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Bulls Drive Exchange Index To Seven-Month High

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The bulls drove the market for the week ended April 27, 2012 despite the drop in the turnover as the Nigerian Stock Exchange (NSE) performance indicators hit a seven and half months.

Market “watchers attributed the feat to an increased inflow of capital from foreign institutional investors due to the prospects of impressive returns on investments.

In specific terms, the NSE All Share Index, the barometer for measuring the performance of listed equities surged by 1.62 per cent to finish at 22,109.44 basis points as against 21,756.50 bass points recorded the previous week.

Also, the market capitalisation which measures the value of listed equities rose by N112.55 billion to close at N7.05 trillion compared with the N6.93 trillion recorded the preceding week, according NSE weekly report.

Consequently, the percentage year to date gains of the index and market capitalisation increased to 6.55 per cent and 7.94 per cent respectively.

As at August 16, 2011, according to transactions, the Market Capitalisation of traded equities stool at N7.290 trillion while the All Share Index was 22,792.06 basis points; however the year to date performance then was at a negative of 7.99 per cent lower than 2011 year opening level.

Market watchers said the bullish run is largely driven by speculation that the market recently inaugurated, were about to start operations in the market but the broker leaders should come on board to sustain the trend.

According to the NSE weekly report, three out of the four sectoral indices were on the upside at the end of the week under review. The NSE Consumer Goods index appreciated by 23.46 points to close at 1,787.72 while the NSE Banking Index added 5.78 points to finish at 319.73.

Similarly NSE Oil/Gas Index garnered 13.19 points to close higher at 192.53 while the NSE Insurance Index dipped by 0.77 points to finish lower at 124.94.

At the close of market last week, a total of 1.916 billion units of shares valued at N16.664 billion were exchanged by investors in 23,143 transactions down from a recorded volume of 2.049 billion units of shares worth N15.736 billion traded in 19,783 deals the previous week.

The most active in volume terms during the reviewed week was the banking sub-sector of the Financial Services Sector which recorded a turnover of 1.520 billion units of shares valued at N11.940 billion in 13,265 deal Volume in the banking subsector, the report said, was largely driven by activity in the shares of United Bank for Africa (UBA), Zenith Bank and \First Bank of Nigeria (FBN) which accounted for 875.54 million units of shares. This represents 57.59 percent, 52.91 per cent and 46.69 per cent of the turnover recorded by the subsector, sector and total market turnover for the week respectively.

The Insurance Carriers, broker Services Subsector of the Financial Service Sector boosted by activity in the shares of AIICO Insurance emerged second on the week’s activity table having recorded a subsector turnover of 47.755 million units of shares valued at N23.918 million in 532 trades.

 

Vivian-Peace Nwinaene

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Bayelsa consumers Groan  Over Inflation As Traders Remain Helpless Over Low Patronage 

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Consumers and traders at the Swali ultramodern market in Yenagoa, capital of Bayelsa State have continued to groan over high prices of commodities and poor Patronage due to cost-push inflation.
The Tide reports that in the past weeks prices of goods and services in Yenagoa metropolis has experienced increase.
Notable services like transportation have also increased  lately due to increase in the pump price of fuel that has recently further exacerbated inflation in the prices of staple foods like rice, beans, garri and others.
Speaking with The Tide on a market survey, a trader, Mrs Tovie Barakabo said a bag of bean which sold between N120,000-N130, 000 now goes for N140,000-N145,000.
Mrs Barakabo also hinted that the only commodities whose price has not gone up was price of millet which sells N60,000, while big bag of garri now sells for N30,000.
The Tide further gathered from other inside Source that 25 litres of Kings cooking oil currently sells N75,000 as against the former price of N57,000.
Other commodities such as delicious vegetable oil  now goes for N68,000, Pure vegetable oil currently goes for N66, 000, while spaghetti is now N18,800 per bag.
The market survey also discovered that Sonnia tomato mix sells N75,609, while a big and small basket of fresh tomatoes are sold for N30,000 and N6,500 respectively.
A disappointed custom, Mrs Juliet Domo who fielded questions from The Tide expressed her worries over the inflation, calling on government to take decisive stands against inflation.
By: Ariwera Ibibo-Howells, Yenagoa
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FG’s N1,350 FUEL DISCOUNT:  Drivers lament low impact on Transportation 

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Some Commercial drivers in Port Harcourt have said that the Federal Government’s N1,350 fuel discount is yet to reduce their daily operating cost.

A cross session of commercial drivers who spoke to The Tide correspondents in Port Harcourt said they are yet to feel the impact of the government discount, adding that most filling stations in the city are even selling above the pump price 

A driver Jude Ogbo who operates the mile 1 Rumuokoro axis of Port Harcourt said  plies  the discount has not reflected in his daily fuel expenses.

“Since the discount was announced, many filling stations still sell at the old price. When you go there, you discover they sell you two litres at the price of one. For now, we have not seen any reduction,”_ he said.

Another commercial driver, Comrade Ishmael Uzeho who operates within the Port Harcourt metropolis, said the discount is not being implemented across the country.

“How has the discount affected us? I will say it has not. Many stations are not working. Only NNPC is working and that is just one person in the whole country. If government really wants to help, let the fuel price go down properly,”_ he said.

Uzeho added that if the price of fuel goes down, transport fares will also go down. He noted that his route fare has remained at N500.

On his part, Mr. Moses Dapa, Supervisor at Sam Jaja Foundation Transport Company, said the company has not increased its fares despite the high cost of fuel.

“We are still running normal price. We charge N2,000 and N5,000 depending on the destination. We will not increase our price. I don’t know about other parks, but for Sam Jaja, we are maintaining normal price,”_ Dapa said.

He appealed to passengers to understand that drivers are not using high fuel price as an excuse to charge excessive fares.

Other drivers who spoke said the federal government should monitor the NNPCL retail stations to ensure that the directive is implemented.

Recalled that The Federal Government in abid to reduce transportation cost in the country had announced a 30-day margin discount at NNPC Retail stations across the country from October 1 to 31,

However investigation revealed that the policy is yet to affect transportation cost in the country.

By; Stephens Sopakriba and Saint Davies

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Nigeria Has gas potential to navigate energy crisis – Group

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Alfa Designs Nigeria Limited, an asset management company, has assured Nigerians that the country possesses the resources to navigate the current global  energy crisis.

In a press statement released to The Tide’s  source on Friday in Abuja, the group said Nigeria had a significant resource advantage due to its vast natural gas reserves.

“At a time when global energy markets face unprecedented volatility and rising operational costs, Nigeria stands on a massive resource advantage with its vast natural gas reserves,” the group said.

Highlighting this potential, Alfa Designs urged the nation to move past complaints over energy costs and aggressively embrace Compressed Natural Gas (CNG) as a sustainable engine for  economic growth.

While federal policy adjustments have sought to cushion the impact of global energy shocks, industry experts emphasised that long-term relief hinges on a rapid, nationwide transition to gas.

“Transitioning away from expensive traditional petroleum products promises to ease the financial burden on ordinary citizens.

“It will also reposition Nigeria as an attractive industrial hub capable of drawing foreign direct investment and driving job creation,” it said.

To demonstrate the practical feasibility of this transition, the group said it recently partnered with a global Original Equipment Manufacturer (OEM) to lower the entry barriers for commercial drivers.

“By negotiating directly with the manufacturer, we reduced the total cost of acquiring and installing a CNG conversion kit for commercial tricycles (commonly known as Keke NAPEP) from up to N700,000 down to under N450,000.”

The group said this shift offers dramatic immediate financial benefits for local operators, with petrol currently selling at roughly N1,390 per liter.

It said that, in comparison, at a CNG equivalent price of about N98 per liter, a daily commercial driver using 10 liters of fuel reduces its daily energy expenditure from N13,900 to N3,980.

“This represents a daily net savings of N9,920, or more than 71 per cent.

“Over a standard 26-day working month, drivers save over N257,000, allowing them to fully recover the cost of the CNG conversion in less than 46 operational days.”

The company further stated that when scaled nationally, the economic implications are monumental.

“Nigeria consumes approximately 50 million liters of gasoline daily, costing roughly N69.5 billion per day.

“A nationwide 71 per cent reduction in fuel expenditure would generate daily national energy savings of N49.6 billion.

“On an annualised basis, this shift equates to approximately N18.1 trillion, or $13.5 billion, kept within the domestic economy.”

The group added that those recurring national savings would offer a vital mechanism to help address Nigeria’s estimated $2.3 trillion infrastructure deficit.

It said reinvesting those funds into the economy helps eliminate the 30 to 40 per cent operational overhead currently consumed by imported fossil fuels.

“The resulting boost to corporate margins expands the national tax base, generates reliable user-fee revenues to make major transit projects bankable, and creates a self-sustaining financial cycle,” it said.

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