Vanguard Markets, September 1, 2014 edition

ECENTLY, CHIEF Olusegun Oba-sanjo, a former

president, went on record to berate the administration of President Goodluck Jonathan for decimating the country’s middle class. Addressing a 150-strong delegation of the Nigerian Market/Traders Council he narrated how Nigerians that ought to be well-to-do under normal circumstances are unable to purchase new cars under the prevailing economic situation.

He cited the case of a medi-cal practitioner to buttress his point. ‘A friend of mine, Dr. Okoro, a medical doctor, his wife is also a medical doctor and they have a daughter too, who is also a medical doctor. Between the three of them, they could not afford a new car. They had to go to Saudi Arabia – in search of greener pasture.’

The case of the three Dr. Okoros was, no doubt, used by the jocular retired general, to illustrate the difficulties faced by many well educated Nigerians unable to pay for

the consumer comforts their peers in developed countries take for granted.

Without question, the Nigerian economy has un-dergone a series of painful adjustments since the global financial crash 0f 2008. In-

terest rates have gone up, companies have trimmed headcount and slashed hiring rates, new listings on the Ni-gerian Stock Exchange have petered out to a trickle, and investments in new plants have gone under review.

Yet, it takes a leap of pre-sumption to infer from these that the Nigerian middle class is an endangered spe-cies.

On the contrary, the evidence is that Nigeria is weathering the storm. A quick rundown of the facts shows that annual growth rates remain respectable in the middle single digits, the power sector is showing signs of resurrection, and there is growing business confidence that the worst is over. The growth of the mid-dle class, which is just one substract from many other indicators of the country’s economic advance, continues apace. Whether this is solely because of or in spite of the policies of the federal gov-ernment is another debate altogether.

A week before Obasan-jo’s comments, Standard Bank, South African finan-cial services giant trading as Stanbic IBTC in Nigeria, published a report, Under-standing Africa’s middle class. It examines the fate of the middle class across 11 sub-Saharan countries - An-gola, Ethiopia, Ghana, Ken-ya, Mozambique, Nigeria, South Sudan, Sudan, Tan-zania, Uganda and Zambia - since the wave of economic liberalization and privatiza-tion launched at the start of the millennium.

Indirectly, it also interro-gates the meaning and cor-rect application of the term middle-class in Africa.

Soft power, hard facts

! page VM2

Vanguard Markets | Monday, September 1, 2014 | Issue 008

FIXED INCOME & FOREX

The myth of Nigeria’s endangered middle class

0B 10.1 10.515/08 18/08 18/0825/08 26/08 26/0828/08 29/08 29/0820/08 21/08 21/08

840B 11.7 15.5

14.5630B 11.313.5

420B 10.912.5

210B 10.5 11.5

FGN Bonds & TBills NITTY NIBORFGN BondsTreasury Bills

O/N1M

3M6M

JAYWALKER

161.518/08 26/08 29/0821/08

163.0

162.5

162.4

162.1

161.8

FX ($/N)

Source: FMDQ

BidAsk

1M2M

3M6M

9M12M

R

Beyond reach: Shirts on display at the Ermenegildo Zegna store in Lagos. The company said that its strategy in markets like Nigeria is to target the top 1 per cent of the population, or perhaps even less

Between 2000 and 2014, Nigeria’s middle class grew by 600 per cent to 4.1 million households or 11 per cent of households in the country — Simon Freemantle, Standard Bank Currency Central Rate

SWISS FRANC 169.743

YEN 1.4929

CFA 0.3019

WAUA 234.9074

RIYAL 41.3891

DANISH KRONA

27.4724

SDR 235.6702

P-Square performing in Abidjan, Cote d’Ivoire

MoFr25.20

25.22

25.26

25.24

25.2825.2661

Tu We Th Fr

YUAN/RENMINBI

MoFr204.0

204.5

205.5

205.0

206.0204.7639

Tu We Th Fr

Euro/N

MoFr257.2

257.3

257.5

257.4

257.6257.4179

Tu We Th Fr

£/N

MoFr155.0

155.1

155.3

155.2

155.4155.23

Tu We Th Fr

$/N

FOREX RATES

InsideSpotlight directs its beam at the flaring career of Andrew Alli, CEO, Africa Finance Corporation.

! Page VM6

! Page VM3

ECONOMY

vm_issue008.indd 1 02.09.2014 11:04:35

Obiora [email protected]

ARRY MADOWO, a reporter at Kenya’s Daily Nation news-

paper, broached a sensitive topic in his column last week.In a story titled It’s Nigeria, not China, that is slowly colo-nising us bit.ly/NGR-not-CHN he invited Kenyans to look away from Beijing , and towards Africa’s biggest econo-my as the real coloniser. From entertainment, to literature, to banking, to business, the soft power of Nigerian influence is fast diffusing all across the for-mer British colony.

He admonished his country-men to be aware that ‘the grow-ing social and cultural influence of Nigeria in Kenya is the natu-ral precursor to full economic domination. Though China is investing millions of yuan in Kenya, it is the colourful folks from Africa’s West coast with their agbadas and distinct ac-cents truly capturing the hearts and minds of Kenyans. It is only a matter of time before the naira gains currency with the popula-tion here. The Nigerian coloni-sation of Kenya is here.’

The rise of Nigerian influ-ence across the continent dates back a long time. In the post-independence era, the country played a role in the founding of the Organization of African Unity (the precursor of the Af-rican Union). It dedicated sig-nificant resources to the libera-tion struggle in many African states unafraid of the criticism and sanctions it faced in West-ern capitals.

In the seventies, visionaries like Chief Henry Fajemi-rokun led the clamour for the creation of the Economic Community of West African States (ECOWAS) to encour-age regional integration, and provide easy access for Nige-rian businesses and products to neighbouring markets. The roles played by its servicemen in peacekeeping, and gradu-ates in the Technical Aid Corps have earned applause it from other African countries.

Nigeria’s cultural charm offensive begun in the early nineties as Nollywood, its home video industry, churned out titles at a clip that played on themes that Africans eve-rywhere could relate to. The spread of cable TV only served its spread aided by large, estab-lished Nigerian communities.

Nollywood movies cre-ated a soft spot for Nigeria’s entertainment industry that extended to francophone and lusophone countries. By the time its dancehall youth mu-sic scene exploded in the early noughties the rest of Africa was already conditioned to Nige-rian voices, style, and its heady mix of idiosyncrasies, which

were blatantly glamourized in dance steps, beats, and tunes.

Nigerian music also ben-efitted from the explosion of the under-30 demographic all over Africa, many of whose constituents identified with the country’s budding stars. The time had come to say roll over makosa, and soukous. Naija sound and swag had come to claim the title.

When former President Obasanjo launched his Afro-centric foreign economic rela-tions agenda, his train always included key economic players. He did not hide the fact that he

told African leaders to award contracts to these business-men as repayment for favours and support they enjoyed from Nigeria.

This time it was not the petty Anango (Yoruba) trad-ers hawking plastic articles in Bouaké, Cote d’Ivoire, the hustling Igbo businessmen of Kumasi selling car spare parts, or the long-settled Hausa com-munities in Mbuji Mayi, Congo that acted as intermediaries to Jewish and Lebanese buyers in the diamond trade. It was the big guns. They had the capital and connections to fly in on

private jets, speak with presi-dents, and seal deals in the plushest hotel suites. Aliko Dangote, Africa’s richest man, who has invested billions of dollars in different countries is one example.

One group that watched these developments closely were Nigerian banks. Forced to expand during the 2005 consolidation spree, Nigerian banks had been scouting for new opportunities outside its crowded shores. The United Bank for Africa (UBA) hired McKinsey, a global consulting firm, to guide it on the jour-ney of continental expansion. Before long, Guaranty Trust Bank, and others followed suite. As the banks and deal-makers settled in they took Nigerian software companies, and other service providers to set up their operations. On ar-rival, they too identified gaps

in the market and moved to fill them. At a June meeting of the Nigeria-South Africa Cham-ber of Commerce, Osayaba Giwa-Osagie, a chamber di-rector told members that ‘Ni-gerian companies have a huge appetite for investing outside of Nigeria.’

The penetration of Nige-rian’s soft influence is not a perfidious colonisation a la Berlin Conference 1885. It is the natural consequence of opportunity-seeking Nigerians who are successfully exporting culture and capital like every other migrant group has done since the dawn of civilisation. If it wins hearts and minds, cre-ates jobs for their citizens and opens up untapped areas then it should be celebrated.

It behoves governments in countries like Kenya to ensure that Nigerians do not become targets of xenophobic hyste-ria. The irony is that many African countries enjoy a fa-vourable trade balance with Nigeria, exporting more here that Nigerian does there. Pro-fessor Jonathan Moyo, the Zimbabwean minister of In-formation, Media and Broad-casting Services reminded his countrymen that ‘Nigeria sacrificed for our independ-ence as they participated in a meaningful way. We cannot forget what they did for us simply because we are going through economic hardships. The observation that they are in critical sectors is not dif-ferent from the fact that we are wearing clothes produced outside the country.’ Well said minister, well said. ;

BUSINESSVM2

JAYWALKER

ECONOMY

VM | Monday, September 1, 2014 | Issue 008

Soft power, hard facts

L

The bank classifies house-holds with an annual con-sumption of between $5,500 and $42,000 per annum or between $15 and $115 daily as middle class. Households that consume under $5,500 or be-low $15 daily are categorised in the low-income band.

Simon Freemantle, a political economist at the bank and the report’s author, found that between 2000 and 2014, Nigeria’s middle class grew by 600 per cent to 4.1 million households or 11 per cent of households in the country. These households spend between $23 and $115 a day. In aggregate, in the eleven countries studied, the middle class has risen by 15 million households over the last 14 years, from less than 5 million in 2000. He predicts that over the next 16 years an additional 14-million house-holds will enter the middle class. Source: Standard Bank Research

The future is bright

0Ng Ang Gh Sud Ken Moz Ug Zam Tz Eth

10%

20%

40%

30%

50%

60%

70%

80%

Data visualisation by Publican Media

New middle class households, 2000-2014(m)

New middle class households, 2014-2030(m)

Ng = Nigeria, Ang = Angola, Gh = Ghana, Sud = Sudan, Ken = Kenya, Ug = Uganda, Zam = Zambia, Tz = Tanzania, Eth = Ethiopia

W Continued from Page VM1

The myth of Nigeria’s endangered middle class

Naija sound rules Africa. Nigerian talents Flavour, Davido, and Phyno share the stage

It is only a matter of time before the naira gains currency with the population here. The Nigerian colonisation of Kenya is here. – Larry Madowo, Kenya’s Daily Nation

The Middle of the Pyramid: Dynamics of the Middle Class in Africa. The Tunis-based pan-African development bank, had pinned middle class status on individuals earning from $2 to $20 a day. In total, its generous cut-off mark cap-tured 300 million Africans, about one-third of the conti-nent’s population, in this con-tested class.

Freemantle notes that, in reality, the vast majority of ‘such individuals are excep-tionally vulnerable to various economic shocks, and prone to lose their middle-income status.’ Notwithstanding, he is optimistic on the sustained expansion of SSA’s middle class. He forecasts that be-tween 2014 and 2030 ‘an additional 14 million middle-class households will be added across the 11 focal countries – tripling the current number. Including lower-middle-class households, the overall num-ber would swell to over 40 million households by 2030,

from around 15 million today.’ This goes to confirm the

projection shared in the Rap-id-growth Market Forecasts report published by Ernst & Young in February. On Ni-geria, it said that ‘the number of households earning more than US$10,000 will nearly double from 6 million in 2012 to just over 11 million in 2022.’

The Nigerian middle class has gathered sufficient mo-mentum, and it would take a determined effort to put it in reverse. An inability to pur-chase a new car in a family of three medical doctors may have more to do with their credit history or an insuffi-cient knowledge of available vehicle financing products and less to do with what the occupant of Aso Rock villa does. As Freemantle rightly noted in his report, ‘Africa has structurally changed, that there has been real improve-ment in the last 10 years. Not just cyclical, it’s been a real structural change.’ ;

AfDB metric*

Low income: Less than $2 or N400 per day

Middle income: $2 to $20 per or N400 t0 N3,400 per day

Standard Bank metric*

Low income: Less than $15 or N2,500 per day

Middle income: $15 to $115 or N2,500 to N20,000 per day

Magic Number: Which middle class are you?

*Figures are rounded to upper N100.

He is convinced that the ‘Af-rica rising’ narrative remains credible.

One thing the report did find though is that the actual size of Africa’s middle class is a wide cry from the 300 mil-lion figure pushed by the Af-rican Development Bank in its influential 2011 report,

vm_issue008.indd 2 02.09.2014 11:04:38

LEGEND

15-week trading bar:This bar shows the volume of the company’s shares traded during the 5 most recent weeks. Each alternate colour bar represents a consecutive week. The bar is to be read from left to right. The first bar on the left (light blue) represents the traded volume five weeks ago. The next bar (grey) represents the volume 4 weeks ago. The 5th and last bar (light blue) signifies the volume of shares exchanged last week. The purpose of the Weekly Trading bar is to give readers an instant view of trading volumes as they compare on a week-by-week basis.

2Liquidity Rating: This indicates the level of demand for a company’s shares based on the number of deals rather than volume done over the past week. Stocks are graded accord-ing 5 categories. Blue spheres are used to represent liquidity. • Category 5: This is the highest liquidity rating shown by 5 blue spheres.

Stocks that have traded more than 20 deals per day on at least 4 days in the past week are awarded this score

• Category 4: This is shown by 4 blue spheres. It indicates that the stock has

traded between 12 to 19 deals per day on at least 4 days in the past week• Category 3: Shown with 3 spheres, this liquidity classification represents

those stocks that have traded 8 to 11 deals per day on at least 4 days in the past week

• Category 2: Shown with 2 spheres it identifies those stocks that traded 4 to 7 deals per day on at least 4 days in the past week

• Category 1: This is shown by one blue sphere to represent stocks on which 3 deals and/or below were traded per day on at least 4 days in the week.

SECTOR PRICE CHANGES - AUG 29, 2014MARKET REVIEW– AUGUST 25-29, 2014

TRADING UPDATE

DASHBOARD

TickerFriday 5-day 4-Week

5-Week trading1

52-Week price rangeYtD PE EPS Liquidity

Rating2Close Change, % Volume Open Week Hi Week Lo Change,

% Volume Open Change, % Volume Low Close ( ) High

7UP 139.31 0.22% 981 128.51 139.31 128.11 8.40% 5,325 112.35 24.00% 17,423 64.80 139.31 95.03% 30.05 4.46 ABCTRANS 0.70 1.45% 530,340 0.70 0.73 0.68 0.00% 571,167 0.77 -9.41% 690,323 0.65 0.97 -10.46% 3.24 0.21

ACCESS 9.90 0.61% 179,273 9.64 10.00 9.53 2.70% 2,714,312 9.98 -0.80% 13,121,208 7.22 10.91 3.13% 6.30 1.57 AGLEVENT 1.47 5.76% 1,550 1.40 1.53 1.39 5.00% 4,341 1.40 5.00% 8,271 1.25 1.87 -9.82% 6.53 0.23

AIICO 0.80 0.00% 15,646 0.80 0.83 0.80 0.00% 421,760 0.81 -1.23% 993,267 0.74 1.00 -13.04% 5.26 0.15 AIRSERVICE 2.09 -4.13% 3,402 2.20 2.20 2.07 -5.00% 5,897 2.21 -5.43% 25,803 2.00 4.23 -37.61% 4.18 0.50 ASHAKACEM 33.50 0.90% 30,540 33.87 34.00 32.00 -1.09% 51,625 33.00 1.52% 229,351 13.87 34.20 53.11% 41.88 0.80 BETAGLAS 19.00 0.00% 219 17.96 19.00 17.96 5.79% 24,081 17.11 11.05% 25,855 10.69 22.10 31.67% 5.58 3.38 CADBURY 57.55 -1.29% 492 63.37 63.37 57.55 -9.18% 5,582 70.54 -18.42% 31,791 57.55 110.00 -40.78% 38.12 1.57

CAP 39.02 -1.94% 204 39.05 39.95 39.00 -0.08% 2,881 40.00 -2.45% 15,573 35.96 51.66 -18.67% 23.32 1.67 CONOIL 65.01 -4.40% 3,910 68.45 71.50 65.01 -5.03% 16,471 61.98 4.89% 126,800 25.92 79.80 6.02% 19.49 3.34

CONTINSURE 1.00 0.00% 33,750 0.98 1.02 0.95 2.04% 158,427 1.12 -10.71% 3,256,496 0.93 1.33 -16.67% 6.25 0.16 COURTVILLE 0.55 0.00% 401 0.57 0.57 0.55 -3.51% 20,872 0.51 7.84% 90,025 0.50 0.89 -15.38% 5.18 0.11CUSTODYINS 3.95 1.28% 3,432 3.86 3.95 3.75 2.33% 15,473 4.00 -1.25% 358,804 1.30 4.11 81.19% 16.33 0.24

CUTIX 1.83 -0.54% 616 1.90 1.99 1.81 -3.68% 5,624 1.99 -8.04% 69,435 1.59 2.27 -6.15% 9.68 0.19CWG 4.75 0 4.80 5.00 4.75 -1.04% 48 4.75 0.00% 1,003 4.75 5.83 -18.52%

DANGCEM 225.00 -0.01% 1,886 229.97 229.97 225.00 -2.16% 9,545 224.10 0.40% 63,330 185.00 250.02 4.09% 19.07 11.80 DANGFLOUR 7.00 -2.23% 997 7.50 7.50 7.00 -6.67% 338,373 7.55 -7.28% 367,900 7.00 10.76 -31.57% DANGSUGAR 8.74 2.46% 16,565 8.70 8.85 8.44 0.46% 57,775 9.01 -3.00% 519,201 8.44 12.49 -22.65% 10.79 0.81 DIAMONDBNK 6.10 0.83% 164,480 6.20 6.25 6.03 -1.61% 338,345 6.35 -3.94% 2,005,144 5.86 8.20 -18.67% 3.69 1.65

ETERNA 3.71 -4.63% 5,014 3.88 3.90 3.70 -4.38% 21,002 3.80 -2.37% 163,816 2.48 5.73 -21.56% 6.10 0.61 ETI 16.90 2.42% 193,249 16.50 16.90 16.20 2.42% 226,240 16.87 0.18% 991,171 12.40 18.60 3.11% 4.61 3.67

FBNH 15.19 4.83% 107,102 14.61 15.20 13.99 3.97% 508,909 14.40 5.49% 2,374,397 11.50 17.29 -6.81% 6.96 2.16 FCMB 4.25 -0.70% 219,255 4.30 4.33 4.16 -1.16% 349,045 4.23 0.47% 1,612,700 3.01 4.59 10.68% 4.83 0.88

FIDELITYBK 1.98 -0.50% 7,847 1.97 2.01 1.96 0.51% 76,141 2.01 -1.49% 1,481,917 1.85 2.95 -26.67% 2.91 0.68 FIDSON 3.33 0.00% 2,593 3.33 3.35 3.18 0.00% 144,016 3.00 11.00% 349,142 1.80 3.35 21.09% 13.88 0.24

FLOURMILL 66.66 2.24% 860 66.69 69.50 64.71 -0.04% 4,055 70.61 -5.59% 93,096 58.10 83.64 -18.53% 20.15 3.38 FO 226.55 0.33% 1,901 230.00 238.00 205.00 -1.50% 19,624 228.90 -1.03% 65,977 35.00 259.94 143.94% 49.43 4.63

FORTISMFB 5.68 0.00% 0 5.68 5.68 5.68 0.00% 2 6.00 -5.33% 260,973 5.15 6.66 -9.41% 4.59 1.18GLAXOSMITH 64.80 2.99% 140 63.57 64.80 62.92 1.93% 3,359 65.85 -1.59% 11,068 58.50 74.97 -7.43% 22.01 3.00 GUARANTY 29.90 0.10% 226,594 28.52 30.98 28.06 4.84% 628,521 28.61 4.51% 2,160,889 22.67 31.80 7.75% 9.15 3.27 GUINNESS 181.99 -1.63% 1,345 189.90 189.90 181.99 -4.17% 4,728 190.10 -4.27% 36,744 162.00 266.70 -22.89% 23.48 7.88

HONYFLOUR 4.17 0.00% 10,051 4.15 4.18 4.05 0.48% 40,344 4.18 -0.24% 284,251 2.56 4.50 8.31% 12.27 0.34 INTBREW 28.00 0.00% 1,253 26.60 28.20 26.51 5.26% 17,882 26.10 7.28% 76,191 17.98 31.50 -1.13% 44.42 0.63 JBERGER 63.00 -1.62% 1,252 65.00 65.00 62.75 -3.08% 1,961 63.39 -0.62% 15,016 59.18 76.45 -0.12% 9.64 6.74

LINKASSURE 0.50 0.00% 0 0.50 0.50 0.50 0.00% 30 0.50 0.00% 306 0.50 0.50 0.00% 12.57 0.04MANSARD 2.50 -1.57% 3,005 2.48 2.61 2.48 0.81% 203,721 2.55 -1.96% 267,808 1.95 2.73 0.00% 16.35 0.15 MAYBAKER 1.43 4.38% 13,365 1.60 1.60 1.33 -10.63% 38,600 1.64 -12.80% 69,937 1.33 2.64 -43.92% 15.78 0.09

MOBIL 177.00 0.00% 223 175.75 177.00 174.00 0.71% 5,328 160.22 10.47% 38,763 102.00 182.00 52.59% 16.76 10.44 MRS 57.85 8.80% 1,047 58.49 58.90 53.17 -1.09% 6,893 58.90 -1.78% 24,246 32.53 70.00 11.85% 53.81 1.04

NAHCO 4.94 -0.20% 4,163 5.00 5.05 4.90 -1.20% 50,339 4.95 -0.20% 221,104 4.56 6.80 -22.20% 15.24 0.32 NASCON 9.80 0.00% 1,890 10.00 10.19 9.50 -2.00% 75,625 10.12 -3.16% 259,682 9.50 15.10 -34.01% 9.71 1.05

NB 178.00 1.72% 136,535 175.52 179.00 171.17 1.41% 165,652 185.00 -3.78% 408,969 140.00 189.00 7.87% 33.80 5.24 NEIMETH 1.09 -2.68% 1,264 1.20 1.23 1.04 -9.17% 17,400 1.18 -7.63% 62,728 0.79 2.08 -0.91%

NEM 0.81 -1.22% 79,927 0.81 0.82 0.80 0.00% 361,262 0.76 6.58% 1,111,523 0.55 0.97 0.00% 0.41 1.96 NESTLE 1,026.00 -0.39% 501 1,065.00 1,065.00 1,026.00 -3.66% 2,215 1,105.10 -7.16% 604,604 920.26 1,250.01 -13.20% 37.47 28.82

NIGERINS 0.50 0 0.50 0.50 0.50 0.00% 1,635 0.50 0.00% 27,488 0.50 0.54 0.00% 25.00 0.02NNFM 20.94 4.96% 23 21.00 21.00 19.95 -0.29% 7,899 18.77 11.56% 36,154 18.00 26.50 -4.86%OANDO 27.40 4.78% 93,238 26.45 27.45 25.01 3.59% 310,223 27.00 1.48% 1,029,405 9.32 36.89 2.51% 24.62 1.11

OKOMUOIL 34.08 -1.19% 2,210 34.85 34.85 33.51 -2.21% 18,298 33.76 0.95% 77,559 32.15 48.05 -23.98% 15.07 2.29 PAINTCOM 1.60 0.00% 0 1.60 1.68 1.55 0.00% 40,804 1.54 3.90% 49,429 1.33 2.30 -17.95% 4.57 0.35PORTPAINT 5.35 4.90% 8,400 5.01 5.35 5.00 6.79% 18,830 5.75 -6.96% 50,447 4.00 6.25 1.90% 8.77 0.60

PREMPAINTS 10.39 0 10.39 10.39 10.39 0.00% 0 10.39 0.00% 113 9.84 10.39 0.00% 0.00PRESCO 36.30 0.61% 2,930 36.21 36.33 36.04 0.25% 10,751 36.83 -1.44% 34,413 32.00 49.00 -6.92% 4.33 8.38

PRESTIGE 0.50 0.00% 16 0.50 0.50 0.50 0.00% 426 0.53 -5.66% 118,394 0.50 0.81 -20.63% 1.99 0.25PZ 33.25 -5.00% 2,129 35.14 36.00 33.25 -5.38% 14,322 38.00 -12.50% 73,408 30.08 42.29 -10.13% 26.12 1.34

ROYALEX 0.59 0.00% 0 0.59 0.64 0.57 0.00% 68,156 0.52 13.46% 202,891 0.50 0.69 9.26% 5.79 0.10RTBRISCOE 0.87 -2.25% 4,884 0.90 0.92 0.86 -3.33% 14,195 1.04 -16.35% 76,575 0.84 1.49 -38.30%

SEPLAT 690.00 2.07% 2,712 690.00 700.00 675.00 0.00% 3,568 643.00 7.31% 16,779 590.00 735.00 14.09% SKYEBANK 2.90 -1.69% 27,351 2.95 2.99 2.88 -1.69% 130,203 3.01 -3.65% 991,002 2.88 4.67 -35.70% 3.46 0.84 STANBIC 30.00 0.00% 7,879 29.44 30.00 29.25 1.90% 27,503 31.00 -3.23% 243,499 16.23 31.50 34.29% 15.61 1.92

STERLNBANK 2.26 -4.64% 12,782 2.28 2.45 2.20 -0.88% 725,663 2.30 -1.74% 1,383,857 2.09 2.74 -9.60% 3.59 0.63 TOTAL 180.00 -0.04% 2,537 182.05 182.05 180.00 -1.13% 4,701 172.00 4.65% 9,767 146.26 195.50 3.87% 13.94 12.91

TRANSCORP 6.10 1.67% 807,430 5.72 6.15 5.60 6.64% 1,800,326 5.51 10.71% 4,753,128 1.28 6.15 40.55% 69.52 0.09 UAC-PROP 15.16 0.00% 2,976 16.15 17.00 15.02 -6.13% 13,948 16.61 -8.73% 61,726 12.00 21.31 -1.40% 7.09 2.20

UACN 59.00 0.82% 9,174 58.87 59.90 57.05 0.22% 57,924 60.02 -1.70% 165,722 42.58 67.85 5.37% 27.54 2.14 UBA 7.44 0.00% 57,058 7.21 7.60 7.10 3.19% 242,522 7.49 -0.67% 2,100,074 6.65 9.60 -18.69% 4.47 1.70

UBCAP 2.24 0.90% 18,546 2.17 2.25 2.15 3.23% 108,691 2.08 7.69% 633,224 1.22 3.04 -1.32% 7.59 0.29 UBN 8.10 -1.22% 26,295 8.17 8.20 8.00 -0.86% 36,992 8.45 -4.14% 158,316 8.00 11.00 -15.71% 43.33 0.19

UNILEVER 48.10 -1.64% 50,190 48.99 49.00 48.01 -1.82% 65,709 49.25 -2.34% 119,591 42.50 64.00 -9.25% 35.43 1.37 UNITYBNK 0.50 0.00% 9,769 0.50 0.50 0.50 0.00% 459,871 0.50 0.00% 1,386,479 0.50 0.72 0.00% 4.65 0.11 VITAFOAM 4.15 0.00% 2,132 4.15 4.15 4.05 0.00% 11,837 4.33 -4.16% 55,153 3.66 5.70 -13.72% 5.84 0.71

WAPCO 117.01 -0.84% 1,875 119.00 120.00 117.01 -1.67% 25,965 120.00 -2.49% 122,004 87.50 136.73 1.75% 14.44 8.10 WAPIC 0.79 5.33% 39,362 0.76 0.80 0.74 3.95% 163,904 0.88 -10.23% 634,815 0.66 1.48 -30.09% 11.29 0.07

WEMABANK 0.95 1.06% 23,528 0.95 0.98 0.91 0.00% 139,944 1.01 -5.94% 366,681 0.89 1.40 -25.78% ZENITHBANK 24.60 -0.61% 110,146 24.51 24.90 24.10 0.37% 295,634 25.05 -1.80% 2,521,936 19.30 27.40 -1.60% 7.11 3.46

The performance of the All-Share Index ↓0.08% was tepid last week. The Banking index ↑2.2% led the march to positive territory followed be-hind by the Oil & Gas index ↑0.45%. The Industrial Index ↓1.51%, Lotus Islamic Index ↓1.39%, and the Consumer Goods Index ↓0.23%, declined by the close of trading on Friday. In total, 1,341,736,878 shares ↑30% were traded at a value of N16,085,782,687.46 ↑31% last week.At the head of the advancers were Premier Breweries ↑31.65%, Beta Glass Co. ↑10.17%, Transcorp ↑6.64%, 7-Up ↑5.69%, UBA ↑5.26%, A.G. Leventis ↑5.00%, Guaranty Trust Bank ↑4.80%, Portland Paints ↑4.79%, Red Star Express ↑4.35%, and International Energy Insurance ↑4.00%. The loss leaders were Vono Products ↓16.00%, Neimeth Int. Pharmaceuticals ↓13.33%, Cadbury ↓10.27%, May & Baker ↓10.13%, Dangote Flour ↓6.67%, Okomu Oil Palm ↓5.40%, Caverton Offshore Support ↓5.00%, Northern Nig. Flour Mills ↓5.00%, Conoil ↓4.97%, and Royal Exchange As-surance ↓4.92%.

Agriculture 0 3 2Conglomerates 0 3 2

Construction/Real Estate 0 8 1Consumer Goods 3 22 4

Financial Services 8 41 11Healthcare 0 8 2

ICT 0 11 0Industrial Goods 2 17 2

Natural Resources 0 5 0Oil & Gas 3 5 3Services 4 14 2

MARKET DATA VM3VM | Monday, September 1, 2014 | Issue 008

Declined Unchanged Advanced

vm_issue008.indd 3 02.09.2014 11:04:56

MARKET SNAPSHOT

3-MONTH PRICE TREND OF BELLWETHER STOCKS

LEGEND

ACCESS 9.9010.917.22

YtD 0.303.13%

-0.15-1.49%

0.262.70%3M 1W

PE 6.300.26

May June July August25/08

M T W T F

29/08

ASHAKACEM 33.5034.2013.87

YtD 11.6253.11%

11.0349.09%

-0.37-1.09%3M 1W

PE 41.880.37


M T W T F

29/08

CADBURY 57.55110.0057.55

YtD -39.63-40.78%

-20.25-26.03%

-5.82-9.18%3M 1W

PE 38.125.82


M T W T F

29/08

CAP 39.0251.6635.96

YtD -8.96-18.67%

1.524.05%

-0.03-0.08%3M 1W

PE 23.330.03


M T W T F

29/08

CCNN 14.3115.988.00

YtD 2.3219.35%

4.2241.82%

-0.30-2.05%3M 1W

PE 12.770.30


M T W T F

29/08

CONTINSURE 1.001.330.93

YtD -0.20-16.67%

-0.05-4.76%

0.022.04%3M 1W

PE 6.250.02


M T W T F

29/08

FCMB 4.254.593.01

YtD 0.4110.68%

-0.05-1.16%

-0.05-1.16%3M 1W

PE 4.830.05


M T W T F

29/08

GUARANTY 29.9031.8022.67

YtD 2.157.75%

-0.02-0.07%

1.384.84%3M 1W

PE 9.151.38


M T W T F

29/08

MANSARD 2.502.731.95

YtD 0.000.00%

0.062.46%

0.020.81%3M 1W

PE 16.350.02


M T W T F

29/08

OANDO 27.4036.899.32

YtD 0.672.51%

9.1349.97%

0.953.59%3M 1W

PE 24.620.95


M T W T F

29/08

STANBIC 30.0031.5016.23

YtD 7.6634.29%

6.0625.31%

0.561.90%3M 1W

PE 15.610.56


M T W T F

29/08

UBA 7.449.606.65

YtD -1.71-18.69%

-0.26-3.38%

0.233.19%3M 1W

PE 4.470.23


M T W T F

29/08

DANGCEM 225.00250.02185.00

YtD 8.844.09%

-9.00-3.85%

-4.97-2.16%3M 1W

PE 19.084.97


M T W T F

29/08

FIDELITYBK 1.982.951.85

YtD -0.72-26.67%

-0.12-5.71%

0.010.51%3M 1W

PE 2.910.01


M T W T F

29/08

GUINNESS 181.99266.70162.00

YtD -54.02-22.89%

2.001.11%

-7.91-4.17%3M 1W

PE 23.487.91


M T W T F

29/08

MOBIL 177.00182.00102.00

YtD 61.0052.59%

52.0041.60%

1.250.71%3M 1W

PE 16.761.25


M T W T F

29/08

OKOMUOIL 34.0848.0532.15

YtD -10.75-23.98%

0.892.68%

-0.77-2.21%3M 1W

PE 15.070.77


M T W T F

29/08

TOTAL 180.00195.50146.26

YtD 6.703.87%

13.958.40%

-2.05-1.13%3M 1W

PE 13.942.05


M T W T F

29/08

UNILEVER 48.1064.0042.50

YtD -4.90-9.25%

-0.91-1.86%

-0.89-1.82%3M 1W

PE 35.430.89


M T W T F

29/08

DIAMONDBNK 6.108.205.86

YtD -1.40-18.67%

-0.60-8.96%

-0.10-1.61%3M 1W

PE 3.690.10


M T W T F

29/08

FLOURMILL 66.6683.6458.10

YtD -15.16-18.53%

-3.02-4.34%

-0.03-0.04%3M 1W

PE 20.150.03


M T W T F

29/08

HONYFLOUR 4.174.502.56

YtD 0.328.31%

0.174.25%

0.020.48%3M 1W

PE 12.270.02


M T W T F

29/08

NASCON 9.8015.109.50

YtD -5.05-34.01%

-3.18-24.50%

-0.20-2.00%3M 1W

PE 9.710.20


M T W T F

29/08

PRESCO 36.3049.0032.00

YtD -2.70-6.92%

-0.20-0.55%

0.090.25%3M 1W

PE 4.330.09


M T W T F

29/08

UACN 59.0067.8542.58

YtD 3.015.37%

-3.77-6.01%

0.130.22%3M 1W

PE 27.540.13


M T W T F

29/08

WAPCO 117.01136.7387.50

YtD 2.011.75%

4.514.01%

-1.99-1.67%3M 1W

PE 14.441.99


M T W T F

29/08

ETI 16.9018.6012.40

YtD 0.513.11%

0.100.60%

0.402.42%3M 1W

PE 4.610.40


M T W T F

29/08

FO 226.55259.9435.00

YtD 133.68143.94%

12.675.92%

-3.45-1.50%3M 1W

PE 49.433.45


M T W T F

29/08

INTBREW 28.0031.5017.98

YtD -0.32-1.13%

2.007.69%

1.405.26%3M 1W

PE 44.431.40


M T W T F

29/08

NB 178.00189.00140.00

YtD 12.997.87%

1.911.08%

2.481.41%3M 1W

PE 33.802.48


M T W T F

29/08

PZ 33.2542.2930.08

YtD -3.75-10.13%

-3.10-8.53%

-1.89-5.38%3M 1W

PE 26.121.89


M T W T F

29/08

UAC-PROP 15.1621.3112.00

YtD -0.22-1.40%

-2.84-15.78%

-0.99-6.13%3M 1W

PE 7.090.99


M T W T F

29/08

ZENITHBANK 24.6027.4019.30

YtD -0.40-1.60%

-0.80-3.15%

0.090.37%3M 1W

PE 7.110.09


M T W T F

29/08

TICKER 25.2327.4019.23

1YtD 0.230.92%

2.9012.99%

0.010.04%3M 1W

PE 7.290.01

May June July21/07

M T W T F

25/07

FBNH 15.1917.2911.50

YtD -1.11??-6.81%

??

-0.11-0.72%

0.583.97%3M 1W

PE 6.970.58


M T W T F

29/08

GLAXOSMITH 64.8074.9758.50

YtD -5.20-7.43%

-3.40-4.99%

1.231.93%3M 1W

PE 22.011.23


M T W T F

29/08

JBERGER 63.0076.4559.18

YtD -0.07-0.12%

-7.00-10.00%

-2.00-3.08%3M 1W

PE 9.642.00


M T W T F

29/08

NESTLE 1026.001250.01920.26

YtD -156.00-13.20%

-46.00-4.29%

-39.00-3.66%3M 1W

PE 37.4739.00


M T W T F

29/08

SEPLAT 690.00735.00590.00

YtD 85.2014.09%

24.003.60%

0.000.00%

3M 1W

PE --0.00


M T W T F

29/08

3 4 5

9

13

10 11

12

6

8

14

7

21

1. 52-week low price2. Year low price3. Current price4. Year high price5. 52-week high price6. Current price7. 5-day price change8. PE ratio9. 1-year price change10. 3-months price change11. 1-week price change12. Daily price movement over 3 months.13. 30-day moving average14. Daily price movement over last week

! Page 7

MARKET DATAVM4 VM | Monday, September 1, 2014 | Issue 008

vm_issue008.indd 4 02.09.2014 11:05:08

MARKET DATA VM5VM | Monday, September 1, 2014 | Issue 008

MARKET SNAPSHOT

# TICKER WTD YTD

1 DANGCEM -2.16 4.09

2 NB 1.41 7.87

3 GUARANTY 4.84 7.75

4 NESTLE -3.66 -13.20

5 ZENITHBANK 0.37 -1.60

6 FBNH 3.97 -6.81

7 WAPCO -1.67 1.75

8 STANBIC 1.90 34.29

9 GUINNESS -4.17 -22.89

10 ETI 2.42 3.11

11 UBA 3.19 -18.69

12 FO -1.50 143.94

13 OANDO 3.59 2.51

14 TRANSCORP 6.64 40.55

15 ACCESS 2.70 3.13

16 UNILEVER -1.82 -9.25

17 FLOURMILL -0.04 -18.53

18 UBN -0.86 -15.71

19 PZ -5.38 -10.13

20 UACN 0.22 5.37

21 CADBURY -9.18 -40.78

22 DANGSUGAR 0.46 -22.65

23 INTBREW 5.26 -1.13

24 7UP 8.40 95.03

25 DIAMONDBNK -1.61 -18.67

26 FCMB -1.16 10.68

27 JBERGER -3.08 -0.12

28 ASHAKACEM -1.09 53.11

29 MOBIL 0.71 52.59

30 GLAXOSMITH 1.93 -7.43

31 TOTAL -1.13 3.87

32 FIDELITYBK 0.51 -26.67

33 STERLNBANK -0.88 -9.60

34 CONOIL -5.03 6.02

35 SKYEBANK -1.69 -35.70

36 PRESCO 0.25 -6.92

37 OKOMUOIL -2.21 -23.98

38 CAP -0.08 -18.67

39 NEIMETH -9.17 -0.91

40 MAYBAKER -10.63 -43.92

WEEK-TO-DATE RETURN-15%

-50%

-20%

-30%

-40%

-10%

0%

+10%

+20%

+30%

+40%

+50%

+60%

+70%

+80%

+100%

+90%

+120%

+130%

+140%

+110%

+150%

0%-10% -5% 5% 10%

YEA

R-TO

-DAT

E RE

TURN

LAGGING

SLIPPING LEADING

IMPROVING

2 3

4

56

8

9

10

11

12

13

14

15

16

171819

20

21

22

2331

32

33

34

35

36

3738

39

40

24

25

26

27

28 29

30

17

Bubble size = Market Cap

TRADING BREAKDOWN BY SECTOR

Sector %

Financial Services 65 \ 77

Conglomerates 14 \ 8

Consumer Goods 6 \ 5

Others 16 \ 10

25/08 29/0827/0813.2

13.5

13.8

14.1

14.4

2990

2995

3000

3005

3010

FGN Bond Index Market Value YTD Return

INDEX PERFORMANCE

Index Week Opening

Week Close Change WtD MtD QtD YtD

1 All Shares Index 41,564.19 41,532.31 -31.88 -0.08 -1.34 -2.24 0.49

2 NSE 30 Index 1,885.26 1,890.50 5.24 0.28 -1.61 -2.14 -0.87

3 NSE Banking Index 419.45 428.67 9.22 2.2 -1.1 -0.97 -4.28

4 NSE Insurance Index 144.18 144.56 0.38 0.26 -2.18 -1.55 -5.44

5 NSE Consumer Goods Index 1,030.20 1,027.86 -2.34 -0.23 -2.85 -2.87 -6.58

6 NSE Oil/Gas Index 478.34 480.48 2.14 0.45 2.27 2.61 41.37

7 NSE Lotus Islamic Index 2,764.01 2,725.59 -38.42 -1.39 -2.62 -5.19 -4.8

8 NSE Industrial Index 2,720.52 2,679.33 -41.19 -1.51 -1.25 0.47 5.21

MARKET SNAPSHOT

Date Deals Turnover Volume Turnover Value Traded Stocks Advanced

StocksDeclined Stocks

Unchanged Stocks

All Shares Index Value

1 25.08.2014 3,958 156,692,619 1,491,537,874.39 130 \ 114 21 \ 21 24 \ 27 85 \ 66 41,339.48

2 26.08.2014 4,524 178,411,748 2,027,633,954.05 114 \ 121 19 \ 22 33 \ 29 62 \ 70 41,235.25

3 27.08.2014 4,795 387,602,388 3,936,891,416.01 110 \ 112 16 \ 17 27 \ 25 67 \ 70 41,121.12

4 28.08.2014 4,617 263,106,346 2,497,065,948.07 118 \ 109 31 \ 26 20 \ 26 67 \ 57 41,359.87

5 29.08.2014 4,587 355,923,777 6,132,653,494.94 106 \ 116 29 \ 24 19 \ 27 58 \ 65 41,532.31

The \ arrow signifies week-on-week change in value. This week’s value is shown on the left of the \ sign, and last week’s value on the right.

GLOBAL INTEREST RATES & INFLATION TARGETSCentral Bank Rate Last Date

Change%

Change Inflation

TargetChina 6.00% 05.07.2012 -0.31 4.00%Japan 0-0.10% 05.10.2010 -0.20 2.00%

UK 0.50% 05.03.2009 -0.50 2.00%USA 0-0.25% 16.12.2008 -0.75 2.00%

Eurozone 0.15% 05.06.2014 -0.10 <2.00%Brazil 11.00% 02.04.201 +0.25 4.5% +/-2.0%Canada 1.00% 20.07.2010 +0.25 2.0% +/-1.0%Egypt 8.25% 05.12.2013 -0.50

India 8.00% 28.01.2014 +0.25Indonesia 7.50% 12.11.2013 +0.25 4.5% +/-1.0%Malaysia 3.25% 10.06.2014 +0.25Mexico 3.00% 06.06.2014 -0.50 3.00% +/-1.0%Morocco 3.00% 28.03.2012 -0.25Nigeria 12.00% 10.10.2011 +2.75 6.00% - 9.00%Qatar 4.50% 10.08.2011 -0.50Russia 8.00% 28.07.2014 +0.50 5%*

Thailand 2.00% 12.03.2014 -0.25 0.5% - 3.0%Turkey 8.75% 24.06.2014 -0.75 5.00%

* +/- 1.5 pct point uncertainty band

Indices

ASI

NSE30

NSEBNK

NSEINS

NSECNSMRGDS

NSEOILGAS

NSELOTUSISLM

NSEINDUSTR

-0.08%0.42%

0.28%0.50%

2.20%0.29%

0.26%-0.02%

-0.23%0.41%

0.45%2.05%

-1.39%-0.09%

-1.51%-0.23%

0.49%

YtD, % WtD, % DtD, %

-0.87%

-4.28%

-5.44%

-6.58%

41.37%

-4.8%

5.21%

-7% -4% -2% 0% 6%4%2%

MoFr50,90

51,12

51,56

51,34

51,7850,959.02

Tu We Th Fr

JSE FTSE

FrTh6,775

6,790

6,820

6,805

6,8356,819.75

Tu We Th Fr

FTSE 100

MoFr41,00

41,15

41,45

41,30

41,6041,532.31

Tu We Th Fr

NSEASI

MoFr1,985

1,990

2,000

1,995

2,0052,003.36

Tu We Th Fr

S&P 500

vm_issue008.indd 5 02.09.2014 11:05:09

ART AS AN ALTERNATIVE INVESTMENT

EDITOR: MIDENO BAYAGBON

GROUP BUSINESS EDITOR: OMOH GABRIEL

CONTENT DIRECTION: OBIORA TABANSI ONYEASO

DESIGN & ILLUSTRATION: PUBLICAN MEDIA

Vanguard Markets features unbiased, in-depth coverage of corporate and market developments across a wide range of business sectors.Every week, Vanguard Markets delivers essential business analysis and commentary on Nigerian companies, regional economies, and global markets. Vanguard Markets is published by Vanguard Media Limited in associa-tion with Customs Street Advisors Limited, a specialist communications consultancy.

Vanguard Media Limited, Vanguard Avenue, Kirikiri Canal, P.M.B.1007, Apapa.

Website: www.vanguardngr.com

ISSN 0794-652X

Published by

In Association With

ARENAVM6 VM | Monday, September 1, 2014 | Issue 008

OW DOES ANY-one tie up a career that begins with en-

gineering, whizzes past ac-counting, makes a detour in investment banking, taxis to a stop in international fi-nance, zooms off again in private equity, and finally hovers above deal-making at the highest level? Well, ask Andrew Alli, the pioneer chief executive of Africa Finance Corporation. He has made more career changes that de-

mand completely new skill sets than most people have changed office desks work-ing in a single company. This is not to say that he is hasty in accepting new challenges. The soft-spoken financial diplomat who picks his words carefully may have found his calling at his current perch.

AFC is a multilateral or-ganization established by treaty in 2007 to catalyse investment in infrastructure and heavy industries across the continent. Unlike similar past initiatives, its founders decided on a private sector mindset to portfolio selec-tion. Alli says as much: ‘no matter how much of a posi-tive impact a commercial operation may provide, if it goes out of business in a few years’ time, then its de-velopmental impact is actu-ally zero, or could even be negative.’ This philosophical long-term approach to devel-opment financing was prob-ably sown when he moved

to school in England in 1983 due to political upheaval in Nigeria. He said that the teaching method at Friends’ School in Saffron Walden, where he attended, struck him for the teachers’ encour-agement of question-and-dialogue as opposed to rote learning and unquestioned instruction back home.

One thread that runs through his entire career is a determination to deliver so-cial benefits in a way that is profitable for sponsors, and sustainable for communities. His late father, the revered Ambrose Alli, served as gov-ernor of the old Bendel State during the Second Repub-lic. During his administra-

tion, he established over one thousand secondary schools, four teacher training col-leges, the present Delta State University in Abraka, three polytechnics, and, of course, the posthumously named Ambrose Alli University, Ni-geria’s first non-federal uni-versity.

A 1995 engineering gradu-ate of Kings College, London, Alli also holds an MBA from INSEAD, Fontainebleau in France. Early in his career he had stints at Coopers & Lybrand, an accounting firm, and SG Warburg, an invest-ment bank. Of his time at business school he once con-fessed that though he has grown rusty in his ability to

‘calculate the price of an op-tion off the top of my head as I could have done at the end of my MBA, but rather like learning to read, the MBA provided me with a skill set and experience that contin-ues to serve, and I imagine will do so for the rest of my life.’ After a successful career at the International Finance Corporation, he went on to found Travant Capital, a PE firm, with his friend, the late wunderkind Osazee Osifo. AFC was his next call.

Alli is perennially on the lookout for projects with bankable prospects. He be-moans the paucity of bank-able projects on the conti-nent. In his words, AFC’s mandate is to help project sponsors to fill the gaps in expertise, experience, and capital that they lack till it attains a level of bankability that would attract later-stage backers. So far, it has under-taken over $1.2 billion in in-vestments across Africa. Two

notable financings include Main One fibre optic cable, which increased cable capac-ity by a factor of 10 for faster, wider, cheaper internet ac-cess in West Africa, and co-arranging debt financing for the acquisition of the Ughelli Power Plant last year.

With an enviable rolodex that spans Cairo to Cape Town from his days at IFC it is hard to think that much of value would escape him. But the old accountant in him is ever cautious. Hear him: ‘Operating in emerging mar-kets you face different types of risk. Being able to identify those risks and structure an investment in a way that can handle them is important. There is no secret to doing that, unfortunately. It just involves a lot of hard work to understand the business and the environment that busi-ness is operating in and then to piece out the different risk factors and how you can deal with them.’ ;

SPOTLIGHT

Andrew Alli, CEO, Africa Finance Corporation

H

N CONTINUATION of our analyses of well-recognized Ni-

gerian and African artists, this week, we will examine the life of widely acknowl-edged South African painter, Irma Stern. We will also re-view her impressive auction results from international auction house, Bonhams.

Irma Stern is unarguably a pivotal figure in narratives of modern art in Africa. She was born in 1894 in Sch-weizer-Reneke, Transvaal, in South Africa. She studied in Weimar and Berlin, Germa-

ny winning several awards in her long and illustrious career including the Prix d’Honneur at the Bordeaux International exhibition (1927), the Peggy Guggen-heim international art prize (1960), and the Oppenhe-imer award on Art in South Africa in 1963. She was also awarded a medal of honour for her paintings by the Suid-Afrikanse Akademie vir Wetenskap en Kuns (1965).

Stern’s oeuvre embraces several themes from exotic

figures, to portraits, lush landscapes and still lifes conveyed in different media, ranging from oils and wa-ter colours to gouache and charcoal. She died in 1966, and a posthumous exhibi-tion was held in her honor at the Grosvenor Gallery in London in 1967. Art histori-an, Hayden Proud observes, ‘Many of Stern’s paintings of people from other cultures are concerned primarily with the culture rather than the individual. The essence of

the person studied becomes a generalization for the so-ciety because, although the painting is created from con-tact with particular models, Stern interprets according to a mental construct about the culture of origin. Thus many of her portraits are ambivalent, presenting both stereotypical and individual characteristics.’

One of her paintings, The Malay Bride, sold for £1.2 million (N312.2 million in-cluding premium) at Bon-hams The South African Sale in October 2013. This is a fine example of Stern’s output from the 1940s and is consid-ered one of her most accom-plished paintings. Typical of her work created during this period, the subjects are im-bued with a refined serenity and appear isolated. The art-ist’s fascination with Islam and the splendor of Muslim women in their finery and adornment developed from her exposure to the Cape Malay culture. This enchant-ment grew with her two trips to Zanzibar in 1945.

Irma Stern is still consid-ered by many to be South Africa’s foremost artist and

her works continue to fetch record prices at international auctions.

Her top 5 sales at Bonhams auctions of South African art are listed in the table. ;

Artist Dossier: Irma Stern

Oliver Enwonwuis the director of leading Lagos gallery, Omenka and president of the Society of Nigerian [email protected]

I

‘Bahora girl’ signed and dated ‘Irma Stern/1945’ (upper left) oil on canvas 87 x 71cm (34 1/4 x 27 15/16in)

TOP 5 SALES AT BONHAMS AUCTIONS OF SOUTH AFRICAN ART

Work Details Date Sold Amount

1 Arab Priest, 1945 Oil on canvas 97 x 86cm

Mar 23, 2011 The South African Sale

Sold for £3.04 million incl. premium (N764.01 million)

2 Bahora Girl, 1945 Oil on canvas 87 x 71cm

Oct 27, 2010 The South African Sale


3 Seated Nude with Oranges, 1934 Oil on composition board 88 x 83cm

Mar 23, 2011 The South African Sale London


4 The Malay Bride, 194[2] Oil on canvas 69 x 51cm

Oct 2, 2013 The South African Sale


5 Watussi Woman, 1942 Oil on canvas 85.5 x 85.5cm

Oct 26, 2011 The South African Sale: Part II


Andrew Alli

One thread that runs through his entire career is a determination to deliver social benefits in a way that is profitable for sponsors, and sustainable for communities.

vm_issue008.indd 6 02.09.2014 11:05:11

Vanguard Markets, September 1, 2014 edition

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