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Some capital market
operators have raised concern over the delay in the appointment of a
permanent head for the Nigerian Stock Exchange (NSE), despite the
initial promise by the Securities and Exchange Commission (SEC) that
the process will be done quickly.

Emmanuel Ikazoboh
has been functioning as an interim head of the NSE since the sack of
Ndi Okereke-Onyiuke, the former director general, three months ago.

David Amaechi, an
executive member of the Shareholders Association of Nigeria, said until
the Exchange gets a stable leader, “the market may not enjoy stability
and woo investors.”

Mr. Amaechi said the NSE management and its council need to be sorted out to ensure a smooth running of the Exchange.

A stockbroker at
the Exchange, who would not like to be mentioned, said the capital
market investment “is a long term investment that requires a long term
administrator.” “Investors, especially foreign ones, always look out
for a stable market to put in their money; just like no investor will
put money in a country that has no political stability,” he said.

No end in sight

Finance analysts at
Proshare Nigeria Limited, an investment advisory firm, said the recent
advertorial by Accenture, the recruiting company for the NSE, suggest
that there may be a further delay in the appointment process.

“The NSE today,
functions in effect under a sole administrator-ship of the SEC, without
a determinate date and milestone for delivering on its mandate. This
has its downsides, and it is believed that the administrator may find
himself bugged down with issues not concomitant with the rationale for
the changes that took place, no matter how lofty and altruistic the
natural intentions are,” they said.

After the initial
October 12 deadline for the post, Accenture placed another advert for
the offices of the NSE chief executive officer and three executive
directors.

The analysts said,
“If only for professional etiquette, Accenture should issue a statement
to clarify why it considered it necessary to republish the
advertisement for the (NSE) chief executive officer and executive
director positions.”

They said the Stock
Exchange is supposed to be “an entity, which provides trading
facilities for stock brokers and traders to trade securities, not
internal politics. The NSE has unfortunately found itself doing more of
the latter lately than the former. This ought to be expected and
accepted as a consequence of the way we choose to conduct business in
our clime; yet it does not make it an acceptable practice.”

However, Mr. Ikazoboh recently told journalists that he is not sure when his tenure will expire.

“How long my tenure
will take, I cannot clearly say right now. But I can only say that the
process has started for the selection of a new director general. As
soon as a new DG is in place, I’ll step aside. The process of the
recruitment of the DG is ongoing,” he said.

Meanwhile, Lanre Oloyi, SEC’s spokesperson, recently said that the
commission was no longer in the best position to talk on the NSE
recruitment exercise.

Damilola Adegoke, a
writer, says he was discouraged by the procedure he was told to go
through before he could obtain a mortgage.

“I was asked to
first open accounts and save with the bank. They said after that, I
would be entitled to a mortgage of N5 million. I was told it was a 60
year repayment plan, and that you deduct your present age from the 60
years, within which you must finish the payment, so for instance, if I
am 30 years, I must repay the N5 million within 30 years. The
percentage they told me to pay annually, I think 20 per cent of the
borrowed sum, when I added it up, I saw that it amounted to about N12
million or more.

“That apart, I was
told categorically by the managing director of the bank that there was
no guarantee I would get the loan, I would just submit the form and
hope that it would be granted. I was told everything is based on
probability” Mr. Adegoke said.

Such is the tale of
about 80 per cent of mortgage applicants in Nigeria, a nation with a
weakening mortgage sub-sector which can barely create 10, 000 housing
units per annum. The nation is short of about 15 million housing units
to meet the demands of its citizens and would have to create about 700,
000 housing units in 20 years, if it would address her housing
challenges, according to Kola Ashiru-Balogun, an investment officer at
ARM, an asset and investment firm in Lagos.

Mr. Ashiru-Balogun at a recent conference added that banks have no appetite to lend to the mortgage sector.

However, in
recognition of the importance of the housing sector, and considering
that banks have ready access to cheap sources of funds through retail
deposits as well as the infrastructure to process real estate loans
efficiently and the skills to manage the risks involved, the Central
Bank has encouraged banks to support the development of the housing
sector in Nigeria.

Inadequate Funding

The Central Bank
has through its credit policies, required the erstwhile commercial and
merchant banks to allocate a stipulated minimum proportion of their
credit to the housing and construction sector.

According to the
Central Bank, available information reveals that the supply of credit
by the Federal Mortgage Bank of Nigeria is grossly inadequate to meet
the growing demand.

“With regard to
cooperative societies and state/municipal governments, evidence seems
to suggest some increase in the level of funding although, there
appears to be a lull in recent times owing to inadequate funds.

The lingering
challenges of mortgage financing in Nigeria includes low interest rate
on National Housing Fund, the hitherto high inflation rate negatively
affecting the macroeconomic environment, non-vibrancy of some primary
mortgage institutions, cumbersome legal regulatory framework for land
acquisition, The structure of bank deposit liabilities, among others.

“We need long term bond in this mortgage sector, I strongly believe Lagos State can champion this,” Mr. Ogunniran advocated.

Kelechukwu Mbagwu,
an executive member, Real Estate Developers Association of Nigeria,
(REDAN) said if builders can build with cheaper funds, it would be more
suitable for them to approach lenders.

Borrowers have
issues too Some experts say all the blame should not be put on the door
of the banks or lenders as some borrowers do not meet the requirements
to access such loans.

“The reality of the
matter is that for access to mortgage finance, usually, you would be
required to have a part funding. Most people who want to access
mortgage in this country do not have the capacity to provide the bank
part funding, so that is a major constraint. The second is collateral.
It poses very serious challenge to lenders” Abimbola Olayinka,
President, Primary Mortgage Institutions, (PMI) Association said.

Mr. Olayinka added
that unless the right environment is created to have the level of best
practice as seen across the world, the sector cannot really attract
investors.

“As it is now, the
system that we run is people driven, we have to get to a level where
mortgaging will be process driven. It should get to a stage where it
would no longer be, I know a friend who can help get this done within
the shortest time. All those long procedures must be cut down” he said
adding that there are so many bottlenecks in this present procedure,
“We have to create a smooth, formal transparent system”.

Another issue is
acquisition of land which takes a longer period in Nigeria. Processing
title and getting the required papers, especially certificate of
occupancy is not a simple matter. Hakeem Ogunniran, managing director,
UACN Property Development would be happier if it does not take more
than three days to acquire land and finish the processing of papers.

Striving forward

Some experts say
the financing of national housing programmes should be viewed primarily
as a national responsibility while the private sector should be
encouraged to provide actual investment funds for housing middle income
and upper income groups.

A Central Bank
report says empirical evidence shows that private sector participation
in housing is the most assured way to induce stability in the market.

“The housing fund
contribution should be integrated into the personal income taxation
system such that a defined proportion of taxes paid are allocated to
the housing fund pool, as it is done in Singapore. There is need for
constant re- engineering of the capital and money markets in order to
cope with the renewed challenges of provision of some mortgage
financing. In this regard, the restructuring and strengthening of the
FMBN becomes imperative for it to remain a viable financial institution
with the capacity to enhance efficient housing finance development in
Nigeria” Joseph Sanusi, a former Central Bank governor, said in a
report titled Mortgage Financing in Nigeria, Issues and Challenges of
2003.

Sadly in our consumption driven
society, many of us have come to believe that all our worries will be
solved if we have more money. Indeed, wealth has become the ultimate
measure of who we are, and we have become defined by it. When we chase
after money for its own sake, we can damage our value system and we pay
for it in time, health, and stress.

What does money mean to you?

Do you have a healthy relationship with
money? Do you worship it? Or do you use it as a tool to achieve your
goals? Does your life depend on it? What really matters to you? What
really does make you feel happy and fulfilled?

It is important to understand your own
money personality and to put it in the right perspective. The ways in
which we make money and how we spend it reveal a lot about our
personality. This relates to the emotional aspects of money such as
needs, values, relationship choices, feelings about earning and career
choices, spending, saving and investing. Issues of control, security,
self esteem, and sense of well-being are always evident when money
matters come up.

Maslow’s hierarchy of needs

What do we need? Abraham Maslow was an
American psychologist best known for establishing his theory of the
“hierarchy of needs” which he developed in the mid 1900’s.This model
served as a tool for understanding human motivation and development. He
identified five levels of human needs that must be satisfied by a
person’s environment in order for him or her to attain full potential.
Maslow’s pyramid illustrates human needs stacked in layers with
physiological needs at the base of the pyramid and self-actualisation
and fulfilment at the highest level.

The first and lowest level involves the
most basic needs; that is, what a person needs to stay alive, such as
air, water, food, sleep, warmth, shelter and hygiene. At the second
level, Maslow places safety, security, employment, money and financial
stability, and good health. By the fifth level the human being seeks
self-actualisation and fulfilment. He has the desire and ability to
grow; doing something that makes life complete such as, supporting a
cause, taking up a calling to realize personal potential, or seeking
personal growth.

Relationship between money and happiness

Why doesn’t the lucrative promotion or
the brand-new five-bedroom house keep us swathed in a permanent state
of happiness? We like to think that if we just had a little bit more
money, we would be happier but when we get there, something is still
missing. It appears that the more money you have, the more you want and
that buying the car, boat or bike of your dreams, brings you transient
joy rather than a deep lasting sense of fulfilment. We tend to
overestimate how much pleasure we will get from having more money.

Certainly, earning more makes you happy
in the short term, but you quickly adjust to your new lifestyle and all
it brings. Naturally there is that thrill of the shiny new car but soon
you get used to it and start wanting the newer, more powerful model.
Having made a special purchase, we immediately dream of acquiring the
better, “latest” version. Scientists call it ‘the hedonic treadmill’ –
and many people spend far too much time on it.

The Hedonic Treadmill

Professor Emeritus Richard Layard,
LSE’s Director of The Centre for Economic Performance, in “Happiness:
Lessons from the New Science” discusses the relationship between
happiness and rising standards of wealth. A critic of consumer society
and the all-consuming pursuit of money, he suggests that we eventually
get trapped on the “hedonic treadmill”. Our happiness begins to wane as
we start to take the new positive changes in our life for granted.

Money brings temporary happiness. A
dramatic change in wealth such as the move from abject poverty to
financial security can significantly increase happiness, but the
satisfaction will be transient; its effect will only last until the
beneficiary gets used to their new status. He argues that once poverty
and discomfort have been eliminated, extra income is much less
important than human relationships. So how do we step off the hedonic
treadmill?

What brings more lasting happiness?

Having spent several years interacting
with people with various levels of wealth, I am convinced that money
does not in itself create or sustain happiness. It certainly buys
things and improves the quality of life and a standard of living. Yes,
money is important, as it helps us to pay our bills, educate our
children, support our families, but if we rely on it as the key to
happiness, it can be illusory as it does not usually address the real
issues such as, concern for their families, problems in relationships,
and work related stress.

Money can buy food, shelter, education,
and pays for healthcare and day-to-day comforts. Of course if you don’t
have enough money to send your children to school, can’t provide for
your elderly parents, or can’t afford an expensive surgery that would
alleviate the pain from an old injury, it would be hard to be happy. In
that sense, money can buy happiness by eliminating some worries and
bringing quick relief to financial concerns.

Beyond that, longer-term happiness is
dependent upon one’s personality and how fortunate one is to have the
truly important things in life: a strong relationship with God, a
loving family, good reliable friends, good health for yourself and your
loved ones, a fulfilling and secure job, a safe environment, moral
values and freedom.

Happiness comes from giving

Having money is a great responsibility
because it enables one to do things. Material possessions eventually
lose their sparkle then beg to be replaced. Yet, one can make
transformational gifts by helping others and even shaping or saving
lives. It is through generosity that we attain the best relationship
with money. By deciding to make a difference in someone else’s life,
you give more meaning to your own. The joy that this brings is a
lasting form of happiness.

The constant message that is relayed in our society that money is
the most important thing in our lives and the constant desire for more
has far reaching consequences for our value system and morals. This
unending pursuit of money has damaged family relationships, our
environment and our country. If you earn your money in a healthy,
honest way, and spend it wisely, you have a better chance of being and
staying happy.

Egypt’s Orascom
Telecom will not list its Zimbabwean arm until after the outcome of a
deal between an Orascom and Russia’s Vimpelcom, an executive for the
Zimbabwe unit said on Wednesday.

Anwar Soussa, chief
commercial officer at Telecel Zimbabwe, also said on the sidelines of a
telecoms conference, that the company expects a 20 percent increase in
customers by 2011, from about 1.5 million now.

Telecel Zimbabwe said in June it may issue new shares and list its stock, in order to meet regulations on local black ownership.

But Mr. Soussa said the company was in no hurry to seek a listing.

Confronting China
and the United States in the debate over global imbalances and
currencies will not provide a solution, South Africa’s finance
minister, Pravin Gordhan, said on Thursday.

In a written
response to questions in parliament about a G20 meeting of finance
ministers last month, Mr. Gordhan said South Africa had called for
rebalancing the global economy by addressing monetary policy challenges.

“South Africa as a small, open economy, and faced with the problem
of a rapidly appreciating currency, called for a multilateral and
inclusive solution to the issues raised,” Mr. Gordhan said, reiterating
calls for the currency issues to be solved before escalating into a
trade war.

Two of Nigeria’s
nine rescued banks are in talks with foreign investors about
recapitalisation, but most of the others are more likely to be taken
over by local rivals, banking sources said on Thursday.

Sub-Saharan
Africa’s second-biggest economy rescued nine lenders deemed to be
dangerously undercapitalised in a $4 billion bailout last year. The
Central Bank has been trying to find new investors to help recapitalise
them since then.

Nigeria has set up
a state-run Asset Management Company (AMCON) to help absorb up to 2.2
trillion naira of bad bank loans, but this will only bring the rescued
lenders back to zero shareholder funds.

“AMCON will do the
non-performing loan purchase, but after that, there will still be a
hole, and that hole will have to be filled through mergers,” one senior
banking source said.

Banking sources said two of the lenders – Bank PHB and Union Bank – were in talks with foreign investors.

Four more are
talking to local banks, one has raised funds and will scale down to
survive, while two others have yet to find potential suitors, the
sources said.

A banking source
familiar with the negotiations said Habib Bank Ltd – one of Pakistan’s
biggest lenders, which is majority owned by the Aga Khan Fund for
Economic Development – was in talks with Bank PHB about increasing its
shareholding. Bank PHB was created in 2005 out of a merger between
Habib’s local subsidiary and Nigeria’s then Platinum Bank, and Habib
still has an interest in the bank. Bank PHB declined to comment.

Union Bank is in
talks with a consortium of private equity investors including local
firm, African Capital Alliance, World Bank private sector lender, the
International Finance Corp (IFC), and U.S. trade promotion agency, the
Overseas Private Investment Corporation (OPIC), banking sources said.

The consortium also
includes Botswana-based ABC, the parent company for several sub-Saharan
African banks, Keffi Capital, run by a former Goldman Sachs executive,
and London-based Auctor Capital Partners, the sources said.

Union Bank has said it is in exclusive talks with a potential suitor, but has made no further comment.

Central Bank
governor, Lamido Sanusi, has said foreign private equity investors and
banks are among those interested in the rescued lenders, but has given
no details.

Local consolidation

Four more rescued
banks – Afribank, Finbank, Oceanic Bank, and Intercontinental Bank –
are in talks with healthy local rivals about recapitalisation, the
banking sources said.

Afribank is
considering a bid by Fidelity Bank – which said last year it was
interested in a potential acquisition – several sources said. Fidelity
confirmed it had bid for a rescued bank, but made no further comment.

First City Monument
Bank (FCMB) is the preferred bidder for Finbank, which is less than a
tenth its size at current market prices, sources have said. Finbank has
said it is in talks with a potential investor, but made no further
comment.

Oceanic Bank and
Intercontinental, among the biggest of the rescued banks, are also in
talks with local competitors, but these are at an early stage, sources
said.

Spring Bank and
Equitorial Trust Bank (ETB), among the smallest of the distressed
banks, were yet to find suitors. Neither of the banks could be reached
for comment.

The ninth bank,
Wema, is restructuring into a regional bank, which has a significantly
lower minimum capital requirement than national banks. It raised 9
billion naira in a share placement in September, and has won approval
to raise 7.5 billion naira more to ensure its survival.

A tenth bank, Unity
Bank, was judged to have insufficient capital last year, but was not
given a capital injection because it had a healthy liquidity position.

It has increased its capital base to the minimum requirement, after raising 17.34 billion naira in a rights issue this year.

After
a meeting between top officials of Asset Management Corporation and
stockbrokers yesterday in Lagos, some stockbrokers said though they are
not totally satisfied with the current arrangement, the indication are
that the corporation was prepared to address their concerns.

The
meeting, which lasted for about an hour, was the first between the
Asset Management Corporation of Nigeria (AMCON) and the stockbrokers
since the Senate confirmed the appointment of the board members.

Operational guidelines

This
came as Mustafa Chike Obi, AMCON’s managing director, said it would
work within the contents of its operational guidelines, which are yet
to be made public.

“Only
the Central Bank has the prerogative to release these operational
guidelines,” Mr. Chike Obi told stockbrokers at the meeting, which was
preceded by another meeting with some bankers. He said based on the
guidelines, assets will be held for two to three years while “Central
Bank may change this time frame, but any sale will be announced
publicly.”

The managing director did not speak with journalists after the meetings.

A
source who attended the meeting said stockbrokers were, however, not
fully satisfied with how AMCON intends to address the issue of margin
loans, which remains a major impairment in their books.

“Mr.
Chike Obi was not specific on how margin loans will be treated. Brokers
were expecting a categorical statement that once AMCON takes up such
loans, it will discharge stockbrokers of their indebtedness,” the
source said.

Joshua
Omo-Kehinde, managing director of Marimpex Investment Limited, a
stockbroking firm, said there are various issues involved in each case
of margin loans, which is why it is proper for the corporation to
handle each situation on a case by case basis.

“What happens if some of the shares or none of the shares have been sold?” Mr. Omo-Kehinde queried.

“Also,
do not forget that there are contractual agreements on each of the
loans, which must be honoured. So it will not be easy to apply the same
set of rules for all the cases,” he further said.

No nationalisation

One of the assurances given by AMCON was that it had no intention to be active owners of companies whose shares are acquired.

“This is due to concerns about nationalisation of such companies,” the source added.

He
said AMCON intends to discuss with every debtor with a view to
providing forebearance or debt forgiveness, while the asset corporation
will help to recapitalise the banks by working with the prospective
buyers and merger partners.

As
part of the agreement, AMCON will be buying loans and not the
underlying assets of the non performing loans, while payments will be
made with zero coupon three year bonds, which will be refinanced with a
seven year bond to be determined by the market.

Victor Ogiemwonyi, managing director of Partnership Investment Plc, said AMCON has shown that it will take its job seriously.

“Their
actions to date and the speed and fair value given to assets they are
acquiring in the first phase have given them credibility. The
implication for the market is very positive,”Mr. Ogiemwonyi said.

He said once all the toxic assets are taken off the books of the banks, there will be room to resume lending to the economy.

AMCON,
however, said it will not acquire tainted assets, which were based on
insider related loans, or loans acquired with criminal intent.

Corporate Social
Responsibility (CSR) is an initiative of an organisation to engage in
the development of the community where it operates. It is aimed at
providing social amenities for public good, delivering value, and
showing respect for the people and community.

An organisation
sees itself as socially responsible when it adds value to the lives of
the community and its people. When an organisation intends to support a
community in its quest for development, such organisation and its
brands are perceived in good light. Subsequently, the consumers will
have a positive view of a brand that is making concrete effort to make
the community a better place.

The question is why
are corporate organisations shirking their responsibilities in
engendering development in their communities of operation? The reason
is not farfetched, as some organisations reap profits and do not see
the need to give back to the society. In this clime, it has been
observed that several corporate organisations have not deemed it fit to
support developmental projects.

One sees no reason
why a little percentage of their profit is not set aside to make life
more meaningful to the people. It may be argued that this is the
responsibility of the government, but government cannot do it alone. A
little support from corporate organisations goes a long way in solving
myriads of problem people face.

CSR indeed adds
value to the company and its brands, as the consumers believe their
communal interest are given attention. It focuses on the social well
being of the society, and this builds brand affinity and loyalty
amongst the consumers. There is a link between CSR and brand
perception, as any brand that seeks public good is perceived positively.

It has become
important for corporate organisations to conduct their businesses in
such a manner that adequately addresses the needs of the consumers. CSR
should be part of a corporate strategy and should receive support from
the top level management. Corporate organisations should seek long term
partnership between them and the communities they operate in.

Social responsibility is paramount

Perception is very
important. This is because CSR plays a role in consumer behaviour, as
consumers are CSR-sensitive. There is an increasing influence of CSR on
consumers purchase behaviour. This becomes crucial, as consumers
perceive such brands as responsible brands.

Corporate
organisations should develop a holistic approach to CSR and also
evaluate their social relevance to the community. When such evaluation
takes place, organisations should measure their impact against the
overall brand reputation.

If there is a
yawning gap, then such organisations need to take the right measures to
be seen and perceived as “a supporter” of the people. It needs not be
emphasised again that CSR positions companies in the minds of consumers.

When an
organisation focuses on impactful initiatives, the community is bound
to be loyal to the brand. For instance, a company went up in flames,
but the community mobilised themselves and the fire was extinguished.
CSR plays a dominant role in building customer loyalty, and these are
the differentiating factors. The value of any coporate organisation and
its brand is based on consumers’ experience.

CSR is not just a
PR exercise, and neither is it just an image booster, but a singular
act that can transform the society and position the company as socially
responsible and relevant to the society. It is, indeed, a cohesive
strategy which aims to reach out to all, and create touch points to
make consumers have memorable experience.

It yields enormous
benefits to the brand when it identifies with the yearnings and
aspirations of the consumers. It indeed makes consumers create
indelible associations with brands, as they believe the brand promotes
their interest.

It is also apt to
state that CSR activities should not be initiated because the
organisation wants to discourage consumers from raising ethical
questions posed by their operations. This adversely affects the
perception of the organisation by the consumers. If any organisation
embarks on CSR based on hypocrisy and insincerity, such brands will
suffer perception crisis. It is important that corporate organisations
measure their responsiveness to the community, and also proactively
promote the public interest.

CSR is not only to leverage visible brand image, but also to connect with the consumers.

Nigeria
is ranked first among the top 10 remittance recipients in 2010 in sub
Saharan Africa, according to the World Bank’s latest Migration and
Remittances Factbook 2011 released on Tuesday.

Nigeria
received $10 billion (about N1.5 trillion) from remittances, followed a
distant second by Sudan, with $3.2 billion; Kenya, $1.8 billion;
Senegal, $1.2 billion; and South Africa, $1 billion. The report also
listed Nigeria among the top 10 emigration countries in the region
alongside Burkina Faso, Zimbabwe, Mozambique, Côte d’Ivoire, Mali,
Sudan, Eritrea, the Democratic Republic of Congo, and South Africa.

The
report described remittances to developing countries as a resilient
source of external financing during the recent global financial crisis,
with recorded flows expected to reach $325 billion by the end of this
year, up from $307 billion in 2009. The report added that worldwide,
remittance flows are expected to reach $440 billion by the end of this
year.

The true size of remittances, including unrecorded flows through formal and informal channels, is believed to be larger.

Official
data for the months of January-August 2010 indicate that the Central
Bank supplied approximately 27.1 percent of the $52 billion of inflows
to Nigeria’s foreign exchange market, with “autonomous sources” oil
companies, international institutions, and remittances accounting for
the rest.

Source of financial support

“Remittances
are a vital source of financial support that directly increases the
income of migrants’ families,” said Hans Timmer, director of
development prospects at the World Bank.

“Remittances
lead to more investments in health, education, and small business. With
better tracking of migration and remittance trends, policy makers can
make informed decisions to protect and leverage this massive capital
inflow, which is triple the size of official aid flows,” Mr. Timmer
said.

Christian
Udechukwu, West Africa regional director, Money Transfer International
(MTI), a money transfer firm, said more remittances inflow into the
region can be achieved when regulators of countries, which have high
numbers of Diaspora population, lower barriers on remittances from
their countries.

“These
barriers are usually in terms of restrictions on minimum remittances,
stiff documentation requirements, and outright refusal of permission to
financial intermediaries to license companies who are keen to serve the
diaspora remittances market,” Mr. Udechukwu.

The
World Bank report stated that officially recorded remittance flows to
developing countries are estimated to increase by six percent to $325
billion in 2010. This marks a healthy recovery from a 5.5 percent
decline registered in 2009.

“In
line with the World Bank’s outlook for the global economy, remittance
flows to developing countries are expected to increase by 6.2 percent
in 2011 and 8.1 percent in 2012, to reach $374 billion by 2012,” the
report said.

The
top remittance sending countries in 2009 were the United States, Saudi
Arabia, Switzerland, Russia, and Germany. Worldwide, the top recipient
countries in 2010 are India, China, Mexico, the Philippines, and
France. As a share of GDP, however, remittances are more significant
for smaller countries – more than 25 percent in some countries.

Investors at the
Nigerian Stock Exchange (NSE) recorded additional gains on the value of
their equities on Wednesday, in spite of the nationwide strike that
affected many investments.

The Exchange market
capitalisation closed yesterday at N8.116 trillion, after opening the
day at N8.105 trillion, reflecting 0.13 percent upturn or N11 billion
gains. Meanwhile, about N209 billion had been gained on Tuesday,
following investors’ interest in some blue chip stocks.

The NSE All-Share
Index also appreciated on Wednesday by 0.13 percent or a gain of 32.84
points on the previous day’s figures of 25,383.37 basis units, to close
at 25,416.21 units.

Transaction volume
on the Exchange yesterday grew by 6.18 percent to close at 557.25
million units exchanged in 5,986 deals, as against a growth of 26.59
percent recorded the previous trading, to close at 524.83 million units
exchanged in 7,340 deals.

‘No selling pressure’

Olugbenga Emmanuel,
a finance analyst at WealthZone Company, a portfolio management firm,
said the market closed on a positive note because “there was no selling
pressure by investors,” a sign he called “‘the gradual return of
investors’ confidence in bourse.”

Meanwhile, a
stockbroker, who would not like to be mentioned, said the labour strike
would have stopped trading activities and subsequently affected stock
performance if some traders did not summon their staff to ignore the
industrial action.

“Initially, we
thought there won’t be trading because some staff refused to show up
early at work. But things got back to normal before the actual trading
period started,” he said.

More gainers

The number of
gainers at the close of trading session on Wednesday closed higher at
48 stocks, as against the 43 gainers recorded the previous day, while
losers closed at 21, compared with the 20 losers recorded on Tuesday.

Nigerian Breweries
and Lafarge Wapco topped the price gainers’ table with an increase of
N1.97 and N1.49 on their initial prices of N77.00 and N40.51 per share,
respectively. Cadbury and Oando followed in the chart with an increase
of N1.00 each, to close at N28.00 and N65.50 per share.

On the losers’
side, Dangote Cement and Conoil led the price losers’ chart with a loss
of N6.72 and N2.04, from their opening prices of N134.66 and N40.98 per
share. Flour Mills Nigeria and African Petroleum followed with 98 kobo
and 94 kobo losses respectively, to close at N70.02 and N24.00 per
share.

Active subsector

The banking
subsector led the most active subsectors’ chart with 300.927 million
volumes of shares, valued at over N2.395 billion.

The volume recorded
in the subsector was driven by transaction in the shares of Union Bank,
Zenith Bank, First Bank, United Bank for Africa, and Oceanic Bank.

The total volume of
224.79 million units, valued at N1.96 billion, traded in the shares of
the five stocks accounted for 33.03 percent of the entire market volume.