Author: Julius Alagbe

Brent Crude Price Drops amidst Uncertainty around Demand Brent crude future drops 33 cents to $45.12 earlier on Wednesday amidst uncertainty around demand. The Organisation of the Petroleum Exporting Countries and allies including Russia (OPEC+) will be meeting today to review adherence to a previously agreed deal on oil output cuts. Oil prices eased on concerns that U.S. fuel demand may not recover as quickly as expected due to stalled talks on an economic stimulus package. Already the stimulus package in the U.S. is overshadowing a bigger-than-expected drawdown in crude stocks. Read Also: Nigeria’s Inflation Rate for July Hits 12.82%,…

Unfair Labour Practices: FG Wades into MTN, Union Dispute. The Federal Government has waded into the trade dispute between MTN Nigeria Communication Plc and Private Telecommunication and Communications Senior Staff Association of Nigeria (PTECSSAN).

FLOURMILL: Bullish Analysts Advised Dividend Seeking Investors to Buy Stock Flour Mills of Nigeria (FMN) Plc. is doing well as the company bolstered earnings and increase market share amidst rising competition for consumers wallets in virus damaged economy. The company’s earnings size has increased significantly due to border closure as substitute products and producers have been locked out from competing in the local space. The stock is recommended to investors on the back of positive earnings outlook in the year as United Capital upgrade price target to ₦25.5. Traded at ₦18.50 on the Nigerian Stock Exchange (yesterday, investors valued the…

Parallel Market Rate Breaks Resistance as USD Exchange for ₦480 Naira depreciates further in the foreign exchange market Tuesday traded at ₦480 to a dollar as against resistance point of ₦475 previously sustained. Analysts said they are unclear if the renewed pressure in the parallel market is linked to speculative positioning ahead of the resumption of international travels on August 29. Meanwhile, the pressure at the foreign exchange market was attributed to a recent report by Reuters which indicated that Nigeria is yet to implement reforms required to access the US$1.5 billion budget support facility from the World Bank. In…

NAICOM Issues Guidelines on Paid-up Share Capital for Insurance Companies The National Insurance Commission (NAICOM) on Tuesday released guidelines for the payment of Minimum Paid-up Share Capital by insurance and re-insurance companies in compliance with the first phase recapitalisation directive deadline of Dec. 31. Mr Pius Agboola, Director, Policy and Regulations, NAICOM, for the Commissioner of Insurance, said that the guidelines were in furtherance to the commission’s earlier circulars dated May 20, 2019, July 23, 2019 and December 30,2019 respectively on the subject matter. Agboola said that the minimum paid-up share capital shall be through any or a combination of…

Terrible Unemployment Rate Suggests Need for Reforms – Analysts Investment banking experts at Chapel Hill Denham Limited has said that weak labour market underlines the need for reform in Nigeria as misery index jerked up. In its macroeconomic note, experts at the investment frim advise policy makers to expand economic growth frontier beyond service to industry and agriculture through ease of doing business reforms and economic liberation policies. Unemployment rate rose by 4% to 27.1% in the second quarter of 2020 from 23.1% in the third quarter of 2018. Reacting to the development, Chapel Hill said the near term outlook…

ARDOVA: Analysts Recommend Buy on Expectation of Sales Recovery. In the first half of 2020, Ardova Plc revenue rose 5% year on year to ₦87.3 billion, which was 2% below Vetiva analysts estimate. Thus, analysts forecasted ₦29.26 price target, though net profit for financial year 2020 is projected to

Oil slips below $45 on-demand concerns, set for weekly rise. Oil dipped below $45 a barrel

Analysts Maintain Buy Rating on Sterling Bank, Set Price Target to ₦1.43

International Breweries Records Worst Q2 Performance after Merger, Dump Analysts say  ·         Stock dangling between analysts’ Buy, Sell Recommendation ·         We posit that the stock is oversold, could present upside opportunities – WSTC ·         Bearish outlook for rest of 2020 is colored by existing industry headwinds – Meristem Pressure on demand for International Breweries (IntBrew) Plc.’s products, a key challenger in the beer market, is affecting the company’s performance scorecard. In the second quarter, IntBrew recorded material decline in sales due to coronavirus outbreak which resulted to economic lockdown. Obvious pressure cast doubt on future outlook in the segment, and this forced analysts to downgrade revenue estimates by…