Paper Review - Monday, March 15, 2010
Bond market records N404.7b transactions
THE Over-The-Counter (OTC) bond market of the Nigerian Stock Exchange (NSE) last week, recorded a turnover of 312.1 million units worth N404.7 billion in 3,076 deals, contrary to 531.23 million units valued at N640.3 billion exchanged in 6,087 deals during the week ended Thursday, March 4, 2010. Though there was no transactions in the Federal Government Development Stocks, State Government Bonds and Industrial Loans/Preference Stocks sectors, the most active bond measured by turnover volume was the 6th Federal Government of Nigeria (FGN) Bond 2029 Series 3 with a traded volume of 67.05 million units valued at N101.2billion in 592 deals. This was followed by the 6th FGN Bond 2019 Series 4 with a traded volume of 45.0 million units valued at N48.7billion in 381 deals. Twenty of the available thirty-eight FGN Bonds were traded last week, compared to twenty-two in the preceding week. Also, a turnover of 2.2 billion shares worth N16.95 billion in 33,955 deals was recorded last week, in contrast to a total of 1.74 billion shares valued at N14.5 billion exchanged in the previous week in 34,014 deals.
http://www.ngrguardiannews.com
FG screens out 54 brokers, eight insurers in 2010 group life
Federal government group life insurance account flagged on March 1, 2010 is generating ripples among insurance operators in the country. The latest in the out cry against the process that led to the selection of insurance companies and brokers for the 2010 account are 54 brokers and eight underwriters which felt schemed out of the selection process. Of the 600 insurance brokers in the country, only 110 were qualified to apply out of which 56 were selected. 17 insurance companies also scaled through out of the 25 that indicated interest while 54 insurance brokers and eight insurance companies were screened out on the basis of not meeting one requirement or the other.Some of the criteria set by the federal government for insurance companies include submission of a three year audited account with a minimum financial base of N 2 billion; 2008 National Insurance Commission (NAICOM)’s approved account; profile of top management and current tax clearance certificate. In the case of insurance brokers they were required to summit companies’ profile; account statement and branch operations profile.
http://www.proshareng.com/news/singlenews.php?id=9748
Naira weakens at forex trading, interbank rates up to 2.16 per cent
The naira continued its depreciation at the forex market on Friday, as the nation's currency fell against both the British pound and euro at the Central Bank of Nigeria's (CBN) official market. Specifically, the naira fell from N201.32 to N201.73 against the Euro and also from N220.70 to N222.17 against the British pounds. Last week Thursday, the naira shed five kobo from Wednesday's trading, appreciating to its second lowest point against the greenback this year, from N148.25 to N148.31, but fell at the interbank market following a slump in demand for the greenback from banks. On Friday, interbank rates rose to 2.16 per cent on average from a record low of 1.28 per cent last week after state Nigeria National Petroleum Corporation (NNPC), withdrew N90 billion ($607.08 million), from the system, traders said on Friday.
MTN's turnover in Nigeria, Ghana, others slides
SOUTH Africa-based MTN Group has said full-year profit fell after South Africa's rand advanced, reducing income from abroad when converted into the local currency. Net income declined by four per cent to 14.7 billion rand ($1.51 billion) for the year ended December 31, the Johannesburg-based company said in a statement, the rand rose 24 per cent against the dollar in 2009, hurting profit from MTN's operations in 21 countries, including Nigeria, Ghana, Ivory Coast, Afghanistan and Iran. South African customer numbers fell 6.4 per cent to 16.1 million, the first time subscribers in MTN's home market have dropped. Subscriptions were hurt by a new law requiring customers to supply personal details to mobile-phone companies. The performance in South Africa, according to Bloomberg, after the company forecast zero net additional customers for the year, was "weaker than expected," said Pallavi Ambekar, an analyst with Cape Town- based fund manager Coronation Asset Management, which holds MTN shares. While the currency fluctuations and "regulatory headwinds" may hurt in the short term, MTN is "really in a very strong position" for future growth, she said. MTN fell 2.1 per cent to 115.50 rand in Johannesburg. The stock has advanced 26 per cent in the past 12 months, giving the company a market value of 212.6 billion rand.
http://www.ngrguardiannews.com/business
2011: The Race Begins
With the Independent National Electoral Commission (INEC) set to unveil the programme for the 2011 general election tomorrow, political activities – both subtle and open – have been revved up, with key actors embarking on consultations across the country in preparation for the presidential poll. The emerging calculation is that no matter what happens, President Umaru Musa Yar’Adua cannot seek a second term because of his health. The best he can do if he recovers, according to the permutations, is to work with his deputy, Dr. Goodluck Jonathan, and bring his presidency to a proper closure by May 2011. “Yar’Adua cannot win any election again, even if he comes back tomorrow riding on a high horse,” a former member of the National Assembly told THISDAY last night. THISDAY has identified nine emerging candidates, some of whom have already declared their interests in the race. Former military president, Gen. Ibrahim Babangida, is said to be highly interested in the race but, as a measured risk-taker, may not throw his hat in the ring except he is very sure of a political consensus to back him. “Babangida is deliberately being ambivalent – he would neither deny nor confirm his ambition,” a senior official of the Peoples Democratic Party (PDP) said. “He wants Northern leaders to come out and endorse him, but the message to him is simple: come out if you want to run. The time for reluctant candidates is over.”
http://www.thisdayonline.com/nview.php?id=168631
Sack Looms In PHCN As FG Votes N17b For Pension
Sack looms in the Power Holding Company of Nigeria (PHCN), with Minister of Power, Lanre Babalola, disclosing at the weekend plans to again reform the power sector by weeding out staff in the non-core units of the organisation. The reform was suspended because of the recommendation of a committee led by Rilwanu Lukman in 2007. Babalola said at the weekend that the recommendation was ill-advised, although he was a member of the committee. “I was a member of the committee but I was an opposing voice to the suspension. So, from 2007 to 2010 that the reform has been suspended, what has been our achievement?” he asked. He calculated that restructuring in the PHCN would cost about N400 billion to offload liability, and another N17 billion is needed for pension. “Almost all the companies that have enjoyed various grants from the government will share in this liability.” He added that the Chief Executive Officers (CEO) of the 12 distribution zones of the PHCN countrywide will sign a performance contract from the beginning of next quarter. The reform is intended to create jobs for graduates in the core departments of the PHCN. “A committee has been set up on this and we have been talking to the Ministry of Finance on the matter. “The people that have consistently opposed reforms do not like Nigerians. We are not going to be hindered by the labour unions. “We need these reforms to have light and anybody that stands in the way of this reforms stands in the way of light.” Nigeria needs $5 billion annually for power to meet its goal of vision 2020, and investors could only come into the country if the sector is reformed, Babalola argued.
http://www.independentngonline.com/DailyIndependent/Article.aspx?id=10300
Jos: Panic in Lagos, Ogun
There was panic in Lagos and Ogun yesterday, following the reported influx of armed Hausa-Fulani herdsmen into the states. But the police doused the tension, assuring residents that all was well. Many residents received text messages on their mobile telephones that the herdsmen came into the states from the North. Some of the messages claimed that the herdsmen came from Jos, Plateau State, where hundreds of children and women were killed in Dogo Nahawa last Sunday. The messages asked residents to be "alert" and beware of "strange faces". The Lagos and Ogun Police commands said there was no truth in such claims. At Mowe, Kara and Ibafo on the outskirts of Lagos yesterday, the herdsmen were seen trying to settle down. They were arranging their household items in makeshift homes. They rebuffed attempts in speak with them. The Lagos Command described the text messages alleging the arrival of trailer loads of strange elements with dangerous mission as false. A statement by Commissioner of Police Marvel Akpoyibo said investigation revealed that there was no truth in the claims.
http://thenationonlineng.net/web2/articles/39700/1/Jos-Panic-in-Lagos-Ogun-/Page1.html
BGL is not responsible for the content of external internet sites