HE PAST TWO

weeks have been

marked by frsts. 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 una-
wares. The deal is the frst in-
vestment by the largest Arab
lender in sub-Saharan Africa.
It is already present in Egypt,
Libya, Mauritania, South Su-
dan, Sudan and Tunisia.
Before the market could
catch its breath, news fltered a
few days later that the Invest-
ment Company of Dubai,
one of the emirates sovereign
wealth funds, had signed a
deal with Dangote Cement
to acquire 243.54m shares,
the equivalent of 2.6 per cent
in the countrys largest cement
producer, for $300 million. It
is the frst deal on the conti-
nent 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. Scep-
tics, on the other hand, cau-
tion that two deals, no matter
the size, do not a boom make.
For the two investors, these
deals have strategic connota-
tions. QNB has an ambitious
plan to become the biggest
bank in Africa and the Mid-
dle East by 2017. The Ecobank
deal fts right into that strategy
by giving it exposure to 36 SSA
countries in one coup.
With ICD, it signals the emir-
ates intention to get a foothold
in Africas biggest economy.
Only a few days before the deal,
it signed a Memorandum of
Understanding with Arik Air to
develop and expand their ex-
isting commercial relationship
and explore further areas of co-
operation. Where this cryptic
language will lead to is anyones
guess but an equity investment
in liquidity-challenged Arik is
not an outlandish thought.
Dangote Cement is targeting
to expand its Africa-wide ca-
pacity from its current 35 met-
ric tonnes per annum (MTA)
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 & efcient
plants coupled with pioneer
tax status in Nigeria, have ena-
bled Dangote Cement to post
net proft 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 ce-
ment in Nigeria, write analysts
at Imara Africa Securities.
There are analysts who in-
duce that the food of Middle
Eastern cash is dumb money
taken in by the spiel about Ni-
gerias potential in spite of the
Boko Haram insurgency in the
north-eastern part of the coun-
try, and a bufeted middle class
strained by the governments
focus on 2015 elections. They
are mistaken.
The two companies are listed
on the NSE and enjoy a trans-
parency 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 Ce-
ments register parades many
A-list shareholders including
Fidelity Management (16.3m
shares), Morgan Stanley In-
vestment Management (9.55m
shares), JPMorgan Asset
Management (UK) Ltd (6.68m
shares), Goldman Sachs As-
set Management Intl. Ltd.
Banks picking the
macroeconomic
agendas tab
! page VM2
Vanguard Markets | Monday, September 15, 2014 | Issue 010
FIXED INCOME & FOREX
The high rollers come
to town
JAYWALKER
Source: FMDQ
T
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.
Its relatively new & efcient plants
coupled with pioneer tax status
in Nigeria, have enabled Dangote
Cement to post net prot margins
above 50% for the past few years.
- Imara Africa
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
Segun Agbaje, GT Bank CEO, one of banks to have
successfully adjusted to regulatory shifts
Mo Fr
25.00
25.10
25.30
25.20
25.40
Tu We Th Fr
CNY/N
Mo Fr
200.0
200.5
201.5
201.0
202.0
200.8495
Tu We Th Fr
Euro/N
Mo Fr
250.0
251.0
253.0
252.0
254.0
252.0011
Tu We Th Fr
/N
Mo Fr
155.0
155.1
155.3
155.2
155.4
155.24
Tu We Th Fr
$/N
FOREX RATES
Inside
This week Spotlight
is on the Onyekachi
Onubogu, executive
director, Promasidor.
! Page VM6
! Page VM2
FOREIGN INVESTMENT INFLOWS
FGNBonds &TBills
FGN Bonds
Treasury Bills
29/08
120B
96B
72B
48B
24B
0
03/09 08/09 11/09
NITTY
29/08
12.00
11.60
11.20
10.80
10.40
10.00
03/09 08/09 11/09
1M
2M
3M
6M
9M
12M
NIBOR
29/08
15.00
14.00
13.00
12.00
11.00
10.00
03/09 08/09 11/09
O/N
1M
3M
6M
FX ($/N)
29/08
163.0
162.6
162.2
161.8
161.4
161.0
03/09 08/09 11/09
Bid
Ask
Source: Africawatchonline.com
25.304
HEN ANALYSTS
at Renaissance
Capital, an invest-
ment bank, speak, the market
listens. Last week they spoke.
The frm 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 eas-
ily digestible and actionable
chunks for readers. On Thurs-
day, it published a report, Ni-
gerian 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-Saha-
ran 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 Ni-
gerian banks operate in what
is, arguably, the toughest op-
erational and regulatory envi-
ronment 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 confdence, are now
eating up returns. This is a
classic case of you cannot eat
your cake and have it.
Other than this, the CBNs
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
infation using a combination
of measures, including hiking
the MPR and CRR, tightening
banks net open position limits
and introducing multiple op-
erational measures to keep the
exchange rate in check, writes
RenCap.
This has been largely suc-
cessful. In comparison with
its continental peers, since
2009 the naira has depreci-
ated by 9% against the dol-
lar, 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 infation score, the
countrys infation fell from
14.3 per cent in January 2010
to 8.3 per cent in July 2014. In
Ghana, infation 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 CBNs macroeconomic
successes have come at a cost
for Nigerian banks.
Watching all these big and
small regulatory mice nib-
bling away at banks profts,
the casual observer is tempted
to agree with Ladi Balo-
gun, group chief executive
of FCMB that banking will
become a utility very use-
ful and helpful to people with
stable but thin margins. His
advice? Non-bank fnancial
services sector is where the
Obiora Onyeaso
obiora.onyeaso@customsstreet.com
BUSINESS VM2
JAYWALKER
FOREIGN INVESTMENT INFLOWS
VM| Monday, September 15, 2014 | Issue 010
Banks picking the tab for the CBNs
macroeconomic agenda
W
(4.74m shares), and Black-
Rock Fund Advisors (4.33m
shares). If you can fool them,
you can fool anyone.
Other deals in the ofng in-
clude 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
ETIs biggest shareholder.
There is speculation in some
quarters that with QNBs entry
into Ecobanks share register,
Nedbank could be reluctant to
proceed. This is unlikely. Ned-
bank would be pressed to fnd
another lender that would al-
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 signifcant 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
equity with Ecobank that will
leapfrog us into a whole new
world, said Graeme Auret,
managing executive of corpo-
rate banking at Nedbank.
Moreover, the QNB deal
is a vote of confdence in the
leadership of Albert Essien,
the ETI chief executive, and in
consequence, Nedbanks wis-
dom in exercising the option.
It is almost impossible to see
Nedbank walking away with all
these considerations in mind.
One likely entrant to the Ni-
gerian deal space is Norges
Bank Investment Manage-
ment, Norways $893b sov-
ereign wealth fund. In June,
Yngve Slyngstad, the funds
chief executive, promised that
NBIM will ratchet up its ex-
posure to frontier markets as
it seeks to include quite a few
countries where were not in-
vested in Africa. Presently, it
has investments in South Af-
rica, Egypt, Morocco, and Ken-
ya. None is reported in Nigeria.
A recurring presence in both
ETI and Dangote Cement is
Public Investment Cor-
poration, South Africas big-
gest 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 banks 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, telecommuni-
cations and agribusiness sec-
tors 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 pan-
emerging markets private eq-
uity frm, exited its investment
in Diamond Bank. The Lon-
don-based frm acquired 19.1
per cent of the Nigerian lender
for $134 million in 2007. In
July, Emerging Capital
Partners, a buyout frm 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 Reinsur-
ance, an NSE-listed insurance
company. A month earlier, in
June, reports surfaced that
Mubadala Development
Company, an Abu Dhabi sov-
ereign 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 elec-
tions in February next year. If
the country gets its presidential
election slated for Valentines
Day next year right the love
afair is sealed. The only difer-
ence will be that the bride price,
read valuations, would have
gone way, way up. ;
The high rollers come to town
W Continued from Page VM1
The paradox is that these measures,
introduced during the governorship
of Sanusi Lamido Sanusi at the
Central Bank of Nigeria, to restore
investor condence, are now eating
up returns.
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 imple-
mentation 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 banks value of assets is calculated
as at the date of their audited fnancial statement for
the immediate preceding fnancial year
2014
2013
2012
2011
Source: Central Bank of Nigeria
growth will be, although ini-
tially at a much smaller scale
in areas such as microfnance,
asset management, broker-
age, advisory services, capital
markets, and insurance, he
divined. He is not far from the
truth. ;
3 Years of Material Regulatory Adjustments
Source: Renaissance Capital
Return on Average Equity (RoAE) for Sub-Saharan Africa banking systems
0%
2011 2012 2013 1H14
5%
10%
15%
20%
35%
40%
25%
30%
45%
50%
Data visualisation by Publican Media
Nigeria
Kenya
Ghana
D
J
N
O
S
A
J
J
M
A
M
F
J
D
N
O
S
A
J
J
M
A
M
F
J
D
N
O
S
A
J
J
M
A
M
F
J
Data visualisation by Publican Media
2012 2013 2014
DANGCEM
49B
DANGCEM, 12B
UBN
16B
MANSARD
12B
Biggest single day trades on the NSE (N)
UBN
9B
DANGFLOUR
30B
DANGCEM
46B
DANGCEM
9B ASHAKACEM
41B
ETI
35B
Source: Nigerian Stock Exchange
4%
28%
20%
44%
45%
47%
29%
26% 26%
20%
18% 18%
LEGEND
1
5-week trading bar:
This bar shows the volume of the companys 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 frst bar on the left (light blue) represents the
traded volume fve weeks ago. The next bar (grey) represents the volume 4 weeks
ago. The 5th and last bar (light blue) signifes 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.
2
Liquidity Rating:
This indicates the level of demand for a companys shares based on the number
of deals rather than volume done over the past week. Stocks are graded accord-
ing 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
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 classifcation 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 identifes 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.
SECTOR PRICE CHANGES - SEPTEMBER 08-12, 2014 MARKET REVIEW SEPTEMBER 08-12, 2014
TRADING UPDATE
DASHBOARD
Ticker
Friday 5-day 4-Week
5-Week
trading
1
52-Week price range
YtD PE EPS
Liquidity
Rating
2
Close
Change,
%
Volume Open Week Hi Week Lo
Change,
%
Volume Open
Change,
%
Volume Low Close ( ) High
7UP 147.73 5.00% 1,627 140.70 147.73 140.70 5.00% 2,897 126.78 16.52% 15,753 64.80 147.73 106.82% 30.05 4.46
ABCTRANS 0.70 -2.78% 3,860 0.69 0.74 0.68 1.45% 55,959 0.69 1.45% 692,478 0.65 0.97 -10.46% 3.33 0.21
ACCESS 9.59 -2.14% 299,916 9.35 9.80 9.03 2.57% 1,705,746 9.63 -0.42% 6,210,386 7.22 10.70 -0.10% 6.10 1.57
AGLEVENT 1.45 0.00% 200 1.40 1.52 1.40 3.57% 2,905 1.33 9.02% 12,709 1.25 1.86 -11.04% 6.75 0.23
AIICO 0.83 2.47% 6,777 0.80 0.83 0.80 3.75% 129,261 0.81 2.47% 988,818 0.74 1.00 -9.78% 5.46 0.15
AIRSERVICE 2.10 0.00% 30 2.00 2.10 2.00 5.00% 842 2.13 -1.41% 15,121 2.00 4.23 -37.31% 4.00 0.50
ASHAKACEM 32.14 -0.89% 4,723 32.69 33.50 30.95 -1.68% 13,149,679 33.94 -5.30% 13,262,075 13.87 34.20 46.89% 40.38 0.80
BETAGLAS 18.85 4.72% 268 18.00 18.85 17.98 4.72% 394 17.90 5.31% 26,015 10.69 22.10 30.63% 5.58 3.38
CADBURY 52.41 -2.37% 980 54.05 57.83 52.41 -3.03% 8,248 63.67 -17.68% 40,388 52.41 110.00 -46.07% 35.04 1.57
CAP 39.95 1.01% 874 39.00 39.95 39.00 2.44% 11,806 39.53 1.06% 22,645 35.96 51.66 -16.74% 23.53 1.67
CCNN 14.50 0.00% 1,348 14.09 14.70 14.09 2.91% 26,636 14.33 1.19% 116,033 8.00 15.98 20.93% 12.95 1.12
CONOIL 55.00 3.46% 2,164 55.10 58.89 53.16 -0.18% 9,563 64.80 -15.12% 49,376 25.92 79.80 -10.31% 15.93 3.34
CONTINSURE 0.98 -2.00% 30,883 0.99 1.00 0.97 -1.01% 46,063 1.00 -2.00% 315,340 0.93 1.29 -18.33% 6.12 0.16
COURTVILLE 0.53 -3.64% 2,750 0.57 0.57 0.53 -7.02% 5,872 0.55 -3.64% 52,751 0.50 0.89 -18.46% 4.82 0.11
CUSTODYINS 3.95 0.00% 1,854 3.96 4.00 3.85 -0.25% 20,049 3.85 2.60% 273,817 1.30 4.11 81.19% 16.46 0.24
CUTIX 1.90 0.00% 457 1.82 1.90 1.82 4.40% 3,323 1.94 -2.06% 35,445 1.59 2.27 -2.56% 9.58 0.19
DANGCEM 215.00 -0.98% 1,986 225.01 225.01 215.00 -4.45% 21,616 226.00 -4.87% 191,923 185.00 250.02 -0.54% 18.24 11.80
DANGFLOUR 6.80 2.56% 726 6.98 7.31 6.50 -2.58% 8,791 7.50 -9.33% 369,614 6.32 10.76 -33.53%
DANGSUGAR 8.50 -2.30% 29,287 8.15 8.90 8.13 4.29% 125,990 8.91 -4.60% 486,043 8.02 12.49 -24.78% 10.86 0.81
DIAMONDBNK 6.30 1.61% 30,840 6.17 6.30 6.10 2.11% 238,670 6.28 0.32% 1,424,838 5.86 8.20 -16.00% 3.81 1.65
ETERNA 3.99 4.45% 5,144 3.88 4.09 3.82 2.84% 45,578 3.80 5.00% 552,397 2.48 5.73 -15.64% 6.34 0.61
ETI 19.32 4.94% 26,620 17.86 19.32 17.35 8.17% 470,571 17.19 12.39% 18,862,904 12.40 19.32 17.88% 5.26 3.67
FBNH 14.52 0.00% 61,636 15.00 15.10 14.45 -3.20% 562,247 14.79 -1.83% 2,033,624 11.50 17.29 -10.92% 6.72 2.16
FCMB 4.15 -0.72% 1,468 4.26 4.27 4.08 -2.58% 239,325 4.25 -2.35% 1,110,192 3.01 4.59 8.07% 4.75 0.88
FIDELITYBK 2.00 1.01% 28,911 1.96 2.01 1.95 2.04% 373,927 2.00 0.00% 3,213,825 1.85 2.95 -25.93% 2.94 0.68
FIDSON 3.50 1.16% 4,423 3.69 3.70 3.30 -5.15% 20,813 3.14 11.46% 294,945 1.80 3.70 27.27% 13.92 0.24
FLOURMILL 63.00 1.53% 4,563 64.71 65.00 61.60 -2.64% 9,880 69.87 -9.84% 38,688 58.10 83.64 -23.00% 18.93 3.38
FO 230.01 2.68% 8,214 220.00 236.00 217.00 4.55% 19,047 222.10 3.56% 70,855 35.80 259.94 147.67% 50.86 4.63
GLAXOSMITH 63.17 -2.82% 12,148 62.70 65.70 62.70 0.75% 26,292 64.00 -1.30% 31,545 62.28 74.97 -9.76% 21.68 3.00
GUARANTY 29.16 -2.15% 72,341 29.82 30.15 29.01 -2.21% 898,082 28.90 0.90% 2,366,012 22.67 31.80 5.08% 8.93 3.27
GUINNESS 170.00 1.43% 2,524 181.00 181.00 167.60 -6.08% 13,921 189.50 -10.29% 41,103 162.00 266.70 -27.97% 21.83 7.88
HONYFLOUR 4.06 0.50% 8,013 4.15 4.20 4.00 -2.17% 60,957 4.01 1.25% 277,250 2.56 4.50 5.45% 11.94 0.34
INTBREW 28.90 1.37% 186 28.51 28.90 28.02 1.37% 9,506 26.66 8.40% 208,118 17.98 31.50 2.05% 44.84 0.63
JBERGER 61.01 -0.03% 421 63.00 63.99 61.00 -3.16% 6,742 64.00 -4.67% 26,803 59.18 76.45 -3.27% 9.49 6.74
LINKASSURE 0.50 0.00% 506 0.50 0.50 0.50 0.00% 506 0.50 0.00% 617 0.50 0.50 0.00% 12.57 0.04
MANSARD 2.50 1.21% 2,040 2.50 2.59 2.47 0.00% 4,862 2.54 -1.57% 268,427 1.95 2.73 0.00% 16.35 0.15
MAYBAKER 1.38 -4.83% 8,903 1.57 1.57 1.38 -12.10% 20,565 1.60 -13.75% 96,396 1.33 2.64 -45.88% 15.33 0.09
MOBIL 180.10 0.06% 134 174.00 180.10 174.00 3.51% 1,921 176.76 1.89% 15,016 102.02 182.00 55.26% 17.24 10.44
MRS 50.54 -4.95% 352 53.17 56.00 50.54 -4.95% 4,087 53.79 -6.04% 13,746 32.53 70.00 -2.28% 53.85 1.04
NAHCO 5.11 2.20% 10,163 5.00 5.20 4.98 2.20% 46,403 5.00 2.20% 202,665 4.56 6.46 -19.53% 15.98 0.32
NASCON 9.43 1.18% 6,847 9.48 9.99 9.31 -0.53% 35,947 9.86 -4.36% 166,289 9.31 15.10 -36.50% 8.98 1.05
NB 177.19 0.06% 9,241 176.10 178.00 171.15 0.62% 48,416 172.01 3.01% 324,253 140.00 189.00 7.38% 33.84 5.24
NEIMETH 1.03 -4.63% 1,817 1.05 1.10 1.03 -1.90% 11,994 1.12 -8.04% 73,817 0.79 2.08 -6.36%
NEM 0.76 -3.80% 21,739 0.80 0.80 0.76 -5.00% 85,501 0.80 -5.00% 993,473 0.55 0.97 -6.17%
NESTLE 1,013.00 0.26% 408 1,024.95 1,024.95 1,000.00 -1.17% 5,342 1,062.01 -4.61% 29,185 931.85 1,250.01 -14.30% 35.04 28.82
NIGERINS 0.50 0.00% 30 0.50 0.50 0.50 0.00% 3,201 0.50 0.00% 6,825 0.50 0.54 0.00% 25.00 0.02
NNFM 22.20 0.00% 0 19.95 22.20 19.95 11.28% 1,346 22.48 -1.25% 17,199 18.00 25.65 0.86%
OANDO 25.11 -0.36% 65,897 25.85 26.30 25.00 -2.86% 351,328 26.43 -4.99% 1,127,971 9.32 36.89 -6.06% 22.61 1.11
OKOMUOIL 33.50 0.09% 1,765 34.25 34.50 33.08 -2.19% 23,667 35.00 -4.29% 57,481 32.15 48.05 -25.27% 14.52 2.29
PAINTCOM 1.60 0.00% 1,000 1.52 1.60 1.52 5.26% 1,103 1.61 -0.62% 46,639 1.33 2.30 -17.95% 4.57 0.35
PORTPAINT 5.00 -1.96% 3,002 5.03 5.16 5.00 -0.60% 19,232 5.09 -1.77% 67,195 4.00 6.25 -4.76% 8.35 0.60
PRESCO 37.00 3.93% 5,222 36.99 37.00 35.46 0.03% 9,685 36.00 2.78% 41,506 32.00 49.00 -5.13% 4.42 8.38
PRESTIGE 0.50 0 0.50 0.50 0.50 0.00% 103 0.52 -3.85% 40,338 0.50 0.81 -20.63% 1.99 0.25
PZ 34.60 -1.14% 8,720 34.90 35.00 33.26 -0.86% 19,596 36.00 -3.89% 61,386 30.08 41.46 -6.48% 25.31 1.34
REDSTAREX 4.34 -4.82% 80,306 4.56 4.70 4.34 -4.82% 83,926 4.31 0.70% 132,875 4.01 5.35 2.12% 7.10 0.61
ROYALEX 0.58 -4.92% 20,011 0.57 0.63 0.57 1.75% 35,768 0.60 -3.33% 236,699 0.50 0.69 7.41% 5.79 0.10
RTBRISCOE 0.89 -7.29% 1,145 1.00 1.00 0.89 -11.00% 15,171 0.92 -3.26% 81,005 0.84 1.49 -36.88%
SEPLAT 655.26 -2.27% 109 679.88 679.88 650.00 -3.62% 2,924 680.00 -3.64% 9,837 590.00 735.00 8.34%
SKYEBANK 2.87 -2.71% 27,136 2.78 2.96 2.71 3.24% 251,357 3.10 -7.42% 1,192,599 2.70 4.67 -36.36% 3.44 0.84
SOVRENINS 0.50 0.00% 0 0.50 0.50 0.50 0.00% 300 0.50 0.00% 21,527 0.50 0.50 0.00% 3.36 0.15
STANBIC 30.00 0.00% 3,982 30.01 30.14 30.00 -0.03% 13,888 29.10 3.09% 218,818 18.01 31.50 34.29% 15.61 1.92
STERLNBANK 2.30 2.22% 48,882 2.24 2.30 2.15 2.68% 150,533 2.14 7.48% 2,404,977 2.09 2.74 -8.00% 3.65 0.63
TOTAL 180.10 0.89% 317 173.01 182.11 172.06 4.10% 1,858 182.00 -1.04% 19,059 146.26 195.50 3.92% 13.94 12.91
TRANSCORP 6.05 -3.20% 293,452 6.40 6.72 5.99 -5.47% 1,231,981 5.60 8.04% 6,132,780 1.34 7.08 39.40% 68.95 0.09
UAC-PROP 15.18 0.53% 2,038 15.21 15.93 15.10 -0.20% 8,648 16.40 -7.44% 56,041 12.05 21.31 -1.27% 6.90 2.20
UACN 58.00 -0.89% 10,395 58.60 59.99 57.20 -1.02% 265,251 60.21 -3.67% 418,044 42.58 67.85 3.59% 27.07 2.14
UBA 7.19 -0.14% 59,323 7.27 7.46 7.02 -1.10% 515,813 7.31 -1.64% 1,504,947 6.65 9.60 -21.42% 4.23 1.70
UBCAP 2.02 -1.46% 588,385 2.17 2.18 2.00 -6.91% 2,516,176 2.15 -6.05% 3,769,237 1.24 3.04 -11.01% 6.97 0.29
UBN 10.04 2.55% 8,793 8.56 10.89 8.56 17.29% 152,018 8.20 22.44% 238,006 8.00 10.89 4.47% 54.94 0.19
UNILEVER 47.75 -0.54% 919 47.15 48.01 46.22 1.27% 20,904 49.00 -2.55% 150,189 42.50 64.00 -9.91% 35.03 1.37
UNITYBNK 0.50 0.00% 3,662 0.50 0.50 0.50 0.00% 39,004 0.50 0.00% 622,073 0.50 0.72 0.00% 4.65 0.11
VITAFOAM 4.30 0.23% 3,814 4.13 4.30 4.11 4.12% 17,220 4.18 2.87% 66,203 3.66 5.70 -10.60% 6.06 0.71
WAPCO 119.70 1.44% 986 117.00 119.70 114.03 2.31% 62,026 118.60 0.93% 127,985 88.92 136.73 4.09% 14.62 8.10
WAPIC 0.73 0.00% 15,565 0.73 0.76 0.72 0.00% 139,646 0.78 -6.41% 685,842 0.66 1.48 -35.40% 10.43 0.07
WEMABANK 0.91 -2.15% 7,813 0.91 0.95 0.89 0.00% 60,751 0.97 -6.19% 347,912 0.89 1.40 -28.91%
ZENITHBANK 24.60 2.50% 269,768 24.25 24.60 23.85 1.44% 678,410 23.88 3.02% 2,104,092 19.30 27.40 -1.60% 7.11 3.46
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 fnally 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 Con-
sumer 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 Refnery 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 2 1 2
Conglomerates 2 2 1
Construction/Real Estate 3 6 0
Consumer Goods 8 11 12
Financial Services 9 34 14
Healthcare 3 4 3
ICT 1 9 1
Industrial Goods 4 11 6
Natural Resources 0 5 0
Oil & Gas 4 2 5
Services 6 8 4
MARKET DATA VM3
VM| Monday, September 15, 2014 | Issue 010
Declined Unchanged Advanced
MARKET SNAPSHOT
3-MONTH PRICE TREND OF BELLWETHER STOCKS
LEGEND
ACCESS 9.59
10.70 7.22
YtD
-0.01
-0.10%
-0.21
-2.14%
0.24
2.57%
3M 1W
PE 6.10
0.24
June July August
08/09
M T W T F
12/09
ASHAKACEM 32.14
34.20 13.87
YtD
10.26
46.89%
5.14
19.04%
-0.55
-1.68%
3M 1W
PE 40.38
0.55
June July August
08/09
M T W T F
12/09
CADBURY 52.41
110.00 52.41
YtD
-44.77
-46.07%
-25.39
-32.63%
-1.64
-3.03%
3M 1W
PE 35.04
1.64
June July August
08/09
M T W T F
12/09
CAP 39.95
51.66 35.96
YtD
-8.03
-16.74%
0.96
2.46%
0.95
2.44%
3M 1W
PE 23.53
0.95
June July August
08/09
M T W T F
12/09
CCNN 14.50
15.98 8.00
YtD
2.51
20.93%
3.80
35.51%
0.41
2.91%
3M 1W
PE 12.95
0.41
June July August
08/09
M T W T F
12/09
CONTINSURE 0.98
1.29 0.93
YtD
-0.22
-18.33%
-0.05
-4.85%
-0.01
-1.01%
3M 1W
PE 6.13
0.01
June July August
08/09
M T W T F
12/09
FCMB 4.15
4.59 3.01
YtD
0.31
8.07%
0.02
0.48%
-0.11
-2.58%
3M 1W
PE 4.75
0.11
June July August
08/09
M T W T F
12/09
GUARANTY 29.16
31.80 22.67
YtD
1.41
5.08%
-2.11
-6.75%
-0.66
-2.21%
3M 1W
PE 8.93
0.66
June July August
08/09
M T W T F
12/09
MANSARD 2.50
2.73 1.95
YtD
0.00
0.00%
0.00
0.00%
0.00
0.00%
3M 1W
PE 16.35
0.00
June July August
08/09
M T W T F
12/09
OANDO 25.11
36.89 9.32
YtD
-1.62
-6.06%
5.11
25.55%
-0.74
-2.86%
3M 1W
PE 22.61
0.74
June July August
08/09
M T W T F
12/09
STANBIC 30.00
31.50 18.01
YtD
7.66
34.29%
3.45
12.99%
-0.01
-0.03%
3M 1W
PE 15.61
0.01
June July August
08/09
M T W T F
12/09
UBA 7.19
9.60 6.65
YtD
-1.96
-21.42%
-0.95
-11.67%
-0.08
-1.10%
3M 1W
PE 4.23
0.08
June July August
08/09
M T W T F
12/09
DANGCEM 215.00
250.02 185.00
YtD
-1.16
-0.54%
-9.25
-4.12%
-10.01
-4.45%
3M 1W
PE 18.24
10.01
June July August
08/09
M T W T F
12/09
FIDELITYBK 2.00
2.95 1.85
YtD
-0.70
-25.93%
-0.06
-2.91%
0.04
2.04%
3M 1W
PE 2.94
0.04
June July August
08/09
M T W T F
12/09
GUINNESS 170.00
266.70 162.00
YtD
-66.01
-27.97%

-10.73
-5.94%
-11.00
-6.08%
3M 1W
PE 21.83
11.00
June July August
08/09
M T W T F
12/09
MOBIL 180.10
182.00 102.02
YtD
64.10
55.26%
53.04
41.74%
6.10
3.51%
3M 1W
PE 17.24
6.10
June July August
08/09
M T W T F
12/09
OKOMUOIL 33.50
48.05 32.15
YtD
-11.33
-25.27%
-0.33
-0.98%
-0.75
-2.19%
3M 1W
PE 14.52
0.75
June July August
08/09
M T W T F
12/09
TOTAL 180.10
195.50 146.26
YtD
6.80
3.92%
8.81
5.14%
7.09
4.10%
3M 1W
PE 13.94
7.09
June July August
08/09
M T W T F
12/09
UNILEVER 47.75
64.00 42.50
YtD
-5.25
-9.91%
-2.74
-5.43%
0.60
1.27%
3M 1W
PE 35.03
0.60
June July August
08/09
M T W T F
12/09
DIAMONDBNK 6.30
8.20 5.86
YtD
-1.20
-16.00%
-0.42
-6.25%
0.13
2.11%
3M 1W
PE 3.81
0.13
June July August
08/09
M T W T F
12/09
FLOURMILL 63.00
83.64 58.10
YtD
-18.82
-23.00%
-7.00
-10.00%
-1.71
-2.64%
3M 1W
PE 18.94
1.71
June July August
08/09
M T W T F
12/09
HONYFLOUR 4.06
4.50 2.56
YtD
0.21
5.45%
-0.09
-2.17%
-0.09
-2.17%
3M 1W
PE 11.94
0.09
June July August
08/09
M T W T F
12/09
NASCON 9.43
15.10 9.31
YtD
-5.42
-36.50%
-2.17
-18.71%
-0.05
-0.53%
3M 1W
PE 8.98
0.05
June July August
08/09
M T W T F
12/09
PRESCO 37.00
49.00 32.00
YtD
-2.00
-5.13%
0.43
1.18%
0.01
0.03%
3M 1W
PE 4.42
0.01
June July August
08/09
M T W T F
12/09
UACN 58.00
67.85 42.58
YtD
2.01
3.59%
-2.00
-3.33%
-0.60
-1.02%
3M 1W
PE 27.07
0.60
June July August
08/09
M T W T F
12/09
WAPCO 119.70
136.73 88.92

YtD
4.70
4.09%
9.20
8.33%
2.70
2.31%
3M 1W
PE 14.62
2.70
June July August
08/09
M T W T F
12/09
ETI 19.32
19.32 12.40
YtD
2.93
17.88%
2.52
15.00%
1.46
8.17%
3M 1W
PE 5.26
1.46
June July August
08/09
M T W T F
12/09
FO 230.01
259.94 35.80
YtD
137.14
147.67%
4.37
1.94%
10.01
4.55%
3M 1W
PE 50.86
10.01
June July August
08/09
M T W T F
12/09
INTBREW 28.90
31.50 17.98
YtD
0.58
2.05%
2.81
10.77%
0.39
1.37%
3M 1W
PE 44.84
0.39
June July August
08/09
M T W T F
12/09
NB 177.19
189.00 140.00
YtD
12.18
7.38%
2.20
1.26%
1.09
0.62%
3M 1W
PE 33.84
1.09
June July August
08/09
M T W T F
12/09
PZ 34.60
41.46 30.08
YtD
-2.40
-6.48%
-3.90
-10.13%
-0.30
-0.86%
3M 1W
PE 25.31
0.30
June July August
08/09
M T W T F
12/09
UAC-PROP 15.18
21.31 12.05
YtD
-0.20
-1.27%
-2.42
-13.75%
-0.03
-0.20%
3M 1W
PE 6.90
0.03
June July August
08/09
M T W T F
12/09
ZENITHBANK 24.60
27.40 19.30
YtD
-0.40
-1.60%
-0.70
-2.77%
0.35
1.44%
3M 1W
PE 7.11
0.35
June July August
08/09
M T W T F
12/09
TICKER 25.23
27.40 19.23
1YtD
0.23
0.92%
2.90
12.99%
0.01
0.04%
3M 1W
PE 7.29
0.01
May June July
21/07
M T W T F
25/07
FBNH 14.52
17.29 11.50
YtD
-1.78
-10.92%
-0.98
-6.32%
-0.48
-3.20%
3M 1W
PE 6.72
0.48
June July August
08/09
M T W T F
12/09
GLAXOSMITH 63.17
74.97 62.28
YtD
-6.83
-9.76%
-5.73
-8.32%
0.47
0.75%
3M 1W
PE 21.68
0.47
June July August
08/09
M T W T F
12/09
JBERGER 61.01
76.45 59.18
YtD
-2.06
-3.27%
-7.01
-10.31%
-1.99
-3.16%
3M 1W
PE 9.49
1.99
June July August
08/09
M T W T F
12/09
NESTLE 1013.00
1250.01 931.85
YtD
-169.00
-14.30%
-56.99
-5.33%
-11.95
-1.17%
3M 1W
PE 35.04
11.95
June July August
08/09
M T W T F
12/09
SEPLAT 655.26
735.00 590.00
YtD
50.46
8.34%
5.26
0.81%
-24.62
-3.62%
3M 1W
PE 0.00
24.62
June July August
08/09
M T W T F
12/09
3 4 5
9
13
10 11
12
6
8
14
7
2 1
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
MARKET DATA VM4
VM| Monday, September 15, 2014 | Issue 010
MARKET DATA VM5
VM| Monday, September 15, 2014 | Issue 010
MARKET SNAPSHOT
# 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
7 WAPCO 2.31 4.09
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 3.59
21 DANGSUGAR 4.29 -24.78
22 CADBURY -3.03 -46.07
23 7UP 5.00 106.82
24 INTBREW 1.37 2.05
25 DIAMONDBNK 2.11 -16.00
26 FCMB -2.58 8.07
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
33 STERLNBANK 2.68 -8.00
34 CONOIL -0.18 -10.31
35 SKYEBANK 3.24 -36.36
36 PRESCO 0.03 -5.13
37 OKOMUOIL -2.19 -25.27
38 CAP 2.44 -16.74
39 NEIMETH -1.90 -6.36
40 MAYBAKER -12.10 -45.88
WEEK-TO-DATE RETURN
-15%
-50%
-20%
-30%
-40%
-10%
0%
+10%
+20%
+30%
+40%
+50%
+60%
+70%
+80%
+100%
+90%
+120%
+140%
+130%
+110%
+150%
0% -10% -5% 5% 10% 15% 20%
Y
E
A
R
-
T
O
-
D
A
T
E

R
E
T
U
R
N
LAGGING
SLIPPING LEADING
IMPROVING
1
2
3
4
5
6
7
8
9
10
11
12
13
6
14
15
16
17
18
19
20
21
22
23
24
25
26
11
27
28
29
30
11 31
32
33
34
35
36
37
38
39
40
Bubble size = Market Cap
TRADING BREAKDOWN
BY SECTOR
Sector %
Industrial Goods 52
Financial Services 32 \ 84
Conglomerates 5 \ 7
Others 11 \ 6
05/09 11/09 09/09
13.4
13.6
13.8
14.0
14.2
2960
2970
2980
2990
3000
FGNBond Index
Market Value
YTD Return
INDEX PERFORMANCE
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
MARKET SNAPSHOT
Date Deals
Turnover
Volume
Turnover Value Traded Stocks
Advanced
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 signifes week-on-week change in value. This weeks value is shown on the left of the \ sign, and last weeks value on the right.
GLOBAL INTEREST RATES & INFLATION TARGETS
Central
Bank
Rate
Last Date
Change
%
Change
Infation
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 8.25% 05.12.2013 -0.50
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
Indices
ASI
NSE30
NSEBNK
NSEINS
NSECNSMRGDS
NSEOILGAS
NSELOTUSISLM
NSEINDUSTR
-1.18%
-0.21%
-0.73%
-0.03%
1.92%
0.71%
0.07%
-0.11%
-0.49%
0.07%
1.80%
1.78%
-1.75%
-0.46%
-1.61%
-0.63%
-1.59%
YtD, % WtD, % DtD, %
-2.63%
-3.01%
-6.84%
-9.30%
37.42%
-8.07%
3.25%
-10% -4% -6% -8% -2% 0% 4% 2%
Mo Fr
51,10
51,30
51,70
51,50
51,90
51,247.71
Tu We Th Fr
J SE FTSE
Fr Th
6,700
6,750
6,850
6,800
6,900
6,806.96
Tu We Th Fr
FTSE 100
Mo Fr
40,50
40,70
41,10
40,90
41,30
40,672.94
Tu We Th Fr
NSEASI
Mo Fr
1,970
1,980
2,000
1,990
2,010
1,985.54
Tu We Th Fr
S&P 500
ART AS AN ALTERNATIVE INVESTMENT
EDITOR: MIDENO BAYAGBON
GROUP BUSINESS EDITOR:
OMOH GABRIEL
CONTENT DIRECTION:
OBIORA TABANSI ONYEASO
DESIGN & ILLUSTRATION:
PUBLICAN MEDIA
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 associa-
tion with Customs Street Advisors Limited, a specialist communications
consultancy.
Vanguard Media Limited,
Vanguard Avenue, Kirikiri Canal,
P.M.B.1007, Apapa.
Website: www.vanguardngr.com
ISSN 0794-652X
Published by
In Association With
ARENA VM6
VM| Monday, September 15, 2014 | Issue 010
T HIS 4OTH
birthday celebra-
tion in 2013 Kachi
Onubogus visibly elated
mother shared a story of how
her son had always had an
entrepreneurial fair. She told
the guests seated in the Shell
Hall of MUSON Centre that
during his National Youth
Service orientation he fgured
that he could start a small ven-
ture providing other corpers
with the popular ogi pap made
from fermented cornfour.
The hall burst into laughter.
Until he hit on the idea the
raw material was being dis-
carded at the camp. Prior to
that the budding businessman
had had other successful mon-
ey-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 man-
ner, unassuming nature, and
perennial smile mask a highly
competitive streak.
Those little beginnings
were long ago. In February,
Onubogu was named execu-
tive director (commercial) at
Promasidor Nigeria, makers
of Cowbell milk, Loya milk,
and Onga seasoning. He is
credited with driving the
multi-billion naira companys
popularity since he joined in
2010. He was poached from
Prosperity Capital Manage-
ment, a global fund manage-
ment company, where he
was the associate director in
its Nairobi ofce. In a career
that has traversed every re-
gion in sub-Saharan Africa,
a memorable highlight is his
conception of the Udeme
campaign for Guinness, when
he worked as marketing man-
ager in Diageos Nigeria op-
erations.
Onubogus dexterity in the
art of selling, and the hard
sciences were evident in the
course of study he selected
at the university. He gradu-
ated with fying colours from
the physics department of
the University of Jos. After
amassing years of practical
experience, he went on to
earn an MBA from Gordons
Institute of Business Sci-
ences, University of Pretoria
in South Africa. He has also
participated in the Advanced
Management Program (AMP)
at the University of Pennsyl-
vanias prestigious Wharton
Business School.
His background in the sci-
ences places him at a distinct
advantage. Colleagues speak
of his obsession with data and
identifying causal relation-
ships in customer behaviour.
He reminds team members
that if Promasidor could steal
the milk of the table of more
established brands when it
entered the market, it knows
that the day it grows compla-
cent is the day it gives up its
crown. Staying on top means
staying focused on the mar-
keting discipline that helped
its brands win mindshare.
His marketing savvy paved
the way to the engagement
of a new generation of en-
tertainers and showbiz per-
sonalities as embodiments of
brands.
He is one of a visible set of
young Nigerian executives
headhunted from the Dias-
pora to assume senior leader-
ship positions in companies
over the last decade. These
men and women were edu-
cated here, started their ca-
reers here, then went abroad
to study, in pursuit of new op-
portunities, or were seconded
overseas by their employers.
Having worked with the best
and brightest in world-class
companies, they were tempt-
ed to return home to contrib-
ute their quota to national
development. Their qualifca-
tions are not in doubt.
A private crusade he be-
gun last year to equip Iyi-Enu
Hospital, a missionary hos-
pital in his home town, Ogidi
in Anambra State, brings him
fulflment. He started a cam-
paign to raise N15 million to
buy medical equipment for
the treatment of cardiovascu-
lar diseases at the medical fa-
cility after reading that more
than thirty million Nigerians
sufer from heart related ail-
ments 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 en-
vironment, he said. But this
is no ordinary change. It is a
change that could save mil-
lions of lives. ;
SPOTLIGHT
Onyekachi Onubogu, ED, Promasidor, marketing whiz
A
HIS WEEK, WE
will be bringing to
you the frst in our
book review series. We will
start with a review of an in-
sightful book, Art as an In-
vestment? A Survey of Com-
parative 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 frms, stock exchanges
and hedge funds. Therefore,
it is no surprise that she ini-
tially approached the art busi-
ness with the mindset that the
rules of these fnancial players
could be applied fairly easily
to art, to produce a more ef-
fcient system of trading.
The author sets out to ques-
tion the validity of claims
about arts capacity to gener-
ate 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 fnancially-minded
professionals against the art-
dealing community, who spurn
their sophisticated models and
analytical methods.
These difering opinions
set the stage for Gerlis dis-
cussion 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 user-
friendly guide published by
Lund Humphries in Feb-
ruary 2014, opens up to an
introduction on the risks and
returns of high-end art. The
author brings to bear her f-
nancial expertise and solid
frst-hand knowledge of art
and its markets. She draws
on extensive research and in-
terviews with key players in
these other markets, as well
as her own experience, to
clarify the specifcs of art as
an asset class.
Gerlis kicks of her discus-
sion 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 intermedi-
aries including an estimated
23,000 auction houses, as
well as 375,000 art dealers,
globally.
However, she argues that
most analyses of the art mar-
ket 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 se-
rious investment, by far the
biggest problem is valuation.
She explains that even in the
more opaque fnancial mar-
kets, such as private equity,
there are considerably more
data points from which to cre-
ate indexes, assess risk and at-
tempt to gauge returns.
Next week, in our continu-
ing series of this review, we
will take a closer look at more
of these risks while profering
insightful solutions to those
including investors and en-
thusiasts who seek to under-
stand the nature of the art
commodity. ;
Book review: Art as an Investment?
A Survey of Comparative Assets, by Melanie Gerlis
Oliver Enwonwu
is the director of leading Lagos
gallery, Omenka and president of
the Society of Nigerian Artists.
oliver@omenkamagazine.com
T
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.
Onyekachi
Onubogu
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.
Over the last decade, there has been
considerable debate over the suit-
ability of art as an investment asset.