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Stock market closes negative, sheds N418bn

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THE equities market on Monday opened the week on negative note, sheding N418 billion due to losses in largely capitalised stocks.

The All-Share Index decreased by 766.56 per cent, representing a decline of 1.48 per cent, to close at 51,127.38 points from 51,893.94.

Similarly, the overall market capitalisation value lost N418 billion to close at N27.850 trillion from N28.267 trillion.

The market negative performance was driven by price depreciation in large and medium capitalised stocks which are; MTN Nigeria Communications (MTNN), Transcorp Hotels, Africa Prudential, FBN Holdings (FBNH) and Wema Bank.

This week, United Capital Plc said, “we expect mostly bearish sentiments in the market, supported by the illiquidity of the financial system.

“We note that the current bear trend is approaching a turning point, as the Q1, 2023 earnings season draws nearer.

“We anticipate the broad-based return of investors’ risk-on sentiments, which is to be catalysed by declining yields in the fixed-income market.

“The current low prices and valuations will allow BUY-SIDE investors the opportunity to re-enter the market and take positions in fundamentally sound stocks, thus maximising market returns.”

Also, the market breadth was negative as 18 stocks lost relative to 16 gainers.

Ikeja Hotel recorded the highest price gain of 9.48 per cent to close at N1.27, per share.

Transnational Corporation (Transcorp) followed with a gain of 9.47 per cent to close at N1.85 and Consolidated Hallmark Insurance up by 8.77  per cent to close at 62k, per share.

Nigerian Exchange Group rose by 8.16 per cent to close at N26.50, while Jaiz Bank gained 5.68 per cent to close at 98k, per share.

On the other hand, International Energy Insurance led the losers’ chart by 6.98 per cent to close at N1.20, per share.

MTNN followed with a decline of 6.67 per cent to close at N224, while Transcorp Hotels lost 5.8 per cent to close at N6.50, per share.

Africa Prudential declined 5.45 per cent to close at N5.20, while AIICO Insurance  shed 5.08 per cent to close at 56k, per share.

The total volume traded fell by 58.19 per cent to 226.59 million units, valued at N1.57 billion, and exchanged in 4,37 deals.

Transactions in the shares of Transcorp topped the activity chart with 107.21million shares valued at N162.83 million.

Fidelity Bank followed with 39.31 million shares worth N206.01 million, while United Bank for Africa (UBA) traded 22.6 million shares valued at N190.36 million.

Zenith Bank traded 20.61 million shares valued at N521.29 million, while  FCMB Group transacted 12.61 million shares worth N47.83 million

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CHI Limited rewards outstanding trade partners at annual conference

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Chivita|Hollandia (CHI Limited) leading fruit juice and value-added dairy manufacturer in Nigeria has rewarded its long standing distributors at the recently held 2024 Distributor Conference. The event with the theme, “Break Boundaries Exceed Expectations” served as a platform to recognise and reward the exceptional contribution of the distributors and wholesalers who play a critical role in Chivita|Hollandia (CHI Limited) success and business goals for the year.

The  Distributor Conference was held in two sessions. While the morning session featured keynote addresses, industry insights and brand immersion experience, the evening session was a cultural display of elegance and funfair that culminated in the award presentation and recognition of the contribution the trade partners made to the company  in the 2023 year under review.

A key highlight of the event was the award ceremony which acknowledged outstanding trade partners in various regions across the country. The awards recognised commitment, dedication, and outstanding performance in areas of sales growth, brand promotion, and market expansion.

Managing Director, Chivita|Hollandia (CHI Limited), Eelco Weber stated that the company’s success story is incomplete without the strong partnerships it has built with trade partners.

“Today, we celebrate not only the achievements, but the collaborative spirit that has made our growth possible,” he said.

Chief Commercial Officer, Chivita|Hollandia (CHI Limited), Bola Arotiowa in his statement revealed that, the event which was first of its kind will continue to be an annual meeting to enable the company work more closely with its distributors, share insights and action points, help the trade partners familiarise themselves with the company’s goals and objectives for each year, and serve as a driver for  mutual success.

“Our distributors are the backbone of Chivita|Hollandia (CHI Limited). Their relentless efforts in distributing our products, promoting our brands, and expanding our reach across the nation is truly commendable.

“As the bridge between us and our valued consumers, it is very important to reward their hard work and dedication for being an essential part of the Chivita|Hollandia (CHI Limited) family. Together, we will continue to deliver great products to our consumers which in turn will deliver value to them,”  Mr. Arotiowa added.

Speaking at the conference, Chief Executive Officer of Smabirm Nigeria Limited, HajiyaBilikisuSaida, who won the Outstanding Distributor of the Year in North 1 region, and got a reward of two million Naira worth of Chivita|Hollandia (CHI Limited)  productsexpressed delight at the company’s recognition, and stated that the awards served as a way to inspire distributors to do more and put in more effort, which in turn would help both the distributors and the company to grow.

Other outstanding performance distributors of the year rewarded with a two million Naira worth of Chivita|Hollandia (CHI Limited) stock include, Sunny Chuks Limited for East 1 region, MRS FA & Sons Limited for East 2 region, Hussakas Ventures for North 2 region, Rookee 1388 Ventures for Lagos 1 region, Pik N Pil Ventures for Lagos 2 region, FaithJoe Event Management Limited for West 1 region, and Progress Family Nigeria Enterprise for West 2 region.

The annual Distributors Conference aims to strengthen the bond between Chivita|Hollandia (CHI Limited) and its trade partners. This collaborative approach fosters mutual growth and ensures the continued success of the brands in the Nigerian market.

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FG inaugurates Port Harcourt-Aba rail project, train service begins 

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The Federal Government has inaugurated the 6.2 kilometre (KM) Port Harcourt – Aba railway project, marking the start of train operations between Abia and Rivers.

The Minister of Transportation, Sen. Saidu Alkali, who said this at a ceremony in Port Harcourt on Tuesday, noted

that the project was a crucial part of the 1,443km Port Harcourt to Maiduguri narrow gauge rail project.

He said that the Port Harcourt to Aba section of the project was the initial part of the Eastern narrow-gauge railway, aiming to connect five geo-political zones of the country.

“The Federal Government is pleased to inaugurate the train service from Port Harcourt to Aba, a key priority area of President Bola Tinubu’s administration.

“We are grateful to God for the completion of the Port Harcourt to Aba section, which will bring succour to the people.

“The Eastern narrow gauge covers five geo-political zones of the country, including South-South, South-East, North-Central, North- West and North-East,” he said.

Alkali said that following the completion of the first segment and the start of commercial operations, work on the remaining part of the rail line would begin immediately.

“Shortly, we will take a train ride from Port Harcourt to Aba, which means that from today, passenger train service has commenced.

“We will continue the project from Aba to Enugu and from Port Harcourt to both Onne and Port Harcourt seaports for freight services.

“The ministry is currently in discussion with an investor to convert our locomotive from diesel to Compressed Natural Gas (CNG) to reduce transportation cost further,” he said.

The minister assured Nigerians that arrangements were being made with security agencies to ensure adequate security along the rail routes.

He also announced free train rides from Port Harcourt to Aba between May 1 to May 4.

“The train will depart from Port Harcourt to Aba at 8 a.m. daily, while it will leave Aba to Port Harcourt at 3 p.m. daily.

“Full commercial operations will resume on May 7, 2024,” he said.

Muhammad Zakari, the ministry’s Director of Press and Public Relations, said that the project when completed would boost trade, enhance mobility and connectivity between the Southern and Northern part of the country.

He said that the segment of the project was contracted to Messrs China Civil Engineering and Construction Company (CCECC) on Oct. 16, 2020, with a 36-month completion timeline.

“But due to technical and contractual issues, the project commenced in March 2022, involving the construction of modern stations and procurement of new rolling stock.

“The railway line will also connect the seaports of Onne, Bonny, and Port Harcourt to facilitate evacuation of goods and sundry freight through the Eastern corridor,” he said.

Zakari emphasised that upon completing the Port Harcourt to Aba railway, the Federal Government would push CCECC to expedite the completion of the 181km Aba-Enugu section of the project.

He said that he was optimistic that inauguration of the Port Harcourt to Aba rail service would stimulate economic activities between the South-South and South-East zones of the country.

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Fuel Scarcity: IPMAN threatens shutdown over non-payment of bridging claims

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The Independent Petroleum Marketers Association of Nigeria (IPMAN) Depot Chairmen Forum, has exonerated its members from the current fuel scarcity in the country.

According to IPMAN, the is caused by its inability to source petroleum products.

The IPMAN Depot Chairmen Forum also threatened to withdraw its services over non-payment of N200 billion bridging claims by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to its members, since 2022.

Alhaji Yahaya Alhassan, the Chairman, of the Forum said this while briefing  newsmen on Tuesday in Abuja.

Alhassan said the Nigerian National Petroleum Company Limited (NNPC Ltd.) was the sole importer of the product, but the marketers could not source products from NNPC Ltd. deport, rather from the private depots at high rate.

“We cannot buy fuel from the private depots at N950 and transport the product from Lagos to the North and other parts of the country with N2 million and still sell it at N900 or N1, 000.

“It is expedient for us to state that we are more pained by the non-availability of petroleum products in the country, which has given rise to another round of untold hardship for Nigerians.

“Contrary to claims that IPMAN members are hoarding Premium Motor Spirit (PMS) known as fuel, we would like to categorically state that PMS scarcity is wholly triggered by inability to get fuel from NNPC and not IPMAN,’’ he said.

Meanwhile, the NNPC Ltd. Chief Corporate Communications Officer, Olufemi Soneye said the disruption was due to logistical issues which had since been resolved.

“We currently have an availability of products exceeding 1.5 billion litres, which can last for at least 30 days. Unfortunately, we experienced a three-day disruption in distribution due to logistical issues, which has since been resolved.

“However, as you know, overcoming such disruptions typically requires double the amount of time to return to normal operations.

“Some folks are taking advantage of this situation to maximise profits. Thankfully, product scarcity has been minimal lately, but these folks might be exploiting the situation for unwarranted gain,’’ Soneye said.

He however, said the lines would clear out soon.

On the non-payment of bridging claims, the IPMAN forum said it was distressed and depressed by the laidback attitude of the NMDPRA towards the survival its member’s businesses, arising from its refusal in paying the claims.

“It is with deep frustration that we have assembled here today as the IPMAN Depot Chairmen Forum. It is also disheartening to note that some of our members have completely shut down businesses and retrenched employees.

“As businessmen and women, our members acquired bank loans to keep their fuel retail outlets running on a daily basis across the nooks and crannies of Nigeria in order to serve the teeming population of Nigerians,’’ Alhassan said.

He recalled that Sen. Heineken Lokpobiri, Minister of State Petroleum Resources (Oil), at a stakeholders meeting in February mandated the NMDPRA management to clear the entire debt in 40 days.

“However, today, we have crossed the 40 days’ time lapse given to the NMDPRA to clear the debt, and it is shameful to state that only the paltry sum of N13 billion has been paid, ignoring minister’s directive.

“We are not happy with the indiscriminate increment in the issuance and renewal of Sales and Storage Licence, by the NMDPRA, and the subsequent delays in acquiring the licence, which our members are recently subjected to.

“We are also calling on President Bola Tinubu to look into this unwholesome figure which is highly detrimental to our business and reverse it forthwith, as it is bound to impact negatively on the masses.

“We are poised to take far reaching decisions that may cripple the supply and sales of petroleum products across Nigeria if our demands are not met within the shortest period of time.

“We are collectively prepared to withdraw our services, shut down every single outlet, and suspend lifting of products forthwith till our demands are fully met, and the consequences will be terrible.

“We call on our members to however remain resolute and law abiding, even as we draw close to the immediate ultimatum for our demands to be met by the NMDPRA,’’ the chairman said.

Reacting to the IPMAN’s claims, the Acting Head, Corporate Communications, NMDPRA, Seiyefa Osanebi said the bridging claims payment was ongoing.

“The bridging claims payment is always an ongoing process,” she said.

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