Week of July 18th – 22nd:

Week of July 25th – 29th:

Week of August 1st – 5th:

· The NSE All-Share Index went up by 79 basis points, ending the week on a positive note despite the downward movement recorded in the index today.

· The banking sub-sector traded mostly sideways this week, however, Access Bank led the gainers’ list by 5.0%. Other gainers include Ecobank, GTBank, Sterling Bank and Afribank with gains between 2.7% and 3.3%. Skye Bank, Zenith Bank and UBA also recorded gains between 0.9% and 1.4%. On the flip side, the rescued banks topped the losers’ list in the sector. Unity Bank, Wema Bank, Union Bank and FinBank shed between 5.0% and 9.0%, largely due to profit taking activities by participants.

· The building materials sector experienced low trading activities throughout the week. It however picked up slightly on the last trading day. Ashaka Cement recorded an 8.8% uptick, followed closely by Dangote Cement with 2.0%. Lafarge Wapco also recorded a 1.2% gain. CCNN was however the lone loser in the sector, shedding 3.2% to close the week.

· All the three stocks that traded in the breweries sector recorded varied gains this week; Guinness, NB and International Breweries gathered gains in excess of 4.0%.

And here are the charts for the week’s performance:

And here are the results:

And here are the reports from the stockbrokers:
NSE Weekly Report - Afrinvest - Dec 3rd 2010 (156).

NSE Weekly Report - Afrinvest - Dec 3rd 2010 - Weekly Update (153).

NSE Weekly Report - FSDH - Dec 3rd 2010 (203).

NSE Weekly Report - IBTC - Dec 3rd 2010 (183).

+ Most of the stocks of the rescued banks were bullish during today’s trading session, as participants continued to review their prices upward until they peaked at the maximum prices for the day. Oceanic Bank bagged maximum points, while other rescued banks gathered points in excess of 4.0% apiece. Zenith Bank and First Bank managed to record marginal points, while some stocks in the sector failed to delight participants; subsequently the likes of GTBank and UBA shed 1.1% and 1.3% respectively.

+ In the food and beverages sector, Dangote Sugar, Nascon, Nestle and Dangote Flour recorded gains ranging from 0.4% to 2.1%. Other stocks in the sector traded sideways.

+ The building and materials sector ended the week on a quiet note as participants were unwilling to review their prices upward. Ashaka Cement, despite the lull in the sector, recorded a 1.3% gain. Other stocks that traded in the sector remained unchanged.

Find below, a summary of the activities for the week ended today:

+ There was a lull in market activity this week, as the NSE All-Share Index shed 140bps cumulatively.

+ Profit taking shaved off varied points from the rescued banks’ stocks; Finbank, Intercontinental Bank, Wema Bank and Oceanic Bank all shed between 10.5% to 14.0%. However, the rescued bank stocks began rallying today and traded at the highest end of the market while closing with robust bids. GTBank and UBA also shed 2.8% and 6.4% respectively. On the flip side, Skye Bank, Ecobank, Spring Bank, Afribank and Fidelity Bank all gained points between 1.6% and 5.3%. No gains were recorded by the top tier banks this week.

+ Most stocks in the building materials sector traded sideways; however Lafarge Wapco gained 1.3%, while Ashaka Cement recorded a marginal loss.

+ In the breweries sector, all three traded stocks lost varied points; as institutional sales suppressed the share prices of NB, Guinness and International Breweries with losses of 1.2%, 9.6% and 13.6% respectively.

Basic Stats:

Results:

Losers and Gainers:

And here are the reports from the stockbroakers:

NSE Weekly Report - Afrinvest - Nov 26th 2010 (92).

NSE Weekly Report - FSDH - Nov 26th 2010 (98).

NSE Weekly Report - IBTC - Nov 26th 2010 (104).

I encourage you to take time to read of these reports. From the report on the banking sector, they broke down the banks into the following tiers:

The September 2010 Monthly Economic Note provides very valuable information on the major economic news so far in the month of September. And the 2010 Economic Review is one of the most detailed analysis of the Nigerian economy that I have come across this year.

Happy Reading!

Vetiva – Banking Update – The Next Chapter

Vetiva – Economic And Financial Review – 2010 Review and Outlook

Vetiva – Monthly Economic Note – September 2010

Stats for Week Ended September 24th:

Source: IBTC

Stats for Week Ended September 17th:

Source: IBTC

Courtesy of IBTC Asset Management, Lead Capital, FSDH Securities, here are the reports for the last 3 weeks:

Week Ended September 10th:

NSE Report - FSDH - Sept 10th 2010 (215).

Week Ended September 17th:

IBTC - NSE Report - Septermber 17th 2010 (105).

NSE Report - FSDH - Sept 17th 2010 (152).

Week Ended September 24th:

IBTC - NSE Report - Septermber 24th 2010 (118).

NSE Report - FSDH - Sept 24th 2010 (166).

NSE Report - Lead Capital - Sept 24th 2010 (143)

A turnover of 1.92 billion shares worth N13.77 billion in 51,454 deals was recorded this week, in contrast to a total of 3 billion shares valued at N26.9 billion exchanged last week in 57,553 deals.

There were no transactions in the Federal Government Development Stocks, State Government Bonds and Industrial Loans/Preference Stocks sectors.

The Banking subsector was the most active during the week (measured by turnover volume), with 919.42 million shares worth N9.67 billion exchanged by investors in 29,375 deals. Volume in the Banking subsector was largely driven by activity in the shares of First Bank of Nigeria Plc, Access Bank Plc, Skye Bank Plc, United Bank for Africa Plc, Bank PHB Plc and First City Monument Bank Plc. Trading in the shares of the six banks accounted for 462.13 million shares, representing 50.3% of the subsector’s turnover.

The Insurance subsector, boosted by activity in the shares of Goldlink Insurance Plc and Lasaco Assurance Plc, followed on the week’s activity chart with a turnover of 553.2 million shares valued at N528.8 million in 6,446 deals.

Last week, the Banking subsector led on the activity chart and was followed by the Insurance subsector.

Price Movement
The All-Share Index dropped by 1.3% to close on Friday at 28,713.67. The market capitalization of the 193 First -Tier equities closed higher at N6.55 trillion. Also, The NSE-30 Index dropped by 2.44% to close at 936.31.

All the four sectoral indices depreciated – The NSE Food/Beverages Index dropped by 14.02% to close at 522.38. The NSE Banking Index dropped by 0.002% to close at 516.4 8, The NSE Insurance Index dropped by 0.77% to close at 398.34 and The NSE Oil/Gas Index dropped by 2.05% to close at 374.25.

Fifty (50) stocks appreciated in price during the week, lower than the fifty – six (56) in the preceding week. Mobil Oil Nigeria Plc led on the gainers’ table with a gain of N5.37 to close at N112.87 per share while Benue Cement Company Plc followed with N4.24 to close at N34.66 per share. Other price gainers’ in the Top 10 category include:
• Ecobank Transnational Inc. – N3.06
• Guinness Nigeria Plc – N3.02
• Nestle Nigeria Plc – N3.01
• Union Bank of Nigeria Plc – N2.93
• Intercontinental Bank Plc – N1.41
• Presco Plc – N1.35
• PZ Cussons Nigeria Plc – N0.90
• Northern Nig. Flour Mills Plc – N0.89

Seventy – Four (74) stocks depreciated in price during the week, higher than the seventy – one (71) in the preceding week. Oando Plc led on the price losers’ table, dropping by N7.83 to close at N82.17 per share while Flour Mills of Nigeria Plc followed with a loss of N5.12 to close at N29.00 per share. Other price losers in the Top 10 category include:
• Dangote Sugar Refinery Plc – N4.92
• Julius Berger Nigeria Plc – N4.15
• UACN Property Dev. Co. Plc – N3.14
• Total Nigeria Plc – N2.50
• Dangote Flour Mills Plc – N2.30
• Glaxo Smithkline Consumer Plc – N1.86
• The Okomu Oil Palm Plc – N1.46
• Nig. Bottling Co. Plc – N1.35

The price of BOC Gases Plc was adjusted for dividend of N0.26 per share as recommended by the Board of Directors.

New Listing
The 4,966,666,668 shares in favour of MTECH Communications Plc were admitted to the Daily Official List at a price of N2.50 per share on Tuesday, June 9, 2009 by way of Introduction. The Company was listed in the Information, Communication and Telecommunications subsector. By this action, the number of listed companies a nd securities increased to 208 and 296, respectively.

Company News
OANDO PLC: Audited result for the year ended 31st December 2008. The Board of Directors is recommending a dividend of N3.00 per share. The date of closure of register of members and payment would be advised later.

BENUE CEMENT COMPANY PLC: Audited result for the year ended 31st December 2008 shows Turnover of N16,45.71 million as against N5,473.44 million in 2007. Profit after tax stood at N4,144.3 million compared with N1,252.23 million in 2007. The Board of Directors is recommending a bonus of 1 for 4. The date of closure of register is July 6, 2009. Annual General Meeting is scheduled to hold on Thursday, July 23, 2009.

BENUE CEMENT COMPANY PLC: Unaudited result for the first quarter ended 31st March 2009 shows Turnover of N9,319.05 million, as against N1,041.1 million in the comparable period of 2008. Profit after tax stood at N5,349.64 million compared with N198.7 million in 2 008.

UTC NIGERIA PLC: Audited result for the year ended 31st December 2008. The Board of Directors is recommending a dividend of N0.03 per share. The date of closure of register of members is June 22, 2009 while payment date would be advised later. The 41st Annual General Meeting is scheduled to hold at Cinema Hall of the Ogun State Council for Arts and Culture (Cultural Centre), Abeokuta, Ogun State on Tuesday, July 7, 2009 by 11.00a.m.

ECOBANK NIGERIA PLC: Unaudited result for the first quarter ended 31st March 2009 shows Gross Earnings of N14,859.72 million, as against N11,355.4 million in the comparable period of 2008. Profit after tax stood at N1,837.7 million compared with N1,745.22 million in 2008. The Board of Directors explained that the Bank received the sum of N45billion from
Ecobank Transnational Incorporated (ETI) as deposit for shares towards the Bank’s proposed Right Issue later in the year.

STERLING BANK PLC: Unaudited result for t he half year ended 31st March 2009 shows Gross Earnings of N20,491.9 million, as against N15,712 million in the comparable period of 2008. Profit after tax stood at N2,431.31 million compared with N1,871.02 million in 2008.

Company Forecasts
NESTLE NIGERIA PLC: The Company forecasts Turnover of N16,500.0 million and profit after tax of N2,220.0 million during the third quarter ending September 30, 2009.

JOHN HOLT PLC: The Company forecasts Turnover of N8,457.0 million and profit after tax of N323.0 million during the fourth quarter ending September 30, 2009.

BENUE CEMENT COMPANY PLC: The Company forecasts Turnover of N16,542.9 million and profit after tax of N6,846.23 million during the third quarter ending September 30, 2009.

BENUE CEMENT COMPANY PLC: The Company forecasts Turnover of N16,695.72 million and profit after tax of N6,728.35million during the fourth quarter ending December 31, 2009.

AIRLINE SERVICES & LOGISTICS PLC : The Company forecasts Turnover of N1,277.24 million and profit after tax of N239.73 million during the third quarter ending September 30, 2009.

PRESTIGE ASSURANCE PLC: The Company forecasts Gross Premium of N2,575.0 million and profit after tax of N590.0 million during the third quarter ending September 30, 2009.

OASIS INSURANCE PLC: The Company forecasts Gross Premium of N297.0 million and profit after tax of N202.21 million during the third quarter ending September 30, 2009.

NEM INSURANCE PLC: The Company forecasts Gross Premium of N4,661.8 million and profit after tax of N952.5 million during the third quarter ending September 30, 2009.

Report On The OTC Market For FGN Bonds
A turnover of 233.6 million units worth N236,498.34 million in 1,258 deals was recorded this week, in contrast to a total of 368.5 million units valued at N376,493.2 million exchanged in 1,178 deals during the week ended Thursday, June 4, 2009. The most active bon d (measured by turnover volume) was the 4th FGN Bond 2013 Series 1 with a traded volume of 24.31 million units valued at N24,211.23 million in 131 deals. This was followed by the 4th FGN Bond 2017 Series 9 with a traded volume of 24.3 million units valued at N23,381.53 million in 149 deals. Twenty – Eight (28) of the available forty-Two (42) FGN Bonds were traded during the week, same as in the preceding week.

Nigeria’s Securities and Exchange Commission approved SW8 Investment Ltd. as the main investor in Wema Bank Plc, said Lanre Olori, a spokesman for the regulator.

SW8 will buy 2.7 billion shares in Wema for an undisclosed sum to provide liquidity for the lender, Olori said in a phone interview today from the capital, Abuja.

“There has been heavy transaction volumes on Wema, so it’s proper for us to put the records straight to avoid all kinds of speculations,” Olori said.

As many as 2.35 billion Wema shares changed hands in so- called crossed deals on the Nigeria Stock Exchange in Lagos at 2.85 naira each on April 17 as groups boosted their holdings in a bid to take control of the lender. The average day’s volume prior to that was around 100,000 shares.

In crossed deals, the stocks to be traded aren’t available to all potential buyers. The seller and the buyer come together beforehand to agree to effect the transaction at the best market price of the day. Yesterday, a further 300,156 shares were traded in crossed deals at 2.58 naira a share.

Wema Bank was originally formed by the O’dua Group, which represented the governments of western Nigeria. In the banking consolidation that took place in 2005, it was ruled that no state government could hold more than 10 percent in a bank, whereupon the Central Bank of Nigeria ordered the group to reduce its shareholding in Wema to 10 percent from 40 percent. The former management of the bank warehoused the shares, which are now being sold to the core investor.

Meristem’s stock picks are WAPCO, Oando, UACN, Total and GT Bank.

FSDH has a BUY rating on StanbiC IBTC.
Meristem has a HOLD rating on Flour Mills.
FSDH has a BUY rating on Guiness.

Happy reading!

[Download not found]
[Download not found]
[Download not found]
[Download not found]
[Download not found]
[Download not found]
[Download not found]
[Download not found]

Banks plan merger, acquisition – To beat global credit crunc

By Lanre Oyetade, Odidison Omankhanlen, Tunji Adeleye and Adeolu Adeyemi

Against the backdrop of mounting effects of the global economic crisis, particularly on the nation’s financial sector, banks in the country have begun to seek alliances with one another with a view for merger and acquisition. Investigations carried out by the Nigerian Tribune showed that banks had begun talking to one another with a view to combining businesses. In particular, a bank which recently broke away from merger plans is already holding discussions with another bank.

A source in the bank, who confirmed this development, said the deal was being carried out with utmost secrecy to give room for the success of the merger. It will be recalled that the immediate past Managing Director, First Bank Plc, Mr. Jacobs Ajekigbe, gave this indication recently at the valedictory lecture organised for him by the Chartered Institute of Bankers of Nigeria (CIBN) when he said a second round of consolidation in the industry through market-determined combinations and alliances was imperative, stressing that very few banks exerted so much control over the liquidity of the banking system.

He noted that in the light of current global economic crisis, business combinations was the most appropriate response to margin compression and optimisation of technology infrastructure. According to Dr. Mobolaji Aluko, US-based political scientist, three big Nigerian banks are tied up in this Fortis/ABN Amro/BNP Paribas tangle.

He pointed out that Royal Bank of Scotland, one of the Nigeria’s asset manager, was one of the UK’s largest banks that was given 37 billion pounds with government owning a majority share. The overwhelming majority of Nigeria’s asset managers have been having significant trouble managing themselves and have given Nigeria’s foreign reserves toxic exposures.

Dr. Aluko said that instead of foreign reserves being piled up in foreign banks, government ought to have used them strategically in developing critical infrastructure as many long-suffering Nigerians had called for. The political scientist said that the massive decline in Nigeria’s foreign reserves led to stoppage of the entries since October last year. The lack of further entries on the foreign reserves in Central Bank’s website has further heightened the belief that Nigeria has suffered a major loss in its reserves.

As of October last year, the nation lost had $1.5 billion in its foreign reserves, through the three big banks. The Central Bank of Nigeria’s Director of Corporate Affairs, Mr. Festus Odoko, had said at the time that the decline in the nation’s foreign reserves was as a result of the rise in the demand for foreign exchange.

According to him, the decline was not as a result of the global financial meltdown but the function of market situation in Nigeria. He added that when the inflow was higher than the outflow, the reserves would go up, but when the outflow was higher than the inflow, the reserves would drop. Mr. Odoko said the only way out for the nation was to expand the sources of foreign earnings instead of concentrating on the reserves built from the oil revenues. The official report from CBN shows that the foreign reserves rose to $67 billion by the middle of 2008, but dropped to $53 billion by December.

This represents a decline of $14 billion within three months. However, a top bank chief executive officer, when asked, refused to confirm the merger plans, saying it was not unusual for organisations to seek mergers or acquisitions. He said in the light of the current global financial crisis, every organisation was looking for a way out, stressing that such business combinations could not be ruled out at this time.

Commenting on this development, a financial analyst and Chief Operating Officer, Landmark Investments, Mr. Okechukwu Amadi, advised banks to step up such discussions if they were not doing so yet, stressing that only strong and healthy banks could withstand the present financial crisis.

“I hope it is not belated. They shouldn’t waste time about it. Banks that are not particularly healthy should seek for acquisition and let the big banks help out. The banks need strength to withstand the current crisis,” he said.

However, a financial analyst, Mr. Dotun Mayowa, opined that it was foolhardy for banks in the country to contemplate any merger at this time. According to him, it was difficult to ascertain the level of healthiness in each of the banks, stressing that most of the banks were highly indebted to the CBN.

“It is a clear case of misdirection for any bank to take on another at this present moment. It is difficult to ascertain the level of healthiness. Besides, this moment of uncertainty calls for caution. The truth is that some of these banks are surviving by the grace of the CBN,” he stated. – Tribune

The Nigerian stock mar ket in the financial year 2008 lost over N5 trillion between March and December 2008 as a result of the world financial crisis.
The Nigeria Stock Exchange (NSE) in its reaction at the beginning of the new year said the market would have been very vibrant throughout the year under review but for the global financial crisis.

Meanwhile, despite the financial meltdown that befell the NSE , greater volume of shares were traded in 2008 compared with the previous year. A cursory review of activity in 2008 shows that the market recorded total turnover volume of N193.14 billion shares valued at N2.4 trillion exchanged by investors in 3,535,528billion deals.

In the comparable period during 2007, total transactions were 128.5 billion shares valued at N1.92 trillion traded in 2,388,839 billion deals.
First Bank of Nigeria Plc was the most capitalized stock for the month of December, with a market capitalization of N524.85 billion, while Zenith Bank Plc was second with N368.4 billion and Nigerian Breweries Plc recorded N308.93 billion to occupy the third position. Oceanic Bank International Plc and Ecobank Transnational Incorporation occupied the fourth and fifth positions to complete the Top five.

While there was improvement in turnover volume, the reverse was the case with turnover value. A turnover of 9.7 billion shares worth N44.3 billion in 136,932 deals was recorded in December 2008, in contrast to a total of 8 billion shares valued at N66.83 billion exchanged during November 2008 in 188,544 deals.
Consequently, available statistics showed that in 2008 the Insurance subsector was the most active (measured by turnover volume) with traded volume of 4.5 billion shares valued at N3.85 billion exchanged in 12,815 deals while the Banking subsector was second with traded volume of 3.31 billion shares valued at N28.12 billion exchanged in 81,501 deals.

The Information Communication and Telecommunication subsector came third with transaction volume of 630.8 million shares valued at N1.52 billion traded in 2,690 deals.

The market value of the 301 listed securities closed at N9.563 trillion, down by 5.42% from N10.11 trillion recorded in the month of November. The 213 listed equities accounted for N7 trillion or 73.1% of total market capitalization down from 72.65% in November 2008.

Equities from the Banking subsector occupied the top two positions on the market capitalization table down from top four in the preceding month while only the top two stocks retained their preceding month’s positions.

The Nigerian Stock Exchange All-Share Index, which opened at 33,025.75 closed at 31,450.78. This shows a decline by 4.8 per cent during the month compared to a decline by 9.1 per cent in November. The market recorded 24 gainers and 96 losers during December 2008 while the prices of 93 equities remained constant. Last month, the market recorded 24 gainers and 94 losers.

Of the Top 10 companies in December, three of them namely Ecobank Nigeria Plc, Nestle Nigeria Plc and Access Bank Plc retained their November ranks. Five stocks namely Nigerian Breweries Plc, Intercontinental Bank Plc, PlatinumHabib Bank Plc, Stanbic IBTC Bank Plc and Guinness Nigeria Plc recorded increases in market capitalization.

1. NSE 30 index
2. NSE Banking 10 Index
3. NSE Insurance 10 Index
4. NSE Food/Beverage 10 Index
5. NSE OIL/Gas 5 Index

To be fair, this does not really matter. What people really care about now is how to strengthen the Naira and prevent further falls in prices on the NSE

1. Nigerian Breweries to pay another interim dividend: NIGERIAN Breweries Plc has declared another interim dividend of N14, 368,868,446, that is, N1.90 per ordinary share of 50 kobo each in the share capital of the company. This was made known recently, in a statement from the company signed on behalf of the Board of Directors, Mr. Uaboi G. Agbebaku, the company secretary/legal adviser.The dividend is payable on Tuesday, 6th January, 2009, out of the amount standing to the credit of the profit and loss account, to all shareholders registered in the books of the company at the close of business on Friday, 26th December, 2008.
   This will be the second time that the company will be paying interim dividend to its shareholders in the current financial year following the earlier interim dividend paid in October. The company had in October, 2008, paid an interim dividend of N7,562,562,340, that is, N1.00 per ordinary share of 50 kobo each in the share capital of the company.
2. UBA declares bonus of 1 for 4, share price adjusted: As a result of the cash dividend and bonus share declaration, and in accordance with the rules of the Nigerian Stock Exchange (NSE), the share price of United bank for Africa plc (UBA) share price was adjusted on Tuesday to reflect bonus share issue. Consequently, UBA share price opened at a new price of N11.56 on Tuesday from the closing price of N15.20 at the end of trading on Monday.
   The bank had declared a final cash dividend of N0.75 per share, and a bonus of one share for every four held. Payment will occur on January 8,2009.
   According to Victor Osadolor, group chief finance officer, UBA paid an interim cash dividend in June 2008. After taking into account the interim dividend and bonus share issue, this translates into an effective total dividend for the year of N1.37 per share.
   David Ellis, head, investors elations, noted that the bank’s stock remained one of the most actively traded stocks in the financial service sector. Estimated return on investment on the bank’s shares is in excess of 80 percent 2008, made up of 75 percent scrip issue and 8.8 percent yield on cash dividend.
3. Acen shareholders okay acquisition by Sovereign Trust: After several rebuffs by the shareholders of Acen Insurance plc on acquisition bids by insurance companies who made it through the recapitalisation deadline, an approval has finally been granted for its acquisition by Sovereign Trust Insurance plc.
   The acquisition would now progress based on a share exchange of one Sovereign Trust share for 85 shares in Acen Insurance. Some shareholders of Acen had express concern over the basis of the exchange, but were consoled by the fact that the position was better than an outright loss in investment. Their fears had been heightened by the fact that Acen Insurance had been de-listed from the Nigerian Stock Exchange (NSE).
   It would be recalled that the company was de-listed by the NSE about two months ago for falling short of certain listing requirements.
4. Afribank introduces Visa Credit Card: Afribank Nigeria Plc has introduced a Visa Credit Card into the global banking market.A statement on Thursday said the Afribank dual currency credit card was the first in Nigeria, which did not require customers to provide collateral.
   According to the bank, it is specifically designed to meet the varying needs of modern banking customers at home and abroad, and is available to both customers and non-customers of the bank.The statement said the bank had in the past two years taken giant strides to ensure that its fast growing customer base enjoyed world-class services in a bid to confirm its leadership in e-commerce.
   Afribank introduced the Visa Credit Card, an international credit card, issued in partnership with Visa Incorporation, as part of its ongoing aggressive transformation effort.
   It is a dual currency credit card, globally recognised as a card payment system for acquiring goods and services from merchant locations and obtaining cash from automated teller machines carrying the Visa logo.“With Afribank dual currency Visa credit card, the world opens up as holders can visit countries abroad without the burden of carrying cash, shop in stores abroad, on the Internet, by telephone or mail order,” the statement said.
5. SEC appoints Vetiva market maker: IN line with the decision of the Securities Exchange Commission (SEC) to stimulate activities on the floor the Nigerian capital market in the wake of the global economic slide, Vetiva Capital Management Limited has been appointed market makers.
   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. The need to evolve the market maker strategy was reached last August as part of the recovery measures to stem the persistent fall in the share prices at the stock market.
6. Regency Alliance pays N350 million claims: IN conformity with its quick claims settlement policy, Regency Alliance Insurance Plc paid about N350 million as claims to its customers between January and September 2008.
   In a press release by the company’s Group Head, Corporate Planning, Mr. Adeniyi Ojebisi, claims payments are now being made within 24 hours of receipt of discharge vouchers.
   This payment of claims without tears, he states, is aimed at providing succour for policyholders as fast as possible.
   Among those whose claims were paid include The Bank of Industry, Delta State Oil Producing Areas Development Commission, SevenUp Bottling Plc, UBA Plc, Nigerian National Petroleum Corporation and Wema Bank.They also include West African Seasoning Co. Limited, Nigeria Aviation Handling Company Plc, Olam Nigeria Limited, Alhaji Ganiyu Ogunwale, Mr. Alex Toju Amorghoye and Mr. Femi Williams.
7. Oasis Insurance gets new helmsman: IN restating its commitment towards greater efficiency and profitability, the Board of Directors of Oasis Insurance Plc has appointed Mr. Babatunde Olarinde Oshadiya as the new acting managing director of the company. Oshadiya took over from Mr. Segun Durojaiye, who until his resignation last week, directed the affairs of the company for eight years.
   Babatunde Oshadiya, a 1985 graduate of Insurance from the University of Lagos, is a tested professional with over two decades experience in insurance practice. He is an associate of both Chartered Insurance Institute of London (ACII) and Nigeria (ACIIN).
   Prior to his appointment, he had served as the executive director, Marketing of the company between August 2007 and October 2008 and was formerly the managing director of ACEN Insurance Plc.
   Oshadiya worked in various sector of the industry from broking, insurance supervision to marketing. He had before this appointment worked at Hapatomah Insurance Brokers, Jos, Insurance Department, Federal Ministry of Finance (now NAICOM), Metropolitan General Insurance, NEM Insurance Plc and ACEN Insurance Plc where he was the managing director.

Oceanic Named ‘Best Bank in Nigeria’
Oceanic Bank Interna-tional Plc has again won the keenly contested 2008 ‘Best Bank in Nigeria’.
According to a statement made available to THISDAY in Lagos yesterday, the award was from the EMEAfinance, the UK-based financial intelligence magazine covering Europe, Middle East and Africa.
The magazine named Oceanic Bank International Plc as emerging Best Bank in Nigeria 2008 among the hordes of banks nominated for the award at its maiden African Bank Awards Luncheon held in London last Monday.

Oceanic Bank, according to EMEAfinance, won the awards on account of “robust growth in its asset base, profitability, return on equity, and regional expansion, among others.” EMEAfinance is a leading financial intelligence magazine and a reputable information source for the financial services industry in Europe, Middle East and Africa.

The feat achieved by the bank, according to the statement, is coming on the heels of similar award of Bank of the Year won in 2006 and 2007 consecutively – a prize instituted by The Banker magazine, a subsidiary of the Financial Times of London. In the Banker Magazine’s top 1000 banks report for the current year 2008, Oceanic Bank also emerged the Best Bank in Nigeria , 5th in the Africa , and 310th in the world in terms of Tier 1 capital.

Fidson explains drop in profit after tax
Fidson Healthcare Plc, has explained the decline in its profit after tax, recorded in its financial results for the year ended June 30, 2008, attributing the decline to deffered taxes.In a letter addressed to the Nigerian Stock Exchange on Wednesday, the company stated that it had enjoyed pioneer status for a period of five years, which meant a tax holiday for that period, adding that concession lapsed in October 30, 2007.

According to the letter, signed by the Company Secretary/Finance Director, Mr. Olatunde Olanipekun, “The commencement of tax payment by the company resulted in an income tax charge of N188m and a deffered tax charge of N148m giving a total tax charge of N337m to our profit and loss account for the financial year ended June 2008.

The company’s results released by the NSE last Friday, showed that its turnover increased by N1.2bn or 36 per cent from N3.3bn recorded in 2007, to N4.5bn in 2008. Its profit before tax also rose by N21m or four per cent to N526m in 2008, up from N505m recorded the preceding year The results however, showed a remarkable drop in its profit after tax by N63 per cent from N505m in 2007 to N189m in 2008.
“The marked difference between the PAT for 2007, and 2008 is therefore due to the tax payment of N337m in 2008, as against zero tax charges in 2007,” the letter read.

While addressing journalists on Wednesday, Olanipekun said that the company felt the need to clarify the issue, so that investors in the company will not be misguided into thinking that the company did not perform well in the year under focus.

GSK introduces Nigeria’s first sports drink
Glaxo Smithkline Consumer (GSK) Plc has announced its plans to launch the country’s first sports drink in the market. The drink which is called Lucozade Sports is designed to aid and increase performance in sporting activities.

Honeywell projects 43 kobo dividend payout in 2011
HONEYWELL Flour Mills Plc has projected 43 kobo dividend payout in its 2011 financial year and has also concluded plans to reward investors with11 and 28 kobo dividends for 2009 and 2010 respectively.
The company, presently, is seeking to raise N18.65 billion, by offering to members of the Nigerian investing public by way of offer for sale of 1,252,941.177 ordinary shares and an offer for subscription of 941,176,471 ordinary shares of 50 kobo each at N8.50 per share respectively.

It said the projected dividend per share is based on 7,941,176,471 ordinary shares of 50 Kobo each, even as turnover is expected to increase from N44.001 billion in year 2009 to N80.461 billion in year 2011, indicating an increase of 83 per cent in the forecast period.

The Chairman, Oba Otudeko, in a letter to investors said profit after tax for the year ending March 31, 2009 would be N2.270 billion and is expected to increase to N8.616 billion in year 2011, showing a growth of 279.55 per cent, while profit before tax is expected to rise from N2.976 billion in 2009 to N10.876 billion in 2011, representing a rise of 265 per cent in the forecast period. He added that the estimated figures were made in the absence of unforeseen circumstances.

Longman plans multi-billion naira printing press
A top player in the nation’s book publishing industry, Longman Nigeria Plc, is proposing a multi-billion naira printing press in Nigeria to tackle piracy of its intellectual properties and save huge foreign exchange being expended yearly on printing abroad.

The Chairman of the company, Mr. Emmanuel Ijewere, disclosed this while receiving a delegation from Nigerian-German Business Group (NGBG) led by its President, Mr. Joe Femi-Dagunro and the German Consul-General, Dr. Ralf Teepe, recently in the company’s factory in Lagos. Ijewere, therefore, invited German businessmen to join the firm in realising its set objectives for the printing press.

Nigeria Records N177b Drop In Revenue
Declining world oil prices are taking their toll on the pocket of Nigeria, leading to a drop of N177.52 billion in accruals into the Federation Account last month. Oil sold below $43 per barrel (pb) at the weekend, and feelers from the Federation Accounts Allocation Committee (FAAC) meeting in Abuja said the Federal Government earned N353.34 billion from mineral and non-mineral sources in November, against N530.86 billion in the preceding month.

In spite of the drop in revenue, however, the three tiers of government shared increased revenues totaling N438.51 billion from the Federation Account for the month of November, above the N436.72 billion disbursed in October. Minister of State for Finance, Remi Babalola, told journalists at the end of the meeting that N106.73 billion was provided from the Domestic Excess Crude Savings Account to augment the amount shared.

“In 2009, the challenge we are going to have is what if the price of crude falls below the benchmark price of $45 per barrel. “Even at $45, we have a deficit. We have done our own scenario in terms of using oil production, different prices below $45 and we are still comfortable. “We need to be realistic, pragmatic and futuristic about our policy effectiveness. It would be very challenging, but we would whether the storm in 2009,” said Babalola, who chairs the monthly FAAC meeting.

Statutory allocation accounts for N296.86 billion of the revenue shared from the Federation Account, while Value Added Tax (VAT) and Domestic Excess Crude account for N34.92 billion and N106.73 billion. The three tiers of government had in October shared statutory allocation of N318.36 billion, VAT (N32.67 billion) and Domestic Excess Crude Account (N85.69 billion).

From the statutory allocation of N296.86 billion for the month of November, the Federal Government received N140.80 billion (about 52.68 per cent), a shortfall of N9.31 billion over N150.11 billion received in October; states (N71.41 billion); and councils (N55.06 billion). The 13 per cent oil derivation accounted for N29.59 billion, and was shared among nine oil producing states of Delta, Rivers, Bayelsa, Akwa Ibom, Edo, and Ondo.

States got the lion’s share of the VAT of N17.46 billion (about 50 per cent), an increase of N1.12 billion over the preceding month’s figure of N16.34 billion. From the VAT, the Federal Government received N5.24 billion (about 15 per cent) and councils N12.22 billion (about 35 per cent).