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Equity performance rebounds at the Exchange

Equity performance rebounds at the Exchange

Equity
performance rebounded at the Nigerian Stock Exchange (NSE) on Wednesday
as market measuring parametre, the market capitalisation, appreciated
by a 0.26 percent.

At the close of
proceedings yesterday, the market capitalisation recorded over N21
billion gains on last trading figures of N7.887 trillion, to close at
N7.908 trillion.

All the NSE
sectoral indexes maintained previous outlook to close positive as the
NSE-30, which measures the performance of blue chips in the market,
gained by 0.41 percent; the NSE Banking gained the highest point by
0.50 percent; Oil & Gas moved up by 0.13 percent; the Food &
Beverages appreciated by 0.08 percent; while the NSE Insurance closed
flat.

Commenting on
Wednesday’s market performance, analysts at Proshare Nigeria, an
investment advisory firm, said the nation’s capital market witnessed
“low participation and lackluster performance in the early trades, but
later geared up in the noon session with key benchmark indices
recording thin turnover.”

They said banking
stocks and food/beverages stocks with few insurance stocks remained the
“toast of investors” during the session, while majority of the rescued
banks saw profit booking.

Low gainers

At the close of
trading on Wednesday, the number of gainers closed lower at 27 stocks,
as against the 30 gainers recorded the previous session, while losers
closed at 24 stocks; same position with the previous trading day’s
figures.

The NSE’s
transaction volume moved down by 62.62 percent to close at 211.60
million units exchanged in 3,939 deals, as against a growth of 80.57
percent recorded the previous trading to close at 566.04 million units
exchanged in 3,300 deals.

Also, market value
dropped yesterday by 2.97 percent to close at N1.67 billion, as against
a decline by 39.73 percent recorded last Friday to close at N1.73
billion.

Active subsector

The Banking
subsector led the market transaction volume on Wednesday with 138.29
million units valued at N1.22 billion exchanged in 2,547 deals, as
against the 104.93 million units valued at N827.70 million exchanged in
1,939 deals recorded on Friday.

The volume recorded
in the subsector was driven by transaction in the shares of Zenith
Bank, Guaranty Trust Bank, First Bank, Fidelity Bank, and Oceanic Bank.

The total volume of
69.30 million units valued at N823.93 billion traded in the shares of
the five stocks accounted for 32.75 percent of the entire market volume
and their value represented 49.07 percent of the market’s value.

The banking
subsector closed on Wednesday with 9 gainers to 8 losers, compared with
10 gainers to nine losers that was recorded the previous trading day.

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OIL POLITICS: The betrayal at Cancun

OIL POLITICS: The betrayal at Cancun

It was obvious to
observers that the climate negotiations at Cancun were wired to support
commerce rather than tackling the climate crisis that the world is
confronted with. This trend took solid steps a year earlier at the
summit in Copenhagen when a handful of nations sidestepped the
multilateral tradition of the United Nations and working through “green
rooms” away from the conference floor concocted the so-called
Copenhagen Accord instead.

The Copenhagen
Accord could not be adopted at the end of the 2009 conference for the
basic reason that majority of country delegations did not know how it
was crafted and on what basis. Countries like Bolivia and Venezuela
stood resolutely against it and that conference only agreed to take
note that such a document existed.

The fact that the
Accord was not adopted as a conference outcome did not deter its
authors, principally the United States, from working behind the scenes,
bilaterally, to get several countries to endorse it. Some analysts have
said that the endorsement was achieved through arm-twisting tactics and
promises of financial and other aids. Those who refused to yield were
sanctioned by way of having climate or environment assistance cut.

From the beginning
of the Cancun negotiations, signals were sent that its essence was to
elevate the Copenhagen Accord to the level of being the conference
outcome. The first salvo was fired by the delegation of Papua New
Guinea who declared that a few nations with divergent votes from the
majority must not prevent the conference from reaching a decision. They
suggested that if a consensus became impossible a decision should be
made by a vote. This position, as noted in an earlier article on
Cancun, was immediately objected to by the delegations of Bolivia,
India, Saudi Arabia and others.

At the end of the
Cancun summit, with the Copenhagen Accord now dressed in new garbs,
there was no consensus for its adoption. Not to be deterred, the
Mexican presidency of the conference banged the gavel repeatedly on her
table and rammed the document through, after redefining consensus as
not necessarily meaning unanimity.

Empty promises

Nations yelped and
cheered. Cancun had delivered; they enthused and backslapped each
other. But what did Cancun deliver and how will the planet fare under
the scenario set by what has been termed Copenhagen Accord 2?

The conference
outcome avoided legally binding emissions reduction targets for the
main polluting nations – the rich industrialised countries – and rather
urges a voluntary pledge based system with no monitoring mechanisms.
From recent WikiLeaks regarding discussions in France, it is clear that
the rich countries are determined not to make binding commitments to
act for the safety of the planet.

Looking for
something to celebrate, some countries latched on the promise to create
a Climate Fund within the United Nations climate change framework but
having the World Bank as a trustee. The promised climate fund did not
specify how the funds would be sourced.

The agreement did
not review subsisting intellectual property regime that does not freely
allow the exchange of green technology. It took big steps in paving the
way for new market based mechanisms that would allow for speculation
and avoidance of actions to reduce emissions at source and generally
position the planet at great risks of catastrophic climate change.

Teresa Andersen of
the Gaia Foundation, who wrote about the manner the Cancun conference
ended, captures the disbelief of critical observers:

“We sat in
disbelief as the crowds leapt to their feet, cheering, applauding,
whooping and whistling the Mexican chair of the Cancun climate
negotiations. Mexico’s foreign secretary, Patricia Espinosa, graciously
bowed her head, her hands crossed over her heart in an authoritarian
simulation of modesty, as we shook our heads, open-mouthed, at the
eerie frenzy taking place around us. In the last hours of the Cancun
climate negotiations, the world’s deluded leaders were cheering as they
tossed the planet onto the bonfire.

According to
Teresa, “The Cancun Agreement, we are told, has “saved
multilateralism”. What it has not done though, is offer any meaningful
solution to climate change. As it stands, the Cancun Agreement could
mean global temperature rises of up to 5 degrees centigrade, and a
possible 6.5 degrees in Africa.”

An initial analysis
of the Cancun outcome by Friends of the Earth International (FOEI) saw
the prospects of opening new market mechanisms as potentially creating
practices that are more harmful to the climate than current ones.

According to FoEI,
“the establishment of one or more market-based mechanisms over the
course of the next year is to be considered, with a view to taking a
decision to adopt these new mechanisms at COP 17 in South Africa. The
new mechanisms could include a number of different types of
instruments, some of which would be more destructive than others.”

Little gains

All was not lost in
Cancun. Social movements pushed the path of climate justice in various
venues in Cancun. The government of Bolivia, which had facilitated a
Peoples Conference on climate change and the Rights of Mother Earth in
April 2010, stood with the people, pushing the right analysis and
solutions, right to the end of the conference.

Social and climate
justice movements clearly stated that the causes of climate change are
systemic and that the only way to tackle the climate crisis is through
a change of the capitalist and patriarchal system that caused it.

With the clear
indication that rich nations are not keen to tackle climate change, but
would rather make bogus promises that poor vulnerable nations
unfortunately lap up, it is doubtful if the 2011 conference to be
hosted in Durban, South Africa, will produce anything different from
Copenhagen and Cancun.

The South African
government has dubbed COP17 the Peoples COP. It will be seen whether
the voices of the people will prevail or if corporations and their
surrogate politicians will hold sway in their market-based chariots.

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Customs sets higher revenue target for 2011

Customs sets higher revenue target for 2011

The Nigeria Customs
Service (NCS) says its main objective in 2011 is to mobilise its
workforce and resources toward surpassing the revenue generation target
achieved in the outgoing year.

Reviewing its
operations in the last quarter of the year, NCS Comptroller General,
Abdullahi Inde Dikko, said in Abuja that the various reforms initiated
in the service’s operational procedures will facilitate the realisation
of a new revenue target of more than N500 billion next year, from N450
billion set for 2010.

“Concrete steps
have been taken to reduce the corruption environment through a mixed
bag of welfare packages, including the approval of 100 percent increase
in the salaries and allowances of all officers and men in the service
to give them the new impetus to work harder to achieve the target,” Mr.
Dikko said.

The service, in its
2010 Annual Report by the Deputy Comptroller (Welfare), Mohammed
Ibrahim, indicated that in the last one and half year improved welfare
package has positively impacted the morale and wellbeing of the
officers, resulting in enhanced performance.

Areas of manifest
impact, Mr. Ibrahim claimed, include insurance, health, housing,
cooperative, pensions and training, as no fewer than 435 retired
officers and relations of about 134 others benefitted from the
insurance policy during the outgoing year.

The policy, which
commenced in 1992, has evolved and expanded into three schemes, with
the first requiring officers to contribute five percent of their annual
salary for a benefit that is three times their annual pay in event of
death, in addition to N80, 000 support for burial expenses. Besides, a
retired officer is entitled to 60 percent of his annual salary, in
addition to an interest payable on his contribution.

Though the NCS is a
self-accounting service, he said it has also initiated a Group Personal
Accident (GPA) policy since 2005, that enables claims of between N2
million and N6 million to be paid to officers who lost their lives in
violent circumstances in their line of duty.

“A premium of N800
million was secured during the year (2010), while claims for more than
40 officers were settled. In 2010, the insurance scheme should cover
assets, marine and aviation,” Mr. Ibrahim said.

Similarly, a
compulsory Group Life Assurance policy, as spelt out under the Pension
Reform Act 2004, entitles an officer to a minimum pay that is thrice
his annual total emolument as death-in-service, payable into his
Retirement Savings Account (RSA).

The NCS has also
been working with the Federal Mortgage Bank for a housing loan scheme
for a monthly contribution of 2.5 percent into the National Housing
Fund (NHF), deductible from individual officers’ monthly salary to
facilitate decent accommodation for officers.

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Customers want banks to improve on service delivery

Customers want banks to improve on service delivery

Bank
customers are expectant that service deliveries by banks would improve
in 2011. Seething from a plethora of complaints over banking services
in 2010, many customers spoke on the need for banks to update their
services in the coming year.

Ibrahim Buba, a
Kaduna-based architect and building contractor, said there was need for
banks to modify the modalities for usage of Automated Teller Machines
(ATMs). According to him, some of the machines choose the wrong time to
malfunction while banks insist that amounts below a certain threshold
must be done via the ATM.

“Why should banks charge me for withdrawing from the counter below a certain amount. Is it not my money?”

Mr. Buba said banks should be sensitive to the needs of the Nigerian economy.

“What this economy
needs now is entrepreneurship. Banks must be willing to support young
Nigerians with brilliant business ideas. Otherwise, if they cannot
fulfill this basic function of granting loans to businesses, then there
is no need for banks. I would rather go to a money lender to get funds
to run my business,” he further said.

He said in the New
Year, banks should look at viability of business plans to grant loans
instead of seeking fabulous and fake business proposals which fail
eventually and default in payment.

Improve services

Still on ATM
service, a bank customer who gave his name as Elvis, said banks need to
improve their services in order to reduce the hardship of customers. He
wondered why banks push people to use ATMs, even when ATM services are
not optimal.

“Last weekend, I
had to visit about five banks in my neighbourhood before I could get a
functional ATM to use,” he said. According to him, banks should employ
technology more in order to improve service delivery in 2011.

“We have heard
talks about mobile money for almost forever. Banks should embrace
mobile money technology, since the focus is now on reducing cost,” he
added.

Some customers said
banks do not abide by laid down instructions, thereby costing their
business. Bayo Adeoshun, a brand and marketing communications
consultant, said banks should take customised service as important in
2011. According to him, despite making a request to his bank that that
he should be notified of any third party withdrawal beyond a specified
amount, his bank still goes ahead to pay beyond the amount without
notification.

“This has caused me
embarrassment on a number of occasions. Going forward, I expect banks
to deliver more of specialised service to cater to the needs of their
customers. They should be friendly and reduce the stress that one has
to go through,” Mr. Adeoshun said.

Banking industry challenges

Eddy Ademosu,
president of the Association of Corporate Affairs Managers of Banks
(ACAMB), said the challenges facing the banking industry were not
peculiar to Nigeria alone.

“We appreciate the
complaints, but those complaints must come against the background of
the scenario in the banking industry this year and the challenges the
industry had to contend with. Yes, in some few cases we have had
service issues, non availability of credit,” he said.

He said with the gains that have been achieved with reforms in the banking system, things can only be better.

“Service can be
better and service will be better. A lot of initiatives that the
operators and regulators have put in place will impact on service
delivery. Banks are now talking about shared platform. The moment we
are able to streamline technology, the issues relating to ATM services
will be a thing of the past,” he said.

On access to
credit, he said more credit will be available to businesses from next
year. He said documentation for loans was important before banks can
grant loans.

“Even beyond
collateral, what about character of the customer? Part of the problems
we have in the banking industry today is as a result of default on
loans by the customers themselves.

“Customers may have good business ideas but lack organisational
structure. So, how do you relate with a formal organisation like a
bank?” He queried.

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Operators want tariff reduction on business lines

Operators want tariff reduction on business lines

Operators of phone
call centres in Lagos yesterday called on service providers to reduce
tariffs so they, ( the operators) can remain in business.

Some of the
operators who spoke to the News Agency of Nigeria (NAN) said the
business is no longer profitable for them because of high tariffs and
low patronage.

Both Etisalat and Airtel Nigeria have recently reduced their
tariffs. Etisalat to a 25k per second (N15 per min) charge and Airtel
to N20k per second (N12 per min), billing but the operators say this
reduction does not apply to them.

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‘Road project to improve socio-economic activities’

‘Road project to improve socio-economic activities’

The secretary,
Bwari Area Council, Ali Kawu, said the Bwari/Kawu Road, currently being
constructed, will improve the socio-economic activities of the area.

He told the News
Agency of Nigeria in Bwari on Wednesday that the project, which was
approved by the Federal Executive Council, would transform the area and
facilitate the conduct of elections in 2011.

Mr. Kawu explained
that in the past, election results from the area were usually collated
late because of the difficult terrain in the area.

“It is important to know that there are more than 100 villages along
the road, and 99 percent of the populations are farmers. The project
will also boost agricultural activities,” he said.

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Bauchi to produce 30,000 tonnes of fertiliser

Bauchi to produce 30,000 tonnes of fertiliser

The Bauchi State
Fertiliser Blending Company said it will produce about 30,000 tonnes of
fertiliser for farmers in the 2011 cropping season.

The commissioner
for commerce and industry, Ahmed Giade, said that the firm produced
only 5,000 tonnes in 2008, but had been equipped with modern machines
to meet the demands of farmers in the state.

He disclosed that
the state government had also acquired compacting equipment and modern
granulated machines, with their installation at 90 percent completion.

Mr. Giade said the
installation of the equipment was expected to be completed in the first
quarter of 2011. and that the company, expected to be the largest in
West Africa, had substantial reserves of kaolin, giving it a
competitive advantage.

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Copper price keeps investors keen

Copper price keeps investors keen

The
high copper price will bring further hefty investment into the sector
in Zambia next year, keeping it on track to produce an annual 1 million
tonnes by 2012, the head of the body representing foreign miners said.

Chamber of Mines of
Zambia president, Nathan Chishimba, said the trend seen in 2010, when
Zambia attracted $2 billion in new mining investments, would continue
and would further benefit from stable tax policies in the southern
African country.

“I think the prospects for mining in Zambia… are very, very bright,” Chishimba told Reuters in an interview on Wednesday.

“A high copper
price … permits flexibility by investors to plough back into
improvements in production, improvements in efficiency, and overall
improvement in output.

“We believe these
new projects, once they stabilise, will go a very long way towards
achieving the 1 million tonne mark which we have set for ourselves in
the next two years or so,” he said.

London Metal
Exchange copper rose to a record high of $9,447 a tonne on Wednesday
when trade resumed after the Christmas break, during which U.S. futures
rallied to a top fuelled by a weaker dollar and worries about supply
from Chile.

Metals prices are
expected to follow their own fundamentals during 2011, as emerging
market economies drive ahead and demand recovers in developed nations,
pushing copper above $11,000 a tonne, Goldman Sachs forecast this month.

Chishimba said the
investment of $400 million into a Zambian copper project by Brazil’s
Vale, the world’s top iron ore miner, was a vote of confidence in
Zambia’s mining sector, which is the largest copper producer in Africa.

Finance minister,
Situmbeko Musokotwane, said in November the government had agreed to
maintain the existing mining taxes for 10 years to provide stability to
mining investors.

Chishimba said
“shifting of goal posts and knee-jerk reactions” via policy changes
without exhaustive consultation of industry players could pose a risk
to the sector and he welcomed the stability in policies, which he said
reassured investors.

Chishimba said it
had taken $5 billion in investment over the last decade for Zambia to
get back to annual copper output of more than 720,000 tonnes, and the
country should strive to exceed that by attracting further investment.

Zambia should also
bring down the cost of doing business and invest in energy and
infrastructure projects to support the growing mining industry, he said.

Other mining
companies operating in Zambia include Vedanta Resources Plc, Equinox
Minerals, Glencore International AG, and Metorex.

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Mancini says Dzeko could give City edge in title race

Mancini says Dzeko could give City edge in title race

Edin Dzeko’s
chances of joining Premier League title chasers Manchester City have
been boosted with a ringing endorsement from City’s manager Roberto
Mancini.

The 24-year-old
Bosnia striker is one of the Bundesliga’s most prolific scorers and
City are reported to be in negotiations to sign him from VfL Wolfsburg
once the transfer window opens on Saturday.

“We have the chance
to win the league this year and the decisive factor could be Edin
Dzeko,” Italian Mancini told the Daily Mail.

“This player can
decide titles and that is why we want him.” City, who are level on
points with Manchester United at the top of the table, albeit having
played two more games, have relied heavily on the goals of Carlos Tevez.

With Emmanuel
Adebayor and Roque Santa Cruz both out of favour with Mancini and Mario
Balotelli yet to settle despite his hat-trick in the 4-0 win over Aston
Villa on Tuesday, Dzeko’s goal scoring record looks enticing.

Dzeko was
Bundesliga top scorer with 22 goals last season and second top scorer
the season in 2008/9 with 26, when Wolfsburg won the title.

He has scored 10 league goals in the first half of this season, even though Wolfsburg are struggling in 13th place.

Wolfsburg’s English manager Steve McClaren said recently that it could be hard for the club to keep hold of Dzeko.

“We hope that Edin
stays because he is a world class striker, but we are in the business
of football and nothing is 100 percent certain,” he said. “We will have
to see what happens.”

Wolfsburg have declined to comment on the speculation surrounding the player.


Reuters

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Osaze dares United at the Hawthorns

Osaze dares United at the Hawthorns

Football fans will get another peak into the drama that is playing out in the English Premier League tomorrow.

The first five
teams on the table are separated by five points and the last eight
teams on the log are also separated by five points. So two wins on the
trot can take a team from relegation to mid-table and a loss of two
straight matches at the top will have the same consequence.

In the top match of the day, West Bromwich Albion will host league leaders Manchester United.

West Brom have lost
their last three league matches and have plunged down the table to 14th
while United, who, according to Alex Ferguson, were ‘robbed’ of victory
at St. Andrews are at the top of the table with a game in hand. To
maintain this momentum, United need to nix the three points but Albion
also need a victory to continue the good work of Roberto Di Matteo.

Nigerian striker,
Osaze Odemwingie missed a glut of scoring chances against Bolton and
the six-goal hero was brunt of negative comments from fans. But Di
Matteo, has defended the striker saying, “Peter had two fantastic
chances and it’s quite unusual for him (to miss them). He’s quite
composed in front of goal and he usually scores. But that will come.
Apart from the chances, he had a good game. If he scored a goal or two
then we would be talking in different terms. He’ll be okay.”

The former Chelsea player will be doing his former team a great favour if he can stop the United juggernaut.

With their loss at
home to Blackburn, the Baggies have not won in three matches and are
being steadily dragged into the relegation zone. But Odemwingie has
sounded a rallying call to his team mates to brace up for the fight
ahead. “The coach said we need to be more clinical but my big worry
will be when we don’t have chances and lose,” he said on the club’s
website.

“Against Bolton we
had five good chances to score – let’s call it a bad day for us. It was
disappointing as I want our fans to go home with a smile. We played
very well; even our manager was satisfied with the performance, just
not the finishing.”

United are strong defensively

For West Brom to
record a victory tomorrow, the finishing definitely has to improve as
United boast of two defenders in Rio Ferdinand and Captain Nemanja
Vidic, who do not give any quarter. And Ferdinand is now looking ahead
to Saturday’s encounter to make amends for the two points United
dropped at Birmingham. “We should have got the three points at
Birmingham but we’ll be looking to the next game to make things right,”
Ferdinand said on United TV.

“I thought, on the
whole, we deserved to win at St Andrew’s. But you want to shut games
out like that and we didn’t manage to do it. It was a kick in the teeth
to concede the equaliser so late on.”

Ferdinand however added that the inability to call those kind of games is what makes the league very interesting.

“It’s what makes
the Premier League such a great league to play in. You get a different
set of tasks in front of you each week and you have to deal with them.”

Dealing with the
Albion players and crowd is what United have to do on Saturday as they
travel to a team that held them 2-2 at Old Trafford courtesy of a
goalkeeping howler from Edwin Van Der Saar. Albion have not won against
the Red Devils since March 1984 when Cyrille Regis and Steve Mackenzie
scored in a 2-0 win at the Hawthorns.

Other matches

Liverpool have
fallen again to the malaise of early season and Roy Hodgson knows that
his job is on the line with the Wednesday loss to bottom of the table,
Wolves. Wolves will now face West Ham with the loser starting the New
Year at the bottom of the league.

Tottenham will also love to move back to fourth place on the table with victory over Fulham.

And Manchester City could go top of the table if they beat an
unpredictable Blackpool team at the City of Manchester Stadium and
United slip up at the Hawthorns.

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