Financial stocks contribute 89% to NSE’s turnover

The financial services industry dominated in volume terms at the end of last week’s transactions on the Nigerian Stock exchange (NSE) with 993.823 million shares valued at N7.279 billion, contributing 89.11 per cent to the total equity turnover.
Following the financial sector last week, was the consumer goods industry with a turnover of 48.047 million shares worth N4.365 billion in 2,682 deals.
The conglomerates ranked third with a turnover of 31.648 million shares worth N109.579 million in 487 deals.
Consequently, a turnover of 1.115 billion shares worth N13.817 billion in 16,083 deals were recorded by investors, in contrast to a total of 1.124 billion shares valued at N13.839 billion that changed in 15,625 deals during the preceding week.
Trading in the top three equities namely – Guaranty Trust Bank Plc, United Bank for Africa Plc and Diamond Bank Plc accounted for 394.511 million shares worth N4.397 billion in 3,142 deals, contributing 35.37 per cent and 31.82 per cent to the total equity turnover volume and value respectively.
Also traded during the week were a total of 29,242 units of Exchange Traded Products (ETPs) valued at N283, 495.57 executed in 42 deals, compared with a total of 16,397 units valued at N1.961 million transacted last week in 37 deals
A total of 4,470 units of Federal Government Bonds valued at N4.313 million were traded in 8 deals compared to a total of 1,650 units of Federal Government Bonds valued at N1.690 million transacted last week in 3 deals.
The NSE All-share index and market capitalisation appreciated by 1.11 per cent and 1.13 per cent to close the week at 27,756.67 and N9.535 trillion respectively. Similarly, all other Indices finished higher during the week, with the exception of the NSE Industrial Goods, index that declined by 0.24 per cent while the NSE ASeM Index closed flat.28 equities appreciated in price during the week, higher than 27 equities of the previous week. 31 equities depreciated in price, higher than 25 equities of the previous week, while 121 equities remained unchanged lower than 128 equities recorded in the preceding week.
A total of 30,000,000, 40,000,000 and 149,585,000 units were added to the following bonds: FGN January 2026, 12.40 percent FGN March 2036 and 14.50 per cent FGN July 2021 respectively on August 29, 2016.
Also, 3,200,000,000 units of Staco Insurance Plc that arose from a special placing were admitted to trading on the 1st of September 2016. This brings the total outstanding shares of the company to 9,341,087,609 units.
Seven-Up topped the gainers chart, adding 28.23 per cent to close at N144.90 per share. Wema Bank followed with 17.19 per cent to close at N0.75 per share. Seplat Petroleum added 15.76 per cent to close at N318.33 per share.
Presco gained 11.88 per cent to close at N45.30 per share. Skye Bank garnered 8.47 per cent to close at N0.64 per share. NPF Micro finance Bank added 8.42 per cent to close at N1.03 per share. First City Monument Bank gained 6.48 per cent to close at N1.15 per share.
AIICO insurance added 6.45 per cent to close at N0.66 per share. Mobil gained 5.00 per cent to close at N170.78 per share. FBN Holdings also appreciated by 4.95 per cent to close at N3.18 per share.

EU Ban On Nigerian Beans: FG Inaugurates Standing Committee

The Federal Government has inaugurated a 26-member Standing Inter-Ministerial Technical Committee to address the rejection of Nigeria`s dry beans by the European Union. The Minister of Agriculture and Rural Development, Chief Audu Ogbeh, while performing the inauguration in Abuja on Tuesday, urged the committee members to work as a team to achieve the desired goal.

“It is my pleasure to welcome you to this important workshop for members of the Inter-Ministerial Technical Committee on Zero Reject of Agricultural Commodities and Produce/Non-Oil Exports. “We are here to take our destinies in our hands by finding lasting solution to incessant rejection of our agricultural commodities, especially in Europe.

“We need to avoid the embarrassment of further rejection in the future by strengthening our regulatory authorities to live up to their mandates. “Our desire for agricultural products and non-oil exports means there will be vigorous pursuit of investment in quality control and standardisation.

“In addressing this challenge, we are working with the Nigerian Agricultural Quarantine Service to ensure safety of what we produce and consume locally and internationally, “ Ogbeh said. The minister urged members of the committee to carry out the assignment with unity of purpose and in the interest of the nation.

“We will get our desired result if this committee carries out its work diligently without fear or favour because there is demand for Nigeria`s product outside the country. “We are also working with other agencies on traceability; that is to know where the sub-standard goods are coming from. “

He, however, called on donor agencies to consider other gaps that could be filled to bring Nigeria`s agriculture to a loftier height. Mr Charles Malata, Chief Technical Adviser, UNIDO, said that the importance of the workshop and inauguration was to enable Nigeria to explore non-oil sector of the economy.

Malata said that the committee was set up because of the rejection of the country’s agricultural produce and commodities at the international market. “We have a project which is funded by EU and it has been running for two years. “Through the project, we have been addressing the issue of safety and good health in order to boost the competitiveness of Nigerian products.

“We appreciate what the Federal Government is doing towards the removal of the ban soon. “I urge the committee to take time to look at the issues that are challenging Nigeria to provide a roadmap to possible solutions to these challenges, “ he added.

In a keynote address, Head of Trade and Economics Section, European Union, Mr Filippo Amato, said that the ban was a wake-up call for the country to work toward achieving standards. He commended the Federal Government in setting up the committee to look at the rejection of Nigeria`s beans for containing high level of pesticides which were dangerous to human health.

He, however, reiterated EU`s support to the country in order to improve its compliance to meet standards and protect consumers` right. The EU announced import suspension measures in June 2015, which affected dried beans from Nigeria.

The suspension was supposed to lapse in June 2016 when the country was expected to provide “substantial guarantees that adequate official control system have been put in place “. The EU further extended the suspension to three years for alleged lack of seriousness by stakeholders to meet the dateline.

The committee members are from the Federal Ministry of Agriculture, Federal Ministry of Industry Trade and Investment, Nigeria Customs Service, Nigerian Agricultural Quarantine Service and Nigeria Export Promotion Council.

Pension assets hit N5.8tn as PenCom seeks to invest 40 per cent in infrastructure

The Director-General of the National Pension Commission (PenCom), Ms. Chinelo Anohu-Amazu, on Tuesday hinted that the total pension assets had hit N5.8 trillion, adding that the commission was targeting to invest 40 per cent of the funds in infrastructure and housing by 2019.
She was, however, quick to add that the safety of such investments would not be compromised, as they would require guarantees from government and stakeholders.
She said currently, 15 per cent of the assets are invested in infrastructure bonds, five per cent in infrastructure funds, 35 per cent in corporate bonds, and 20 per cent in mutual funds.
Speaking in Abuja on “Using Pension Funds for Infrastructure Development to Enhance Inclusive Growth” at an interactive forum organised by the Financial Correspondents Association of Nigeria (FICAN), she also disclosed that a multi-funds investment structure was being put in place to allow people some flexibility in investment choice, taking into consideration age, among others.
However, the PenCom boss further revealed that having recovered about N10 billion from employers who had failed to remit pension deductions, the commission had engaged the Economic and Financial Crimes Commission (EFCC) to prosecute employers who criminally deduct pensions without remitting same to Pension Funds Administrators (PFAs).
Represented at the forum by the Head, Investment and Supervision Unit, PenCom, Mr. Ehimeme Ohioma, the director general said the prosecution of such employers should begin soon with a “name and shame” strategy.
Nevertheless, she said the unavailability of investment projects remained a major challenge to the investment of pension assets in the country.
She identified other constraints to include political risk, policy somersaults, and lack of continuity, adding that less than three per cent of assets are currently invested in infrastructure through state government bonds.
She said government and other stakeholders had not really taken advantage of pension assets to develop infrastructure in the country.
Anohu-Amazu said as part of efforts to deepen pensions, a micro-pension scheme was being finalised to provide opportunities and products targeted at over 50 million people in the informal sector of the economy.
She said the proposed infrastructure projects should, however, be commercially viable and self-financing or able to generate cash flows to repay overtime while bid/concession processes must be open and transparent.
She added that political risks must be guaranteed for projects by the federal government or the IFC/World Bank and African Development Bank (AfDB) to effectively tap into pension funds for infrastructure development.

CBN lifts Forex ban on eight suspended banks

The Central Bank of Nigeria (CBN) has lifted the ban on eight banks earlier sanctioned for foreign exchange sharp practices.
The Director of Banking Supervision at CBN, Mrs Tokunbo Martins told journalists in Abuja that the Apex Bank took the decision following the receipt of proposal for a repayment plan by the affected banks.
Last week, the CBN banned nine banks from the foreign exchange market, for hiding over $2 billion belonging to the Nigerian National Petroleum Corporation (NNPC) from the Treasury Single Account (TSA).
But the ban on United Bank for Africa (UBA) Plc, one of the affected banks, was lifted after the lender remitted all outstanding NNPC/NLNG deposits in its possession to NNPC’s Treasury Single Account (TSA) at the CBN.