News & Events
Publications & Notices
INTER-AGENCY COMMITTEE ON ILLEGAL FUND MANAGERS/'WONDERS BANKS' - A CBN Publication
Pursuant to the earlier advertorial by the above committee requesting depositor/investors with 'wonder banks' to lodge their complaints/claims at the offices of the Corporate Affairs Commission (CAC) nationwide, the Public is hereby further notified that the referred advertorial does not in any way confer liability on any of the regulatory agencies making up the inter-agency committee(CBN, SEC, CAC, EFCC, NDIC, and the Nigeria policy) to repay or reimburse complainants/clamants the sum of money theydeposited/invested with the 'wonder banks' or any interest thereon.

The main purpose of the referred advertorial was to enble the inter-agency committee collate the liabilities of each of the wonder banks to facilitate any arrangement that maybe put in place for these wonder banks to repay the monies deposited/invested with them.
INVESTORS ACCUSES BANKS OF INHIBITING MARKET RECOVERY
As the Nigerian capital market continues to wallow in the troubled waters of prolonged loss of value, investors and operators are railing accusations against the banking sector for their die-hard posture on recovering margin loans, an instrument that played a crucial role during the market boom period. Operators narrate their tale of woes in the hands of the banks who, they say, are the major cause of illiquidity in the stock market. According to them, the banks do not honour cheques they issue to their clients for selling their stocks if the stock broking firm owes the bank through the margin facility. Also, as clients make payments into their accounts for the purpose of share purchases, the banks divert it to the loan account to reduce the debt portfolio, thereby leaving the brokers trapped, not being able to meet their obligations to their clients. This scenario, brokers regret, has resulted in lowering further market activities as there is no fund at their disposal to buy the stocks that are now peanuts. Market watchers wonder why with all the good results coming from the banks, they are so much in a hurry to recover loans which were used to promote their stocks value when market was bullish
UACN OUTLINES EARNING FORECAST AS NSE LIFT SUSPENSION ON 19 FIRMS
Nigeria’ premier conglomerate, UANC Nigeria plc last week announced projections for the first quarter ending March 31, 2009. The company forecasts a turnover of N13.714 billion and profit after tax and exceptional items of N1.22 billion. Also, the company has fully consolidated the accounts of its subsidiary UACN Property Development Company (UPDC) plc in line with new statement of accounting standard on consolidation and separate financial statements (SAS 27). During the period under review, the NSE lifted suspension on a total of 19 stocks that had been placed on technical system for varied reasons. Some of the stocks were placed on suspension last year because they were gearing up to raise additional funds from the market. However, the prolonged meltdown had barred most of them from proceeding with the plan, fearing the public offering may not be successful. The stocks as announce d by the NSE include Staco Insurance, Equity Assurance, Royal Exchange, Oasis Insurance and Linkage Assurance, all in the insurance sub-sector. Others are Crusader Nigeria and Deap Capital Management and Trust of the other financial institutions sub-sector. Also, Wema Bank, and Eco Transnational Incorporated and UTC Nigeria; Eterna Oil and Gas, Ikeja Hotels, Tripple Gee and Company and Longman Nigeria. Others are First Aluminum Nigeria, Tran-Nationwide Express, Nigeria-German Chemicals, C and I leasing and DN Meyer. Meanwhile, the OTC bond market last week recorded a turnover volume of 322.1 million units worth N320.7 billion in 1,663 deals as against 164.8 million units valued at N168.3 billion exchanged in 1131 deaL
GLOBAL ECONOMIC CRISIS: IMPACT, CHALLENGES IN NIGERIA
In what appears to be a consequence of the global financial crisis, expectations are high that this year, highly developed economies will post negative growth rates, while emerging market economies are likely to register sharp slowdown; even as other developing economies are expected to decelerate. Nigeria, as a developing economy, is not left out of this projected deceleration in economic growth rate.Policymakers are beginning to accept the impact of the crisis on the Nigerian economy, which aligns with experts’ projections and earlier warnings on the need for a policy shift that will shield the economy from the earlier anticipated impact. According to Bismark Riwane of Financial Derivatives Company Limited, “In previous oil booms, deficits persisted, debt stock climbed and reserves fell, but infrastructure was built. In this boom, fiscal responsibility, debt stock and reduced reserves increased but no infrastructure.” JP Morgan estimates that at a price of $43 per barrel, Gross Domestic Product (GDP) growth could contract to 4.4 percent and a current account surplus of 9.4 percent to a deficit of 8 percent of GDP. For the Nigerian economy, Riwane is of the view that oil price and production remain critical in the new dispensation. “Oil production potential looks good but the Organisation of Petroleum Exporting Countries’ (OPEC) quota, militancy and low investment in exploration are a challenge. Agbami will peak at 250,000 barrels per day in August. Akpo field’s 180,000 barrel per day is due next month,” he said. Oil price movement determines the direction of the nation’s GDP growth. As an oil-dependent economy, the fall in oil price has continued to create policy fears, leading to the recent shift to non-oil sector revenue, as the oil sector’s output declined by 0.81 percent. In its reaction to the crisis recently, Central Bank of Nigeria (CBN) forecast that, “If the trend continues, Nigeria’s fiscal and external payments positions are likely to be further weakened. It is, however, expected that the domestic non-oil sector will rise to the challenge to offset to some extent the slack from the external sector. The optimism stems from the expected buoyant agricultural output, improvement in infrastructure as financial resources flow to the sector, and other development-enhancing activities of the government.” This crisis is preceded by a financial crisis of confidence arising from excessive defaults in the sub-prime mortgage credit market. JP Morgan had noted that the global economy is still sliding and is yet to bottom out. Also making the likely forecast, Olivier Blanchard, chief economist, International Monetary Fund (IMF), says that the global economy will likely slow to a virtual standstill this year, although economic watchers foresee a recovery by the end of 2009, if the right policy actions are taken. Contrary policies would make feasible the IMF’s projection, which cuts global growth forecast for 2009 to 0.5 percent, the weakest expansion since World War II, from a 2.2-percent projection. With persistent global panic, unemployment has been on the rise, shortage of liquidity and acute scarcity of credit have remained visible in the financial institutions, even as stock market developments have been marked by high fluctuations and corporations have continued to post financial losses.
BUSINESS EXECUTIVES SAYS ONLY RIGHT POLICIES WILL SEE NATION THROUGH MELTDOWN
Top chief executive officers and other business chieftains who gathered at the monthly breakfast meeting of the Lagos Business School yesterday were of the opinion that only the right policies implemented in a well coordinated manner by agencies of government will see Nigeria through what may yet be its most severe economic downturn since independence. Bismarck Rewane, economist and analyst who presented the lead paper spoke of the likelihood of a worrying shift in income distribution in Nigeria with the wealth in the hands of the nation’s top 10 percent rising to 35.2 per cent in 2009 from 31.3 per cent in 1998 and a shrinking middle class, which will see its share of the wealth dropping from 47.7 per cent 10 years ago to 44.8 per cent in 2009. He said the capital market which moved from a correction in early 2008 to a bearish market months later, has seen market capitalisation lose more than N7.3 trillion since January last year. The picture was made even more dramatic by Ike Chioke of Afrinvest, who observed that from a daily trade value of more than N15 billion a year ago, it fell to only N1.5 billion today, and with fees, commission and other income falling in the same period from N150 million daily to less than 10 percent of that today. The features of today’s market include the failure of policy responses to bring about any market recovery, average price to book ratio worsening to 3.9 and book stock averaging 1.4, failure in attempts to inject liquidity to the system and a huge debt service on margin loans now estimated at approximately N25 billion monthly. The CEOs were advised not to expect any recovery before quarter three of 2009 and that in any case, some stocks will remain moribund for many years to come and may never recover. There was meanwhile, consensus that Nigeria will recover from the economic meltdown but many CEOs who maintain that the economy will never by same the again. Author of this article: Anonymous Show Other Articles Of This Author From Europe, US jobless Nigerians head home (16 February 2009) Interbank rates rise on big cash outflows (16 February 2009) Reps list would-be gains of Brass LNG, salute h... (16 February 2009) Warri Refinery decries slow rate of evacuation ... (16 February 2009) SMEDAN to market NASENI technology ! (16 February 2009)
 
  MAJOR INDICATORS
Parameter Current Previous Change
Vol. Traded 436m 551m -20.81%
No of Deals 8,707 8,346 4.33%
Total Value N2.84b N2.74b 3.69%
 
  TOP GAINERS
Security Open Gain Close

 ASHAKACEM

 30.19  0.79  30.98

 PRESTIGE

 7.91  0.39  8.30

 WAPCO

 36.60  0.30  36.90
  TOP LOOSERS
Security Open Lose Close

 GUINNESS

 115.38  -1.15  114.23

 NB

 43.46  -0.43  43.03

 UBN

 41.58  -0.41  41.17
 
 
Fidelity Finance Ltd © 2008. All rights reserved 
Terms of Use | Site Credit