KarlTom:
This 50% Tax on Foreign Exchange Gains is ill-intentioned and ill-timed.
Painfully, I do not think there is any hope for the major banks (except for lenghty court cases).
This 'insensitive' act by government is surely going to have an adverse effect on the FY2024 results...

It can't fly, it will be challenged in the court

Streetinvestor2:
You too get sense.Alhaji na really gently man.It is simply forget nigeria crude oil and withdrawal of all your refinery products to niaja market starting immediately from sell of diseal. Let the price of gas and aviation fuel go back to the formal high cost.When the situation gets so bad.The nigeria people will be the ones to come for the war .Allow them to continue thr importation till dollars get back to #2000.when they finish collecting from bank forex gain.I will see whr they go next.Just stick to paying your cooperate and other taxes.
Push back gas price to #1800 and just be laughing when the next food inflation figure comes out.

That's what happens when the wrong people with vested interests are running the government of a country. Doesn't it sound strange and funny that Alhaji is importing crude from far countries. The cabals with their wicked claws (structures) are really holding this nation hostage. May God deliver us.

Superex:
Please can someone interpret this and tell me if it's worth something. Thank you

53 units times 19.35 equals 1,025 naira and 55 kobo.

sky2891:


• The benchmark interest rate (MPR) was raised by 50bps to 26.75%.
• The asymmetric corridor was adjusted to +500/-100 bps around the MPR.
• The cash reserve ratio is retained at 45.00%.
• The Liquidity Ratio retained at 30.00%.
The next MPC will be held on September 23 – 24, 2024

One may assume the latest monetary policy decision by the Apex bank to be a relaxation in policy direction, but that's not the case.
It seems the regulator still sees an aggressive rate expansion as a "bullet-proof" means to tame surrounding risk/inflation.
The minor 50bps/0.5% increase in MPR (compared to past average upward revisions) is the CBN trying to mask her aggressive hawkish stance, when in fact, the adjustment on the asymmetric corridor suggest otherwise.

For context, a 400bps/4% increase in the SLF-side of the corridor from +100 to +500 and corresponding disproportionate review in the SDF-side from -300 to -100 infers that the CBN believes in, and is continually looking or should we rather say-- HOPING that an upward adjustment in rates can cover up for the negative real return created by the heightened surrounding risk/inflation.
The problem with this sought of "hope" is that the apex bank might be neglecting the base effect these upward reviews have on funding cost and by extension, the real side of the economy which the so-called policy seeks to address.

An asymmetric corridor of +500/-100 is the CBN effectively telling DMBs that we can afford to lend you money @ 31.75% but borrow from you @ 25.75% (ref: +5/-1% around the MPR)
That 2--6% min/max spread skewed in favor of the SLF-side of the corridor (above previous guide) clearly suggest that the bank may aside looking to speed-up liquidity sweep from the system, continues to attach a high risk premium to Naira assets. (hence the disproportionate margin btw the SLF and the SDF)

It seems the Apex bank is "trying to fight a battle but also instigating one at the same time".
I dare say that the CBN can not win this "war". ...not with this approach and especially NOT when the fiscal side is playing dumb!

Possible implication and inference:

-- More pressure on CoF.... likelihood of further increase in surrounding risk/inflation. Could be marginal MoM in Q3, but broader in Q4.

-- DMBs with preexisting healthy loan book and whose operating business model is investment driven than loan-based will do well.

-- From the micro-end, investing in coys/businesses with a "hedged capital structure" can not be overemphasized. At this point, the need for capital preservation is just as important as the quest for it's growth.

-- Rates in the FII market may remain elevated in the near term. Right now it's not just the banks that need your money, the CBN and in recent time the govt, also needs it!

-- Increased awareness and participation in investable securities as the quest to bridge the widening gap/disequilibrium btw purchasing power and surrounding risk increases. (one of the key reason the equity market may not reprise downward... driven by select anti-fragile coys and supported by favorable asset pricing)

-- Select healthy equity names from sectors that are bound to benefit from the "dislocation" in the macro-end will do well.

It is well

onegentleguy:


Some may assume the latest monetary policy decision by the apex bank to be a relaxation in policy direction, but that's not the case.
It seems the regulator still sees an aggressive rate expansion as a "bullet-proof" means to tame surrounding risk/inflation.
The minor 50bps/0.5% increase in MPR (compared to past average upward revisions) is the CBN trying to mask her aggressive hawkish stance when in fact, the adjustment on the asymmetric corridor suggest otherwise.

For context, a 400bps/4% increase in the SLF-side of the corridor from +100 to +500 and corresponding disproportionate review in the SDF-side from -300 to -100 clearly infers that the CBN believes in, and is continually looking or should we rather say-- HOPING that an upward adjustment in rates can cover up for the negative real return created by the heightened surrounding risk/inflation and Naira asset pricing.
The problem with this sought of "hope" is that the apex bank might be neglecting the actual impact these upward reviews have on funding cost and by extension, the real side of the economy which this so-called policy seeks to protect.

An asymmetric corridor of +500/-100 is the CBN effectively telling DMBs that we can afford to lend you money @ 31.75% but borrow from you @ 25.75% (ref: +5/-1% around the MPR)
That 200bps/2% margin skewed in favour of the SLF-side of the corridor (above the previous guide) clearly suggest that the bank may aside looking to speed-up liquidity sweep from the system, also attaches a higher risk premium to Naira asset pricing, hence the disproportionate margin btw the SLF and the SDF.

It looks like the Apex bank is "trying to fight a battle but also instigating one at the same time".
I dare say that the CBN can not win this "war". ...not with this approach! And especially NOT when the fiscal side is playing dumb!

Implication and inference:
-- More pressure on CoF.... likelihood of further increase in surrounding risk/inflation. Could be marginal MoM in Q3, but broader in Q4.

-- DMBs with pre-existing healthy loan book and whose operating business model is investment driven than loan-based will do well.

-- From the micro-end, investing in coys/businesses with a "hedged capital structure" can not be overemphasized. At this point, the need for capital preservation is just as important as the quest for it's growth.

-- Rates in the FII may remain elevated in the near term. Right now it's not just the banks that need your money, the CBN and in recent time the govt, also needs it!

-- Increased awareness and participation in investable securities as the quest to bridge the widening gap/disequilibrium btw purchasing power and surrounding risk widens. (one of the few reasons the equity market may not reprise downward... driven by select anti-fragile coys and supported by favourable asset pricing)

-- Select healthy equity names from sectors that are bound to benefit from the "dislocation" in macro-end will do well.

It is well

Simplifying

1. Central Bank's approach:
Simplified: The Central Bank's actions seem contradictory. They're trying to solve problems but might be creating new ones. Their strategy probably won't work, especially since the government (fiscal policies) isn't helping much.

2. Cost of Funds (CoF) and Inflation:
Simplified: Borrowing money will likely become more expensive. Prices might rise a little in the next 3 months, but could rise more quickly in the 3 months after that.

3. Banking sector implications:
Simplified: Banks that already have a good mix of loans and investments will do better than banks that rely mostly on making new loans.

4. Investment strategy:
Simplified: It's smart to invest in companies that have protection against economic ups and downs. Right now, keeping your money safe is just as important as trying to make it grow.

5. Fixed Income Instruments (FII):
Simplified: Interest rates for savings and bonds will probably stay high for a while. Banks, the Central Bank, and the government all need money, so they're willing to pay higher interest.

6. Equity market outlook:
Simplified: More people might start buying stocks to protect their money from losing value. This could keep the stock market from falling, especially for certain strong companies.

7. Sector-specific opportunities:
Simplified: Some healthy companies in industries that can do well during tough economic times will likely perform better than others.

8. Overall economic environment:
Simplified: The economy is facing big challenges, but this creates both risks and opportunities for investors.

@OGG, despite all the long grammar and jargs , I'm pleased to see that your post is becoming more consistent with mine. Monetary policy cannot solve the problem in isolation; it needs support from good fiscal policies

ositadima1:


I am not a fan of Emefiele, to be clear, but how can one defend the Naira when only in charge of monetary policies? If the other ministers responsible for managing fiscal policy were failing, how could the monetary side alone be expected to save the day? It is bad that Emefiele was singled out, but the other ministers who also failed alongside him are free.

Let's consider a company analogy: monetary policies are akin to financial management, while fiscal policies are similar to operational management.

Your comparison is not exact.

Hehe, what are the antifragile companies, please help o, I go pay sub once I make some money, I promise.

ositadima1:



Simplifying

5. Fixed Income Instruments (FII):
Simplified: Interest rates for savings and bonds will probably stay high for a while. Banks, the Central Bank, and the government all need money, so they're willing to pay higher interest.

6. Equity market outlook:
Simplified: More people might start buying stocks to protect their money from losing value. This could keep the stock market from falling, especially for certain strong companies.

The equities gymnastics is already getting tiring for me. Might just stick to 5 than opting for 6. The supposed good picks in equities(scratches head)
Where would fresh cash come from for the supposed businesses? See the image over Alhaji(ALHAJI OO).

Are we about to see a full blown cart£l operation?

Thank you ogg, you will not win us.

emmanuelewumi:



It can't fly, it will be challenged in the court

I hope they are not intimidated to fall in line.I read whr they are considering to make it a criminal offence if the ceo of banks refuse to pay within a stipulated time.And which after they stand the risk of jail.....this government is really becoming something else. I had really believe this government could offer something better than Buhari believing nothing could be as worst as his government even as I am obedient

ositadima1:



Simplifying

1. Central Bank's approach:
Simplified: The Central Bank's actions seem contradictory. They're trying to solve problems but might be creating new ones. Their strategy probably won't work, especially since the government (fiscal policies) isn't helping much.

2. Cost of Funds (CoF) and Inflation:
Simplified: Borrowing money will likely become more expensive. Prices might rise a little in the next 3 months, but could rise more quickly in the 3 months after that.

3. Banking sector implications:
Simplified: Banks that already have a good mix of loans and investments will do better than banks that rely mostly on making new loans.

4. Investment strategy:
Simplified: It's smart to invest in companies that have protection against economic ups and downs. Right now, keeping your money safe is just as important as trying to make it grow.

5. Fixed Income Instruments (FII):
Simplified: Interest rates for savings and bonds will probably stay high for a while. Banks, the Central Bank, and the government all need money, so they're willing to pay higher interest.

6. Equity market outlook:
Simplified: More people might start buying stocks to protect their money from losing value. This could keep the stock market from falling, especially for certain strong companies.

7. Sector-specific opportunities:
Simplified: Some healthy companies in industries that can do well during tough economic times will likely perform better than others.

8. Overall economic environment:
Simplified: The economy is facing big challenges, but this creates both risks and opportunities for investors.

Good break down.On number 7,you can go further to suggest the companies you think falls into that category. And stop looking for trouble...lol

Streetinvestor2:
I hope they are not intimidated to fall in line.I read whr they are considering to make it a criminal offence if the ceo of banks refuse to pay within a stipulated time.And which after they stand the risk of jail.....this government is really becoming something else. I had really believe this government could offer something better than Buhari believing nothing could be as worst as his government even as I am obedient

Man moves around with an ♾️ signage. The difference between him and bubu is that he's more intelligent.

I'm just going to sit back and see how to keep my piping skill going(laying pipes is my full-time job).

Without sounding callous, I pray for the common man if they don't act! I pray we're all safe.

Mind you everybody is already doing shares dilution in whatever guise.


Minimum wage is a disguise not born out of interest for the people, but to propagate his workings.

egwue:


That's what happens when the wrong people with vested interests are running the government of a country. Doesn't it sound strange and funny that Alhaji is importing crude from far countries. The cabals with their wicked claws (structures) are really holding this nation hostage. May God deliver us.

Why can't they privatise NNPC and list the shares on NGX

emmanuelewumi:



Why can't they privatise NNPC and list the shares on NGX

President/CE of Dangote Industries Limited, Aliko Dangote, (left) in Gabon on invitation of the President, Brice Oligui Nguema (right) to explore investment opportunities in Cement and Fertiliser (Urea and Phosphate). #DangoteFertiliser #DangoteCement

I was about to post this.

I love this man's tenacity and dodgedness.
This is a pointer to the fact that he is not remotely thinking of selling his refinery.

A classic example of if one door closes, look for another open door instead of crying in front of the closed door...

Bagwa:
President/CE of Dangote Industries Limited, Aliko Dangote, (left) in Gabon on invitation of the President, Brice Oligui Nguema (right) to explore investment opportunities in Cement and Fertiliser (Urea and Phosphate). #DangoteFertiliser #DangoteCement

KarlTom:
I was about to post this.

I love this man's tenacity and dodgedness.
This is a pointer to the fact that he is not remotely thinking of selling his refinery.

A classic example of if one door closes, look for another open door instead of crying in front of the closed door...

When you reach a certain level of wealth it is hard to bring you down. Like they say that some banks are too big to fail, I think the FGN and the oil cabals will find Dangote hard to swallow. The oil import and subsidy fraud and the government refinery rehabilitation scum is a syndicate developed over 30 years. Only someone as big as Dangote can challenge them, and I believe with the help of the population he will win. But it will take time.

Pesuzok:
Dangote should crash the price of pms and send the importers out of business. To me, that is fair competition, but wanting fg to ban import might not really be fair.

Secondly the fg should set a minimum standard on the quality of pms either imported or refined.

Lastly, both the refinery and importers should source for their usd themselves

Does he even need to do that?

His product would still be much better in quality & cheaper too, since lots of costs associated with imports would be substantial less compared to those that would be importing. And with the sheer refining capacity of that refinery, importers of refined crap would definitely go out of business quickly

Raider76:


When you reach a certain level of wealth it is hard to bring you down. Like they say that some banks are too big to fail, I think the FGN and the oil cabals will find Dangote hard to swallow. The oil import and subsidy fraud and the government refinery rehabilitation scum is a syndicate developed over 30 years. Only someone as big as Dangote can challenge them, and I believe with the help of the population he will win. But it will take time.

If alhaji wants to play dirty. He can rubbish this government that before they see it coming it will have pushed them to exist door.He is in some major sectors that has mutiplier effect on the population and economy. Just take some serious decisions and hunger will increase. And you go see Kenya remix for naija Street. You know what it means to be richest Africa man.It is not bringing small cash to buy election. This is real dollar billionaire .He is the highest employer of labour beside the government in naija.Let him just announce the stopped of sell of diesel alone to nigeria and price goes back to 1800..You go begin see niaja people reaction.

KarlTom:
This 50% Tax on Foreign Exchange Gains is ill-intentioned and ill-timed.
Painfully, I do not think there is any hope for the major banks (except for lenghty court cases).
This 'insensitive' act by government is surely going to have an adverse effect on the FY2024 results...

Why not special hurricane/Tsunamis Tax Rebate for those coys in the foods and beverages as well as the Telecommunications and other sectors of the economy that lost most or even entire equity in 2023 alone due to the reckless foreign exchange policies of the Tinubu lead FGN.

talk2me2:
Why not special hurricane/Tsunamis Tax Rebate for those coys in the foods and beverages as well as the Telecommunications and other sectors of the economy that lost most or even entire equity in 2023 alone due to the reckless foreign exchange policies of the Tinubu lead FGN.

You dey mind the yeye government. They have borrowed life out of the economy without anything to show for it.They are looking inward to steal from us via 50%on forex,dormant accounts and unclaimed dividend..what a useless minister of finance and half baked cbn governor. This was actually they stopped bank from paying dividend from it and part of recapitalisation fund.

Why are all this guys waiting till last minute to release results. It is making the market dull

onegentleguy:


One may assume the latest monetary policy decision by the Apex bank to be a relaxation in policy direction, but that's not the case.
It seems the regulator still sees an aggressive rate expansion as a "bullet-proof" means to tame surrounding risk/inflation.
The minor 50bps/0.5% increase in MPR (compared to past average upward revisions) is the CBN trying to mask her aggressive hawkish stance when in fact, the adjustment on the asymmetric corridor suggest otherwise.

For context, a 400bps/4% increase in the SLF-side of the corridor from +100 to +500 and corresponding disproportionate review in the SDF-side from -300 to -100 clearly infers that the CBN believes in, and is continually looking or should we rather say-- HOPING that an upward adjustment in rates can cover up for the negative real return created by the heightened surrounding risk/inflation and Naira asset pricing.
The problem with this sought of "hope" is that the apex bank might be neglecting the base effect these upward reviews have on funding cost and by extension, the real side of the economy which this so-called policy seeks to protect.

An asymmetric corridor of +500/-100 is the CBN effectively telling DMBs that we can afford to lend you money @ 31.75% but borrow from you @ 25.75% (ref: +5/-1% around the MPR)
That 2--6% min/max spread skewed in favour of the SLF-side of the corridor (above previous guide) clearly suggest that the bank may aside looking to speed-up liquidity sweep from the system, continues to attach a high risk premium to Naira assets, hence the disproportionate margin btw the SLF and the SDF.

It looks like the Apex bank is "trying to fight a battle but also instigating one at the same time".
I dare say that the CBN can not win this "war". ...not with this approach! And especially NOT when the fiscal side is playing dumb!

Possible implication and inference:

-- More pressure on CoF.... likelihood of further increase in surrounding risk/inflation. Could be marginal MoM in Q3, but broader in Q4.

-- DMBs with pre-existing healthy loan book and whose operating business model is investment driven than loan-based will do well.

-- From the micro-end, investing in coys/businesses with a "hedged capital structure" can not be overemphasized. At this point, the need for capital preservation is just as important as the quest for it's growth.

-- Rates in the FII market may remain elevated in the near term. Right now it's not just the banks that need your money, the CBN and in recent time the govt, also needs it!

-- Increased awareness and participation in investable securities as the quest to bridge the widening gap/disequilibrium btw purchasing power and surrounding risk widens. (one of the key reason the equity market may not reprise downward... driven by select anti-fragile coys and supported by favourable asset pricing)

-- Select healthy equity names from sectors that are bound to benefit from the "dislocation" in macro-end will do well.

It is well

Thanks OGG,remain blessed.

They have increased it to 70%. See below:

The National Assembly approved a proposed amendment to the Finance Act on Tuesday, which aims to introduce a 70% tax on Banks' substantial foreign exchange profits in 2023.

The Finance Act (amendment) Bill was passed after each chamber reviewed the report from the Joint National Assembly Committees on Finance during the plenary session.

The Chairman of the Senate Committees on Finance, Senator Sani Musa, presented the report to the red chamber, alongside Hon. James Faleke in the House.

The Joint Committee, in its report, noted that “that the banks enjoyed windfall as a result of exchange rate unification policy of the Federal Government.w

“That the windfall was as a result of FX allocation to selected Commercial Banks. The policy does not permit the use of windfall for dividend payments.”

“that the application of the provision of Section 30 of the Principal Act shall take effect from 1st January 2023.

“The levy shall be 70% (for federal government and 30% for banks) on the realized profits from all exchange transactions of Banks.

“Any bank that fails to pay the windfall profit levy to the Service, has not executed the deferred payment agreement as at the time of commencement of the regime, shall be liable to pay the windfall levy withheld or not remitted in addition to a fine of 10% of the levy withheld or not remitted per annum and interest at the prevailing Central Bank of Nigeria, minimum discount rate.”

..

Streetinvestor2:
If alhaji wants to play dirty. He can rubbish this government that before they see it coming it will have pushed them to exist door.He is in some major sectors that has mutiplier effect on the population and economy. Just take some serious decisions and hunger will increase. And you go see Kenya remix for naija Street. You know what it means to be richest Africa man.It is not bringing small cash to buy election. This is real dollar billionaire .He is the highest employer of labour beside the government in naija.Let him just announce the stopped of sell of diesel alone to nigeria and price goes back to 1800..You go begin see niaja people reaction.

You overrate money against power. If he does that, he will blame himself. Mind you, he can only do it once before being rendered unable to do it again.
After God, na Government. Don't underestimate the government. If tomorrow, they decide to tax him specially. President only needs to get the legislatures to do that. It becomes a law and even the supreme court has to follow the laws.

Streetinvestor2:
You dey mind the yeye government. They have borrowed life out of the economy without anything to show for it.They are looking inward to steal from us via 50%on forex,dormant accounts and unclaimed dividend..what a useless minister of finance and half baked cbn governor. This was actually they stopped bank from paying dividend from it and part of recapitalisation fund.

Weren’t you the one insulting me like 3 months ago or so when I called the cbn incompetent? Sir, permit me to call you a m0r0n!! This is just the beginning of your wailing, you go cry tire 🤦🏽‍♂️

TRANSCORP HOTELS
The Epitome of a Growth Stock
Transcorp Hotels embodies the definition of a growth stock, promising a brighter and rewarding future. The company's exceptional 2024 Q2 performance is a testament to its competent management team.
Key Highlights:
- Earnings Per Share (EPS) stands at an impressive 0.65 kobo
- Revenue is soaring
The cost of revenue is manageable
- Retained earnings are substantial
The Federal Government of Nigeria (FGN) should consider hiring Transcorp Hotels' management team to transform the country's economy within 24 months. Their expertise and track record make them ideal candidates for this task. After the transformation, they can return to Tony Elumelu, their owner, and continue to drive success in the private sector.

sterlingD:
TRANSCORP HOTEL PLC Q2 2024

https://doclib.ngxgroup.com/Financial_NewsDocs/41733_TRANSCORP_HOTELS_PLC-_QUARTER_2_-_FINANCIAL_STATEMENT_FOR_2024_FINANCIAL_STATEMENTS_JULY_2024.pdf

Mankind2024:
TRANSCORP HOTELS
The Epitome of a Growth Stock
Transcorp Hotels embodies the definition of a growth stock, promising a brighter and rewarding future. The company's exceptional 2024 Q2 performance is a testament to its competent management team.
Key Highlights:
- Earnings Per Share (EPS) stands at an impressive 0.65 kobo
- Revenue is soaring
The cost of revenue is manageable
- Retained earnings are substantial
The Federal Government of Nigeria (FGN) should consider hiring Transcorp Hotels' management team to transform the country's economy within 24 months. Their expertise and track record make them ideal candidates for this task. After the transformation, they can return to Tony Elumelu, their owner, and continue to drive success in the private sector.

It sells at N98.40 . How is 0.65k EPS impressive?

Ades1:



Weren’t you the one insulting me like 3 months ago or so when I called the cbn incompetent? Sir, permit me to call you a m0r0n!! This is just the beginning of your[b][/b] wailing, you go cry tire 🤦🏽‍♂️

haha

SonofElElyonRet:


It sells at N98.40 . How is 0.65k EPS impressive?

If all the earning is impossibly paid as dividend, it will be about 0.66% dividend yield without withholding.

It's a good N6 and below stock for dividend hunters. Again, who knows if the magicians will push the price further due to the seemingly impressive result.

target and dates for following assets
uba aug12 ~16n
wema aug.07~ 4.84n
sterling aug16~ 2.5n
country is bleeding, investors repositioning portfolio