Every governor should attract at least $10bn worth of foreign direct investment annually
Every governor must generate at least 1,000MW of electricity
Every governor must inaugurate a power transmission and distribution company on their state. It could be a PPP joint venture, wholly state-owned or a private concern but it must be able to electrify the whole state
Every state must remit at least $5bn into the federation account this year and annually in subsequent years
Every state government must build and run at least one vocational-technical college in each of its local government areas
Every state governor must generate at least $1bn annually in export earnings
Literacy levels must never drop below 80% in any state. If they do, a state of emergency will be declared
Every state must initiate a public works programme that employs at least 500,000 people
Every governor must ensure that there is a functioning general hospital in each local government area of his state
At least one-third of every state cabinet must be women. Any state government that does not reflect this will not be recognised
Local equities opened the trading week with a bullish sentiment as bargain hunting buoyed market performance across major tickers. Notably, The All Share Index (ASI) advanced by 80bps to 39,110.17 with market capitalization also gaining N167.64bn to settle at N20.20.45tn. Consequently, the Year to Date (YtD) performance improves to 45.70%.
Performance across sectors was however mild as 3 out of the 5 sectors under our coverage closed negative. Industrial and banking indices went up by 2.39% and 1.05% following gains recorded in BAUCEMENT(+6.67%) and ZENITHBANK (+2.04%).
Conversely, Insurance, consumer goods and oil & gas indices waned by 0.81%, 0.05% and 0.06% due to selloffs in MANSARD (-4.76%), GUINNESS(-1.03%) and OANDO(-0.55%)
Investors’ sentiment measured by market breadth was negative as 19 stocks advanced while 20 stocks declined to indicate a 0.95x market breadth. An 85.40% increase in volume and 45.00% decrease in value of the transaction was as well recorded amid the increasing number of trades.
The bond market opened the week bearish as the yield on short and mid dated instruments advanced. Notably, Yield on the FGN-JAN-2022 advanced by 0.75% to close at 12.49 while Yield on FGN-JUL-2030 rose to 7.19% from the earlier 6.42%
The COVID-19 pandemic hit the automotive industry hard, causing supply chain disruptions, factory closures, and huge sales and revenue drops.
According to data presented by Stock Apps, global passenger car sales is expected to plunge by $440bn in 2020 due to the coronavirus outbreak. The downsizing trend is set to continue next year, with revenues falling by 10% YoY in 2021.
Revenues to Continue Falling in the Next Two Years
Even before the pandemic, the car industry was already coping with a downshift in global demand. In 2016, global car sales revenue, including passenger cars, sports cars, SUVs, and MPVs, hit $2.26trn, revealed Statista data. In the next twelve months, this figure slightly increased to $2.27trn.
Statistics show that in 2019, global passenger car sales revenues amounted to $2.29trn. Small SUVs sales, as the largest revenue stream, generated almost 30% of that value or $647bn. Large SUVs and large cars segments followed with $362bn and $275bn in revenue, respectively.
However, the COVID-19 pandemic caused a huge hit, with total car sales revenues falling by almost 20% year-over-year to $1.85trn in 2020. Statista data revealed that revenues in the large cars segment are expected to drop by 25% YoY to $233bn. Large SUV sales are set to witness a 24% cut this year, with revenues falling to $275bn in 2020. Small SUVs follow with a 20% drop and $525bn in revenue.
Analyzed by carmakers, Toyota represented the market leader with a 10.6% market share in 2020. Volkswagen ranked second with a 7.4% market share. Nissan, Ford, and Hyundai follow, with a 6.6%, 6.2%, and 5.6% share, respectively.
The Volkswagen Amarok radio ad depicts a man in a mall amid frenzied shoe shopping.
Statistics show the downsizing trend is set to continue in 2021, with global passenger car sales revenues falling to $1.65trn. In 2022, this figure is expected to decrease by another 6% to $1.55trn.
Three Largest Markets Lost $231.5B in Revenue Amid COVID-19 Crisis
Statista data also revealed that all of the leading car markets are expected to witness a two-digit revenue drop this year. As the largest market globally, the car sales revenue in the United States is forecast to fall by almost 18% YoY to $507bn in 2020. This figure is expected to plunge to $385bn in the next two years, nearly 40% less than in 2019.
China ranked as the second-largest market globally with $452bn in revenue in 2020, an 18% fall year-over-year. By 2022, total car sales revenues in China are set to drop to $405bn.
As the third-largest market, Japan witnessed an almost 19% YoY drop, with passenger car sales revenues falling to $92bn in 2020. Germany follows with $86.5bn in revenue, 17% less than in 2019.
The Statista data show the three leading markets lost $231.5bn in car sales revenues in 2020 due to the COVID-19 crisis.
Oparah was announced the winner during the 5th Edition of LaPRIGA, a colourful ceremony convened to celebrate outstanding communications professionals, which held at the weekend in Lagos and attended by prominent PR and Marketing Communications practitioners.
According to a citation by organizers of the award platform, “Oparah of Airtel scored the highest number of votes to win the “Corporate Communications Director of the Year” category and is also celebrated for leading a dynamic team that deepens communications practice as well as for inspiring and nurturing talents over the years.”
The team Oparah currently leads at Airtel also emerged winners in the ‘Best Brand Storytelling’ and ‘PR Innovation’ categories at the LaPRIGA awards.
Reacting to the award, Oparah, commended the award organizers and communications practitioners in Lagos for bestowing such a huge honour on him, saying that he is humbled by the gesture but inspired to continue to contribute his quota to the development of the communications practice in Nigeria.
“I thank LaPRIGA for the award and for creating such a powerful platform to celebrate outstanding PR professionals. I also thank my boss, my colleagues and industry professionals who have inspired me as well as those who voted for me. With this honour, I am even more inspired to commit to excellence in the practice of PR in Nigeria,” he said.
Oparah’s enviable track record of excellent performance has earned him several awards previously chief amongst them are the prestigious “Bob Ogbuagu Leadership Award” by the Nigeria Institute of Public Relations (NIPR) in 2019); Outstanding Corporate Communications Personality of the decade” 2020 by Marketing Age Magazine and “Communications Practitioner of The Decade” by Brand Journalists Association of Nigeria (BJAN) in 2019.
Oparah, in his current role at Airtel Nigeria, leads activities covering public relations, internal communications, corporate social responsibility, corporate events and sponsorship. His career spans the full scope of the communications industry, with over 29 years spent in journalism, advertising and public relations.
After graduating from the University of Nsukka in 1990, where he edited the famous campus newspaper, “The Record”, he spent a few years working at the Imo state Newspaper and three other communications agencies.
He moved to Cadbury Nigeria PLC in 1994 where he spent eight years as Media Relations Manager before transitioning to Econet Wireless Nigeria in 2002. Oparah holds an advanced diploma in international public relations management from The Management School, London and has attended many Communications, Leadership and Management training in Nigeria and overseas.
Mrs. Aku Odinkemelu, Executive Director Commercial and Consumer Banking, South Directorate, who was appointed to the Board on August 4, 2014, notified the Board on October 30, 2020, of her intention to take early retirement and will retire from the Board on December 31, 2020.
As Executive Director South, Mrs. Aku Odinkemelu’s responsibilities covered the Commercial, SME, Consumer and Public Sector businesses of Fidelity Bank in the South East and South-South regions of Nigeria.
She provided leadership for the 90 business offices within the 11 States under her purview and successfully closed some landmark transactions that contributed significantly to the Bank’s overall profitability during the period of her employment.
Aku played a defining role as a member of the transformation team in Fidelity Bank over the last 6 plus years, with the business directorate accounting for 31% of Deposits and 21% of Loans.
The South Business Directorate under her leadership generated the highest PBT in the Bank over the last 5 years (2015 – 2019) contributing over 23% of the total bank profit over the period. Her retirement comes after over six (6) years of meritorious service to the institution.
(B). Retirement of Non-Executive Directors:
Chief Charles Umolu, Non-Executive Director, completed his tenure and retired from the Board on December 16, 2020. He served on the Board Risk, Credit, Finance & General Purpose, Audit and Corporate Governance Committees and chaired the Board Credit Committee. until he retired.
Mr. Michael Okeke, Non-Executive Director also successfully completed his tenure and retired from the Board on December 18, 2020. He was a member of various Board Committees including the Board Corporate Governance Committee, which he chaired from October 2018 to December 2019.
Mr. Alex Ojukwu, Non-Executive Director, will complete his tenure and retire from the Board on December 31, 2020. He currently serves on the Board Credit, Risk, Audit and Corporate Governance Committees and chairs the Board Risk Committee.
The Board seizes this opportunity to express its profound appreciation to the outgoing Executive and Non-Executive Directors for their impressive contributions to the growth and development of the Bank during their tenure on the Board.
(C) Appointment of Non-Executive Directors:
The Board is pleased to announce the appointment of Mrs. Amaka Theodora Onwughalu and Mr. Nelson Chidozie Nweke as Non-Executive Directors. Their appointments were approved by the Central Bank of Nigeria on December 15, 2020. The Board is also pleased to announce the appointment of Mr. Chinedu Eric Okeke as a NonExecutive Director of the Bank, subject to the approval of the Central Bank of Nigeria.
Mrs. Amaka Theodora Onwughalu | Non-Executive Director | www.brandspurng.comMr. Chinedu Eric Okeke | Non-Executive Director | www.brandspurng.comMr. Chinedu Eric Okeke | Non-Executive Director | www.brandspurng.com
Performance at the local equities market was dominated with bearish sentiments as the bulls sustained the previous week rally. The market opened the week strong with a 174 bps gain which was followed by impressive gains on Tuesday and Wednesday.
The market however waned by 1bps on Thursday ahead of the Christmas holiday. Consequently, the All-Share Index (ASI) closed the week with a 5.42% gain WoW to close at 38,800.01 with market capitalization adding N1.05tn to settle at N20.28tn. In Summary, the year-to-date (YtD) performance improves to +44.55%.
Market breadth, a measure of Investors’ sentiment declined from 3.12x to 1.94x as 35 stocks advanced while 18 stocks declined last week. FTNCOCOA (+43.55%), JAPAULGOLD (+41.18) and BOCGAS(+20.83%) were the top market gainers while TRANSEXPR (-9.20%), JOHN HOLT (-8.93%) and CHAMPION (-7.87%) top the losers’ chart.
Market activity level was positive as both the volume and value of transaction advanced by 48% and 156% respectively.
Trading in Access Bank Plc, Zenith Bank Plc and AXA Mansard Insurance Plc accounted for 1.439 billion shares worth N13.881 billion in 2,972 deals, contributing 52.23% and 34.44% to the total equity turnover volume and value respectively.
Outlook for the week
We expect to see some mixed activity this week as some investors hunt for bargains and others take profits with low fixed income yield influencing decision.
FIXED INCOME MARKET
Participants in the FGN bond market traded with caution in anticipation for the Yuletide holiday. The activity was majorly driven by sell-side activity across the bond curve with Average benchmark yields rising by 63bps to close at6.19%.
The NTB market remained quiet in all the trading sessions last week with average benchmark yields falling by 2bps to 0.34%.
At the Eurobond, the market, the new strain of coronavirus, fear of crude oil demand slump and its implied impact on crude oil prices held investors in a cautious sentiment with a bearish bias across tickers. Consequently, the average benchmark yields rose by 18bps to 5.67%.
Outlook for the week
In the absence of any catalyst to drive the market, we expect the market to trade sideways as the year winds to a close.
GLOBAL MARKETS
The US S&P 500 and Dow Jones indices both advanced by 0.75% and 0.70% following upbeat on the new stimulus package. Other global stocks also closed positive safe UK FTSE with concerns about rising numbers of coronavirus cases and update on post-Brexit trade deal impacting bearish sentiments. Notably, German DAX and French CAC advanced by 1.17% and 1.10% while UK FTSE waned by 0.41%.
Outlook for the week
We expect reactions on the UK post Brexit deals and development from the US stimulus package to buoyed market performance this week.
It’s Christmas and everyone is getting pumped and ready to create special moments and have super fun with friends, family, fried rice, and chicken. Did we get it right? What are your plans for the festive season?
We know planning is not the easiest thing to do during the festive period, however, for 10 lucky people, the story is different. Star Radler went the extra mile to raise the excitement with tailored-down plans, all these guys had to do was ‘Show Up’ and they did.
You would recall that shortly after Star Radler relaunched with a new look and its new variant, Erica and Elozonam announced a Star Radler Moments Challenge on their social media pages so fans could get the chance to win a Star Radler Makeover for Christmas.
As a young and dynamic brand, Star Radler launched the challenge to encourage creativity and fun among the consumers. All they had to do was show how creative they could be in capturing their favourite moments with Star Radler.
Also, they shared reasons why they deserved to win the special makeover. It was a tough call as there were so many entries, however, only ten lucky people got to celebrate Christmas early with two of their favourite celebrities, Erica Nlewedim, Elozonam Ogbolu, and of course, Star Radler.
On Wednesday, December 23rd, the winners started with the ladies opting for trendy hairstyles and fancy nail-dos, while the guys all looked refreshed with the nice and clean haircut. Once they were done getting their hair done, the excited winners took turns in getting a manicure and pedicure care at the popular Kuku’s Hair Salon in Lekki.
Afterwards, Star Radler treated them to an exotic Lebanese cuisine at Salma’s Restaurant where one of the winners revealed it was her birthday. To make the moment extra special for her, Elozonam unleashed his musical side with a sweet ‘Happy birthday’ song. Who knew Elozonam had such a lovely voice?
Once dinner was over, everyone took to their IG live for some more Radler moments with the celebrities. To cap it all, they received some trays of Star Radler while one of the winners presented his brand of jean-styled shirts to the celebrities as gifts. We bet you wished you participated in the challenge.
Don’t worry, the year is not over yet. First, it was a tour. Now, the duo has taken fans out for a makeover and dinner. With Erica and Elozonam teaming up with Star Radler, who knows what will come next?
The local bourse halted its 8-day rally as the benchmark All Share Index (ASI) closed flattish with a bearish bias, down 1bp in Thursday’s session to settle at 38,800.01 points. The flattish performance reflects sell pressures in WAPCO (-4.8%) and GUARANTY (-0.6%) which erased price gains in FLOURMILL (+5.1%), OANDO (+8.7%) and FBNH (+1.4%).
Reflecting the bearish bias, YTD return fell to 44.6% while investors’ wealth declined as market capitalization printed lower to settle at N20.3tn. Activity level was dull reflective of the lower trading hours on Thursday as volume and value traded dipped 74.0% and 57.5% to 389.72m units and N8.0bn, respectively.
Across sectors, the performance was mildly bullish as three of the five major sectors under our coverage edged northwards. Leading the gainers, the Insurance index gained 2.1% following strong buying interest in MANSARD (+9.1%) and LASACO (+9.7%).
Similarly, the Oil & Gas and Consumer goods indices climbed 1.0% and 0.3% respectively following price upticks in OANDO (+8.7%) and FLOURMILL (+5.1%). On the other hand, the sell pressures in WAPCO (-4.8%) pulled the Industrial Goods index lower by 0.3%.
Lastly, the Banking index trailed, edging lower by 0.2% as southward movements in key tickers GUARANTY (-0.6%) and UBA (-0.6%) weighed on the index.
Investor sentiment weakened albeit remaining strong, falling to 2.9x from 3.7x in the previous session as 23 stocks gained against 8 decliners. Thursday’s trading session gives little away in judging investor’s sentiment and market direction.
However, we note that the market remains in the overbought region and could indicate an imminent reversal following large-cap stock-specific led rallies in recent trading days.
Following the initial directive of the Nigerian Communications Commission (NCC) to suspend new SIM card sales and activations, industry stakeholders met with the Honourable Minister of Communications and Digital Economy, Dr. Isa Ali Pantami on December 14, 2020.
The meeting was to provide further clarify on the NCC’s directive and to chart a course of action, specifically regarding:
Affirmation of the directive to totally suspend the registration of new SIMs by all operators.
Operators to require all their subscribers to provide valid NINs to update SIM registration records.
The submission of NINs by subscribers to take place within two weeks (from December 16, 2020, to December 30, 2020).
After the deadline, all SIMS without NINs are to be blocked from the networks.
A Ministerial Task Force comprising the Minister and all the mobile network operator Chief Executive Officers (CEOs), among others, is to monitor compliance by all networks.
Violations of this directive will be met with stiff sanctions, including the possibility of the withdrawal of operators’ operating licences.
MTN Group furthers financial inclusion – www.brandspurng.com
The primary aim of the exercise is to create one centralised, reliable identification database.
On December 21, 2020, the National Task Force on NIN and SIM Registration met with the Honourable Minister and major stakeholders and extended the deadline for subscribers to update their SIM registration records with NIN as follows:
Three weeks’ extension for subscribers with NIN (From December 30, 2020, to January 19, 2021); and
Six weeks’ extension for subscribers without NIN (from December 30, 2020, to February 9, 2021).
These extensions provide an opportunity for our subscribers to update their SIM records.
According to the National Identity Management Commission (NIMC), about 43 million NINs are registered on the NIMC database. This means that approximately 1 in 4 Nigerians have a NIN.
As an industry, and as MTN Nigeria Communications PLC (MTN)in particular, we welcome the deadline extension and will work to play a meaningful role in resolving this matter.
In this regard, MTN and other operators have been issued a NIN registration licence, which will result in the integration of our registration system with the NIMC and facilitate NIN enrolment in the country. We have proactively enabled different interfaces to allow customers to upload their existing NINs. So far over eight million subscribers have uploaded their NINs.
The directive means that while recharge activity and other services continue to be available, operators cannot add new subscribers.
MTN Nigeria remains committed to supporting the Government’s efforts to create a secure and sustainable digital economy and steadfast in our drive to assure compliance with regulations.
For the global banking industry, the potential for economic recovery in the near term remains uncertain. The pandemic is set to pose a double-pronged problem for the industry in the months and years to come.
According to the research data analyzed and published by Comprar Acciones, in the first stage, banks will suffer severe credit losses. During the period between 2020 and 2021, foregone revenue will amount to $1 trillion. Loan loss provisions for the same period are projected to reach $1.9 trillion.
The second stage is estimated to run from 2020 up to 2024. Within that five-year period, banks are estimated to lose $3.7 trillion of revenue.
Estimated Losses of the Global Banking Industry (2020-2024)
Source: McKinsey
Based on the report, this is the equivalent of over six months of industry revenue that will be lost and never recovered. This figure is the base scenario and could go as high as $4.7 trillion.
A revenue loss of $3.7 trillion would be a 14% fall compared to pre-pandemic growth projections.
During the third quarter of 2020, banks around the world set aside $1.15 trillion as loan-loss provisions (LLPs). This was much higher than the amount of provisioned throughout 2019.
Due to forbearance programs and government support, banks have yet to take substantial write-offs. But McKinsey points out that this state of suspended animation is unlikely to last forever. Based on its base scenario, in the coming years, LLPs will surpass those of the Great Recession.
US Banks Loan Loss Provisions to Soar to $318 Billion between 2020 and 2022
However, a Deloitte report points out that for the banking industry, the economic impact of the pandemic is not on the same scale as that of the 2008 Global Financial Crisis (GFC).
For the US banking sector, it estimates that between 2020 and 2022, LLPs could go as high as $318 billion. That would be equivalent to 3.2% of loans.
In the first three quarters of 2020, LLPs jumped in all major economies but remained below the levels seen in the GFC.
The top 100 North American banks had the highest figure of $130.9 billion while for the top 100 US banks, the total was $72.2 billion. In Asia-Pacific (APAC), the top 100 banks set aside a total of $115.2 billion and in Europe, $89.4 billion.
Losses are to be expected in every segment. But the report highlights that they might be most acute for the credit card category as well as for SMB loans and commercial real estate.
SP Global projects a $2.1 trillion credit loss for banks across the globe in 2020 and 2021. In 2020 alone, the loss is estimated to reach $1.3 trillion. This would be more than double the level recorded in 2019, at $603 billion. The figure is estimated to drop to $825 billion in 2021.
60% of the losses forecast in the report are expected to take place in APAC. From the $926 billion increase in credit losses in 2020 and 2021, APAC will account for $518 billion. China will dominate with $398 billion in credit losses.
North America will account for $240 billion of the increase, while Western Europe will account for $120 billion.
According to SP Global, pre-provision earnings should be able to absorb the losses. Further upticks would, however, take a toll on banks’ ratings, with some recording net losses.
Average US Banks ROE to Fall to 5.6% in 2020, Rebound to 11.7% by 2022
According to Deloitte’s baseline economic scenario forecast, the 2020 average Return on Equity (ROE) for the US banking industry could fall to 5.6%. But by 2022, it could rebound to 11.7%.
For the top 100 banks in North America, APAC and Europe, the estimated average ROE could fall by three percentage points to 6.8% in 2020.
In North America and Europe, they are not expected to recover to pre-pandemic levels in the near term. However, in APAC, they might get close to the pre-COVID average of 9.2% by 2022.
On the bright side, COVID has accelerated digitization trends. Based on the Deloitte report, 44% of retail banking customers claim to be using their primary bank’s app more frequently. For Brazilian digital bank Nubank, the number of accounts rose by 50% to 30 million.
Bank of America reported a 117% increase in check deposits via mobile on its business banking app. During H1 2020, Standard Chartered posted a 50% growth in retail banking digital sales.
Over the coming year, 48% of banks surveyed by Deloitte are planning to incorporate live customer interactions with bank employees via ATM. 46% are considering changing self-service touchscreens into contactless kiosks to facilitate transactional services.
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