Category: Capital Market

Investors appeared to be taking major positions in the oil and gas and banking sectors as companies round off the 2021 financial year. Transactions on the shares of three major oil and gas and banking stocks accounted for two-thirds of total turnover at the Nigerian stock market at the weekend.

Trading report for the week showed that the trio of Oando, FBN Holdings (FBNH) and Guaranty Trust Holding Company (GTCO) were the most active stocks for the week, accounting for 2.28 billion shares worth N17.4 billion in 3,645 deals, representing 66.47 per cent and 56.27 per cent of the total equity turnover volume and value respectively.

All the three companies are currently undergoing considerable transition. Oando, which saw N12 billion deals, recently resolved a major investors’ dispute. FBNH is a subject of aggressive acquisition in contest for major shareholding while GTCO changed its operating structure from a standalone commercial bank to a financial holding group.

Oando was the most active stock with a trunoer of 1.99 billion shares worth N11.92 billion in 472 deals. FBNH followed with a trunoer of 147.34 million shares worth N1.79 billion shares in 1,151 deals while GTCO placed third with 145.4 million shares valued at N3.68 billion in 2,014 deals. Reliable sources confirmed that the transactions on Oando were mainly related to the resolution of the recent investors’ dispute.

Total turnover at the Nigerian Exchange (NGX) stood at 3.44 billion shares worth N30.92 billion in 21,109 deals last week as against a total of 1.39 billion shares valued at N27.89 billion traded in 19,990 deals two weeks ago.

With the Oando deals, the oil and gas services sector led the activity chart with 2.014 billion shares valued at N13.448 billion traded in 1,350 deals; thus contributing 58.63 per cent and 43.50 per cent to the total equity turnover volume and value respectively. The financial service sector followed with 1.052 billion shares worth N10.168 billion in 10,941 deals while the consumer goods sector placed third with a turnover of 183.803 million shares worth N4.492 billion in 4,007 deals.

The pricing trend at the Nigerian market remained bullish with net capital gains of N54 billion last week. Average return for the week stood at 0.25 per cent, nudging the average year-to-date return to 7.54 per cent.

The All Share Index (ASI)- the benchmark value index that tracks share prices of all quoted equities at the NGX, closed weekend at 43,308.29 points as against its opening index of 43,199.27 points for the week. Aggregate market value of all quoted equities also increased correspondingly from the week’s opening value of N22.544 trillion to close the week at N22.598 trillion.

A total of 147 units of Exchange Traded Products valued at N15,76 were traded last week in seven deals compared with a total of 54,936 units valued at N481,455 traded in 19 deals two weeks ago.

At the secondary debt market, a total of 31,275 bond units valued at N33.596 million were traded last week in 21 deals compared with a total of 65,606 bond units valued at N68.507 million traded in nine deals penultimate week.

Pricing trend analysis further showed that there were 29 gainers and 36 losers last week opared with 15 gainers and 49 losers recorded in the previous week. University Press recorded the highest gain of 27.83 per cent to close at N2.94 per share. Ikeja Hotel followed with a gain of 17.39 per cent to close at N1.35 while Honeywell Flour Mill rose on the back of its ongoing merger to close higher by 16.8 per cent at N3.96 per share.

On the negatie side, UACN Property Development Company (UPDC) posted the highest loss of 14.94 per cent to close at N1.31 per share. Cutix followed with a drop of 14.02 per cent to close at N2.76 per share while MRS Oil and Gas declined by 9.87 per cent to close at N13.70 per share.

“In the coming week, we expect the market to extend this week’s positive performance on improved sentiment, barring any negative shock,” Afrinvest Securities stated in investment review.

Wema Bank Plc’s digital banking brand, ALAT ,   was awarded the ‘Most Outstanding Digital Bank Brand of the Year Award’ at the 2021 Brandcom Awards.

The Brandcom Awards honours brands, agencies, and notable individuals in the brands and marketing communications industry who have distinguished themselves with tangible and laudable impacts.

Commenting on the award presented to ALAT By Wema, Chief Digital Officer, Wema Bank, Segun Adeniyi, said the award has once again affirmed ALAT’s leadership in the digital banking sphere, and how the leading financial institution’s innovative efforts has been appreciated in the industry and by   Nigerians.

“This is another achievement that can be attributed to ALAT’s industry leadership as an innovative financial solution. We are delighted to be honoured with this recognition, and we dedicate this award to all our customers who trust the integrity of ALAT and have continuously made it their first choice,” Adeniyi said.

Read Also:Wema Bank posts N7.2b PBT in Q3

Head, Marketing Communications and Investor Relations, Wema Bank, Funmilayo Falola, who received a personal award of ‘Most Outstanding Marketing Communications Professional of the Year’ in the financial services category, expressed gratitude for the strategic industry recognition of the bank.

“This award truly humbles us; it is a big testament to our mantra that ‘ALAT is not just a bank, it’s a lifestyle, and an innovation that has come to simplify seamless and inclusive transactions beyond borders whilst leveraging technology,” Falola said.

ALAT’s Brandcom award is the latest honour for the digital bank launched in 2017. In 2018, ALAT was named the ‘Digital Banking Platform of the Year’ by BusinessDay and ‘Best Digital Bank in Africa’ at that year’s Asian Banker Awards.

The bank also won the ‘Excellence in Branchless Banking’ award in the New Age Banking Awards and was nominated as the ‘Best Innovative Digital Solution in Nigeria’ by the World Summit Awards. ALAT also clinched the ‘Best Mobile Banking App’ by the illustrious World Finance Magazine. ALAT is available for download on Android, iOS and web apps.

Alternative dispute resolution has the propensity to address the yawning gap in investment across the country.

The foregoing was the experts’ opinion expressed at the just concluded 2021 annual conference of Arbitrators in Lagos.

Tagged: ‘Disruption and The New Normal in Arbitration/ADR- A Way Forward’, the event which was partly physically and virtual drew participants from the organised private and public sectors including civil servants, civil society, media, bankers and lawyers respectively.

While declaring the conference open, the Chairman of the 2021 Annual Conference Planning Committee of the Nigerian Institute of Chartered Arbitrators (NICArb), Sir Oladipo Opeseyi (SAN) said alternative dispute resolution if effectively executed can imbue confidence in individuals and the public in general.

Experts, including officials of Lagos state government also held that considering the cost implications of disputes to businesses, having an effective Alternative Dispute Resolution System (ADRs) is a better method of dispute resolution. They have also pointed out that the appetite for such resolutions has given rise to arbitration in major economies.

According to the Lagos state government, this will guarantee investors that their investments are safe and guided by the rule of law and by doing so, boost investment and investor’s confidence.

“Unlike litigation, arbitration presents a new frontier in today’s evolving world and this represents the future which Lagos State said it has embraced and as theme of the conference shows, we are in the new normal which shows that potential technology is not destructive to the rule of law but an enabler to increase access to justice.”

Also speaking at the conference, the incoming President and Chairman of Governing Council of the institute, Professor Fabian Ajogwu (SAN), admitted that while the Covid-19 social distancing world has brought virtual meetings to the fore for many businesses and government organs including courts, the arbitration community and the ADR community in general is better equipped to take the stage and lead in the resolution of issues between disputing parties who are confined to their rooms because of the ban on international travels.

According to some of the experts, while some advantages of virtual arbitration/ADR includes fast, flexible and cost effective, as many countries and business grapple with the harsh economic realities occasioned by the devastating effect of Covid-19 on the economy, virtual arbitration/ADR provides a versatile solution in the resolution of disputes.

The conference had over 200 delegates physically and over 100 delegates online with about 50 speakers from all over the world who participated in the annual conference.

DataPro, the Technology-Driven Credit Rating Agency (CRA) in its latest report assigned Babban Gona Farmer Services Nigeria Limited long-term rating of “BBB+” with a Stable outlook for the year 2021/2022.

According to the agency, the “BBB+” indicates slight risk as well as shows fair financial strength, operating performance and business profile when compared to the standard established by DataPro. This company, in our opinion, has the ability to meet its ongoing obligations, but its Financial Strength is vulnerable to adverse changes in economic conditions.

The DataPro Rating Committee approved the Rating after assessment of the company’s Financial Performance, Corporate Governance & Risk Management, Risk Factors and Future Outlook of its current healthy profile in the medium to long-term period.

Expatiating, the agency stressed that the rating of Babban Gona Farmer Services Nigeria Limited is supported by its strong earning profile, good asset quality, very good liquidity and experienced management team.

Babban Gona Farmer Services Nigeria Limited had a Short-Term Rating of “A1” which indicates Good Credit Quality and satisfactory capacity for timely payment of financial commitments.

DataPro notes that the Rating carries a maximum shelf life of 12 calendar months, in line with International Best Practice. The rating is therefore, not an offer to trade in securities nor a substitute for the user’s judgement. It is meant for reference purposes.

Nigeria will soon introduce capital market studies as part of its educational curriculum as part of efforts to enhance financial literacy and boost savings and investments.

Securities and Exchange Commission (SEC), Nigeria’s apex capital market regulator, said the plan to introduce capital market studies in primary, secondary and tertiary institutions has reached an advanced stage.

SEC stated that it has always collaborated with other stakeholders in the capital market in order to enhance the level and quality of financial literacy in Nigeria.

SEC noted that the ongoing 2021 World Investors Week (WIW) highlights firm commitment to financial education initiatives which enable retail investors to have the confidence to participate in financial markets on a properly informed basis.

“This is particularly important during these challenging times. In line with the above, the SEC is poised in this fifth edition of the WIW, to sustain the milestone that has been achieved in deepening investor education and increasing financial literacy among the investors,” SEC stated.

Nigeria’s foreign capital inflow is set to get a boost with the forthcoming investment summit scheduled for Toronto, Ontario, Canada.

The Canadian International Conference on Trade, Investment and Development (CICTID), a private sector initiative, plans to hold the CICTID 2022 investment summit between June 16 and 19, 2022 at Toronto, Ontario, Canada.

Chairman, Canadian International Conference on Trade, Investment and Development (CICTID), Mr Wale Adesanya, said theme of the summit is “Sustainable economic collaboration and investment in humanity in a post-pandemic world.”

He noted that the objective of CICTID is to explore opportunities for expanding the capability of and improving the competitiveness of developing countries in the area of trade, investment, and development.

“A private sector initiative, this is with a view to assisting in overcoming difficulties of the post-pandemic global economic climate to help integrate into the changing world economy,” Adesanya said.

Vice Chairman, CICTID, Apostle Cornelius Babalola, said it was a multilateral forum that would grant participants the opportunity to partner countries as well as private companies involved in development.

“CICTID is a multilateral forum whose participants include not only African countries but also international organisations, partner countries, private companies and civil society organisations involved in development,” Babalola said.

He explained that the participants would be engaged in fruitful discussions on global, Africa, Asia and South America development, bringing together a broad range of global knowhow and efforts of the international community.

“CICTID will provide an open forum that generates innovative discussion, among various stakeholders, on their development,” Babalola said.

He added that CICTID 2022 promises to offer opportunities for capacity development, financial options for international partnerships and collaborations, entrepreneurship training and exchange skill programmes.

According to him, it will offer opportunities for small and medium scale businesses, presentations and networking opportunities for off-takers of exportable products, both existing and startup levels.

He said that the event would be a hybrid that includes online access and in-person participants, investors and individuals or businesses looking for potential investors.

Babalola charged the Nigerian government to mobilise its public and private sectors to harness economic opportunities in the forthcoming CICTID 2022 summit.

He listed potential co-partners of the forum to include United Nations; United Nations Development Programme;  World Bank; African Union Commission; African Development Bank and Global Affairs Canada.

Red Star Express Plc has successfully renewed its Standards Organisation of Nigeria ISO 9001:2015 certification.

Group Managing Director, Red Star Express Plc, Dr. Sola Obabori, said the audit measured the management systems’ compliance with audit standards, the management system’s implementation, the capability of meeting the organisation’s policy objectives, the system’s performance, and the appropriate use of the logo.

He reaffirmed the company’s commitment to best practice, which allows it to demonstrate excellence in all aspects of service delivery.

“The re-validation of our quality processes shows that we are committed to quality, increased performance, employee and customer satisfaction,” Obabori said.

Quality and Service Assurance Manager, Red Star Express Plc, Mr. Toyin Owolabi, lauded the management and staff members for their commitment to continuous improvement.

He urged staff members to ensure that they follow the specified internal controls, rules, and procedures to keep the quality management system in good working condition.

According to him, the key advantages of obtaining the ISO 9001:2015 certifications for Red Star included increased marketing appeal, global recognition, satisfying requirements for participation on various tender lists and increased customer loyalty.

The Central Securities Clearing System (CSCS) Plc was adjudged Depository and Custody Company of the Year at the Banks and other Financial Institutions’ Awards (BAFI) held in Lagos.

Managing Director, Central Securities Clearing System (CSCS) Plc, Mr. Haruna Jalo-Waziri said the emergence of CSCS as the winner of the keenly contested award was a testimony of the company’s outstanding performance in the depository and custody roles as the central securities depository (CSD) for all securities transacted in the Nigerian capital market.

He explained that CSCS keeps and maintains an electronic book-entry record of all securities including shares, bonds, treasury bills amongst others to facilitate the safekeeping and easy transfer of securities between parties during a trade.

He attributed the award to the company’s huge investment in technology and manpower. This is CSCS’s third consecutive year of winning awards at the BAFI

“The decision we took to ensure that all share certificates were dematerialised and stored for efficient monitoring and management has no doubt brought us success and we will continue to ensure that we enhance our relationship with the depository participants while also accelerating the process of transfer of securities and eliminating risks that are related to holding physical financial securities,” Jalo-Waziri said.

The Nigerian-British Chamber of Commerce (NBCC) will highlight investment and trade opportunities between Nigeria and Britain and ways to further deepen bilateral economic relationships at its forthcoming presidential inauguration dinner.

The NBCC will use the presidential dinner for the inauguration of its 17th and Second female president-Bisi Adeyemi to further eplore ways to grow businesses between Nigeria and Britain and also launh the haber’s software programming academy and incubator for young women.

The dinner, scheduled for Friday, December 3, 2021 at Eko Hotel and Suites, Victoria Island, Lagos, promises to be a riveting experience with Dr Olayemi Cardoso, Chairman, Citibank Nigeria Limited as the chairman of the day and Dr Omobola Johnson, Chairman, Guinness Nigeria Plc, as the guest speaker.

Speaking at a media conference on the inauguration dinner, Director-General, NBCC, Mrs Ayomide Olajide said the presidential dinner is not only to celebrate and honour the president but also hold a grand and befitting event to showcase the chamber and its activities.

According to her, the yearly presidential dinner is the premier event of the chamber to celebrate excellence in the business sector and to promote Anglo-Nigerian business relationships.

She noted that this year’s dinner would be more symbolic with the Inauguration of Adeyemi and the launch of empowerment and development programme for young women.

Chairman, Presidential Inauguration Dinner Committee, Mr. Akin Osuntoki said the event would showcase NBCC as the foremost bilateral chamber in Nigeria, diligently striving to deepen Anglo-Nigerian trade and investment.

He pointed out that NBCC’s main objective has been the promotion of trade and investment between Nigeria and Britain since inception in 1977.

NBCC has about 400 members spanning all sectors of the economy made up of Nigerian and British business people. Headquartered in Lagos, NBCC maintains an NBCC-UK Network in London and a developing network of local branches within the country.

Other executives of NBCC at the conference included Prince Abimbola Olashore , Deputy President;    Ms. Anne Rinu, Chairman, Advocacy Committee and Mrs. Grace Adejare-Ajuwon, Vice-Chair, Communications Committee., Nigerian-British Chamber of Commerce.

Nigeria’s largest brewing company, Nigerian Breweries Plc, says it has attained about 56 per cent in local sourcing of raw materials and has injected $114 million in capital investments and expansion projects in its bid to build a resilient economy.

This is even as the brewing company said about N98 billion has been invested in cultivating local  materials as well as sorghum and cassava value chain through commercial purchase and smallholder farming in the last five years.

Managing Director, Nigerian Breweries Plc, Hans Essaadi, said that the company intends to invest significantly in capacity extension to meet its objectives as well as demands in the market.

“We have grown with Nigeria and it is clear that moving forward, we will continue to invest significantly in capacity extension to meet our objectives as well as demands in the market.

We should expect much of these extensions in the East and Northern part of the country and our majority shareholder, Heineken is committed to this and this is good as it will bring direct and indirect job opportunities for Nigerians,” Essaadi said.

Corporate Affairs Director, Nigerian Breweries, Sade Morgan, who also spoke during a media parley in commemoration of the NB’s 75th Anniversary in Lagos, noted that despite the pandemic in 2020, the brewing company kept to its strategy of delivering satisfaction and growth in 2021 and added that the Nigerian economy has remained resilient and still remains an exceptional market with the right fundamentals for growth.

She noted that the company had embarked on local sourcing of raw materials while revealing that its target is not yet 100 per cent.

“We have done about 56 per cent in local material sourcing but our packaging material is at 100 per cent but the challenge with the raw material is the availability locally of the ingredients that goes into making most of our products.

“So that is an area where we will continue to pioneer as we did with sorghum with backward integration and investing in being able to realize in Nigeria the products needed essentially but for now we want to be able to satisfy our consumers and give them the same quality of beer that they can get anywhere in the world as when you drink a Heineken in Nigeria, it is the same in as the one in Amsterdam and the United Kingdom. We have to be able to ensure that the ingredients are consistent and also of quality and that is where we are on raw material and of course we will continue to improve,” Morgan said.

According to her, NB had in its bid to build a resilient economy through sustainable capital investments have injected about $114 million in capital investments and expansion projects scheduled for 2021/2022 in Ama (Enugu) brewery and has prioritized import substitution and accretion for foreign reserve with N78 billion in investing and cultivating locally sourced materials in the last 5 years and N20 billion in sorghum value in 2021 through commercial purchase and smallholder farming.