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Anheuser-Busch InBev (AB InBev), the world’s largest beer maker and parent company of Ilesa, Osun State, Nigeria based International Breweries Plc on Thursday said its new $250m brewery in Sagamu, Ogun State, is billed to commence production in the middle of this year. Head of its Africa operations, Ricardo Tadeu told Reuters that “for the long term, in five to 10 years, Africa will be an important growth driver for the global company.” He declined to give the plant’s production capacity, but said the company was upbeat about growth prospects in Africa’s most populous nation and elsewhere across the continent. “We have a clear strategy to keep a good level of growth in Africa based on developing our brands in different segments of the market,” he said, adding that growth in African countries, excluding South Africa, was a “healthy growth rate in the mid-teens”. The Belgium-based brewer said on Thursday it expected revenue and core profit (EBITDA) to grow strongly again in 201...

NSE INDICATORS SEEK DIRECTION, AS VOLATILITY, PORTFOLIO REBALANCING, PROFIT TAKING LINGER The stock market on Thursday was lower on a mixed session that was volatile as traders took profit from short positions in rebalancing their portfolios and positioning. The mixed sentiments followed the indifference among market players to the N8.6tr 2018 budget estimates submitted to the National Assembly and the downgrade of Nigeria’s sovereign rating by Moody’s. The seemingly weak speculation at this point should not shake you out of position as major factors to force prices to another lower lows are currently absent in the market except for market sentiment to different news or policy statements and action of the government or its agency. The smaller the range, the less the volume, the higher the possibility that the uptrend will continue since the recent strong resistance level have been broken, waiting for more volume for continuation of uptrend. The retention of Nigeria in the MSCI ...

INVESTORS UNDERTAKE MONTH-END PORTFOLIO RE-BALANCING, CRUNCH EMERGING ECONOMIC, COMPANY DATA Nigeria’s stock market on Thursday had a sloppy, but mixed session that continued to be highly volatile owing to month-end activities as investors watch out for economic date for direction. The mixed session was also despite the influx of more impressive earnings reports, as market indicators closed lower as traders booked profit after the few day of relatively weak rally, while cashing out capital gains in some stocks that had appreciated so far in this season. The market, nonetheless, remained within the bullish channel and above 20DMA but on a border line of breaking down the lower line of the channel and the moving average which will be a function of market forces this morning as trading opens. Should the earnings surprises continue and more of better numbers are released the bearish sentiment that reached 61% on Thursday would expectedly change. Thursday started out with a...

INVESTORS SEEK CLEARER PICTURE OF ECONOMY, MARKET, AMIDST HOPE FOR MORE FINANCIALS Trading activities on the Nigeria Stock Exchange (NSE) last week remained highly volatile and bearish, halting two weeks of bull transition, despite the positive economic data and increasing number of good corporate earnings released to the market during the period. This may not be unconnected to the mixed sentiments as traders and investors positioning amidst persistent profit taking, irrespective of the impressive Q3 numbers, especially from blue chips companies. The positive Purchasing Managers Index (PMI) for the month September that was above 55 points confirmed the increasingly high productivity level in the real/manufacturing sector, added to the slow decline in inflation rate, relative stability in the Naira’s exchange rate and the 0.55% growth in the nation’s Q2 GDP rate that announce the exit of out of nation economy from recession. The corporate score-cards released have also confi...

DANGCEM, ZENITH Q3 NUMBERS INSPIRE CAUTION, AS NIGERIAN BOURSE IN SEARCH OF DIRECTION It was yet another highly volatile trading session on the Nigerian Stock Exchange on Thursday, just as activities were mixed following which the benchmark All-Share index gyrated in a north and south movement and finally closed the day marginally higher. There was however an improved buying pressure, despite the low volume traded with a flat market breadth that revealed indecision on the part of market players which slowed down the profit taking as more earnings hit the market with impressive numbers. The day started out with a slight movement down to the support level in the mid-morning, before rallying at midday, as demand for healthcare, consumer goods and banking stocks increased after Dangote Cement and Zenith Bank released their Q3 earnings reports that beat expectations. Dangote Cement and Zenith Bank reported Q3 Earnings Per Share (EPS) of N11.30 and N4.11 respectively, improving ...

TRADERS AGAIN TAKE PROFIT, AMIDST WAIT FOR MORE Q3, GDP NUMBERS Trading on the floor of the Nigeria Stock Exchange (NSE) on Tuesday continued its volatility to close on a negative note, after losing almost all its gain in the previous three trading sessions, on the strength of profit taking by traders which is expected in any earnings reporting season, especially when the growing number of market players are short-term investors, including retails players. The down market coincided with the release of September inflation rate by the National Bureau of Statistics (NBS) which dropped slightly for the eighth consecutive month to 15.98% from 16.01% in August. The marginal decline in the month, which coincides with the harvest period, is of concern to investors, suggesting that the celebrated success in agricultural sector is still shaky, meaning that either there is poor harvest or infrastructure like roads to transport farm produce to markets in the city centre. This has often...

VOLATILITY MAY PERSIST, AS INVESTORS, SPECULATORS POSITION FOR Q3 EARNINGS SEASON ·          TRADERS RETURN AHEAD OF SEPTEMBER INFLATION, Q3 GDP DATA Trading on the Nigerian Stock Exchange (NSE) started out the week Monday on a positive note to consolidate the four trading session of up market that supports another round of rally despite the day’s mixed technicals as stocks make new 2017 highs on high volume with investors and traders positioning for Q3 numbers. The NSE’s benchmark index had an interesting but volatile Monday. It began slightly down in the early hours of the trading session, but had a really strong rally from mid-morning to midday and by the afternoon where it hit intraday high of 36,888.73 and low of 36,320.29 points. This was the support level for the day after breaking the resistant level of 36,640.34 to close high for the day. The market uptrend momentum continued on the strength of price appreciation in the me...