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Bears Dominate Despite Banking Sector Rebound… NSE ASI down 0.2%

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Nigerian stock exchange

The negative performance of the local bourse lingered yesterday, marking the fourth consecutive decline as the All Share Index (ASI) shed 0.2% to 38,605.07 points while the YTD return reduced to 0.9%. Accordingly, investors lost N16.2bn as market capitalisation declined to N13.9tn. Profit taking in market bellwethers – SEPLAT (-5.0%), GUARANTY (-0.9%) and NIGERIAN BREWERIES (-1.0%) – was responsible for yesterday’s bearish performance.

Similarly, activity level weakened as volume and value traded fell 31.4% and 37.4% to 267.8m units and N3.8bn respectively.

Yesterday’s top traded stocks by volume were ZENITH(44.8m), FBNH (38.7m) and ACCESS (25.8m) while ZENITH (N1.1bn), GUARANTY(N494.3m) and NESTLE (N414.8m) were the top traded stocks by value.

Mixed Sector Performance
Across sectors, performance was mixed as 2 of 5 indices we track closed in the green. The Insurance and Banking indices trended northwards, up 1.4% and 0.2% respectively as a result of buying interest in NEM (+4.9%), PRESTIGE (+10.0%), WAPIC (+4.3%),ZENITH (+2.0%), UBA (+1.4%) and ETI (+1.0%). On the flipside, the Oil & Gas index was the worst performer, down 2.6% due to losses in SEPLAT (-5.0%). Equally, the Consumer and Industrial Goods indices fell 0.3% and 0.2% respectively on the back of profit taking in NIGERIAN BREWERIES (-1.0%), DANGFLOUR (-1.4%), NASCON (-0.2%) and CCNN(-3.1%).

Investor Sentiment Strengthens
Investor sentiment as measured by market breadth (advance/decline ratio) strengthened to 1.2x (23 stocks advanced compared to 20 decliners) from 0.4x in the preceding session. The best performing stocks were PRESTIGE (+10.0%), CILEASING (+9.3%) and ETERNA (+8.9%) while SEPLAT (-5.0%), CUSTODIAN (-4.9%) and LIVESTOCK (-4.6%) were the worst performing stocks. In line with our expectation, profit taking across market bellwethers continued today despite improved investor sentiment.

We expect this bearish trend to be sustained in the next trading session although we do not rule out the possibility of a rebound by week end.

GE Hits 100th Power Plant Milestone in Sub-Saharan Africa

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At the forefront of innovation and technology in energy while collaborating with power producers across the region, GE Power announced today that it has reached its 100th power plant installation in Sub-Saharan Africa.

This significant milestone was achieved with power plants in Angola powered by trailer-mounted aero gas turbine technology. The company has now installed over 300 turbines in up to 22 countries in Sub-Saharan Africa.
Leslie Nelson, CEO, GE’s Gas Power business, Sub-Saharan Africa said: “This milestone is a testimony of our commitment to providing power solutions to meet the growing energy needs in many countries in the region ahead of other OEMs. Our regional operations are led by an expert African team. Our flexible and modular energy solutions respond to the ever-changing needs of the communities where we work and live. Our ability to partner with independent power producers, EPCs, strategic investors and governments to deliver these power projects strengthens the trust and confidence that our customers place in us.”

Ghana
Over 70% of the thermal power in Ghana runs on GE technology with over 600MW added to the grid in the last 24 months, with an additional 900MW planned over the next 2 years. Leading examples include the 400MW Bridgepower project– in consortium with indigenous partners, Endeavour and Sage Petroleum – which will be the first LPG-fired power plant in Africa and the largest LPG fired power plant in the world.

In partnership with Marinus Energy, the Atuabo Waste Gas to power project will be the first TM2500 plant to use otherwise flared Isopentane gas as a fuel source. The 200MW Amandi power plant which will come online in 2019 will run on GE’s latest 9E technology offering superior fuel flexibility.

Nigeria
In Nigeria today, GE technology provides over 75% of the gas-powered on-grid generation, with more than 3GW of heavy duty and fuel-flexible gas turbines at nine power plants including the Omotosho I & II power plants as well as GE’s innovative trailer-mounted gas turbines currently being installed at the Afam III Fast Power plant.

GE is committed to Nigeria’s Vision 2020; signing a Country to Company agreement with the Nigerian government to support development of up to 10GW of power.

Angola
GE and the Angola Ministry of Energy and Water are set to achieve the country’s additional electric power generation capacity target of 2000MW. Today, about 80% of Angola’s gas-powered generation runs on GE technology providing energy for up to 2 million Angolan households.

With over 20 trailer mounted gas turbines installed at fast power plants and the 750MW Soyo I combined cycle power plant under construction, Angola is well on its way to achieving its energy ambitions.

Ivory Coast
GE is a historical player and a pioneer in the power sector in Ivory Coast. The first-ever gas turbines (Vridi, 1984), the first independent power production project (Ciprel, 1994) and the first combined-cycle power plants in the country (Azito and Ciprel, 2015) all run mainly on GE technology.

In 2015, GE committed to support the country’s infrastructure development goals, which includes adding 1GW of power to the Ivorian national grid. The Azito Power plant produces more than a third of the electricity in the country and marks GE’s Power Services’first GT13E2 MXL2 gas turbine upgrade in SSA. This upgrade will add an additional 30MW to the plant’s 450MW production capacity.

In addition, GE is setting up an M&D (Monitoring and Diagnostic) center in Ivory Coast to provide the digital data and analytics service to improve performance and lower lifecycle costs of all GE equipment in the region.

Kenya
Kenya needs a diverse energy mix to support its growth initiatives. The 1050MW Lamu power project will use GE’s ultra-super critical technology to deliver superior efficiency and lowest emissions. The project will guarantee that up to 30% of electricity produced in Kenya is reliable base-load power.

South Africa
In South Africa, GE is deploying smarter, cleaner, steam technology at the Medupi and Kusile Power plants. Kusile is the first wet flue gas desulphurization plant in the continent and has 93% removal efficiency rate. Upon completion, Kusile and Medupi will provide up to 9600MW – enough power to meet the electricity needs of about 7 million households in South Africa.
“As a company, we believe that one of the key drivers of development in Africa is power. Lowering the tariffs, figuring out how we can make the most of the grid, optimizing the energy value chain – this is what we think about as a business and work towards improving everyday” said Lee Dawes, General Manager, GE Steam Power in Sub-Saharan Africa.
GE’s first turbine installation in Sub-Saharan Africa can be traced as far back as the early 1970s with its Frame 5 gas turbine technology. Since then, GE Power has been at the forefront of innovation in power technology with the most recent fuel-flexible and highly efficient 9EMax gas turbines, superior ultra-super-critical steam technology as well as a broad range of hydro and wind turbines and generators. GE has power plant installations in up to 22 countries in Sub-Saharan Africa and this number is set to grow even further.
GE reinforces its commitment to investment in the region through skills development initiatives to broaden and nurture its talent pool within the countries it operates. In South Africa, $2.4M worth of student bursaries have been awarded in partnership with Eskom.

In Ghana, $3.5M was donated to support the Engineering Program at Ashesi University. Over 120 employees are on GE Leadership development programs today. Corporate Social Responsibility initiatives are also carried out through a wide range of projects in the areas of health, education, environment and community-building to improve lives in the countries where we work and live.
GE Power is attending the 20th Africa Energy Forum in Mauritius from June 19th to June 22nd, 2018.

Infrastructure & Economic Growth: The Strategic Alliance

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Business Journal event pix
L-R: Prof. Akpan Ekpo, Director-General, West African Institute for Financial and Economic Management; Engr. Edoyemi Ogoh, Head, Interconnect and Network Monitoring/Quality of Service Unit, Nigerian Communications Commission (NCC); Engr. Ernest Ndukwe, Chairman, Open Media Group/former Executive Vice-Chairman, NCC; Prince Cookey, Publisher/CEO of Business Journal; Mr. Tope Smart, Group Managing Director/CEO, NEM Insurance Plc and Chidi Izuwah, Director-General, Infrastructure Concession Regulatory Commission, at the Business Journal 10th anniversary lecture and awards on Infrastructure and Economic Growth: Exploring The Strategic Alliance held at Sheraton Hotel, Ikeja (Lagos) on Thursday, June 7, 2018.

Text of the paper presented by Professor Akpan Ekpo, Director-General, West African Institute for Financial and Economic Management (WAIFEM) at the Business Journal 10th Anniversary Lecture in Lagos.

Business Journal event pix
L-R: Prof. Akpan Ekpo, Director-General, West African Institute for Financial and Economic Management; Engr. Edoyemi Ogoh, Head, Interconnect and Network Monitoring/Quality of Service Unit, Nigerian Communications Commission (NCC); Engr. Ernest Ndukwe, Chairman, Open Media Group/former Executive Vice-Chairman, NCC; Prince Cookey, Publisher/CEO of Business Journal; Mr. Tope Smart, Group Managing Director/CEO, NEM Insurance Plc and Chidi Izuwah, Director-General, Infrastructure Concession Regulatory Commission, at the Business Journal 10th anniversary lecture and awards on Infrastructure and Economic Growth: Exploring The Strategic Alliance held at Sheraton Hotel, Ikeja (Lagos) on Thursday, June 7, 2018.

Private sector and infrastructure

  • It has always been argued that the private sector is the engine of growth and as such as significant role to play in the infrastructural development of the economy.
  • However, the private sector exists in an economy led by the public sector. Therefore, once the investment climate is right, the private sector would invest but in what?
  • Our position is that the private sector should invest in the infrastructure sub-sector of the economy in order to sustain their businesses and profitability.
  • Innovative financing methods are necessary to encourage the private sector. The Public-Private partnership is one of such approaches. There is the Build-own-and operate; Build-own- and transfer; various leasing and concession options.
  • Has the private sector utilized the opportunities created by government to build infrastructure such as roads, railways, water projects, power projects, among others.
  • The involvement of the private sector in the power business has been a disappointment. After biding and buying the various existing power plants, various challenges emerged reflecting the lack of appropriate capacity to do due diligence.
  • Perhaps, there is need to distinguish between the foreign and indigenous private sector of the economy. The former characterized by multi/transnational cooperation.
  • Even when contracts are awarded to the private sector to build infrastructure, the quality of service delivery is often below standards.
  • Consequently, in the infrastructural development matrix, government remains relevant.
  • Government has business in the infrastructure business. It must be a catalyst thus urging the private sector to be part of the process.
  • In the ERGP, there is role for the private sector but it appears that the pledges made during the labs came mainly from foreign investors.
  • It seems that the Nigerian private sector is still interested more in wholesale, retail, services, packaging, bottling and assembling and not in investing in hard infrastructure.
  • However, the story is different when it comes to soft infrastructure such as education;
  • with the collapse of the public school system at all levels;
  • the private sector has invested and established/built nursery, primary, secondary and tertiary schools with the desire to make profits while indirectly pretending to contribute to national development.
  • The quality of the products from most of these institutions leaves much to be desired.
  • It is must be stated that for the private sector, the profit motive supersedes patriotism hence government must continue to pursue the development of infrastructure in order to enhance the growth and development of the country.

Mobilising Resources for Infrastructural Development

  • Economies that have developed their infrastructure have invested almost 25 per cent of their annual budget on infrastructure for al least 10-15 years.
  • Nigeria’s investment on infrastructure annually is less than 2 per cent. In recent times, external borrowing and the issuance of sukuk have been undertaken to finance infrastructural development.
  • There is nothing wrong in borrowing to finance capital projects like infrastructure provided the proper arithmetic has been done to ensure that the projects would pay offset the amount borrowed in the long-run.
  • It may be necessary to suggest that the recent windfall from oil should be geared towards the financing of infrastructure and saving part through the Sovereign Wealth Fund.
  • The rising oil prices is not sustainable and should not only be utilized to defend the Naira.
  • Norway remains a good example of how oil revenues were used to finance and build physical infrastructure as well as human capital.
  • We do not have to re-invent the wheel.

The Strategic Alliance

  • Infrastructure development is an integral part of the public policies in developing countries including Nigeria.
  • Supporting infrastructure development in developing countries calls for strategic alliance as its importance cannot be overemphasized.
  • The World Bank and some other development partners appreciate this position.
  • The argument posited by traditional donors like the USA, Japan, etc. as why they eschewed providing support for infrastructural development because of environmental, social, and governance issues among others may not be totally correct.
  • China has braced the trend with the launch of the Asian Infrastructure Investment Bank (AIIB) through its ‘One Belt One Road Initiative’.

Conclusion

  • There is no doubt that building infrastructure would stimulate growth – would add about 2.5 per cent annually to the growth equation.
  • Sustained growth rates would also result in new and appropriate sustained infrastructural development.
  • The implications include better standard of living through job creation, poverty reduction, more revenue for government via a diversified economy and in the long-run a modern knowledge-based economy.
  • The infrastructural deficit in Nigeria is so large hence efforts must be made to narrow the gap.
  • The constant supply of electricity alone would stimulate both the micro, small-scale and even medium-sized businesses in the country.
  • Nigeria may have made progress in terms of the easy of doing business but the cost of doing business remains very high due to disturbing infrastructural deficit, hard and soft.
  • There exists a strategic alliance between infrastructure and economic growth and the nexus is self-reinforcing.
  • The fast-tracking of infrastructural development would enhance economic growth which would result in economic development if government pursues the right development philosophy.

Law Union & Rock Insurance Unveils Travel, Teen Policies

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Law Union & Rock Insurance Unveils Travel, Teen Policies
L-R: Company Secretary, Law Union and Rock Insurance, Mr. Stan Chikwendu; Chairman, Mr. Remi Babalola and the Managing Director/CEO, Mr. Jide Orimolade at the company’s recent AGM in Lagos.

Law Union & Rock Insurance Plc has released more retail products to meet the need of its customers. The new products are Travel Insurance Card and Teen Personal Accidents (TPA).

The Executive Director, Technical/Operations Mr. Olasupo Sogelola, said the introduction of the two products was part of the company’s strategic plans to meet the need of its retail customers.

According to him, the Teen Personal Accident otherwise called TPA was the company’s innovation, but has now been repackaged in four variants with premium ranging from as low as five hundred naira. The new variants provide customers with the benefits options depending on the customers’ choice.

The policy provides a cover for children of age between two and twenty-five years. The benefits include medical expenses and permanent disability resulting from accidents sustained by the insured child within and outside their school premises.

NAICOM has also granted the company an approval to underwrite Travel Insurance Card, a retail policy for regular travellers within Nigeria. With as low as seven hundred naira only, a traveller would be covered against accident arising in the course of his/her traveling by road, rail, water or air. The product comes in four variants- drivers travel card, passengers travel card, students travel card and executives travel card.

Law Union & Rock Insurance Unveils Travel, Teen Policies
L-R: Company Secretary, Law Union and Rock Insurance, Mr. Stan Chikwendu; Chairman, Mr. Remi Babalola and the Managing Director/CEO, Mr. Jide Orimolade at the company’s recent AGM in Lagos.

The policy benefits, which include medical expenses, emergency care, accidental death and permanent disability is expected to provide succour to the accident victims/family and also reduce the level of uninsured economic losses from accident in the country.

In the last three years the company has released various retail products into the market which include Home Guard, the product that provide cover for the house contents, I-Care, I-Salute & GPA 4 Schools which provide different personal accident covers and Doctor-on-Cover, a professional Indemnity policy for Medical Practitioners.

These products are being distributed through state –of –the – art – technology which simplifies the accessibility and distribution of the policies through the company’s website, scratch card, POS and agents nationwide.

Sogelola disclosed that the company will soon commence the distribution of Worldwide Travel Insurance Policy following the regulator’s approval to underwrite the policy. The Executive Director, Technical/Operations expressed the company’s readiness to continue to provide cutting-edge services to its loyal customers.

In 2017, the company moved from accumulated loss to a positive retained earning which enables it to pay dividends to the shareholders. The company also recorded a positive growth in its top-line in first quarter 2018 to maintain its consistent growth and performance in the industry.

‘Africa Needs Blue Economy Strategy to Harness the Oceans’

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The African continent needs to work together on a country and regional level to put in place and, more crucially, implement a sustainable maritime governance system that will benefit the whole continent, concluded delegates at the first Africa Blue Economy Forum (ABEF).

ABEF 2018 took place in London on 8 June, to coincide with World Oceans Day. The Forum attracted international experts and African government ministers to debate the economic contribution of oceans in the context of the African Union’s Agenda 2063 and the UN Sustainable Development Goals (SDGs).
Paul Holthus, CEO of the World Ocean Council and keynote speaker at ABEF 2018, remarked: “Africa presents major blue economy investment opportunities and also sustainable development challenges. We are working to bring together ocean business community leadership and collaboration in Africa to address both these opportunities and challenges.”
Speaking on the panel discussing ‘The blue economy and ocean financing’, Gregor Paterson-Jones, an independent expert on renewable energy investment, said: “The blue economy is not a uniform theme. The green economy is more easily defined, because it relates to ‘clean’ energies. The blue economy has multiple sectors with different types of investment opportunities. I always say blue is the new green.”
A strong focus on action was prevalent throughout discussions at ABEF. David Luke, Coordinator, African Trade Policy Centre, United Nations Economic Commission for Africa, remarked: “Because the blue economy is such a broad concept, we need to bring coherence to it. As far as Africa is concerned, we need to be part of the change we see happening on the continent for the blue economy to have traction.”
Stanislas Baba, Minister-Counsellor to the President of the Togolese Republic, said: “Trade is an unexploited resource in Africa, but the blue economy has to be handled carefully. $350 million is lost each year in Africa due to illegal fishing. We can combat poverty by using our seas.”
Achieving a regional approach will not be easy, noted Yonov Frederick Agah, Deputy Director General, World Trade Organisation. “One of the problems we have in Africa is that we don’t like ideas,” he remarked. ”Blueprint programmes are lying on the shelf. Integration means letting go of certain things.”
Speakers and delegates at ABEF 2018 agreed on the need for innovative financing to start developing the Africa blue economy on a wider scale, not only from governments, but also the private sector. Relevant data and more research is required to shape policies, especially with regard to climate change. Focusing on educating Africa’s youth is also key to shaping the blue economy, which has the capacity to provide desperately needed jobs for the younger generation across the continent.
Leila Ben Hassen, Founder and CEO of ABEF organiser, Blue Jay Communication, commented: “The blue economy is not simply the responsibility of the 38 African coastal countries, but is also highly relevant to their landlocked neighbours. We must all contribute to put the blue economy into action, to help reduce poverty, improve livelihoods and assure sustainable socio-economic development.”

Global Airlines Financial Monitor: May 2018

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  • The latest airline financial data continue to show that industry profitability improved in Q1 2018 relative to the same period a year ago. The pick-up in industry-level performance was driven by a turnaround for European airlines.
  • Nonetheless, investor concerns about the impact of rising fuel prices on future airline financial performance saw global airline share prices fall for the fourth month in a row in May. The global airline share price index has now fallen by 8.5% since the start of the year, continuing to underperform the global equity market.
  • Oil prices climbed again in May, driven by tighter market supply and ongoing geo-political tensions. At the time of writing the Brent crude oil price is currently sitting around US$76/bbl – almost 60% higher than a year ago.
  • The seasonally adjusted trends in passenger and freight demand have continued to diverge. All told, while the industry-wide passenger load factor has continued to set new record highs in seasonally adjusted terms in recent months, the corresponding freight load factor has fallen back to levels last seen at the start of 2017.
  • The premium cabin’s share of international passenger revenues fell to 30.6% in Q1 2018, from 31.1% a year ago. Nonetheless, the cabin continues to provide an important buffer for airline financial performance.

N300m Insurance Rebranding Project Stirs Market

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N300m Insurance Rebranding Project Stirs Market
L-R: Chairman Sub-Committee on Publicity and Communication, Insurers Committee, Hassan Oye- Odukale; Deputy Director/Head, Corporate Affairs, NAICOM, Rasaaq Salami; Vice Chairman Sub Committee, Publicity, Ebelechukwu Nwachukwu; Managing Director, Custodian & Allied General Insurance Limited, Toye Odunsi and Director-General, Nigerian Insurers Association (NIA) Mrs Yetunde Ilori.

The N300 million rebranding project by the insurance industry in Nigeria has reinvigorated the hope of operators in the market for better days ahead.

Mr. Oye Hassan-Odukale, chairman of the sub-committee on Publicity and Communications of the Insurers Committee, said the project has an initial three-year lifespan to change the perception of the Nigerian public about insurance and the insurance industry itself.

Odukale maintained that Nigeria cannot attract sustainable Foreign Direct Investment (FDI) without insurance protection for the investors.

N300m Insurance Rebranding Project Stirs Market
L-R: Chairman Sub-Committee on Publicity and Communication, Insurers Committee, Hassan Oye- Odukale; Deputy Director/Head, Corporate Affairs, NAICOM, Rasaaq Salami; Vice Chairman Sub Committee, Publicity, Ebelechukwu Nwachukwu; Managing Director, Custodian & Allied General Insurance Limited, Toye Odunsi and Director-General, Nigerian Insurers Association (NIA) Mrs Yetunde Ilori.

“We want insurance to move the economy forward. Investment cannot come into Nigeria without insurance protection for the investors. If we achieve one percent insurance penetration in Nigeria, it is huge given our population of 180 million. Indeed, claims payment is the best advert for insurance companies in the country.”

The insurance rebranding project will focus on four key planks:

  • Changing the mindset of Nigerians on the business of insurance
  • Ensuring the public understands the importance, values and benefits of insurance
  • Showcasing the advancements made delivering efficient services within the insurance sector to encourage more Nigerians to take up insurance
  • Propagating insurance as the engine that drives key sectors and keeps them in business

Odukale, who is also the managing director/chief executive of Leadway Assurance Company Limited added:

“The low insurance penetration rate in Nigeria is as a result o the wide financial protection gap; hence we must work hand-in-hand to ensure that risk protection and insurance education are readily accessible to the average man on the street. We need to look beyond making sales to reversing the negative perception many Nigerians have of the insurance industry.”

The rebranding project will also showcase insurance firms and chief executive officers operating in the industry, their contacts and create an avenue for them to respond to questions from members of the public.

 

Business Journal 10th Anniversary Pix

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Business Journal event pix
L-R: Prof. Akpan Ekpo, Director-General, West African Institute for Financial and Economic Management; Engr. Edoyemi Ogoh, Head, Interconnect and Network Monitoring/Quality of Service Unit, Nigerian Communications Commission (NCC); Engr. Ernest Ndukwe, Chairman, Open Media Group/former Executive Vice-Chairman, NCC; Prince Cookey, Publisher/CEO of Business Journal; Mr. Tope Smart, Group Managing Director/CEO, NEM Insurance Plc and Chidi Izuwah, Director-General, Infrastructure Concession Regulatory Commission, at the Business Journal 10th anniversary lecture and awards on Infrastructure and Economic Growth: Exploring The Strategic Alliance held at Sheraton Hotel, Ikeja (Lagos) on Thursday, June 7, 2018.

L-R:  Prof. Akpan Ekpo, Director-General, West African Institute for Financial and Economic Management; Engr. Edoyemi Ogoh, Head, Interconnect and Network Monitoring/Quality of Service Unit, Nigerian Communications Commission (NCC); Engr. Ernest Ndukwe, Chairman, Open Media Group/former Executive Vice-Chairman, NCC; Prince Cookey, Publisher/CEO of Business Journal; Mr. Tope Smart, Group Managing Director/CEO, NEM Insurance Plc and Chidi Izuwah, Director-General, Infrastructure Concession Regulatory Commission, at the Business Journal 10th anniversary lecture and awards on Infrastructure and Economic Growth: Exploring The Strategic Alliance held at Sheraton Hotel, Ikeja (Lagos) on Thursday, June 7, 2018.

L-R: Engr. Ernest Ndukwe, Chairman, Open Media Group/former Executive Vice-Chairman, Nigerian Communications Commission; Prince Cookey, Publisher/CEO of Business Journal; his wife, Mrs. Perpectua Cookey; Mr. Tope Smart, Group Managing Director/CEO, NEM Insurance Plc and Chidi Izuwah, Director-General, Infrastructure Concession Regulatory Commission, at the Business Journal 10th anniversary lecture and awards on Infrastructure and Economic Growth: Exploring The Strategic Alliance held in Lagos on Thursday. June 7, 2018.

NSE, LSE Hosts 5th Dual Listing Conference in Lagos

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5th edition of the NSE-LSE Dual Listing Conference

The Nigerian Stock Exchange (NSE), in partnership with London Stock Exchange Group (LSEG) will host the 5th edition of the NSE-LSE Dual Listing Conference on Friday, June 1, 2018 in Lagos, Nigeria.

This year’s conference themed, “Attracting Global Capital to Drive Nigeria’s Economic Reforms and Sustainable Growth Development,” will bring together companies keen to explore a London/Lagos dual listing, corporate finance experts, lawyers, capital market operators, regulators, government officials, media and thought leaders to discuss investment opportunities in Nigeria.

Speaking about the conference, the Chief Executive Officer, NSE, Mr. Oscar N. Onyema, said that, “this event comes at a time when Nigeria has turned a corner from its worst recession in over two decades to have the best performing stock Exchange in Africa and third best performing globally. I have no doubt that the insightful deliberations at this conference will drive the level of engagement and idea generation that will solidify and strengthen our capital markets partnership and reinforce the drive of Federal, States and Corporates in accessing the deep pool of capital inherent in the Nigerian capital market and on the London Bourse. I encourage us to utilise the opportunities that exist between our exchanges to enhance capacity in our markets and promote diversity of investment products to meet the needs of a wide range of investors and issuers”.

“The recent dual listing of the first-ever FGN Sovereign FX denominated $1 billion Eurobond on The Nigerian Stock Exchange and London Stock Exchange gives credence to the successful partnership between the two exchanges”, he added.

Nikhil Rathi, Chief Executive Officer, London Stock Exchange Plc said: “The fifth NSE-London Stock Exchange Dual Listing Conference is a reflection of the strength of the partnership between our two exchanges and the global investment community’s strong desire to be a part of the Nigeria story. As the world’s most international exchange, London Stock Exchange looks forward to building on the success of existing dual listings in Nigeria and London and partnering with the NSE to showcase the rapid developments in Nigerian capital markets and the Nigerian economy.”

Confirmed speakers for the event include: Abimbola Ogunbanjo, Council President, NSE; Oscar N. Onyema, CEO, NSE; Ms. Mary Uduk, Ag. Director General, Securities and Exchange Commission (SEC); Laure Beaufils, British Deputy High Commissioner; Patience Oniha, Director General, Debt Management Office; Hajia Aisha Dahir-Umar, Acting Director General, National Pension Commission; Eme Essien Lore, Country Manager, International Finance Corporation; Dr. Benedict Oramah, President- The African Export-Import Bank; Dr Doyin Salami, Senior Fellow/Associate Professor, Lagos Business School, Pan Atlantic University; Tinuade Awe, Executive Director Regulations, NSE; Alex Okoh, Director General, Bureau of Public Enterprises; Haruna Jalo-Waziri, CEO, Central Securities Clearing System Plc; Tonye Cole, Co-Founder, Sahara Group Ltd and Yvonne Ike, Head of Sub Saharan Africa- Bank of America Merrill Lynch.

Others include: Ibukun Adebayo, Co-Head Emerging Markets, International Markets Unit, LSEG; Abdulkadir Abbas, Deputy Director, SEC; Tony Edwards, Partner- Stephenson Harwood LLP; Tony Ibeziako, Ag. Divisional Head, Primary Markets, NSE; Funso Akere, CEO, Stanbic IBTC Capital Ltd; Abiodun Sanusi, Director, Coronation Merchant Bank; Brian Egan, Group CFO, Dangote Cement; Omair Mohyal, Fixed Income Product Specialist, LSEG; Chinua Azubike, CEO- Infracredit; Kobby Bentsi-Enchill, Executive Director, Stanbic IBTC Capital Ltd; Vivien Shobo, CEO, Agusto &Co; Dapo Olagunju, Managing Director, West Africa-JP Morgan; Zeal Akaraiwe, CEO, Graeme Blaque and Iyobosa Sorae, Head Trading, FI & Treasury, Coronation Merchant Bank.

Recall The Nigerian Stock Exchange and London Stock Exchange Group signed a capital markets agreement in 2014 and renewed in 2017, to support African companies seeking dual listings in London and Lagos.

The agreement followed the implementation earlier in 2014 of a unique new cross-border settlement process between the UK and Nigeria.

NIA Breaks Ground for Building Project

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L-R: Past Chairman of Nigeria Insurers Association (NIA), Mr. Dolapo Balogun; Chairman Governing Council, NIA, Mr. Eddie Efekoha; Deputy Commissioner, Technical, National Insurance Commission, Mr. Olorundare Sunday Thomas; a past Chairman, Mr. Wole Oshin; Deputy Chairman NIA, Mr. Tope Smart, and a past Chairman, Oye Hassan-Odukale during a ground breaking ceremony for a multipurpose NIA towers in Victoria Island, Lagos.
L-R: Past Chairman of Nigeria Insurers Association (NIA), Mr. Dolapo Balogun; Chairman Governing Council, NIA, Mr. Eddie Efekoha; Deputy Commissioner, Technical, National Insurance Commission, Mr. Olorundare Sunday Thomas; a past Chairman, Mr. Wole Oshin; Deputy Chairman NIA, Mr. Tope Smart, and a past Chairman, Oye Hassan-Odukale during a ground breaking ceremony for a multipurpose NIA towers in Victoria Island, Lagos.

The Nigerian Insurers Association (NIA), the umbrella body of insurance firms in Nigeria yesterday conducted the ground-breaking ceremony to commence construction work on its proposed NIA Building in Lagos.

Past Chairman of Nigeria Insurers Association (NIA), Rev. Olusola Olatayo Ladipo-Ajayi; past Chairman, Mr. Dolapo Balogun; Chairman Governing Council, NIA, Mr Eddie Efekoha; Deputy Commissioner, Technical, National Insurance Commission, Mr. Olorundare Sunday Thomas; a past Chairman, Mr. Wole Oshin; Deputy Chairman NIA, Mr. Tope Smart, and a past Chairman, Oye Hassan-Odukale during a ground breaking ceremony for a multipurpose NIA towers in Victoria Island, Lagos.
Past Chairman of Nigeria Insurers Association (NIA), Rev. Olusola Olatayo Ladipo-Ajayi; past Chairman, Mr. Dolapo Balogun; Chairman Governing Council, NIA, Mr Eddie Efekoha; Deputy Commissioner, Technical, National Insurance Commission, Mr. Olorundare Sunday Thomas; a past Chairman, Mr. Wole Oshin; Deputy Chairman NIA, Mr. Tope Smart, and a past Chairman, Oye Hassan-Odukale during a ground breaking ceremony for a multipurpose NIA towers in Victoria Island, Lagos.
L-R: Past Chairman of Nigeria Insurers Association (NIA), Mr. Dolapo Balogun; Chairman Governing Council, NIA, Mr. Eddie Efekoha; Deputy Commissioner, Technical, National Insurance Commission, Mr. Olorundare Sunday Thomas; a past Chairman, Mr. Wole Oshin; Deputy Chairman NIA, Mr. Tope Smart, and a past Chairman, Oye Hassan-Odukale during a ground breaking ceremony for a multipurpose NIA towers in Victoria Island, Lagos.
L-R: Past Chairman of Nigeria Insurers Association (NIA), Mr. Dolapo Balogun; Chairman Governing Council, NIA, Mr. Eddie Efekoha; Deputy Commissioner, Technical, National Insurance Commission, Mr. Olorundare Sunday Thomas; a past Chairman, Mr. Wole Oshin; Deputy Chairman NIA, Mr. Tope Smart, and a past Chairman, Oye Hassan-Odukale during a ground breaking ceremony for a multipurpose NIA towers in Victoria Island, Lagos.

Emirates Fetes Children to Film Show on May 27

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Emirates added fun to the 2018 children’s Day by bringing children together to watch a movie and have fun on the bill of the airline.

Mr. Afzal Parambil, Regional Manager, West Africa Commercial Operations said at the event: ‘We can think of no better way to celebrate the special little travellers in our lives, than by bringing the joy of movies to life. Whether they are flying with family or alone, we ensure that Emirates’ Little Travellers have a memorable time flying with us, so that the journey is as enjoyable as your destination.Emirates

Always a great hit with children and families is our award-winning ice Digital Widescreen which has over 3,000 channels including 50 Disney Classic movies, a dedicated Marvel channel which with movies like Ant Man, Marvel’s The Avengers and Iron Man. Additionally, we have 90 dedicated kids TV channels and around 100 video games for children. With specifically-dedicated channels for children on all flights, both youngsters and their parents can enjoy every minute of travel onboard.

So, in the spirit of celebrating children – we hope you enjoy Sherlock Gnomes to mark the start of summer and commemorate our in-flight experience for children.’

Sovereign Trust Insurance Celebrates Children’s Day with School Kids

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Sovereign Trust Insurance Plc, Segun Bankole poses with one of the Nursery Section recipients of school bags and exercise books
The Head of Corporate Communications and Brand Management of Sovereign Trust Insurance Plc, Segun Bankole poses with one of the Nursery Section recipients of school bags and exercise books in the school premises.

As part of the activities marking the 2018 Children’s Day Celebration and in line with its Corporate Social Responsibility (CSR), Sovereign Trust Insurance Plc paid a visit to Kuramo Nursery & Primary School in Victoria Island, Lagos and gave out branded school bags, exercise books and pens to a host of the pupils who had distinguished themselves academically and in other areas of behavioural conduct.

Kuramo Nursery & Primary School, Victoria Island
The pupils of Kuramo Nursery & Primary School, Victoria Island, Lagos being flanked by the Head of Corporate Communications and Brand Management of Sovereign Trust Insurance Plc, Segun Bankole in a group photograph with members of the teaching Staff in the school.
Sovereign Trust Insurance Plc, Segun Bankole poses with one of the Nursery Section recipients of school bags and exercise books
The Head of Corporate Communications and Brand Management of Sovereign Trust Insurance Plc, Segun Bankole poses with one of the Nursery Section recipients of school bags and exercise books in the school premises.

Sustained Sell Offs Pull YTD Return into Negative Region… NSE ASI Down 1.3%

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Sustained sell offs in the local bourse, which have persisted for 11 days, pulled the All Share Index (ASI) 1.3% lower to 38,104.54 points, its lowest in 5 months while YTD return fell to a deficit of 0.4%.

Consequently, investors lost N181.8bn as market capitalization fell to N13.8tn dragged majorly by NESTLE (-4.4%), DANGCEM (-1.0%) and INTERBREW (-4.8%). Activity level strengthened as volume and value traded inched 39.2% and 108.0% higher to 476.2m units and N9.9bn respectively.

ZENITH (127.2m units & N3.3bn), GUARANTY (74.0m units & N3.0bn) and UBA (65.6m units & N700.8m) were the top traded by volume and value respectively.

Relatedly, Stanbic IBTC Holdings Plc yesterday announced a share acquisition by its parent company, Stanbic Africa Holdings, which would increase its shareholding in the Nigerian bank to 64.4%.

Largely Bearish Sector Performance
Sector performance maintained its bearish trend as 4 of 5 indices we cover closed southwards. The Consumer and Industrial Goods indices lost 2.6% and 2.1% respectively on account of continued selloffs in NESTLE (-4.4%), INTERBREW (-4.8%), NIGERIAN BREWERIES (-1.9%), DANGCEM (-1.0%) and WAPCO (-4.9%).

Similarly, the Banking index declined 1.1% as we saw price depreciation in GUARANTY (-1.2%) and ACCESS(-4.6%) while the Oil & Gas index waned 0.3% due to profit taking in FORTE (-9.1%).

On the flipside, the Insurance index gained 0.2% as price appreciations in LINKASSURE (+1.2%) and MBENEFITS  (+2.8%) buoyed the index.

Investor Sentiment Weakens
Investor sentiment as measured by market breadth (advance/decline ratio) declined to 0.8x from 0.9x as 21 stocks advanced against 26 stocks that declined.

Yesterday’s top gainers were CCNN (+10.1%), FCMB (+8.1%) and FBNH (+5.7%) while INTERBREW (-9.6%), FORTE (-9.1%) and OKOMUOIL (-5.9%) were yesterday’s top losers.
Despite the negative performance, we noticed some bargain hunting in small and mid-cap stocks; hence market performance could improve in the final trading session.

Our view is further buttressed by the fact that the Relative Strength Index of the market is currently at 12.55 points, which is in the oversold region and this is also an indicator of a reversal.

Nigeria, SA Lead April Air Traffic in Africa

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The International Air Transport Association (IATA) announced global passenger traffic data for April 2018 showing that demand (revenue passenger kilometers or RPKs) rose by 6.2% compared to April 2017, which was down from a 12-month high of 9.7% in March.

African airlines’ had a 5.1% traffic increase in April. Capacity rose 4.6%, and load factor edged up 0.4 percentage point to 72.8%. The upward demand trend remains strong, helped by continuing signs of improvement in the region’s largest economies: Nigeria and South Africa. This is only the fourth time in the past 41 months that both economies have been on an upward trajectory at the same time

Comparisons with the year ago period are impacted by developments a year ago – including the comparatively late timing of Easter in 2017, which boosted April traffic. April capacity (available seat kilometers or ASKs) increased by 5.9%, and load factor climbed 0.2 percentage point to 82.3%, which was a record for the month of April, surpassing last year’s record of 82.1%.

“Demand for air transport continues to be above the long-term trend. However, increases in airline cost inputs, most notably fuel prices, means that we are unlikely to see increased stimulation from lower fares in 2018, compared to previous years,” said Alexandre de Juniac, IATA’s Director General and CEO.

April 2018
(% year-on-year)		 World share¹ RPK ASK PLF
(%-pt)²         		 PLF
(level)³
Total Market 100.0% 6.2% 5.9% 0.2% 82.3%
Africa 2.2% 0.9% 0.9% 0.0% 73.1%
Asia Pacific 33.7% 10.9% 9.2% 1.3% 82.8%
Europe 26.5% 3.7% 4.1% -0.3% 84.1%
Latin America 5.2% 5.5% 5.8% -0.3% 81.1%
Middle East 9.5% 3.9% 2.8% 0.8% 77.1%
North America 23.0% 3.7% 4.8% -0.9% 83.3%

¹% of industry RPKs in 2017   ²Year-on-year change in load factor   ³Load factor level

 

International Passenger Markets

April international passenger demand rose 4.8% compared to April 2017. All regions recorded year-over-year traffic increases but all were behind the pace of growth reported in March. Total capacity climbed 4.9%, and load factor slipped 0.1 percentage point to 81.4%.

Asia Pacific carriers posted an 8.5% traffic rise in April, strongest among the regions. It was the first time since December 2017 that Asia-Pacific airlines led in growth. Passenger traffic has continued to trend upwards at an annualized rate in the region of 10%, supported by robust regional economic expansion and ongoing growth in the number of flight options, which translates into time savings for passengers. Capacity rose 7.6% and load factor improved 0.6 percentage point to 81.0%.

Middle East carriers saw demand rise 4.1% in April. Capacity climbed 3.2% and load factor rose 0.7 percentage point to 77.2%. The seasonally-adjusted upward trend in traffic has strengthened since the start of the year, aided by healthy growth on the key routes to/from Asia and Europe, as well as continuing signs of recovery on the market segment to/from North America. Annual comparisons are likely to become more favorable in coming months, owing to the disruptions caused by the proposed travel bans to the US and the since-lifted ban on large portable electronic devices in the year-ago period.

European airlines’ April traffic increased 3.4% compared to the year-ago period. While this was down compared to the 9.8% year-over-year growth recorded in March, demand picked up in April in seasonally-adjusted terms. Capacity rose 4.0%. While load factor dipped 0.5 percentage point to 84.6%, it still was highest among the regions.

North American airlines posted a 0.9% demand increase compared to April a year ago, which was sharply down compared to the 9.5% growth experienced in March. Comparisons to the year-ago period are distorted by the huge pick-up in traffic in April 2017. A bounce back is expected in May, supported by the relatively strong economic backdrop in the US. Capacity climbed 2.4%, and load factor fell 1.2 percentage points to 80.7%.

Latin American airlines experienced a 6.4% rise in April demand compared to the same month last year. Capacity rose 7.5% and load factor slipped 0.8 percentage point to 81.4%. While the year-over-year traffic increase in April was roughly half that of March, the bigger picture remains bright, with seasonally-adjusted traffic volumes having grown at double-digit annualized rates over the past six months.

Consolidated Hallmark Insurance Reports Total Assets of N9.5bn

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L-R:  Eddie Efekoha, Managing Director/CEO, Consolidated Hallmark Insurance Plc; Obinna Ekezie, Chairman, and Rukevwe Falana, Company Secretary, during the company’s 23rd Annual General Meeting (AGM) in Lagos.

Consolidated Hallmark Insurance Plc has reported total assets of N9.49 billion for the year ended December 31, 2017. This compares with the figure of N7.44 billion in the same period of 2016. The company also paid out claims amounting to N3.3 billion to underline its commitments to policyholders.

Mr. Obinna Ekezie, the Chairman of Consolidated hallmark Insurance Plc said at its 23rd Annual General Meeting (AGM) that the company is paying out over N140 million as dividend to shareholders as proof of its financial strength and profitability in the insurance industry.

“It is gladdening to note that the Profit Before Tax recorded a 76 percent leap from N368.1 million to N641 million in 2017. This trend also impacted positively on the Profit After Tax which grew by 108 percent from N194.9 million in 2016 to N406.2 million in 2017.”

Mr. Eddie Efekoha, the managing director of the company said the insurer will continue the implementation of its corporate strategic plan which will enable “us to position ourselves as leaders in the insurance industry.”

Efekoha added that Consolidated hallmark Insurance “shall invest in new product development to adequately exploit the opportunities in the retail market segment.”

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