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Capital market loses N309bn year to date

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LAGOS – Among the 30 highly capitalised stocks listed on the Nigerian Stock Exchange (NSE), three banking stocks – Skye Bank plc, Ecobank Transnational Incorporated plc, and Fidelity Bank plc – were most negatively impacted in a recent value loss which took about N309 billion off Nigerian equities.

The sensitivity of the All Share Index (ASI) as benchmark indicator that tracks performance of the entire Nigerian equity market is largely driven by highly capitalised stocks.

BusinessDay tracking of the performance of large cap stocks at the Nigerian bourse (from January 7 to February 7, 2014) shows that Skye Bank plc lost most in the NSE-30 basket after its share price declined by 46.12 percent or N1.96kobo from a high of N4.25kobo to N2.29kobo.

Another big loser in the four-week period to February 7 is Ecobank Transnational Incorporated (ETI), which has declined by 12.82 percent or N2.18kobo from a high of N17 to N14.82kobo.

Similarly, Fidelity Bank plc has lost 11.24 percent or N0.3kobo from the value of its shares, which was N2.67kobo as at January 7 but declined to N2.37kobo as at February 7.

Also, at a low of N6.85kobo from N7.70kobo, Diamond Bank plc lost 11.04 percent or N0.85kobo of the value of its share in the review four-week period.

The value loss recorded in large cap stocks contributed immensely in redirecting the market trajectory to the negative zone of about 1.34 percent at the close of deals last week.

As banks recover from the 2013 regulatory pressures, with appreciable earnings growth expectation, market participants expect a positive correction in the prices of the value names in the sector.

For instance, Bismarck Rewane, CEO, Financial Derivatives Company Limited, noted that “bargain hunters may consider banks with solid fundamentals in this temporary downturn”.

Rewane, who spoke at the Lagos Business School (LBS) executive breakfast meeting, added that “banking stocks on the NSE are trading on average at 8.5x earnings compared with the market P.E. at 14.5x”.

Ashaka Cement plc, United Bank for Africa plc and Access Bank plc also followed the trio earlier mentioned in value loss.

In the four-week period to February 7, Ashaka Cement plc declined by 9.73 percent or N2.06kobo from a high of N21.17kobo to N19.11kobo; United Bank for Africa plc lost 9.72 percent or N0.86kobo from the value of its share from N8.85kobo to N7.99kobo; while Access Bank plc, which traded at a low of N8.79 kobo from N9.7kobo, lost 9.38 percent or N0.91.

As the banking counters occupy top position in this value shed, with associated positives on full-year 2013 earnings releases now in the air, market analysts see recent value shed as an opportunity for bargain hunters to buy into some of these banks, particularly those with strong fundamentals and dividend payment history.

The value of equities traded daily dropped by 49.85 percent or N3.163 billion from N6.344 billion to N3.181 billion; while the volume of equities declined by 34.58 percent or 144.361 million from 417.498 million to 273.137 million.

In addition to the aforementioned equities, Union Bank of Nigeria plc lost 9.09 percent or N0.95kobo from N10.45 to N9.50kobo; FBN Holdings plc declined by 8.69 percent or N1.4kobo from a high of N16.10kobo on January 7 to N14.70kobo as at February 7, 2014; while Nigerian Breweries plc, which opened the review period at N167.5kobo, dropped by 8.06 percent or N13.5kobo to N154.

Guinness Nigeria plc lost 7.91 percent or N18.83 percent from N238.08kobo to N219.25kobo; Lafarge Cement Wapco plc dropped by 6.09 percent or N7 from N115 to N108; while Zenith International Bank plc lost 4.92 percent or N1.15 from N23.38 to N22.23.

Looking further into the performance of stocks in NSE-30 basket, it shows that UACN plc, which stood at N70.35 on January 7, declined to N69 as at February 7, indicating a decline of 1.91 percent or N1.35; while GlaxoSmithKline Nigeria plc gained N1 or 1.47 percent from a low of N68 to N69.

International Breweries plc recorded a decline of 1.36 percent or N0.4kobo from N29.4 to N29; Oando plc lost N0.1kobo or 0.46 percent from N21.73kobo to N21.83kobo; FCMB Group plc declined by N0.11kobo or 2.87 percent from a high of N3.83kobo to N3.72kobo; Transnational Incorporated plc, which stood at N4.05kobo, rose to N4.11kobo, indicating a rise of 1.48 percent or N0.06kobo; while Nestle Nigeria plc declined by N30 or 2.56 percent from N1,170 on January 7 to N1,140 as at February 7.

Unilever Nigeria plc was in the gainers league in our four-week trend watch after rising by 1.44 percent or N0.77kobo from N53.24kobo to N54.01kobo; Stanbic IBTC Holdings plc lost 6.98 or N1.5kobo from a high of N21.50kobo to N20; Flour Mills of Nigeria plc also dropped by 0.07 percent or N0.06kobo from N87.06kobo to N87; GTBank plc dipped by N0.92kobo or 3.31 percent from N28.4kobo to N27.48kobo; while Total Nigeria plc lost 0.26 percent or N0.45kobo from N175.46kobo to N175.01kobo.

Forte Oil plc recorded a value rise of 14.84 percent or N13.21 from N89 to N102.21; Dangote Cement plc gained N5 or 2.13 percent from N235 to N240; Dangote Sugar Refinery declined by 1.36 percent or N0.16 from N11.8 to N11.64; Julius Berger was down by 1.78 percent or N1.29 from N72.29 to N71; while PZ Cussons Nigeria plc gained N0.1 or 0.26 percent from N37.90 to N38.

– BUSINESS DAY

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Business

Content Creation Can Buy 4 Lamborghini’s – Comedian Josh2Funny Reveals

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Nigerian comedian and popular skit maker, Chibuike Josh Alfred, known by his stage name Josh2Funny, has shed light on the profitability of the content-creating industry.

In a recent interview with Echo Room, Josh2Funny highlighted the impressive financial potential that content creators can achieve, noting that it is possible for them to comfortably afford multiple luxury cars, including up to four Lamborghini vehicles.

Speaking candidly, Josh2Funny emphasised that content creation has become an extremely lucrative field due to the constant demand for fresh and engaging material. “If you want to buy four Lamborghini from content creation, you can buy it,” he said.

His remarks underscore the significant revenue opportunities available in the digital content landscape.

Josh2Funny explained that the continuous consumption of online content is what drives its profitability. “What do you think we are doing in the content-creating industry? Are we joking? You all are with your phones, when you’re in the bathroom, when you’re [using the restroom], you’re consuming our stuff. It’s like pure water,” he stated.

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The comedian further elaborated that businesses or industries that deliver products consumed on a daily basis often see the most substantial financial returns. Content creation, with its high rate of daily consumption by audiences worldwide, aligns perfectly with this model.

“People are out there, consuming our content every time,” he said, reinforcing the idea that the reach and influence of content creators have never been more extensive.

Josh2Funny’s insights reveal why the content-creating industry has become a lucrative career path for many in Nigeria and around the world. With the continuous growth of social media platforms and the public’s insatiable appetite for entertainment and relatable content, creators are finding new and innovative ways to monetize their craft.

This shift not only highlights the potential for significant financial gain but also showcases the evolving landscape of digital media, where influencers, comedians, and skit makers can turn creativity into a sustainable and highly rewarding business.

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NIVEA Black & White Invisible Roll On Deodorant Batch No. 93529610 Not On Sale in Nigeria

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A safety alert notification by the National Agency for Food and Drug Administration and Control (NAFDAC) in Nigeria issued on October 31, 2024, regarding NIVEA BLACK & WHITE Invisible Roll-on deodorant (50 ml) batch number 93529610, in relation to the general European Union (EU) Rapid Alert System for Dangerous Non-Food Products (RAPEX), has come to our attention.

The batch is said to contain 2-(4-tert-Butylbenzyl propionaldehyde (BMHCA).

In a statement on Saturday, in Lagos, Beiersdorf, the owner of NIVEA brand, assured that the “the Batch No. 93529610 in question has not been marketed in Nigeria and thus never recalled”.

According to the statement, Beiersdorf was well informed that “Based on current European legislation, the use of ingredient 2-(4-tert-Butylbenzyl propionaldehyde (LilialTM) in cosmetic products has been banned from the European markets as of March 1, 2022.”

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It acknowledged that “The batch in question, in fact, expired in January 2022 and was hence at the time fully compliant with the then valid European cosmetic regulation.

“As a responsible corporate citizen, Beiersdorf is working collaboratively with NAFDAC to safeguard the interest of the Nigerian consumers by ensuring that our locally manufactured product meets the global quality standards.”

It maintained that “The safety of our consumers remains our highest priority, consistent with our ethical philosophy as a business.”

In pursuit of this commitment, Beiersdorf’s entire NIVEA product portfolio formulations have been reformulated to be Lilial-free formulas in full compliance with the EU Regulation on cosmetic products well ahead of its Lilial ban coming into effect as far back as March 1, 2022. For instance, the formulation of NIVEA BLACK & WHITE Invisible Roll-on deodorant has been Lilial-free since at least 2020 across the globe, including Nigeria.

“Our trade partners were informed ahead of time and reminded of their responsibility to remove the outdated Lilial-containing products within the legal timeframe to fulfill their obligations with the European Cosmetic Product Regulation,” it added.

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Shell, NNPC Ltd, Others Gift Three Universities ICT Centre, Digital Library

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The Shell companies in Nigeria teamed up with the Nigerian National Petroleum Company Limited (NNPC Ltd) and other stakeholders to build Information Communication Technology (ICT) centres and a digital library in Nigerian universities in 2024.

Biztellers reports that it initiative is part of their continuing support for education.

Some of the corporate bodies that executed the projects include the Shell Nigeria Exploration Production Company Limited (SNEPCo) and NNPC Ltd, and the Nigerian Content Monitoring and Development Board (NCDMB).

The benefiting institutions were, the Niger Delta University, Amassoma, Bayelsa State, which got a digital library in April, the Sa’adu Zungur University (formerly Bauchi State University), Gadau in Bauchi State, where an ICT Centre was commissioned in July, by The Shell Petroleum Development Company of Nigeria Ltd (SPDC) as part of the Joint Venture with NNPC, TotalEnergies and NAOC.

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In what would sound like singing-off on the educational intervention initiative for 2024, the Federal University of Technology, Owerri (FUTO), overflew with joy at the unveil of a world-class engineering design studios and ICT hub, courtesy of the SPDC, NNPC Ltd and other Joint Venture partners collaborated with NCDMB.

Reflecting on the three facilities, Country Chair, Shell Companies in Nigeria, and Managing Director, SPDC, Osagie Okunbor, said, “This is Shell working to power lives in Nigeria. The projects have changed the academic and physical landscapes in the three universities and linked the students and lecturers to the global learning arena.”

The facilities at FUTO include two state-of-the-art engineering design studios and a fully furnished 100-seater ICT lecture hall, equipped with computers and smartboards with dedicated power and water supplies. FUTO was selected for the project as part of the “institutional strengthening” in the catchment area of SPDC’s Assa North Ohaji South Gas Development Project. They were launched at a colourful ceremony attended by representatives of the Imo State Government and principal officers of the university.

Imo State Governor, Hope Uzodinma, represented by the Commissioner for Digital Economy and E-Government, Dr. Chimezie Amadi, said, “We deeply appreciate the efforts of our partners in NNPC, SPDC, Total Energies, and NAOC JV, who have invested in the future of Imo State by supporting this critical project. Your commitment to human capacity building aligns perfectly with our goals, and together, we will continue to drive innovation, skills development, and sustainable economic growth for our people.”

Okunbor’s address at the commissioning was read by General Manager, External Relations, Igo Weli, in which he expressed happiness “that the collaboration of SPDC, Joint venture partners, NCDMB, and FUTO has resulted in this successful social investment project that demonstrates our commitment to improving access to quality education for every Nigerian.”

On his part, the Executive Secretary NCDMB, Engr. Felix Omatsola Ogbe, called on Nigerian institutions to domesticate the advancements in AI and other technologies.

“Our AI must understand Igbo, Hausa, Efik, Yoruba, and other local languages,” he said, speaking through Dr. Ama Ikuru, the Director in charge of Capacity Building.

“We must leapfrog the innovations of other nations and become a net exporter of advanced technology to achieve the lofty ideals of Nigerian content development,” he added.

The Chief Upstream Investment Officer, NNPC Upstream Investment Management Services, Bala Wunti, said in his address which was read by the Senior Advisor Stakeholders Relations, Halimat Wilson, “Innovation thrives in an environment where ideas can be freely exchanged and developed. The Engineering Studio and ICT Hub is designed to be such a place where students, researchers, and faculty can collaborate on projects, share knowledge, and push the boundaries of what is possible.

Welcoming guests earlier, FUTO Vice Chancellor, Prof Nnenna Oti, thanked the sponsors of the project “for a landmark donation” to the university.

The Shell Companies in Nigeria have been education since the 1950s through scholarships and other initiatives. These efforts have resulted in the award of thousands of secondary, undergraduate and postgraduate scholarship awards, provision of educational infrastructure and establishment of sabbatical and internship programmes as well as centres of excellence in several universities.

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