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Lafarge, 17 Others Lift Stock Market by 2.21%



Stock Investors
  • Lafarge, 17 Others Lift Stock Market by 2.21%

The Nigerian Stock Exchange on Monday saw the market capitalisation of listed equities rise by N193bn as 18 stocks led by Lafarge Africa Plc recorded price appreciation.

Eight banking stocks posted gains, with Diamond Bank, Stanbic IBTC Holdings Plc, Ecobank Transnational Incorporated and Union Bank of Nigeria Plc among the top five gainers at the end of trading.

The NSE All-Share Index rose by 2.21 per cent on Monday, the first trading day after the Central Bank of Nigeria introduced a new policy to allow foreign investors to engage in foreign exchange trading at rates set by the buyers and sellers.

The CBN on Friday established a forex widow for investors and exporters to boost liquidity in the forex market and ensure timely execution and settlement for eligible transactions.

Industry analysts and other stakeholders have said the low level of liquidity and currency curbs in the country had kept foreign investors on the sidelines in recent times.

The NSE ASI closed at 25,747.05 basis points on Monday from 25,189.37 bps on Friday while the market capitalisation increased to N8.909tn from N8.716tn.

The share price of Lafarge jumped by 10.24 per cent to close at N50.71, while that of Diamond Bank rose by 5.56 per cent to close at N0.95.

Stanbic gained 4.98 per cent to close at N21.49 per share; ETI appreciated by 4.93 per cent to close at N7.45 per share, and Union Bank increased by 4.84 per cent to N4.98 per share.

Other gainers on Monday included 7UP Bottling Company Plc, United Bank for Africa Plc, Dangote Cement Plc, Guaranty Trust Bank Plc and Nigerian Breweries Plc.

Eleven stocks recorded price losses, with Nascon Allied Industries Plc leading the pack with a decline of 4.91 per cent to close at N7.36 per share.

Nestle Nigeria Plc shed 4.9 per cent to close at N713.5 per share, while NPF Microfinance Bank Plc fell by 4.27 per cent to close at N1.12 per share.

Fidson Healthcare Plc dropped by four per cent to close at N0.96 per share, while Portland Paints and Products Nigeria Plc lost 3.7 per cent to close at N1.82 per share.

A total of 211.757 million shares worth N1.409bn in 3,054 deals were traded on Monday by investors on the floor of the Exchange.

Lafarge Africa, which released its Q1 2017 results on Monday, said its profit after tax grew to N9.4bn compared with a pre-tax loss of N2.2bn in the corresponding quarter of 2016.

An analyst at FBN Capital Limited, Mr. Tunde Abidoye, said the robust PBT growth was driven by stellar sales growth of 55 per cent year-on-year and a significant gross margin expansion of 1,085 basis points y-o-y to 25.7 per cent.

“Further down the Profit and Loss account, PAT accelerated by 272 per cent y-o-y to N14.1bn, thanks to a positive result of N9.3bn (related to forex gains) on the other comprehensive income line,” he said.

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.

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Personal Finance

Don’t Let Lifestyle Inflation Jeopardize Your Financial Future – FBNQuest



Investors King

A phenomenon that is often less obvious to most people is lifestyle inflation, otherwise known as “lifestyle creep”. It occurs when a rise in discretionary income, the amount available to an individual after making essential expenses, prompts an increase in living standards as luxuries become new necessities.

Financial literacy is an important aspect of learning what strongly impacts your quality of life. It affects your ability to navigate through economic downturns and your response to unexpected financial windfalls. Changes in financial fortunes happen to us in varying measures, influencing how we save, spend and invest. Without a plan, it becomes more difficult to resist increased spending: the urge to upgrade your cable subscription, enjoy fine dining, add more items to your cart, and add a few more luxuries to your travel experience. The list of possibilities is endless when you have more money to spend on optional items.  It all adds up quickly and when you adapt to your new lifestyle, it becomes more challenging to give up former luxuries that now feel like necessities.

It’s not all bad though. A measure of lifestyle inflation is unavoidable and not entirely unacceptable. It is okay to reward yourself, however, you must avoid situations where subtle increases in your expenses become obstacles on your path to achieving your financial goals.

The younger population, in particular, should pay more attention to lifestyle inflation given its potential long-term impact on investment goals. Research in the United States indicates that most inflation-adjusted wage growth occurs in the early working years of the population. It is likely that a similar pattern occurs in Nigeria. This implies that failure to keep lifestyle inflation under control in your early working life may cost you the opportunity to make investments that will be more valuable later in your career.

Lifestyle inflation can be best managed by creating a system that makes it easy to save and invest your money. Here are two simple recommendations that could help you build habits to limit the impact on your financial goals.

  1. Create a reverse budget that treats your goals as bills:  This is a simple spending plan where your primary focus is on saving and investing first, before taking care of any other expense.
  2. Automate your finances, especially your savings and investments: Few people find a way to increase their savings over time, however, modern technology has provided platforms that make it easy to escalate savings and investments routinely. The great thing about automating your finances is that it offers an opportunity to seamlessly create a new habit. Research shows that you are more likely to succeed at things that become habits than at things that require change because we are wired as humans to resist change.

FBNQuest Asset Management offers you the opportunity to automate investments in one of a series of products that best fit your financial goal. If you are a conservative investor, you may consider making regular investments in the FBNQuest Money Market Fund. If you are more risk-tolerant, you may decide to seek higher returns by investing in the FBNQuest Equity Fund. Automatic debits could be made monthly from your bank account.

Creating a system for financial success is all about making intentional choices with our money. A good system will direct your money to the things that matter most and keep you on track to handling lifestyle inflation.

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FG to Earn N462 Billion from Electronic Money Transfer Levy in 2021 – World Bank



Money Transfer - Investors King

The World Bank has said the Federal Government of Nigeria will earn an estimated N462 billion from electronic money transfer levy in 2021.

The leading multilateral financial institution disclosed in its ‘Resilience through Reforms’ report.

The Federal Government had introduced a levy on electronic money transfer in the Finance Act 2020 to take advantage of the growing electronic transfer in the country and up revenue generation.

The electronic money transfer levy is a single one-off charge of N50 on electronic fund transfer in any deposit money bank or financial institution on any type of account on sums of N10,000 or more.

Akpan Ekpo, the Chairman of the Foundation for Economic Research and Training, who spoke in a telephone interview voiced his concerns on the levy.

He said, “The levy is remitted to the government, which is fine. But I think the savers, the people who use the transfer channels, are over-levied. You pay maintenance fee, transfer fee, and I think if this level of levying continues, it will discourage people from using electronic channels.

“Personally, I think the EMT levy should be out of the Finance Act. There is too much burden on the citizens, although the government is making great money from it. Let us hope they use the money wisely, but it shouldn’t have been put there in the first place.

“It is a law now; there is nothing that can be done about it. But I hope it is used wisely, and they would be transparent about how the money is being used.”

Akpan said the EMT levy would discourage individuals outside the formal banking net.

He said, “With the EMT levy, more people are discouraged from using the banks and its services. A lot of Nigerians sell in rural areas, and are outside the financial system net.

“With the EMT, more people are further excluded. There really was no need to introduce the EMT; it will discourage those who are not already in the formal banking sector from even coming into it. It is likely to further deepen the financial exclusion of many Nigerians.”

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Banking Sector

Hope PSBANK Collaborates With FG To Create 100 Jobs In Each Local Government



Hope PSBank- Investors King

Hope Payment Service Bank, a subsidiary of Unified Payment Services Limited and Nigeria’s premier digital bank is collaborating with the Federal Government through the Ministry of Labour and Productivity to create jobs for no fewer than 77,400 people across the country.

The employment opportunity is part of the exit strategy of the Federal Government’s Special Public Works Programme being executed alongside the bank by empowering 100 Nigerians in each of the 774 local governments.

Speaking at the official kick-off of the collaboration, the Managing Director, Hope Payment Service Bank, Mr. Ayotunde Kuponiyi noted that the digital bank serves as an enabling platform that would interface with 77,400 beneficiaries selected from the Special Works Programme of the FG to exit them into self-employment.

Kuponiyi stressed that the focus of the collaboration is geared towards empowering beneficiaries through the agency banking platform in carrying out financial services such as account opening, bills payments, fund transfer, cash in/cash for Nigerians while they earn commission in return with just the use of their smartphones.

According to him, this initiative comes at no cost to the beneficiaries as they can use their phones to carry out agency banking activities for which they earn commissions on each activity carried out. “Once on board, these beneficiaries will become HOPE PSBANK agents. They will undergo training on the various activities by the bank at no cost to them”, he added.

“We are very excited about this collaboration with the Ministry, which is in line with the thrust of the social objectives of Hope Payment Service Bank – poverty reduction through financial inclusion and diffusion of digital financial services”, he said.

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