The Nation Newspaper

Category: Equities

  • Fidelity Bank’s offers receive positive investors’ sentiment

    Fidelity Bank’s offers receive positive investors’ sentiment

    • Why we are buying more shares, by shareholders

    Two weeks into the offer period, Fidelity Bank Plc’s combined N127.1 billion rights and public offer appeared to have struck early success as investors’ survey showed widespread positive sentiment for the commercial bank.

    Fidelity Bank is offering a rights issue of 3.2 billion ordinary shares of 50 kobo each at N9.25 per share. The bank is also simultaneously offering 10 billion ordinary shares of 50 kobo each to the general investing public at N9.75 per share.

    The acceptance and application lists for the rights issue and public offer, which opened on Thursday, June 20, 2024, are scheduled to close on Monday, July 29, 2024. The rights issue has been pre-allotted on the basis of one new ordinary share for every 10 existing ordinary shares held as at the close of business on Friday, January 05, 2024.

    Investors said the pricing of the discounted rights issue and public offer, the operational growth of the bank over the years, dividend records and capital gains are attractions to buy more stakes in the bank.

    In separate interviews, shareholders across Nigeria’s leading shareholders’ associations, shareholders said they would pick their rights and buy more shares from the public offer.

    Nigeria’s most-widely owned commercial bank, the success of Fidelity Bank’s rights issue depends on the retail shareholders and their experience is expected to influence the general market behaviour to the bank’s offers.

    With nearly 400,000 shareholders, no single shareholder held up to 5.0 per cent of the issued share capital of the bank. Five per cent and above are considered the material shareholding under extant laws and market regulations.

    Shareholders said they envisioned that a post-recapitalisation Fidelity Bank would deliver higher returns and continue to be a leading preserver of values for shareholders’ wealth.

    Read Also; a branch of Fidelity Bank in Abeokuta

    Shareholders, under the auspices of Independent Shareholders Association of Nigeria (ISAN), Ibadan Zone Shareholders Association (IBZA), Association for the Advancement of Rights of Nigerian Shareholders (AARNS), Pragmatic Shareholders Association of Nigeria and Progressive Shareholders Association of Nigeria among others, said they were picking up their rights and mobilising supports for the bank.

    President, Association for the Advancement of Rights of Nigerian Shareholders (AARNS), Dr Faruk Umar, said the enthusiasms that have greeted the combined rights and public offers suggest a strong possibility of oversubscription for both offers.

    Umar, who sits on boards of many companies, said Fidelity Bank has several factors working in its favour including its steep growth, high returns and stable board and management.

     “The performance of Fidelity Bank has tremendously increased over the past years. The bank has a very professional board with some of the best independent directorships in the banking industry. The prolific appreciation of the share price is a testimony of the confidence shareholders have in the stock of the company.

     “The rights issue’s price is reasonable compared to the dividend paid recently. I am very confident that both the rights and the public offer will be oversubscribed,” Umar said.

    He commended the Group Managing Director of Fidelity Bank, Dr Nneka Onyeali-Ikpe, for her strong and inclusive leadership, noting that her management style empowers and mentors staff towards the success of the bank.

    National Coordinator, Independent Shareholders Association of Nigeria (ISAN), Mr. Moses Igbrude, said Fidelity Bank has consistently shown strong performance and paid dividends over the years while investors have also benefited from price appreciation.

    “I believe it is a good investment. As for me, I will take up my rights and equally buy the public offer. I am encouraging investors to take up their rights. The bank is solid and strong with a lot of potential to grow,” Igbrude said.

    Chairman, Ibadan Zone Shareholders Association (IBZA), Mr Eric Akinduro, said the combined offer was an opportunity for investors to position for greater returns.

     “The best time to invest more in Fidelity Bank is now, considering the giant strides the bank is taking to become a bigger and more formidable bank. A bank that got to N14 this year and selling its shares below N10 is a big discount for investors to increase our stakes.

    Considering the dividend growth of the bank, investors should not miss this opportunity because after recapitalisation, this time should be the last time the bank’s shares will sell below N10,” Akinduro said.

    According to him, the banking recapitalisation period is a good opportunity for discerning investors.

    “I do tell our members to prepare for the recapitalisation of banks and use the opportunity to increase our stakes for good dividend yield and capital appreciation. I’m quite sure that the Fidelity Bank’s offers will be 100 per cent successful considering the future of the bank,” Akinduro said.

    National Coordinator, Progressive Shareholders Association of Nigeria, Mr Boniface Okezie, said investment in Fidelity Bank has proven to be all positives for investors, with good immediate returns and long-term capital appreciation.

    According to him, a good investment serves the dual purpose of helping the investors with good stream of incomes and preserving long-term value.

     “I will take my right issues in Fidelity Bank, considering the bank’s performance over the years. It has been  delivered excellent returns to investors. We’ve not regretted putting our hard-earned money in the bank. That is the reason why I’m going to reinvest more into the bank for further incomes into my pocket, because we are seeing higher dividends from the bank year in year out. That is what average investors look out for before making their decisions to invest into any company, first and foremost,” Okezie said.

    National Coordinator, Pragmatic Shareholders Association, Mrs. Bisi Bakare, said Fidelity Bank’s impressive returns make it attractive stock for existing shareholders and others.

    She described the bank as proactive, adding that the bank has been consistent in growing its operations and delivering values to shareholders.

    “As an investor and shareholders’ leader, I’m going to take my rights allocated to me and even request for more shares. All my members are going to do the same. Our association is very pleased with the hybrid offer because Fidelity Bank is a good and proactive bank.

    “Fidelity Bank has consistently been paying dividends. Last year, they paid both interim and final dividends.  Investors always look forward to returns on their investment and we have been getting good returns on our investments.

     We are fully in support of the hybrid offer, especially given the price of the rights issue. I will take my rights fully and ask for more,” Bakare said.

  • Ellah Lakes’ major investor distributes shares to creditors, shareholders

    Ellah Lakes’ major investor distributes shares to creditors, shareholders

    CBO Capital Partners Limited (CBO), a major shareholder of Ellah Lakes Plc, has decided to transfer a portion of its equity stake to its shareholders and creditors in a move that will further dilute the ownership structure of Ellah Lakes.

    Chief Executive Officer, Ellah Lakes, Mr. Chuka Mordi yesterday said the transfer by CBO was aimed at twin objectives of strengthening CBO’s financial position and also freeing up more shares for retail investors’ participation in Ellah lakes.

    According to him, the transfer, which will be done through cross deal, was aimed at at offsetting CBO’s outstanding obligations to CBO shareholders, while simultaneously fulfilling Nigerian Exchange’s (NGX) requirements on the free floating of Ellah Lakes shares.

    “By undertaking this strategic move, CBO is demonstrating its’ commitment to financial responsibility and compliance with regulatory standards set forth by the NGX. The decision to transfer a portion of Ellah Lakes shares to its’ creditors not only helps CBO manage its’ obligations effectively, but also enhances the liquidity and free float of Ellah Lakes shares in the market.

    “This cross deal signifies a proactive approach by CBO to strengthen its’ financial position and support the stability and growth of Ellah Lakes Plc. We believe that this trade move will have a positive impact on all stakeholders involved and contribute to the overall success of Ellah Lakes Plc,” Mordi said.

    Read Also; Ellah Lakes eyes capital injection to boost operations

    Ellah Lakes had signed many agreements in recent period for major projects that are expected to form the backbone of the company’s business diversification drive.

    It had reached agreement to build a 600-tons sugar refinery in collaboration with Montserrado Investment Ltd. The sugar processing facility is expected to run on 100 per cent renewable power.

    Ellah Lakes had earlier reached agreement with Ondo State 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.

    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 Nigerian Exchange (NGX) 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).

  • Equities sustain rally with N131b gain

    Equities sustain rally with N131b gain

    Nigerian equities broke into a high-spirited rally yesterday as investors increased demand for value stocks in financial services and manufacturing sectors.

    Benchmark indices at the Nigerian Exchange (NGX) closed with average return of 0.21 per cent, equivalent to net capital gain of N131 billion, its highest gain in recent trading sessions.

    With nearly two advancers for every decliner, the positive overall market position was driven by improved buy sentiment across the sectors, especially within the mid and large-cap stocks in banking and manufacturing sectors.

    The All Share Index (ASI)-the value-based common index that tracks all share prices at the NGX, rose from its opening index of 100,067.77 points to close at 100,299.48 points.

    Aggregate market value of all quoted equities also rose simultaneously from its opening value of N56.607 trillion to close at N56.738 trillion.

    There were 29 gainers to 19 losers. Cornerstone Insurance recorded the highest gain of 9.57 per cent to close at N2.29 per share. RT Briscoe Nigeria followed with a gain of 9.38 per cent to close at 70 kobo. Industrial & Medical Gases (IMG) Nigeria Plc rose by 9.24 per cent to close at N13. UPDC Real Estate Investment Trust added 9.0 per cent to close at N5.45 while Caverton Offshore Support Group appreciated by 6.92 per cent to close at N1.39 per share.

    Read Also: Nigeria’s annual equities

    On the negative side, University Press led the losers with a drop of 10 per cent, to close at N2.25 per share. DAAR Communication followed with a loss of 5.88 per cent to close at 48 kobo. Omatek Ventures declined by 5.80 per cent to close at 65 kobo. Neimeth International Pharmaceuticals depreciated by 5.63 per cent to close at N1.51 while Unity Bank dipped by 5.49 per cent to close at N1.55 per share.

    The momentum of activities slowed down slightly as turnover dropped by 6.41 per cent to 342.196 million shares valued at N4.753 billion in 7,592 deals. Fidelity Bank topped the activity chart with 137.641 million shares valued at N1.418 billion. Universal Insurance followed with 21.229 million shares worth N8.565 million. AIICO Insurance placed third with 14.923 million shares valued at N15.553 million. Access Holdings recorded 14.881 million shares valued at N290.942 million while Cornerstone Insurance pooled 9.405 million shares worth N21.340 million.

  • Access Holdings set to launch N351b rights issue

    Access Holdings set to launch N351b rights issue

    • Offer may open next week

    Directors of Access Holdings Plc and their professional advisers yesterday signed off on a N351.01 billion rights issue, paving the way for the offer to open for subscription.

    The formal signing ceremony held at the group’s Lagos head office, saw the directors and professional parties signing the offer documents, a ceremony that completed all pre-offer processes.

    Access Holdings will be offering 17.77 billion ordinary shares of 50 kobo each to existing shareholders at N19.75 per share.  The rights issue was pre-allotted on the basis of one new ordinary share for every two existing ordinary shares held as at Friday, June 7, 2024.

    Shareholders of the group had at their annual general meeting in April 2024 unanimously mandated the company to raise $1.5 billion and N365 billion in a multi-tranche, multi-currency and multi-instrument capital raising exercise.

    Acting Managing Director, Access Holdings Plc, Bolaji Agbede, yesterday said the rights issue was a significant step in delivering the group’s 2023-2027 strategic plan.

    “The additional capital will enable us to maximise emerging opportunities and deliver long-term value to our shareholders,” Agbede said.

    She added that the offer was part of the group’s strategy to enhance its working capital requirements, which includes organic growth funding for its banking and non-banking subsidiaries.

    Subject to approval of the Securities and Exchange Commission (SEC), the acceptance list for the rights issue is expected to open on Monday, July 8, 2024, and close on Thursday, August 8, 2024.

    Chapel Hill Denham is the lead issuing house to the offer while Atlas Registrars Limited will serve as registrars to the exercise. The joint issuing houses are Coronation Merchant Bank, Stanbic IBTC Capital, Vetiva Advisory Services, Greenwich Merchant Bank, FCSL, First Ally Capital, FCMB Capital, Renaissance Capital Africa and Meristem Capital.

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    Other parties to the offer are Coronation Merchant Bank, Coronation Securities, Chapel Hill Denham Securities Limited, FSDH Capital, Cordros Capital, Cowry Securities, First Integrated Capital Management Ltd, Network Capital Ltd, CSL Stockbrokers Limited, Compass Investment & Securities Ltd, PAC Securities Limited, Dynamic Portfolio, Chartwell Securities Limited, Tiddo Securities Limited, and Futureview Securities Limited.

    Chairman, Access Holdings Plc, Mr Aigboje Aig-Imoukhuede, in a media chat with journalists after the annual general meeting, had said the group was focused on two major issues of banking sector recapitalisation and continuous good returns on investment to shareholders.

    He said the new banking recapitalisation is a “sensible prudential regulation” necessary to ensure that banks are in good position to withstand dynamics of their business environment.

    “I think on the issue of recapitalisation, first of all as a group, Access Holdings wholeheartedly endorses the recapitalisation signal by the CBN.

    “Banks, particularly after period of significant devaluation of the domestic currency, volatility in the exchange and interest rates regime are always encouraged to build up the capital buffers to ensure that whatever adverse effect within their balance sheet is a result of these dynamism changes in the environment will not affect their going concern.

    “So, we endorsed the policy by CBN and it is good and sensible prudential regulation. It is not the first time CBN has come up with such policy. In 2004, when Access Bank had about N3 billion capital and it was increased to N25 billion.

    “Between 2004 and 2007, our team when I was the Chief Executive Officer, our team raised $2 billion common equity capital and therefore, if come 2024, Access Bank, much older, wiser, stronger, larger and significantly respected by the capital market with over 800,000 shareholders, raising $300 milliion in capital is not much a challenge,” Aig-Imoukhuede said.

    Underlining the reasons for its diverse capital raising programme, Aig-Imoukhuede said the group believes in ensuing that shareholders of all categories have opportunities to continue with the group in its journey.

    He said the group also has a very unique relationship with capital markets in Nigeria and international, thus the focus of its capital raising exercise.

    At the meeting, shareholders increased the issued share capital of the company from N17.773 billion of 35.545 billion ordinary shares of 50 Kobo each to N26.659 billion of 53.318 billion ordinary shares of 50 kobo each by the creation of additional 17.773 billion ordinary shares of 50 Kobo, ranking pari-passu with the existing ordinary shares of the company.

    The meeting also approved a resolution empowering the board to establish a capital raising programme of up to $1.5 billion or its equivalent, through the issuance of ordinary shares, preference shares, Alternative Tier 1, convertible and/or non-convertible notes, bonds or any other instruments, whether by way of a public offering, private placement, rights issue, book building process or any other method or combination of methods, in such tranches, series or proportions and at such dates, coupon or interest rates within such maturity periods and upon such terms and conditions as may be determined by the board subject to obtaining the requisite regulatory approvals.

    Shareholders mandated the company to raise capital of up to N365 billion by way of a rights issue on such terms and conditions and on such dates as may be determined by the directors, subject to obtaining the approvals of the relevant regulatory authorities.

    As part of the capital raising process, the meeting approved that any shares not taken by existing shareholders within the period stipulated under the rights issue may be offered for sale to other interested shareholders of the company on such terms and conditions as may be determined by the directors subject to the approvals of the relevant regulatory authorities.

  • Equities rebound with N26b gain

    Equities rebound with N26b gain

    • Jaiz Bank rallies

    Nigerian equities regained their rally yesterday as demand for banks’ shares drove the overall market to net capital gain of N26 billion.

    Benchmark indices at the Nigerian Exchange (NGX) indicated average return of 0.05 per cent, equivalent to net capital gain of N26 billion.

    The market performance was boosted by gain by Jaiz Bank Plc, which recorded nearly the highest allowable gain for the day. The maximum daily allowable price change for the Nigerian market is 10 per cent.

    The All Share Index (ASI)- the common value-based index that tracks all share prices at the NGX, rose to 100,067.77 points.

    Aggregate market value of all quoted equities also increased by N26 billion to close at N56.607 trillion.

    The market performance was driven by gains in many large-cap banks including Guaranty Trust Holding Company (GTCO), Zenith Bank and United Bank for Africa (UBA).

    There were 22 gainers to 23 losers. Cornerstone Insurance recorded the highest gain of 10 per cent to close at N2.09 per share. Jaiz Bank followed with a gain of 9.95 per cent to close at N2.21. Coronation Insurance rose by 9.59 per cent to close at 80 kobo per share.

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    Fidson Healthcare appreciated by 9.26 per cent to close at N14.75 while Guinea Insurance rose by 8.82 per cent to close at 37 kobo per share.

    On the negative side, RT Briscoe Nigeria led with a loss of 9.86 per cent to close at 64 kobo per share. Cutix followed with a decline of 6.82 per cent to close at N4.10. C & I Leasing declined by 6.25 per cent to close at N3 per share. Prestige Assurance dropped by5.56 per cent to close at 51 kobo while CWG lost 5.33 per cent to close at N8 per share.

    However, the momentum of activities slowed down as turnover dropped by 33.11 per cent to 365.642 million shares valued at N4.116 billion in 8,665 deals. Universal Insurance topped the activity chart with 61.525 million shares valued at N24.359 million. AIICO Insurance followed with 31.723 million shares worth N32.509 million. UBA placed third with 25.855 million shares valued at N581.911 million. United Capital recorded 25.266 million shares valued at N711.308 million while NEM Insurance saw exchange of 23.259 million shares worth N197.683 million.

  • DBN named as Africa Social Impact Summit partner

    DBN named as Africa Social Impact Summit partner

    Sterling One Foundation, co-conveners of the Africa Social Impact Summit are pleased to announce the Development Bank of Nigeria (DBN) as one of its partners for the third edition of the Africa Social Impact Summit to be held from July 25 – 26, 2024 in Lagos, Nigeria.

    With this partnership, DBN joins an impressive list of partners, including private-sector organizations, international development organizations, public-sector bodies, and diplomatic organizations.

    Established in 2014, the Development Bank of Nigeria is a wholesale finance institution that focuses on addressing the financing challenges facing Micro, Small, and Medium Scale Enterprises (MSMEs) in Nigeria through the provision of financing and partial credit guarantees to eligible financial intermediaries.

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    Now in its sixth year of operation, DBN has disbursed loans to millions of MSMEs and supported many others through initiatives such as the Entrepreneurship World Cup, Eco Innovation Challenge, DBN capacity building initiative and many more. By end of 2023, the institution lent ₦ N787.47 billion to over 494,819 MSMEs, 356,451 of which were women-owned.

    Speaking on what necessitated this, Managing Director and CEO of DBN, Dr. Tony Okpanachi explained that the DBN has been a part of the Africa Social Impact Summit right from inception, with its Chief Economist as one of its panellists, because it sees value in the Summit’s drive for increased impact investments to scale sustainable solutions.

    “We are constantly looking to reach more enterprises building impactful solutions that address Nigeria’s challenges and this Summit presents a good opportunity to engage them and offer them ways to scale and grow,” he said.

    Providing further insight into the partnership, Mrs. Olapeju Ibekwe, CEO, Sterling One Foundation expressed delight at having the Development Bank of Nigeria onboard, stating that the impact of their work and the insights they have from serving Nigeria’s vibrant MSME space is worth learning from. She also hinted at the opportunity this partnership offers to Summit attendees looking to access credit for the impact-focused solutions they are building.

  • Moniepoint harps on importance of MSMEs

    Moniepoint harps on importance of MSMEs

    Managing Director, Moniepoint Microfinance Bank (Moniepoint MFB), Babatunde Olofin has underscored the importance of micro, small and medium enterprises as enablers of diverse economic growth.

    Olofin said MSMEs can lead the charge toward a sustainable and prosperous future with proper support from governments, financial institutions and consumers.

    He noted that from economic downturns to global crises, MSMEs have continued to demonstrate remarkable resilience and adaptability, in facilitating economic growth and development across borders.

    He outlined that, driven by the increased need to improve access to financial services to power sustained and inclusive progress, Moniepoint MFB remains committed to providing peerless and holistic support for MSMEs in order to boost their capacity to achieve the Sustainable Development Goals.

    He said the bank would continue to promote innovation, creativity, and sustainable business practices across the country.

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    According to him, Moniepoint is willing to partner with all stakeholders to create an environment that supports MSMEs in their efforts to invest, trade, and thrive in local and global markets, harnessing the attendant developmental benefits.

    “We recognize that MSMEs are the lifeblood of the Nigerian economy. Millions of people depend on them everyday for food, daily necessities, and sustenance. For businesses across Nigeria, we have just one promise – we’re always going to be here to make you happy.

    “As we celebrate this year’s World MSME Day, we must all acknowledge the hard work, dedication, and perseverance of MSMEs and the driving the charge to not only bolster economic stability but also foster sustainable development, helping to eradicate poverty and improve quality of life for Nigerians.”

    “On a day like this, we must renew our commitment to join hands – agencies of government, private sector operators, and all stakeholders – to continue supporting MSMEs through policies, funding, and capacity-building initiatives. By empowering MSMEs, we pave the way for a more sustainable, inclusive, and prosperous future for all, especially the coming generations,” Olofin said.

    He pointed out that Moniepoint MFB has been widely recognised for its innovative efforts at giving small businesses access to digital financial services, including the ability to accept payments, access working capital loans and manage their finances, that helps them to increase productivity, serve customers better, and ultimately to grow.

    According to him, in its bid to further champion the survival of small business Moniepoint MFB recently provided incentives to some business owners across Nigeria to ensure the lights are kept on. Gift vouchers ranging from three-month worth of inventory restock for a general retail services provider to two-month worth of sewing material to a tailor even as a food and drinks supplier received a fuel voucher in order to solve his logistics needs amongst other recipients.

    The beneficiaries who expressed their gratitude to Moniepoint noted that the gesture would go a long way to boost their productivity and ensure that they can better serve their local communities.

    “As the sector closest to local communities, MSMEs are essential for creating local jobs, empowering women, youth, persons with disabilities and other groups in vulnerable situations. Commemorating MSME Day is a recognition that this vital sector, who are these agents of innovation, growth, and sustainability, at the heart of our societies has tremendous potential to unlock critical pathways to accelerate SDG progress across the globe,” Olofin said.

    According to the United Nations, MSMEs account for over 90 per cent of businesses and 60 to 70 per cent of employment worldwide. These enterprises make up 50 per cent of global Gross Domestic Product (GDP). They contribute to the global economy and sustain livelihoods, particularly among the working poor, youth, women, and workers in vulnerable situations. It will be recalled that following a resolution adopted by the UN General Assembly in April 2017, 27th of June was designated as “Micro-, Small, and Medium-sized Enterprises Day” to raise awareness of the tremendous contributions of MSMEs to the achievement of the United Nations Sustainable Development Goals (SDGs).

  • Fed Govt offers 16.67%, 17.67% returns on new savings bonds

    Fed Govt offers 16.67%, 17.67% returns on new savings bonds

    The federal government yesterday opened application list for the first debt issuance in the second half with the launch of the July 2024 tranches of its monthly retail bond issuance, otherwise known as Federal Government of Nigeria Savings Bond (FGNSB).

    The Debt Management Office (DMO), which oversees government’s debt issuance and management, is offering two tranches of FGNSBs with two-year and three-year tenors. The July 2024 issuance is the 85th tranche of the savings bond, introduced in 2017.  

    The government is offering the two-year sovereign retail bond at a coupon of 16.668 per cent with maturity on July 10, 2026.

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    It is also simultaneously offering three-year FGNSBs at a coupon of 17.668 per cent with maturity on July 10, 2027.

    Minimum subscription to the pro-low savers bonds is N5,000 with maximum subscription per subscriber capped at N50 million. Application list for the bonds, which opened yesterday, closes on Friday July 5, 2024, with settlement date on Wednesday July 10, 2024.

    The FGNSBs are designed to have most of the features of the existing sovereign bond but with other benefits to the bondholder, including low amount of minimum subscription, listing on stock exchange and trading on the bonds.

    It will also be backed by the full faith of the Federal Government of Nigeria and is therefore deemed risk-free.

    The coupon is paid on a quarterly basis, providing investors with a regular stream of incomes. The coupon payment dates for the bonds being issued are October 10, January 10, April 10 and July 10.  

    The FGNSB was introduced in 2017 as a mass instrument for nationwide mobilization of savings and investments. Minimum subscription to the FGNSB is usually N5, 000 while the bond pays coupon or interest rate on a quarterly basis.

    Usually, the minimum subscription to the bonds, offered at N1,000 per unit, is N5,000 or five units and in multiples of N1,000 thereafter, subject to a maximum subscription of N50 million.

    GTI Securities Limited, one of the authorised distribution agents for the FGNSB, had explained that the savings bonds help to deepen national savings culture while providing opportunity to all Nigerians irrespective of income level to contribute to and benefit from national development.

    According to the stockbroking firm, FGNSB enables all Nigerians opportunity to participate in and benefit from the favourable returns available in the capital market.

    GTI Securities noted that the savings bonds are acceptable as collateral for loans by banks and can be sold for cash in the secondary market before maturity.

    The bonds are usually listed on the stock exchange for trading, thus providing liquidity for investors who want to exit before maturity.

    Savings bonds are good for savings towards retirement, marriage, school fees and house projects among other targets while assuring on its safety as the bonds are backed by the full faith and credit of the Federal Government of Nigeria.

  • Equities open second half with N21b loss

    Equities open second half with N21b loss

    Nigerian equities opened trading for the second half with a streak of profit-taking as investors looked ahead to the second quarter earnings season.

    Average return at the equities market dropped by 0.04 per cent, equivalent to net capital depreciation of N21 billion.

    The negative overall market position was largely due to selloffs on mid and large value stocks, most of which had recorded considerable gains in recent period. 

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    The All Share Index (ASI)- the value-based common index that tracks all share prices at the Nigerian Exchange (NGX), dropped from its opening index of 100,057.49 points to close at 100,020.83 points.

    Aggregate market value of all quoted equities declined from its opening value of N56.601 trillion to close at N56.581 trillion.

    There were 28 losers to 20 gainers. E-Tranzact International led the losers with a drop of 10 per cent to close at N4.50 per share. Fidson Healthcare followed with a decline of 9.70 per cent to close at N13.50. Cornerstone Insurance dropped by 9.52 per cent to close at N1.90 per share. Lasaco Assurance depreciated by 9.41 per cent to close at N2.31 while UPDC Real Estate Investment Trust dipped by 8.26 per cent to close at N5 per share.

    On the positive side, Linkage Assurance recorded the highest gain of 10 per cent to close at N1.10 per share. Africa Prudential followed with a gain of 9.76 per cent to close at N9. Unity Bank rose by 9.74 per cent to close at N1.69 per share. Coronation Insurance increased by 8.96 per cent to close at 73 kobo while Sovereign Trust Insurance gained 8.89 per cent to close at 49 kobo per share.

    The momentum of activities slowed down considerably as total turnover dropped by 46.11 per cent to 274.683 million shares valued at N3.713 billion in 10,112 deals. United Capital led the activity chart with 26.639 million shares worth N737.255 million. Linkage Assurance followed with 23.913 million shares valued at N26.302 million. AIICO Insurance placed third with 14.214 million shares valued at N14.316 million. CWG recorded 11.448 million shares worth N89.398 million while Universal Insurance saw exchange of 11.120 million shares worth N4.039 million.

    Most analysts expected the market sentiment to be shaped by the second quarter earnings of quoted companies, and the direction of yields at the fixed-income market.

    Analysts at United Capital Plc said the market would be mixed as investors explore opportunistic investment strategy.

    “Thus, we anticipate cherry picking of fundamentally sound stocks to persist in the week ahead. Similarly, market activities will increase due to ongoing banks recapitalisation, second quarter filing, and envisaged corporate actions in the weeks ahead.

    “Conversely, elevated interest rates in the fixed income market are expected to continue to negatively impact the equities market in the week as investors continue to take advantage of high interest rates in the fixed income space.

    “Overall, fund managers and investors should continue to adopt an opportunistic investment strategy to take advantage of opportunities the market presents at each given time,” United Capital stated

  • Lufthansa, Royal Air Maroc renew NAHCO’s deals

    Lufthansa, Royal Air Maroc renew NAHCO’s deals

    Two of world’s leading airlines, Lufthansa and Royal Air Maroc, have renewed their ground handling contracts with the Nigerian Aviation Handling Company (NAHCO) Plc, West Africa’s largest ground handling service provider.

    The contracts, which will run for five years, will see NAHCO providing ground handling services to the two global airlines in Nigeria.

    The contract with Lufthansa, a leading European carrier, will run from May 01, 2024, through April 30, 2029.

    The contract with Royal Air Maroc is a comprehensive one; for both Lagos and Abuja destinations. The Royal Air Maroc – LOS will run for five years from May 01, 2024, through April 30, 2029. For the Abuja contract, a new location for the Airline, the contract runs from May 01, 2024, through April 30, 2029 as well.

    Group Executive Director, Commercial and Business Development, Nigerian Aviation Handling Company (NAHCO) Plc, Prince Saheed Lasisi, said the new contracts were coming at a time when NAHCO is massively increasing its capacity with the recent purchase of new ground support equipment.

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    “Lufthansa and Royal Air Maroc have made the right decision in staying with NAHCO, evidently the largest handling provider in the country. We just took delivery of billions of naira worth of equipment which would be deployed to service these valued partners. It is a thrilling development,” Lasisi said.

    Group Managing Director, Nigerian Aviation Handling Company (NAHCO) Plc, Mr. Indranil Gupta said the new contracts were great partnerships at work.

    He assured the airlines of exceptional service delivery noting that NAHCO has been doing a lot in the area of manpower development and equipment purchase in order to be able to give incomparable service.

    “We are always happy to serve clients who depend on us to further grow their businesses. We will always go the extra mile to ensure that we support them to keep their promises to their clients to offer the best service,” Gupta said.

    He pointed out that the company recently announced the deployment of several new equipment to some of its stations. The deployed equipment comprised several units of pushbacks, ground power units, aircraft cooling units, aircraft air start units, tractors, reach trucks, forklifts, cargo and baggage carts, and pallet dollies.

    According to him, the deployment would be the first in a series of massive equipment replacement embarked upon by the company which has set for itself an ambitious target of excess ground support equipment in two years.