Connect with us

Business

‘No Prospect For Stock Dividends In 2010’

Published

on

Investors at the Nigerian Capital market have been told not to expect any dividend from quoted banks in the next one year until the financial institutions are back on their feet.

Dealing members on the floor who gave the advice noted that the impact of the on-going reforms in the system is so huge on the financial institutions that it would take some time before they start declaring huge profits and dividend payments that they were known for in the past financial years.

Mr. Funmi Abiodun of Supra Commercial Trust said with the huge provisions being made by the banks for their bad debts, investor should not be expecting any dividend from them in the next one year.

According to him, the banks still have a long way to go in recovering their debts, adding that they would not be considering dividend payments until they are able to get out of the present storm in the industry, which might take them up to one year.

Speaking on the fate of the banking stocks given the scenario painted, he said investors will continue to take position since there is hope of good dividends in the future.

Another broker, who spoke under the condition of anonymity predicted that the audited results for the December year-end of the banks, which would be released at the same time, would be full of surprises, as it would show the true positions of the banks unlike past audited results, adding that, investors may have to wait for the 2010 financial year to enjoy dividends from the banks.

The on-going reform in the banking sector has put all the financial institutions on their toes while efforts are being made to clean the mess of past years through full disclosure directive from the CBN, which has exposed the true state of things in the system. Going by quarterly results released so far by some of the banks, analysts have posited that the era of huge profit declaration has ended.

The quarter results had portrayed the banks in bad light as most of them recorded loses owing to huge provisions made for debts, while those who managed to post profits recorded huge declines in their bottom lines.

Print Friendly, PDF & Email
Continue Reading

Business

NSE Begins Week On Negative Note, Loses N19.49bn

Published

on

The Nigerian stock market began the week on a negative note as banking and consumer goods stocks, among others, triggered a N19.49bn loss.
At the end of trading on the floor of the Nigerian  Exchange Limited , the NGX All-Share Index dropped by 0.09 per cent to end at 43,270.94 basis points, while the market capitalisation declined to N22.58tn.
Market activities were mixed as the total volume of shares traded decreased by 30.19 per cent while the value traded rose by 34.05 per cent.
A total of 213.13 million shares valued at N2.36bn were exchanged in 4,105 deals, compared to 305.32 million shares worth N3.58bn in 4,450 deals last Friday.
FCMB Group Plc topped the traded stocks in terms of volume, accounting for 27.43 per cent of the total volume of trades while Airtel Africa Plc emerged as the most traded stock by value, representing 28.81 per cent of the total value of trades on the exchange.
14 firms gained compared to 21 losers.
AIICO Insurance Plc was the biggest gainer for the day, topping the gainers’ chart with a price appreciation of 8.57 per cent to N0.76 per share.
It was followed by LivingTrust Mortgage Bank Plc with a rise of 7.95 per cent, ending the day at N0.95 per share.
Analysing by sectors, three of the five major indices closed lower, led by NGX Oil & Gas (-0.56 per cent), NGX Consumer Goods (-0.23 per cent) and NGX Banking (0.18 per cent).
But the insurance (0.82 per cent) and industrial goods (0.002 per cent) indices gained at the end of trading.

Print Friendly, PDF & Email
Continue Reading

Business

… Introduces TIES To Boost  Business Loan

Published

on

The Central Bank of Nigeria (CBN) has introduced the Tertiary Institutions Entrepreneurship Scheme (TIES), which provides undergraduates and graduates with a platform to access loans.
The TIES’ underlying aim is to provide access to capital for Nigerian undergraduates and graduates with innovative entrepreneurial and technological ideas from polytechnics and universities.
TIES intends to shift undergraduates and graduates away from white-collar job pursuits and towards a culture of entrepreneurship development for economic development and job creation.
In a national biennial entrepreneurship competition, the Developmental Component would be distributed in the form of awards to Nigerian polytechnics and universities.
The competition aims to increase undergraduates’ awareness and visibility of high-impact entrepreneurial/technological concepts, foster entrepreneurial talent hunts in Nigerian polytechnics and universities, and encourage commercially viable and transformative technologies.
Interested Nigerian polytechnics and universities shall apply to participate in the national biennial entrepreneurship competition on a dedicated online portal.
Outlining brief details of the project, potential impact and evidence of originality of project, CBN said it is an innovation for students entrepreneurs.

Print Friendly, PDF & Email
Continue Reading

Business

CITN Applauds FG, Tax Authorities On Fiscal Policy Decisions

Published

on

The Chartered Institute of Taxation of Nigeria (CITN) has lauded the Federal Government and tax authorities on the giant strides made on fiscal policy decisions and tax administration measures initiated this year in the area of Finance Act 2021 and the introduction of TaxPromax solution.
President of the institute, Adesina Adedayo, who gave the commendation at the institute’s yearly award ceremony at the weekend in Lagos, assured the government and tax authorities of aligning with the measures and promised to provide professional thoughts and insights on ways through which they could achieve an efficient and effective Nigerian tax system.
Adedayo emphasised the need to address the database, adding that without knowing who the tax-payers are, there is no way they can take money from unknown tax-payers.
Database is the aspect we have been emphasising on as an institute and in doing this, there are so many of pockets of data we have. All the data must be harmonised to have a simple unique tax-payers identification number,” he said.

Print Friendly, PDF & Email
Continue Reading

Trending