Investors lost N279.26 billion on the Nigerian Stock Exchange (NSE), yesterday, as the bears continued to strengthen their hold on activities in the capital market. Heavy losses were recorded on the share prices of majority of the listed companies, leading to a further plunge in the market indicators, the All-share index and market capitalisation, which dropped by 3.45 per cent each. Specifically, the index which opened at 36,703.98 points shed 1,265.39 basis points to close at 35,438.59 points while the capitalisation closed at N7.82 trillion from N8.10 trillion at which it opened. The agony of investors was occasioned by losses on the prices of listed stocks as only five stocks recorded share price gain. Chevron Nigeria Plc recorded the highest share price loss, dropping by N12.68 to close at N240.97 per share from its opening price of N253.65 per share; Guinness Nigeria Plc followed with a loss of N5.17 to close at N98.38 per share and Flour Mills Nigeria Plc dipped by N2.46 to close at N46.95 per share. Other share price losers include: Nigerian Breweries Plc- N2.05; Benue Cement Company Plc- N1.43; Lafarge Cement WAPCO Plc- N1.39; Zenith Bank Plc- N1.36; Ashaka Cement Plc- N1.30; First Bank of Nigeria Plc- N1.30; UAC Nigeria Plc- N1.10 among others. On the contrary, BOC Gases Plc recorded the highest share price gain, rising by N0.89 to close at N18.79 per share from N17.90 per share at which it opened, WAPIC Insurance Plc followed with a gain of N0.10 to close at N4.40 per share, FTN Cocoa Processors Plc garnered N0.08 to close at N1.88 per share. Stanbic IBTC Bank Plc recorded a share price appreciation of N0.02 to close at N10.00 per share and Nigerian Bag Manufacturing Company Plc (BAGCO) rose by N0.01 to close at N3.83 per share. Experts have attributed the decline to profiteering activities of speculators, wanting to take advantage of the brief rebound in the market in the last couple of days to make quick gain. This led to increase in the supply of stocks in the market, as a number of stocks are being put up for sale. Equity trading was not spared in the downturn, as a turnover of 322.18 million shares valued at N2.1 billion was recorded in 8,262 deals, dropping by 22.5 per cent from the previous day's turnover of 415.67 million shares valued at N2.75 billion in 10,935 deals. Banking stocks recorded the highest patronage, accounting for 54.4 per cent of the market turnover with 175.24 million shares valued at N1.44 billion in 4,683 deals. First City Monument Bank Plc emerged the most active in the sub-sector, trading 66.25 million shares valued at N413.4 million in 94 deals, followed by Spring Bank Plc with a turnover of 54.28 million shares valued at N303.41 million in 122 deals and Fidelity Bank Plc recorded 7.63 million shares valued at N41.36 million in 208 deals. The Insurance sub-sector followed on the sectorial analysis, accounting for 21.57 per cent of the market turnover with 69.48 million shares valued at N78.55 million in 1,115 deals.

The House of Representatives Committee on Capital Market has directed the Securities and Echange Commission (SEC) to as a matter of urgency lift the technical suspension slammed on African Petroleum (AP) Plc by the Nigeria Stock Exchange (NSE), for potential investors to know the share value of the company. The Committee's directive is contained in a letter addressed to the Director General of SEC, dated November 17, 2008 and signed by the Chairman of the Committee, Rep Aliyu A. Wadada(PDP Nassarawa). The NSE placed a technical suspension on AP from the trading floor, when the Company wanted to begin a Right of Issue which ended in September 2008. The company though obtained a two-week extension for its share price listing, the suspension is yet to be lifted by SEC. "The non- lifting of the suspension has given AP Plc undue advantage as her capacity to borrow money is dependent on its market capitalization", the letter stated. According to the Committee a "comparative analysis of two companies in the petroleum sub-sector of the NSE showed that Total Nigeria Plc lost about 23 percent at the height of the bearish run while AP Plc, due largely to the suspension, only lost 2.3 percent during the corresponding period." The Committee in the letter to SEC, adviced it to make available details on why the suspension of AP is yet to be lifted. "Please make available to the committee, all relevant information which is not known to us as to why the suspension is not yet lifted and in the event that there is none, please lift the suspension immediately to allow the true value of AP Plc to be known to Nigerian investors, especially now that Zenon Oil is working towards a merger with AP Plc", it stated. The Committee stated that the directive was prompted by petitions from investors who are complaining of being kept in the dark on the share value of AP plc. The Committee has also requested a detailed information on Zenon Petroleum and Gas limited in connection with the proposed merger between Zenon and AP Plc. In a letter dated November 13, 2008 and addressed to the DG SEC, the Committee had called for details on the Pre-merger ownership/share structure and composition of Zenon, minutes of meeting of its Board of Directors for the last five years. Other requirements were audited accounts of the company for the last five years and any other relevant information obtained from the company by the commission to justify its approval of the proposed merger.

The Benue Cement Company Plc, a subsidiary of Dangote Industries Limited, has announced its third quarter results for the period January 1 to September 30, 2008, posting a 118.81 per cent increase in turnover compared to the same period in 2007. Operating profit for the period was NGN4.7bn a significant increase of 175.05 per cent compared to the same period in 2007 as the company's new production capacity comes online. BCC is in the process of expanding production to three million tons a year and continues to enjoy regular fuel and power supply to the plant thereby allowing uninterrupted operations. Dangote Cement is investing heavily in developing local cement production capacity in Nigeria and the expansion of BCC is a key aspect of this process. In the first half of 2008, BCC commissioned the first of its two kiln lines as planned. The kiln has been producing at its expected capacity and this has impacted positively on the Q3 results. The second kiln was commissioned in September 2008 and production is being progressively increased. Speaking in Lagos, Dangote Cement CEO Tony Hadley said: "The expanded capacity we have invested in at BCC is now coming on stream and we are delighted that this is reflected in the strong Q3 results we are announcing. BCC is not yet operating at full production capacity, and we are ramping up the second kiln, which will take us up towards three million tons. We expect further increases in production to be reflected in our year end results and expect strong performance throughout 2009."

Nigerian Bag Manufacturing Company Plc (BAGCO) was adjudged the best company for 2007 financial year in the printing, publishing and packaging sector by the Nigerian Stock Exchange. The company received the accolade and award at a ceremony organised by the Nigerian Stock Exchange recently. BAGCO indeed pleasantly surprised everyone present to emerge the winner out of three nominees, since it became a public liability company in 2007 and was listed on the Stock Exchange in 2008. The award was received by the Executive Vice Chairman of BAGCO, Dr. (Chief) Emmanuel Ukpabi. BAGCO was incorporated in 1964 as a private limited liability company, as a subsidiary of Flour Mills of Nigeria Ltd., now Plc. It commenced operation in 1972 to meet the bagging requirements of its parent company and later extended its services to meet the commercial requirements of external customers from its two plants, one in Lagos and one in Kano, which are capable of producing over 25mn sacks per month. The company has grown into being the foremost provider of flexible woven polypropylene sacks and other packaging materials like multifilament yarn and webby in Nigeria. BAGCO recently diversified its operation with the production of top range flexible packaging materials such as laminates, inner liners, shrink-films and stretch films, amongst others. The current volumetric capacity is 3,000mt per year but with plans for short and long term expansion programme.

Afribank Nigeria Plc has been appointed the “Official Banker” of the 2008 Kano International Trade Fair. The bank according to a statement, was appointed after a keen contest among six banks. The bank said the theme of the Fair, “Enhancing Private Sector, Lead Economic Growth” aligned with the national aspirations and strategic objective of the bank, which is to promote the development of commerce. The bank noted that the sponsorship of the fair offered it another opportunity to promote the private and public sector partnership which it is noted for. "It believes that the sponsorship of the Fair enables Afribank to play active role in the facilitation of economic development of the Region and open up many sectors with huge potentials", the statement said. Afribank assured that it would bring its over 50 years experience to bear on the Kano International Trade Fair with quality financial services to both the organisers and participants. To compliment this, Afribank says it has also opened a full branch at the Trade Fair ground to offer complete banking services to individuals, corporate and government agencies. The says it believes in the Nigerian economy and the potentials of the people if given required support. Visitors and participants to the Fair will be able to deposit and withdraw money, open accounts at concessionary terms, secure draft, payment for taxes, and receive free financial advisory services at the fair ground. Afribank says it will also offer seamless on-line real-time services at the fair to enable customers from various branches to transact businesses with ease. The Bank’s full range of services present unique advantages to entrepreneurs, traders and businessmen to improve on their turnover, profit margins, improve their net worth and realise their personal banking dreams. "Afribank has continued to initiate strategies to enable it serve as agent of wealth creation, engine of growth and promoter of national economy. We have also nurtured up young entrepreneurs to grow through innovative products and services”, the Bank added.

In order to enhance the accounting reporting standards, guidelines and provisions that would enable international best practices and full compliance with the provisions of Nigerian regulators, Cornerstone Insurance Plc has made more extensive provisions for doubtful premium debtors and diminution in value of investments, a business rejuvenation programme aimed at repositioning the company. The chairman of the company, Mr Adedotun Sulaiman, recently assured that although the decision of the board to improve the company's accounting reporting standards resulted in significant provisions which impacted negatively on the bottom-line, shareholders would reap the benefits in the years ahead. He said with increased finance, human and managerial capital, Cornerstone Insurance was poised to be the leader in insurance services and returns to shareholders. According to him, the company aims to remain the leading insurance brand, and be the value-adding and convenient place for customers to transact a wide range of related financial services and a preferred place for employees to make their career and to generate industry-leading returns to shareholders. He explained that the company's transformational agenda was anchored on attracting and retaining the best people, creating the most conducive and supportive environment for them to work and using the best technology to deliver the best possible service. "We are confident that the progress we are making in refocusing our business on the needs of customers, quality of our management and personnel and our investment in technology will deliver higher earnings in the future," Sulaiman said. He allayed fears on possible negative spillovers from the global financial crisis assuring that the prospects for the Nigerian economy and the insurance industry are quite bright. According to him, Nigeria is blessed with rich and enormous potential for significant economic growth and with the sustenance of the progressive measures and policies being pursued by the present administration to achieve its seven point agenda, the general outlook is favourable for corporate growth. He added that the Nigerian insurance industry would progressively attain its rightful role as an enabler of economic and social progress with Cornerstone Insurance playing the leading roles in the industry. Meanwhile, the company's interim report and accounts for the third quarter ended September 30, 2008, gross premium income grew by 28 per cent, while net premium income increased by 27 per cent. The report indicated that gross premium income rose from NGN2.34bn in the third quarter of 2007 to NGN3.0bn in the third quarter of 2008. Net premium income increased from NGN2.02bn in 2007 to NGN2.57bn in 2008. The balance sheet also expanded to NGN9.4bn by third quarter 2008 compared with NGN8.65bn recorded in the comparable period of 2007. Net asset also improved from NGN6.32bn in 2007 to NGN6.97bn in 2008. Cornerstone's decision to make adequate provisions in line with the guidelines prior to the compliance audit by the end of year, the company's pre-tax profit dropped from NGN1.09bn in 2007 to NGN590.1mn in third quarter 2008. Profit after tax also dropped to NGN468.07mn in third quarter 2008 as against NGN840.72mn recorded in comparable period of 2007. Audited report and accounts of the company for the year ended December 31, 2007 showed that group pre-tax profit rose from NGN232mn in 2006 to NGN387mn in 2007. Profit after tax also rose from NGN129.5mn in 2006 to NGN324.96mn in 2007. Gross premium grew marginally from NGN2.74bn in 2006 to NGN2.78bn in 2007. Also, total assets grew from NGN6.2bn in 2006 to NGN8.98bn in 2007. Shareholders' funds stood at NGN6.6bn in 2007 as against NGN3.9bn in 2006.

THE decision by the board of Zenith Bank Plc to pay a dividend of N28.5 billion, the highest ever by any financial institution, is generating excitement amongst investors as they look forward to receiving another big reward from a stock that has never failed to deliver. The bank, which recently released its 2008 financial result, is paying a dividend of N1.70 per share, up from the N1.10 per share paid last year. Zenith has since its quotation in 2004 built a reputation with returns delivered to shareholders, which have set a standard in the industry. Since the quotation, shareholders have received a return of 322 per cent, including capital gains and dividend payout, making the bank one of the most generous judged by its dividend policy. Investors have received generous dividend payments totaling about N20 billion in just three years, with most expecting that their investment in the bank would deliver more dividend in the years ahead. They have good reason to be expectant given the recent record of the bank's dividend payout. The bank surpassed its dividend projections of N5.1 billion for 2006 by actually paying out N6.6 billion (or N1.10 per share), representing a 29.6 per cent increase, while it paid N9.2 billion (or 100 kobo) in 2007 instead of the N7.6 billion projected. On the strength of the recently released result, the bank is also delivering on its promise to further enhance shareholders value with a dividend payout of N28.5 billion, the highest ever by any bank in Nigeria. This amounts to N1.70 kobo per share as against N1.10 kobo per share last year. Given the details of the result, most market watchers believe the bank is well placed to deliver even better performance in the years to come. Already, the Zenith Bank's stock has received what amounts to a massive endorsement from investors, with renewed interest in the bank's stock producing over 10 per cent increase in price in just two days. The result, which reaffirmed Zenith Bank's leadership position in the banking industry, showed shareholders funds rising to N346.6 billion, a 198 per cent rise from N116.4 recorded in the previous year. In response to the result, the stock has received five per cent price mark-up on the first full day of trading, lifting the price per share from N25.85 to N27.14 amounting to a price gain of N1.29 per share. According to the bank, keeping all stakeholders satisfied has been a winning strategy for the bank since it was established in 1990. Recently, Zenith Bank was named 'Best Bank in Nigeria' for 2008 by Euromoney and last month it emerged the Best Bank in Africa, a recognition conferred on the bank by the African Banker magazine at an impressive awards ceremony in Washington DC. The bank had earlier in 2007 won two major awards, 'Bank of the Year' and 'Corporate Citizen of the Year' at the 2008 ThisDay Award for Excellence. This is in addition to the 'CEO of the Year,' award won by its Managing Director for his sterling achievement in banking. The bank equally won two awards, the Best Bank in ICT best Bank in Export Finance, at the Vanguard Bankers' Award held in April 2008. The bank was in November 2007 named the 'African Banker of the Year,' by the African Investor magazine. The same year, Zenith Bank was named 'Quoted Company of the Year' by the Nigerian Stock Exchange (NSE). In January 2007, Zenith was adjudged the most customer-focused bank in Nigeria from a survey conducted by foremost consulting firm, KPMG. The survey, which focused on corporate customers of banks, including companies in a variety of sectors, found that they were most satisfied with the services rendered by Zenith Bank. Zenith Bank's commitment to social responsibility is acknowledged at home and abroad. The bank was adjudged the most 'Corporate Socially Responsible Company' in Nigeria by ThisDay newspaper early in 2007 and later in the year as the 'Most Corporate Socially Responsible Bank in Africa' by the African Banker magazine.

As part of efforts to meet the challenges of the competitive banking industry, the management of Wema Bank Plc, yesterday announced plans to raise its capital base. This, according to the acting managing director of the bank, Mahmoud Lai Alabi, who spoke with reporters in Ogbomoso at the commissioning of the bank's new branch in the city, will enable the financial institution to be continuously relevant in the dynamic, increasing and competitive banking environment. Pointing out that Wema Bank is in a growth phase, Alabi disclosed that the organisation has commenced the review of its entire structure to make it relevant in the present dispensation. He said: "Wema Bank is now in a growth phase, in the sense that we are reviewing our entire structure. This is in terms of enhancing our human resources, in both the number and quality, raising our Information Technology (IT) platform and our capital base so that we can be relevant in the dynamic, increasing competitive banking environment. "We are adequately capitalised as we are but we want to shore up our capital base to further enhance our services." Giving assurance of quality service, Alabi said: "The bank would reach out to the traders, educational institutions, local governments with special products that are targeted at these categories of people. It is our intention not to sit down in our offices but to go to them and introduce the products already designed for them". "We shall continue to be a bank of the people both for the rich and the poor. We give them that assurance," he stated. According to him, the bank's "customers remain the reason for the bank's existence and one of our core objectives is to continue to provide quality and prompt customer services to support their efforts as they initiate new businesses and implement growth strategies. The acting chairman of the bank, Mr. Festus Ajani, in his address at the ceremony, said that "as an organization with a commercial orientation operating in a competitive environment, we are aware that the bank's success depends on the ability to provide excellent services to our customers". Ajani thanked Governor Adebayo Alao-Akala for providing assistance to the bank, adding that his support had constituted the motivation that had propelled the board, management and staff to greater achievements. While commissioning the new branch, the governor, who was represented by the Commissioner for Finance, Chief Bayo Bankole, said the move will further assist in boosting the state economic growth and reduce poverty. He, however, reminded the management of the bank of its corporate social responsibility to the people of the state. In his goodwill message, the Soun of Ogbomoso, Oba Jimoh Oyewumi, called on the management of the bank to ensure that it gave consideration to the indigenes of the town in the recruitment of staff, adding that this would further solidify the cordial relationship between the bank and the people.

It was a day of honour for the Managing-Director and Chief Executive of the Oceanic Bank International Plc, Dr. (Mrs.) Cecilia Ibru in Accra, Ghana, when she, along with other eminent African personalities, was honoured yesterday in Accra, Ghana, with the Kwame Nkruma African Leadership Award. Two other state governors, Chief Ikedi Ohakim of Imo State as well as Dr. Emmanuel Uduaghan of Delta State were also conferred with the leadership award held at the Koffi Annan Centre, Ghana, by the All African Students Union (AASU). The ceremony was part of activities marking the International Students Day. It was indeed a day of appreciation of efforts of the personalities whom the African students said towered above others, in the recognition of the place of students in the affairs of the society through deliberate actions geared towards youth emancipation. To show their appreciation to the Amazon of the Nigerian banking industry, some of the students were clad in shirts, with her photograph embossed at the back, singing her praises over the involvement of Oceanic Bank in the development of schools across the country. They pointed out that Ibru had lived selfless and exemplary life that youths across Africa could be proud of, and the governors had given youths chance to prove themselves by their appointment into key positions in Imo and Delta states and therefore the need to recognise these gestures through the award. Other dignatries at the occasion included, Nigerian Ambassador to Ghana, Senator Musiliu Obanikoro, Representative of Ghanaian President, John Kufor, Ovation publisher, Dele Momodu, Members of State Executive Council of Imo and Delta States as well as Speakers and leaders of the state House of Assemblies. General Secretary of the AASU, Mr. Oludare Ogunlana said the recognition given to the personalities was meant to spur others in their position to action, saying the students and the youths have suffered so long in the hands of undemocratic government across Africa, but are now happy that there are still others who still see the youths as leaders of tomorrow, and would do all within them to enhance the well-being of the youths. After going down the memory lane on how the association has fared over the years, Ogunlana commended the spirit of the award recipients for standing out and identifying with the youths and education in their respective country. In her speech themed "The State of African Union", which was delivered on her behalf by her representative, the Oceanic Bank Executive Director, Corporate Banking, Mr. Oti Ikomi canvassed the need for all in Africa to coordinate and intensify cooperation and efforts towards achieving better economic, political, and educational prospects for Africa, and Africans in the Diaspora

Law Union & Rock Insurance Plc is one of Nigeria's 100 largest companies, according to a recent study published by BusinessWorld, Nigeria's business weekly. In a survey published as a business compendium with the title BusinessWorld 100, the newspaper lists Law Union & Rock Insurance Plc as one of the nation's 100 largest companies. The ranking was by assets, revenue, profit, shareholders' funds, market value and employees. About 22 other insurance companies also made the list which is dominated by banks and oil marketing companies. There are 47 insurance companies licensed to operate in the Nigerian market. Less than half the number made the list of 100 largest companies in the country. The study, which covered the 2007 accounting year, puts Law Union & Rock's asset base at NGN5.15bn. The study surveyed 303 companies quoted on the Nigerian Stock Exchange. The listing of Law Union & Rock Insurance Plc as one of Nigeria's top 100 largest companies reflects the positive outcome that has attended efforts of the management of the company since 2004 to take it to a new level. Efforts to grow the company and make it a top flight player in African insurance has seen changes in its manpower profile, organic growth, service quality and delivery as well as information technology infrastructure. To improve its competitive edge and strengthen its market leadership Law Union recently upgraded its Information and Communication Technology (ICT) infrastructure. With the upgrade, all regional offices have been linked to the head office enterprise insurance application. Nigerian individuals and institutional investors own Law Union. The institutional investors include Skye Bank, which is the core investor, Consolidated Discounts Limited, and Swede Control Intertek. It has a working relationship with a consortium of international partners, such as the Royal Sun Alliance of United Kingdom. The company in its third quarter ended September 30, 2008 posted a strong financial performance. Its un-audited accounts for the period show a gross premium income of NGN3.0bn, an increase of 50 per cent over NGN2.0bn achieved in the corresponding period a year ago. The company grew its net premium income by 35.7 per cent to NGN2.09bn from NGN1.54bn, while pre-tax profit expanded by 98.1 per cent to NGN642.3mn in the period. Similarly, post-tax profit soared by 98 per cent to NGN513.8mn from NGN259.5 record a year earlier. Law Union's profit margin for the period under review rose to 21.4 per cent from 16.2 per cent posted in the corresponding period of 2007, an indication that the company is becoming more efficient and better at cost control. The strong lift in earnings and aggressive drive for efficiency boosted the company's retained earnings to NGN385.38mn compared to NGN194.60mn earned in the corresponding period a year ago. The worth of the company's total assets rose to NGN6.63bn, representing 18 per cent increase over NGN5.59bn in the corresponding period of 2007, an outcome both of the recent industry consolidation and the company's strategic turnaround programme started three years ago. Shareholders' funds increased by 15 per cent to NGN4.39 per cent from NGN3.82bn during the period.

Staco Insurance received the Insurance Company of the Year award from the third Ikeja City Award organised by Solkem Entertainment Incorporated. The award, which took place at Balmoral Event Centre, Kudirat Abiola Way, Ikeja on November 7, 2008, brought together different persons from different walks of life. Nominees for the insurance of the year category included Industrial and General Insurance (IGI), Goldlink Insurance, Investment and Allied Insurance, Intercontinental Wapic Insurance and AIICO General Insurance. After the evening event, Staco Insurance emerged as the winner of the category as the best insurance company of the year, 2008. Oceanic Bank on the other hand emerged as the most preferred bank of the year. It should also be noted that recently, the Managing Director of Staco Insurance Plc, Mr. Sakiru Oyefeso was given an outstanding achievement in Enterprise Award by the Kwame Nkrumah's Award organised by the West African International Magazine, which was held in Ghana on October 3rd, 2008. Fellow recipient of the award was Mr. Akinsola Akinfemiwa the MD/CEO of Skye Bank Plc, Senator Musiliu Obanikoro Nigerian High Commissioner to Ghana, Dr. Bartholomen Ebong GMD/CEO of Union Bank of Nigeria Plc and others. The award, which was to mark the 99th birthday of Kwame Nkrumah, has been a yearly event which people that have been contributing to the growth of the African Continent are recognised. Also of note is the merit award that Mr. Sakiru Oyefeso, the managing director of the company was given by Federal Radio Corporation of Nigeria (FRCN) for his participation during the Ramadan Lecture that was organised by the corporation during the Ramadan period. The award was conferred on him after the Ramadan fast at the FRCN complex.

In conformity with its quick claims settlement policy, Regency Alliance Insurance Plc paid about NGN200mn as claims to its customers between January and September 2008. In a press release by the company's Group Head, Corporate Affairs, Mr. Adeniyi Ojebisi, claims payments are now being made within 24 hours of receipt of discharge vouchers. This payment of claims without tears, he said, was aimed at providing succour for policyholders as fast as possible. Among those which claims were paid include Bank of Industry, Delta State Oil Producing Areas Development Commission, SevenUp Bottling Plc, UBA Plc, Nigerian National Petroleum Corporation and Wema Bank. Others are West Africa Seasoning Co Limited, Nigeria Aviation Handling Co Plc, Olam Nigeria Limited, Alhaji Ganiyu Ogunwale, Mr. Alex Toju Amorghoye and Mr. Femi Williams. Ojebisi added that the claims were made for losses arising from motor, fire and burglary, money-in-transit, marine and workmen compensation insurance policies. He assured the company's customers that the quick claim settlement policy would be maintained. According to him: "The era of delay is gone. I advise those who have claims to contact us on-line or report at our nearest branch." Ojebisi also disclosed that the company had introduced some services designed to add value to its clients. Such services, he said, included special training for drivers of clients who appoint us as their preferred insurer." He added that the company had introduced a specialised car-tracking device as part of its value-added services. According to the company's spokesman, the device whose control system is installed in either the client handset or computer has been proved to be effective in other countries. "They are now available for our customers on request." The tracking system, he said, was available in all the company's branches nationwide.

The activities of profit takers yesterday halted the positive run the stock market has been witnessing since November 6. After a long period of a bear run, the market stabilised on November 5 and began to recover on November 6. The recovery continued until yesterday when the Nigerian Stock Exchange (NSE) All-Share Index and market capitalisation closed lower. The index fell from 38,018.44 to close at 37,865.16, translating to 0.4 per cent depreciation. Similarly, the market capitalisation depreciated from N8.390 trillion to N8.356 trillion. Stockbrokers attributed the southward movement of the market to profit takers, who are selling to realise the capital gains some of the stocks had amassed in the past few days. Although Chevron Oil Nigeria Plc and Oando Plc continued to shed value to lead the price losers’ chart, Guinness Nigeria Plc, Nigerian Breweries Plc, First Bank of Nigeria Plc and Zenith Bank Plc that have been dominating the price gainers ended up in the bear territory yesterday. A total of 35 stocks lost value, while 44 appreciated. UAC of Nigeria Plc led the price gainers with N1.20 to close at N33.20 per share.

NIGERIAN Breweries Plc has emerged the winner of the prestigious yearly Nigerian Stock Exchange (NSE) President's Merit Award in the breweries sector category. The company won the award at the 31st edition of the award held in Lagos over the weekend. According to a statement from Nigerian Breweries signed by its Corporate Affairs Adviser, Mr. Yusuf Ageni, this is the 16th time that the company would win the award, having won it 15 previous times including last year. Ageni, who attributed the feat to Nigerian Breweries' current robust growth profile, which is reflected in its financials, assured shareholders of a brighter future. Nigerian Breweries had declared a total of N18.1billion as Profit Before Tax (PBT) for the half year ended 30th June, 2008. This represented a 43 per cent increase over the N12.7 billion, which it declared as PBT for the same period in 2007. The company's un-audited and provisional result for the half year also showed that it made a turnover of N68.1 billion, representing a 31 per cent increase over the N51.9 billion achieved for the corresponding period of 2007. The rise in turnover resulted in an increase in operating profit from N12.5 billion in the first half of 2007, to N17.7 billion for the corresponding period in 2008, representing an increase of 42 per cent. Due to this, the Profit After Tax (PAT), increased from N8.5 billion to N12.3 billion in the first half of 2008, showing an increase of 46 per cent. The company also declared an interim dividend of N7, 562,562,340, that is N1.00 per ordinary share of 50 kobo each in the share capital. This represented an increase of 82 per cent over the N4, 159,409,287, that is, 55 kobo per ordinary share of 50 kobo in the share capital, which the company paid as interim dividend in 2007.

Executive Director, Banking Operations of FirstBank of Nigeria Plc, Mr. John Aboh, has recommended Nirph Identification Solution for all microfinance banks in Nigeria. Aboh's recommendation was based on the essence of establishing microfinance banks in the country which lending is not on collateral security but knowledge of the individual borrowers and their businesses. This, he said, requires heavy reliance on the principle of Know Your Customer (KYC) through the use of various operational procedures to properly identify the customer. "Here lies the immense benefit of the Nirph Customer Identification Solution that is being launched in Nigeria," he said. Its use, according to Aboh, addresses the identification problems of the target customer base of microfinance institutions. "As we are aware, this segment of our population have limited access to official identification documents like international passports and drivers licences and so deployment of Nirph solution by these financial institutions would go a long way in effectively addressing identity problems in that segment of the market. Aboh said microfinance institutions require a change and a revolution in mode of identification of this nature to be able to tackle the vexing issue of identity fraud. He therefore recommended an industry-wide co-operative approach to address the common problem of identity that may likely face the industry as more and more people identify themselves with their activities. Aboh said this development has become imperative because a control failure in one microfinance bank can easily be exploited by fraudsters to perpetrate fraud that could pose a systemic threat to the health of microfinance institutions as a whole. He recognised the cardinal objectives of microfinance banks in the country, which is to inculcate banking habits among the low income group, access to credit for the poor, creation of self employment and reduction of poverty among others. "These objectives are geared towards economic empowerment of individuals willing to work and the acceleration of overall economic development in the country," he said. Dr. Obafemi Hamzat, Commissioner for Science and Technology, Lagos State, represented by Muyiwa Laleye, Director of Information Technology (IT), said the state has found Nirph solution as a "perfect fit" in what it sets out to achieve as a leading IT driven state in Nigeria.

The Jos Business Development office of First Bank Nigeria Plc has granted over N1bn agricultural loan facilities to its customers in Plateau State. The bank is also wooing many more farmers to take advantage of the facility. The bank’s Business Development Manager, Mr Sani Bala Tanko, disclosed these in Jos last week during a rally to further create awareness on the bank’s "Big splash promo”. Tanko said the bank was rewarding new and existing customers who increased their savings account deposits by NGN25,000 every month during the promo, with cars, laptops and other valuable items. Tanko, who said his bank was the first to introduce such innovation in the banking industry, said the aim of the promo was to promote the bank’s business activities and create awareness so as to get more deposits from customers to grow the Nigerian economy. He said the consolidation exercise in the banking industry had created a level playing ground, adding "we must come out with new initiatives and innovations to outsmart our competitors". He said: “You give us little, and we give you much”. The manager further hinted that First bank had the highest number of customers in Plateau State, especially with savings account. He stressing that the bank was also involved in corporate social responsibility. He urged the bank’s customers to avail themselves of the opportunity to participate in the promo, which will last till December.

Nigerian Breweries Plc has emerged the winner of the prestigious yearly Nigerian Stock Exchange (NSE) President's Merit Award in the breweries sector category. The company won the award at the 31st edition of the award held in Lagos over the weekend. According to a statement from Nigerian Breweries signed by its Corporate Affairs Adviser, Mr. Yusuf Ageni, this is the 16th time that the company would win the award, having won it 15 previous times including last year. Ageni, who attributed the feat to Nigerian Breweries' current robust growth profile, which is reflected in its financials, assured shareholders of a brighter future. Nigerian Breweries had declared a total of NGN18.1bn as Profit Before Tax (PBT) for the half year ended 30th June, 2008. This represented a 43 per cent increase over the NGN12.7bn, which it declared as PBT for the same period in 2007. The company's un-audited and provisional result for the half year also showed that it made a turnover of NGN68.1bn, representing a 31 per cent increase over the NGN51.9bn achieved for the corresponding period of 2007. The rise in turnover resulted in an increase in operating profit from NGN12.5bn in the first half of 2007, to NGN17.7bn for the corresponding period in 2008, representing an increase of 42 per cent. Due to this, the Profit After Tax (PAT), increased from NGN8.5bn to NGN12.3bn in the first half of 2008, showing an increase of 46 per cent. The company also declared an interim dividend of NGN7, 562,562,340, that is NGN1.00 per ordinary share of NGN0.50 each in the share capital. This represented an increase of 82 per cent over the NGN4, 159,409,287, that is, NGNO.55 per ordinary share of NGN0.50 in the share capital, which the company paid as interim dividend in 2007.

Trading at the stock opened on a positive note yesterday as the many stocks continue to recover past losses. The market began its upward trend penultimate Thursday, leading to a recovery of N904 billion in the Nigerian Stock Exchange (NSE) capitalisation last Friday. When trading opened yesterday, market indicators grew further. Equity turnover was on the upbeat as investors traded 499.189 million shares worth N6.077 billion in 11,444 deals, up from the 414.7 million shares worth N4.337 billion in 14,171 last Friday. The NSE All-Share Index rose from 37,876.06 to 38,018.44, while market capitalisation appreciated from N8.309 trillion to N8.390 trillion. Guinness Nigeria Plc waxed stronger with N5.20 price gain to close at N109.23, having led the price gainers last week with N22.50. Nigerian Bottling Company Plc closed as the second highest price gainer with N1.50. Flour Mills Nigeria Plc, Dangote Sugar Refinery Plc and United Bank for Africa Plc garnered N1, N0.94 and N0.92 respectively. Conversely, Nestle Nigeria Plc led the price losers with N10.70 to close at N203.46. Oando Plc trailed with a loss of N5.95, while Benue Cement Company Plc shed N1.67.

THE Chairman of the Council of the Nigerian Stock Exchange (NSE), Oba Otudeko, has revealed that the stock market depreciated by 40 per cent from January to October 2008, while market capitalisation, which stood at N13.95 trillion in January, dropped to N10.8 trillion by October 2008, which represents 18 per cent decline. The chairman stated this in his welcome address at the NSE 2007 financial year's president's merit award, held in Lagos, recently. He, however, expressed optimism that the market would rebound soon, based on objective market assessment in line with the cyclical pattern of stock markets worldwide. His words: "Notwithstanding these adverse developments, Nigeria's highly dynamic stock market remains a reliable avenue for creating and accumulating wealth. Indeed, the Nigerian capital market has contributed immensely to the gradual re-emergence of the middle class that was long extant in our beleaguered economy. "The Exchange will continue to take pro-active measure that will enhance the quality of the overall market. This year, 64 new issues worth N2.05 trillion were duly approved by the council for listing, while 19 dormant companies were delisted. The NSE will continue to enforce compliance of its rules on listed companies for quality and efficiency of the market," he assured. According to him, 17 quoted companies emerged winners of the NSE 2007 financial year's president's award, while First Bank of Nigeria Plc emerged the quoted company of the year. These companies were selected in their various categories from the 45 quoted companies earlier shortlisted by the Council of the Exchange, based on their adherence to the post-listing requirement of the stock market. They include First Bank Nigeria Plc and Guaranty Trust Bank Plc, under the Banking and Investment sub-sector, Prescr Nigeria Plc, under the Agro-Allied Sub-sector, Benue Cement Company Plc, under the construction sub-sector. Cutix Nigeria Plc emerged the winner from the Engineering sub-sector, while Neimeth Pharmaceutical Plc was chosen from the Health Care sub-sector. Other companies includes Vitafoam Nigeria Plc, under the industrial and chemical products sub-sector, Intercontinental Wapic Insurance Plc, under the insurance sub-sector, PZ Cussons Nigeria Plc, under the Conglomerates sub-sector, amongst others.

Some relief came the way of investors last week after eight months of losses, pains and anxiety following the persistent fall in share prices in the Nigerian stock market. The bear run had depressed the stock market by 41 per cent (or N5.2 trillion) from a peak of N12.6 trillion between March 5 and November 5, 2008. However, stability crept into the market on November 6. And at the close of trading last Friday, the market had regained N904 billion (or 17 per cent) of the lost value. The market capitalisation, which hit a record low of N7.405 trillion on November 5, appreciated to close at N8.309 trillion last Friday, following the recovery witnessed by the prices of many equities. Some market operators attribute the development to investors' response to the low prices of the equities. Managing Director of Mission Securities Limited, Mr. Ayo Oguntayo, said the rebound was expected considering the low prices of equities after the removal of the "circuit breaker" which had limited price depreciation to no more than 5 per cent in a day. "Immediately after the peg on downward pricing of equities was removed, some stocks bottomed out. And given the impressive results being posted by many of the companies, investors took advantage of the low prices. The impact of that renewed interest is what we saw in the market in the last one week," Oguntayo said. Managing Director of Crane Securities Limited, Mr. Mike Ezeh, said the market would have actually picked up earlier than now but for the liquidity squeeze experienced by investors. "When the 'circuit breaker' was removed, prices hit new lows and investors who have some liquidity are taking early position. The fundamentals of the companies remain strong and the future of the market is bright. More investors would come as their liquidity positions improve because the prices of the stocks are very low now," he said. For instance, First Bank of Nigeria Plc, which last Thursday emerged the quoted company of the year, had hit a price of N19.10 per share, down from a peak of N54.86 before the recovery began. The Minister of State for Finance, Mr. Remi Babalola, at the weekend said investors would have cause to smile again as the market regained its stability. Speaking at a workshop organised by the Capital Market Correspondents Association of Nigeria (CAMCAN) in Ijebu Ode, Ogun State, Babalola said stakeholders were still meeting to proffer lasting solutions to the stock market crisis. He said: "I want to reassure investors that our capital market is healthy and sound. The continued fall in stock prices will not be long. Investors need not panic, rather it is time to invest more. The fundamentals of the economy are strong. I am glad that the awareness of the NSE as an investment avenue has increased tremendously. The downturn in the market is a blessing in disguise and also a lesson on the reality of the operations of the market. "It is important to view the capital market as a form of long term investment rather than a speculative jackpot. My investment advice for Nigerians and other investors is to invest more on a long term basis and the best time to do so is now when we have the lowest prices we have seen in a long time. The future is bright and promising." The breweries and banking sub-sectors dominated the price recoveries last week with Guinness Nigeria Plc gaining N22.50 to close at N104.03. This was followed by Nigerian Breweries Plc with a gain of N9.13 to close at N45 per share. First Bank appreciated by N6.11 to close at N28.32, while Zenith Bank Plc and Dangote Sugar Refinery Plc garnered N5.85 and N4.05 to be at N29.50 and N18.85 respectively. A total of 60 stocks recorded price gains last week, while 40 stocks shed value. Chevron Oil Nigeria Plc led the price losers with N44.41 to close at N267 per share. Oando Plc trailed with a loss of N27.09 to close at N119.02 per share. Nigerian Enamelware Company Plc shed N6.18, just as Benue Cement Company Plc, Nigeria Company Plc and BOC Gases Plc depreciated by N5.56, N3.22 and N2.90 in that order. Meanwhile, the Securities and Exchange Commission (SEC) has begun the registration of market makers as part of efforts to stabilise the nation's stock market. Market makers are wholesale operators who ensure that there is liquidity in the stock market by either buying shares when there is a glut or selling shares when there is scarcity. Relevant Links West Africa Economy, Business and Finance Nigeria