The Nation Newspaper

Category: Equities

  • MTN Nigeria Communications hits N1.12tr gain

    MTN Nigeria Communications Plc continued its rally to the fifth consecutive trading session, gaining N267.6 billion yesterday to increase its total gain since listing to N1.12 trillion. MTN Nigeria again recorded the maximum daily allowable price gain for the fifth consecutive trading session, rising by N13.15 to close at N144.85 per share.

    The closing market price yesterday pushed MTN Nigeria’s market value to N2.948 trillion, N1.12 billion capital gain on the telco’s entry listing value of N1.83 trillion. MTN Nigeria had last Thursday listed, by way of introduction, 20.35 billion ordinary shares at N90 per share to emerge the second most capitalised company at the Nigerian stock market.

    MTN Nigeria also maintained its status as the most active stock for the second consecutive trading session, as shares of the telco became increasingly available. MTN Nigeria led the activities chart with a turnover of 93.72 million shares valued at N13.58 billion in 464 deals. Total turnover at the equities market stood at 294.4 million shares valued at N17.5 billion. Zenith Bank was the second most active stock with 29.47 million shares worth N566.55 million while United Bank for Africa (UBA) placed third with 22.37 million shares valued at N129.56 million.

    With 27 decliners to 12 gainers, the positive overall market position was driven by gains recorded by the duo of Dangote Cement and MTN Nigeria. Dangote Cement, Nigeria’s most capitalised stock, rose by N18 to close at N203.

    REad also: MTN Listing: Equities rally N2.68tr in 4 days

    The All Share Index (ASI)- the main index that tracks share prices at the Nigerian Stock Exchange (NSE), increased by 3.07 per cent to close at 31,145.15 points as against its opening index of 30,218.14 points. Aggregate market value of all quoted equities rose from its opening value of N13.310 trillion to close at N13.718 trillion.

    With this, the market moved closer to turning positive with average year-to-date return of -0.9 per cent.

    With more than two losers for every gainer, all sectoral indices closed negative with the exception of the NSE Industrial Goods Index, which appreciated by 1.1 per cent. The NSE Consumer Goods Index declined by 3.6 per cent. The NSE Banking Index dropped by 2.7 per cent. The NSE Insurance Index dipped by 0.5 per cent while the NSE Oil & Gas Index slipped by 0.3 per cent.

    Other top gainers included GlaxoSmithKline Consumer Nigeria, which rose by 45 kobo to close at N8.95; Vitafoam Nigeria rose by 38 kobo to close at N4.25 while Cadbury Nigeria and UAC of Nigeria added 15 kobo each to close at N10.50 and N6.60 respectively.

    On the downside, Nestle Nigeria led the losers with a loss of N110 to close at N1,320. Ecobank Transnational Incorporated declined by 85 kobo to close at N9.15. Guaranty Trust Bank dropped by 80 kobo to close at N30.50. Zenith Bank lost 50 kobo to close at N19 while Nigerian Breweries dropped by 45 kobo to close at N61.70 per share.

    “Despite the weak investor sentiment, we expect the rally in MTN Nigeria and renewed interest in Dangote Cement to continue to buoy market performance in the near term,” Afrinvest Securities stated.

  • Forte Oil declares N1.5b interim dividend

    The board of directors of Forte Oil Plc has earmarked about N1.5 billion as interim cash dividend to shareholders of the indigenous oil and gas group.

    In a circular yesterday, the board indicated that shareholders on the register of the company as at the close of business on Monday June 3, 2019 will receive interim dividend per share of N1.15. The interim dividend will be paid through e-dividend on June 10, 2019.

    The interim dividend might be from the proceeds of the recent divestments by the oil and gas group.

    Forte Oil recently indicated that it had entered into share sale and purchase agreements to sell its power and upstream businesses in continuation of complicated divestment programme involving the major shareholder and chairman of board of director, Mr. Femi Otedola.

    In a regulatory filing at the Nigerian Stock Exchange (NSE), Forte Oil stated that it had entered into share sale and purchase agreement with Calvados Global Services Limited for the sale of its power distribution company, Amperion Power Distribution Company Limited.

    Forte Oil had also entered into share sale and purchase agreement with Gbonka Oil and Gas Limited for the divestment and sale of its shares in Forte Upstream Services Limited.

    The two new agreements came as the indigenous energy group confirmed that it had concluded divestment of its shares in AP Oil and Gas Ghana Limited to Cobalt International Services (Ghana) Limited.

    Forte Upstream Services Limited, AP Oil and Gas Ghana Limited are wholly-owned subsidiaries of Forte Oil while the indigenous energy group holds majority equity stake of 57 per cent in Amperion Power Distribution Company Limited. Amperion Power Distribution Company Limited holds the majority equity stake in the lucrative Geregu Power Plc.

    General Counsel, Forte Oil, Mr. Akinleye Olagbende, stated that the two new share purchase and sale agreements were however subject to the fulfilment of relevant conditions as specified in the respective agreement, including obtaining relevant contractual and regulatory approvals.

    In February 2019, shareholders of Forte Oil had approved major resolutions authorising the sale of the company’s subsidiaries to Mr Femi Otedola, the majority core investor in the company. Otedola holds 75 per cent majority equity stake in Forte Oil.

    At the Extra Ordinary General Meeting (EGM) in Lagos, shareholders approved a resolution authorising the company to enter into discussions with Otedola or any company representing him in connection with assets to be divested.

    In the recent regulatory filing, the company was however silent on the relationship between the bidding companies and Otedola. Global search for identities of both Calvados Global Services Limited and Gbonka Oil and Gas Limited did not provide any links to the companies. A market source said the two companies might be newly incorporated firms or special purpose vehicles formed for the purpose of the acquisitions.

    Otedola had also in December 2018 announced that he planned to sell his 75 per cent majority equity stake in Forte Oil to Prudent Energy. The December 2018 announcement came after shareholders had in May 2018 approved a restructuring plan pushed by Otedola-led board of directors aimed at restructuring the group’s operations by divesting from its upstream services and power generating businesses and the sale of its downstream business in Ghana.

  • Customers win N59m in Access Bank’s DiamondXtra promo

    Access Bank Plc yesterday doled out more than N59 million to its customers in continuation of the bank’s DiamondXtra savings campaign.

    A total of 1,016 customers won more than N59 million in the 2019 DiamondXtra season 11 first quarterly draw held yesterday in Lagos.

    Mrs Nnenna Chukwu was the star prize winner, winning N100, 000 per month for 20 years in the salary for life category. Others included Nwoko Chibuikem, Aliyu Umar and Adewale Adekoya among others.

    Chukwu who could not hide her excitement explained that she had opened DiamondXtra account a long time and was not expecting to win in the promo.

    She commended Access Bank for providing the opportunity for her to save and win at the same time, noting that the savings campaign would help to foster savings culture among Nigerians.

    Executive Director, Retail Banking, Access Bank Plc, Victor Etuokwu, said the DiamondXtra initiative was the bank’s little way of creating and adding value and meeting the needs of its customers.

    He said the bank is committed to rewarding its shareholders for their patronage adding that DiamondXtra is the best banking product in the country at the moment.

    “This is the 11th edition and the product has been rewarding Nigerians. It is something that we think it is important as every little thing you do help. There is no way a bank can add value to the economy if it does not do things like this, so the products of a bank must add value and DiamondXtra adds value,” Etuokwu said.

    According to him, over the 10 years, more than N5 billion has been given out as the bank continues to soar on the goodwill of its customers and their patronage.

    “We want every Nigerians to move to the DiamondXtra initiative so that they can partake in the goodies which the product brings. The only way companies remain profitable is by creating value so as long as we keep doing this, our customer base will increase and this initiative will not affect our bottom-line,” Etuokwu said.

    In his remarks, Head, Product Capability and Insights, Access Bank Plc, Rob Giles, said that DiamondXtra has positively impacted the bank’s depositor base as customers are more comfortable with having a DiamondXtra account rather than the normal savings account.

    “Our business is all about customers and our success is also the success of our customers. As our customers grow, we grow as well and so we have helped millions of people to save with DiamondXtra in the last 10 years and we are still doing that as regards this year which is the 11th edition and in addition to helping people save, they have been winning salary for life, education allowances for five years and senior citizen prizes aimed at helping some of our most senior citizens get additional value among others. So we have been creating magic moments for people and by doing that, it helps Access Bank because people want to continue to save with us and patronize Access Bank,” Giles said.

  • Shareholders threaten to sue NAICOM over recapitalisation

    Following upward review of minimum paid-up share capital of insurance companies by the National Insurance Commission (NAICOM), some shareholders have threatened to drag the regulator to court again.

    The shareholders who appeared visibly shaken and furious yesterday said they woke up to a rude shock of recapitalisation order of the regulator.

    They threatened to sue the commission again if it attempts to enforce the review on insurance companies, just as they did when they drag it to court on the Tier Based Solvency Recapitalisation policy.

    NAICOM on Monday gave a 13-month ultimatum to insurance companies recapitalise or lose their licences.

    Read also: NAICOM approves Casava as microinsurance firm

    The ultimatum, which became effective from Monday, raised the minimum paid-up share capital of a Life insurance company from N2 billion to N8 billion; Non-Life insurance from N3 billion to N10 billion and Composite insurance from N5 billion to N18 billion. Re-insurance companies were directed to raise their capital base from N10 billion to N20 billion.

    President, Independent Shareholders Association of Nigeria, Mr Sunny Nwosu condemned the actions of the commission.

    Nwosu said he was extremely sad to hear in the news yesterday morning that insurance companies should recapitalize to the huge capital required.

    “We went to court when they came up with the tier-based recapitaliastion and defeated them, only for them to come back with another plan,” Nwosu said.

    Comrade Lawrence Okusehin from Ibadan expressed fear over NAICOM’s decision.

     

  • MTN Listing: Equities rally N2.68tr in 4 days

    Nigerian equities recorded their highest daily gain in 2019 yesterday as the positive momentum that greeted the listing of MTN Nigeria Communications Plc drove the market to its fourth consecutive positive closing.

    Benchmark indices at the Nigerian Stock Exchange (NSE) indicated average gain of 2.88 per cent yesterday, equivalent to net capital gain of N372.1 billion. With this, total gain by the market since the listing of MTN Nigeria jumped to N2.68 trillion, including initial listing value of N1.83 trillion. MTN Nigeria, which was listed by way of introduction at N90 per share last Thursday, has been rising by the maximum allowable price change of 10 per cent since Thursday.

    Aggregate market value of all quoted equities on the NSE, which had opened last Thursday at N10.627 trillion, closed yesterday at N13.310 trillion. The All Share Index (ASI) rallied back to the 30,000 points to close yesterday at 30,218.14 points as against 28,286.08 points recorded as opening index last Thursday. The sustained rally has moderated the average year-to-date return to -3.86 per cent.

    Read also: MTN paid 275bn SIM infraction fine — NCC

    “Following sustained interest in MTN Nigeria, we expect the bullish run in the equities market to continue,” Afrinvest Securities stated.

    MTN Nigeria recorded the highest gain of N11.95 to close at N131.70 per share. The current market value increased MTN Nigeria’s market value to N2.68 trillion, N850 billion net capital gains on the telco’s entry value of N1.83 trillion on Thursday. Dangote Cement followed with a gain of N7 to close at N185. Forte Oil rose by N2.25 to close at N27.80 while Guaranty Trust Bank chalked up 90 kobo to close at N31.30 per share.

    The momentum of activities improved by 56.5 per cent to 335.60 million shares valued at N17.2 billion in 4,453 deals. MTN Nigeria was also the most active stock with a turnover of 110.7 million shares worth N14.58 billion.

    “We expect the rally in the equities market to persist in the short term, following sustained interest in MTN Nigeria shares,” Cordros Securities stated.

     

  • Consolidated Hallmark Insurance assures on dividends

    Consolidated Hallmark Insurance (CHI) Plc has assured shareholders that it would sustain regular dividend payment as shareholders approved payment of N162.6 million as dividends for the 2018 business year.

    Addressing shareholders at the annual general meeting yesterday in Lagos, Chairman, Consolidated Hallmark Insurance (CHI) Plc, Mr. Obinna Ekezie, said the company has been positioned to sustain regular dividend payment, noting that it has paid dividend for seven years out of its 11 years of operations.

    He said shareholders would receive a dividend per share of two kobo for the 2018 business year after the company posted net profit of N407.07 million during the year ended December 31, 2018.

    Managing Director, Consolidated Hallmark Insurance (CHI) Plc, Mr. Eddie Efekoha said the performance of the company in 2018 showed an improvement on the growth projections for the industry.

    He pointed out that the company’s gross premium rose by 20.85 per cent to all-time high of N6.865 billion while the company has further energized its retail and agency segments to grow new business into the group.

    According to him, CHI’s revenue diversification drive was a major factor that aided the sustained financial performance through the challenging market conditions of 2018, further reinforcing its role as a formidable player in the insurance industry.

    He outlined that due to management’s unrelenting efforts to ensure that the company is run efficiently, the company recorded a reduction in underwriting expense and operating expense ratios in 2018, closing at 14.57 per cent and 18.6 per cent in 2018 as against 24 per cent and 26 per cent recorded respectively in 2017.

     

  • IST reaffirms commitment to capital market growth

    The Investments and Securities Tribunal (IST) has reaffirmed its commitment to the development of the Nigerian capital market through efficient dispute resolution.

    The IST gave the assurance yesterday at the formal unveiling of the tribunal’s zonal office in Lagos.

    Chairman and Chief Executive, Investment and Securities Tribunal (IST), Siaka Idokoh-Adoh, said the new office was a demonstration of the tribunal’s commitment to creating enabling environment for efficient adjudication and promotion of investors’ confidence in the Nigerian capital market.

    According to him, it was necessary to relocate to the new office to create a conducive platform for the ventilation of grievances by litigants as well as affording potential litigants a closer justice.

    Idoko said that IST was created for the resolution of dispute arising from investments and securities transactions.

     

  • MTN Nigeria, Dangote Cement lift equities by N221b

    Nigeria’s two largest quoted companies-Dangote Cement Plc and MTN Nigeria Communications Plc led the equities market to a net capital gain of N221 billion yesterday, sustaining the bullish streak that started with the listing of MTN Nigeria last Thursday.

    For the third consecutive trading session, MTN Nigeria continued atop the gainers’ list at the Nigerian Stock Exchange (NSE), rising by the maximum daily allowable change of 10 per cent. MTN Nigeria recorded the highest gain of N10.85 to close yesterday at N119.75 per share. MTN Nigeria, which was listed by way of introduction at N90 per share last Thursday, has been rising by the maximum allowable price change of 10 per cent since Thursday.

    The momentum of trading on the telco stock also widened considerably as it emerged the most active stock. MTN Nigeria led the activities’ chart with a turnover of 51.40 million shares valued at N6.16 billion in 61 deals. The current market value increased MTN Nigeria’s market value to N2.437 trillion, N607 billion net capital gains on the telco’s entry value of N1.83 trillion on Thursday.  MTN Nigeria had on Thursday listed by way of introduction 20.35 billion ordinary shares at N90 per share to emerge the second most capitalised company at the Nigerian stock market.

    Dangote Cement, NSE’s most capitalised stock recorded the second highest gain of N2 to close at N178 per share. The gains by both MTN Nigeria and Dangote Cement overshadowed the tepid underlying pricing trend at the Exchange. With 20 losers against 17 gainers, most sectoral indices still closed negative despite the positive overall performance.

    Aggregate market value of all quoted equities rose from its opening value of N12.717 trillion to close at N12.938 trillion. The All Share Index (ASI)- the benchmark index that tracks share prices at the Exchange, also increased by 1.74 per cent to close at 29,373.40 points compared with its opening index of 28,871.93 points. With these, average year-to-date return, though still negative, improved to -6.54 per cent.

    Read also: ‘Why MTN took N200b loan’

    Most sectoral indices closed negative, underscoring the influence of the large-cap stocks on the overall market position. The NSE Oil & Gas Index dipped by 1.11 per cent. The NSE Banking Index declined by 1.08 per cent while the NSE Industrial Goods Index dropped by 0.04 per cent. On the upside, the NSE Consumer Goods Index appreciated by 0.04 per cent while the NSE Insurance Index rose by 1.8 per cent.

    Other top gainers include Guinness Nigeria, which rose by N1.45 to close at N50.50. Dangote Flour Mills added 20 kobo to close at N16.35 while NEM Insurance chalked up 16 kobo to close at N2.36 per share.

    On the downside, Forte Oil led the losers’ list with a drop of N2.80 to close at N25.55. Access Bank dropped by 35 kobo to close at N6.10 while Lafarge Africa declined by 30 kobo to close at N10.20.

    Total turnover stood at 214.42 million shares valued at N7.93 billion in 4,644 deals. FBN Holdings was the second most active stock with 17.46 million shares worth N122.25 million while United Bank for Africa (UBA) placed third with 17.20 million shares valued at N103.19 million.

    Analysts at Afrinvest Securities said they expected the bullish run by MTN Nigeria to continue to impact positively on the overall market position.

    “In the absence of a positive catalyst, we guide investors to trade cautiously in the short term. However, stable macroeconomic fundamentals and compelling valuation remain supportive of recovery in the mid-to-long term,” Cordros Capital stated, underscoring the fragile pricing situation.

  • MTN Nigeria sells at N125 per share in off-market deals

    Investors appeared to be willing to pay more than the 10 per cent daily premium on the share price of MTN Nigeria Communications Plc. While the share price of the telecommunications company rose again by 10 per cent at the weekend to N108.90 at the open market at Nigerian Stock Exchange (NSE), investors went into off-market negotiations to buy the stock at N125 per share.

    A transaction note at the weekend indicated that nine deals were struck for 16.26 million ordinary shares of 2.0 kobo each of MTN Nigeria at N125 per share at the negotiated dealing window of the NSE.

    The negotiated deals were struck at 14.78 per cent premium to the closing price of N108.90. Under the rules at the open market at the NSE, the maximum daily allowable price change is set at 10 per cent.

    As off-market, negotiated cross deals, it means that the deals were not subjected to the dynamics of price discovery for the particular period. Off-market trade implied that the deals were previously negotiated and only sealed through the transfer portal of the Exchange.

    The negotiated cross deal platform of the Exchange is a special-purpose trading platform that is meant for voluminous transaction. By the cross deal, it implies that the buyer and the seller had been prearranged and the transfer at the stock market was a mere perfection of the agreement between the two. The negotiated cross deal allows the parties to the deal to close the deal at reduced cost.

    MTN Nigeria Communications rose by the maximum daily allowable price gain of 10 per cent on Friday, chalking up a whooping N201.47 billion capital gains in second day of trading at the stock market. MTN Nigeria on Thursday listed by way of introduction 20.35 billion ordinary shares at N90 per share.

    MTN Nigeria’s share price, which rose by 10 per cent or N9 on Thursday, also rose  by the same maximum percentage on Friday, adding N9.90 to close now at N108.9 per share.

    With the ongoing rally, MTN Nigeria has gained N384.62 billion in two days, pushing its market value from initial listing value of N1.83 trillion to N2.22 trillion. The off-market deal valued MTN Nigeria at N2.54 trillion, some N400 billion below Dangote Cement, the most capitalised quoted company. Many analysts believed that MTN Nigeria will overtake Dangote Cement as the most capitalised company at the Nigerian stock market this week.

    Speaking at the listing of the company, Chairman, MTN Nigeria Communications Plc, Pascal Dozie said the listing was a milestone in the evolution of the telecommunications company, noting that the listing will help to create a new telecoms and technology asset class for investors and provide opportunity for a wider group of Nigerians to participate in the MTN Nigeria success.

    “Today is a major milestone in the evolution of MTN in Nigeria and it is fitting that it takes place 18 years to the day since I made the first call on the MTN network on May 16, 2001. Since our initial investment in 2001, we have worked in partnership with Nigerians to deliver the largest network in Nigeria, with over 60 million people now able to access mobile communications services,” Dozie said.

    He pointed out that MTN Nigeria employs more than 1,600 people while its operations create employment for more than 500,000 Nigerians.

    According to him, the telco has empowered millions of people and businesses in rural and urban areas, driving innovation, expansion of market access and local economic inclusion.

    “I am delighted that we can expand this impact further today, by enabling investors to trade our shares on the NSE,” Dozie, who beat the ceremonial gong to close the market, said.

    Chief Executive Officer, MTN Nigeria Communications Plc, Ferdi Moolman assured that the company has established a sustainable platform for growth, from which it would be able to meet the growing and dynamic needs of all stakeholders.

    He said MTN Nigeria had been built through a sustained focus on customer-centric delivery, striving to ensure that every subscriber gets as much value for their money as possible.

    “We are grateful to customers for their loyalty, and to our people, our partners and our regulators for the opportunity to continue to contribute to Nigeria’s growth story. We are only beginning to tap into the opportunities that connectivity enables and are fully focused on investing to connect every Nigerian, and to make social innovations like mobile electricity and high impact mobile solutions in education, healthcare and agriculture available in communities everywhere,” Moolman said.

  • Stockbrokers’ institute awards scholarships to 31 journalists

    The Chartered Institute of Stockbrokers (CIS) has awarded scholarships to 31 financial journalists to undergo the institute’s Diploma Progamme in Securities and Investment Market.

    At a ceremony at the weekend to confer the awards in Lagos, the institute said the scholarships further demonstrated its determination to invest in human capital for overall development of the market, especially in information dissemination.

    According to the institute,  the programme will not only deepen the beneficiaries’ knowledge of the market, but pave the way for them to aspire to become professional securities dealers.

    CIS President, Adedapo Adekoje said the awards were part of the corporate social responsibilities (CSR) of the institute aimed at improving the skills of those who cover the capital market for professional reportage.

    He noted the propensity for market information by stakeholders in the capital market ecosystem and the roles of financial journalists in the process.

    “It is hardly contestable to say that investors, especially in Nigeria, form their opinion of the capital market from what they read in the mass media. In recent years, this has been further amplified by the social media. It is, therefore, critical that financial journalists are well- informed about the market such that they can give enlightened and balanced reporting,” Adekoje said.

    According to him, in recognition of the very important role of journalists  in  the  securities  and  investment  industry,    the  CIS  council approved  a  scholarship  scheme  that  will  enable  outstanding  financial  journalists undertake the CIS Diploma in Securities and Investment (DSI) programme at no cost. The scholarship will cover registration fees, examination enrolment fees and study materials.

    He pointed out that the CIS Professional Diploma  in  Securities  and Investment  will  give participants immense  opportunities  to understand  the  capital  market  better  and  position them just  one  step  away  from becoming  chartered  stockbrokers.

    “Domestic investors need  education  and  enlightenment.  They need  to  know  the  facts behind the numbers that are unleashed on them every day. They need to appreciate that, over the long term investors in properly constructed stock portfolios will be net winners, as consistently reported by researchers. The  youths  must  be educated , market operators must be assisted to continually upgrade their skills, and most importantly, investors must be given the right and adequate information to protect them from losing their hard earned money. In all this, financial journalists, play a major role,” Adekoje said.

    He explained that the CIS now offers students the choice of becoming a full-fledged omnibus broker or specialist in any of five stand- alone professional areas, including fixed income dealing, investment advisory services, equity dealing and commodity trading among others.

    Guest Speaker and BusinessDay Publisher, Frank Aigbogun, who spoke on the “Roles of Financial Journalism in Fostering Capital Market Literacy “, urged the awardees to uphold the highest tenet of professionalism in order to contribute immensely to the growth and development of the market.

    He advised them to be on top of the global developments in the financial market and leverage their professional and technical knowledge to drive debates on topical economic issues in order to influence public policy positively.

    CIS Registrar, Adedeji Ajadi explained that the scholarship had a life span of one year within which the beneficiaries would write examination twice. According to him, the examination is June and September.