Infractions: NSE may punish Afribank, UBA stockbro
A total of 29-member firms of the Nigerian
Stock Exchange may face various degrees of penalties for failing to adhere to
the rules of the Exchange.
The NSE, in a notice posted on its website on
Monday, said that the affected firms had until Friday, March 25, to respond to
the queries earlier issued by the Exchange or they would face severe sanctions.
Afribank Securities Limited, UBA Stockbrokers
Limited, Eurocomm Securities Limited, Foresight Securities Limited, Aims Asset
Management Limited, Adonai Stockbrokers Limited are some of the affected firms.
“The Exchange shall be compelled to punish you
appropriately, if a response does not reach the Exchange on or before Friday, March 25, 2011,” the notice
read in part.
Some other companies affected were Centre Point Investment Limited, Quantum
Securities Limited, Foresight Securities & Investment Limited, Shalom
Investment Limited & Financial Services Limited, First Atlantic Securities
Limited, TRW Stockbrokers Limited, Standard Chartered Securities Limited,
Mutual Alliance Investment and Securities Limited, Networth Securities &
Finance Limited, Laksworth Investment & Securities Limited and Integrated
Trust & Investment Limited.
Source: Punch
Date: 23/03/2011
Tue - Mar - 2011
NSE goes public by mid-year, moves to consolidate
The Nigeria Stock Exchange (NSE) will go public by the
middle of the year in a move that analysts expect will end its dependence on
public fund and put a huge value on the Exchange’s operation, BusinessDay
investigation can reveal.
The move, which is also expected to alter the ownership
structure of the nation’s capital market, was first mooted in October 2008
under the NSE’s demutualization strategy by the then NSE Council.
Besides, steps are being taken by the Securities and
Exchange Commission (SEC) to replace the trading platform with a more efficient
and robust system that will ensure it is in good stead to respond to future
growth in the Nigerian Capital Markets.
Source: Business Day
Date: 01/03/2011
Tue - Mar - 2011
Selling pressure depresses activities as index fal
Selling pressure depressed trading activities
on the Nigerian Stock Exchange on Wednesday, halting four days of appreciation
in key indices.
Specifically, the NSE’s All-Share Index fell by
0.13 per cent or 33.21 basis points to close at 26,713.73, down from 26,747.04
recorded at Tuesday’s close.
Similarly, the market capitalization of the
listed equities closed lower at N8.538tn representing a fall by 0.13 per cent or
N11bn from N8.549tn the previous day, while the NSE-30 Index slipped by 0.1 per
cent from 1,174.80 to 1,174.11.
Analysts attributed the decline to the fact that investors were taking
profit from the marginal appreciation recorded in most of the banking stocks in
the last few trading sessions.
Date: 24/02/2011
Source: Punch
Thu - Feb - 2011
Money Market
Banks feed fat on interest margin, lending rate re
The spread between deposit rate and lending rate has remained high at 20.14
per cent as maximum lending rate as at December 2010 was 21.84 while average
deposit rate stood at 1.95 per cent.
The CBN in its economic report to the monetary policy committee said that
“the average maximum lending rate declined from 22.20 in September, 2010 to 21.84
per cent in November 2010. The average prime lending rate also fell from 16.66
in September to 16.11 per cent in November, 2010.
This has confirmed the allegations that the real sector can not access
credit as a result of the prevailing high interest rate.
According to the CBN “The weighted average savings rate declined
consistently from 3.2 and 1.95 per cent in March and June, 2010 to 1.49 and
1.48 per cent in September and November, 2010, respectively. The consolidated
deposit rate which declined from 2.09 per cent in June to 2.07 per cent in
September rose to 2.36 per cent in November, 2010.
Thus, the spread between the average maximum lending rate and the
consolidated deposit rate widened from 19.94 per cent in June to 20.14 per cent
September, before narrowing to 19.48 per cent in November, 2010.
Source: Vanguard
Date: 22/03/2011
Tue - Mar - 2011
Access, 3 other banks shop for new GMD/CEOs
The
search for suitable replacements as Group Managing Director/Chief Executive
Officers (GMD/CEOs) may have started in earnest in four top Nigerian banks whose
chief executives are due to retire in less than one year.
BH investigations confirmed that the affected banks and GMD/CEOs are GTBank
Plc, Mr. Olutayo Aderinokun; Mr. Reginald Ihejiahi, Fidelity Bank Plc; Mr.
Aigboje Aig-Imokhuede, Access Bank Plc, and Mr. Falalu Bello, Unity Bank
Plc.These bankers are expected to retire from their banks in keeping with the
tenure policy of the Central Bank of Nigeria (CBN) which in 2010 pegged the age
limit of the banks’ chiefs to a maximum cumulative of 10 years. This
development has prompted serious lobbies by experienced banks especially in
such banks where there are no clear cut succession plans.
According to the CBN, the tenure policy was enunciated as part of the
banking sector reform agenda to ensure corporate governance in the nation's
banking sector.
Source: Biz Hallmark
Date: 01/03/2011
Tue - Mar - 2011
Nigeria’s current account worsens by 62% – CBN
Nigeria’s
current account fell by 62 per cent in the third quarter of last year due to
huge import bill and decline in exports, says the Central Bank of Nigeria,
CBN.
The current account is one of the two primary components of the balance of
payments, the other being the capital account. Current account is the sum of
the balance of trade (exports minus imports of goods and services), net factor
income (such as interest and dividends) and net transfer payments (such as
foreign aid).
Central Bank said in its quarterly external sector report for third quarter
of 2010: “The estimated current account surplus which stood at US$ 3,614.92
million in Q2, 2010 declined to US$ 1,359.75 million in Q3, 2010.
When compared with the level in the corresponding quarter of 2009, the
decline in the current account surplus was steep.”
The decline, according to the apex bank, was occasioned by “high import
bills (visible and invisible) and a slight drop in aggregate exports, reflecting
the country’s overdependence on imported goods and services coupled with the
fact that the services sub-sector is not competitive, occasioned largely by the
absence of technical know-how required for external competitiveness.
Date: 24/02/2011
Source: Vanguard
Thu - Feb - 2011
Real Estate
Real estate investment opportunities boom in Calab
Calabar
is the capital of CrossRiverState, which situated in the
coastal region of southeastern Nigeria. Located in the Niger
Delta, CrossRiverState occupies 20,156
square kilometers. It shares boundaries with Benue
State to the north, Enugu
and Abia states to the west, to the east by Cameroon
Republic and to the south by
Akwa-Ibom and the Atlantic Ocean.
The state is composed of three major ethnic groups-these are the Efik, the
Ejagham and the Bekwarra. The Efik language is very widely spoken in Cross
River State,
even as far as Arochukwu in neighboring Abia state.
The government of Cross River
State has made tourism development
a priority and is working to leverage the contributions of the private sector
to brand Cross River
as a premier destination for Nigerians and foreigners alike. The Cross River State
Tourism Bureau is a key player in this effort and has succeeded in putting
Calabar on the map with their successful Christmas Festival and Carnival
Calabar that spans the month of December. Investments in hotels in Calabar show
good increase and the volume of air traffic has increased greatly.
Source: Bizhallmark
Date: 22/03/2011
Tue - Mar - 2011
World Bank Sees N60trn Investment Potential in Hou
Experts identify Land Use Act, cumbersome
registration process as barriers
The World Bank has estimated that the cost of bridging Nigeria’s
17 million housing deficit is N59.5 trillion, underlining the vast
and untapped investment potential of the country’s real estate sector.
Experts have however identified the Land Use Act of 1978 which resides
ownership of land in state governors, and a cumbersome property registration
process as major barriers to housing development and home-ownership, leading to
the country’s huge housing deficit.
According to Fortune Ebie, former managing director of the Federal Housing
Authority (FHA), until the Act is reviewed or amended, improved housing
development will continue to be a pipe-dream.
Real estate and financial experts who agree with the World Bank’s submission
also add that the real estate sector remains a viable option for investors
seeking guaranteed returns on investments, saying that several opportunities
exist in the sector.
In the estimation of the World Bank, some of the numerous opportunities
available in the sector include private equity players who are capable of
making big investments; financial institutions that can float real estate
funds; pension regulators who can build a robust framework for real estate
funds investment; adaptive re-use of properties by banks in the form of
converting properties and taking stakes in new deals; opportunities for hotels,
events and recreational centres, shopping malls, estates, among others.
Currently, Nigeria’s real estate industry accounts for between four and five
percent of total Gross Domestic Product (GDP), growing by 10.48 percent in the
second quarter of 2010.
Source: (BusinessDay, 25/11/2010)
Thu - Nov - 2010
F.G secures 6.8bn grant for land Management
A ray of hope beamed on the Federal Government’s
land reform policy yesterday as the Federal Executive Council (FEC) directed
the ministry of finance to execute the $6.8 billion Global Environment Facility
(GEF) grant on behalf of Nigeria.
The land reform policy was the 7-point agenda of
late President Umar Yar’Adua’s administration. Sources close to the policy told
BusinessDay last night that the grant will now ease the execution of the policy
which has been on the drawing board for over three years. An analyst who
pleaded anonymity said the issue of land management has been a thorny one that
requires careful attention, adding that it would also need to address the Land
Use Act. The analyst noted that the execution of the reform policy should ease
access to land for both residential and investment purposes which the Land Use
Act could not achieve.
Source: Business Day
Date: 07/10/2010
Thu - Oct - 2010
Private Equity
Access/Intercontinental Bank When Merger Returns c
This recent event in the banking sector,
after all, could be the beginning of new tidings to hitherto
'rescued' banks, which might easily have gone the way of other banks that have
now gone defunct.
So it was good news when Sanusi Laimido Sanusi,
governor, Central Bank of Nigeria (CBN) last week after the Monetary Policy
Committee (MPC), said a number of deals were likely going to be unveiled this
week. Thus it was naturally welcoming when Access Bank announced its intention
to go into mergers with Intercontinental Bank plc.
In many ways, this announcement meant
re-assurance to the staff; at least to majority that worked with
Intercontinental that their jobs were still secure. But most importantly, was
the boost the combination of businesses of Access Bank and Intercontinental
Bank would give to the economy.
Source: Business Day
Date: 30/03/2011
Wed - Mar - 2011
Telecoms Overtakes Banking, Real Sector in Contrib
Buoyed by remarkable growth in foreign and local investments
in the sector, and the phenomenal rise in number of Nigerians now using the
services, the contribution of the telecom sector to Nigeria’s gross domestic
product (GDP) in 2011 is expected to surpass the combined contributions of
manufacturing, banking, insurance and solid minerals sectors, figures from the
Ministry of Finance has indicated.
The contribution of the sector to Nigeria’s
GDP for this year is estimated at 7.6 per cent, which computed with the
country’s GDP figures put at $206.66 billion by the International Monetary Fund
(IMF), stands at $15.7 billion. Finance and insurance, manufacturing, and solid
minerals are projected to contribute 2.5 per cent, 4.5 per cent and 0.4 per
cent respectively to the national GDP this year. The figures put together
amounts to 7.4 per cent which is 0.2 per cent less than the 7.6 per cent
expected from telecom this year.
Source: Business day
Date: 17/02/2011
Thu - Feb - 2011
Access Bank, others close operations in Cote d’Ivo
Access Bank plc of Nigeria
and two other banks, Citi Bank of America
and BICICI Bank of France
have shut down their operations in Cote d’Ivoire,
following prolonged political stalemate in that country.
BICICI is a subsidiary of the French BNP
Baribas.
A statement posted on the website of the BICICI
said the bank had to close temporarily for security reasons. “We regret to
announce to you that BICICI temporarily suspended its activities from this day February 14, 2011.
“We are no longer able to ensure that our work is done in satisfactory legal
and accounting conditions for our customers or ensure the physical security of
our staff,” the statement signed by the bank’s Managing Director, Yao Kouassi,
said.
Source: Punch
Date: 16/02/2011
Wed - Feb - 2011
Foreign Exchange Market
CBN offers $200m for sale at forex auction
The Central Bank of Nigeria
has intervened in the foreign exchange market, offering $200m for sale at the
foreign exchange auction.
According to information obtained by our correspondent
on Wednesday, the total amount sold at the Wholesale Dutch Auction System was
$200m while the total amount demanded was $230.29m.
The marginal bid was $150.47 while the weighted
average rate was $150.54. The highest successful bid rate stood at $150.61 and
the lowest bid rate was $150.45.
The number of successful banks, according to
the information was 17, while the number of unsuccessful banks was three. The
banks that participated in the WDAS were 20 in all.
Meanwhile, the naira had appreciated slightly
against the dollar at the inter-bank market on Monday as the previous week’s
foreign exchange sales by energy companies continued to provide support for the
local currency.
Inter-bank lending rates rose by 1.66 per cent to an average of 9.66 per
cent on Friday, from eight per cent recorded the previous week.
Source: Punch
Date: 16/02/2011
Wed - Feb - 2011
Nigerian Naira Eases to Weakest Level in 15-months
The Nigerian naira fell on Wednesday on the
interbank forex market as the Central Bank of Nigeria (CBN) sold $800 million
at its last bi-weekly auction of the year.
The local currency closed at N153.65 to the
dollar on the interbank market, down from N152.40 a dollar the previous day and
its lowest since September last year, as companies rushed to buy dollars to
stock up on goods and raw materials for the year end.
At the official window, the Central Bank sold
$800 million at N149.17 to the dollar, short of the $837.79 million demanded,
but twice the $400 million sold at N149.06 to the dollar at Monday's auction.
The closure of the official window for the year
by theCentral Bank after today's auction put further pressure on available
dollars in the market and caused the naira to weaken further," one dealer
said.
Traders said there was increased demand for the
dollar as many importers made last minute bids at the official window, while
the shortfall in supply at the bi-weekly auction was redirected to the
interbank market.
"The naira could depreciate further until
next week when some companies are expected to wind-up for the year,"
another dealer said.
Source:
(BusinessDay 14/12/2010)
Thu - Dec - 2010
U.S. Stocks Drop on European Debt, China Rates, Ko
U.S. stocks fell this week, led by banks, amid
concern that an Irish financial bailout will fail to stem Europe’s debt crisis,
China will raise interest rates to cool inflation and the Korean peninsula
conflict will escalate. “Those things paint a pretty grave image,” said Peter
Sorrentino, who helps oversee $13.8 billion at Huntington Asset Advisors in
Cincinnati.
“They serve to keep the real fundamental
investors on the sidelines because they’re reasons not to take a risk.”
JPMorgan Chase & Co. and Bank of America Corp. led declines in the Dow
Jones Industrial Average, both losing more than 4.6 percent, after Ireland
became the second euro country to seek a rescue as the cost of saving its banks
threatened a rerun of the Greek debt crisis. Hewlett-Packard Co. limited losses
for the benchmark, rising after its profit forecast exceeded estimates. Source: (BusinessDay, 29/11/2010)