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Forte Oil, Honeywell, Cadbury, 19 Others Lose N64bn



People look at an electronic board showing the graph of the recent fluctuations of market indices at the floor of Brazil's BM&F Bovespa Stock Market in Sao Paulo
  • Forte Oil, Honeywell, Cadbury, 19 Others Lose N64bn

The Nigerian equities market closed on a negative note on Monday as Forte Oil Plc, Honeywell Flour Mill Plc, Cadbury Nigeria Plc, Nascon Allied Industries Plc and Oando Plc led a N64bn loss at the close of trading on the floor of the Nigerian Stock Exchange.

The NSE market capitalisation dropped from N9.009tn recorded on Friday last week to N8.945tn, while the All-Share Index slid to 25,986.81 basis points from 26,170.88 basis points.

A total of 160.908 million shares worth N1.115bn were traded in 2,431 deals.

The share price of Forte Oil dropped to N94.32 from N104.50, shedding N10.18 (9.74 per cent), while Honeywell shares closed at N1.14 from N1.20, losing N0.06 (five per cent).

Similarly, Cadbury shares lost N0.05 (4.95 per cent) to close at N10.57 from N11.12, while the share price of Nascon dipped by N0.37 (4.90 per cent) to close at N7.18 from N7.55.

Oando share price also closed at N4.09 from N4.30, losing N0.21 (4.88 per cent).

The NSE ASI opened the week 0.7 per cent lower, dropping below 26,000 points for the first time in six months, as all key sectors closed negative.

The oil and gas sector led the market declines, down by 2.40 per cent following losses in the shares of Forte Oil and Oando.

The financial services sector followed suit on the back of declines in Zenith Bank Plc, Diamond Bank Plc and Guaranty Trust Bank Plc by 4.16 per cent, 2.97 per cent and 2.23 per cent, respectively.

The consumer goods and industrial goods sectors also closed lower amid declines in PZ Cussons Nigeria Plc, Guinness Nigeria Plc and Cap Plc by 4.37 per cent, 0.11 per cent and 4.66 per cent, respectively.

Market breadth remained negative with 10 advances and 22 declines.

On what would shape the next trading session, analysts at Vetiva Capital Management Plc said, “We highlight that investor sentiment remains bearish as revealed by the sell-off across sectors. On this note, we believe ASI could shed more points in the coming session.”

On the global scene, European markets traded higher whilst most Asian markets slipped as investors continued to react to the results of the United States presidential election.

However, the Nikkei closed higher, buoyed by a weaker yen and better-than-expected economic data (Japan’s Q3 Gross Domestic Product grew at an annualised 2.2 per cent year-on-year beating a forecast of 0.9 per cent year-on-year). The Dow opened at a record high driven by gains in financial stocks.

Meanwhile, the interbank call rate moderated a slight 67 basis points to 25 per cent amid a relatively unchanged system liquidity. At the foreign exchange interbank market, the naira depreciated N0.50 against the dollar to close at N305.25 at week open in the spot market whilst the one year forward remained unchanged at N355.

The fixed income market traded bearish on the first trading day of the week as market participants responded to the rise in inflation to 18.3 per cent in October (September: 17.9 per cent).

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and, with over a decade experience in the global financial markets.

Banking Sector

Ecobank Partners NiDCOM to Mobilise Nigerians Abroad for National Development




In a bid to fulfill it’s objectives and mandate, the Pan African Bank has promised to support Nigerians living and working abroad through it’s partnership with NiDCOM.

The Managing Director, Ecobank Nigeria, Patrick Akinwuntan has stated that the bank is privileged to work closely with the Nigerians in Diaspora Commission, (NiDCOM) and will continue to pursue one of its key mandates of helping to enhance the economic development and integration of Africa through its support to Nigerians living and working abroad.

Speaking at the maiden edition of the Diaspora Quarterly Lecture Series with Ecobank as the sole banking partner which took place on Saturday, 8th May 2021, he noted that Ecobank remains a critical bridge for Nigerians abroad, as it has made huge investments in the necessary platforms to enable them connect with home seamlessly. The event held online and had over 2000 participants from across all the continents in attendance.

“Nigerians in the diaspora play a major role in nation building, their contribution goes a long way to catalyse economic development. For us at Ecobank, we are a pan-African institution positioned to foster the economic growth and integration of our continent, so we are particularly pleased to work closely with the Nigerians in Diaspora Commission (NiDCOM), ably led by the Chairman/CEO, Hon Abike Dabiri-Erewa”.

“We are committed to ensuring that every Nigerian living abroad is able to remit home seamlessly and affordably, access viable investment opportunities and as the financial institution of choice for Nigerians abroad, we have deployed the necessary resources to actualise this.” He stated.

The Minister of Interior, Ogbeni Rauf Aregbesola, who was also present, reiterated the readiness of the government to collaborate with Nigerians in the diaspora, highlighting the new processes put in place to facilitate passport issuance, noting that all backlog of passport applications would be cleared by the end of May 2021.

Also speaking, the Hon. Minister of State, Foreign Affairs Amb. Zubairu Dada said harnessing the human capital and material resources of Nigerians in the diaspora towards the socio-economic, cultural, and political development of Nigeria can no longer be ignored. He pointed out that the Nigerian diaspora community is well educated, resourceful, skilled, and exposed to global best practices.

The NiDCOM Chairman/CEO, Hon. Abike Dabiri- Erewa explained that the Diaspora Quarterly Lecture Series is projected to be a major aspect of national discourse, where Nigerians abroad can be kept abreast of the government’s policies, programmes and projects.

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Increase in Price Boosts Revenue of Dangote Sugar by 41.5 Percent in Q1 2021



Dangote Sugar - Investors King

Revenue of Dangote Sugar Refinery Plc rose by 41.5 percent to N67.394 billion in the first quarter (Q1) of 2021 from N47.643 billion recorded in the same quarter of 2020.

According to the leading sugar manufacturer, the increase in revenue was a result of the increase in the price of sugar in the first quarter. The company claimed price adjustment was necessary to mitigate the negative effect of inflation and depreciation on the company.

Volumes only rose by 5.7 percent during the quarter despite a 41.5 percent increase in revenue, meaning the increase in price was the main sales catalyst.

In the company’s unaudited financial statements, gross profit grew from N12.721 billion in Q1 2020 to N18.044 billion in Q1 2021.

Similarly, operating profit stood at N15.884 billion, up from N10.747 billion posted in Q1 2020.

Finance cost more than double from N1.353 billion in Q1 2020 to N3.412 billion in Q1 2021.

Dangote Sugar’s profit before tax rose from N9.509 billion recorded in the corresponding quarter to N11.949 billion in the quarter under review.

The company paid N3.646 billion in income tax, slightly higher than N3.137 paid in the same quarter of 2020.

Profit for the period grew from N6.372 billion in Q1 2020 to N8.302 billion in Q1 2021.

Commenting on the company’s performance, Dangote Sugar said “EBITDA increased by 34.7% to N17.02 billion (2020: N12.64 billion) on account of increased earnings. Group profit after taxation for the period increased by 30.3% to N8.30 billion (2020: N6.37 billion) reflecting management’s unrelenting drive to deliver consistent shareholder value.”

On price increase, the company hinged it on series of devaluation carried out in 2020 by the Central Bank of Nigeria (CBN), escalating inflation, port congestion and rising in price of global sugar. Dangote Sugar said its imported raw sugar from Brazil under Federal Government’s backward integration plan.

We have continued to witness high cost of raw materials, energy costs and other input costs due to rising inflation and FX rate fluctuation. Further cost escalation is anticipated in the year as inflationary pressure mounts,” the company said.

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FBN Holdings Suffers 39 Percent Drop in Profit to N15.6 Billion in Q1 2021



FBN Holdings - Investors King

FBN Holdings Plc profit after tax declined by 39 percent from N23.140 billion recorded in the first quarter (Q1) of 2020 to N15.6 billion in the first quarter of 2021.

In the leading financial institution’s unaudited financial statements released through the Nigerian Exchange Limited, gross earnings declined by 14.5 percent to N137 billion in the period under review, down from N160 billion filed in the previous quarter.

Similarly, net interest income declined from N60.253 billion achieved in Q1 2020 to N52.793 billion.

Net interest income after impairment charge for losses also dipped from N50.547 billion in Q1 2020 to N39.619 billion in Q1 20201. While net fee and commission income rose from N20.773 billion in Q1 2020 to N28.427 billion in Q1 2021.

Profit before tax declined by 34 percent to N18.906 billion in the quarter under review, down from N28.680 billion posted in the corresponding quarter of 2020.

FBN Holdings paid N3.285 billion in income tax in the first quarter of 2020.

Therefore, profit for the period stood at N15.621 billion. While Net Assets contracted from N765.2 billion to N764.8 billion.

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