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Improved Half-year Earnings Lift Equities Market to N12.7tn

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Nigerian Exchange Limited - Investors King
  • Improved Half-year Earnings Lift Equities Market to N12.7tn

It was highly rewarding for investors at the stock market last week as the market continued on its gaining streak for the third consecutive week. The market closed with a record weekly gain of N980 billion in capitalisation to be at N12.705 trillion while the Nigerian Stock Exchange (NSE) All-Share Index soared by 8.3 per cent to close at 36,864.71.

Similarly, all other indices finished higher during the week with the exception of the NSE ASeM Index that depreciated by 1.09 per cent.

However, the gains recorded last week were majorly propelled by reactions to positive hall year financial results by companies. Although it was mixed grill, many of bellwether companies impressed investors with increase in their bottom-lines for the half year ended June 30, 2017.

Daily Market Performance

The bulls remained in control when trading resumed on Monday, lifting the NSE index by 1.86 per cent to a new year high of 34,652.52. Similarly, the market capitalisation appreciated near N12 trillion mark, closing at N11.94trillion.

The appreciation recorded in the share prices of Zenith Bank, Lafarge Africa, Access Bank, Dangote Cement, and UBA was mainly responsible for the gain recorded in the Index.

Investors traded 293.75 million shares worth N3.94 billion in 3,712 deals. The most actively traded sectors were: Financial Services (254.52 million shares), Conglomerates (16.51 million shares), and Consumer Goods (11.31 million shares), while the three most actively traded stocks were: Access Bank (73.56 million shares), UBA (34.61 million shares) and GTBank (32.57 million shares).

In terms of sectoral performance, three sectors closed in green, while two in red. The NSE Industrial Goods Index topped gainer’s chart, appreciating 2.5 per cent due to sustained buying interest in Dangote Cement Plc and Julius Berger Nigeria. The NSE Banking index trailed, chalking up 1.1 per cent, while the NSE Oil & Gas Index ended the day 0.1 per cent higher. On the flip side, the NSE Consumer Goods Index fell 0.5 per cent due to sell-off in Nestle Nigeria Plc and PZ Cussons. In the same vein, the NSE Insurance Index shed 0.4 per cent.

The market recorded its 14th positive consecutive session, as investors remained bullish on value stocks ahead of earnings releases. Consequently, the NSE ASI advanced by 1.19 per cent to close at 35,065.47, increasing the month-to-date and year-to-date returns to 7.29 per cent and 32.22 per cent, respectively.

The bourse recorded gains across all sectoral indices led by the NSE Industrial Goods Index with 2.9 per cent. NSE Banking Index and NSE Oil & Gas Index added 2.6 per cent and 1.7 per cent in that order. The NSE Insurance Index appreciated by 0.59 per cent, just as the NSE Consumer Goods Index rose by 0.12 per cent.

Following a 15-day bull run, the market hit a new year high on Wednesday moved closer to a three-year high after the index rose 3.4 per cent to hit 36,740.77, while market capitalisation closed higher at N12.662 trillion. That was a 32-month high, which was last attained in November 2014.

However, Wednesday bullish performance was largely driven by appreciation in Dangote Cement (+4.9 per cent), Nigerian Breweries (+5.0 per cent) and GTBank (+5.0 per cent).

All sectoral indicators closed positively in line with the bullish trend. The NSE Banking Index recorded the highest gain, rising by up 3.7 per cent due to appreciation in GTBank (+4.9 per cent) and Zenith Bank (+6.7per cent). The Consumer Goods Index trailed with a gain of 2.8 per cent on the back of gains recorded by Nigerian Breweries (+5.0 per cent) and PZ Cussons (+5.0 per cent).

Also, the NSE Industrial Goods Index added 2.5 per cent higher due to a rally in Dangote Cement (+4.9 per cent), just as the NSE Oil & Gas Index chalked up 1.8 per cent. The NSE Insurance Index closed 0.4 per cent higher.

The market sustained its rally on Thursday as the index rose by 1.37per cent to close at 37,245.17, while the market capitalisation hit N12.84 trillion.

The appreciation recorded in the share prices of Zenith Bank, UBA, Seplat, Nestle, and Nigerian Breweries bolstered the Thursday performance.

Investors traded 542.8million shares valued at N8.01 billion in 5,939 deals on that day, up 72.5 per cent from N4.64 billion recorded the previous day.

The most actively traded sectors were: Financial Services (437.04 million shares), Consumer Goods (53.59 million shares), and Conglomerates (22.90 million shares), while the three most actively traded stocks were: UBA (117.26 million shares), Zenith Bank (63.03 million shares) and Diamond Bank (52.15 million shares).

However, performance across the various sectors was mixed as three of five indices closed in the green. The NSE Consumer Goods Index led with 3.8 per cent trailed by the NSE Insurance Index that added 2.2 per cent.

The bears set in on Friday on profit taking after 16 consecutive days of bull run, making the index to depreciate by 1.02 per cent to close the week at 36,864.71. Profit taking in the share prices of Dangote Cement, FBN Holdings, UBA, Access Bank, and Nigerian Breweries was mainly responsible for the decline recorded on Friday.

The most actively traded sectors were: Financial Services (417.57 million shares), Conglomerates (58.39 million shares), and Consumer Goods (28.29 million shares), while the three most actively traded stocks were: FBNH (96.86 million shares), Diamond Bank (88.08 million shares) and Transcorp (57.84 million shares).

Market Turnover

Meanwhile, a total turnover of 2.211 billion shares worth N30.636 billion in 26,287 deals were traded last week by investors in contrast to a total of 3.628 billion shares valued at N34.886 billion that exchanged hands the previous week in 19,834 deals.

However, the Financial Services Industry led the activity chart with 1.735 billion shares valued at N19.044 billion traded in 14,626 deals; thus contributing 78.45 per cent and 62.16 per cent to the total equity turnover volume and value respectively. The Conglomerates Industry followed with 165.396 million shares worth N454.240 million in 1,400 deals. The third place was occupied by Consumer Goods Industry with a turnover of 135.802 million shares worth N6.681 billion in 4,143 deals.

Trading in the top three equities namely – United Bank for Africa Plc, FBN Holdings Plc and Access Bank Plc, accounted for 798.334 million shares worth N7.165 billion in 5,855 deals.

Also traded during the week were a total of 1.732 million units of Exchange Traded Products (ETPs) valued at N13.711 million executed in 19 deals compared with a total of 40 units valued at N493.60 transacted two weeks ago in four deals.

Also, a total of 750 units of Federal Government Bonds valued at N695,229.29 were traded last week in eight deals, compared with a total of 13,465 units valued at N14.486 million transacted the previous week in 10 deals.

Price Gainers and Losers

The price movement chart showed 51 equities appreciated higher than 36 equities of the previous week, while 23 equities depreciated in price, lower than 33 equities of the previous week. Conoil Plc led the price gainers with 21.4 per cent, trailed by Presco Plc with 20 per cent. Dangote Sugar Refinery Plc appreciated by 19.3per cent just as May & Baker Nigeria Plc chalked up 15.7 per cent. Stanbi IBTC Holdings Plc garnered 15.5 per cent just as Okomu Oil Palm Plc closed 15.3 per cent higher.

Other top price gainers include: Fidson Healthcare (14.9 per cent); Ecobank Transcorporation Incorporated (13.3 per cent); C & I Leasing Plc (13.1 per cent) and Zenith Bank Plc (12.8 per cent).

Conversely, Cadbury Nigeria Plc led the price losers with 18.1 per cent, followed by Morison Industries Plc with 17.5 per cent. Livestock Feeds Plc and Neimeth International Pharmaceuticals Plc shed 13.3 per cent and 13 per cent in that order. UACN Property Development Company Plc and Unity Bank Plc went down by 8.9 per cent and 8.5 per cent respectively.

Other top price losers were: AIICO Insurance Plc (8.3 per cent); Red Star Express Plc (7.4 per cent); Chellarams Plc (4.9 per cent) and Cement Company of Northern Nigeria Plc (4.9 per cent).

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Finance

With Giants Campaign, FirstBank is Truly Woven Into The Fabric of Society

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Olusegun-Alebiosu-MD,CEO Firstbank

In its usual creative conjecture, 13O-year-old FirstBank, has hit the airwaves and other media outlets with various visuals to articulate its new campaign ‘The Giant in You’. Breaking down the central message, ‘there is a giant in you’ the campaign stylishly reminds the bank customer that ‘FirstBank Puts You First so you can’ before giving the match order, ‘Live the Giant-Life.

For a bank that settles for the big ‘elephant’, as logo and has remained strong for 130 years, worlds like giant, tall and strides, used in the various visuals are simply validations of its robustness, endurance, doggedness and tall ambition. As part of the ways to convey the bank’s message to its array of patrons, SO&U, the creative agency behind the campaign cleverly selected its cast and buildings, including FirstBank’s corporate headquarters, to reflect the bigness, the tallness and the boldness of the 130-year-old financial institution to rule the world as far as banking and business support are concerned.

Unraveling the ‘Giant’ strides…

Among other reasons, the new campaign must have been conceptualized to position FirstBank as a ‘giant’ and ‘future-ready’ institution that is dependable, innovative and proactive in supporting its customers and stakeholders win in the race to the future and be in a position to take advantage of the opportunities and possibilities of that emerging future.

Driven by the conviction that  consumers want to turn their big dreams into giant successes, the new campaign reminds the consumer that in today’s world of constant disruptions and integrated experiences, the customer needs a strong, stable and supportive partner, with the appropriate platforms, innovative solutions and networks to not only support their aspirations but also be responsive and adaptive enough to anticipate their needs and empower them to success.

Looking through the visuals and the television commercial, it’s easy to conclude that the campaign narrative is not about the brand but the customer. For instance, the creative path illustrates the world as it moves and changes at lightning speed, the customer is reminded that just like the world, everything within it is also changing, from economies to businesses and even opportunities.
“We recognise that to be in sync with the world will require a forward thinking and future ready mindset …and we have created the atmosphere, products and services to help our customers,” the bank stated.

To underscore ‘the big idea’ and the ‘bringing out the Giant in you’ theme, key visuals speak to the essence of the campaign and are accompanied with long and straight legs in a demonstrative form to take the purported giant step. Here the messages are passed under the following; ready to take giant strides?, strides into the future, let’s take giant strides together, stand tall, stand out, think giant solutions, among others.

Facts and figures…

Like Coca-Cola, the world number one brand, one other thing that has consistently worked for the FirstBank brand is that the promoters have never, for once allowed complacency to set in. The implication of this is that the bank is not only the oldest, but also one of the most digitally compliant banks.  Currently, First Bank stands tall via First Bank digital solutions, employs market-leading digital platforms and solution driven products and services. Besides, the use of AI and Robotic Process Automation (RPA) by the bank enables the financial brand to initiate 85 percent of its transactions via digital platforms leading to quick responses to customers’ needs and satisfaction. In this regard, FirstBank has been recognised by Interswitch as the first financial institution in Nigeria to achieve 100 million sustained monthly transactions in electronic payment and it has hit N1 trillion transactions through the FirstMonie Agent network.

Speaking during the unveiling of the new thematic brand campaign, Head, Brand and Stakeholder management at FirstBank, Yinka Ijabiyi, reiterated that FirstBank came up with the new campaign because of its belief that there is a ‘giant’ in every customer, every employee and every stakeholder.

He said, “This campaign was informed by our belief that there is ‘giant’ in every stakeholder a giant dream, a giant possibility, a giant idea, a giant life and a giant future waiting to be birthed. Our commitment is therefore to provide all necessary business support, financial know-how and platforms to bring out the giant in every customer.”

Ijabiyi further pointed out that the campaign was conceptualised by the bank in a bid to show customers in its 130 years, that it has been supporting and creating giants and that it has no plan to stop anytime soon.

He said the bank, in its celebration of its 130 years in business, came up with a campaign that speaks to the business essence of its brand which is making giants of its customers.

“We have always done it and the fact we have been around for such a long time means good to everybody as we have been supporting businesses, individuals and government in those years. “We are making giants and there is no business that interacts with us that does not see the benefits in their business. We are making giants in our customers and we will not stop.

“We are the partner with tailored solutions for every customer, employee, and stakeholder. We have what it takes to turn dreams into giant successes. FirstBank’s services are designed to help customers “giant-size” their dreams, offering businesses the platforms and solutions needed to grow, innovate, and achieve remarkable success.” Ijabiyi added that the array of products, solutions and services offered by FirstBank cannot be compared with any financial services in Nigeria.

For its customers, the bank said “We would enable, inspire and support you with our world of financial services to help you to giant-size your dreams and live your best life”. It also said it “would give businesses and business owners the right platforms and solutions they need to grow, initiate and execute bold ideas.

Meanwhile, the creative agency behind the campaign has hinted to the media that the unveiled materials were mere ‘tip of the iceberg’ as efforts are ongoing to domesticate the same campaign in local languages to connect with customers across the major ethnic groups in Nigeria.

A peep into the past…

When the promoters said First Bank was “truly the first, many grudgingly agreed. But deep inside its competitors – the possible grudging camp – is the truth regarding the extreme distance the bank has given others in performance and people relevance of its operations! They knew the bank was not bluffing. Not only has it rediscovered itself, but the ability to shed its ancient mindset in terms of operations and blend with modern trends in banking have left many agreeing that perhaps, the saying that the older the wine the better it gets in taste actually applies to FirstBank. To this end, it’s not by accident that First Bank has produced at least two former governors of the CBN and a Finance Minister, including Chief Joseph Sanusi and the current Emir of Kano, Sanusi Lamido Sanusi.

Perhaps the current campaign is an offshoot of a story-telling Television Commercial, by the bank to reflect the beginning of modern banking and how the bank has consistently grown with Nigeria’s enterprises through partnership and innovation.

The referenced TVC says it all: A combination of historical renaissance and quite prescient validation of the innovation that usually drives its bewitching communicational ads. From the groundnut pyramids of the north, which was the symbol of the regions commercial edge and the cocoa bean mountains of Western Nigeria to the rubber plantations of the East and Mid-eastern region, First Bank has applied its new campaign to remind its decades-old patrons, customers, and even competitors, that the beat has refused to abate.

Throughout the campaign, FirstBank subtly registers itself in the minds of the banking public that it’s entirely Nigerian – past, present, and the future. The well-crafted historical simulation captures how FirstBank opened its first branch in Lagos in 1894 and started helping merchandise and local traders to grow their businesses. The excitement and enthusiasm on the faces of the bank’s early customers after getting their cash books from the Lagos office say it all. Like someone who has gotten a glimpse of what the future holds with banking, the customers express surprises and happiness. The commercial captures the mood and goes back in memory lane on how the bank has helped many people succeed in their ventures. Subtly, the narrator takes viewers to Kano and reveals how the then richest men in the commercial city were making their deposit of 20 bags of Silver in an atmosphere that looks like the first operational day of the bank.

Perhaps the beauty of the commercial lies more in the way it strikes a balance between the ancient and the modern days through setting and swapping of background colours. This was cleverly explored in referencing the way the bank transformed into an online haven, driven by technology. While reminding the patrons of the bank’s transformation and technological advancement, the narrator is quick to talk about the expansion of the bank beyond the shores of Nigeria to the West-African region and beyond. The TVC also positions FirstBank as a socially responsible brand by touching on various initiatives it has embarked on. Specifically, First Bank’s contribution to Sports through its support for football and athletics is captured very well.

The ‘Giant in You’ is another chapter as the bank begins a fresh journey after operating for 130 years.

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Banking Sector

Jaiz Bank Boosts Chairman’s Income to N24m Amidst Strategic Expansion

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Jaiz Bank

Jaiz Bank has announced a 20% increase in its chairman’s annual income to N24 million.

This decision was unveiled in a recent statement filed with the Nigeria Exchange Limited, highlighting the bank’s commitment to rewarding leadership amidst its expansion plans.

The bank, renowned for its pioneering role in non-interest banking in Nigeria since 2012, also approved a remuneration package of N20 million for each non-executive director.

The announcement was made by the bank’s secretary, Mohammed Shehu, highlighting the importance of competitive compensation for board members who provide crucial oversight and strategic guidance.

Shareholders at the Annual General Meeting (AGM) expressed confidence in the board’s leadership by approving the resolution on directors’ fees.

This move aligns with Jaiz Bank’s ongoing efforts to enhance its capital base to N70 billion by the end of 2024.

The bank also announced a dividend of 4 kobo per share, which will be distributed to shareholders on July 16, 2024.

This dividend declaration was welcomed as a testament to the bank’s operational success in a challenging economic climate.

Also, the AGM saw the re-election of Muhammadu Indimi and Muhammad Abdulmutallab as non-executive directors, reaffirming shareholder trust in their leadership capabilities.

Jaiz Bank’s financial performance has been impressive, with a 67% increase in profit before tax, reaching N11.1 billion in 2023.

Gross earnings also rose by 42% to N47.2 billion from the previous year, showcasing the bank’s successful growth strategy.

As Jaiz Bank continues to expand its services, the enhanced remuneration package signals a commitment to maintaining strong governance and leadership, paving the way for future achievements in ethical banking.

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Finance

ARISE IIP and Africa Finance Corporation Launch US$ 100M Capital Pool for African Entrepreneurs

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ARISE IIP, the pan-African developer and operator of world-class industrial parks, and Africa Finance Corporation (AFC), the leading infrastructure solutions provider in Africa, today announced the signing of a Memorandum of Understanding to establish a dedicated US $100 million capital pool for African entrepreneurs who are establishing operations within any of the Arise IIP Special Economic Zones (SEZ) in Africa. 

At the heart of this partnership is a shared vision to uplift African entrepreneurs by providing them with much needed financing and advisory services to catalyse growth.

AFC will also actively seek financing from Export Credit Agencies (ECAs), local and regional financial institutions to mobilise funding to support these companies.

This concerted effort underscores ARISE IIP and AFC’s commitment to fostering industrialisation, job creation and economic prosperity in Africa.

Under this partnership, AFC’s comprehensive suite of financial services will extend beyond financing to include financial advisory support for corporate finance, equipment financing and market entry including assisting with joint ventures and technical partnerships for sponsors that may require it, to ensure they are well-equipped to seize opportunities and thrive within the SEZs.

By tapping into AFC’s extensive network and expertise, ARISE IIP aims to cultivate a vibrant ecosystem that nurtures entrepreneurship and drives sustainable economic development across the continent.

Gagan Gupta, CEO of ARISE IIP said about this partnership: “ARISE IIP is about empowerment. By empowering our customers, and ensuring they have the robust financial support needed to meet their operational objectives, this collaboration with Africa Finance Corporation, our long-lasting partner, takes us one step closer to realising our vision of an industrialised and prosperous Africa.

Samaila Zubairu, President & CEO of AFC said: This partnership marks a significant milestone in our commitment to offer strategic financial advisory and corporate finance services to firms focused on value capture and import substitution projects in Africa. By collaborating with our investee company Arise IIP and African entrepreneurs in our Special Economic Zones, we aim to foster an ecosystem that will increase trade, create jobs, and drive economic advancement on the continent.

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