BUY & SELL EVERYDAY ON THE NGSE SECONDARY BOND MARKET….FGN TREASURY/SAVINGS/SUKUK BONDS….

Dear Current & Potential Client(s),

This is to inform you that the Federal Government of Nigeria Treasury/Savings/Sukuk Bonds can be bought and sold every day like ordinary stocks starting from a min. investment of N10,000 thereby having a better & active control on Your long-term savings plan and/or Your fixed income investment portfolio.

Additionally, TRW Stockbrokers can purchase for clients all types of FGN, State & Corporate Bonds in Bulk from the FMDQ for a min. starting investment of N1mln and on-forward custodian transfer to clients’ CSCS Acct as mandated. 

Definition: FGN Savings Bills (FGN S-Bills) are FGN Savings Bonds with TTM less than or equal to 12 months, for example FGS2019S1, FGS2019S2, FGS2019S4, FGS2019S6, FGS2019S8, FGS2019S10, FGS2019S12 & FGS201914 are now S-Bills…

The Key Features of FGN Savings Bonds Bought On Secondary Market are as follows:

• Coupon payments: Quarterly (interest payments 4x in a year) with initial coupon payment depending on the FGN S-bond’s coupon program thus your first coupon payment can be paid in less than 91 days;
• Interest rate: 9.5% – 14.5% p.a
• TTM (time-to-maturity): 5 months – 36 months;
• Cheaper & long-term alternative to FGN T-bills;
• NGSE Purchase/Sales Sizes: Minimum order of NGN 10,000 with additional multiples of NGN 1,000

The Key Features of FGN Treasury/Sukuk Bonds Bought On Secondary Market are as follows:

• Coupon payments: Half-year (interest payments 2x in a year) with initial coupon payment depending on the FGN T-bond’s coupon program thus your first coupon payment can be paid in less than 182 days;
• Interest rate: 12.5% – 16.3% p.a
• TTM (time-to-maturity): 1 yr – 20 yrs;
• FMDQ Purchase/Sales Sizes: Minimum order of NGN 1 MLN with additional multiples of NGN 100,000

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TRW Stockbroker Investment Recommendation:

Take note that the best future predictor of Your bond yield (quarterly interest income flow) is your initial coupon level so please try to attain a higher coupon level for Your bond investments. For example, interest cashflow from a 13% p.a coupon is greater than that from a 10% p.a coupon !!!

Aug-2018 inflation was flat @ 11.23% while Sept-2018 inflation forecast to rise to 11.4%. Last week, average FGN T-bills’ & FGN T-bonds’ secondary market yields stabilized @ 13.4% and @ 15.26% respectively on the FMDQ thus maintaining the  positive real return and normalization (bullishness) of the local NGN yield curve.

Sept-2018 ”forecasted” average yield of FGN T-bill, 91-days on the PMA (Primary Auction) is 11% p.a. and on the FMDQ secondary market is expected to be av. 10.96% p.a while the last PMA of N5.4bln of FGN T-bills, 91-days was executed again at a rate of 11% p.a

N.B: Take note that 91-day FGN T-bills have similar interest payment structure to the 2-3 yrs FGN S-Bonds. Invest in FGN S-bonds only for savings purposes and as a cheaper alternative to FGN T-bills, please do not speculate with them !!!

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Based on the above recommendations and in order to maintain it’s FGN bonds market maker & warehousing role on the NGSE, our ARMF Bond Portfolio (a typical closed fund) is providing the following product options to clients interested in creating/maintaining their own savings scheme:

Product Option #1: FGN Bonds Fire-Sell Bid To TRW Stockbrokers’ Bond Clients Only (Under An Urgent Sales Mandate Request)

• If a client wants to fire-sell his/her FGN bonds with coupon >14% p.a, our ARMF Bond Portfolio can bid a max. bid clean price of N900.00 per bond.
• If a client wants to fire-sell his/her FGN bonds with coupon btw 13% – 14% p.a then our ARMF Bond Portfolio can bid a max. bid clean price of N850.00 per bill.\
• If a client wants to fire-sell his/her FGN bonds with coupon <13% p.a then our ARMF Bond Portfolio can bid a max. bid clean price of N800.00 per bill.

Product Option #2: Get Upfront Quarterly Interest Payment On Your FGN Bonds Purchase

For a min. N100,000 investment, a bond client who participates in subsequent 2 – 3 yrs FGN S-bonds primary auction and/or desires to buy on the NGSE secondary bond market (via TRW Stockbrokers Ltd) will be paid upfront his/her expected quarterly interest by our ARMF Bond Portfolio directly into the client’s bank acct or into the client’s CSCS trading acct with TRW Stockbrokers as mandated.

For a min. N1mln investment, a bond client who desires to buys FGN T-bonds on the FMDQ secondary bond market (via TRW Stockbrokers Ltd) will also be paid upfront his/her expected half-year interest on a quarterly basis by our ARMF Bond Portfolio directly into the client’s bank acct or into the client’s CSCS trading acct with TRW Stockbrokers as mandated.

ARMF Bond Portfolio will surcharge a 10% funding fee. The process will revolve every quarter beginning till maturity unless the client makes an urgent sales mandate before maturity. The purchased FGN T-bonds are kept under the custody of TRW Stockbrokers Limited.

For example, a successful primary auction bid of N100,000 investment in a 3-yr FGN S-bond this Sept-2018 DMO PMA (FGS202137: 12.364% FGNSB 12 SEPT-2021) would receive (at the beginning of every quarter) a gross upfront quarterly interest of N3.091 minus a 10% funding charge of N309.10 => a net upfront quarterly interest of N2,789.10

Product Option #3: Additional Proposal To Fellow Stockbrokers:

If a stockbroker is already marketing the FGN Bonds to it’s retail clients and these clients want to sell urgently, our ARMF Bond Portfolio can purchase small and/or large volumes of pre-negotiated FGN T-bonds & FGN S-bonds (via secondary market transactions) from the stockbroker and/or it’s clients.

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TRW Stockbroker Transaction Fee Policy:

Fixed income trades of the bond segment of the NGSE trading platform are subject to the following term(s): transaction fee of 1% of total consideration will be charged for both “Sell” and/or “Buy” transaction(s) while CSCS will charge N5.20 for it’s trade alert & custodian services;

Fixed income trades of the bond segment of the FMDQ trading platform and onward transfer to client’s CSCS account are subject to the following term(s): transaction fee of 0.5% of total consideration will be charged for both “Sell” and/or “Buy” transaction(s).

Caution – selling bonds on the secondary market before maturity, can either incur capital loss or capital gain !!!!

Should you require further information on how to get the best (and higher) coupon for Your FGN bonds purchase, please contact directly Ekwueme Mike Anyadibe (080 6656 4748 and/or e-mail: ekwueme.anyadibe@trw-stockbrokers.com and/or live during trading hours via skype #ID: respartner): Fixed Income Sales.

Thank you…

TRW TEAM
Corporate Office: 62/64 Campbell Street (Kajola House)
4th Floor Lagos Island Lagos .
234-1-7646689,234-1-2710224-5
Email: info@trw-stockbrokers.com; ekwueme.anyadibe@trw-stockbrokers.com
website: http://www.trw-stockbrokers.com

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TA Signals for Sept 21 2018

VOLUME PRICE ANALYSIS

NEW HIGH LOW

TA SIGNALS

SUPPORT AND RESISTANT

`NSE PRICELIST FOR SEPT 21 2018

TRW_STOCKBROKERS_stxpricemove_d_all-2018-09-21 14_36_18.092

Police Recover $470m, N8bn NNPC Funds Hidden in Commercial Banks

Jimoh Moshood

Retrieve two vessels, seven speed boats, 83 trucks, others
Alex Enumah in Abuja

The Nigerian Police Thursday said it had succeeded in recovering monies belonging to the NNPC Brass/LNG Investment, which were supposed to be deposited in the Treasury Single Accounts (TSA) of the federal government.

According to a statement by the police, the money include, “ $470,519,889.10 belonging to NNPC Brass LNG Investment hidden in some commercial banks after the directives of the federal government on TSA.

Also recovered by the police was the sum of N8,807,264,834.96 belonging to NNPC/Brass Investment that was not remitted to TSA Account of the federal government.

The police also recovered N114, 290,000 in relation to the December 10, 2016, National and State Assembly re-run elections in Rivers State, which was recovered from 23 officials of the Independent National Electoral Commission (INEC).

The Force Public Relations Officer, DCP Jimoh Moshood, who issued the statement said the move were part of efforts to recover monetary and non-monetary assets of the federal government as well as the enforcement of the Firearms Act, mopping-up and recovery of all prohibited firearms and illegally acquired weapons in the country.

“On assumption of Office, the Inspector General of Police (IG) Ibrahim K. Idris, created special units to handle high profile cases, including terrorism, cyber and high-tech crimes, some of which includes the IG Monitoring Unit, Special Investigation Panel (SIP) and Task Force on Anti-Pipeline Vandalism.

“As a result of these efforts, the Nigeria Police Force recovered the following monetary and non-monetary assets for the federal government”, the statement read in part.

However, non monetary items recovered include, two vessels, seven speed boats, 83 trucks, 23 cars, including jeeps, 36 buses, 29 motorcycles, five speed boat engines and 38 pumping/drilling machines and generators.

In the area of arms and ammunitions, DCP Moshood said the police in the first batch recovered 6, 527 firearms; 14, 809 ammunitions, while it rcovered 3, 130 firearms and 12, 185 ammunitions in the second batch.

The statement however called on the public to furnish the police with useful information that will assist in further recovery of the government’s funds.

Are Credit Cards That Bad for Your Financial Health? May Be Not! Here Are 7 Reasons

By Sachin Wason

Has anyone ever told you about the benefits of using “debt to counter debt”? Has anyone ever advised you to “borrow” in order to ensure that you don’t fall back on payments of bills and monthly installments? Has anyone ever asked you to get a credit card to improve your credit score which can, in a way, help you improve your financial health?

If you think that we’re being incongruous and silly, wait till we explain. Cards may not be so bad!

Have You Been Told That Credit Cards Are a Bane for the Modern Society? Well, It May Not Be True After All!

While some have the right to feel peeved with cards since they can often be the fastest way to run up massive debt, if not used with caution, they also offer a number of conveniences that cash can’t offer. Although cash is often seen as the best option in a well-heeled household, it may also mean that members of these households are losing out on the chance to improve their purchasing power and time-value-of-money factor.

Here are some of the most logical reasons why you should be using cards, albeit with care:

Reason 1: If you buy something with cash, you don’t get to make your money work. It simply leaves your pocket or bank account and never returns. If you make a purchase on credit, however, you get to buy the item immediately but pay for it only when the next card bill becomes due.

So, within this period, your money, which you would have otherwise used for paying your card bill, can work and earn you interest from a savings scheme, a stock, or a bond. Billing cycles may vary from card to card but are usually no less than 1 month. That should be enough time to earn a good return on your investment and use a portion of it to offset your card bill.

Reason 2: Most cards offer rewards. Cash doesn’t! Get the right shopping card and you can earn rewards points, vouchers, rebates, and discounts. Or, a good travel card will give miles that make your air travel cheaper. Not to forget, other benefits such as complimentary travel insurance or replacement within 48 hours if you were to lose your card while on a tour.

Even the wealthiest of the wealthy don’t always get to lead the life that you can live if you have a premium card in your wallet. So, cards aren’t always bad, are they?

Reason 3: You may not always enjoy the convenience that cards offer, with cash. It may not always be feasible to carry paper bills if the amount is very large. But, with a card, you can purchase or make payments of thousands, without having to physically carry paper bills. If cards with high credit limits were such a menace, they wouldn’t fit into your tiny wallet, would they? Just kidding!

Reason 4: Cards always leave an electronic trail which makes it easier for you to audit your spends and take stock of your finances on a real-time basis. Plus, you also get a statement at the end of the month or you can simply log into your internet banking account and pull out the latest data. That means you can easily assess whether you’re staying on course with your budget goals or not. It’s usually far more difficult to keep track of cash spends.

Reason 5: Most card issuers around the world offer theft protection benefits. That means, you won’t be held accountable for unauthorised transactions, once you have informed your bank, or your accountability will be limited to a reasonably small amount. Can you say the same about cash? Once stolen or misplaced, it’s usually gone forever and retrieving it is close to impossible.

Reason 6: Don’t have a credit history? A card is the fastest way to build one. Make on-time payments and if possible full payments at the end of every billing cycle, and you can have a great score in a short span of time. If you’re thinking why it’s important, ask any financial expert or your neighbour and they’ll all tell you that you need a good score if you’re planning to take a mortgage loan or trying to land a job.

Reason 7: Would you complain if you had purchase protection? Many card issuers offer protection for your retail transactions or online purchases. If something were to go wrong, you might get a full refund. No paper bill will ever offer you this benefit.

Want one more reason? Here is a bonus one:

Reason 8: At times of financial emergencies, you can easily withdraw money using your card at a nearby ATM. If you’re solely reliant on cash and leave your home, one day, without your wallet, you can well imagine the problems that you might have to encounter.

Life isn’t a bed of roses. We’re not implying that it is. But, aren’t we all trying to reduce our hardships and make our lives a little easier? You need tools to make life more comfortable.

A credit card is such a tool. In fact, it may be the seventh Infinity Stone that was never shown in any of the Avengers’ movies – it gives you control over your finances!

DMO, CBN Do Not Fix Treasury Bills’ Yields – Oniha

By Mark Itsibor

The Nigerian Debt Management Office (DMO) has said the claim that Central Bank of Nigeria (CBN’s) ‘increased’ rates to ‘attract’ investors at the Nigerian Treasury Bills Auction is not correct. The DMO disclosed this in reaction to recent reports which claimed that the CBN over-allotted 364-day bill with yield at 15.60 per cent in a purported move to attract investors in the fixed income market. In a press statement yesterday, DMO’s director-general, Ms Patience Oniha described the report as “erroneous and capable of misleading”, a situation she said has necessitated an explanation by the DMO on how Auctions of Nigerian Treasury Bills are conducted.

Nigerian Treasury Bills (NTBs) are the Federal Government of Nigeria’s short-term debt instruments issued regularly by the DMO through the Central Bank of Nigeria (CBN), who in this instance is the DMO’s agent. The ideal practice is that investors bid at the NTBs Auction at their own Interest Rates, thus the Rates on NTBs are not predetermined or determined by the CBN or the DMO. The Rates at which the investors bid is entirely at their discretion, but will typically depend on prevailing secondary market rates, their portfolio needs and investment preferences, The DMO explained in the statement.
“In allotting to bidders oftentimes, the DMO and CBN will also be guided by similar factors and the implications for markets and macroeconomic stability. Taking into account all these factors, the Interest Rates at the Auctions will ultimately be determined by demand and supply,” Ms Oniha said, adding, “The claim that CBN ‘increased’ Rates to ‘attract’ investors at the NTB Auction is therefore not correct.”

The report had attributed the higher Interest Rate alleged fixing to ‘fears of capital flight ahead of the 2019 general election. The DMO boss said the fact that foreign investors still participate in the domestic fixed income securities markets proves that “it is wrong to attribute the Auction Rate to fears about capital flight.” To buttress this point, Oniha recalled that Interest Rates on NTBs in the first half of 2017 were much higher than the present rates, at a time when there was no election approaching.

Another Buhari’s minister skipped NYSC

…Why I skipped NYSC – Communications Minister Shittu
Following the resignation of the Minister of Finance , Mrs Kemi Adeosun, for forging her exemption certificate from the mandatory National Youth Service Corps (NYSC), another minister serving in President Muhammadu Buhari’s cabinet, Mr Adebayo Shittu, has been found to have skipped the mandatory service scheme, an online medium, Premium Times reports.

The offence may see him lose his position and earn a jail term.

Investigation by the online medium revealed that the Minister of Communications, Adebayo Shittu, did not participate in the NYSC scheme despite graduating from the then University of Ife (now Obafemi Awolowo University) at the age 25.

The revelation about Mr. Shittu, who is currently angling to become Oyo State governor, is coming to light about a week after Adeosun was compelled to step down from her post over the issue.

Premium Times reports that checks at the NYSC headquarters showed that the communications minister did not present himself for service after graduation and is yet to do so till date.

When contacted, Shittu admitted that he did not serve but claimed he thought his first political post after graduation could suffice as national service, a claim lawyers and NYSC insiders consider as untenable.

Skipping the compulsory national service is an offence under the NYSC law, punishable with up to 12 months imprisonment.
Employers are mandated by law to always request NYSC certificate of national service from employees as part of the conditions for hiring.

Shittu was born on March 23, 1953, studied law at Ife and graduated in 1978. He proceeded to the Nigerian Law School, Lagos, qualifying as a lawyer in 1979.

Having earned a bachelors degree at the age of 25, Section 2 of the NYSC Act expects Shittu to have participated in the year-long national service.

Section 2 (1) of the NYSC Act mandates all Nigerians who earn degrees or higher national diplomas from tertiary institutions in Nigerian and abroad (effective 1972/73 session) to participate in the scheme.

Those exempted by the law are those who graduated after their 30th birthday, persons with national honours and individuals who serve in the military and intelligence organisations.

Instead of enlisting in the national service, Shittu went into politics after graduation, and was, in 1979, elected member of the Oyo State House of Assembly.

The minister said that he believed that having been elected lawmaker, he needed not participate in the national service.
He said he deliberatively skipped the NYSC scheme because he was convinced that his membership of the state assembly was itself a “service”.

“The constitution provides for the qualification needed for state assembly members, NYSC is not there,” Shittu reportedly said. “I didn’t need it to become a member of the state assembly, and that is already a service,” he was quoted as saying by the online medium.

Shittu also disagreed with Premium Times reporter who laboured to explain to him that the NYSC Act makes participation in the scheme mandatory for all graduates like him and that election or appointment to political office does not qualify as a basis for exemption.
What the Law says on the situation:

But Shittu’s argument does not appear convincing when placed against the letters of the NYSC law.

Section 2, subsection 1 of the Act makes it obligatory for “every Nigerian” who graduate at the end of academic year 1972-73 and subsequent years, “to make himself available for service for a continuous period of one year from the date specified in the call-up instrument served upon him”.

Subsection 2 of the same section enumerated instances of exemption from the national service, which did not include holding political office, as Shittu claimed.

The four categories of individuals exempted from the national service, according to the NYSC law, are those who graduated above the age of 30 and those who have served in the armed forces or the Nigeria Police for a period of more than nine months.

The third category covers staff of four security organisations, namely the Nigerian Security Organisation, the State Security Service, the National Intelligence Agency and the Defence Intelligence Service.

Bargin Hunting Season Is Open: Has the NGSEASI (Index) Bottomed ???

The answer is a definite NO….why ?……MACDH remains below the zero line and the index has not broken over it’s short-term 15-day moving average.

Advice: Hold your bonds allocation and continue to collect accrued interest.

Bottom Target: we maintain a potential major support/bottom @ 30,610 pts level.