Vanguard Markets, September 15, 2014 edition

Vanguard Markets | Monday, September 15, 2014 | Issue 010

JAYWALKER

Banks picking the macroeconomic agenda’s tab ! page VM2 Segun Agbaje, GT Bank CEO, one of banks to have successfully adjusted to regulatory shifts

FOREIGN INVESTMENT INFLOWS

The high rollers come to town

‘See that over there on the horizon, Mr. President? Our dreams go further,’ Alhaji Aliko Dangote, chairman of Dangote Cement, says as he takes President Goodluck Jonathan on a tour of the Obajana Cement Plant, Kogi state. The company attracted $300m from the Investment Corporation of Dubai last week.

Source: Africawatchonline.com

HE PAST TWO T weeks have been marked by firsts. The market is hoping they will not be the last. On September 4, Qatar National Bank bought a 12.5 per cent stake in Ecobank Transnational Inc. (ETI) for $290 million from the Asset Management Company of Nigeria in a move that caught many unawares. The deal is the first investment by the largest Arab lender in sub-Saharan Africa.

It is already present in Egypt, Libya, Mauritania, South Sudan, Sudan and Tunisia.

Before the market could catch its breath, news filtered a few days later that the Investment Company of Dubai,

one of the emirate’s sovereign wealth funds, had signed a deal with Dangote Cement to acquire 243.54m shares, the equivalent of 2.6 per cent in the country’s largest cement producer, for $300 million. It is the first deal on the continent for the fund since it was founded in May 2006.

There are those who see the deals as an indication that the pre-crisis good times are here again. They have raised hopes that a spout of new money is about to be uncorked. Sceptics, on the other hand, caution that two deals, no matter the size, do not a boom make.

For the two investors, these deals have strategic connotations. QNB has an ambitious

Its relatively new & efficient plants coupled with pioneer tax status in Nigeria, have enabled Dangote Cement to post net profit margins above 50% for the past few years.

- Imara Africa plan to become the biggest bank in Africa and the Middle East by 2017. The Ecobank deal fits right into that strategy by giving it exposure to 36 SSA countries in one coup.

With ICD, it signals the emirate’s intention to get a foothold in Africa’s biggest economy.

Only a few days before the deal, it signed a Memorandum of Understanding with Arik Air ‘to

develop and expand their existing commercial relationship and explore further areas of cooperation.’ Where this cryptic language will lead to is anyone’s guess but an equity investment in liquidity-challenged Arik is not an outlandish thought.

Dangote Cement is targeting to expand its Africa-wide capacity from its current 35 metric tonnes per annum (MTA)

Inside This week Spotlight is on the Onyekachi Onubogu, executive director, Promasidor.

! Page VM6

to 60 MTA by 2018. It controls 62 per cent of domestic cement production, and operates in 12 other countries with plans to open plants in 4 others by the end of the year. Furthermore, ‘its relatively new & efficient plants coupled with pioneer tax status in Nigeria, have enabled Dangote Cement to post net profit margins above 50% for the past few years aided by increasing sales volumes on the back of additional capacity and the rise in demand for cement in Nigeria,’ write analysts at Imara Africa Securities.

There are analysts who induce that the flood of Middle Eastern cash is dumb money taken in by the spiel about Nigeria’s potential in spite of the Boko Haram insurgency in the north-eastern part of the country, and a buffeted middle class strained by the government’s focus on 2015 elections. They are mistaken.

The two companies are listed on the NSE and enjoy a transparency in valuation as seasoned stocks. Ecobank is one of the most researched banks on the continent, bar none, with a long record of savvy investors. QNB was advised by Morgan Stanley, a Wall Street bank reputed for its painstaking diligence.

On its side, Dangote Cement’s register parades many A-list shareholders including Fidelity Management (16.3m shares), Morgan Stanley Investment Management (9.55m shares), JPMorgan Asset Management (UK) Ltd (6.68m shares), Goldman Sachs Asset Management Intl. Ltd.

! Page VM2

FOREX RATES

$/N

155.24

155.4 155.3 155.2 155.1 155.0 Fr

Mo

Tu

We

£/N

Th

Fr

252.0011

254.0 253.0 252.0 251.0 250.0 Fr

Mo

Tu

We

Euro/N

Th

Fr

200.8495

202.0 201.5 201.0 200.5 200.0 Fr

Mo

Tu

We

CNY/N

Th

Fr

25.304

25.40 25.30 25.20 25.10 25.00 Fr

Mo

Tu

We

Th

Currency

Central Rate

SWISS FRANC

166.0854

YEN

1.4472

CFA

0.2959

WAUA

232.0247

RIYAL

41.3885

DANISH KRONA

26.9771

SDR

232.8600

Fr

FIXED INCOME & FOREX

FGN Bonds & TBills 120B

FGN Bonds Treasury Bills

NITTY

1M 2M

12.00

3M 6M

9M 12M

NIBOR

O/N 1M

15.00

3M 6M

FX ($/N) 163.0

96B

11.60

14.00

162.6

72B

11.20

13.00

162.2

48B

10.80

12.00

161.8

24B

10.40

11.00

161.4

0

29/08

03/09

08/09

11/09

10.00

29/08

03/09

08/09

11/09

10.00

29/08

03/09

08/09

11/09

Bid Ask

161.0

29/08

03/09

08/09

11/09 Source: FMDQ

VM2

BUSINESS

VM | Monday, September 15, 2014 | Issue 010

JAYWALKER

Banks picking the tab for the CBN’s macroeconomic agenda Return on Average Equity (RoAE) for Sub-Saharan Africa banking systems 50% 45%

44%

45%

47%

Nigeria Kenya Ghana

40% 35% 29%

28%

30% 25%

26% 20%

20%

20%

26%

18%

18%

15%

Obiora Onyeaso obiora.onyeaso@customsstreet.com

HEN ANALYSTS W at Renaissance Capital, an investment bank, speak, the market listens. Last week they spoke.

The firm has gained a wide fan base for the relevance of its research reports, and for want of a better word, speed at which its analysts churn them out. They excel in dicing up events and trends into easily digestible and actionable chunks for readers. On Thursday, it published a report, Nigerian banks: The cost of macro stability that had this as its problem statement: ‘why have Nigerian banks struggled to deliver returns comparable with those of their sub-Saharan Africa banking peers over the past few years?’

The answer, in their view, is simple. Taking a sampling of key banking regulations such as capitalization ratios, net open position limits, cash reserve ratios, and liquidity ratios, it will be seen that Nigerian banks operate in what is, arguably, the toughest op-

10% 5% 0%

4%

2011

2012

2013

1H14

Data visualisation by Publican Media Source: Renaissance Capital

The paradox is that these measures, introduced during the governorship of Sanusi Lamido Sanusi at the Central Bank of Nigeria, to restore investor confidence, are now eating up returns. erational and regulatory environment on the continent.

The paradox is that these measures, introduced during the governorship of Sanusi Lamido Sanusi at the Central Bank of Nigeria, to restore investor confidence, are now eating up returns. This is a classic case of you cannot eat your cake and have it.

Other than this, the CBN’s actions were driven by the dictates of its macroeconomic management mandate. Since the crash, the CBN has been singularly focused ‘on ex-

change rate stability and low inflation using a combination of measures, including hiking the MPR and CRR, tightening banks’ net open position limits and introducing multiple operational measures to keep the exchange rate in check,’ writes RenCap. This has been largely successful. In comparison with its continental peers, since 2009 the naira has depreciated by 9% against the dollar, while the Kenyan shilling fell 17 per cent, South African rand dropped 45 per cent, and

the Ghanaian cedi lost 166 per cent.

On the inflation score, the country’s inflation fell from 14.3 per cent in January 2010 to 8.3 per cent in July 2014. In Ghana, inflation climbed from 10 per cent in January 2013 to 15.3 per cent in July 2014, and in Kenya, it leapt from 4.5 per cent in January 2010 to 8.4 per cent by August 2014.

The CBN’s macroeconomic successes have come at a cost for Nigerian banks.

Watching all these big and small regulatory mice nibbling away at banks’ profits, the casual observer is tempted to agree with Ladi Balogun, group chief executive of FCMB that ‘banking will become a utility – very useful and helpful to people with stable but thin margins.’ His advice? ‘Non-bank financial services sector is where the

3 Years of Material Regulatory Adjustments J 2014 D N O S A J J M A M F J 2013 D N O S A J J M A M F J 2012 D N O S A J J M A M F J 2011

CRR on public sector deposits increased from 50% to 75% In line with Pillar I of the Basel II Accords, CBN issues guidance notes specifying how banks should quantify the risk weighted assets for the purpose of determining regulatory capital Cashless Nigeria policy extended to Abia, Anambra, Kano, Ogun and Rivers States, and Abuja FCT Banks sign a Trust Fund Deed with CBN to contribute 0.5% of their total assets and a further 0.5% of 33% of their off balance sheet items at the end of each year to an AMCON sinking fund. Previously, they contributed 0.3% on total assets only Imposition of 50% CRR on public sector deposits to be applied on federal, states’, and local governments’ deposits as well as on those of ministries, departments, and agencies Gradual phase-out of cost of transfer (COT) applied to customer-induced debit transactions from N3/N1,000 in 2013, N2/N1,000 in 2014, N1//N1,000 in 2015 and free of charge from 2016 CRR increased from 8% to 12% Introduction of service charges as part of the implementation of a Phase 1 of Cashless Nigeria policy with Cashless Lagos CRR raised from 4% to 8% Cash reserve requirement (CRR) increased from 2% to 4% 24 banks sign MoU with CBN to contribute 0.3% of their total assets annually into a Banking Sector Resolution Cost Trust Fund. Each bank’s value of assets is calculated as at the date of their audited financial statement for the immediate preceding financial year

Source: Central Bank of Nigeria

growth will be, although initially at a much smaller scale in areas such as microfinance, asset management, broker-

age, advisory services, capital markets, and insurance,’ he divined. He is not far from the truth. ;

poration, South Africa’s biggest pension fund manager. In April 2012, it paid $250 million for 3.125m shares in ETI giving it a stake of 19.58 per cent. It is the bank’s largest shareholder.

One year later, in June 2013, it paid $289.3m for 1.5 per cent of Dangote Cement. PIC says that it is ready to invest its war chest of $7 billion in more listed stocks in the consumer, infrastructure, telecommunications and agribusiness sectors across the continent, and Nigeria is a prime destination.

This is not to say that the money will keep rushing in.

Only last month, Actis, a panemerging markets private equity firm, exited its investment in Diamond Bank. The London-based firm acquired 19.1 per cent of the Nigerian lender for $134 million in 2007. In July, Emerging Capital Partners, a buyout firm that has raised more than $2 bil-

lion for investments on the continent, said that its Africa Fund II was actively ‘exploring’ the sale of C-Re Holding Ltd., which owns about 50.6 percent of the Continental Reinsurance, an NSE-listed insurance company. A month earlier, in June, reports surfaced that Mubadala Development Company, an Abu Dhabi sovereign wealth fund, is seeking a buyer for its 30 per cent stake in Etisalat Nigeria. Mubadala bought its GSM license for $400 million in 2008.

There is the likelihood that other big rollers are watching on the side lines to see what happens with the Nigerian elections in February next year. If the country gets its presidential election slated for Valentine’s Day next year right the love affair is sealed. The only difference will be that the bride price, read valuations, would have gone way, way up. ;

FOREIGN INVESTMENT INFLOWS

The high rollers come to town W Continued from Page VM1 (4.74m shares), and BlackRock Fund Advisors (4.33m shares). If you can fool them, you can fool anyone.

Other deals in the offing include an option for Nedbank, a South African lender, to take a 20 per cent stake in ETI by November 25. The potential deal is valued at more than $500 million. Nedbank has an option to convert a $285m loan made in 2011 to ETI into an 11 per cent stake. It can also take up a second subscription right that would give it an additional 9 per cent in the pan-African bank. This would catapult it to ETI’s biggest shareholder.

There is speculation in some quarters that with QNB’s entry into Ecobank’s share register, Nedbank could be reluctant to proceed. This is unlikely. Nedbank would be pressed to find another lender that would al-

Biggest single day trades on the NSE (N) MANSARD 12B UBN 16B

DANGFLOUR 30B UBN 9B

2012 Source: Nigerian Stock Exchange

low it grow its footprint on such a scale across Africa. A possible candidate is the United Bank for Africa. It has operations in 19 African countries. But this would be a costly, farfetched and lengthy process fraught with significant risks.

Compared to its SA peers, Nedbank generates only 3 per cent of its income outside South Africa. Standard Bank, Barclays, and FirstRand make 30 per cent, 20 per cent, and 9 per cent of their earnings outside South Africa. ‘If we execute against our

DANGCEM 46B

DANGCEM 9B DANGCEM 49B

ASHAKACEM 41B ETI 35B

DANGCEM, 12B 2013

2014 Data visualisation by Publican Media

equity with Ecobank that will leapfrog us into a whole new world,’ said Graeme Auret, managing executive of corporate banking at Nedbank.

Moreover, the QNB deal is a vote of confidence in the leadership of Albert Essien, the ETI chief executive, and in consequence, Nedbank’s wisdom in exercising the option.

It is almost impossible to see Nedbank walking away with all these considerations in mind.

One likely entrant to the Nigerian deal space is Norges

Bank Investment Management, Norway’s $893b sovereign wealth fund. In June, Yngve Slyngstad, the fund’s chief executive, promised that NBIM will ratchet up its exposure to ‘frontier markets’ as it seeks to include ‘quite a few countries where we’re not invested in Africa.’ Presently, it has investments in South Africa, Egypt, Morocco, and Kenya. None is reported in Nigeria.

A recurring presence in both ETI and Dangote Cement is Public Investment Cor-

MARKET DATA

VM | Monday, September 15, 2014 | Issue 010

VM3

TRADING UPDATE Declined Unchanged Advanced

SECTOR PRICE CHANGES - SEPTEMBER 08-12, 2014

MARKET REVIEW– SEPTEMBER 08-12, 2014 Analyst quote of the week: The Nigerian banking industry will be driven by a totally new set of dynamics as we proceed further into 2014 and beyond. The period of “easy money” may have finally come to an end, as banks are forced to design ingenious ways to ride the tide and remain competitive within the industry’ – Extract from Afrinvest 2014 Banking Sector Report: Navigating Growth in a Challenging Environment Last week the All-Share Index ↓1.18% shed more weight than it had in the preceding two weeks aided in the drop by the Industrial index ↓1.61% and the Consumer Goods index ↓0.49%. On the plus side, the Oil & Gas index ↑1.8%, and the Banking index ↑1.92%, put up a good showing.

In total, 23,679 deals ↓7.47% were done for the trading of 3,046,489,204 shares ↓7.10% for N106,701,101,825.97 ↑102.06%.

At the head of the table were Ikeja Hotel ↑42.00%, Premier Breweries ↑33.12%, Vono Products ↑20.69%, Union Bank of Nigeria ↑19.98%, FTN Cocoa Processing ↑9.62%, A.G. Leventis ↑8.57%, Ecobank Transnational Inc. ↑8.17%, Dangote Sugar Refinery ↑7.98%, Evans Medical ↑7.69%, and Forte Oil ↑7.58%.

Companies relegated to the bottom of the league were Conoil ↓12.85%, R.T. Briscoe (Nig.) ↓11.00%, May & Baker (Nig.) ↓9.80%, Fidson Healthcare ↓9.49%, Red Star Express ↓9.39%, Costain (W.A.) ↓7.21%, UBA Capital ↓6.91%, P.Z. Industries ↓5.65%, Transnational Corp. of Nig. ↓5.47%, and N.E.M. Insurance ↓5.00%.

Agriculture Conglomerates Construction/Real Estate Consumer Goods Financial Services Healthcare ICT Industrial Goods Natural Resources Oil & Gas Services

2 1 2 2 2 1 3 6 0 8 11 12 9 34 14 3 4 3 1 9 1 4 11 6 0 5 0 4 2 5 6 8 4

DASHBOARD Friday Ticker

Close

Change, % 5.00% -2.78% -2.14% 0.00% 2.47% 0.00% -0.89% 4.72% -2.37% 1.01% 0.00% 3.46% -2.00% -3.64% 0.00% 0.00% -0.98% 2.56% -2.30% 1.61% 4.45% 4.94% 0.00% -0.72% 1.01% 1.16% 1.53% 2.68% -2.82%

7UP 147.73 ABCTRANS 0.70 ACCESS 9.59 AGLEVENT 1.45 AIICO 0.83 AIRSERVICE 2.10 ASHAKACEM 32.14 BETAGLAS 18.85 CADBURY 52.41 CAP 39.95 CCNN 14.50 CONOIL 55.00 CONTINSURE 0.98 COURTVILLE 0.53 CUSTODYINS 3.95 CUTIX 1.90 DANGCEM 215.00 DANGFLOUR 6.80 DANGSUGAR 8.50 DIAMONDBNK 6.30 ETERNA 3.99 ETI 19.32 FBNH 14.52 FCMB 4.15 FIDELITYBK 2.00 FIDSON 3.50 FLOURMILL 63.00 FO 230.01 GLAXOSMITH 63.17 GUARANTY 29.16 -2.15% GUINNESS 170.00 1.43% HONYFLOUR 4.06 0.50% INTBREW 28.90 1.37% JBERGER 61.01 -0.03% LINKASSURE 0.50 0.00% MANSARD 2.50 1.21% MAYBAKER 1.38 -4.83% MOBIL 180.10 0.06% MRS 50.54 -4.95% NAHCO 5.11 2.20% NASCON 9.43 1.18% NB 177.19 0.06% NEIMETH 1.03 -4.63% NEM 0.76 -3.80% NESTLE 1,013.00 0.26% NIGERINS 0.50 0.00% NNFM 22.20 0.00% OANDO 25.11 -0.36% OKOMUOIL 33.50 0.09% PAINTCOM 1.60 0.00% PORTPAINT 5.00 -1.96% PRESCO 37.00 3.93% PRESTIGE 0.50 PZ 34.60 -1.14% REDSTAREX 4.34 -4.82% ROYALEX 0.58 -4.92% RTBRISCOE 0.89 -7.29% SEPLAT 655.26 -2.27% SKYEBANK 2.87 -2.71% SOVRENINS 0.50 0.00% STANBIC 30.00 0.00% STERLNBANK 2.30 2.22% TOTAL 180.10 0.89% TRANSCORP 6.05 -3.20% UAC-PROP 15.18 0.53% UACN 58.00 -0.89% UBA 7.19 -0.14% UBCAP 2.02 -1.46% UBN 10.04 2.55% UNILEVER 47.75 -0.54% UNITYBNK 0.50 0.00% VITAFOAM 4.30 0.23% WAPCO 119.70 1.44% WAPIC 0.73 0.00% WEMABANK 0.91 -2.15% ZENITHBANK 24.60 2.50%

5-day Volume 1,627 3,860 299,916 200 6,777 30 4,723 268 980 874 1,348 2,164 30,883 2,750 1,854 457 1,986 726 29,287 30,840 5,144 26,620 61,636 1,468 28,911 4,423 4,563 8,214 12,148 72,341 2,524 8,013 186 421 506 2,040 8,903 134 352 10,163 6,847 9,241 1,817 21,739 408 30 0 65,897 1,765 1,000 3,002 5,222 0 8,720 80,306 20,011 1,145 109 27,136 0 3,982 48,882 317 293,452 2,038 10,395 59,323 588,385 8,793 919 3,662 3,814 986 15,565 7,813 269,768

4-Week

Change, Open Week Hi Week Lo Volume Open % 140.70 147.73 140.70 5.00% 2,897 126.78 0.69 0.74 0.68 1.45% 55,959 0.69 9.35 9.80 9.03 2.57% 1,705,746 9.63 1.40 1.52 1.40 3.57% 2,905 1.33 0.80 0.83 0.80 3.75% 129,261 0.81 2.00 2.10 2.00 5.00% 842 2.13 32.69 33.50 30.95 -1.68% 13,149,679 33.94 18.00 18.85 17.98 4.72% 394 17.90 54.05 57.83 52.41 -3.03% 8,248 63.67 39.00 39.95 39.00 2.44% 11,806 39.53 14.09 14.70 14.09 2.91% 26,636 14.33 55.10 58.89 53.16 -0.18% 9,563 64.80 0.99 1.00 0.97 -1.01% 46,063 1.00 0.57 0.57 0.53 -7.02% 5,872 0.55 3.96 4.00 3.85 -0.25% 20,049 3.85 1.82 1.90 1.82 4.40% 3,323 1.94 226.00 225.01 225.01 215.00 -4.45% 21,616 6.98 7.31 6.50 -2.58% 8,791 7.50 8.15 8.90 8.13 4.29% 125,990 8.91 6.17 6.30 6.10 2.11% 238,670 6.28 3.88 4.09 3.82 2.84% 45,578 3.80 17.86 19.32 17.35 8.17% 470,571 17.19 15.00 15.10 14.45 -3.20% 562,247 14.79 4.26 4.27 4.08 -2.58% 239,325 4.25 1.96 2.01 1.95 2.04% 373,927 2.00 3.69 3.70 3.30 -5.15% 20,813 3.14 64.71 65.00 61.60 -2.64% 9,880 69.87 220.00 236.00 217.00 4.55% 19,047 222.10 62.70 65.70 62.70 0.75% 26,292 64.00 28.90 29.82 30.15 29.01 -2.21% 898,082 181.00 181.00 167.60 -6.08% 13,921 189.50 4.15 4.20 4.00 -2.17% 60,957 4.01 28.51 28.90 28.02 1.37% 9,506 26.66 63.00 63.99 61.00 -3.16% 6,742 64.00 0.50 0.50 0.50 0.00% 506 0.50 2.50 2.59 2.47 0.00% 4,862 2.54 1.57 1.57 1.38 -12.10% 20,565 1.60 174.00 180.10 174.00 3.51% 1,921 176.76 53.17 56.00 50.54 -4.95% 4,087 53.79 5.00 5.20 4.98 2.20% 46,403 5.00 9.48 9.99 9.31 -0.53% 35,947 9.86 176.10 178.00 171.15 0.62% 48,416 172.01 1.05 1.10 1.03 -1.90% 11,994 1.12 0.80 0.80 0.76 -5.00% 85,501 0.80 1,024.95 1,024.95 1,000.00 -1.17% 5,342 1,062.01 0.50 0.50 0.50 0.00% 3,201 0.50 19.95 22.20 19.95 11.28% 1,346 22.48 25.85 26.30 25.00 -2.86% 351,328 26.43 34.25 34.50 33.08 -2.19% 23,667 35.00 1.52 1.60 1.52 5.26% 1,103 1.61 5.03 5.16 5.00 -0.60% 19,232 5.09 36.99 37.00 35.46 0.03% 9,685 36.00 0.50 0.50 0.50 0.00% 103 0.52 36.00 34.90 35.00 33.26 -0.86% 19,596 4.56 4.70 4.34 -4.82% 83,926 4.31 0.57 0.63 0.57 1.75% 35,768 0.60 1.00 1.00 0.89 -11.00% 15,171 0.92 679.88 679.88 650.00 -3.62% 2,924 680.00 2.78 2.96 2.71 3.24% 251,357 3.10 0.50 0.50 0.50 0.00% 300 0.50 30.01 30.14 30.00 -0.03% 13,888 29.10 2.24 2.30 2.15 2.68% 150,533 2.14 173.01 182.11 172.06 4.10% 1,858 182.00 6.40 6.72 5.99 -5.47% 1,231,981 5.60 15.21 15.93 15.10 -0.20% 8,648 16.40 58.60 59.99 57.20 -1.02% 265,251 60.21 7.27 7.46 7.02 -1.10% 515,813 7.31 2.17 2.18 2.00 -6.91% 2,516,176 2.15 8.56 10.89 8.56 17.29% 152,018 8.20 47.15 48.01 46.22 1.27% 20,904 49.00 0.50 0.50 0.50 0.00% 39,004 0.50 4.13 4.30 4.11 4.12% 17,220 4.18 117.00 119.70 114.03 2.31% 62,026 118.60 0.73 0.76 0.72 0.00% 139,646 0.78 0.91 0.95 0.89 0.00% 60,751 0.97 24.25 24.60 23.85 1.44% 678,410 23.88

Change, Volume % 16.52% 15,753 1.45% 692,478 -0.42% 6,210,386 9.02% 12,709 2.47% 988,818 -1.41% 15,121 -5.30% 13,262,075 5.31% 26,015 -17.68% 40,388 1.06% 22,645 1.19% 116,033 -15.12% 49,376 -2.00% 315,340 -3.64% 52,751 2.60% 273,817 -2.06% 35,445 -4.87% 191,923 -9.33% 369,614 -4.60% 486,043 0.32% 1,424,838 5.00% 552,397 12.39% 18,862,904 -1.83% 2,033,624 -2.35% 1,110,192 0.00% 3,213,825 11.46% 294,945 -9.84% 38,688 3.56% 70,855 -1.30% 31,545 0.90% 2,366,012 -10.29% 41,103 1.25% 277,250 8.40% 208,118 -4.67% 26,803 0.00% 617 -1.57% 268,427 -13.75% 96,396 1.89% 15,016 -6.04% 13,746 2.20% 202,665 -4.36% 166,289 3.01% 324,253 -8.04% 73,817 -5.00% 993,473 -4.61% 29,185 0.00% 6,825 -1.25% 17,199 -4.99% 1,127,971 -4.29% 57,481 -0.62% 46,639 -1.77% 67,195 2.78% 41,506 -3.85% 40,338 -3.89% 61,386 0.70% 132,875 -3.33% 236,699 -3.26% 81,005 -3.64% 9,837 -7.42% 1,192,599 0.00% 21,527 3.09% 218,818 7.48% 2,404,977 -1.04% 19,059 8.04% 6,132,780 -7.44% 56,041 -3.67% 418,044 -1.64% 1,504,947 -6.05% 3,769,237 22.44% 238,006 -2.55% 150,189 0.00% 622,073 2.87% 66,203 0.93% 127,985 -6.41% 685,842 -6.19% 347,912 3.02% 2,104,092

5-Week trading1

52-Week price range Low 64.80 0.65 7.22 1.25 0.74 2.00 13.87 10.69 52.41 35.96 8.00 25.92 0.93 0.50 1.30 1.59 185.00 6.32 8.02 5.86 2.48 12.40 11.50 3.01 1.85 1.80 58.10 35.80 62.28 22.67 162.00 2.56 17.98 59.18 0.50 1.95 1.33 102.02 32.53 4.56 9.31 140.00 0.79 0.55 931.85 0.50 18.00 9.32 32.15 1.33 4.00 32.00 0.50 30.08 4.01 0.50 0.84 590.00 2.70 0.50 18.01 2.09 146.26 1.34 12.05 42.58 6.65 1.24 8.00 42.50 0.50 3.66 88.92 0.66 0.89 19.30

Close ( )

High

YtD

PE

EPS

Liquidity Rating2

147.73 106.82% 30.05 4.46 0.97 -10.46% 3.33 0.21 10.70 -0.10% 6.10 1.57 1.86 -11.04% 6.75 0.23 1.00 -9.78% 5.46 0.15 4.23 -37.31% 4.00 0.50 34.20 46.89% 40.38 0.80 22.10 30.63% 5.58 3.38 110.00 -46.07% 35.04 1.57 51.66 -16.74% 23.53 1.67 15.98 20.93% 12.95 1.12 79.80 -10.31% 15.93 3.34 1.29 -18.33% 6.12 0.16 0.89 -18.46% 4.82 0.11 4.11 81.19% 16.46 0.24 2.27 -2.56% 9.58 0.19 250.02 -0.54% 18.24 11.80 10.76 -33.53% 12.49 -24.78% 10.86 0.81 8.20 -16.00% 3.81 1.65 5.73 -15.64% 6.34 0.61 19.32 17.88% 5.26 3.67 17.29 -10.92% 6.72 2.16 4.59 8.07% 4.75 0.88 2.95 -25.93% 2.94 0.68 3.70 27.27% 13.92 0.24 83.64 -23.00% 18.93 3.38 259.94 147.67% 50.86 4.63 74.97 -9.76% 21.68 3.00 31.80 5.08% 8.93 3.27 266.70 -27.97% 21.83 7.88 4.50 5.45% 11.94 0.34 31.50 2.05% 44.84 0.63 76.45 -3.27% 9.49 6.74 0.50 0.00% 12.57 0.04 2.73 0.00% 16.35 0.15 2.64 -45.88% 15.33 0.09 182.00 55.26% 17.24 10.44 70.00 -2.28% 53.85 1.04 6.46 -19.53% 15.98 0.32 15.10 -36.50% 8.98 1.05 189.00 7.38% 33.84 5.24 2.08 -6.36% 0.97 -6.17% 1,250.01 -14.30% 35.04 28.82 0.54 0.00% 25.00 0.02 25.65 0.86% 36.89 -6.06% 22.61 1.11 48.05 -25.27% 14.52 2.29 2.30 -17.95% 4.57 0.35 6.25 -4.76% 8.35 0.60 49.00 -5.13% 4.42 8.38 0.81 -20.63% 1.99 0.25 41.46 -6.48% 25.31 1.34 5.35 2.12% 7.10 0.61 0.69 7.41% 5.79 0.10 1.49 -36.88% 735.00 8.34% 4.67 -36.36% 3.44 0.84 0.50 0.00% 3.36 0.15 31.50 34.29% 15.61 1.92 2.74 -8.00% 3.65 0.63 195.50 3.92% 13.94 12.91 7.08 39.40% 68.95 0.09 21.31 -1.27% 6.90 2.20 67.85 3.59% 27.07 2.14 9.60 -21.42% 4.23 1.70 3.04 -11.01% 6.97 0.29 10.89 4.47% 54.94 0.19 64.00 -9.91% 35.03 1.37 0.72 0.00% 4.65 0.11 5.70 -10.60% 6.06 0.71 136.73 4.09% 14.62 8.10 1.48 -35.40% 10.43 0.07 1.40 -28.91% 27.40 -1.60% 7.11 3.46

LEGEND 5-week trading bar: This bar shows the volume of the company’s shares traded during the 5 most recent weeks. Each alternate colour bar represents a consecutive week. The bar is to be read from left to right. The first bar on the left (light blue) represents the traded volume five weeks ago. The next bar (grey) represents the volume 4 weeks ago. The 5th and last bar (light blue) signifies the volume of shares exchanged last week. The purpose of the Weekly Trading bar is to give readers an instant view of trading volumes as they compare on a week-by-week basis.

1

Liquidity Rating: This indicates the level of demand for a company’s shares based on the number of deals rather than volume done over the past week. Stocks are graded according 5 categories. Blue spheres are used to represent liquidity.

• Category 5: This is the highest liquidity rating shown by 5 blue spheres.

Stocks that have traded more than 20 deals per day on at least 4 days in the past week are awarded this score • Category 4: This is shown by 4 blue spheres. It indicates that the stock has 2

traded between 12 to 19 deals per day on at least 4 days in the past week • Category 3: Shown with 3 spheres, this liquidity classification represents those stocks that have traded 8 to 11 deals per day on at least 4 days in the past week • Category 2: Shown with 2 spheres it identifies those stocks that traded 4 to 7 deals per day on at least 4 days in the past week • Category 1: This is shown by one blue sphere to represent stocks on which 3 deals and/or below were traded per day on at least 4 days in the week.

VM4

MARKET DATA

VM | Monday, September 15, 2014 | Issue 010

MARKET SNAPSHOT 3-MONTH PRICE TREND OF BELLWETHER STOCKS

ACCESS

9.59 0.24

7.22

PE 6.10

10.70 -0.01 -0.10%

YtD

3M

-0.21 -2.14%

0.24 2.57%

1W

08/09

June

July

August

CONTINSURE 0.93 YtD

-0.22 -18.33%

3M

PE 6.13 -0.01 -1.01%

1W

08/09

June

July

August

FCMB 0.31 8.07%

3M

0.02 0.48%

-0.11 -2.58%

1W

08/09

June

July

GUARANTY 22.67 YtD

August

1.41 5.08%

3M

PE 8.93 -0.66 -2.21%

1W

08/09

July

August

MANSARD 3M

0.00 0.00%

0.00 0.00%

1W

08/09

June

July

OANDO

August

-1.62 -6.06%

3M

5.11 25.55%

-0.74 -2.86%

1W

08/09

June

July

STANBIC

August

PE 15.61

31.50 7.66 34.29%

3M

3.45 12.99%

1W

08/09

June

July

August

UBA

-0.01 -0.03%

F

PE 4.23

9.60 -1.96 -21.42%

3M

-0.95 -11.67%

1W

-0.08 -1.10%

-0.55 -1.68%

08/09

June

July

DANGCEM

250.02 -1.16 -0.54%

3M

-9.25 -4.12%

-10.01 -4.45%

08/09

June

July

August

FIDELITYBK 1.85 YtD

3M

2.00 0.04 PE 2.94

-0.06 -2.91%

0.04 2.04%

1W

08/09

June

July

GUINNESS 162.00 YtD

August

3M

PE 21.83 -11.00 -6.08%

1W

08/09

June

July

MOBIL

August

182.00 64.10 55.26%

3M

53.04 41.74%

PE 17.24 6.10 3.51%

1W

08/09

June

July

OKOMUOIL 32.15 YtD

August

-11.33 -25.27%

3M

PE 14.52 -0.75 -2.19%

1W

08/09

July

TOTAL

August

195.50 6.80 3.92%

3M

8.81 5.14%

7.09 4.10%

08/09

June

July

UNILEVER 42.50 YtD

F

PE 13.94

1W

August

-5.25 -9.91%

3M

F

47.75 0.60 -2.74 -5.43%

PE 35.03

1W

August

DIAMONDBNK 5.86

-0.42 -6.25%

3M

July

0.60 1.27%

0.13 2.11%

1W

August

FLOURMILL -18.82 -23.00%

YtD

-7.00 -10.00%

3M

July

1W

August

HONYFLOUR 0.21 5.45%

YtD

-0.09 -2.17%

3M

July

August

NASCON

-2.17 -18.71%

3M

-0.05 -0.53%

1W

08/09

June

July

August

PRESCO YtD

0.43 1.18%

3M

July

1W

August

UACN YtD

F

-2.00 -3.33%

3M

-0.60 -1.02%

1W

08/09

June

July

August

WAPCO YtD

F

136.73 4.70 4.09%

3M

9.20 8.33%

PE 14.62

1W

2.70 2.31%

1.46 8.17%

1W

259.94 137.14 147.67%

3M

4.37 1.94%

10.01 4.55%

08/09

June

July

August

0.58 2.05%

3M

2.81 10.77%

0.39 1.37%

1W

08/09

June

July

August

189.00 12.18 7.38%

3M

2.20 1.26%

1.09 0.62%

08/09

June

July

August

-2.40 -6.48%

3M

-3.90 -10.13%

1W

08/09

June

July

August

3M

July

ZENITHBANK 19.30 YtD

-2.42 -13.75%

PE 6.90

1W

August

3M

-0.03 -0.20%

12/09

M T W T

F

24.60 0.35 PE 7.11

27.40 -0.40 -1.60%

F

July

August

FBNH YtD

08/09

July

August

12/09

M T W T

F

08/09

June

July

August

12/09

M T W T

F

June

July

August

-0.70 -2.77%

1W

0.35 1.44%

12/09

M T W T

F

08/09

June

12/09

M T W T

PE 6.72

17.29 -1.78 -10.92%

-0.98 -6.32%

3M

-0.48 -3.20%

1W

08/09

June

July

August

GLAXOSMITH

-5.73 -8.32%

3M

0.47 0.75%

1W

08/09

June

July

August

JBERGER

-7.01 -10.31%

3M

-1.99 -3.16%

1W

08/09

June

July

August

NESTLE

12/09

M T W T

1250.01 -169.00 -14.30%

-56.99 -5.33%

3M

PE 35.04 -11.95 -1.17%

1W

08/09

June

July

August

SEPLAT

12/09

M T W T

PE 0.00

735.00 50.46 8.34%

5.26 0.81%

3M

-24.62 -3.62%

1W

08/09

June

F

655.26 24.62

590.00 YtD

F

1013.00 11.95

931.85 YtD

F

PE 9.49

76.45 -2.06 -3.27%

12/09

M T W T

61.01 1.99

59.18 YtD

F

PE 21.68

74.97 -6.83 -9.76%

12/09

M T W T

63.17 0.47

62.28 YtD

F

14.52 0.48

11.50

July

August

12/09

M T W T

F

1. 52-week low price 2. Year low price 3. Current price 4. Year high price 5. 52-week high price 6. Current price 7. 5-day price change 8. PE ratio 9. 1-year price change 10. 3-months price change 11. 1-week price change 12. Daily price movement over 3 months.

13. 30-day moving average 14. Daily price movement over last week

1 2 TICKER

4

3

19.23 1YtD

5

25.23 0.018

July

August

12/09

M T W T

F

PE 7.29

27.406 0.23 0.92%

3M

2.90 12.99%

7 0.01

1W

0.04%

10

12

June

0.41 2.91%

08/09

June

9

08/09

PE 12.95

1W

LEGEND

08/09

June

12/09

M T W T

21.31 -0.20 -1.27%

-0.30 -0.86%

15.18 0.03

12.05 YtD

F

PE 25.31

41.46

3.80 35.51%

3M

12/09

M T W T

34.60 0.30

30.08 YtD

F

PE 33.84

1W

2.51 20.93%

12/09

M T W T

177.19 1.09

140.00 YtD

F

PE 44.84

31.50

YtD

15.98

12/09

M T W T

28.90 0.39

17.98 YtD

F

PE 50.86

1W

14.50 0.41

8.00

12/09

M T W T

230.01 10.01

35.80 YtD

August

12/09

M T W T

119.70 2.70

88.92

July

UAC-PROP

PE 27.07

67.85 2.01 3.59%

2.52 15.00%

12/09

M T W T

58.00 0.60

42.58

3M

PZ

0.01 0.03%

08/09

June

F

PE 4.42

49.00 -2.00 -5.13%

2.93 17.88%

08/09

June

F

PE 5.26

19.32

CCNN

12/09

M T W T

12/09

M T W T

37.00 0.01

32.00

YtD

August

19.32 1.46

12.40

NB

PE 8.98

15.10 -5.42 -36.50%

YtD

F

9.43 0.05

9.31

July

12/09

M T W T

0.95 2.44%

1W

08/09

June

INTBREW

-0.09 -2.17%

1W

08/09

June

F

PE 11.94

4.50

0.96 2.46%

12/09

M T W T

4.06 0.09

2.56

3M

FO

-1.71 -2.64%

08/09

June

F

PE 18.94

83.64

-8.03 -16.74%

12/09

M T W T

63.00 1.71

58.10

YtD

PE 23.53

51.66

ETI

PE 3.81

08/09

June

F

6.30 0.13 8.20

-1.20 -16.00%

YtD

39.95 0.95

35.96

12/09

M T W T

12/09

M T W T

64.00

July

12/09

M T W T

180.10 7.09

146.26 YtD

F

33.50 0.75 -0.33 -0.98%

08/09

June

12/09

M T W T

48.05

June

F

-1.64 -3.03%

1W

12/09

M T W T

180.10 6.10

102.02 YtD

F

170.00 11.00 -10.73 -5.94%

-25.39 -32.63%

3M

12/09

M T W T

266.70 -66.01 -27.97%

F

PE 35.04

110.00 -44.77 -46.07%

YtD

CAP

52.41 1.64

52.41

12/09

M T W T

2.95 -0.70 -25.93%

F

PE 18.24

1W

CADBURY

12/09

M T W T

215.00 10.01

185.00 YtD

August

12/09

M T W T

7.19 0.08

6.65 YtD

F

PE 40.38

1W

12/09

M T W T

30.00 0.01

18.01 YtD

F

PE 22.61

36.89

5.14 19.04%

12/09

M T W T

25.11 0.74

9.32 YtD

F

PE 16.35

2.73

3M

12/09

M T W T

2.50 0.00

1.95 0.00 0.00%

F

29.16 0.66 -2.11 -6.75%

10.26 46.89%

12/09

M T W T

31.80

June

YtD

F

PE 4.75

4.59

YtD

32.14 0.55 34.20

12/09

M T W T

4.15 0.11

3.01 YtD

F

0.98 0.01 -0.05 -4.85%

13.87

12/09

M T W T

1.29

ASHAKACEM

11 14

13 May

21/07

June

July

25/07

M T W T

F

MARKET DATA

VM | Monday, September 15, 2014 | Issue 010

VM5

MARKET SNAPSHOT +150% SLIPPING +140%

LEADING

11

Bubble size = Market Cap

+130% +120% +110%

23

YEAR-TO-DATE RETURN

+100%

# TICKER

WTD

YTD

1 DANGCEM

-4.45 -0.54

2 NB

0.62

7.38

3 GUARANTY

-2.21

5.08

4 NESTLE

-1.17 -14.30

5 ZENITHBANK

1.44

-1.60

6 FBNH

-3.20 -10.92

+90%

7 WAPCO

2.31

+80%

8 ETI

8.17 17.88

9 STANBIC

-0.03 34.29

10 GUINNESS

-6.08 -27.97

11 FO

4.55 147.67

12 UBA

-1.10 -21.42

13 TRANSCORP

-5.47 39.40

14 OANDO

-2.86 -6.06

15 ACCESS

2.57

-0.10

16 UNILEVER

1.27

-9.91

17 UBN

17.29 4.47

18 FLOURMILL

-2.64 -23.00

19 PZ

-0.86 -6.48

20 UACN

-1.02

21 DANGSUGAR

4.29 -24.78

22 CADBURY

-3.03 -46.07

23 7UP

5.00 106.82

24 INTBREW

1.37

+70% +60%

29

+50%

28

+40%

13 9

+30% +20%

8

+10%

26

0%

1

27

-10%

6

-20%

20

114 39

19 4

18 10

-30%

3

37

2

7

24 5 36 34 31 116

33

25

12

17

30

15

38 21

32 35

-40% -50% LAGGING -15%

Indices

22

40

-10%

YtD, %

ASI

-1.18% -0.21%

NSE30

-0.73% -0.03%

NSEBNK

1.92% 0.71%

NSEINS

0.07% -0.11%

NSECNSMRGDS

-0.49% 0.07%

-5%

WtD, %

0% 5% WEEK-TO-DATE RETURN TRADING BREAKDOWN

BY SECTOR

DtD, %

Sector -1.59%

-2.63%

%

Industrial Goods

52

Financial Services

32 \ 84

Conglomerates

5\7

Others

11 \ 6

-3.01%

FGN Bond Index 3000

-6.84%

-9.30%

1.80%

NSEOILGAS 1.78%

37.42%

-1.75%

NSELOTUSISLM -0.46%

-8.07%

-1.61%

NSEINDUSTR -0.63%

14.2

Market Value YTD Return

2990

14.0

2980

13.8

2970

13.6

3.25%

-10% -8% -6% -4% -2%

0%

2%

2960 13.4 05/09 09/09 11/09

4%

10%

15%

IMPROVING 20%

GLOBAL INTEREST RATES & INFLATION TARGETS Central Last Date % Inflation Rate Bank Change Change Target China 6.00% 05.07.2012 -0.31 4.00% Japan 0-0.10% 05.10.2010 -0.20 2.00% UK 0.50% 05.03.2009 -0.50 2.00% USA 0-0.25% 16.12.2008 -0.1 2.00% Eurozone 0.05% 04.09.2014 -0.10 <2.00% Brazil 11.00% 02.04.201 +0.25 4.5% +/-2.0% Canada 1.00% 20.07.2010 +0.25 2.0% +/-1.0% Egypt -0.50 8.25% 05.12.2013 India 8.00% 28.01.2014 +0.25 Indonesia 7.50% 12.11.2013 +0.25 4.5% +/-1.0% Malaysia 3.25% 10.06.2014 +0.25 Mexico 3.00% 06.06.2014 -0.50 3.00% +/-1.0% Morocco 3.00% 28.03.2012 -0.25 Nigeria 12.00% 10.10.2011 +2.75 6.00% - 9.00% Qatar 4.50% 10.08.2011 -0.50 Russia 8.00% 28.07.2014 +0.50 5%* Thailand 2.00% 12.03.2014 -0.25 0.5% - 3.0% Turkey 8.75% 24.06.2014 -0.75 5.00% * +/- 1.5 pct point uncertainty band

Date

Deals

Turnover Value

Traded Stocks

Declined Stocks

Unchanged Stocks

All Shares Index Value

1

08.09.14

4,168

479,791,860

50,706,734,379.59

106 \ 111

29 \ 25

25 \ 30

52 \ 56

41,214.81

2

09.09.14

4,782

1,649,176,997

46,346,888,465.65

121 \ 114

27 \ 20

29 \ 33

65 \ 61

40,868.02

3

10.09.14

5,193

386,565,044

3,788,276,370.17

126 \ 105

20 \ 20

24 \ 33

82 \ 52

40,885.40

4

11.09.14

4,756

267,099,744

3,060,524,239.82

108 \ 109

23 \ 17

24 \ 38

61 \ 54

40,757.20

5

12.09.14

4,780

263,855,559

2,798,678,370.74

115 \ 111

29 \ 36

31 \ 16

55 \ 59

40,672.94

The \ arrow signifies week-on-week change in value. This week’s value is shown on the left of the \ sign, and last week’s value on the right.

2.11 -16.00 -2.58

27 JBERGER

-3.16 -3.27

28 ASHAKACEM

-1.68 46.89

29 MOBIL

3.51 55.26

30 TOTAL

4.10

3.92

31 GLAXOSMITH

0.75

-9.76

32 FIDELITYBK

2.04 -25.93

Index

Week Opening

Week Close

Change

WtD

MtD

QtD

YtD

1

All Shares Index

41,160.62

40,672.94

-487.68

-1.18

-2.07

-4.26

-1.59

2

NSE 30 Index

1,870.68

1,856.96

-13.72

-0.73

-1.77

-3.87

-2.63

3

NSE Banking Index

426.18

434.35

8.17

1.92

1.33

0.34

-3.01

4

NSE Insurance Index

142.31

142.41

0.1

0.07

-1.49

-3.01

-6.84

5

NSE Consumer Goods Index

1,002.81

997.92

-4.89

-0.49

-2.91

-5.7

-9.3

6

NSE Oil/Gas Index

458.82

467.06

8.24

1.8

-2.79

-0.25

37.42

7

NSE Lotus Islamic Index

2,678.96

2,631.96

-47

-1.75

-3.44

-8.44

-8.07

8

NSE Industrial Index

2,672.58

2,629.45

-43.13

-1.61

-1.86

-1.4

3.25

8.07

33 STERLNBANK

2.68

34 CONOIL

-0.18 -10.31

35 SKYEBANK

3.24 -36.36

36 PRESCO

0.03

37 OKOMUOIL

-8.00

-2.19 -25.27

-5.13

38 CAP

2.44 -16.74

39 NEIMETH

-1.90 -6.36

40 MAYBAKER

-12.10 -45.88

NSEASI

40,672.94

41,30 41,10 40,90 40,70 40,50 Mo

Tu

S&P 500

We

Th

Fr

1,985.54

2,010 2,000 1,990 1,980 1,970 Fr

Mo

Tu

FTSE 100

INDEX PERFORMANCE

2.05

26 FCMB

Fr Advanced Stocks

3.59

25 DIAMONDBNK

MARKET SNAPSHOT Turnover Volume

4.09

We

Th

Fr

6,806.96

6,900 6,850 6,800 6,750 6,700 Th

Fr

Tu

JSE FTSE

We

Th

Fr

51,247.71

51,90 51,70 51,50 51,30 51,10 Fr

Mo

Tu

We

Th

Fr

VM6

ARENA

VM | Monday, September 15, 2014 | Issue 010

ART AS AN ALTERNATIVE INVESTMENT

Book review: Art as an Investment?

A Survey of Comparative Assets, by Melanie Gerlis Over the last decade, there has been considerable debate over the suitability of art as an investment asset.

Oliver Enwonwu is the director of leading Lagos gallery, Omenka and president of the Society of Nigerian Artists. oliver@omenkamagazine.com

HIS WEEK, WE will be bringing to you the first in our book review series. We will start with a review of an insightful book, Art as an Investment? A Survey of Comparative Assets, written by art market expert, Melanie Gerlis, an art market expert.

Before her entry into the art market in 2005, she had spent a decade working with investment banks, private equity firms, stock exchanges and hedge funds. Therefore,

T

it is no surprise that she initially approached the art business with the mindset that the rules of these financial players could be applied fairly easily to art, to produce a more efficient system of trading.

The author sets out to question the validity of claims about art’s capacity to generate returns that outweigh its risks.

Over the last decade, there has been considerable debate over the suitability of art as an investment asset. This has pitched financially-minded professionals against the artdealing community, who spurn their sophisticated models and analytical methods.

These differing opinions set the stage for Gerlis’ discussion on the pros and cons of art as an investment, which she determines in relation to other available investments including stocks, gold, wine, property, private equity and luxury goods.

Aimed at collectors and investors, this 192-page userfriendly guide published by Lund Humphries in February 2014, opens up to an introduction on the risks and returns of high-end art. The author brings to bear her financial expertise and solid first-hand knowledge of art and its markets. She draws on extensive research and interviews with key players in these other markets, as well as her own experience, to clarify the specifics of art as an asset class.

Gerlis kicks off her discussion on the premise that all art in the market is an asset, owing to the fact that people are willing to pay money, and that they expect to resell. She argues that art is the source of income for several intermediaries including an estimated 23,000 auction houses, as well as 375,000 art dealers, globally.

However, she argues that

most analyses of the art market concentrate on the relative returns, almost regardless of the risks, including the lack of liquidity and near absence of regulatory structures. She posits that while issues of transparency and regulation continue to be the bane of serious investment, by far the biggest problem is valuation.

She explains that ‘even in the more opaque financial markets, such as private equity, there are considerably more data points from which to create indexes, assess risk and attempt to gauge returns.’

Next week, in our continuing series of this review, we will take a closer look at more of these risks while proffering insightful solutions to those including investors and enthusiasts who seek to understand the nature of the art commodity. ; Art as an Investment?

A Survey of Comparative Assets,

by Melanie Gerlis, published

by Lund Humphries in the UK; ISBN 978-1-84822-134-5, 192pp (hardback); also available as an e-book.

SPOTLIGHT

Onyekachi Onubogu, ED, Promasidor, marketing whiz

Onyekachi Onubogu

T HIS 4OTH birthday celebration in 2013 Kachi Onubogu’s visibly elated mother shared a story of how her son had always had an entrepreneurial flair. She told the guests seated in the Shell Hall of MUSON Centre that during his National Youth Service orientation he figured that he could start a small venture providing other corpers with the popular ogi pap made

A

from fermented cornflour.

The hall burst into laughter.

Until he hit on the idea the raw material was being discarded at the camp. Prior to that the budding businessman had had other successful money-spinning ideas.

Youthful-looking Onubogu honed his management skills at an early age helping his parents manage a successful poultry in Jos, the city where he grew up. His easy manner, unassuming nature, and perennial smile mask a highly competitive streak.

Those little beginnings were long ago. In February, Onubogu was named executive director (commercial) at Promasidor Nigeria, makers of Cowbell milk, Loya milk, and Onga seasoning. He is credited with driving the multi-billion naira company’s popularity since he joined in 2010. He was poached from Prosperity Capital Management, a global fund manage-

Published by

ment company, where he was the associate director in its Nairobi office. In a career that has traversed every region in sub-Saharan Africa, a memorable highlight is his conception of the Udeme

Onubogu is one of a visible set of young Nigerian executives brought back from the Diaspora to assume senior leadership positions in Nigerian companies in the last decade. campaign for Guinness, when he worked as marketing manager in Diageo’s Nigeria operations.

Onubogu’s dexterity in the art of selling, and the hard sciences were evident in the course of study he selected at the university. He graduated with flying colours from the physics department of the University of Jos. After

EDITOR: MIDENO BAYAGBON GROUP BUSINESS EDITOR: OMOH GABRIEL

In Association With

amassing years of practical experience, he went on to earn an MBA from Gordon’s Institute of Business Sciences, University of Pretoria in South Africa. He has also participated in the Advanced

CONTENT DIRECTION: OBIORA TABANSI ONYEASO DESIGN & ILLUSTRATION: PUBLICAN MEDIA

Management Program (AMP) at the University of Pennsylvania’s prestigious Wharton Business School.

His background in the sciences places him at a distinct advantage. Colleagues speak of his obsession with data and identifying causal relationships in customer behaviour.

He reminds team members that if Promasidor could steal

the milk off the table of more established brands when it entered the market, it knows that the day it grows complacent is the day it gives up its crown. Staying on top means staying focused on the marketing discipline that helped its brands win mindshare.

His marketing savvy paved the way to the engagement of a new generation of entertainers and showbiz personalities as embodiments of brands.

He is one of a visible set of young Nigerian executives headhunted from the Diaspora to assume senior leadership positions in companies over the last decade. These men and women were educated here, started their careers here, then went abroad to study, in pursuit of new opportunities, or were seconded overseas by their employers.

Having worked with the best and brightest in world-class companies, they were tempt-

Vanguard Markets features unbiased, in-depth coverage of corporate and market developments across a wide range of business sectors.

Every week, Vanguard Markets delivers essential business analysis and commentary on Nigerian companies, regional economies, and global markets.

Vanguard Markets is published by Vanguard Media Limited in association with Customs Street Advisors Limited, a specialist communications consultancy.

ed to return home to contribute their quota to national development. Their qualifications are not in doubt.

A private crusade he begun last year to equip Iyi-Enu Hospital, a missionary hospital in his home town, Ogidi in Anambra State, brings him fulfilment. He started a campaign to raise N15 million to buy medical equipment for the treatment of cardiovascular diseases at the medical facility after reading that more than thirty million Nigerians suffer from heart related ailments linked to hypertension.

Indeed, he told invited guests at his birthday last year to write cheques in support of Iyi-Enu rather than buying him presents.

‘I want to be remembered for one thing, that I was able to bring a change in my environment,’ he said. But this is no ordinary change. It is a change that could save millions of lives. ;

Vanguard Media Limited, Vanguard Avenue, Kirikiri Canal, P.M.B.1007, Apapa.

Website: www.vanguardngr.com ISSN 0794-652X