important, with the Ukraine crisis putting Russian energy exports in doubt..
UAC of Nigeria Completes N18.7bn Series 1 and 2 Commercial Paper Issuance Under its N45bn Commercial Paper Programme
UAC of Nigeria PLC is pleased to announce the successful completion of its ₦18.7 billion Series 1 and 2 Commercial Paper issuance (the “CP Issuance”), the debut issuance under its recently established ₦45 billion Commercial Paper Programme.
UAC’s CP Issuance was very well received and attracted significant demand from a wide range of investors including pension fund administrators, asset managers, insurance companies and high net-worth individuals. The CP Issuance comprised two tenors – a 90-day Series 1 issuance which priced at 8.00% yield, and a 181-day Series 2 issuance which priced at 8.25% yield. This reflects the strong credit quality of the Company and investors’ positive sentiment towards UAC’s operations and strategy.
The CP issuance, which was 3.8x subscribed, was part of the intra-group treasury arrangement between UAC and its subsidiaries aimed at meeting short-term working capital requirements.
Stanbic IBTC Capital Limited acted as Lead Arranger and Dealer to the CP Issuance, while FCMB Capital Markets Limited acted as Joint Dealer to the CP Issuance. Banwo & Ighodalo acted as Solicitors to the Transaction.
Commenting on the significance and success of the CP Issuance, Mrs. Funke Ijaiya-Oladipo, Group Finance Director of UAC, said: “We are delighted to have successfully completed our first CP Issuance in the Nigerian debt market. This is truly a testament to our Company’s strength, the sustainability of our Group’s brands and the trust displayed by the investing community. It is without doubt that the success of this issuance provides an avenue to optimize our funding cost while continuing to drive our strategic initiatives as an organization. We are pleased by the success of the CP Issuance and grateful to all parties involved in the transaction.”
The Commercial Papers will be quoted on the FMDQ Exchan
Seplat Energy Plc Awards 3.8m Units of Shares to 3 Executive Directors as Long-Term Incentive Plan
The following awards (“LTIP Awards”) over ordinary shares of 0.5 Naira each (“Shares”) of Seplat were granted under the LTIP to Executive Directors of the Company on 30 May 2022 (the “Award Date”) as set out below using the average share price over the 5-day period prior to the date of grant. For the avoidance of doubt, as referenced in the 14 March 2022 RNS announcement, the LTIP awards are granted in respect of the 2022 financial year.
Vesting of the LTIP Awards is dependent on the achievement of stretching relative and absolute Total Shareholder Return (“TSR”) performance targets, an overall assessment of corporate performance through an underpin and continued employment over a three-year performance period which began on 1 January 2022. The LTIP Awards will be subject to a two-year post vesting holding period. Full details of the vesting conditions of these LTIP Awards will be set out in the Director’s Remuneration Report included in the Company’s 2022 Annual Report.
The Remuneration Committee retains discretion to make adjustments to the LTIP Awards vesting level and amounts payable resulting from the application of the performance measures if it considers that the outcomes are not a fair and accurate reflection of corporate performance.
No consideration was paid for the grant of the above LTIP Awards and no consideration is due on the vesting of the LTIP Awards.