Nestle Nigeria Plc Resilient Amid Challenging Operating Environment

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Nestle Nigeria Plc Resilient Amid Challenging Operating Environment

Nestle Nigeria Plc reported a topline growth of 4% from N203.14bn in 9M 2018 to N211.35bn in 9M 2019. YoY, cost of sales declined by 2%, while operating profit increased by 16% notwithstanding the higher operating expenses for the period. Profit before tax (PBT) grew YoY by 18%, while profit after tax (PAT) increased YoY by 11% to N36.84bn (9M 2018: N33.12bn) on the back of higher effective tax rate. Management declared an interim dividend of N25.00k (9M 2018: N20.00k).

Sustained topline growth amid pressured consumers’ wallet

Nestle continues to impress, though at a slower pace in driving revenue growth despite the challenging operating environment amid pressured consumers’ wallet. In its 9M 2019  report, revenue grew by 4% to N211.35bn in 9M 2019, driven by a 2% and 7% growth in the food and beverage segment of the business. Revenue from the food segment grew  YoY from N129.07bn to N131.80bn in 9M 2019, while revenue from beverage segment advanced from N74.07bn to N79.55bn in 9M 2019. We attribute this growth to brand loyalty and continued proactive stance by management in meeting the changing taste and needs of consumers by way of new product launch and innovative packaging.

On the other hand, while revenue grew, the group continue to optimize its production expense as evidenced by the YoY decline in cost of sales. Expressly, cost of sales declined  YoY by 2% from N116.98bn to N115.03bn in 9M 2019. Quarter-on-quarter (QoQ), it increased at a faster pace to revenue. While revenue grew QoQ by 3% to N69.44bn in Q3  2019, cost of sales rose faster by 5% to N39.21bn in Q3 2019, eroding the gains in production cost margin by 100bps from 53% in H1 2019 to 54% in 9M 2019. Though no disclosure notes for the cost of sales in the 9M report, we believe that the YoY decline was due to local input cost substitution. The group has successfully introduced the use of locally produced items such as soya bean, maize, cocoa, palm olein and sorghum in its products.  As a result, gross profit grew YoY by 12% from N86.15bn to N96.31bn in 9M 2019.

Higher operating expenses cushioned by lower net finance cost

The group’s operating expenses increased YoY by 7% from N36.79bn to N39.26bn in 9M  2019, driven by higher marketing and distribution expenses for the period. Marketing and distribution expenses grew YoY by 9% from N29.74bn to N32.31bn in 9M 2019, a reflection of competition as the group drive marketing and promotional activities to retain market share. Supported by a 1% decrease in administrative expenses, operating profit YoY grew from N49.36bn to N57.05bn in 9M 2019.

On the strength of a 61% decline in net finance cost from N1.27bn to N496mn in 9M 2019,  PBT grew by 18% to print N56.55bn in 9M 2019 (9M 2018: N48.09bn).

Historical Performance

N’m n 9M’15 9M’16 9M’17 9M’18 9M’19
Revenue 107,986 129,482 185,242 203,135 211,347
Cost of Sales (59,975) (77,549) (109,362) (116,985) (115,035)
Gross Profit 48,011 51,933 75,881 86,150 96,312
Operating Profit 24,676 25,370 43,085 49,360 40,434
Profit Before Tax 20,814 5,504 34,479 48,089 56,554

Source: Company accounts

Recommendation

We applaud management for consistent topline growth, albeit, at a slower pace amid the challenging operating environment. We expect the group’s goodwill, marketing and promotional activities to continue to support revenue growth. Also, we expect the group’s cost optimization drive to continue to support bottom-line.

Overall, we have a revised EPS of N63.55k and a fair value estimate of N1,088.41k on the stock. At the market price of N1,150.00k, the stock is trading at 5% premium to our fair value estimate. Thus, we revised our recommendation on the stock to a HOLD.

Financial Statement Summary

WSTC Securities Limited

First Bank, Kenya Airways, Others Shine At AfriSAFE 2019 Award

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First Bank, Kenya Airways, Others Shine At AfriSAFE 2019 Award

It was a night of glitz and glamour as safety professionals and organizations were honoured for exemplary HSE performance at the maiden edition of the Africa Safety Award for Excellence (AfriSAFE).

The event, hosted by ace comedian, Seyi Law held at Sheraton Hotel, Lagos, on November 8 and had in attendance several dignitaries and key industry personalities.

In his keynote address, the Chief Coordinator of the award, Femi Da-Silva said, “The fact that people come home safely to their families at the end of the working day as a result of your efforts- deserves to be recognized and celebrated.”

“The overall winners of these award categories were not selected by AfriSAFE organizers but by an esteemed panel of judges with years of experience in their respective career fields.”

In her own remark, the Chief Executive of Institutes of Occupational Safety and Health (IOSH), Bev Messinger, said that an estimate of 2.78 million people die worldwide every year from an accident caused by work adding that more must be done.

Noting that it was part of IOSH’s goal to reduce the number, she said, “AfriSAFE’s mission to deliver a world-class platform in Africa for the recognition and celebration of our profession, while promoting excellence and expanding safety awareness is close to our goals as a chartered body and charity.”

“As a leading professional body for safety and health professionals in Africa and beyond, we believe AfriSAFE is an incredibly important initiative to celebrate the safety and health profession and promote its influence in shaping a better, more sustainable world of work,” she added.

According to the judges, about 75 nominees were shortlisted from 1,223 entries from across four African regions for the award; and the 75 nominees were later streamlined to 30 winners.

Below is the complete list of winners from the Africa Safety Awards 2019:

  • AfriSAFE Team of the Year – VACC Technical Limited
  • AfriSAFE SME Award – Emobella Engineering Nigeria Limited
  • AfriSAFE Manager of the Year – Unwana Etuk
  • AfriSAFE CSR of the Year – Mainstream Energy Solutions Limited
  • AfriSAFE Governance Award – Aviam Offshore Engineering Ltd
  • AfriSAFE Innovation in OHS – Wellane Health Limited
  • AfriSAFE Campaign of the Year – MTN Foundation

AfriSAFE SECTOR AWARD

  • Not-for-Profit Category – Daystar Christian Centre
  • Power and Utility Category – Ikeja Electric
  • Oil and Gas Category – Green Fuels Limited
  • Maritime Category – African Circle Pollution Management Limited (ACPML)

Aviation Category

  • Kenya Airways

Manufacturing Category

  • De United Foods Industries Limited (DUFIL)

Health and Social Care Category

  • The Aga Khan Hospital, Kisumu

Banking and Finance Category

  • First Bank Nigeria Limited

Construction and Properties Activities Category

  • Dori Construction Nigeria Limited

AfriSAFE Merit Award

  • Dr. Ulrike Bollmann
  • Hon. Hakeem Dickson
  • Century Group (CG)

AfriSAFE Lifetime Achievement Award

  • Adenusi Patrick
  • Kofi O. Sagoe
  • Prof. Abdallah Amani Waheed El-Din

AfriSAFE Shining Star

  • Ugochi Obidiegwu

AfriSAFE Legend Award

  • Prince Julius Adewale Adelusi-Adeluyi OFR, MNI

AfriSAFE Professional of the Year

  • Engr. Jamiu Badmos

AfriSAFE Business Leader of the Year

  • Dr. Anthony Youdeowei

AfriSAFE Commendation Award

  • The Lagos State Fire Service
  • Surveillant Fire Ltd
  • Prince Segun Obayendo

In his reaction, the Procurement Manager of DUFIL, Owenaze Precious, said the night was a good opportunity for networking and could not wait to receive the award for the night.

“My expectation is very high. The opportunity to interact with other stakeholders. Apart from that, I want to see the peak where we will collect our awards. My organization was nominated for exceptional leadership in the area of safety which my organization has worked hard to get. We also have a zeal to do more and also exceed this feat that has given us this recognition.”

Also reacting, an emergency response Practitioner, Dare Akinfosile said the event was an improvement of HSE awards nights and congratulated the organizers for efforts put into the programme.

“It is obvious that a lot of things have been put into the programme. Everything seems to be going fine. It is better than what we have seen before,” he said.

Among dignitaries present at the event include the Founder of Juli-Pharmacy and Chairman MTN Foundation, Prince Julius Adelusi-Adeluyi; former Director-General, Bureau of Public Service Reforms, Dr. Joe Abbah; former director-general of the Lagos State Safety Commission (LSSC), Hon. Hakeem Dickson, amongst others.

The highlight of the event was a raffle draw contest sponsored by Revelation Properties Limited where 3 winners went home with different plots of lands. The winners were Ebuka Nduanya, Adejoke Ajayi and John Duru.

Shade Corner Episode 10 Nollywood Life

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Shade Corner Episode 10 Nollywood Life

We are Talking Nollywood For Life  in Episode 10 of Accelerate TV’s Shade Corner Season 3

Can a Shade Corner season go by without a whole episode dedicated to Nollywood? Not our style. The Shady Bunch and special guest Dobra outline their favourite virtues and anomalies of the Nigerian film industry with some shady and some specific references.

Lagos, Ogun Win 2019 Cowbellpedia Mathematics Competition

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Lagos, Ogun Win 2019 Cowbellpedia Mathematics Competition

In a thrilling, but energy-sapping mental duel last weekend, representatives of Lagos and Ogun States shrugged off all challenges to emerge victorious in the finals of season 5 of the Cowbellpedia Secondary Schools Mathematics Television Quiz Show sponsored by Cowbell Milk, the flagship brand of Promasidor Nigeria Limited.

In an electrifying final battle of the Junior category, Michael Enehizena of The Scholars Universal Secondary School, Ota, Ogun State put the crown beyond the reach of his fellow contestants by garnering 125 points at the end of the two-round encounter.

Enehizena who also had a perfect score in the qualifying examination in March, pushed Abdul-Quayum Alli, of Ota Total Academy, Ota, Ogun State, who had 115 points and David Charles of Graceland International Secondary School, Port Harcourt, Rivers State, who scored 110 points to the second and third place respectively.

From Left to Right: Master Michael Enehizena, 2019 Cowbellpedia Junior category champion; Mr Anders Einarsson, Managing Director of Promasidor Nigerian Limited and Master Oghenero Ologe, 2019 Cowbellpedia Senior category champion after the finals of the Cowbellpedia Mathematics competition in Lagos last weekend.

Ebube Okafor of Saint Francis Catholic Secondary School, Idimu, Lagos State and Alonge Esmond of The Scholars Universal Secondary School, Ota, Ogun State had earlier crashed out after the first 12 questions in the first round, while Ernest Ofoama of Makurdi International School, Makurdi, Benue State, fell after a tie-breaker at the end of first round.

The 14-year old Enehizena who dedicated his victory to God and his parents explained that he ‘practised hard and prayed harder’ during the competition. “I am always very excited about the way the Cowbellpedia winners are celebrated. We see them on the television screen and read about them and their schools in the papers and online. I am excited and grateful to God that it is my turn to be celebrated now,” Enehizena who aspires to study Mechanical Engineering told journalists outside the studio.

His teacher, Daniel Ogunleye commended him for his wonderful performance and commended Promasidor for exposing his great talent through the Cowbellpedia initiative.

The Senior category contest was equally exhilarating as Oghenero Ologe of Zionfield Pinnacle School, Ikorodu, Lagos State took the crown at the expense of Akinyemi Dabira of The Ambassadors College, Ota, Ogun State and Hezekiah Olabisi of Bibo Oluwa Academy, Ilesha, Osun who emerged first and second runner-up respectively.

Three other contestants: Onyeka Madumere of Scholars Universal Secondary School, Ota, Ogun State; Gift Omoelegbehan of Crescent International School, also in Ota, Ogun State and Famuyiwa Henry of Model Secondary School Alagbaka, Akure, Ondo State fell to superior firepower at the end of the first round.

An excited Ologe told journalists outside the studio that “it is nice and wonderful to be the champion.” A first timer in the Cowbellpedia Competition, Ologe revealed that he watched many episodes of the competition to sharpen his preparation ahead of the contest. “I did not participate in the Junior edition, but I was determined to make an impact and so, I practised hard,” the 15-year old said.

For their efforts, the two champions got N2 million each and an all-expense-paid education excursion outside the country.

The first and second runners-up in each category received N1.5 million and N1 million respectively, while the teachers of the top prize winners were awarded N500, 000. Those of the first and second runners-up received N400, 000 and N300, 000 respectively.

In his chat with journalists at the event, Managing Director of Promasidor Nigerian Limited, Mr Einarsson Anderson reiterated the commitment of the company towards education, saying it is the most important investment for the future of the children of Nigeria.

He saluted the finalists for their excellent performance while also assuring that Promasidor will continue to support the academic development of Nigerian children.

Mouka Ups Game for Sustainable Market Control, Earns NSP’s Endorsement

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Mouka Ups Game for Sustainable Market Control, Earns NSP’s Endorsement

One of Africa’s leading mattress and beddings company, Mouka, has recently introduced an improved version of its Orthopaedic mattress range, Regal and Regina to meet the physiological needs of users of the products.

This was recently disclosed by the company’s Senior Brand and Innovation Manager, Jide Odelola who also hinted that the effort provides the optimal capacity to address the needs of the orthopaedic market segment.

“We have enhanced the product architecture of our Wellbeing Regal mattresses to provide superior comfort and support for a quality night’s sleep. Manufactured using state of the art technology, which includes the combination of fibre and foam layers, the new Mouka Wellbeing Regal promises to be a delight to our consumers. In addition, Wellbeing Regal is covered in luxury Pama fabric which is breathable and provides a soothing feeling.” says Jide Odelola.

According to Odelola, the orthopaedic product which bears the endorsement of the National Association of Orthopedic Manual Therapists, now also has the endorsement of the Nigeria Society of Physiotherapy.

Explaining further, Odelola said: “In addition to the endorsement of the Mouka Wellbeing range by the National Association of Orthopedic Manual Therapists (NAOMT), these products are now endorsed by the Nigeria Society of Physiotherapy (NSP). This is a testament to health benefits that can be derived from sleeping on our Wellbeing range of products especially for those with orthopaedic needs.

Also speaking on the benefits of the enhanced products, Tolu Olanipekun, Mouka’s Head of Marketing said both products are not just the exclusive of users with orthopaedic needs but are designed to also address the basic sleep needs of all consumers, adding that the innovation is an offshoot of Mouka’s resolve to foster among Nigerians, a quality and healthy sleep culture for overall wellbeing.

“Even though our Wellbeing range has features which cater to those with orthopaedic needs, Mouka Wellbeing Regal or Regina can be used by any consumer who desires that degree of firmness in their mattress. These mattresses are designed to provide our consumers with a good night’s sleep for their total wellbeing,” she said

Toyota Introduces New Camry and Avalon All-Wheel Drive Sedans (Photos)

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Toyota Introduces New Camry and Avalon All-Wheel Drive Sedans (Photos)
  • Developed and Assembled in the U.S. Exclusively for North America
  • Available as Stand-Alone Option on Most Model Grades
  • Exemplary Fuel Efficiency with 202-Horsepower Engine
  • Shared TNGA Technology from RAV4

With winter about to spread its icy grip too much of the United States, Toyota is introducing the new all-wheel-drive Camry and Avalon models to help drivers get a better grip on the road. It’s the first AWD Camry since 1991, and the first-ever Avalon with AWD. The Toyota-developed Dynamic Torque Control AWD system will be available as a standalone option for the Camry LE, XLE, SE and XSE grades and on Avalon XLE and Limited grades.

In recent years, market demand for AWD passenger vehicles has increased significantly, due in no small part to the rising popularity of SUVs and crossovers. Midsize sedan customers outside the luxury category, however, have had relatively few AWD choices. Now, Toyota gives them two more with Camry, America’s best-selling midsize sedan for 17 years, and Toyota’s flagship sedan, Avalon.

Notably, the Camry AWD and Avalon AWD are North America-only models developed in the U.S. and assembled exclusively at Toyota Motor Manufacturing Kentucky.

Both the Camry AWD and Avalon AWD get a high-efficiency 2.5-litre DOHC four-cylinder engine teamed with an 8-speed Direct-Shift automatic transmission. Most Camry AWD grades have 202 horsepower, while the Camry XSE AWD and both Avalon AWD grades have 205 hp with dual exhaust. The new AWD system balances added traction with exemplary fuel efficiency.

The Camry and Avalon AWD models underscore Toyota’s commitment to the sedan category, a space that some brands have been leaving while Toyota has been expanding choices. Both the new-generation Camry and Avalon sedans offer hybrid models, and, this fall, both added their first-ever TRD (Toyota Racing Development) performance versions.

Toyota previously offered an AWD Camry in 1988-1991, called the AllTrac. The company appreciates the loyalty, patience and perseverance of all those customers and dealers who sent letters, emails, comments and texts asking for a modern AWD version of America’s favourite sedan.

Smarter All-Wheel Drive

To many car buyers, “all-wheel drive” may mean one thing, but there are many different AWD technologies on the market. Toyota found an ideal type of AWD for Camry and Avalon in its new-generation RAV4 compact SUV introduced for 2019. The Dynamic Torque Control AWD system provides effective traction for inclement and slippery weather while minimizing AWD’s typical drag on fuel economy. Admittedly, the system name is a mouthful; Camry and Avalon models equipped with it will carry a simple “AWD” badge on their trunk lids.

The Camry and Avalon AWD system can direct up to 50 per cent of engine torque to the rear wheels, in response to acceleration from a start or slippage at the front wheels.

Notably, when AWD isn’t needed, such as on long highway stretches, the electromagnetically controlled coupling on the front of the rear-drive axle can disengage the propeller shaft from the differential to prioritize fuel efficiency. The AWD is designed to re-engage in an instant when needed. AWD operation is transparent to the driver and passengers. On that note, the Camry and Avalon AWD models match their FWD counterparts in critical passenger space, trunk room, ride comfort, cabin quietness and vehicle agility.

All-American Effort

Neither the new-generation Camry nor Avalon was originally planned to have an AWD version, so the engineering team at Toyota Motor North America Research and Development in Saline, Michigan, developed them to meet the market demand for AWD sedans. The flexibility and components of the Toyota New Global Architecture (TNGA), and specifically the Camry and Avalon’s TNGA platform, allowed the team to develop the AWD versions in-house with improved efficiency.

Far more than a vehicle platform, TNGA brings together new approaches to engineering, design, production and materials. Its flexibility to develop different models from the same tools had already been proven. The North America-only Camry and Avalon AWD show that TNGA can be used by individual Toyota regions to tailor vehicles to that market’s local needs.

Since the RAV4 is also based on the TNGA platform, the opportunity to share components and basic engineering were built in. The team combined the upper body structure of the Camry and Avalon with the engine, transmission, transfer case and rear differential from the RAV4. The RAV4’s version of the multi-link rear suspension was adapted with some modifications and tuning to suit the sedans. Both the Camry and Avalon AWD use a modified version of the propeller shaft from the all-new Highlander SUV.

Adapting the AWD drivetrain to the Camry and Avalon required floor structure modifications, plus the use of an electronic parking brake and a saddle-style fuel tank with an optimized capacity for AWD models rather than the flat-style tank in the FWD models. Inside the car has the same rear-seat hip point height as the Camry and Avalon hybrid models. Despite the addition of a rear differential, the trunk floor height remains the same as in the FWD versions.

The transformation to AWD adds just 165 lbs. over the Camry FWD while the Avalon AWD weight is similar to that of its FWD V6 siblings.

Customers can expect the Camry and Avalon AWD to provide a similar ride and handling characteristics as the FWD models, plus of course the added traction capability. The suspension tuning, wheels, and tires differentiating the Camry and Avalon model grades carry over to the new AWD models. That means, for example, the Camry XSE grade features the same sport-tuned suspension and 19-inch wheels in FWD and AWD versions.

The Camry AWD will be the model year 2020 and arrive at dealerships in early spring. All AWD grades can get an optional Cold-Weather Package, which adds heated seats and mirrors on the LE, heated seats, mirrors and steering wheel on the SE, and heated steering wheel on the XLE and XSE. All other standards and optional features carry over from the FWD versions of the LE, XLE, SE and XSE model grades, including the latest Toyota Audio multimedia systems with Android Auto, Apple CarPlay and Amazon Alexa compatibility.

The Avalon AWD will be the model year 2021 and go on sale next fall. Both XLE and Limited AWD grades will receive a standard heated steering wheel while other standard and optional features carryover from the FWD versions.

Toyota Safety Sense-P

All 2020 Camry and Avalon models come standard with Toyota Safety Sense-P (TSS-P) a suite of cutting-edge active safety systems that includes:

  • Pre-Collision System with Pedestrian Detection (PCS w/PD)
  • Dynamic Radar Cruise Control (DRCC)
  • Lane Departure Alert with Steering Assist (LDA w/SA)
  • Automatic High Beams (AHB).

Blind Spot Monitor (BSM) with Rear Cross-Traffic Alert (RCTA) are available on Camry and standard on Avalon. Intelligent Clearance Sonar (ICS) with Rear Cross-Traffic Braking (RCTB) also are available on both models.

Star Safety

All 2020 Camry and Avalon models have 10 standard airbags and Toyota’s Star Safety System, which includes Enhanced Vehicle Stability Control, Traction Control, Electronic Brake-force Distribution, Brake Assist, Anti-lock Braking System, and Smart Stop Technology. All come equipped with a standard backup camera.

Tetra Pak launches 2019 Index Based on Ipsos global study

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Tetra Pak launches 2019 Index Based on Ipsos global study

New report focuses on the convergence between consumer perceptions of health and the environment, particularly in the food and beverage industry.

In a study carried out online with a total of 7,500 consumers in Brazil, China, France, Germany, India, Italy, KSA, Japan, Mexico, Russia, South Africa, Thailand, Turkey, UK, and USA, almost two-thirds (59%) think that their health and well-being are strongly affected by environmental problems.

Whether they are thinking about health or the environment, they are concerned about the same things: air and ocean pollution, microplastics, and poor drinking water. Nearly half (47%) believe that the purchase choices they make for their health will have an impact on the environment, and some also see this in reverse: 37% of consumers who plan to buy more environmentally sound products say that it will have a positive impact on their physical health, and 18% believe that it will improve their mental health. A driving factor for positive change almost everywhere is youth. Young people want and expect to be healthier and live longer than their parents. Moreover, their use of social media, their own experience of climate change and the global visibility of young activists all urge them to act more responsibly towards the environment.

Changing food and drink habits is seen as vital by consumers to live healthier, more environmentally friendly lives. However, there are barriers to change: cost, lack of knowledge, lack of availability, and lack of credible options. This provides an opportunity for brands to support consumers in their desire for change and to demonstrate purpose. The Tetra Pak-Ipsos study includes an analysis of varying levels of awareness, attitudes, and engagement around both health and the environment, to reveal six new consumer segments: Active Ambassadors, Planet Friends, Health Conscious, Followers, Sceptics and Laggards. Each group has its own distinct beliefs, values, change drivers and trusted information sources, creating clear opportunities for targeted products and engagement.

Read more about Tetra Pak 

Grange School holds 60th Anniversary and Fundraising Gala

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Grange School holds 60th Anniversary and Fundraising Gala

The Grange School alumni, former parents and friends of Grange will gather to celebrate 60 years of Grange School at its Anniversary Fund Raising Gala themed “Unfolding the Future”. This event will take place on Saturday, November 16th, 2019 at the Muson Center, Onikan Lagos, and will feature school performances by the student choir, orchestra and drama teams including goodwill messages and awards to well-deserving alumni, teachers and parents.

Grange School Lagos celebrated its Diamond Jubilee with the official unveiling of its Anniversary Logo by His Excellency, Vice President of the Federal Republic of Nigeria.

Several dignitaries, captains of industry and Governing board members have confirmed attendance at the black-tie/full traditional Fundraising gala aimed at celebrating the legacy, continuity and excellence of the school while at the same time injecting and increasing funds for school capital projects. The school is calling on its invited guests and well-wishers to partner with them and lend financial support to the school.

Grange at 60 Gala night is a follow-up to earlier programs marking the 60th-anniversary celebration of the school. The theme is in line with the vision to build new infrastructure aimed at creating a well-grounded child whose future dreams and aspirations can become a reality. It will be recalled the Vice President of Nigeria, His Excellency Prof. Yemi Osinbajo led other notable members of the society in a logo unveiling ceremony for this cause.

Grange School is a private boarding and day school in Ikeja, founded in 1958, with the aim to provide education equivalent in standard to that which is obtainable in the UK. The School has built its reputation as a pacesetter in the arts, sciences, classics and sports, by being able to set a precedent of quality education in the last 60 years. Grange School aims at ensuring students are taught to be role models and mentors capable of dealing with life’s challenges, especially after School.

According to Chairman of the Grange School Board of Directors, Mr. Dayo Lawuyi MON “the impressive academic accomplishment of the institution is not  just attributed to its dedicated teachers, intelligent students and their diligence, but also to Friends of Grange who have given us adequate support in so many ways over the years”

A guide to multiple time frame analysis in Forex.

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A guide to multiple time frame analysis in Forex.

MTFA: Multiple Time Frame Analysis in Forex Trading

Many traders make a big mistake by concentrating on only one chart and not paying attention to other timeframes. Sometimes this mistake can be worth a deposit. The habit of analyzing several time frames before the transaction will save the trader from concluding unprofitable transactions and the loss of finance. This concept is suitable for trading currencies, as well as stocks, precious metals, and any other assets.

Why You Need to Analyze Several Timeframes

By analyzing several timeframes, a trader can increase the number of profitable transactions and reduce risks on the exchange. The tactic is to analyze the price movement of the same asset but at different periods. On higher time frames, the general direction of the market is determined. While on the younger timeframes, points are searched for entering the market. This technique is suitable for working both in the direction of the trend and against it.

Let’s consider an example. When trading on an Alpari website on a 15-minute chart, an additional analysis of the 30-minute chart will not provide useful information. The difference between these periods is minimal, so the graphs will not differ much. But on the hourly chart, you can already identify clear trends and find the direction of the global trend. If you are analyzing a 5-minute chart, then the senior timeframe for analysis should be no less than half an hour.

Analysis of several time frames provides a broader view of the trading situation in the market. When evaluating only one chart, the trader overlooks a large amount of data.

Another reason why you need to take into account the data of a higher timeframe is that players trade it with large deposits. Accordingly, they set the main direction of the price concerning the younger chart. Following this direction, a trend or anti-trend will be formed. Therefore, if there is a pronounced uptrend on the older chart, then you should not conclude transactions for sale in a shorter period since most of them can go into the red.

For example, traders often rely on the data of a higher daily timeframe when trading on Forex. It helps to determine the direction of the transaction with intraday correctly.

In What Order to Analyze Time Frames

Some traders make a mistake by adding all timeframes to the chart at once. This leads to a long analysis, confusion, and overload of the workspace of the terminal or web platform. Therefore, for simultaneous analysis, it is recommended to use no more than three-time frames.

When trading on Forex, three TFs are usually used:

  1. Medium-term for transactions.
  2. Short-term for finding stop loss and take profit points. It should be four times less than the medium term.
  3. Long-term to determine the global trend.

For example, if transactions are concluded on a 4-hour chart, then stop-loss and take-profit points can be searched on the hourly chart, and the daily timeframe can determine the general trend.

Which countries reduced poverty rates the most?

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Which countries reduced poverty rates the most?

One of the goals of the World Bank Group is to reduce extreme poverty—defined as living on less than $1.90 per day in 2011 PPP—to less than 3% by 2030. We know that the world has seen tremendous progress in reducing extreme poverty since 1990. So, where in the world has poverty reduction been most successful?

The graph below shows 15 countries that experienced the largest annual average percentage point declines in extreme poverty rate between about 2000 and 2015, out of the 114 countries for which we can measure poverty in a comparable way over this period.

Annual change in extreme poverty rates (percentage points) 

Average of total extreme poverty percentage points change over the circa the year 2000-15 (start year-end year), top 15 countries.

In each of these countries, an average of at least 1.6% of the population moved out of extreme poverty every year. This meant 802.1 million fewer people were living in extreme poverty in these 15 countries between 2000 and 2015. For example, between 2000 and 2011, the extreme poverty rate fell by 36.9 percentage points in Tanzania, from 86.0% to 49.1%, for an annual average rate of reduction of 3.2 percentage points, which led to a reduction of 5.3 million in the number of Tanzanians living in extreme poverty. Tajikistan, Chad, and the Republic of Congo had average reductions in poverty of around 3 percentage points per year.

While extreme poverty remains endemic in low-income and conflict-affected countries, many of which are in Sub-Saharan Africa, there is cause for optimism even in these countries. Seven of the top 15 countries are in Africa, and two are on the World Bank Group’s Harmonized List of Fragile Situations for FY19.

Some of the 15 countries (China, Kyrgyz Republic, Moldova, Vietnam) effectively eliminated extreme poverty by 2015. In others (e.g. India), low rates of extreme poverty in 2015 still translated to millions of people living in deprivation. In some of the countries in Sub-Saharan Africa (e.g. Democratic Republic of Congo, Tanzania, Burkina Faso), extreme poverty rates, even after rapid reduction, remain above 40%.

These 15 high performers make up a diverse group of countries—by geographic location, average income levels, poverty rates, and size of the population and the economy:

  • Two of these countries were lower-middle-income countries in 2000 and rose to upper-middle-income status by 2015; eight were low-income countries in 2000 and rose to lower-middle-income status by 2015, and five remained low-income countries over the entire period.
  • The countries had vastly different poverty rates at the turn of the century—the extreme poverty rate ranged from 94.1% in DRC (2004) to 28.6% in Pakistan (2001).
  • Their populations ranged from 2 million for Namibia (2003) to 1.3 billion for China (1999).
  • The size of their economy ranged from $861 million for Tajikistan to $1.2 trillion for China in 2000, in current U.S. dollars.
Extreme poverty rate means population living in households with consumption or income per person below the extreme poverty line (US$1.90 (2011 PPP) per day per capita). * indicates data is not fully comparable between the start and end year.
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