Category: Capital Market

•Lists conditions for bonus shares

MTN Nigeria Communications Plc is concluding arrangements to allot free shares to shareholders who bought into the company during its December 2021 public offer for sale.

In a regulatory filing at the weekend, MTN Nigeria stated that it was concluding arrangements to allot incentive shares to shareholders who bought into its public offer and held on to at least 20 ordinary shares between January 31, 2022 and January 31, 2023. 

MTN Nigeria had included an innovative incentive structure of one free share for every 20 purchased, subject to a maximum of 250 free shares per investor in its December 2021 public offer for sale. Thus, an additional 4.28 million shares will be allotted to qualifying investors who hold the shares allotted to them for 12 months till 31 January 2023.

The company stated that all qualified shareholders on the register of the company as at January 31, 2023 will have their incentive shares credited to their Central Securities and Clearing System (CSCS)’s accounts, after the requisite regulatory approval.

To benefit from the incentive shares, a subscriber must have held at least 20 shares for the 12-month period and must be on the register of the company as at January 31, 2023.

MTN Nigeria’s N97.18 billion public offer had recorded a subscription of N135.53 billion, representing an oversubscription of 39.5 per cent.

MTN Nigeria had offered 575 million ordinary shares of 50 kobo each to the general retail investing public at a price of N169 per share. Application list for the offer had opened on December 1, 2021 and it closed by 5.00 pm on December 14, 2021, as scheduled.

Allotment details provided by MTN Nigeria indicated that additional 86.25 million shares were added to absorb oversubscription, in line with the provisions of the offer which allowed the issuer to absorb additional 15 per cent of subscriptions.

A breakdown showed that retail shareholders received full allotment despite the oversubscription while institutional shareholders under the book building phase were pro-rated as a result of the oversubscription.

In a major boost for financial inclusion and gender equity, a total of 114,938 new accounts  from new market participants were created at the stock market while approximately 76 per cent of successful applicants through the digital platform were women, with 85 per cent of these under 40.

Valid applications were received for 801.97 million shares, leading to the activation of the approved 15 per cent oversubscription clause of an additional 86.25 million of MTN Nigeria shares. In all, 661.25 million shares were allotted.

A total of 126,720 retail investors submitted valid applications and received full allotment; and institutional investors, including pension funds, insurance companies, asset managers, corporates, and foreign portfolio investors that participated in the bookbuild were allotted 72.09 perent of their applications. These include pension funds representing  6.5 million Nigerian contributors.

With the completion of the offer, MTN Group’s shareholding in MTN Nigeria reduced by 3.25 percentage points, from 78.83 per cent  to 75.58 per cent.

The MTN Nigeria’s public offer had set record as the first to be delivered through a digital platform, thus facilitating maximum participation by investors. Investors were able to submit applications through the issuing houses, stockbrokers, banks and online through a unique digital application platform, PrimaryOffer, administered by the NGX.

MTN Nigeria indicated that more than 89 per cent of retail offer subscribers applied through the PrimaryOffer platform through mobile and web.

Chief Executive Officer, MTN Group, Ralph Mupita said the group was pleased that the offer gave so many Nigerians the opportunity to become owners of MTN Nigeria.

“With over 6.6 million Nigerians directly or indirectly becoming shareholders in MTN Nigeria, the objective of broadening the shareholder base, and creating shared value has been achieved. We are proud that our offer was the first Nigerian public offer to use the digital application platform, PrimaryOffer, which enabled wider investor participation across Nigeria.

“We thank the Nigerian authorities for their support of this offer. We remain committed to playing our humble role in driving digital and financial inclusion in Nigeria over the medium,” Mupita said.

Chief Executive Officer,  MTN Communications Nigeria Plc, Karl Toriola, said it was a delight to welcome so many new shareholders to the MTN family, which is now up 11.6 times from the number before the offer.

“It has been inspiring to see so many Nigerians, many of whom are young, acquire shares for the first time, and use a digital platform to do so. This is the beginning of a journey to broaden our shareholding and there will be more opportunities to participate.

“We are pleased with the level of digital innovation we championed with this offer with the active collaboration of our lead issuing house and the various regulatory bodies. Deepening retail participation in Nigeria’s capital markets is a process, and we are off to a great start, demonstrating the role digital platforms can play in expanding access. I am particularly pleased that we completed this transaction in an accelerated time frame ensuring new shareholders can realize value almost immediately through participation in our 2021 full-year dividend,” Toriola said.

•Equities resilient amid profit-taking

Insurance stocks dominated transactions at the stock market as investors sought to take advantage of the sector’s low share prices amid expectations that recent premium increase would lead to improved performance in the sector.

Insurance stocks were the most active and fastest rising at the equities market, contributing the largest turnover and topping the sectoral indices with above-average gain.

Against the average gain of 0.16 per cent recorded by the overall market, the NGX Insurance Index- a value-based index that tracks the insurance sector at the Nigerian Exchange (NGX) rose by 1.78 per cent, the highest gain by any sector at the NGX.  

The National Insurance Commission (NAICOM) had in December 2022 announced increases in  approved premium rates for third party motor insurance, with some analysts estimating that the sector could realise more than N30 billion in third party motor insurance alone.   

Trading data at the weekend indicated that most sectoral indices closed negative with the exception of the insurance and oil and gas sectors. The gains recorded by insurance, oil and gas stocks and some non-financial services were mainly responsible for the positive overall market position in a week that saw the influential banking sector dropping by 2.60 per cent.

Insurance sector recorded a turnover of 421.67 million shares valued at N115.43 million in 985 deals, about 34 per cent of total turnover recorded during the week. Veritas Kapital Assurance was the overall most active stock with a turnover of 349.57 million shares worth N69.91 million in 32 deals.

International Energy Insurance recorded the highest gain at the market last week, rising by 28.95 per cent to close at 49 kobo per share. SUNU Assurances Nigeria recorded the fourth highest gain of 12.12 per cent to close at 37 kobo. Cornerstone Insurance placed ninth on the top 10 gainers’ list with a gain of 9.09 per cent to close at 60 kobo per share.

Nigerian equities remained resilient with most share price changes on the upside, in spite of increased tendency for investors to take profits on recent accumulated gains.

The benchmark index for the Nigeria equities market, the All Share Index (ASI) of the NGX, closed weekend at 52,594.68 points as against its week’s opening index of 52,512.48 points, representing average return of 0.16 per cent for the week. The modest gain nudged the average year-to-date return to 2.62 per cent.

Aggregate market value of all quoted equities at the NGX rose from the week’s opening index of N28.602 trillion to close weekend at N28.647 trillion, an increase of N45 billion or 0.16 per cent.

Most sectoral indices closed negative with the NGX Banking Index dropping by 2.60 per cent. The NGX Industrial Goods Index declined by 1.06 per cent. The NGX Consumer Goods Index dropped by 0.40 per cent while the NGX Pension Index- which tracks stocks that meet pension funds’ investment guidelines, depreciated by 0.64 per cent. Meanwhile, the NGX 30 Index, which tracks the 30 largest stocks at the Exchange, rose by 0.18 per cent. The NGX Oil and Gas Index returned average gain of 0.35 per cent while the NGX Lotus Islamic Index, which tracks ethical stocks that meet Islamic finance rules, appreciated by 0.10 per cent.

Total turnover at the NGX stood at 1.241 billion shares worth N15.668 billion in 18,560 deals last week as against 1.286 billion shares valued at N29.634 billion traded in 19,816 deals two weeks ago.

The financial services sector led the activity chart with 1.010 billion shares valued at N5.924 billion traded in 9,165 deals; thus contributing 81.37 per cent and 37.81 per cent to the total equity turnover volume and value respectively. The conglomerates sector followed with 46.761 million shares worth N112.918 million in 641 deals while the consumer goods sector placed third with a turnover of 42.121 million shares worth N2.134 billion in 2,886 deals.

The three most active stocks-Veritas Kapital Assurance Plc, Sterling Bank Plc, and Guaranty Trust Holding Company Plc accounted for 605.879 million shares worth N2.120 billion in 1,631 deals, contributing 48.82 per cent and 13.53 per cent to the total equity turnover volume and value respectively.  

Also, a total of 2,063 units of Exchange Traded Products (ETPs) valued at N1.505 million were traded in 59 deals compared with a total of 7,591 units valued at N1.726 million traded in 58 deals penultimate week.

At the secondary debt market, a total of 21,845 bond units valued at N21.565 million were traded in 14 deals compared with a total of 51,785 bond units valued at N51.60 million swapped in 16 deals two weeks ago.

There were 39 gainers against 30 losers last week compared with 51 gainers and 27 losers recorded in the previous week. Other top gainers included MRS Oil Nigeria, which rose by 13.48 per cent to close at N16. Nigerian Aviation Handling Company rose by 12.86 per cent to close at N7.90. Abbey Mortgage Bank appreciated by 9.80 per cent to close at N1.68 while Presco rose by 9.67 per cent to close at N150.80 per share.

On the negative side, Livestock Feeds led the losers with a drop of 13.85 per cent to close at N1.12. C & I Leasing dropped by 10 per cent to close at N3.15. UACN Property Development Company lost 9.62 per cent to close at 94 kobo. Sovereign Trust Insurance dipped by 7.14 per cent to close at 26 kobo. International Breweries lost 7.0 per cent to close at N4.65 while Geregu Power dropped by 6.85 per cent to close at N138.80 per share.

Most analysts expected the market outlook to be impacted in the meantime by the outcome of the meeting of the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) this week.

“If the MPC increases and there is a pass-through impact on yields in the fixed-income market, there could be realignment of investments between markets that would pressure the performance of the equities market. As a result, we envisage a cautious trading from domestic investors over the next week, and the short-term. Overall, we reiterate the need for positioning in only fundamentally sound stocks as the unimpressive macro environment remains a significant headwind for corporate earnings,” Cordros Securities stated at the weekend.’’

NAICOM had last month approved a new premium rate for third party motor insurance policy to N15,000 from N5,000.  Consequently, private vehicle owners are now covered to the tune of N3 million for Third Party Property Damage (TPPD). TPPD means Third Party Property Damage. It is the limit of claims an insured can enjoy on the policy. This means that the third party’s vehicle would be repaired to the tune of N3 million instead of N1 million.

In the same vein, the premium for staff bus has risen by to N20,000 with a TPPD of N3 million; N5 million limit for own goods, with premium of N20,000. Commercial vehicles, trucks/general cartage has TPPD limit of N5 million with a premium cost of N100,000; Special types, TPPD limit of N3 million with premium of N20,000; Tricycle, TPPD limit N2 million with premium N5000; and Motorcycle, TPPD limit N1 million with premium of N3000. Third Party Motor Insurance is one of the compulsory insurance policies in Nigeria that any motor vehicle owner plying the Nigerian road is required to have.

Nigerian equities will continue on the upswing and deliver their fourth consecutive positive return this year, breaking its own records of anxious pre and post-elections cycles.

Former president of Chartered Institute of Stockbrokers (CIS), Mr Olatunde Amolegbe, said the stock market was poised for another positive return in 2023, after Nigerian equities netted net capital gain of N4.45 trillion in 2022, one of the highest returns globally.

Amolegbe, who is the Managing Director, Arthur Steven Asset Management, said most indicators and trends point towards another positive return for the Nigerian stock market.

The benchmark index for the Nigerian stock market closed 2022 with full-year average return of 19.98 per cent, equivalent to net capital gain of N4.455 trillion. This was the third consecutive year of a significant bullish run. Nigerian equities had closed 2021 with average return of 6.07 per cent, equivalent to net capital gains of N1.278 trillion. In the throes of the outbreak of COVID-19 pandemic in 2020, Nigerian equities had recorded average return of 50.03 per cent, representing net capital gains of N6.483 trillion.

Amolegbe, a Fellow of the CIS, noted that given the equities market’s deviation from the election cycle norm of a negative close in pre-election and election years, as observed in the previous two election cycles, the Nigerian equities market remains on the upbeat to deliver a positive return in 2023.

He, however, said yields could fall in the fixed-income market given less preference for fixed income instruments by investors, although there could be some yield spikes as the Central Bank of Nigeria (CBN) goes on the offensive against rooftop inflation.

He described the year as one filled with brand new opportunities for growth and financial progress, pointing out that next month’s general election that is expected to usher in a new government would play a significant role in determining the direction of the economy, among other macroeconomic factors.

“It is our hope that a smooth and safe transition should herald stability for the economy,” Amolegbe said.

According to him, there was no doubt that 2022 was a turbulent year for the global economy as well as the financial markets with the Ukraine-Russia war coupled with inflation and global supply chain issues dominating the minds of policy makers.

He assured the public that while teh year appears with its own uncertainties, Arthur Steven will continue to provide professional advisory services and partnership that help investors to navigate the risks and maximise their returns.

“We, at Arthur Steven Asset Management Limited, had used the previous year to strengthen our research, operational and service delivery capacity to serve our discerning stakeholders better and to help in meeting your financial objectives.

“We have launched an improved version of our award winning trading platform ASAM E-Trade which now includes other asset classes such as bonds, treasury bills and commodities aside equities as well as a more robust analytical capacity.

“We have also improved our corporate finance capacity to meet the increased demand of lenders and capital users alike. We have prepared ourselves to deliver best in-class services to you our esteemed clients and it is our hope that you will take advantage of these premium services,” Amolegbe said.

With the global stock market at its worst performance in more than a decade, Nigerian equities rode on the back of a strong year-end rally in 2022 to consolidate their position in world’s top 10 best performing stocks.

The All Share Index (ASI)- the common value-based index that tracks all share prices at the NGX closed 2022 at 51,251.06 points as against its 2022’s opening index of 42,716.44  points, representing average return of 19.98 per cent.

The performance of the market bucked the largely negative global trend with major advanced and emerging world markets closing at their poorest levels in recent years. The MSCI All-Country World Index posted a negative return of -20 per cent in 2022, mirroring double-digit losses in America, Europe and Asia. In United States, the S & P 500 Index and NASDAQ recorded average returns of -19.44 per cent and -33.10 per cent respectively. The Dow Jones Industrial Average dropped by 8.78 per cent, underlining the complete bearish rout at the American market.

STOXX 50- which tracks the broad European markets, returned -11.74 per cent. United Kingdom’s FTSE 100 recorded modest gain of 0.91 per cent. Germany’s DAX dropped by 12.35 per cent, France’s CAC 40 Index lost 9.50 per cent while Japan’s NIKKEI declined by 9.37 per cent.    

Aggregate market value of all quoted equities at the NGX rose from the 2022’s opening value of N22.297 trillion to close the year at N27.915 trillion, representing an increase of 25.2 per cent or N5.62 trillion.  The difference between the ASI and aggregate market value growth rate was due mainly to new primary listings during the year including large-cap listings by BUA Foods Plc and Geregu Power Plc.

Sectoral analysis showed that the Nigerian market performance was driven by widespread positive sentiments across the sectors, especially within the large and mid-cap stocks in the oil and gas, industrial goods, banking and telecommunication sectors. The NGX Oil and Gas Index led with above-average return of 34.05 per cent. The NGX Industrial Goods Index followed with average gain of 19.67 per cent. The NGX Banking Index posted a modest return of 2.81 per cent.

The NGX 30 Index-which tracks the 30 largest stocks at the exchange, returned 6.98 per cent. The NGX Pension Index- which serves as gauge for stocks that meet the more stringent investment guidelines for pension funds, rallied average gain of 10.37 per cent while the NGX Lotus Islamic Index- which tracks stocks that comply with Islamic finance rules, closed with average return of 7.69 per cent. However, the NGX Insurance Index and NGX Consumer Goods Index dropped by 11.99 per cent and 0.06 per cent respectively.

The Nigerian Exchange Limited (NGX) will next week undertake a comprehensive review and preview of the capital market and the economy, with a view to providing useful insights to investors and other stakeholders.

The yearly ‘NGX Market Recap and Outlook’ is designed to review market performance in the preceding year and present expert predictions for the Nigerian capital market and the broader economy. The event brings together an audience of market practitioners, investors, analysts, government officials, regulators, media and other key stakeholders.

The ‘NGX 2022 Market Recap and 2023 Outlook’ event, will be headlined by Chief Executive Officer, Nigerian Exchange (NGX), Mr. Temi Popoola. It will also feature a presentation on “Global Markets Outlook for 2023 and Opportunities in the Nigerian Capital Market” by Simon Kitchen, Managing Director and Head of Strategy, EFG Hermes Research.

According to NGX, the event will provide participants with insights into the global and domestic capital markets and help enhance the Nigerian capital market’s positioning to attract domestic and foreign inflows as the Exchange looks to further improve the depth of liquidity available in the market.

NGX reiterated its commitment to championing sustainable Africa’s growth, noting that it remains dedicated to providing valuable insights and information to its stakeholders as part of commitment to enhancing financial literacy and inclusion, and stimulating the growth of the Nigerian capital market.

Nigerian equities closed weekend atop the global returns table with net capital gain of N703 billion, as investors scrambled to take positions in value stocks ahead of the release of the earnings reports for the 2022 business year.

Benchmark indices for the Nigerian stock market showed average return of 2.52 per cent for the week, equivalent to net capital gain of N703 billion. The rally nudged the average –year-to-date return for Nigerian equities so far in 2023 to 2.46 per cent.

Nigerian equities outperformed most global stock markets in a week that saw improved buy sentiments across the world. In United States, the benchmark Dow Jones Industrial Average (DJIA) and S & P 500 rose by 1.7 per cent and 2.3 per cent respectively.  United Kingdom’s FTSE 100 Index appreciated by 1.2 per cent. Japan’s Nikkei 225 recorded modest return of 0.6 per cent. France’s CAC 40 Index rallied by 2.3 per cent.

Germany’s XETRA DAX Index appreciated by 3.4 per cent. China’s SSE gained 1.2 per cent. STOXX Europe- which tracks the broad European markets rose by 1.3 per cent.  The MSCI EM- which tracks emerging markets, posted average return of 3.0 per cent while the twin MSCI FM, which tracks the frontier markets, rallied by 2.1 per cent.

The All Share Index (ASI)- the value-based common index that tracks all share prices at the Nigerian Exchange (NGX), crossed the 52,000 points to close weekend at 52,512.48 points as against its week’s opening index of 51,222.34 points.

Aggregate market value of all quoted equities at the NGX rose correspondingly from its week’s opening value of N27.899 trillion to close weekend at N28.602 trillion, representing an increase of N703 billion or 2.52 per cent. The perfect concurrence between the ASI and aggregate market value underlined that the increase in market value was entirely driven by share price appreciation, rather than primary market activities such as increase in volume of shares or primary revaluation of shares.

There were nearly two advancers for every decliner during the week, underlining the bullish sentiment driving trading at the stock market. A total of 51 equities recorded price appreciation last week as against 38 gainers in the previous week while there were 27 losers last week compared with 17 losers in the previous week.

With many recent monetary policies appeared to favour banks, investors’ appetite for banking stocks has risen considerably in recent period. All banks also operate the Gregorian calendar as their business year, which places their earnings season within the first quarter.

Extant rules at the stock market require quoted companies to submit their audited report and accounts not later than 90 days after the end of the business year.

The trio of FBN Holdings Plc, Sterling Bank Plc, and Guaranty Trust Holding Company Plc were the most active stocks during the week, accounting for 507.852 million shares worth N5.707 billion in 2,585 deals, 39.50 per cent and 19.26 per cent of the total equity turnover volume and value respectively. There are 157 quoted companies.

Most analysts expect the market to remain positive, citing the onset of the earnings season and expectations of steady returns by most quoted companies.

Nigerian investors also appeared to have hugely discounted the political risks, sustaining a strong trading momentum despite the fast-approaching February 2023 general elections.

Analysts at Arthur Steven Asset Management said they expected the positive overall market position to continue, citing the strong momentum in the highly influential oil and gas, financial services and industrial sectors.

“Investors should pay close attention to global indicators as well as trends under the current global situation. We would like to reiterate that investors should go for stocks with good fundamentals with regards to their portfolios,” Arthur Steven Asset Management stated.  

“In the short term, we expect market performance to be dominated by the bulls, as positioning for 2022 full-year earnings releases and accompanying dividends declarations should outweigh profit-taking activities. Notwithstanding, we advise investors to take positions in only fundamentally justified stocks as the weak macro environment remains a significant headwind for corporate earnings,” Cordros Securities stated in a weekend review.

Analysts at Afrinvest Securities stated that they “anticipate a sustained positive performance as investors seek bargain hunting opportunities”.

SCM Capital also expected positive trading to continue “as investors reposition their portfolios ahead of the earnings season”.

Sectoral analysis showed widespread positive sentiment with all sectoral indices closing positive, with the exception of the insurance sector, which dropped by 1.64 per cent. The NGX 30 Index, which tracks the 30 largest companies at the NGX, posted above average return of 2.77 per cent. The NGX Banking Index led the rally with a gain of 3.48 per cent. The NGX Industrial Goods Index followed with a return of 3.34 per cent.

The NGX Oil and Gas Index appreciated by 3.19 per cent. The NGX Consumer Goods Index rose by 0.68 per cent. The NGX Pension Index- which tracks stocks that meet the special investment guidelines for pension funds, rallied by 2.68 per cent while the NGX Lotus Islamic Index, which tracks ethical stocks that comply with Islamic rulings, posted average gain of 2.14 per cent.

Thomas Wyatt Nigeria Plc led the gainers, in percentage terms, with a gain of 52.58 per cent to close at N1.48 per share. Chams Holdings followed with a gain of 17.39 per cent to close at 27 kobo. Associated Bus Company rose by 16 per cent to close at 29 kobo. Livestock Feeds appreciated by 15.04 per cent to close at N1.30. Mutual Benefits Assurance added 14.29 per cent to close at 32 kobo while Sunu Assurances Nigeria rose by 13.79 per cent to close at 33 kobo per share.

On the negative side, Chellarams led the losers with a drop of 33.66 per cent to close at N1.34. Royal Exchange followed with a loss of 10.78 per cent to close at 91 kobo. Abbey Mortgage Bank and NEM Insurance dropped by 10 per cent each to close at N1.53 and N4.05 respectively. Cornerstone Insurance depreciated by 8.33 per cent to close at 55 kobo while Union Bank of Nigeria dipped by 7.19 per cent to close at N6.45 per share.

The momentum of activities also improved considerably with total turnover of 1.286 billion shares worth N29.634 billion in 19,816 deals last week as against a total of 921.856 million shares valued at N27.154 billion traded in 15,601 deals two weeks ago.

The financial services sector topped the activity chart with 952.237 million shares valued at N9.728 billion traded in 9,647 deals; representing 74.07 per cent and 32.83 per cent of the total equity turnover volume and value respectively. The industrial goods sector followed with 92.864 million shares worth N8.510 billion in 1,682 deals while the conglomerates sector placed third with a turnover of 54.568 million shares worth N96.654 million in 754 deals.

Companies in Nigeria are now to hold their meetings with provision for full physical attendance by shareholders and stakeholders as a guideline that allows companies to hold meetings mainly through the use of proxies expired on December 31, 2022.

The Corporate Affairs Commission (CAC) said the guideline, which was introduced in the wake of the COVID-19 pandemic, ceased to apply effective January 1, 2023.

Registrars-General (RG), Corporate Affairs Commission (CAC), Alhaji Garba Abubakar, said all public companies that have been granted approval to hold their annual general meetings (AGMs) using proxies were expected to have done so not later than December 31, 2022.

He said a public notice to this effect had been, noting that the guideline on use of proxies by public companies in holding AGMs was issued to address the particular concerns during the COVID-19 pandemic and facilitate compliance by these companies with statutory obligations.

He noted that the compelling circumstances of the pandemic which necessitated the guideline had ceased to exist.

Abubakar urged public companies to ensure compliance to the new directive.

“Notwithstanding whatever benefits holding AGMs by proxies may have afforded the companies, the option is at the instance of individual members of the company and may not be foisted on any member,” Abubakar, said.

Abubakar spoke at a one-day stakeholder’s interactive dialogue with the theme: “CAC Guidelines on Proxies AGMS of Public Companies Post Covid-19: Matters Arising. He was represented at the event  by an Assistant Director, Mr Tolu Sonaike.

Chairman, ISAN Universal Academy, Sir Sunny Nwosu, said the dialogue was aimed at reviewing the new normal enthroned worldwide in 2020 through the global health challenge known as Corona virus or COVID-19.

“COVID-19 ushered in public health uncertainties that disrupted international economic order. The pandemic which touched all sectors of the economy led to a new normal that metamorphosed into remote operations.

“As the new normal evolved in response to COVID-19, the pandemic accelerated the mandate for digital revolution, as many companies embraced and adjusted to the use of remote technology,” Nwosu said.

Company Secretary, Julius Berger Plc, Mrs Cecilia Madueke said that AGMs by proxies introduced by the CAC due to COVID-19 had been helpful to public companies.

Madueke described AGMs by proxies as a product of necessity, noting that Nigeria would have been left behind by the global economies due to COVID-19.

She commended the CAC for stopping the initiative saying that it was no longer relevant.

President, Institute of Capital Market Registrars (ICMR), Mr Seyi Owoturo, said that AGMs by proxies was introduced by CAC to address physical distancing for a maximum of people as ordered by the federal government.

Owoturo represented by Mrs Cathrine Nwosu, Second Vice Chairman, ICMR, said that the guideline was very useful during COVID-19 which made it possible for public companies to hold AGMs like other countries of the world.

•Laud Adebise for reforms

Shareholders yesterday were unanimous in their support for the leadership succession at Wema Bank Plc with the active retail shareholders expressing optimism that the appointment of Mr. Moruf Oseni will lead to improved performance in the years ahead.

Wema Bank had at the weekend announced the retirement of Mr Ademola Adebise with effect from March 31 2023 and the appointment of Oseni, current deputy managing director, as the new managing director. Also, Mr. Wole Akinleye, currently executive director in charge of corporate banking and south west banking, was appointed as deputy managing director while Tunde Mabawonku,  chief finance officer and divisional head of finance and corporate services was also appointed as executive director.

Chairman, Ibadan Zone Shareholders Association (IBZA), Mr. Eric Akinduro said the succession was indicative of good corporate governance at the bank as the seamless transition will enable the bank to build on its growth momentum.

He lauded Adebise for leading the bank from abyss of decline to a stable growth, adding that Oseni as a core member of the team will consolidate the growth of the bank

“One thing about a good leader is to have a successor. A leader’s lasting value is measured by succession.  Adebise came to Wema Bank when the bank was passing through a very critical time but he turned it around and today we have a very strong and virile bank. A historic achievement during his tenure was dividend payment after almost 13 years of break.

“As you know, a tree cannot make a forest, Oseni is a part of this team that transformed the bank to this level. He played a pivotal role during the introduction of ALAT which today has won many awards in digital banking. Being the successor will definitely help the bank to move to next level.

“The expectation of investors is that the bank is on the path of transformation and profitability and the new managing director, a man of vast experience, will turn his experience to growth and move the bank to the next level. We don’t have any doubt on this appointment. We so much believe in his ability to deliver up to our expectations. Regular payment of dividend should be one of his greatest priorities as chief executive officer of the bank,” Akinduro, whose association covers shareholders in South West states, said.

President, Association for the Advancement of Rights of Nigerian Shareholders (AARNS), Dr Faruk Umar said the appointment was commendable as Oseni has the requisite knowledge skills and experience to build on the performance of the bank

“I commend the appointment as this goes to show investors and customers that the bank has good succession plan in place. The appointment of Oseni will add tremendous value to the operations of the bank as he is familiar with the customers and staff of the bank, as well as the challenges facing the banking industry,” Umar, who sits on the boards of many companies, said.

transforming Wema Bank to enviable position among its peers. Posterity will be kind to him for various positive transformations of d bank since his assumption of duty. As shareholders, we are proud of his good legacies at the bank, particularly team spirit, which have continued to yield good result.

“We are delighted that the board picked his  successor from inside. This will be a morale booster  as it will no doubt encourage others to put in their best knowing fully that their labours will not be in vain.

“Our expectation is that the incoming managing director will continue the good legacy work of his predecessor and ensure that the bank continues to witness progress while delivering good returns to its stakeholders,” Bakare said.

Chairman, Wema Bank Plc, Mr. Babatunde Kasali, expressed profound gratitude to Adebise for his service and wish him the best in his future endeavors.

The board of directors  said it was confident that the appointment of the new executives will lead to the continued transformation and growth of the bank, particularly as the bank positions itself as a market leader in Nigeria’s retail banking segment through technology and innovation.

The board noted that the appointments take effect from April 1, 2023 and are subject to the approval of the Central Bank of Nigeria (CBN) and other regulatory authorities.

Oseni joined Wema Bank in June 2012 as an executive director. He has over 25 years of experience with more than 16 years at senior and executive management levels. He has been an executive director for six years and deputy managing director for the last four years and has demonstrated capacity to lead the bank.

He presently has responsibility for the digital optimization directorate which includes – digital, retail, treasury, operations, and the technology divisions. He is also the executive compliance officer of the bank. He supervised the launch of ALAT – Nigeria’s first digital bank that has received local and global awards and multiple accolades.

Before joining Wema Bank, Oseni was the chief executive officer of MG Ineso Limited, a principal investment and financial advisory firm. He had also worked as vice president at Renaissance Capital, and an Associate at Salomon Brothers/Citigroup Global Markets in London.

Oseni holds an MBA degree from the Institut European d’Administration des Affaires (INSEAD) in France, a Master’s in Finance (MiF) from the London Business School and a B.Sc. in Computer Engineering from Obafemi Awolowo University (OAU), Ile-Ife, Nigeria. He is also an alumnus of both the Advanced Management Program (AMP) of the Harvard Business School and King’s College, Lagos.

Adebise who will be proceeding on terminal leave from January 2nd, 2023, after over 13 years of service on the board of the bank, was appointed as the managing director of Wema Bank in June 2018. He had joined the bank in June 2009 as an executive director and rose to become the deputy managing director in 2015.

Under his leadership, he expanded the bank’s footprints to other locations in Nigeria, improved the performance of the bank and spearheaded the first Dividend payment in 13 years, since then, he has ensured consistent dividend payment over the last four years. The bank has grown its total assets by 155 per cent from N470 billion to over N1.2 trillion. Deposits also grew by 214 per cent from N350 billion to N1.1 trillion.

Adebise initiated the partnership with Bank of Africa to support its customers across the African continent which has increased the bank’s market share and customer base. All these led to an additional growth of two million customer accounts in Nigeria and a market share of three per cent of industry volumes. The bank is now the leading collection bank for state and government agencies due to its effective and efficient platform. The bank’s rating by agencies was upgraded to BBB investment grade.

Also, the bank significantly changed the digital landscape through the ALAT platform. The innovative platform came top in the KPMG Digital Scorecard for leading retail banks in Nigeria based on in-depth insights into the state of user experience on retail banks’ digital channels.

Furthermore, the bank launched the first SME Business School for capacity building and empowerment of SMEs, which has benefitted over 20,000 small businesses. The bank also became one of the founding members of the United Nations Environmental plan for financial institutions (UNEP-FI) and continues to provide digital solutions for societal impact.

Akinleye has over 32 years banking experience. A Fellow of the Institute of Chartered Accountants of Nigeria (ICAN), he is an alumnus of the Advanced Management Program of the Harvard Business School. He obtained his first degree in Accounting from Obafemi Awolowo University in 1989 and subsequently, a Master’s degree in Business Administration (Finance) from the same University.

Mabawonku has over 23 years of experience and has a Master’s in finance from the London Business School and a first degree in Economics from University of Ibadan. He is a Fellow of the Institute of Chartered Accountants of Nigeria (ICAN) and Chartered Institute of Taxation of Nigeria (CITN) and an Honorary Member of the Chartered Institute of Bankers (HCIB). He has attended several senior leadership programmes.

•Return underperforms regular exchange

Investors swapped 2,706 deals for about 3.90 billion shares worth N28.02 billion at the NASD OTC Securities Exchange in 2022.

The NASD OTC Securities Exchange is the government-approved over-the-counter (OTC) platform for trading in unlisted public companies.

Trading report at the weekend showed that investors sustained activities on the OTC market throughout the year with total turnover for the 12-onth period closing at 3898 billion shares worth N28022 billion in 2706 deals.

With 40 securities; 238 brokers and  152 participating institutions; total market capitalisation at the OTC market closed 2022 at N932.51 billion.

The OTC market underperformed the regular stock exchange as the market closed on a negative note as the market recorded a decrease in performance. NASD Security Index (NSI) year-to-date returns decreased by 4.47 per cent at 709.66 points at the last trading session of the year.

The OTC market was in synchronisation with the regular stock exchange in year-end rally during the last week of the year.  NASD Investors gained N7.45 billion as market capitalisation rose to N932.51 billion at the weekend as against N925.06 billion recorded in the previous week.

However, there was decline in momentum of trading during the last week. Turnover value dropped by 23.05 per cent to N172.34 million last week as against N223.94 million recorded in the previous week. Total volume also dropped by 2.95 percent to 44.62 million shares last week compared with 45.98 million shares in the previous week.

Geo-Fluids Plc ranked top among the five most traded securities by volume while Food Concepts Plc was the fifth most traded stock by volume traded last week. Niger Delta Exploration and Production Company Plc retained  top among the five most traded securities by value while Central Securities Clearing System Plc was the fifth most traded security by value traded in the last week.

NASD provides companies and investing public an orderly and transparent market for trading in securities that are not listed on any other securities exchange, providing a secure regulated platform for investors to trade on them.

Companies listed on the NASD OTC included Infrastructure Bank, formerly known as Urban Development Bank of Nigeria Plc, 11 Plc, formerly known as Mobil Oil Nigeria Plc, Capital Bancorp Plc, CitiTrust Holdings Plc, Dufil Prima Foods Plc, the manufacturer of Indomie Noodles; Friesland Campina Wamco Nigeria Plc, manufacturer of Peak Milk brand; and Fan Milk Plc, popular manufacturer of Fan Yoghurts, NIPCO Plc, Air Liquide Nigeria Plc Industrial & General Insurance Plc, Central Securities Clearing System Plc, the clearing and depository arm of the Nigerian Stock Exchange; Nigeria Mortgage Refinance Company, Jaiz International Plc; Acorn Petroleum Plc, Arm Life Plc, Afriland Properties Plc, BGL Plc, Consolidated Breweries Plc and Food Concepts Plc.

Others included Geo-Fluids Plc, Golden Capital Plc, Niger Delta Exploration & Production Plc, Partnership Investment Company Plc, Resourcery Plc, Riggs Ventures West Africa Plc, Swap Technologies & Telecomms Plc, Vital Products Plc, Fumman Agric Products Industries Plc, Free Range Farm Plc, FAMAD Plc, AG Mortgage Bank, Trustbond Mortgage Bank Plc, Mass Telecom Innovation (MTI) and Providus Bank among others.

Inaugurated in July 2013, NASD is registered by the Securities & Exchange Commission (SEC) as a Self-Regulatory Organisation (SRO). The NASD OTC provides the platform for trading of a broad range of instruments over-the-counter, including equities, bonds and securities not listed on the NSE.

Vitafoam Nigeria Plc has donated four blocks of classrooms worth millions of naira to United Anglican Primary School, Ibaram, in Ondo State.

The purpose-built  classrooms, aimed at creating an enabling environment for the underprivileged to acquire education, is one in the series of such laudable projects  being executed by Vitafoam across the six geopolitical zones that make up the 36 states and the Federal Capital Territory (FCT), Abuja.  For instance, a project of similar proportion will be completed in Borno State early next year.

Speaking at the tape-cutting ceremony at Ibaram, former Group Managing Director of Vitafoam Nigeria, Mr. Joel Ajiga said the project was a testament to Vitafoam’s passion for education and community development.

“The construction and furnishing of these four blocks of classrooms in Ibaram is one of many corporate social responsibilities (CSR) activities the company has embarked on over the years, with many more in the works.

“I am extremely delighted to be part of such an organisation that understands the importance of giving back to society especially with projects that will impact hundreds of people for many years,” Ajiga said.

Management Accountant, Vitafoam Nigeria Plc, Mr Julius Familoye noted that the Ibaram donation was the first of many projects Vitafoam plans to unveil in the coming years.

“Before now we have been involved in various CSR activities as our own way of supporting the communities where we operate in the areas of education and healthcare. We will continue to give back to the society, something we are extremely passionate about at Vitafoam,” Familoye said.

Nigerian equities sustained an all-week positive momentum to lose weekend with net capital gains of N213 billion, ushering investors into the yuletide with wider dining tables.

Average return at the Nigerian equities market stood at 0.79 per cent, equivalent to net capital gain of N213 billion. This drove the average year-to-date return for the Nigerian equities market to 16.36 per cent.

The performance of the Nigerian equities outweighed other global advanced markets, with Nigerian stocks playing the contrarian in a global market marked largely with negative sentiment.

Despite expected selloffs due to profit-taking transactions and yuletide’s demand for cash, most investors focused on early positioning for the year-end earnings seasons. Most Nigerian quoted companies run the 12-month Gregorian calendar year as their business year. Extant rules at the Nigerian market require all quoted companies to submit their audited annual report accounts not later than 90 days after the end of the business year.

In its sixth consecutive weekly gain, the All Share Index (ASI)- the value-based common index that tracks all share prices at the Nigerian Exchange (NGX) closed weekend at almost four-month high of 49,706.09 points as against its opening index of 49,316.29 per cent. Aggregate market value of all quoted equities rose simultaneously from its week’s opening value of N26.861 trillion to cross the N27 trillion mark to N27.074 trillion.         

Most analysts said the Nigerian market has entered its traditional Santa Claus rally, a tendency for the market to be upbeat towards the end of the year.

“The market holds its bullish trend for the ninth consecutive bullish session on strong momentum. This is still a continuation of the market’s bullish trend and possible Santa Claus rally,” analysts at Arthur Stevens Asset Management stated at the weekend.

Analysts at Afrinvest Securities said they expected the rally at the market to continue with “soft gains in the absence of negative catalysts.

“As the year draws to an end, we expect yield-seeking investors to take positions in stocks with attractive dividend yields ahead of the 2022 full-year dividend declarations. However, we advise investors to take positions in only fundamentally sound stocks as the fragility of the macroeconomic environment remains a significant headwind for corporate earnings,” Cordros Securities stated in a review at the weekend.

Analysts at Arthur Stevens Asset Management also advised investors to “pay close attention to global indicators as well as trends under the current global situation”, urging investors to “go for stocks with good fundamentals with regards to their portfolio”. 

Read Also: Local, foreign investors shun Nigeria’s investment funds

Nigerian equities largely outperformed several tracked global advanced and emerging markets. In United States, the Dow Jones Industrial Average (DJIA) rose by 0.3 per cent while the S & P 500 Index dropped by 0.8 per cent. United Kingdom’s FTSE 100 Index rallied by 0.6 per cent. Japan’s Nikkei 225 Index slumped by 4.7 per cent while China’s SSE Index also depreciated by 3.9 per cent.

With more than two advancers to a decliner, the overall market situation was driven by widespread gains recorded across the sectors. All sectoral indices closed on the uptrend, with the banking sector index leading with average return of 1.97 per cent. The NGX Consumer Goods Index followed with a gain of 0.98 per cent. The NGX Oil and Gas Index trailed with average return of 0.91 per cent. The NGX 30 Index- which tracks the 30 largest stocks at the market, rose by 0.62 per cent. The NGX Insurance Index rallied by 0.32 per cent. The NGX Industrial Goods Index inched up by 0.04 per cent. The NGX Pension Index- which tracks stocks that meet the investment guidelines for pension funds, rose by 2.80 per cent while the NGX Lotus Islamic Index, which tracks ethical stocks that comply with Islamic investment rules, rallied by 0.19 per cent.    

There were 41 gainers against 17 losers last week compared with 32 gainers and 28 losers in the previous week. Thomas Wyatt Nigeria led the gainers, in percentage terms, with a gain of 42.1 per cent to close at 81 kobo. Royal Exchange followed with a gain of 16.67 per cent to close at 98 kobo. Champion Breweries rose by 1ent to close at N4.70 per share. Ardova rallied by 12.57 per cent to N18.80 while Custodian Investment rose by11.21 per cent to close at N5.95 per share.

On the negative side, UPDC led the losers’ chart with a drop of 8.08 per cent to close at 91 kobo. PZ Cussons Nigeria dropped by 8.06 per cent to close at N11.40. Mutual Benefits Assurance lost 6.90 per cent to close at 27 kobo. RT Briscoe also fell by 6.90 per cent to close at 27 kobo. Neimeth International Pharmaceuticals declined by 6.90 per cent to close at N1.35 while FTN Cocoa Processors lost 6.45 per cent to close at 29 kobo per share.

The momentum of activities also improved considerably during the week. Total turnover rose to 860.933 million shares worth N16.134 billion in 14,502 deals, compared with a total of 814.089 million shares valued at N12.204 billion traded in 15,488 deals two weeks ago.

The financial services sector was the most active with a turnover of 360.234 million shares valued at N3.772 billion in 6,905 deals; thus contributing 41.84 per cent and 23.38 per cent to the total equity turnover volume and value respectively. The construction and real estate sector followed with 302.200 million shares worth N927.033 million in 261 deals. The consumer goods sector placed third with a turnover of 39.078 million shares worth N1.685 billion in 2,593 deals.

The three most active stocks were UPDC Real Estate Investment Trust, FBN Holdings Plc and Guaranty Trust Holding Company Plc. The three most active stocks jointly accounted for 440.239 million shares worth N3.015 billion in 2,038 deals, representing 51.13 per cent and 18.69 per cent of the total equity turnover volume and value respectively.

At the exchange traded products (ETP), a total of 1.303 million units valued at N6.011 million were traded in 37 deals compared with a total of 10,201 units valued at N2.827 million traded in 25 deals two weeks ago.

At the secondary bond market, a total of 28,007 bond units valued at N27.186 million were traded in 15 deals compared with a total of 10,398 bond units valued at N11.496 million traded in 14 deals two weeks ago.