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Capital Bancorp Rates Economy, Stocks High this Year

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  • Capital Bancorp Rates Economy, Stocks High this Year

Capital Bancorp Plc has predicted a bullish year for the Nigerian stock market and the economy at large, given the current positive indicators in the macroeconomic environment.

The frontline capital market operator with about 30-year presence in the market space, gave the insight in its special 70-page report dubbed, ‘Economic Review and Outlook for 2018’. The report has been formally released to the financial press.

The company also highlighted some headwinds that could moderate the economy as well as market performance in the year if not managed.

The company’s Managing Director, Mr. Higo Aigboje, while addressing the media in Lagos on Tuesday, said the current price of oil and volume currently being produced in the economy as well as efforts of the current government targeted at diversifying the economy’s revenue base via improved taxation and massive agricultural development, were strong economic impetus.

He also said the performance boosters of The Exchange for the year were: stability of oil prices; effective management and improved liquidity of the foreign exchange market; improvement on corporate earnings; significant focus on the non-oil sector to increase output and lower interest rate regime.

Aigboje said, “This will be driven by effective synergy in the use of fiscal and monetary policies, government’s focus on the real sector of the economy, improved market participation by local investors and domestic institutional investors, efficient regulation of the market by the Securities and Exchange Commission and the Nigerian Stock Exchange.

“Others are passage of the Petroleum Industry Bill, unbundling of the Nigerian National Petroleum Corporation and listing of resultant companies and deliberate efforts aimed at encouraging more listings on the Exchange by companies in the telecoms, power generation and distribution spaces, among others.”

Aigboje, however, explained that issues such as sudden rise in insecurity as a result of the planned general elections, could cause some sort of political instability, thus triggering the exit of the Foreign Portfolio Investors, adding that, “Sudden reversal in oil prices, an upturn in the yields of fixed income securities and failure in the banking sector may trigger a sell-off and cause further damage to the entire stock market.”

According to him, the company’s review of the global and Nigerian financial markets was designed to serve as a compass for both indigenous and foreign investors as is as potential investors.

By the review’s executive summary which was presented by the company’s Chief Analyst, Mr. Victor Chiazor, Capital Bancorp forecast that the global economic growth would hit 3.5 per cent this year as against 3.1 per cent last year.

“ With ample opportunities in some stocks in the banking sector and the consumer goods sector of the equities market , we have projected a 25 per cent return for the Nigerian stock market in 2018, though downward risks to achieving this target remain visible,”Chiazor said.

Speaking on Bancorp e-Trade, Aigboje noted that it was a high-technological innovation aimed at promoting financial inclusion in Nigeria.

According to him, the product allows an investor to trade online in the stock market and it is being upgraded for additional uses.

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 long experience in the global financial market. Contact Samed on Twitter: @sameolukoya

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Debt Market: Dangote Cement Raises N250 Billion in H1, 2020

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Prime Real Estate Development At Eko Atlantic City

Dangote Cement Raises N250 Billion From Debt Market in H1 2020

Dangote Cement raised a total sum of N250 billion from the nation’s debt market in the first half of the year, according to the FMDQ Securities Exchange Limited.

In the statement published on the FMDQ website, the N250 billion debt includes the N100 billion Series 1 Bond raised under Dangote Cement’s N300 billion Bond Programme and the N150 billion Commercial Paper (Series 13-16 Domestic CP Issuance Programme) offered earlier in the year and now listed and quoted on FMDQ Securities.

Mr Michel Puchercos, the Chief Executive Officer, Dangote Cement, was quoted as saying, “This landmark transaction is the largest-ever bond issuance by a corporate issuer in Nigeria.

“It allows us to further broaden our sources of funding by accessing long-term debt at competitive costs from the capital market and builds further on the success of our domestic commercial paper programme.

“The success of these transactions, in the current challenging environment, illustrates investors’ continuous confidence in Dangote Cement’s strategy, strong cash generation and solid credit profile.”

Mr Kobby Bentsi-Enchill, the Executive Director and Head of Debt Capital Markets, Stanbic IBTC Capital Limited, said, “Stanbic IBTC Capital Limited has a long history of partnering with Dangote Cement Plc, and are delighted to have advised on this landmark corporate bond issuance, which reflects the depth and diversity of the Nigerian debt capital markets.”

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Conoil Profit After Tax Declines by 20 Percent in Q1, 2020

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Conoil

Conoil Profit Before Tax Depreciated by 20 Percent in Q1 2020

Conoil Plc, Nigeria’s indigenous oil marketing company, on Tuesday declared a 20 percent declined in both profit before tax and profit after tax for the quarter ended March 31, 2020.

In the unaudited financial results released on the Nigerian Stock Exchange (NSE), Conoil grew revenue by 7 percent from the N35,637 billion filed in the same quarter of 2019 to N38.143 in the first quarter of 2020.

Also, the company’s retained earnings expanded by 8 percent from N14.395 billion in the corresponding quarter of 2019 to N15.556 billion in Q1 2020.

Accordingly, Shareholders’ funds appreciated by 6 percent from N18.566 billion filed in the first quarter of 2019 to N19.728 billion in the same quarter of 2020.

However, profit before tax declined by 20 percent from N468,202 million in Q1 2020 to N382,915 million during the period under review.

The tax paid by the company during the period also declined by 20 percent from N153,025 million in Q1 2019 from N122,533 million in Q1 2020.

The company’s profit before tax declined by 20 percent from N325.178 million in achieved in the first quarter of the corresponding year to N260.382 million in Q1, 2020.

Similarly, earnings per share also declined by 20 percent from 47 kobo in Q1 2019 to 38 kobo in Q1 2020.

Total assets declined from N63.584 billion in Q1 of 2019 to N58.760 billion in Q1, 2020.

Conoil owned equity expanded from N19.467 billion achieved in the first quarter of 2019 to N19.728 billion in the first quarter of 2020.

Total Liabilities declined from N44.117 billion in Q1 2019 to N39.032 billion during the period under review.

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FMDQ Group Admits Dangote N100bn Bond, MTN N100bn Commercial Paper

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FMDQ Group Admits Dangote N100bn Bond, MTN N100bn Commercial Paper

The FMDQ Group has said the admission of both the N100 billion Dangote Cement bond and MTN Nigeria N100 billion commercial paper shows the potential of the Nigerian capital market to drive and stimulate economic growth.

The two most capitalised companies successfully raised N100 billion each from the capital market despite the COVID-19 pandemic and economic downturn.

Bode Onadele, the Chief Executive Officer, FMDQ Group, said: “The market has been yearning for corporate benchmarks for pricing and valuation of securities in the debt capital market, and coming at a time when the resilience of the Nigerian financial market is being tested by the impact of the COVID-19 pandemic is even more commendable.

The success of these issuances by the premier and largest business conglomerate in Africa, Dangote Industries, through its subsidiary, Dangote Cement Plc, and the debut made into the Nigerian debt capital market by leading telecommunications giant, MTN Nigeria Communications Plc, lay credence to the untapped and great potential of the Nigerian capital market to support sustainable development in Nigeria, and the confidence of investors, as well as the commitment of FMDQ Group to empower the markets to deliver prosperity to Nigeria and Nigerians.”

Onadele said the inclusion of the two securities on FMDQ validates the innovative and credible capital market solutions championed and efficiently delivered by FMDQ, over the last few years.

“Furthermore, in line with its mandate to facilitate global competitiveness of the Nigerian financial market, FMDQ, through these admissions, has provided the market and its diverse stakeholders – local and international – the much-needed corporate benchmark for the bond and commercial paper markets,” he said.

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