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Stock Market Declines Further as 28 Firms Lose

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The nation’s stock market declined further on Tuesday as bearish sentiments persisted, making investors lose N4.8bn.

The market capitalisation of equities listed on the Nigerian Stock Exchange dropped from N10.954tn on Monday to N10.948tn on Tuesday while the year-to-date loss stood at -7.3 per cent.

On Tuesday, the stock market drew closer to a two-year low level of 25,780.02 basis points on April 21, 2017 and a one-year low level of 28,780.02bps as the All Share Index depreciated by 0.04 per cent to settle at 29,149.46 basis points on the back of sell-offs in Ecobank Transnational Incorporated, Dangote Cement Plc and Dangote Sugar Refinery Plc.

Activity level declined as volume and value traded fell by 17.7 per cent and 41.8 per cent to 374.026 million units and N3.057bn, respectively.

The top traded stocks by volume were Sterling Bank Plc (119.7 million units), Chams Plc (50.3 million units) and FBN Holdings Plc (44.6 million units) while the top traded stocks by value were Guaranty Trust Bank Plc (N788m), Zenith Bank Plc (N471.3m) and FBN Holdings Plc (N323.1m).

Performance across sectors was bearish as all indices closed on a negative note. The insurance index led losers, down by 1.8 per cent largely on the back of losses in NEM Insurance Plc.

The banking and oil and gas indices dipped by 0.5 per cent and 0.4 per cent, respectively, due to profit-taking in Zenith Bank, FBN Holdings and Oando Plc.

The consumer goods index fell by 0.2 per cent due to sell-offs in Nascon Allied Industries Plc and Dangote Sugar Refinery.

Major losses recorded in Dangote Cement dragged the industrial goods index down by 0.1 per cent.

Investor sentiment improved to 0.8x from the 0.4x recorded on Monday as 12 stocks advanced against 15 decliners.

The top five losers were NEM Insurance, Ecobank, Livestock Feeds Plc, Niger Insurance Plc and Nascon Allied Industries, whose respective share prices shed 9.87 per cent, 6.67 per cent, 5.66 per cent, 4.76 per cent and 4.75 per cent.

Analysts at Afrinvest Securities Limited said following the mild improvement in Tuesday’s trading session, relative to the prior session, they did not rule out the possibility of a positive performance in Wednesday’s trading session buoyed by the improving investor sentiment.

“However, we advise investors to remain cautious while seeking for opportunities as we maintain our bearish outlook over the near term,” they added.

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CBN Introduces Charges on Deposits, Withdrawals Above N500, 000

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The Central Bank of Nigeria on Tuesday said that the nationwide implementation of the cashless policy will begin by March 2020.

The apex bank said this in a circular to all Deposit Money Banks in the country.

It said that implementation of the policy would signal the imposition of charges on deposits in addition to already existing charges on withdrawals.

According to the circular, the charges, which take effect from Wednesday (today) will attract three per cent processing fees for withdrawals and two per cent processing fees for lodgments of amounts above N500, 000 for individual accounts.

For corporate accounts, the apex bank in the circular said that DMBs would charge five per cent processing fees for withdrawals and three per cent processing fee for lodgments of amounts above N3, 000, 000.

The statement, however, disclosed that the charge on deposits would apply in Lagos, Ogun, Kano, Abia, Anambra, and Rivers States as well as the Federal Capital Territory.

It added that the implementation of the cashless policy would take effect from March 31, 2020.

To further promote the cashless policy and enhance the collection of applicable government revenues, the CBN also announced a review of the process for merchant settlement.

It added that with effect from Tuesday, September 17, the CBN had given approval for banks to unbundle merchant settlement amounts and charge applicable taxes and duties on individual transactions as stipulated by regulations.

A statement signed by the Director, Payments System Management Department, CBN, Sam Okojere, said a downward review of the Merchant Service Charge had been approved.

It said henceforth, the charges had been reduced from 0.75 per cent capped at N1, 200 to 0.50 per cent capped at N1, 000.

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Buhari Sacks Osinbajo’s Team, Appoints Soludo, Others in New Economic Team

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President Muhammadu Buhari yesterday replaced the Economic Management Team (EMT) headed by Vice President Yemi Osinbajo with an Economic Advisory Council (EAC).

The new EAC, which reports directly to the president, will be chaired by an economist, Prof. Doyin Salami.

Buhari’s Special Adviser on Media and Publicity Femi Adesina in a statement said the EAC would advise the president on economic policy matters, including fiscal analysis, economic growth and a range of internal and global economic issues, working with the relevant cabinet members and heads of monetary and fiscal agencies.

He said the council, which is expected to assist the president in the development of critical policies, would hold monthly sessions.

Other members of the council are: Dr. Mohammed Sagagi (vice chairman), Prof. Ode Ojowu (member), Dr. Shehu Yahaya (member), Dr. Iyabo Masha (member), Prof. Chukwuma Soludo (member), Mr. Bismark Rewane (member), and Dr. Mohammed Adaya Salisu (secretary).

Adesina said: “This advisory council will replace the current EMT and will be reporting directly to the president. The EAC will have monthly technical sessions as well as scheduled quarterly meetings with the president. The chairman may, however, request unscheduled meetings if the need arises.”

Membership of the disbanded EMT, chaired by Osinbajo, had the following members: Minister of Finance; Minister of Budget and National Planning; Minister of State for Budget and National Planning; Minister of Industry, Trade and Investment; Minister of Agriculture; Minister of Information and Culture; Governor of the Central Bank of Nigeria; Special Adviser to the President on Economic Matters; Director-General of the Budget Office; Director-General of the Debt Management Office; and Director-General of the National Bureau of Statistics.

The team met weekly at the State House.

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FBNQuest Trustees Marks 40 Years of Preserving Legacies in Nigeria

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FBNQuest Trustees Limited, an FBN Holdings company has announced the celebration of its 40th anniversary as a leading provider of world-class trust and estate planning services in Nigeria. The event themed “A Legacy that Preserves Legacies” was held on Friday, 13 September 2019 at Landmark Event Centre in Lagos

The event presented an opportunity for FBNQuest Trustees to share key insights on the importance of Corporate Trust Management, Estate Planning, and Wealth Transfer, which are crucial elements to ensuring the preservation of legacies. Dr. Omobola Johnson, Senior Partner at TLcom Capital LLP and former Minister for Communication Technology, delivered the keynote address at the event.

FBNQuest Trustees was incorporated as Standard Trustees Nigeria Limited on August 8, 1979. The company at the time was a wholly owned subsidiary of First Bank of Nigeria Limited, which was known as Standard Bank of Nigeria Limited. The name Standard Trustees Nigeria Limited was changed to First Trustees Nigeria Limited in March 1980; and in April 2014 it was renamed FBN Trustees Limited to align with the FBNHoldings group naming convention. In November, 2017 it was again re-named FBNQuest Trustees Limited to signal its membership of the FBNQuest family, and its commitment to partnering with its clients on their quest to define and achieve financial success.

FBNQuest Trustees is modelled as a representation of the forward thinking culture of the FBN Holdings Plc, to improve and develop specialised capabilities within the trusteeship, asset and fund management services of the Nigerian financial system. Today, the company specialises in providing Investment Advisory Services, Corporate, Public and Private Trust Management; and as a part of FBNQuest draws on the trailblazing spirit, and a consistent focus on excellence to deliver exceptional services to clients.

Over the past 40 years, FBNQuest Trustees has not only become a leading trust company in Nigeria, but also a key pillar in the business of trusteeship. To highlight some of its key achievements over the years, the company continues to be the preferred local partner for international and multilateral entities looking to have businesses in Nigeria, and in 2013 served as the sole bond trustee on the very first bond issued by a multilateral institution in Nigeria (International Finance Corporation (IFC) $50,000,000 fixed rate senior unsecured bond).

FBNQuest Trustees is the first trust company to publish an educative compendium on estate planning to actively engage, and educate stakeholders, on the importance of Estate Planning in Nigeria, through its Legacy Series; and is a pioneer for Islamic finance in Nigeria, which led to its co-management of the first government issued Sukuk instrument launched by the Federal Government of Nigeria in 2017. The company also partnered and organised a stakeholder engagement on Voluntary Asset and Income Declaration Scheme (VAIDS) and its implications for estate planning.

Speaking about the milestone celebration, the Managing Director and Chief Executive Officer of FBNQuest Trustees, Mr. Adekunle Awojobi, emphasised the firm’s impact on trusteeship business in Nigeria, and by extension, the economy. He said, “From when we began our journey in 1979, FBNQuest Trustees has delivered impeccable solutions for the safekeeping of our clients’ assets, the transfer of generational wealth, and the preservation of their legacies. We are extremely proud to be a part of the 125 year old legacy of First Bank of Nigeria Limited, and the rich heritage of FBNHoldings as we celebrate a 40 year track record of distinction, dependability and professionalism in the trustee business.”

“We want to thank everyone who has contributed to the growth of the company over the years, as we continue to provide excellent services to our clients. We also take this opportunity to recommit to excellently serving our clients across diverse sectors to ensure that their legacies are preserved.” He added.

In terms of growth and financial performance, the company has continuously delivered shareholder value in alignment with the mandate of the Group. From a share capital of about N30 million in 90s, the company has increased to a share capital of N3billion in 2019; and has grown its profit after tax (PAT) year on year consistently, with liquid trust assets under management in excess of N40 billion as at June 30 2019.

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