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CBN to meet with stockbrokers, shareholders on banks’ crisis

By Michael Eboh

Following the  current crisis rocking the Nigeria financial sector, the Central Bank of Nigeria (CBN) has concluded plans to meet with stockbrokers and investors in the Nigerian capital market, next week,  to brief them of the latest development in the banking sector and seek suggestions on ways to move the sector out of its current predicament.

Director-General of the Nigerian Stock Exchange (NSE), Professor, Ndi Okereke-Onyiuke, disclosed this on  Monday, sayimg  after a meeting with the Governor of the CBN, Mr. Sanusi Lamido, shortly before his departure to China confirmed his meeting with stockbrokers and other investors. She disclosed that the Governor of the CBN and the newly appointed Managing Directors of the five troubled banks will be holding a town hall meeting with stockbrokers on Wednesday, September 16, 2009, while Sanusi would announce a date with which he would hold similar meeting with shareholders.
To this end, operators in the Nigerian capital market have tasked the CBN on the need to ensure the growth of the Nigerian capital market through  increased activity and pronouncements that will ensure the return of investors’ confidence.

CBN Governor, Sanusi
CBN Governor, Sanusi

Speaking on behalf of stockbrokers, Mr. Olu Odejimi, Managing Director of Clearview Securities and Doyen of the stockbrokers, disclosed that the stock exchange is the barometer of the economy worldwide, playing a vital role in the growth and development of any economy.He called on Alhaji Aliko Dangote to use his position as the President of the NSE to prevail on the Governor of the CBN, on the need to churn out favourable policies that will contribute meaningfully to the growth of the capital market.
Meanwhile, the bearish trend in the Nigerian capital market, continued unabated, as Guinness Nigeria Plc and Ecobank Nigeria Plc, led 46 other share price losers on the Nigerian Stock Exchange (NSE), as the value of listed equities dipped further by N57.76 billion.

The dip in the market value was occasioned by losses on the share prices of majority of the blue chip companies, causing a decline in the key market indicators, the market capitalisation and All-share index, by 1.15 per cent each.
The index which opened at 21,866.12 points shed 251.97 basis points to close at 21,614.15 points while the capitalisation dropped below the N5 trillion mark, closing at N4.954 trillion from N5.012 trillion at which it opened.

Seven-Up Bottling Company Plc  released its audited results for the year ended March 31, 2009, announcing a 14.04 per cent increase in its turnover, which stood at N34.864 billion, its profit before tax dipped by 10.36 per cent to N2.223 billion, while its profit after tax also depreciated by 4.91 per cent, from N1.608 billion in 2008 to N1.529 billion.

The company proposing a dividend of N1.50 kobo per share.
Guinness Nigeria Plc recorded the most share price loss, dropping by N5.05 to close at N130.05 per share, Ecobank Nigeria Plc followed with a loss of N1.32 to close at N25.25 per share and Lafarge Cement WAPCO Plc dipped by N1.00 to close at N30.00 per share.

Conversely, Benue Cement Company Plc recorded the most share price gain, rising by N2.00 to close at N42.00 per share, Glaxo SmithKline Consumer Plc followed with a gain of N0.84 to close at N20.74 per share and Cement Company of Northern Nigeria Plc garnered n0.47 to close at N10.05 per share.


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