The Nation Newspaper

Category: Equities

  • Royal Exchange gets N1.56b new equity capital from shareholders

    Royal Exchange gets N1.56b new equity capital from shareholders

    • Rights issue records 75.8% subscription

    Royal Exchange Plc has raised N1.56 billion new equity funds from its shareholders in a major boost to the operations of the insurance holding group.

    The funds however represented three-quarters of the entire N2.06 billion sought by the group under the rights issue.

    Royal Exchange, which was pursuing a voluntary recapitalisation of its businesses, sought to raise N2.06 billion in new equity funds from existing shareholders through the issuance of 4.116 billion ordinary shares of 50 kobo each at 50 kobo per share.

    The rights issue was pre-allotted on the basis of four new ordinary shares of 50 kobo each for every five ordinary shares held as at the close of business on Monday, March 06, 2023.

    Regulatory filing showed that a total of 3.12 billion ordinary shares of 50 kobo each were picked up by shareholders at 50 kobo per share, representing a subscription level of 75.83 per cent.

    The newly issued shares have been listed at the Nigerian Exchange (NGX), marking the end of the rights issuing process.

    Read Also: Royal Exchange General Insurance makes key appointments

    With the listing of the additional shares from the rights issue, the total issued and fully paid up shares of Royal Exchange increased from 5.145 billion to 8.267 billion  ordinary shares of 50 kobo each.

    An investment fund set up by the German government recently acquired 39.25 per cent in Royal Exchange General Insurance Company (REGIC) Limited, a subsidiary of Royal Exchange. The investment fund- InsuResilience Investment Fund (IIF) was set up on behalf of German government by KfW and managed by Swiss-based Impact Investment Manager BlueOrchard Finance Limited.

    The proceeds of the acquisition would help REGIC to spur growth by increasing its risk capital and supporting its underwriting capacity in agriculture, thus extending its outreach to low income farmers.

    Based in Luxembourg, IIF was set up by KfW, the German Development Bank, on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ). The overall objective of IIF is to contribute to adaptation to climate change by improving access to and the use of insurance in developing countries.

  • Equities open with N304b loss

    Equities open with N304b loss

    Nigerian equities opened this week with a continuation of bearish sentiment as investors sought to lock in gains into fixed income securities.

    Benchmark indices at the Nigerian Exchange (NGX) indicated average decline of 0.53 per cent, equivalent to net capital depreciation of N304 billion.

    The All Share Index (ASI)- the value-based common index that tracks all share prices at the NGX,  dropped from its opening index of 102,314.56 points to close at 101,777.12 points. Aggregate market capitalisation of quoted  equities declined from its opening value of N57.865 trillion to close at N57.561 trillion.

    The decline was driven by widespread selloffs across the sectors, especially within large-cap banking stocks such as Guaranty Trust Holding Company (GTCO), Zenith Bank, United Bank for Africa (UBA) and Fidelity Bank.

    There were 10 gainers to 32 losers. Fidelity Bank led the losers’ chart with 10 per cent to close at N9.00 per share. Jaiz Bank followed with a decline of 9.69 per cent to close at N2.05. RT Briscoe declined by 8.47 per cent to close at 54 kobo per share. GTCO lost 7.73 per cent to close at N38.20 while Universal Insurance depreciated by 7.69 per cent to close at 36 kobo per share.

    Read Also: Analysts cautious about equities’ outlook

    On the positive side,  UPDC emerged the highest price gainer of 10 per cent to close at N1.43 per share. Morison Industries followed with a gain of 9.77 per cent to close at N2.81. NEM Insurance up by 8.90 per cent to close at N10.40 per share.

    DAAR Communication rose by 7.69 per cent to close at 70 kobo while Oando appreciated by 6.77 per cent to close at N13.40 per share.The total volume traded decreased by 55.50 per cent to 326.640 million shares valued at N7.169 billion in 10,777 deals. UBA led the activity chart with 42.254 million shares worth N1.109 billion. Transcorp followed with account of 27.562 million shares valued at N396.168 million. Access Holdings traded 24.62 million shares valued at N465.806 million. Oando traded 22.662 million shares worth N307.711 million, while Fidelity Bank traded 17.534 million shares worth N161.258 million.

    Analysts said the downtrend was due to selloffs occasioned by realignment of portfolios towards high-yielding fixed income securities.

    “We expect bearish sentiments amongst investors to persist in the local equities market given the attractive returns offered in the fixed-income market. The impact of the high yields in the fixed-income market will continue to drive sell-offs as investors switch their asset classes to less risky assets,” United Capital stated.

  • LAPO Founding Board Chair gets LOWLA Lifetime award

    LAPO Founding Board Chair gets LOWLA Lifetime award

    Mrs. Osar-Emokpae Enoma Imose recently received the esteemed Lifetime Achievement Award at the 12th LAPO Outstanding Women Leadership Award (LOWLA) ceremony in Benin, Edo State.

    This recognition was conferred upon her by the Lift Above Poverty Organization (LAPO) in honour of her exceptional contributions. Mrs. Osar-Emokpae holds the notable position of being the inaugural Board Chair of LAPO NGO, a distinction that undoubtedly played a pivotal role in her receipt of the distinguished Lifetime Award.

    Mrs. Osar-Emokpae Enoma Imose, a distinguished linguist, is an alumna of the Haggai Institute in Hawaii, USA, in addition to having pursued academic endeavours at the University of Oxford and Cranfield University in the United Kingdom. Her educational journey also includes studies at the University of Benin and the University of Lagos in Nigeria.

    Read Also: Meet Anikulapo’s star and Hubert Ogunde’s son, Owobo

    She is an alumna of APCON (now ARCON), graduating as the best student in Advertising Strategy in the Advertising Academy. Seeking to further develop her expertise, she underwent specialized training in Mobile Advertising in South Africa. Subsequently, she assumed the inaugural CEO position at Commutanet Ltd in Lagos. During her tenure, she spearheaded the introduction of Wrap Around Mobile Advertising, a pioneering concept within the Nigerian advertising industry.

  • PAPSS enters North Africa as BCT Tunisia joins membership list

    PAPSS enters North Africa as BCT Tunisia joins membership list

    The Pan African Payment and Settlement System (PAPSS) has announced the entry of Banque Centrale de Tunisie (BCT) into its network as its thirteenth Central Bank member, further strengthening its commitment to promoting seamless cross-border payment services and enhancing financial integration across the African continent.

    PAPSS, developed by African Export-Import Bank (Afreximbank) in collaboration with the African Union and the AfCFTA Secretariat, facilitates real-time settlement of intra-African trade and payments, in African currencies, across the continent. By uniting central banks from across Africa, PAPSS seeks to address the existing challenges faced by African businesses and individuals in accessing efficient and cost-effective cross-border payment services.

    Banque Centrale de Tunisie’s membership in PAPSS signifies the bank’s determination to foster economic growth and development within the country and the African region. This value-adding collaboration will allow Tunisian businesses and citizens to benefit from enhanced payment efficiency, reduced transaction costs, and more opportunities to trade and pay with other African countries.

    Read Also: CBN tightens noose around PAPSS e-payment gateway

    Commenting on this landmark achievement, H.E Mr. Marouane El Abassi, Governor of Banque Centrale de Tunisie said that the inclusion of BCT in the PAPSS system demonstrates the country’s commitment to regional integration within the African continent at an economic and financial level. He further stated that this initiative supports the Government’s efforts, led by the Ministry of Commerce, to integrate Tunisia into the AfCFTA. In 2022, BCT also joined the inter-Arab payment and settlement System (BUNA), in continuation of its commitment to the country’s strategic priorities.

    Additionally, Mr. El Abassi called upon banks and the Post Office to join this efficient and cost-effective alternative mechanism to better support Tunisian economic operators in their transactions across the African continent. He emphasized the importance of opening new commercial opportunities with Africa and expanding Tunisia’s presence in this promising market.

    Also commenting on the signing, Mrs. Ben Rejeb, Minister of Trade & Export Development emphasized the significance of joining a platform that can facilitate integration into the formal sector, enhance intra-African exports, and reduce transaction costs and processing times.

    “We are delighted to welcome Banque Centrale de Tunisie into the PAPSS network as the first central bank to join the system in the North Africa region” said Dr. George Elombi, Executive Vice President of Afreximbank.”

  • World Bank overhauls guarantee operations for efficiency

    World Bank overhauls guarantee operations for efficiency

    The world is in the midst of intertwined crises, which are threatening to turn back progress on economic and sustainable development. It’s clear that things must be done differently to change course.

    In its continued efforts to work better and more efficiently with member countries and the private sector community, the World Bank Group recently announced a major overhaul of its guarantee business that will deliver simplicity, improved access, and faster execution through a new, convenient marketplace.

    These loan and investment guarantees can be powerful catalysts to attract private-sector investments and commercial financing, fueling economic growth and improved public services in developing countries.

    Read Also: World Bank projects 3.4% growth for African economies

    Currently the World Bank, International Finance Corporation (IFC), and the Multilateral Investment Guarantee Agency (MIGA) offer some 20 guarantee solutions. But they have different processes, rules, and standards. This will change on July 1, with the launch of a new one-stop guarantee platform that will bring together guarantee experts and products from across the organization. The guarantee products will be housed at MIGA, making it easier for clients to do business with the World Bank Group.

    We sat down with MIGA’s Executive Vice President Hiroshi Matano to discuss the new guarantee platform.

    Right now, the guarantee solutions are scattered across our institutions. They all follow different processes and our clients have to talk to each institution separately. This slows things down, impacting efficiency. We wanted to better streamline our offering to maximize the limited capital available for impactful development in emerging markets and developing economies.

  • NGX sanctions Julius Berger over ‘inappropriate insider dealing’

    NGX sanctions Julius Berger over ‘inappropriate insider dealing’

    Authorities at the Nigerian Exchange (NGX) have sanctioned Julius Berger Nigeria (JBN) Plc for engaging in inappropriate insider dealing in shares.

    A document obtained by The Nation showed that JBN, Nigeria’s leading construction company, was sanctioned for “insider dealing during closed period”. Incorporated in 1970, Julius Berger Nigeria became a publicly quoted company in 1991 and has more than 10,000 shareholders.

    NGX Regulatory Company (NGX RegCo), the self regulatory organisation (SRO) that regulates activities at the NGX, stated that JBN breached certain provisions of the listing rules and was thus sanctioned accordingly.

    According to NGX RegCo, JBN violated provisions on “closed period”, in breach of the construction company’s commitment to adhere to listing rules and standards.

    The NGX had tightened its rules and regulations to checkmate boardroom intrigues and block information arbitrage that tend to confer advantages on companies’ directors. The amendments expanded the scope and authority of corporate financial reporting while eliminating gaps that allowed companies to sidetrack relevant rules in stage-managing corporate compliance.

    The enhanced framework provided clarity and greater disclosures on directors’ trading in shares, corporate liability for accuracy and compliance of financial statement, dissuade bogus dividend payment and other sundry boardroom’s maneuverings that tend to favour insiders.

    The amendments came on the heels of noticeable increase in violations of rules on ‘closed period’, a period when directors are banned from trading in the shares of their companies.

    Rule 17.17 of the NGX disallows insiders and their connected persons from trading in the shares or bonds of their companies during the ‘closed period’ or any period during which trading is restricted. This period is mostly at a period of sensitive material information, like prior knowledge of financials, dividends or major corporate changes, which places directors and other insiders at advantage above other general and retail investors.

    Read Also: NGX, CIBN partner on banks’ recapitalisation

    A review of the disclosure violations at the stock market had shown that all violations in 2021 were related to violation of Rule 17.17 on ‘closed period’.

    Under the amendments, in addition to the provisions of relevant accounting standards, laws, rules and requirements regarding preparation of financial statements, companies are now required to include several specific declarations on securities transactions by directors, changes in shareholding structure, self-assessment on compliance with corporate governance standards and internal code for directors on securities transactions among others.

    According to the rules, in relation to securities transactions by directors, a company shall disclose in its quarterly financial statements, full year audited financial statements, and in corporate governance report contained in its annual report whether the company has adopted a code of conduct regarding securities transactions by its directors on terms no less exacting than the required standard set out by the market.

    The company is also required to disclose, having made specific enquiry of all directors, whether its directors have complied with, or whether there has been any non-compliance with, the required standard set out in the Exchange’s rules and in code of conduct regarding securities transactions by directors.

  • Capital Hotels lists shares on NASD OTC Securities Exchange

    Capital Hotels lists shares on NASD OTC Securities Exchange

    Capital Hotels Plc has listed its entire share capital on the NASD OTC Securities Exchange, opening up new window for secondary market transactions.

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

    A total of 3.16 billion ordinary shares of 50 kobo each of capital Hotels Plc valued at N15.46 billion were listed at a price of N2.40 per share on the NASD.

    Capital Hotels was incorporated in January 1981 as a private limited liability company and became a public liability company in May 1986. Capital Hotels is the owner of Sheraton Abuja Hotel, which commenced business in January 1990.

    The entire issued share capital of Capital Hotels was delisted from the Nigerian Exchange (NGX) in November 2023 after the new core investor acquired minority stakes.

    22 Hospitality Ltd had acquired 66.13 per cent controlling equity stake in Capital Hotels, which owns Abuja Continental Hotel, formerly known as Abuja Sheraton Hotel. NIPCO Plc, an integrated downstream company that acquired former Mobil Oil Nigeria Plc, is the sole owner of 22 Hospitality Limited.

    Capital Hotels is an associated company of Ikeja Hotel, another publicly quoted company that controls a chain of hotels directly and through other subsidiaries and affiliates including Tourist Company of Nigeria (TCN) Plc and Capital Hotels Plc. Ikeja Hotel owns Sheraton Hotel, Ikeja, Lagos. TCN owns Federal Palace Hotel, Lagos while Capital Hotels owns Abuja Sheraton Hotel. The Ibru family owns the single largest individual shareholding in Ikeja Hotel.

    Read Also: Courteville, Capital Hotels delist shares from NGX

    Other companies on NASD included Great Nigeria Insurance (GNI); Dufil Prima Foods Plc, the manufacturer of Indomie Noodles; Friesland Campina Wamco Nigeria Plc, manufacturer of Peak Milk brand; and Fan Milk Plc, popular manufacturer of Fan Yoghurts, NIPCO Plc, Air Liquide Nigeria Plc Industrial & General Insurance Plc, Central Securities Clearing System Plc, the clearing and depository arm of the Nigerian Stock Exchange; Nigeria Mortgage Refinance Company, Jaiz Bank Plc, the Islamic bank; Acorn Petroleum Plc, Arm Life Plc, Afriland Properties Plc, BGL Plc, Consolidated Breweries Plc and Food Concepts Plc.

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

  • Analysts cautious about equities’ outlook

    Analysts cautious about equities’ outlook

    Investors should take a cautionary approach and review their equities portfolios, to hedge against potential downtrend.

    Analysts at FSDH, in their latest report, said they preferred a “continued and steady reduction in equity exposures”.

    “Our expectation of bearish outcomes for Nigerian equities is hinged on overpriced valuation, attractive interest rates, and limited foreign  portfolio investors participation,” FSDH stated.

    Analysts however noted that a potentially impressive earnings performance in first quarter and first half of 2024 could sustain the rally at the equities market.

    FSDH said the banking sector recapitalization move could also trigger bearish outcomes for the banking sector, although to a lesser extent.

    Read Also: Emefiele and company

    Analysts said the silver lining for banking stocks is the 24-month compliance period provided by the apex bank.

    “As a result, we do not expect this to be a major consideration in the next months but expect investors to remain cautious. Hence, we advise investors to continue to monitor developments on this front as different banks will explore several options, including a combination of mergers, acquisitions, right issues, public offers, and private placements to raise their capital shortfall, all with differing impacts on the level of dilution for existing shareholders,” FSDH stated.

    In March, the Nigerian equities market rebounded as the benchmark All Share Index (ASI) of the Nigerian Exchange (NGX) rose 4.6 per cent during the month to settle at 104,562.06 points, 1.1ppts lower than the all-time high for the index. Despite a slow start to the month, optimism around the 2023 earnings release revived investor sentiments.

    However, the core driver of the rally was better-than-expected foreign portfolio investor interest in Nigeria equities reflected improved sentiments around Nigeria’s foreign exchange market that provided an attractive entry point for foreign investors, particularly as prices were down a decent percentage from their peak. In addition, corporate actions such as the listing of Transcorp Power further drove the gains in the market. Transcorp  Power was listed by introduction on the NGX at N240 per share, gaining 57 per cent during the month. A combination of these factors drove a 10-day rally between 4-March and 15-March. Following March’s gains, year-to-date return on the benchmark rose to 39.8 per cent.

    Breaking down performance across sectors, the banking sector was the standout performer as the sector’s benchmark index gained 21.2 per cent in March to close at 1,029.63 points. The bullish performance of the sector is reflective of foreign investors’ buying interest in the banks.

  • NGX, CIBN partner on banks’ recapitalisation

    NGX, CIBN partner on banks’ recapitalisation

    The Nigerian Exchange (NGX) and the Chartered Institute of Bankers of Nigeria (CIBN) have entered into a strategic partnership towards ensuring the success of the ongoing recapitalisation of the banking sector.

    Preisdent, Chartered Institute of Bankers of Nigeria (CIBN), Dr Ken Opara, said the collaboration between the two organisations was aimed at building the capacity and preparing the banks for capital raising.

    According to him, both CIBN and NGX are collaborating on implementation of several initiatives to support the banking recapitalisation.

    :In this wise, the parties agreed on a number of initiatives including a joint visit to the Governor of Central Bank, Mr. Olayemi Cardoso which took place on Wednesday, March 20, 2024, to provide some insights on the subject. Other initiatives under this collaboration include providing series of needed sensitisation, support and platforms for banks recapitalisation exercise,” Opara said.

    Speaking at the annual general meeting of the institute in Lagos, Opara outlined several achievements and strategic initiatives taken under his two-year administration.

    Read Also: Emefiele and company

    He noted that for the first time, the CIBN recorded a historic net operating surplus of N1.37 billion for 2023, marking a significant growth from the  N837.94 million recorded in 2022.

    “I am particularly delighted that our institute continued to wax stronger financially, notwithstanding the economic downturns and headwinds in the year 2023.

    “It is on record that our institute for the first time crossed the one billion Naira mark by achieving a Net Operating Surplus of N1.371 billion in 2023 when compared with N837.943 million achieved in 2022, representing a growth of 63.60 per cent.

    “Similarly, total revenue grew from N2.065 billion recorded in 2022 to N2.782 billion in 2023, representing 34.72 per cent growth, while total assets grew from N7.821 billion in 2022 to N9.119 billion in 2023.

    “The cost-to-income ratio for the year ended December 31, 2023, stood at 50.72 per cent, down from 59.41 per cent in the corresponding period in 2022. This ratio is way below the approved Governing Council threshold of 61 per cent for the 2023 financial year.

    “I am persuaded that with prudent and efficient management of resources, as well as diligent execution of our strategic plan, our institute will sustain this northward trajectory,” Opara said.

    Opara, who took over leadership in May 2022, also announced a planned road show to flag off the collaboration with Pan-African Payment and Settlement System on April 25 in Lagos to promote exportation.

    He explained how his administration, through teamwork, left indelible marks in the banking industry in an era characterised by disruptions, volatility in the economy, and other turbulence.

    Opara, also the Chairman of Council, CIBN, explained youth engagement initiatives aimed at checkmating mass migration of the nation’s young professionals out of the country to other advanced economies.

    He thanked CIBN members, stakeholders, family and friends for their support that ensured the success of his tenure.

    After a 72-hour electronic voting, Mrs Caroline Anyanwu, Chairperson of the CIBN Election Committee, announced the election of immediate past First Vice President of the institute, Prof Pius Olanrewaju, as the president-elect.

    Olarenwaju, in his acceptance speech, described the outgoing president as “a great leader” who had positioned the institute on a path for growth and greatness.

    He thanked the leadership and members of the institute while promising to build on the legacies of Opara, his predecessor, in office.

    He promised to unveil his agenda during his inauguration at an investiture programme scheduled for May.

  • Moniepoint Microfinance Bank launches USSD service

    Moniepoint Microfinance Bank launches USSD service

    Moniepoint Microfinance Bank has launched its Unstructured Supplementary Service Data (USSD) service, enhancing convenience and security for its customers.

    Managing Director,  Moniepoint Microfinance Bank, Mr Babatunde Olofin, explained that the code *5573#, offers a fast, secure, and user-friendly platform for consumers to conduct their banking activities with ease, from any mobile device without the need for an internet connection.

    According to him,  the new code will increase convenience and accessibility whilst showcasing the bank’s commitment to financial inclusion and enhancing safety and security across the digital payment ecosystem.

    He outlined that the USSD banking suite includes a variety of services such as funds transfer,airtime and data purchase, account balance and details inquiry, PIN management, and account security measures like blocking and unblocking access for oneself or others. He noted that the introduction of *5573# was a security measure against unauthorised access, safeguarding customer funds in case of loss or theft of mobile phones, ATM Cards, or hardware tokens, and in situations where account details may be compromised.

    Read Also: Moniepoint, Data Protection Commission seek data mgt

    “This code empowers customers to secure their accounts promptly from any mobile device, without needing to contact the bank, especially in cases of suspected fraud.

    “At Moniepoint MFB, our top priorities are delivering exceptional customer service through digital innovation and ensuring the highest security standards,” Olofin said.

    He said the new USSD service provides the convenience of mobile banking with an added layer of security that gives customers control over protecting their accounts, even by using a third-party mobile device.

    “We have always been guided by our mission to create a society where everyone experiences financial happiness, and in these times, what that looks like for us is increasingly empowering consumers to take charge over their bank accounts, even as we curate a seamless and secure banking experience.

    In addition, we have always spoken about our commitment in supporting the central bank’s financial inclusion agenda, with this feature, customers, especially the least digital-savvy ones, irrespective of their location have now been eminently positioned to carry out a wide range of transactions effortlessly,” Olofin said.