News Highlights

[Stockbear]

The only way is up!

The Punch
SEC approves ACTIS’ investment in Diamond Bank
By Festus Akanbi
Published: Monday, 23 Apr 2007

Diamond Bank’s bid to effect a strategic alliance with a foreign investment group received a landmark boost on Friday, following the approval by the Securities and Exchange Commission of the injection of $133m (N17bn) by Actis Capital LLP in the bank.

In accordance with the stipulated guidelines to consummate the investment, the bank held a completion board meeting for the placement of 1,812,526,316 ordinary shares of 50 kobo each at N9.50 per share to Actis capital.

SEC’s approval of the offer documents was conveyed in a letter dated April 19, 2007, and signed by the Director-General of the regulatory body. The letter reads in part; “We write with reference to your application in respect of the above subject matter and are pleased to convey the commission’s approval of the offer documents.

http://www.punchontheweb.com/Articl....00704231385934

[Stockbear]

Will there be a stampede for bonus shares? May be, just may be they decide to make investors truly happy with more than capital appreciation!

The Punch
Zenith Bank emerges bank with highest capitalisation
By Goddy Egene
Published: Monday, 23 Apr 2007

Zenith Bank Plc has emerged as the bank with the highest market capitalisation at the stock market with N435bn. Market capitalisation is a product of the market price of a company and its paid up shares.

With a paid up shares of 9.3billion shares at a market price of N46.80, Zenith Bank has become the bank with the highest market capitalisation.

First Bank of Nigeria used to lead the market in this regard before its price was frozen at N40.40 due to its application to raise about N99.3bn from the market via a hybrid issue.

Increased demand for Zenith Bank’s shares pushed the bank to become the highest priced bank stock at N42 on April 11.

Consistent demand, induced by an impressive nine months result, further lifted the equity to close at N46.80 on Thursday with some market operators saying it would rise above N50 before its year end June 30, 2007.

http://www.punchontheweb.com/Articl....00704231325098

[bwalaman]

This makes First Bank IPO even more attractive...

[Stockbear]

Something else to invest in?

The Punch
Law Union stock rises by 180% in 3 months
By Sunday Ojeme
Published: Monday, 23 Apr 2007

Law Union & Rock Insurance Plc has made good its promise to reward investors during its public offer.

So far, it has garnered a whopping 179.8 per cent rise in the value of the stock in the last three months.

The company’s stock, which traded at N1.58 kobo as at January 4, 2006, closed at N4.42 as at April 19, 2007, representing a capital gain of N2.84 or 179.8 per cent.

A statement on Saturday said the appreciation recorded by the company’s stock on the capital market was due to investors’ confidence in the Law Union brand, which has been a major name in the business of risk underwriting.

Law Union & Rock Insurance is one of the insurance firms recently re-certified by the National Insurance Commission to carry on non-life underwriting.

The re-certification followed a successful recapitalisation during which the insurer went to the market to raise more equity funds to beef up its capital base.

http://www.punchontheweb.com/Articl....20070423132714

[Stockbear]

Vitafoam making waves.

Guardian
23 April
Vitafoam eyes N5b asset base
By Chika Ezeokoli

THE board of directors of Vitafoam Nigeria Plc has set out plans to ensure that the company increase its assets to N5 billion by September this year, after implementing its phased replacement of plants and machinery.

The Executive Director of the company, Mr. U. Iwegbulem, said Vitafoam has about N6 billion out of N10 billion market value of foam industry in the country, adding that the company already has about N4 billion assets in the first quarter of the year.

Speaking at the courtesy visit of stockbrokers to Vitafoam upgraded factory in Lagos last weekend, he noted that the first set of the plants and machinery have been installed, also hoping that the remaining ones would be installed by the end of this year.

According to the director, in line with the vision of the company, Vitafoam has established full-fledged sales and marketing departments with a view to achieving an effective consumer pull and push strategy.

http://www.guardiannewsngr.com/capital_market/article01

[Stockbear]

Transcorp: Idea behind it, brilliant! People/news surrounding it, crap!
Let's hope that Transcorp comes through for those that invested in it.

The Punch
23 April
We will save Nigeria $600m annually – Transcorp
Atser Godwin

TRANSNATIONAL Corporation Plc has said it will link up with foreign investors to raise the local production of rice and thereby save Nigeria $600m in import bills each year.

He said the savings would be made from $600m that would have been spent on the importation of rice each year.

The Group Executive Director, Transcorp, Mr. Nicholas Okoye, dropped the hint while addressing members of the Nigerian-Britain Association in Lagos.

He said via a statement obtained on Sunday that one of the company’s strategies was to substitute the importation of foreign goods with local production.

Nigeria, Africa’s most populous black nation and the largest exporter of crude oil to the United States of America, spends millions of dollars on the importation of rice annually.

“With foreign partnership, Nigeria’s importation to the tune of $600m annually on rice alone will be checked in the short-term even as Africa’s importation of over $150bn in consumer products alone will be met through Nigeria,” Okoye said.

To encourage domestic cultivation of rice, the Federal Government has put in place incentives for farmers with a loan package of N50bn.

[Artem Zakharchenko]

So, what do you think about forecast for UBA?

[Stockbear]

@ Artem Zakharchenko - Please visit the "banking Stock" thread under the title UBA Hybrid Offer, for responses to your question.

[Stockbear]

Is this feasible?

Vanguard
Obasanjo calls for common currency in Africa
Posted to the Web: Monday, April 23, 2007

President Olusegun Obasanjo has called for the introduction of a common currency in Africa to enhance trade relations in the continent. Speaking while inaugurating the Enugu branch of the Central Bank of Nigeria (CBN) today in Enugu State, Obasanjo said this had become necessary in order to eliminate trade barriers created by the absence of a common currency.

According to the president, Nigeria has a unique role to play in order to achieve this objective not only in West African sub region but also in Africa. He said for Nigeria to attain such a level, it must advance to a Gross Domestic Product (GNP) of about 10 per cent per annum. “We may even have off shore banking facilities and we may be growing at a rate that is reckoned with among the comity of nations,” Obasanjo stated.

http://www.vanguardngr.com/articles/...b223042007.htm

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[Stockbear]

Transcorp is refusing to go away and therefore here to stay! Let's keep an eye (just one eye) on it

Vanguard
Transcorp is a public company that no government can fold up
Franklin Ali
Tuesday, April 24, 2007

The Nigeria-Britain Association (NBA) said that it is leaving no stone unturned in its march towards making qualitative and positive impact on the national economy. This it carries out by providing platforms for institutions to interact with the larger society. In one of such forum Transnational Corporation of Nigeria Plc (Transcorp) recently highlighted its operations, vision, mission and goals as well as explaining grey areas in the corporation activities.

.....This, according to Okoye, is to be achieved by substituting the country’s importation with local production by partnership with foreign producers to have production plants in Nigeria.

....Transcorp he disclosed will not only ensure steady and continuous appreciation of the naira against other international currencies but will make assist in checking poverty in the continent.

....Responding to a question on the political undertone of the corporation, that it is owned by President Olusegun Obasanjo, the GED noted that government’s involvement was just the provision of an enabling environment for the smooth taking off of the project.

....Responding to the question that a new government might kick out the corporation, he said the corporation is a public property listed on the floor of The Nigerian Stock Exchange whose shareholders also include institutional investors in Nigeria, South Africa, Europe and America, and that no government will do that as TransCorp is a transnational corporation with root in the private sector.

http://www.vanguardngr.com/articles/...624042007.html

[Stockbear]

Nigeria is on the rise and in the near future will be the country all nations flock too for shelter and prosperity. Watch this space!

Vanguard
Facts on the fall of the dollar, US domination of the world economy may be at stake

Tuesday, April 24, 2007

The US dollar has continued its recent decline, hitting fresh lows against the pound.
Sterling hit a 14-year record against the dollar on Tuesday above $1.99 on currency exchanges almost breaking the key $2 rate. The downward pressure on the greenback looks set to continue, with wide_ranging consequences at home and abroad, for both companies and consumers.

How will the dollar’s slide affect ordinary people?
Back in the 1960s when governments, not markets, decided the fate of currencies, Britain once lowered the pound’s exchange rate by 18 per cent while telling the public that “the pound in your pocket” had not been devalued. Of course it had. The purchasing power of the pound was eroded as the cost of imported goods went up, although British firms were able to sell their goods abroad at more competitive prices.

http://www.vanguardngr.com/articles/...524042007.html

[Stockbear]

Dangote at it once again!

Vanguard
Dangote offers $30m wager for work on refinery, IPP
By Hector Igbikiowubo
Tuesday, April 24, 2007

DANGOTE Exploration Company, subsidiary of the Dangote Group has offered the Federal Government a $30 million wager on the of multi-billion dollar development of 300,000 barrels per day petroleum refinery and 5000 Megawatts power station, in consideration for ‘rights of first refusal’ (ROFR)over two oil blocks in the 2007 licensing round.

....The Minister disclosed that Dangote Exploration Company had while offering the wager pointed that it intends to commence serious work on both projects within 15 months, adding that it was prepared to forfeit the $30 million wager if it fails to commence work within the period.

http://www.vanguardngr.com/articles/...124042007.html

[Stockbear]

See Thread on "Transcorp IPO"

Guardian
24 April 2007
Transcorp to contribute lion share of $50b investment in oil, gas sector

[Stockbear]

OBJ predicted a "landslide victory" Now he has it! Point of correction: it was an "earthquake victory" When the the PDP(Power to Deceive People)' party ruled the Earth the people of Nigeria Quaked in their shoes! All said and done, we are at the mercy of the Power to Deceive People government! Transcorp is DEFINITELY here to stay!!!

ThisDay
Is Nigeria Still a Democracy?
By Sebastian Spio-Garbrah, 04.23.2007

If the very basic definition of a democracy is a government that exists by the consent of the governed, then the just-ended general elections in Nigeria, which brought the country a new government, also produced a highly questionable democracy. And while this question may not seem entirely relevant to an Emerging Market (EM) investor in Nigeria now, it is likely that in coming months, as President-elect Musa Yar’Adua moves to consolidate his power amid likely strident challenges to his rule by the opposition, the economic implications of a potential slide toward a kind of "democratic authoritarianism" will become more evident. In the short term, the likely post-election ultra dominance of the ruling party of the country’s politics may actually improve overall economic performance as internal opposition to government policies will be quelled.

http://www.thisdayonline.com/nview.php?id=76272

[Stockbear]

We will get there some day!

Sun News
Conflicting signals on power sector reforms
Editorial
Tuesday, April 24, 2007


Two related developments in the power sector somewhat illustrate the depth of confusion that has been the hallmark of the out-going administration of President Olusegun Obasanjo in the matter of its responses to the current energy crisis.

The first is the reported directive from the President to the Minister of Energy, Edmund Daukoru, ordering the concessioning of the 1320 MW Egbin thermal plant to the state-owned Korean Electricity Power Corporation (KEPCO) under a Rehabilitate Operate and Transfer (ROT) arrangement. The President reportedly directed the minister to set up a committee comprising representatives of the Energy Ministry, the Bureau for Public Enterprises (BPE), the Power Holding Company of Nigeria (PHCN), the Egbin Power Plc and KEPCO, to work out the details of transfer. The arrangement would see the firm assume the responsibility for the turn- around of the ailing plant, and thereafter manage it for a five-year period.

The other development is the reported rejection of the 18 successor companies of the PHCN under the privatization plan by the president. The companies were carved out by the BPE as business units, ostensibly to make for compact, manageable process of sale. Directing the BPE to prune the number to a more compact figure, the president described the 18 companies as “unwieldy”.

http://www.sunnewsonline.com/webpage...4-2007-001.htm

[Stockbear]

Dangote in the limelight once again!

BusinessDay
April 23rd, 2007
Why cement is costly - Dangote

Increased in demand of cement in Nigeria and ever increasing operational costs are the reasons for the recent high price of cement in Nige