Continental Airlines Offers Support to Colgan Air in Providing Assistance to Families of Flight 3407 Passengers and Crew

13 Feb 2009 08:18 Africa/Lagos

Continental Airlines Offers Support to Colgan Air in Providing Assistance to Families of Flight 3407 Passengers and Crew

HOUSTON, Feb. 13 /PRNewswire-FirstCall/ -- Continental Airlines (NYSE:CAL) this morning expressed its profound sadness concerning the accident involving flight 3407, operated by Colgan Air, that occurred Thursday night near Buffalo .


"Continental extends its deepest sympathy to the family members and loved ones of those involved in this accident," said Larry Kellner, chairman and CEO of Continental Airlines. "We are providing our full assistance to Colgan Air so that together we can provide as much support as possible for all concerned."


Continental representatives are traveling to Buffalo to provide assistance to Colgan in its response to the accident. A family assistance center is being established in the area.


"Our thoughts and prayers are with all of the family members and loved ones of those involved in the flight 3407 tragedy," Kellner added.


Family members of flight 3407 passengers and crew should contact the airline at 1-800-621-3263.


Source: Continental Airlines

CONTACT: Corporate Communications, +1-713-324-5080, corpcomm@coair.com


Web site: http://www.continental.com/

Breaking News: Theodore Orji Wins At the Court of Appeal

Theodore Orji

Appeal Court in Port Harcourt has declared Theodore Orji of the Progressive Peoples Alliance (PPA) as the bona fide Governor of Abia State.

The court dismissed the petitions filed by Onyema Ugochukwu, of the People's Democratic Party (PDP) and other contenders who challenged the inauguration of Orji on May 29, 2007, because of the cases of electoral fraud reported during the gubernatorial elections of April 14, 2007.

Orji who returned to Umuahia on Tuesday after a three-day working visit to Abuja said he knew that he would win the court case. Most people in Abia State hailed the verdict.

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Virtualization Saves Microsoft Customers Nearly a Half-Million Dollars Per Year

Virtualization Saves Microsoft Customers Nearly a Half-Million Dollars Per Year

Businesses gain value via server consolidation, integrated management tools and application management.

REDMOND, Wash. - Feb. 9, 2009 /PRNewswire/ — Microsoft Corp. today announced that some business customers around the world have saved on average $470,000 (U.S.) per year through IT projects using Microsoft virtualization software. Microsoft's business customers have been able to use virtualization to help reduce operations and capital expenses via reduced electrical power consumption and cooling within datacenters, reduced hardware acquisition costs, automation of desktop and server management, and centralized application deployment.

The cost of running IT systems has increased as electrical power, cooling and physical space has become constrained. In his 2008 refereed journal article, "Worldwide electricity used in data centers," Jonathan Koomey, Ph.D., of Lawrence Berkeley National Laboratory and Stanford University concluded that total datacenter power was about 1.5 percent of all U.S. electricity use in 2005, with 80 percent of that amount going toward powering and cooling servers.

A separate report, by Gartner Inc., stated that "the effective use of virtualization can reduce server energy consumption by up to 82 percent and floor space by 85 percent" (Gartner: "Energy Savings via Virtualization: Green IT on a Budget"; Nov. 12, 2008).

"Businesses are looking to reduce and manage computing costs in datacenters and across server and client computing devices," said David Greschler, director of integrated virtualization at Microsoft. "Virtualization software allows businesses to pool computing resources to drive down IT costs, increase IT efficiency and be more responsive to business needs. Customers are getting a better bang for their buck with the Microsoft platform and virtualization solutions because virtualization is in both the operating system and in the holistic management tools. Customers can manage IT services and a broad set of applications across the datacenter and desktops. There is less of a learning curve for customers, and it eases interoperability with existing systems."

Savings Through Available Built-In Virtualization and Management Automation
Microsoft's approach to virtualization, which incorporates server and presentation virtualization into Windows Server 2008 and unlimited virtual machine management with Microsoft System Center suite license, is helping break down barriers to broad virtualization adoption.

"The VMware ESX solution would have cost $30,000 (U.S.) for four servers. With Microsoft, we have a service provider agreement that allows for monthly payments with no capital costs — costing us less than $1,000 over the life of the contract," said David Straede, president and chief operating officer for Santa Barbara Web Hosting. "Windows Server 2008 Hyper-V has the core features businesses need. It's the Windows people know, is installed just like other Windows-based applications, and works in a management console that IT staff are already using. The ESX feature set simply doesn't justify its additional expense."

If making it easy for customers to implement virtualization is important, making it easy to manage the environment is just as critical for saving time and money. With Microsoft System Center, customers have a single solution for managing the entire IT life cycle, from deployment and provisioning to monitoring and backup. Equally important, customers can manage both server and desktop resources, both virtual and physical assets, and both Microsoft and VMware hypervisors, all with the same platform.

These capabilities helped Banverket ICT choose Microsoft for its virtualization strategy. "We knew we wanted to build a compatible virtualization platform that would encompass server consolidation, Terminal Services and application virtualization that we could manage with a single set of tools," said Pontus Blomkvist, service design manager, Banverket ICT. "With Microsoft Application Virtualization for Terminal Services, we have been able to reduce the number of terminal servers because we can run many applications on any server at any time, without worrying about conflicts. With Hyper-V, we are now running 50 virtual machines in production, with a utilization rate of 80 percent for some of the servers as opposed to 15 percent before we deployed Hyper-V."

Savings Through Consolidation, Reductions in Power
By running multiple virtual machines on fewer physical servers, Microsoft customers are drastically cutting hardware requirements and easing server management. For example, Indiana University's Auxiliary IT Department went from 152 to just 32 servers, which it expects will save $85,000 (U.S.) annually. Saxo Bank had an average physical server utilization of just 20 percent and was deploying nearly 200 new servers per year before using server virtualization. Windows Server 2008 Hyper-V allowed the bank to reduce the number of servers needed by 36 percent and realize savings equivalent to $1 million (U.S.), because of lower server hardware costs and associated reductions in space, power and cooling costs.

Many customers have realized similarly dramatic electrical savings as a result of server consolidation, which is a particularly important benefit in today's climate of volatile power prices. TALX expects to save approximately 50 percent in annual power and cooling costs by consolidating its server environment with Hyper-V. HotSchedules, which noted that its No. 1 cost in the datacenter is power, spent about $11,000 (U.S.) a month on datacenter power costs, but with Hyper-V it anticipates that this monthly figure will go down to $2,500. Santa Barbara Web Hosting uses Hyper-V to reduce its power consumption costs by $5,220 (U.S.) per month, helping the company provide more cost-effective services to its customers. And Slough Borough Council took advantage of the savings from eliminating 10 physical servers to preserve the electrical power needed to turn on a new storage area network.

"I wouldn't be surprised to see us virtualize 60 servers once our physical-to-virtual analysis is complete, which represents nearly half our server holdings," said Chris Wintermute, technical infrastructure manager for Slough Borough Council. "We've achieved hardware savings of $148,000 (U.S.), and we expect to reduce server deployment costs by $23,700 (U.S.) annually, based on rolling out 20 servers a year."

Founded in 1975, Microsoft (Nasdaq "MSFT") is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

Note to editors: If you are interested in viewing additional information on Microsoft, please visit the Microsoft Web page at http://www.microsoft.com/presspass on Microsoft's corporate information pages. Web links, telephone numbers and titles were correct at time of publication, but may since have changed. For additional assistance, journalists and analysts may contact Microsoft's Rapid Response Team or other appropriate contacts listed at http://www.microsoft.com/presspass/contactpr.mspx.
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2009 Kia Optima #1 on Forbes.com 'Best Vehicles for Carpooling List'

2009 KIA OPTIMA #1 ON FORBES.COM "BEST VEHICLES FOR CARPOOLING LIST"

Kia Motors' Midsize Sedan Noted for Safety, Roominess and Fuel Efficiency
Vehicles ranked based on safety ratings, interior volume and fuel efficiency
A recipient of a five-star crash safety rating from NHTSA, Optima earns yet another accolade

IRVINE, Calif. Feb. 9, 2009 /PRNewswire/— - Recently named a "Best Bet" by The Car Book 2009, Kia Motors America (KMA) today announced that the Optima sedan also has topped the recently released "Best Vehicles for Carpooling" list by Forbes, available on Forbes.com. Refreshed for the 2009 model year, Optima was lauded for combining excellent class-leading safety features, a spacious interior and impressive fuel efficiency - all for excellent value, starting at less than $18,000.

"It's great to see our vehicles winning more and more industry accolades, and it's an honor for Kia Motors to sit atop the Forbes 'Best Vehicles for Carpooling' list," said Michael Sprague, vice president, marketing of KMA. "The 2009 Optima demonstrates the brand's commitment to offering consumers dynamic vehicles designed with an emphasis on quality, safety, comfort and affordability."

Using data from Kelley Blue Book, Forbes considered only 2009 vehicles that have received five out of five stars on all crash tests and at least four out of five stars on rollover results. The group was then pared down by awarding each vehicle points based on seating capacity, fuel efficiency, amount of front and rear headroom and legroom, and the presence of standard or optional navigation and entertainment systems.

The 2009 Optima is the recipient of a five-star crash safety rating from the National Highway Traffic Safety Administration (NHTSA)1. As with the rest of the Kia line-up, Optima is equipped with many standard safety features, including six airbags (dual advanced front and front-seat mounted side as well as full-length side curtain), front active headrests, side-impact door beams, height-adjustable front seatbelts with pre-tensioners and force limiters, three-point seatbelts for all seating positions, Lower Anchors and Tethers for Children (LATCH) and a tire pressure monitoring system (TPMS). Electronic stability control (ESC), a traction control system (TCS), brake assist system (BAS) and four-wheel antilock brakes (ABS) also are standard.

2009 Product Line
Kia Motors America offers a dynamic and diverse product line of 11 vehicles to meet the needs of all lifestyles. The 2009 vehicle line features the functional Rondo CUV and award-winning Sedona minivan along with a wide variety of popular passenger cars, including the refined Amanti full-size sedan, purposeful Optima midsize sedan, versatile and compact Spectra and Spectra5, and sporty yet fuel-efficient Rio and Rio5 subcompacts. The vehicle line also features the affordably luxurious Borrego, rugged Sorento and value-packed Sportage SUVs. The 2010 Soul will further complement the lineup when it arrives in dealerships this spring.

About Kia Motors America
Kia Motors America (KMA) is the sales, marketing and distribution arm of Kia Motors Corporation based in Seoul, South Korea. KMA offers a complete line of vehicles through more than 640 dealers throughout the United States. For 2008, KMA recorded its 14th consecutive year of increased U.S. market share. Kia Motors subscribes to a philosophy of building high value, high quality, safe and dynamic vehicles. Kia Motors prides itself on producing vehicles that are exciting and enabling and evoke the Kia tagline "The Power to Surprise."

Kia Motors America is the "Official Automotive Partner of the NBA." Information about Kia Motors America and its full vehicle line-up is available at its Web site, www.kia.com. For media information, including photography, visit www.kiamedia.com.

1 Government star ratings are part of the National Highway Traffic Safety Administration's (NHTSA's) New Car Assessment Program (www.safercar.gov).


Contact Information
Alex Fedorak
Kia Motors America
(949) 468-4813
AFedorak@Kiausa.com
Shelby Hunt
Zeno Group for Kia Motors America
310.566.3985
Shelby.hunt@zenogroup.com

The Workable Bailout Option for the Nigerian Capital Market

The Workable Bailout Option for the Nigerian Capital Market



By A.G. Olisaemeka

It goes without resentment that only physical injection of funds, which will shore up prices, can lift the capital market from its present very low depth. Responding to the financial meltdown afflicting every facet of business in Nigeria, the Presidential Steering Committee on the Global Economic Meltdown has proposed short, medium and long term palliative measures to address these concerns. The committee recently observed:

"What is being worked out is a package of incentives that will ginger production, increase the purchasing power of the ordinary man on the street, and help generate employment opportunities"
"In the medium and long term strategies, aside infrastructural development, the government is looking in the direction of agriculture, through commercial farming clusters and value chain, not only for food security, but for employment generation."

While specific actions were to be taken in the areas of power and oil, it also noted that:

"While the economic outcome does not look promising given the price of oil, the President remains optimistic that Nigeria can seize the moment to redirect our economy and begin on the road to prosperity."

It has warned that the palliative measures will not include a salary increase. The issue for determination at this juncture is whether these short, medium and long term palliative measures are sufficient to uplift the Nigerian capital market. One has no difficulty in coming to a conclusion of an emphatic "No!"
It is clearly understandable that the focal point of the committee is on the general economy encompassing power, oil and gas, agriculture, the money and capital markets and the emphasis is on increased production, employment generation, higher purchasing power, infrastructural development and food security.

It is one's repeated conviction that although these measures are noble and promising, they do not provide urgent answers to the question of the Nigerian capital market meltdown. The answers they provide are both indirect and tangential to the needs of the capital market.

Only a direct government intervention, characterized by physical funds injection can salvage the descent of the Nigerian capital market.

This can be achieved through any of the following ways:

1. Government Bailout of Banks, Stockbrokers and Investors

Investors in the Nigerian capital market as at end of January have lost more than N9 trillion. Much of these funds came from banks that lent heavily to investors and stock broking firms. This has increased banks non-performing assets on one hand and has foisted the hangman's noose on investors and stock broking firms who have now become "slaves" of banks. The Federal Government can intervene by acquiring these toxic assets at cost, paying off the banks. This will stem the tide of possible bank failures arising from their present capital market over-exposure. It will also relieve the investors and stock broking firms of high debt burden in which they are entrapped and made incapable of making further investments. The government can gradually dispose off these acquired shares in the distant future in a way that will not overheat the market.
This position will align with the statement credited to the Minister of State for Finance, Mr. Remi Babalola:

"…but if for instance, the regulator of the banking system came out to say this is the make up for each of the banks and this is the exposure they have, then we can agree. It is not only in the capital market, there is significant exposure in the downstream. There are so many areas that people might have recorded significant downside. What we need to do is to quantify all these and try to see how we can take it out and give them fresh air to continue their business."

(The Punch, February 5, 2009. Page 15)



Indeed this fresh air, this relief, for banks, stock broking firms and investors is all we need to revive the capital market.



2. Direct Purchase of Shares by the Government on the Nigerian Stock Exchange



The Federal Government may also wish to utilize a Special Purpose Vehicle (SPV) or use the Ministry of Finance Incorporated to commence buying of shares on the Nigerian Stock Exchange (NSE). When these shares are purchased, they will serve twin purposes – being investment for the government which it can hold, earn returns and later resell on one hand and increase the demand segment of the capital market leading to market recovery, on the other hand, it is estimated that the sum of N800 billion will suffice as the chain effect will trigger other purchase mandates as investors confidence heightens, following the upward movement of both the market capitalization and the ALL-Share-Index.



Finally, the market seems to be gaining some points in both the index and capitalization, following the government announcement of palliative measures highlighted above. It is one's opinion that this appearance of market recovery is only the natural reaction of investors to new information which cannot be sustained.

On 4th February, 2009, the All-Share-Index gained 2.2% to close at 22, 838.32 points and on the 5th February, 2009, it again gained 2.26% to close at 23, 356.03 points. The market capitalization also gained the same percentage movement to close at N5.108 trillion and N5.2 trillion respectively. This is a far cry of all-time high figures of about 66000 points for the Index and about N13.5 trillion for the capitalization less than a year ago.



The euphoria of this announcement of palliative measures that triggered the current bullish trend in the market is not expected to last for the next five working days unless physical capital injection of funds is articulated and implemented. The government should be in a hurry to do this if it wishes to save the capital market.



President Umaru Yar'Adua has directed the the CBN and Finance Ministry to liaise with other agencies and do more work on some short-term palliative measures being proposed so that they could be implemented soon.

Let physical injection of funds into the capital market be part of these measures if they must succeed in changing the direction of the capital market for good, otherwise the Nigerian Capital Market is still sitting on a keg of gunpowder.



By A.G. Olisaemeka

~ A.G. Olisaemeka is a chartered stock broker and consultant on financial matters on doing business in Nigeria. He is the Author/Editor of Scientists Discover Hell: As Astronauts Find Heaven distributed by Amazon.

Photo: PR Newswire and Publish2 Join Forces to Help Journalists Access and Share News Online

Andrew Hartman, Director, Online Services, PR Newswire, announces partnership with Publish2 that will enable members of PR Newswire for Journalists and Publish2 to utilize the services that each organization offers to the media community. (PRNewsFoto/PR Newswire) NEW YORK, NY AND RESTON, VA UNITED STATES 02/04/2009

5 Feb 2009 15:35 Africa/Lagos


Photo: PR Newswire and Publish2 Join Forces to Help Journalists Access and Share News Online

Partnership Brings 'Link Journalism' to PR Newswire for Journalists' Members; Introduces Publish2 Participants to PRNJ's Global Media Community

NEW YORK and RESTON, Va., Feb. 5 /PRNewswire/ -- PR Newswire and Publish2, a technology company dedicated to helping journalism survive and thrive on the Web, announced today a partnership that will enable members of PR Newswire for Journalists and Publish2 to utilize the services that each organization offers to the media community..


To view the Multimedia News Release, go to: http://www.prnewswire.com/mnr/prnewswire/36906/


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For PR Newswire for Journalists (PRNJ) members, access to Publish2's service provides powerful tools for managing their research, incorporating links into their daily workflow, and building their individual journalist brand by creating profile pages that showcase their work. Key to Publish2's platform is its unique "link journalism" technology. The system enables reporters to easily discover, save, and publish links to the most interesting content on the web. Those links can be combined with journalists' original reporting to create news hubs that help to drive audience engagement.


"The results of the Pew Research Center for People and the Press' December 23rd report confirmed what many in the media industry already knew: the Internet has surpassed print media as the primary news source for the majority of individuals," said Andrew Hartman, director, Online Services, PR Newswire. "As consumers increasingly turn to the internet for their news, there is mounting pressure for journalists to become more involved in online news and to keep audiences engaged. Our partnership with Publish2 offers members of PRNJ a unique opportunity to harness the power of Web 2.0 through 'link journalism' to enhance their research, reporting and overall online presence."


PR Newswire's award-winning, media-only Web site, PRNJ, serves as a trusted source of news and information for journalists from more than 27,000 organizations around the world, as well as for thousands of bloggers. Now available to members of Publish2, PRNJ provides a platform for reporters and bloggers to access news of interest to them through customized news feeds based on keywords, industries, subjects, companies or geographic regions and states. In addition, PRNJ offers reporters and bloggers access to news releases through more than 500 RSS feeds covering different subject matters and industries.


"PRNJ will add greatly to our community of journalists on Publish2 by introducing our services to journalists at its 27,000 media organizations," said Scott Karp, CEO, Publish2. "And our journalist members can now take advantage of PRNJ's comprehensive news release platform to help their research and reporting on the web."


PR Newswire for Journalists members who have accounts with Publish2 will easily be able to save or post a news release accessed via PRNJ by clicking on the "Save It" button that appears in the upper right hand corner of every news release. Publish2 users who click on a news release link within the Publish2 platform will be directed to PRNJ where they can access the release directly. If users are members of one site but not the other, they will be prompted to take a few easy steps to sign up for the other platform where they can begin publishing links and viewing their saved news releases.


About Publish2


Publish2 (http://www.publish2.com/) is a technology company dedicated to helping journalism survive and thrive on the web. Publish2's link journalism platform is powering the next generation of news gathering and news distribution. Journalists across the world use Publish2 to make research and reporting more efficient and effective. Major news sites and vertical niche sites use Publish2 for prominent link-aggregation features that increase traffic and engagement. Publish2 is based in Reston, VA.


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Established in 1954, PR Newswire has offices in 14 countries and routinely sends its customers' announcements to outlets in more than 170 countries and in more than 40 languages. Utilizing the latest in communications technology, PR Newswire content is considered a mainstay among news reporters, investors and individuals who seek breaking announcements from the source. PR Newswire's leading services include ProfNet(SM), eWatch(TM), MEDIAtlas(TM), Search Engine Optimization, MediaRoom, MediaSense(TM), MultiVu(TM), U.S. Newswire, the preeminent policy newswire in the industry, Vintage Filings, the fastest growing Edgar filing company, and Hispanic PR Wire, LatinClips and Hispanic Digital Network, the foremost Hispanic communications services. PR Newswire is a subsidiary of United Business Media Limited, a leading global business media company that serves professional commercial communities around the world. For more information, go to http://www.unitedbusinessmedia.com/.


About United Business Media Limited


UBM focuses on two principal activities: worldwide information distribution, targeting and monitoring; and, the development and monetisation of B2B communities and markets. UBM's businesses inform markets and serve professional commercial communities -- from doctors to game developers, from journalists to jewellery traders, from farmers to pharmacists -- with integrated events, online, print and business information products. Our 6,500 staff in more than 30 countries are organised into specialist teams that serve these communities, bringing buyers and sellers together, helping them to do business and their markets to work effectively and efficiently.


For more information, go to www.unitedbusinessmedia.com

Contact:
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Vice President, Public Relations
PR Newswire
rachel.meranus@prnewswire.com
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The Meltdown of the Nigerian Capital Market: Causes and Consequences

The Nigerian Stock Exchange

The Meltdown of the Nigerian Capital Market: Causes and Consequences

By A.G. Olisaemeka

The current crash of the Nigerian Capital Market as been
unprecedented in its historic evolution since 1960 to date. Its market capitalization has nose-dived from an all time high of N13.5 trillion in March 2008 to less than N4.6 trillion by the second week of January 2009. Besides, the All-Share Index (a measure of the magnitude and direction of general price movement) has also plummeted from about 66000 basis points to less than 22000 points in the same period. The stock prices have experienced a free-for-all downward movement regime with more than 60% of slightly above 300 quoted securities on constant
offer (supply exceeding demand) on a continuous basis. Consequently many of the quoted stocks lack liquidity as their holders are trapped, not being able to convert them to cash to meet their domestic and other investment needs. On the other hand, fresh investors are cautious of jumping into a vehicle that does not seem to have a brake should they wish to disembark.




A number of factors have been blamed for this sorry state of affairs and they include:

1. A Global Phenomenon
The present seeming collapse of the world economy has not excused that of Nigeria. Many stock markets of countries, from USA to Britain, from China to Japan, Russia, France and others are in serious trouble. The world is indeed a global village and the interrelatedness of world economies is very evident that any development in any part of the world affects other parts as well. Consequently, the Nigerian capital
market is not insulated from this global malignant cancer.

2. Pull-Out of Various Foreign Investors
This is another factor believed to have contributed to the continuous fall of the Nigerian stock market. Many foreign investors that already have troubles in their home economies have pulled out of the Nigerian stock market leading to dumping of shares beyond the ability of domestic investors to contain. Supply of equities has, in consequence of this, overwhelmed demand, leading to price fall. According to the Director-General of the Nigerian Stock Exchange, Prof. Ndi Okereke-Onyiuke, "…available statistics shows purchase by foreign investors during 2008 to be in excess of N150.135 billion representing 6.3% of the aggregate turnover. This is a decline when compared with the N256 billion recorded in 2007. Concurrently, total sales during the year were in excess of N556.93 billion, culminating in a net outflow of about N406.8 billion."

3. Lack of Infrastructure and High Production Costs

The cost of doing business is high in Nigeria. Basic infrastructures like good roads, power supply are lacking, leading to high cost of doing business. Many quoted and unquoted companies like Dunlop Nigeria Plc and Michelin Nigeria have closed down shops. Most of the textile industries have also stopped production, leading to the crash of their share prices. The shares of Dunlop Nigeria Plc that sold above N6 per
share a few months ago now trade below N0.6 per share. Evidently, high production costs reduce profitability or increase loses which also impact negatively on the share prices.


4. Impact of Commercial Banks
Following the forced capitalization of banks to a minimum of N25 billion, almost all banks utilized and accessed the capital market to raise funds. Within two years plus, many of the banks besieged the capital market more than once, falling over one another in raising funds through mega offers in a single tranche. The banks competed to suck every liquidity from the Nigerian financial system, thus overheating it. Through enticing marketing strategies, the banks succeeded in their various offers, but left the capital market place bleeding and gasping for breath. The primary market seemed to experience a boom while the secondary market was sucked dry as many investors dumped their shares in the secondary market, in favour of
the primary market offers achieved through bewitching marketing efforts of banks. A total of N2.2 trillion was raised through various public offers dominated by the banks in 2008. Much of this came through disposal of shares in the secondary market.


5. Avalanche of Private Placement Offers

A number of private companies did private placement of their shares at lower prices while they sought or intended to seek quotation of their shares at higher values on the Nigerian Stock Exchange, thus making such private placements very attractive. This lured investors to dispose or dump their shares in the secondary market, purchase the private placements and dispose of same immediately after their listing
on the Stock Exchange at higher prices. The Nigerian capital market thus became a battleground as private companies were falling on each other through avalanche of offers. The regulating bodies were impotent as the Investment and Securities Act, 2007, does not place private companies under their control. A number of companies that did private placements to suck liquidity from the Nigerian capital market,
include: Investment and Allied Plc, Globe Reinsurance Plc, Multiverse Ltd, Swap Technologies Ltd, Starcomms Ltd, Equity Assurance Plc, Oasis Assurance Plc, IHS Ltd, Indomie Nigeria Ltd, Tetrazzini Ltd, Food Concepts Ltd, Geolfluids Ltd, Goldlink Insurance Ltd, Universal Insurance Ltd, Chams Plc, Fidson Health Care Plc, Reltel Wireless Ltd, MTN Ltd, etc. Thus so much liquidity was sucked from the Nigerian
capital market in favour of private placements of private companies, many of which remain unquoted till date, leading to the crash of the Nigerian capital market.

The Director-General of the Nigerian Stock Exchange, Prof. Ndi Okereke-Onyiuke admitted this fact in her review of the performance of the Nigerian capital market when she observed inter alia "…a significant portion of funds that left the stock market for private placement market are still locked-in as many of the issues have not applied to the Nigerian Stock Exchange for listing…."


6. Banks Short-Term Orientation Imposed on Long-Term Capital Market

At a time, banks were financing about 65% of the Nigerian capital market through margin facilities granted to investors and stock broking firms. Many banks abandoned or sidelined their core operation of providing credit to the real sector in favour of "playing" the capital market for short-term speculative activities that seemed to pay off up to March 2008 before the cancer that afflicted the market set in. It is estimated that the total exposure of banks to the capital market in terms of trapped funds is in excess of N1 trillion. Thus, the capital market place became overheated with so much speculative activities of banks that by the time the market caved in,
it became difficult for them to exit through the narrow door as there were no mega investors to "check them out". The Nigerian capital market was no longer seen as a market for long-term funds, but that of a short one. The banks embarked on unguarded short term treasure hunting spree from the capital market as their speculative activities soon overheated the capital market.


7. Inability of the Federal Government to Plot a Bailout Option

There were blunt statements from the Federal Government that it will not intervene directly in the capital market which it sees as a purely private affair. The government lacked the wisdom to examine the socio-economic implications and chain effects of a failed capital market. It therefore became impotent of hatching a bailout plan for its beleaguered capital market unlike the governments of USA, Britain, France and so on, playing politics with such a sensitive issue that borders on "life and death". Thus the government outright refusal to intervene directly in the crashing stock market has depleted any hope of a possible market rebound leading to further loss of confidence among investors. This has sparked off supply of shares by desperate investors who, having seen no hope in the horizon, wish to cut their losses short by rushing to sell at any price.

8. Structural Deficiencies of the Nigerian Stock Market

There appears to be some inadequacies of the Nigerian capital market, especially the absence of market makers. As at third week of January 2009, the Nigerian Securities and Exchange Commission (SEC) has licensed five market makers, but the Nigerian Stock Exchange was yet to also license them due to avoidable administrative bottlenecks. Thus, there are no functional market makers that can provide exit windows for investors who wish to check out.


9. Regulating Inconsistencies and Pronouncements

The apex regulator of the Nigerian stock market, the Securities and Exchange Commission, prior to the crash of the market had alleged publicly that stock market prices were being manipulated and it announced that it was probing some quoted companies, such as Dunlop Nig. Plc, Eternal Oil Plc, Capital Oil Plc, and so on. Following the publication, investors became afraid that such statements coming from
the principal regulator evidenced the existence of unrealistic prices of all stocks, thus provoking panic selling of stocks among investors. This contributed to the crash of the market. Unfortunately till date, not much has been heard of the outcome of the SEC investigation that transmitted shockwaves down the spines of investors.

Opportunities of the Capital Market Meltdown

The current meltdown of the Nigerian capital market has provided excellent opportunities for both local and foreign investors to grab the shares at rock-bottom prices with the greed of a hungry lion. There appears to be no better time to buy the shares in the Nigerian capital market than now. The fundamentals of the Nigerian capital market are still very strong- high earnings per share, high dividends per share, high earning yields, high dividend yields, good bonuses and low price earning ratios. With the complete internationalization of the Nigerian capital market, foreign investors can acquire up to 100% of Nigerian companies and exercise full control. It is believed that the acquisition opportunities offered by the current capital market meltdown in Nigeria can only come, but once-now! Corporate hawks
should be on the prowl now.

10. Pressure from Banks
Following the more than N1 trillion of banks’ funds tapped in the capital market, the banks have become violent on the borrowers of funds (investors and stock broking firms) used to acquire shares. Currently these banks have brought suicidal pressure to bear on these borrowers, compelling them to sell their shares at any price, just to have a moment of respite. This has further increased the supply of shares at ridiculous prices, leading to greater market crash.



Consequences of the Market Melt doom.

The meltdown of the Nigerian capital market characterized by the crash of the market capitalization from a record high of N13.5 million in early 2008 to less than N4.5 trillion in the corresponding period of 2009 has manifested the under listed costs and consequences.

1. Loss of confidence in the Nigeria economy, as many investors prefer to convert their naira to foreign currencies, especially the dollar and hold them through their domiciliary accounts. This has in part led to worsening exchange rate against the naira.

2. Mega losses by investors in the capital market whose total losses are not below 2/3 of their investment before the meltdown. In other words, investors now have less than one third of the value of their investments before the free-for-all fall.

3. Trillions of naira – what remains of the capitalization – tied down in unsaleable stocks. Most of the securities are on serious offer – an indication that there are no willing buyers to check out any investors who wishes to do so. Here investors not only contend with their losses to date, they also contend with a supply glut that they seem trapped with the remaining securities in their sad possession.

4. Over exposure of investors and stock broking firms to banks. Before the meltdown, banks engaged in lending frenzy through margin account. Borrowers were required to contribute 30% while the banks contributed 70% and the entire 100% was used for stock speculation. Currently the market meltdown has wiped out the investors 30% contribution, while half of the banks 70% have also been wiped out. Notwithstanding this scenario, the banks are still calculating interest on daily basis and posting to the debit of the borrowers account investors and stock broking firms, thus to sting perpetual liabilities on the borrowers which only Divine intervention can save these borrower from the hangman – the banks.

5. The market meltdown has also led to credit crunch in the economy as banks do not have enough to lend to the productive sector leading to high interest rate. Given that interest rate – cost of fund to manufacturers is a very significant component of cost of production, this translates to higher prices of goods and services, leading to inflation.

6. The meltdown has also led to the loss of confidence of banks and other lenders on shares as collateral for loan facilities. Shares which were before now readily accepted by banks as collateral are now shunned by them. The few of them that dare to touch them for this purpose only do so with a hundred meter pole, at ridiculous discounts as some of them seek up to 300% cover.

7. The market meltdown has led to loss of depositors funds with the banks. It is estimated that banks are exposed to the capital market in excess of N1 trillion through loss in the value of securities for which margin facilities were granted investors in Nigeria. This has significantly increased the quantum of banks non-performing assets – Toxic assets.

8. The market meltdown has also induced massive withdrawal of foreign investors from the Nigerian financial system, damping the remaining source of hope for possible market recovery.

9. Loss of value of pension Asset. Following the passage of the Pension Reform Act, 2004, pension assets are now privately managed. Under the Act, every employer, whether in the private or in the public sector is obligated to deduct 71/2% of every employee’s emolument, then add another 71/2% totaling 15%. This is remitted on monthly basis to a pension asset custodian under the superintendence of a pension fund administrator. The PFAs manage the pension assets by investing in a variety of instruments including equities. The PFAs also maintain retirement savings account for employees showing the monthly deductions remitted on their behalf as well as the profits or losses arising from their investments. It is estimated that more than N2 Trillion of pension assets has gone down the drain casting doubts on the ability of PFAs to repay retirees their pension and gratuities.


10. Inability of stock broking firms to settle their clients for securities sold. With the current meltdown, many stock broking firms cannot discharge their obligation to their clients. Proceed of shares sold by these stockbrokers for their clients are greedily seized by the banks to whom the stock broking firms are owing billions of naira through margin accounts. Incoming credits or debits arising from sale of securities or purchase of securities can only be settled through the appointed settlement banks. This gives the banks the opportunities to absorb any incoming credits to service huge margin facilities granted to stockbrokers. Thus many stock broking firms rejects sale orders as they know that the banks will seize the credits, leading them to contend with their clients.

11. Loss of Confidence in the regulatory bodies.
There appears to be a loss of confidence on the regulatory bodies of the Nigerian Stock Exchange as well as the Securities & Exchange Commission whose regulatory impotence has been largely blamed for the present woes of the capital market and whose principal officers appear to have exhausted all they know and all they can offer to change the fortunes of the market. Many market analysts believe that they ought to have thrown in the towel instead of trying to stay put and superintend the "funeral mass' of the market as they have nothing again to offer.

12. On a positive note, the Nigerian Capital Market meltdown has compelled investment diversification to other assets, especially real estate and government bonds. Investors now scamper for safety rather than high returns at the expense of possible huge or near total losses which equity investment symbolizes –where the investor either enjoys too much or suffers too much.

The market meltdown: The Way out

Only physical injection of funds can change the direction of the market. No amount of grammar from "this-ism" to 'that-ism" will avail. With the present liquidity crunch and investors loss of confidence, it is not reasonable to expect salvation from individual and institutional investors. A strong government bail-out as obtains in USA, Russia, Britain and Singapore, is the magic wand needed to be waived in the four corners of the market. The issues of government intervention should not be politicized. The Nigerian Capital Market is not a southern affair. Already the effect of its meltdown may give rise to the collapse of many banks whose hundreds of billions of naira are trapped unless urgent government intervention is articulated and hurriedly implemented.

© Nigerians Report 2009.All rights reserved.

~ A.G. Olisaemeka is a chartered stock broker and consultant on financial matters on doing business in Nigeria. He is the Author/Editor of Scientists Discover Hell: As Astronauts Find Heaven distributed by Amazon.

Changing Faces Will Make History At FESPACO 2009

Faruk Lasaki's Changing Faces will make history at the 2009 African Film Festival of Ouagadougou (FESPACO) as the first Nigerian film that will be screened in a French version
in an African film festival. Changing Faces will be screened in the category of African Video - Panorama between 28th of February and 7th of March 2009 at the African film festival, held biannually in Ouagadougou, Burkina Faso.

According to Robert Minangoy, the Regional Audio- Visual Attache of the French Embassy in Nigeria, Changing faces and four other Nigerian films will be shown at FESPACO. They are the following:
• TRAPPED DREAM by Ubaka Joseph Ugochukwu
• OLURONBI by Buariu Adebayo Ogundimu
• ARUGBA and
• LIFE IN SLOW MOTION by Tunde Kelani.

Africa: News Video Update

Western Union Launches First-Ever Global Brand Campaign

Western Union Launches First-Ever Global Brand Campaign

Can One Word Answer a Million Different Needs? Global Money-Transfer Company Says yes!

ENGLEWOOD, Colo. (February 2, 2009) Soon, the world will see global money transfer company Western Union through a new set of eyes. Today, for the first time in the company's 150-year history, Western Union launches its first-ever comprehensive global brand initiative.

Western Union's global yes! campaign — the result of extensive consumer research from around the world — is a burst of positive. The campaign targets the 200 million people who live outside their country of origin and embraces their hopes and dreams. It is estimated that these consumers sent nearly $400 billion in remittances to their loved ones in 2008.1

"This is a very exciting time for Western Union," said Gail Galuppo, Executive Vice President and Chief Marketing Officer, Western Union. "Western Union believes in people who are on the move in pursuit of their dreams. Even in these uncertain times, the optimism and positivity of our consumers is inspiring. This campaign reflects their can-do spirit. Can a mother send her love to her son from 6,000 miles away? The answer is yes! Western Union's services enable these connections between people around the globe."

The campaign features robust multi-channel elements that will broaden and align brand communications within each of the more than 200 countries and territories in which Western Union operates.

Western Union and global agency of record Publicis Hong Kong assembled prominent creative talent for the campaign. Artists include world-renowned film director Antoine Bardou-Jacquet, celebrated photojournalist Steve McCurry and famed typographer David Carson. The television commercial features music by Moroccan musician Hindi Zahra.

Western Union selected these artists because of the humanity in their work and the contemporary fresh face their collaboration brings to the brand. Bardou-Jacquet and McCurry traveled the world to capture the striking images behind the campaign, including stops in Morocco, Singapore, Los Angeles and Cape Town, South Africa.

The creative behind Western Union's campaign centers on the optimism and hope inherent in the word "yes!" and highlights tangible acts that bring the brand to life. The yes! campaign clearly and emotionally communicates its optimistic point of view using real people in its advertisements. The campaign also reflects the truly global nature of Western Union, with elements in more than 40 languages.

Campaign Elements
The yes! brand campaign elements will be translated into 40 languages. They include:
Print, broadcast and online advertising;
Online consumer engagement via a dedicated campaign microsite;
A cause marketing promotion tied to The Western Union Foundation;
Street art, billboards and other out-of-home creative;
Point-of sale materials for more than 320,000 Western Union® Agents in more than 200 countries and territories.
1 Aite Group

About Western Union
The Western Union Company (NYSE:WU) is a leader in global money transfer services. Together with its Vigo and Orlandi Valuta-branded money transfer services, Western Union provides consumers with fast, reliable and convenient ways to send and receive money around the world, as well as send payments and purchase money orders. It operates through a combined network of more than 365,000 Agent locations in over 200 countries and territories. In 2007, the company processed nearly 168 million consumer-to-consumer money transfers and 405 million consumer-to-business transactions. Famous for its pioneering telegraph services, the original Western Union dates back to 1851. For more information, visit www.westernunion.com.


Media Contact:
Jen Newberg
Cone
jnewberg@coneinc.com
+1 617-939-8359
Kristin Kelly
Western Union
kristin.kelly@westernunion.com
+1 720-332-4751