Connect with us

Markets

Equities Gain N63bn, Dangote Cement Seeks More Market Share

Published

on

Europe stocks
  • Equities Gain N63bn, Dangote Cement Seeks More Market Share

The equities market appreciated by N63bn on Thursday to close at N9.841tn from N9.778tn.

It recorded 30 gainers and 14 laggards as a total of 418.935 million shares worth N4.962bn exchanged hands in 3,944 deals.

UACN Property Development Company Plc led the gainers’ chart, appreciating by 9.74 per cent to close at N2.14.

This was followed by Livestock Feeds Plc, Linkage Assurance Plc, GlaxosmithKline Consumer Nigeria Plc, among others.

On the otherhand, PZ Cussons Nigeria Plc, Mobil Nigeria Plc, Honeywell Flour Mill Plc, May and Baker Nigeria Plc led the decliners’ chart.

Meanwhile, Dangote Cement Plc has reiterated its resolve to expand its market share in Nigeria and further boost earnings in the short term.

Shareholders at the company’s Annual General Meeting in Lagos, approved the dividend payout of N144.8bn, which translated to N8.50 per share as against N8 per share, that was paid in the corresponding period of 2015.

The chairman of the company, Aliko Dangote, while presenting the reports to the shareholders, said the company’s strategy in every country of operations was to be the leader on costs, quality and service.

He said the company build large, modern, highly efficient plants that combined the latest equipment from Europe, China and beyond to enable it make higher-quality cement at lower costs, thereby giving it strong competitive advantages.

He said, “Looking back at the 2016 financial year, I am pleased to report that our cement sales volumes increased by 25 per cent to nearly 23.6 metric tonnes. Of this, almost 14.8mt was sold in the Nigerian market. Revenues increased by 25.1 per cent to N615.1bn, of which 68.3 per cent was generated in Nigeria (excluding eliminations) and 31.7 per cent from Pan-African operations.

“Our earnings before interest, depreciation and amortisation decreased only slightly, to N257.2bn, with Pan-African operations contributing N26.5bn, excluding central costs. Earnings per share increased by 4.5 per cent to N11.34.”

The President, Amiable Shareholders Association of Nigeria, Festus Akano, said the shareholders were pleased with the company as it still went ahead to pay a robust dividend despite the recession in the economy, which also affected its operations, adding that, “This shows the doggedness and the fighting entrepreneurial spirit of the management.”

Another shareholder, Akin Akinwumi, from the Progressive Shareholders Association urged the management to give a bonus and a better dividend in 2017.

He said, “We thank the management for giving us this dividend but we are appealing so strongly that bonus issue should also be considered. For some of us, we prefer a bonus to this dividend and we know it can be done.”

In his remark, the Group Chief Executive Officer of the company, Onne van der Weijde, revealed that the expansion strategy of the company yielded fruits last year when Nigeria was in recession as the plants across Africa contributed significantly to the company’s turnover.

He said, “We can see how that strategy has helped us in a time that our main market (Nigeria) is facing a recession, high inflation, lower consumer spending and a shortage of foreign currency to fund essential imports. But outside of Nigeria, we’ve had operations that have now been running for more than a year and they are experiencing good growth and improving profitability.”

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

Markets

Global Markets Near Record Peaks and Will Get Stronger: deVere CEO

Published

on

Stocks

As the FTSE 100 hits 7,000 points for the first time since the Covid pandemic, global stock markets are poised to “get even stronger”, says the CEO of one of the world’s largest independent financial advisory and fintech organisations.

The observation from Nigel Green, the chief executive and founder of deVere Group, comes as London’s index jumped over the important threshold in early trading in London, gaining over 0.5% to 7024 points.

Mr Green notes: “London’s blue-chip index is up 40% since the worst lows of the pandemic.

“This landmark moment represents the wider optimistic sentiment gripping global markets which are near record peaks.

“We can expect global stock markets to get even stronger as investors look to seize the opportunities from economies reopening.

“They are looking towards economies rebounding in a post-pandemic era due to the monetary and fiscal stimulus, pent-up cash and demand, and strong corporate earnings.

“The current ultra-low interest rate environment and the under-performance of bonds will also act as a catalyst for stock markets.”

However, the CEO’s bullish comments also come with a warning.

“I would urge investors to proceed with caution as there are some headwinds on the horizon, including relations between the U.S. and China, the world’s two largest economies, which could be coming to a tipping point in coming weeks.

“As such, in order to capitalise on the opportunities and mitigate risks, investors must ensure proper portfolio diversification.”

Mr Green concludes: “A variety of factors are going to drive global stock markets. Investors will not want to miss out and should work with a good fund manager to judiciously top-up their portfolios.”

Continue Reading

Markets

Refinitiv Expands Economic Data Coverage Across Africa

Published

on

Building on its commitment to drive positive change through its data and insights, Refinitiv today announced the expansion of its economic data coverage of Africa. The new data set allows investment managers, central bankers, economists, and research teams to use Refinitiv Datasteam analytical data for detailed exploration of economic relationships and investment opportunities among data series covering the African continent.

Securing reliable, detailed, timely, locally sourced content has not been easy for economists who have in the past had to use international sources which often can take many months to update and opportunities to monitor the market can be missed. Because Africa is a diverse continent, economists and strategists need more timely access to country-specific data via national sources to create tailored business, policy, trading and investment strategies to meet specific goals.

Africa continues to develop critical infrastructure, telecommunications, digital technology and access to financial services for its 1.3bn people. The World Bank estimates that over 50% of African inhabitants will be under 25 by 2050. This presents substantial opportunities for investors who can spot important trends and make informed decisions based on robust and timely economic data.

Stuart Brown, Group Head of Enterprise Data Solutions, Refinitiv, said: “Africa’s growing, dynamic and fast evolving economies makes it a focal point for financial markets today and in the coming decades.  As part of LSEG’s commitment to empowering the global markets with accurate and timely data, we are excited about making these unique datasets available via the Refinitiv Data Platform. Our economic data coverage of Africa will provide our customers with deeper and broader inputs for macroeconomic analyses and enable more effective investment strategies and economic research.”

Refinitiv Africa economic data coverage:

  • Africa economics content comprises around 500,000 nationally sourced time series data covering 54 African nations
  • Content is sourced from national statistical offices, central banks and other key national institutions
  • The full breadth of economics categories in Datastream including national accounts, money and finance, prices, surveys, labor market, consumer, industry, government and external sectors
  • International sources including OECD, World Bank, IMF, African Development Bank, Oxford Economics & more provide comparable data & forecasts across the continent

Refinitiv® Datastream® has global macroeconomics coverage to analyze virtually any macro environment, and better understand economic cycles to uncover trends and forecast market conditions. With over 14.2 million economic times series map trends, customers can validate ideas and identify opportunities using Refinitiv Datastream. Access its powerful charting tools, 9,000 pre-built chart templates and chart studies for commonly used valuation, performance, and technical and fundamental analysis.

 Refinitiv continually grows available data – the China expansion in 2019 covered a unique combination of economic and financial indicators. Refinitiv plans to expand Southeast Asia covering Thailand, Vietnam, Philippines and Malaysia with delivery expected in 2021. This ensures that Refinitiv will have much needed emerging market economic content.

Continue Reading

Crude Oil

Oil Rises on Drawdown in U.S. Oil Stocks, OPEC Demand Outlook

Published

on

Oil 1

Oil prices rose in early trade on Wednesday, adding to overnight gains, after industry data showed U.S. oil inventories declined more than expected and OPEC raised its outlook for oil demand.

Brent crude futures rose 28 cents, or 0.4%, to $63.95 a barrel at 0057 GMT, after climbing 39 cents on Tuesday.

U.S. West Texas Intermediate (WTI) crude futures similarly climbed 28 cents, or 0.5%, to $60.46 a barrel, adding to Tuesday’s rise of 48 cents.

Oil price gains over the past week have been underpinned by signs of a strong economic recovery in China and the United States, but have been capped by concerns over stalled vaccine rollouts worldwide and soaring COVID-19 infections in India and Brazil.

Nevertheless, the Organization of the Petroleum Exporting Countries (OPEC) tweaked up its forecast on Tuesday for world oil demand growth this year, now expecting demand to rise by 5.95 million barrels per day (bpd) in 2021, up by 70,000 bpd from its forecast last month. It is banking on the pandemic to subside and travel curbs to be eased.

“It was a welcome prognosis by the market, which had been fretting about the impact the ongoing pandemic was having on demand,” ANZ Research analysts said in a note.

Further supporting the market on Wednesday, sources said data from the American Petroleum Institute showed crude stocks fell by 3.6 million barrels in the week ended April 9, compared with estimates for a decline of about 2.9 million barrels from analysts polled by Reuters.

Traders are waiting to see if official inventory data from the U.S. Energy Information Administration (EIA) on Wednesday matches that view.

Market gains are being capped on concerns about increased oil production in the United States and rising supply from Iran at a time when OPEC and its allies, together called OPEC+, are set to bring on more supply from May.

“They may have to contend with rising U.S. supply,” ANZ analysts said.

EIA said this week oil output from seven major shale formations is expected to rise by 13,000 bpd in May to 7.61 million bpd.

Continue Reading

Trending