Category: Capital Market

Prima Corporation (Prima) Limited, a leading manufacturer of preforms and caps in West Africa, has listed its inaugural commercial paper issuance on the FMDQ Securities Exchange (FMDQ Exchange)

FMDQ Exchange’s board listings and markets committee approved the quotation of the Prima Corporation’s N3.57 billion Series 1 Commercial Paper (CP). It was issue under Prima’s N30 billion CP programme.

Group Executive Director, Prima Corporation Limited, Mr. Debasis Roy, commenting on the successful CP issuance, said Prima Corporation Limited was pleased on the quotation of the inaugural Series 1 CP issuance under the N30 billion programme.

“We are delighted at the opportunity to access an alternative source of funding to meet our short-term working capital needs,” Roy said.

Also, commenting on the quotation, Head, Capital Markets, FBNQuest Merchant Bank Limited, Mr. Oluseun Olatidoye, said FBNQuest Merchant Bank Limited was delighted about the quotation of the Prima Corporation Limited inaugural CP.

“The funds raised will be utilised to meet the working capital needs of Prima Corporation Limited.  FBNQuest Merchant Bank Limited is also pleased with its intermediation role in assisting businesses to access alternative sources of funding through the domestic debt markets,” Olatidoye said.

FMDQ Exchange assured that with positioning to bring about revolutionary changes in the Nigerian debt markets, it shall continue to deliver value-adding services and initiatives, ranging from its highly efficient listings and quotations service to product and market innovations, amongst others.

FMDQ Exchange stated that the quotation of the Prima’s CP validated FMDQ Exchange’s conscious drive to support the goals of corporate businesses and to deepen the Nigerian financial markets by steadfastly availing its efficient platform for the registration, listing and quotation of debt securities.

 

Sterling Bank Plc, Nigeria’s leading lender to the healthcare industry, and the Healthcare Federation of Nigeria (HFN) have signed a Memorandum of Understanding (MoU) that will enable the bank to provide finance for further digitisation of operations of members of HFN as well as offer financial advisory services to them.

Speaking at the signing in Lagos, Divisional Head, Health and Education Sectors, Sterling Bank, Mr. Obinna Ukachukwu said the bank hopes to achieve digitisation, financing and financial advisory services for members of HFN.

“We have been working on it for some months now and the goal is to see how we can upgrade every healthcare operator from manual record keeping to a digital system,” Ukachukwu said.

According to him, Sterling Bank has always felt that one of the challenges facing the healthcare sector is the lack of proper documentation or inability to keep suitable records of operations. This state of affairs has made it difficult for financial institutions to examine the books of healthcare practitioners in a transparent manner.

He pointed out that with HFN being the umbrella body for all the serious healthcare professionals in the country, it is better to partner with the group to drive a process like this because it is an accountability group that could help members learn from one another.

“We are trying to introduce transparency which will enable HFN members to have access to finance at different levels and we are optimistic that this would help scale up the industry,” Ukachukwu said.

President, HFN, Dr. Pamela Ajayi,  who commended Sterling Bank for its commitment to the healthcare industry, remarked that the bank has been involved in the sector for more than 20 years through Magnum Trust Bank, which invested in a company she founded as an SME. Magnum Trust is one of the legacy banks that formed Sterling Bank during the consolidation in the banking industry.

She described the MoU as another step in the right direction and a huge step for all healthcare practitioners because the terms that Sterling Bank is giving them are exceptional.

she noted that the terms would ensure that HFN members will be able to achieve their objectives through this funding.

Ajayi, who is the founder and CEO of Synlab Nigeria, noted that the digitisation aspect of the MoU is useful in so many ways because apart from increasing access to finance, it would also help with the health outcomes in line with global trends because every healthcare provider that is digitally inclined would remain in business for long.

Dr. Olaleye Oluwafemi, Health Finance Manager who explained the mechanics of the MoU, said what HFN is trying to achieve is to make it easier for members that qualify to have access to finance at good interest rates and speed up their investments.

He said HFN is also interested in ensuring that members take full advantage of Sterling Bank’s drive to give opportunities to healthcare providers so that they can gain access to ERM and HMS systems while also benefitting from financial advisory services provided by the bank.

 

Investors welcomed the Nigerian Exchange Group (NGX Group) Plc to the main board of the Nigerian Exchange (NGX) Limited with a rally as the holding group opened up its ownership and shareholding to the investing public at the weekend.

NGX Group, the holding group for the demutualised Nigerian Stock Exchange (NSE) and its former subsidiaries, at the weekend listed its entire issued share capital of 1.964 billion ordinary shares of 50 kobo each on the stock exchange.

The listing by introduction was done at a price of N16.15 per share implying entry market capitalisation of about N31.72 billion. NGX Group was listed in the newly created financial services and capital market infrastructure sector of the Exchange, with the ticker “NGXGROUP”.

Immediate trading records within minutes of listing showed a major rally for the new stock as investors struck 31 deals for 3.56 million ordinary shares, pushing the share price up by almost the maximum daily allowable change of 10 per cent to N17.75 per share. This implied a post-listing market capitalisation of N34.86 billion as against listing market capitalisation of N31.72 billion.

Group Chairman, Nigerian Exchange Group Plc, Otunba Abimbola Ogunbanjo said the listing was sequel to the company having successfully meeting listing requirements of the Exchange and obtaining relevant regulatory approvals.

He said the listing was another milestone under the group’s 2018 – 2021 corporate strategy noting that the group’s shareholder base has more than doubled since its demutualisation in March, this year.

He assured that shareholders will benefit from the enhanced liquidity that listing on the Exchange will facilitate.

 

“This listing will also enable a much wider universe of potential investors and market participants to share in our growth journey. As a board, we embrace the letter and spirit of the listing requirements and we are committed to transparent disclosure, proactive stakeholder engagement and exemplary corporate governance,” Ogunbanjo said.

Group Managing Director, Nigerian Exchange (NGX Group) Plc, Mr. Oscar Onyema said the  listing of NGX Group on the nation’s premier Exchange, NGX, will enable institutional investors globally as well as the Nigerian public to invest in Nigerian Exchange Group.

“With strengthening market dynamics, serving the largest economy in Africa, NGX Group’s listing allows us to expand in key capital market infrastructure verticals and look beyond Nigeria’s borders, as we deliver on our growth plans to become Africa’s leading capital market infrastructure group,” Onyema said.

Chief Executive Officer, Nigerian Exchange (NGX) Limited, Mr. Temi Popoola said the milestone listing was particularly exciting as it would position NGX Group to provide liquidity to members while stimulating the capital market ecosystem to grow at the same pace as the economy.

“Today, we reiterate our commitment to being a trusted partner to NGX Group and other listed companies as we continue to build a platform that allows our listed companies, investors and other stakeholders to maximise value in our market,” Popoola said.

The conversion of the defunct NSE from a not-for-profit, member-owned mutual organisation limited by guarantee to a profit-making, public limited liability company with shareholders, led to the creation of a holding company NGX Group with three subsidiaries  namely: Nigerian Exchange Limited (NGX Limited), the operating exchange, which took over the listing and trading function of the defunct NSE; NGX Regulation Limited (NGX REGCO), the independent regulation company which took over the self regulatory functions of the defunct NSE; and NGX Real Estate Limited (NGX RELCO), the real estate company that took ownership of real estate and other assets, including the iconic Stock Exchange building in Lagos.

While the NSE was initially incorporated under the Companies Ordinance of 1958 on September 15, 1960 as a private company limited by guarantee with a share capital, it was re-registered as a company limited by guarantee without a share capital in 1990 upon the enactment of the Companies & Allied Matters Act, Cap C20, 2004, (CAMA), which replaced the Companies Ordinance (1958). CAMA had required all companies limited by guarantee that had a share capital to be converted to companies limited by guarantee without share capital, thus the Exchange’s Memorandum of Association was duly altered and the NSE then became a not-for-profit corporate legal entity without a shareholding structure.

The demutualisation process was launched in 2002 with the approval-in-principle of the conversion by the council of the Exchange. Members of the Exchange in March 2017 passed crucial resolutions that authorised the council and management to proceed with the process leading up to the demutualisation of the Exchange.

Investors appeared ecstatic over the bid by Heineken to acquire about 1.197 billion ordinary shares of 50 kobo each in Akwa Ibom-based Champion Breweries, a move that may increase the controlling equity stake of the Netherlands-based Heineken in the Nigerian brewer to about 76 per cent.

Champion Breweries closed weekend as the highest gainer for the week, in terms of percentage, with a gain of 49.52 per cent to close at N3.14 per share. Market analysts said investors were responding to the takeover bid with expectation that Heineken will offer premium price to attract investors. However, the company has not indicated the offer price for the MTO.

In a regulatory filing at the Nigerian Exchange (NGX) Limited, Heineken, through its wholly-owned subsidiary, Raysun Nigeria Limited, indicated that it plans to acquire 1.197 billion ordinary shares or about 15.3 per cent additional stake in Champion Breweries under a mandatory takeover bid (MTO).

Heineken holds the majority equity stake in both Nigerian Breweries and Champion Breweries, which are both quoted on the NGX. Heineken, through Raysun Nigeria Limited, holds 60.7 per cent majority equity stake in Champion Breweries.  Akwa Ibom State holds 10 per cent equity stake while other Nigerian shareholders hold 29.3 per cent equity stake.

Champion Breweries’  shareholding base of 7.83 billion ordinary shares of 50 kobo each include 4.75 billion for Raysun Nigeria, 782.9 million ordinary shares for Akwa Ibom State and 2.29 billion ordinary shares for other investors.

The acquisition of the full MTO target of 1.197 billion ordinary shares will increase Heineken’s Raysun Nigeria’s shareholding from 4.752 billion shares or 60.7 per cent to 5.949 billion ordinary shares or about 75.99 per cent equity stake.

The MTO was triggered by the directives of Nigeria’s apex capital market regulator, Securities and Exchange Commission (SEC), in line with the provisions of Section 131, Part XII of the Investment and Securities Act, No. 29, 2007 and Rule 445 of SEC Rules and Regulations, 2013.

Section 131 of the Investment and Securities Act (ISA) and Rule 445 of SEC make it mandatory for any institution or person that acquires at least 30 per cent of a company to make an MTO to other minority shareholders. There are however exemptions in few instances.

In a statement signed by Chairman, Chairman Breweries Plc, Dr Elijah Akpan, the company noted that the board of Raysun Nigeria had on May 10, 2021, granted approval for the MTO to be made to all the other shareholders of Champion Breweries other than Raysun Nigeria.

“Raysun has received the SEC’s authority to proceed with the offer and will file the offer document with the SEC for registration. Following the registration, Raysun will making a tender for the offer shares, which the shareholders may accept at their discretion,” the company stated.

Shareholders of Champion Breweries had urged Heineken to merge Champion Breweries with Nigerian Breweries to create synergies that could deliver greater values to all stakeholders.

Shareholders had said the ongoing consolidation in the breweries sector had placed a multiple-entities strategy in disadvantage as major investors such as SABMiller and Diageo consolidate their operations in Nigeria to create critical mass that can drive turnover in the increasingly competitive market.

President, Progressive Shareholders Association of Nigeria (PSAN), Mr. Boniface Okezie, had said Heineken should, without delay, set in motion the process to merge Champion Breweries with Nigerian Breweries in order to optimise the potential of the Akwa Ibom State-based company and bring benefits to minority retail shareholders.

According to him, while Heineken derives indirect benefits through its management and inter-member contracts within the group, minority shareholders have not been able to benefit from the turnaround because the company lacks the scale to compete profitably.

Champion Breweries’ principal activities now consist of contract brewing services to Nigerian Breweries as well as brewing and packaging of Champion Lager Beer and non-alcoholic Champ Malta.

Okezie noted that with the envisaged increased competition in the industry, Champion Breweries lacks the network and scale to stand alone, adding that the company will do better with combination of its business with Nigerian Breweries.

Another shareholder, Mr Anthony Omojola, a leading member of the Independent Shareholders Association of Nigeria (ISAN), said the merger of Champion Breweries with Nigerian Breweries is the best likely thing to happen as such will be in line with the global best practice when it comes to unlocking synergies.

He said the common majority core investor in the two breweries should make the process of business combination smooth.

Another shareholder, Mr. Michael Cole, described Champion Breweries as a baby in the increasingly competitive breweries industry noting that it lacks the market penetration needed to profitably compete in the industry.

He urged the directors of the company to consider all options and go the extra mile to create better values for shareholders.

Responding to shareholders’ remarks, Chairman, Champion Breweries, Dr Elijah Akpan, had said the company had seen stronger competition with ongoing mergers between brewing giants in the world, which lead to more innovations and inflow of new brands in the market.

He however noted that the outlook for the Nigerian breweries sector remains bright because of the country’s large and varied opportunities.

“We shall explore the available possibilities the Nigerian business environment is offering to increase our market share within our business region. Considering our present financial position from deficit to surplus, our company has the right mindset and structures to achieve payment of dividend to you our esteemed shareholders in no distant future. We remain resolute in continuously achieving cost optimization and innovation for increased profit,” Akpan said.

Akpan assured that the board and management of the company are working on a long-term vision that will ensure that the company becomes profitable to the extent of paying dividends to shareholders.

 

 

To promote savings culture among Nigerians and reward loyal customers during the festive season, Access Bank Plc has turned the dial up with its DiamondXtra product.

The leading banking group is set to reward one lucky customer with N10 million, another lucky customer with ‘Salary for Life’ of N100,000 every month for 20years on December 25th 2021. In the countdown to the mega draw, the bank will reward one customer daily with N1 million from December 6 to 24, 2021.

Addressing reporters during the unveiling of the campaign tagged “DiamondXtra Mega Draw”  in Lagos, Executive Director, Retail Banking, Access Bank Plc, Victor Etuokwu, said there’s no better way to celebrate Christmas and the end of year than with a big win.

According to him, beginning in the month of October, the bank will be giving its loyal customers and new customers the opportunity to save and qualify for the daily DiamondXtra mega draw which will be a daily draw in December for N1 million naira for a lucky customer, culminating in the jackpot draw on Christmas Day for the grand prizes.

“All you need to do to qualify for the draw is to open a DiamondXtra account and fund up to N50,000. For every N50,000 you save, you get a ticket into the Mega draw and increase your chances of becoming a Millionaire in the DiamondXtra Mega Draw.

“To open a new account, simply dial *901*5# and if you have an existing DiamondXtra account, just dial *901# to fund the account with N50,000 or more,” Etuokwu said.

Read Also: Access, FCMB, Wema, others shine at DBN service awards

Group Head, Consumer Banking, Access Bank Plc, Adaeze Umeh said more than 31 customers will be rewarded with over N60 million during the campaign period.

“We want to change more lives and that is why we have taken the DiamondXtra scheme to another level. We want to empower more Nigerians financially during the festive period so that they can take care of their needs and loved ones too.

“We will be creating one millionaire every day in December and two lucky winners will go home with the grand prize money of N10 million and ‘Salary for Life’ of N100,000 for 20 years. This is our own way of celebrating Nigerians and ushering them into the yuletide season. We urge all our customers to take advantage of this great opportunity and join the winning train.

“All you need to do as an existing Diamondxtra customer is to increase your account balance with a minimum of N50,000 or more to qualify. New customers can also walk into any of our branch or dail *901*5# to open a DiamondXtra account with a minimum of N50,000,” Umeh said.

She noted that the bank’s Diamondxtra Cluster draws are still open for customers in the different regions, urging various associations, clubs, groups and societies to come together as a cluster and open DiamondXtra accounts for their members with N5,000 minimum deposit each for a draw to be held for their group where the winning pot is up to N150,000.

According to her, to qualify for a cluster draw, a minimum of 80 to 100 members of the association or club will have to open and fund their account with a minimum of N5,000 or more to stand a chance to win.

DiamondXtra is an interest yielding hybrid account which allows deposit of both cash and third-party cheques. As a hybrid account, DiamondXtra combines both savings and current account features. The DiamondXtra reward scheme was launched in 2008 and has been running till date.

 

Stockbrokers have concluded arrangements to support government’s growth agenda by fashioning out sustainable model for medium to long-term financing of economic growth initiatives.

Stockbrokers, under the auspices of Chartered Institute of Stockbrokers (CIS), are organising a hybrid conference with the  theme,  “Capital Market as a catalyst for economic development and sustainable growth” to brainstorm on new strategy that will enable the government source long term fund from the capital market.

The conference, billed to start on Thursday, October 28, 2021 in Lagos, comes as the Federal Government struggles with budget deficit of some N6.25 trillion. Despite mounting agitation from the private sector on the implications on the revenue, value of the Naira and inflation, the government has maintained its borrowing spree.

Stockbrokers have consistently urged the government to take advantage of the capital market to raise medium and long-term funds to build infrastructure.

President, Chartered Institute of Stockbrokers (CIS), Mr Olatunde Amolegbe, said the 25th Annual conference would come up with techniques by which the federal government could finance infrastructure through mobilisation of medium and long term funds from the capital market.

“We intend to hold discussions around optimising some elements of capital markets to improve economic development and sustainable growth in Nigeria,” Amolegbe said.

Read Also: Fed Govt to partner stockbrokers on economic growth

The conference shall undertake a  review  of Petroleum Industry Act (PIA) and opportunity for the capital market,  micro, small and medium enterprises (MSMEs) as an engine of growth for economic development, crowdfunding: its regulations and impacts and  fintech  evolution and the capital market among other topical issues.

Amolegbe said there would be panel discussion with speakers drawn from the capital market community, regulatory bodies, academia, media, sister agencies, and those in diaspora.

Corroborating him, the Institute’s Chairman, Programmes Committee, Mr Oluropo Dada noted that this year’s conference would be historic, going by renewed interest of various professionals in the securities profession.

“We are set to host the biggest Stockbrokers’ event in the history of the Institute, given the unprecedented large number of the inductees and investees. The renewed interest of our members and students in our certifications is symbolises that securities trading remains a profession of choice,” Dada said.

Another stockbroker and a Co-chairman of the Conference Committee, Mrs Elile Olutimayin said in order to ensure a successful conference, the institute had been engaging the stakeholders in the financial market ecosystem, including government functionaries.

 

Participants will include stockbrokers, fund managers, regulators, government representatives, investment bankers, and existing and potential investors.

 

 

MTN Nigerian Communications (MTN Nigeria) Plc has launched book building to raise N89.999 billion in the second tranche of its N200 billion bond issuance programme.

The commencement of the book building at the weekend followed approval of the N89.999 billion Series II 10-Year Fixed Rate Bond by the Securities and Exchange Commission (SEC). The second tranche marks the completion of the N200 billion bond issuance programme. MTN Nigeria had earlier raised more than N110 billion under the first tranche.

MTN Nigeria stated that the bond issuance continues to reinforce its strategy of diversifying its funding sources.

MTN Nigeria plans to invest $1.5 billion or about N640 billion over the next three years on expansion of its broadband access in all parts of Nigeria.

The planned investment is at the core of MTN Group’s strategic plan known as  “Ambition 2025: Leading Digital Solutions for Africa’s Progress”. It also aligns with Federal Government’s 2020-2025 National Broadband Plan.

Read Also: MTN suspects internal sabotage in network outage

Group President and Chief Executive Officer, MTN Group, Ralph Mupita, had described Nigeria as one of the company’s most important markets.

He said the company’s plan to sell  14 per cent equity stake to Nigerian investors was at an advanced stage.

“Nigeria is one of our most important markets. We have a proud history of partnering with Nigeria and Nigerians to drive faster and more inclusive growth through digital transformation,” Mupita said after a three-day visit to Abuja and Lagos.

He reiterated the telco’s support for Nigeria’s desire to secure 90 percent broadband population coverage by 2025.

He added that MTN Nigeria plans to build a new flagship headquarters in Lagos  to mark its 20th anniversary in Nigeria.

 

Ellah Lakes Plc plans to list its shares on the London Stock Exchange (LSE) in a dual listing expected to provide the agricultural company with international access to capital and strategic investments.

Shareholders of Ellah Lakes are expected to vote on a resolution empowering the board of directors of the company to list its shares on the LSE at their annual general meeting scheduled for late November in Lagos.

The special resolution on LSE listing is expected to be a major highlight of the meeting, in addition to ordinary businesses of presentation of audited results and reelection and election of directors and other parties.

The meeting will consider the audited report and accounts of the company for the year ended July 31, 2021. Ellah Lakes  posted a net loss of N563.28 million loss in 2021 as it continued to incur operating expenses without turnover.

Key extracts of the audited report and accounts showed that pre-tax loss increased from N308.30 million in 2020 to N567.79 million in 2021. After taxes, net loss increased from N309.37 million in 2020 to N563.28 million in 2021.

Meanwhile, the company’s total assets rose from N5.63 billion in 2020 to N10.08 billion in 2021.

Managing Director, Ellah Lakes Plc, Mr. Chuka Mordi,  has said ongoing restructuring would make Ellah Lakes to attain profitability and further foster its vision of being the leading supplier of sustainable edible oil and starch to the consumer goods sector in Nigeria.

He noted that prior to 2019, Ellah Lakes was an insolvent entity but Telluria Ltd completed a reverse acquisition of the company, recapitalising the balance sheet and repositioning the business for growth with a new board and management team.

“Today, we are undergoing a restructuring exercise, which will return the business to profitability and reposition it as a leading agribusiness player across West Africa. From a corporate governance point of view, we hold ourselves to high standards of governance as expected by our shareholders and regulator, and as is befitting of our vision to become the leading supplier of sustainable edible oils and starch to the FMCG Industry in Nigeria, particularly, and West Africa, in general,” Mordi said

He assured that the resolution of the company’s free float deficiency remains a priority of the board, noting that the company is working together with its advisers and the Nigerian Exchange (NGX) on ensuring that the required free float percentage is achieved in the shortest possible time.

Read Also: Strong November jobs report shows solid economy and best of all worlds for stocks

Chief Agronomist Ellah Lakes Plc, Mr. Jamie Rixton, presented the financials and future plans of the company, emphasizsing its intention to improve cash flow and ultimately start paying dividends to shareholders.

Ellah Lakes and Ondo State have recently reached agreement on the development of a palm oil and cassava farm, covering about 5,000 hectares.

Both partners would jointly develop and manage the farm for the cultivation of oil palm and cassava in Ondo state.

Mordi said the agreement was a significant landmark for the company in the development of its landbank.

He said the company was excited to be working with Ondo State Government as this would further help to diversify its portfolio and product base.

“I am delighted that we are fulfilling our strategic objective of progressively expanding our land bank and diversifying our portfolio and production base. I am also glad to say that the intercropping programme in Edo State is progressing steadily and we have achieved our first milestone of 100 hectares of cassava with the participation of personnel of the Agricultural Development Program (ADP), in Edo State,” Mordi said.

Chief Executive Officer, Ondo State Development and Investment Promotion Agency (ONDIPA), Mr. Akinboye Oyewumi said the government was pleased with the collaboration with Ellah Lakes as it looks forward to a mutually beneficial, valuable and fruitful venture.

Ellah Lakes had in August 2020 entered into exclusive discussions to acquire the entire issued capital of an oil palm processing company with substantial assets in Delta State.

Ellah Lakes was incorporated on July 2, 1980 and was listed on the NSE on January 14, 1993. Originally a fish-farming company, Ellah Lakes had recently embarked on a comprehensive restructuring and diversification of its businesses. In 2019, it acquired Telluria in order to diversify its product offerings in the agribusiness sector.

Ellah Lakes acquired 100 per cent equity stake in Telluria with effect from May 7, 2019. Having complied with all the necessary regulatory requirements, the acquisition was approved by the NSE and Securities and Exchange Commission (SEC).

 

Investors in Nigerian equities closed weekend with net capital loss of N117 billion as the stock market was overwhelmed by increased sell-offs of mid and large-cap stocks ahead of the September school resumption period.

With relatively lower demand forcing several investors to open up market orders to attract deals, bargain-hunters took advantage of the increased sell orders to close deals at lower prices, depressing the overall market position.

The benchmark index for pricing trend at the Nigerian stock market, the All Share Index (ASI) of the Nigerian Exchange (NGX) Limited, closed weekend down at 39,261.01 points as against its opening index of 39,485.05 points, representing a drop of 0.57 per cent.

Aggregate market value of all quoted equities also dropped from its week’s opening value of N20.573 trillion to close weekend at N20.456 trillion, indicating a net capital depreciation of N117 billion.

The decline pushed the negative average year-to-date return to -2.51 per cent, implying that average investors have lost not less than 2.51 per cent of the total value of their portfolio so far this year.

Sectoral analysis showed a near market-wide bearishness with the exception of the insurance sector, which played the contrarian with average gain of 0.79 per cent for the week. The NGX 30 Index, which tracks the 30 largest companies at the stock market, declined by 0.53 per cent while the NGXX Premium Index, where some of the largest quoted companies are listed, posted above-average decline of 0.68 per cent, underscoring the weight of the large-cap stocks on market performance.

Read Also: MDCAN seeks state of emergency in health sector

The influential NGX Banking Index declined by 0.58 per cent. The NGX Industrial Goods Index- where Nigeria’s largest quoted company-Dangote Cement is listed, recorded above-average drop of 0.89 per cent. The NGX Oil and Gas Index recorded the highest loss of -2.96 per cent. It was followed by NGX Consumer Goods Index with average return of -1.34 per cent. There was also no safe haven for selective investors. The NGX Pension Index, which tracks stocks specially screened for investment of pension funds, dropped by 0.25 per cent while the NGX Lotus Islamic Index, which tracks stocks that comply with Islamic investment guidelines, slipped by 0.29 per cent.

Nigerian stock market was a contrarian in a global market dominated by bullish sentiments last week. From America to Europe, Asia and Middle East, most markets closed positive. United States of America’s benchmark- S & P rose by 0.6 per cent. United Kingdom’s FTSE 100 Index appreciated by 0.4 per cent. Japan’s Nikkei 225 posted above average gain of 5.4 per cent while Chinese stocks recorded average gain of 1.7 per cent. STOXX Europe- a broad index for European markets rose by 0.4 per cent. The MSCI EM Index-which tracks emerging markets generally, posted average gain of 3.1 per cent while MSCI FM Index, which tracks frontier markets inched up by 0.3 per cent.

At the Nigerian market, most analysts attributed the overall negative position to sell-offs occasioned by profit-taking transactions, against the background of gains recorded in August and the cash requirements for school resumption expenses. Most schools in Nigeria resume this month for a new session, putting pressure on parents and sponsors in a country with a large private-funded education system.

Analysts were however optimistic on the outlook for the market with earnings releases and interim dividends by major banks expected to stimulate demand in the period ahead.

“In the coming week, we expect earnings from the big banks, specifically Guaranty Trust Holding Company (GTCO) and United Bank for Africa (UBA) to drive buying sentiments on the bourse, as the declaration of interim dividends may likely accompany the results,” Cordros Securities stated.

Analysts at Cowry Asset Management said they expected “the equities market index to trade positively as investors position ahead of qualification period for interim dividend payment”.

Analysts however advised investors to take positions in only “fundamentally justified stocks as the unimpressive macro story remains a significant headwind for corporate earnings”.

Total turnover at the NGX stood at 1.338 billion shares worth N8.650 billion in 19,830 deals last week as against a total of 1.026 billion shares valued at N8.183 billion traded in 18,102 deals two weeks ago.

The financial services sector remained atop activity chart with 615.594 million shares valued at N4.188 billion traded in 9,021 deals; thus contributing 45.99 per cent and 48.42 per cent to the total equity turnover volume and value respectively. Conglomerates sector followed with 253.392 million shares worth N280.789 million in 1,126 deals while consumer goods sector placed third with a turnover of 185.854 million shares worth N1.593 billion in 4,107 deals.

The three most active stocks, by turnover volume, were Transnational Corporation of Nigeria Plc, Honeywell Flour Mill Plc and Access Bank Plc which altogether accounted for 450.570 million shares worth N1.492 billion in 3,696 deals, contributing 33.66 per cent and 17.25 per cent to the total equity turnover volume and value respectively.

Also, a total of 54,468 units of Exchange Traded Products (ETPs) valued at N2.603 million were traded in 19 deals compared with a total of 39,465 units valued at N1.834 million traded in 27 deals penultimate week.

At the debt segment, a total of 100,152 bond units valued at N99.670 million were traded in 27 deals compared with a total of 26,861 bond units valued at N27.503 million swapped in 17 deals two weeks ago.

Expectedly, there were more decliners than advancers. A total of 36 stocks closed negative while 26 stocks appreciated last week, lower than 35 gainers and 29 losers recorded in the previous week. Oando led the losers with a drop of 15.21 per cent to close at N4.07 per share. Mutual Benefits Assurance followed with a loss of 12.50 per cent to close at 28 kobo. Courteville Business Solutions dropped by 12.12 per cent to close at 29 kobo. Unity Bank dipped by 10 per cent to 54 kobo while LASACO Assurance declined by 9.74 per cent to close at N1.39 per share.

On the positive side, Transcorp Hotels led the gainers with a gain of 10 per cent to close at N5.17 per share. Skyway Aviation Handling Company Plc followed with a gain of 9.46 per cent to close at N4.05. Presco appreciated by 8.90 per cent to close higher at N79.50 per share. Cornerstone Insurance rallied by 7.55 per cent to 57 kobo per share while AIICO Insurance added 5.10 per cent to close at N1.03 per share.

Meanwhile, at the NASD OTC Securities Exchange, transactions were also generally negative. NASD is the over-the-counter (OTC) market for trading of securities of unlisted public limited liability companies and other securities which are not listed on the regular securities exchange.

NASD OTC Securities Exchange Index closed the week on negative, dropping by 0.20 per cent to close the week at 734.9 points as against 736.38 points recorded as opening index. The week saw NASD investors losing N1.30 billion as NASD OTC market capitalisation dropped to N638.75 billion compared with N640.05 billion posted as opening value for the week. With this, the NASD Security Index’s year-to-date returns decreased by 0.91 per cent.

•Source: FSDH

As the world marks International Day of Charity, Sterling Bank at the weekend unveiled Africa’s first free banking services for non-governmental organisations (NGOs). Called Sterling CARES, it was initiated to empower non-profit organisations across the country.

Chief Executive Officer, Sterling One Foundation, Olapeju Ibekwe said the initiative was in partnership with Nigeria Network of NGOs and was targeted to support non-profit organisations who are working to attain the United Nations Sustainable Development Goals (SDGs) and individuals that have dedicated their time to helping others.

According to her, the International Day of Charity was a great opportunity to support philanthropic activities by these charitable institutions.

“We are releasing and unveiling the first free banking services to support those awesome people who work in various communities to reduce poverty, help people have better access to health services, help children without parents get better education and support displace people,” Ibekwe said.

Read Also: Jaiz Bank secures $25m Shariah-complaint cash from Islamic Corp

She explained that Sterling CARES was only open to NGOs and not to religiously shaped institutions, cooperative societies, schools and associations.

“We recognise that nonprofits like us help lots of people who are struggling to make ends meet through donations and various interventions. However, funding is one of the leading challenges currently facing the NGOs,” Ibekwe said.

She added that the only applicable charge on the account would be for SMS notifications while account holders also get to benefit from the partnership with giving.ng, Africa’s foremost crowd-funding platform that offers free services and gives grants to fundraisers focused on driving social impact in the society.

She expressed hopes that so many others would soon join the initiative from other countries in Africa.

The major partner of the initiative, Executive Director, Nigeria Network of NGOs, Mr Oyebisi Oluseyi expressed delight to be a part of it; describing the service as a declaration of support by the bank and foundation for those committed to social impact work and the attainment of the United Nations Sustainable Development Goals in Nigeria.

“This will go a long way in further increasing both the social and economic impact of Nigerian nonprofits while contributing to the good work nonprofit organizations do across the country in the areas of environment, respect for human rights, and improve the welfare of the disadvantaged including freeing up more resources to scale nonprofit solutions,” Oluseyi said.

Group Head Client Coverage and Financial Institutions Sterling Bank, Mr Tolulope Lawal outlined how the bank has been empowering the NGOs by removing transaction fees and other charges so that they can focus on making a difference.