The Nation Newspaper

Category: Equities

  • Deepening savings through financial literacy

    The week-long yearly global focus on financial literacy, earnings and savings emphasises the importance and linkages between income growth and savings and national development. In this report, Capital Market Editor, Taofik Salako, examines the relevance of this year’s global theme and Nigeria’s efforts at achieving broader and higher savings.

    Last week’s Global Money Week and Financial Literacy Day refocused the global financial industry and economies to the linkages and missing links in national financial and economic development.

    With the theme: Learn, Earn, Save, the Global Money Week redirected nations to the importance of the three critical elements of financial literacy, income and savings in building a virile investment base necessary for sustainable economic growth.

    Nigeria yearly combines the annual global events marking the Global Money Week with its national initiative of Financial Literacy Day to underscore the national urgency and imperative of financial literacy to addressing many pressing national challenges. The relationship between financial literacy, income growth, savings, investments and national development is a global aphorism, all reputable studies and scholars have found positive relationship between these elements.

     

    Revolving cycle

    It is a well-established fact that the extent of poverty, financial exclusion and economic underdevelopment relate to the level of financial literacy and inclusion. It has also been established that financial literacy-the culture and awareness about income opportunities, growth and management, like every culture, develops from early learning through adolescence to adulthood. Globally, less than five per cent of all children in the world have access to financial education and financial inclusion. There are about one billion children living in poverty while many young people are struggling with large amounts of debts due to financial illiteracy. These lead to several negative socio-economic consequences, including drug abuse, civil disorder, financial crimes, and the entrapping cycle of poverty and underdevelopment. The Week aims at inspiring children and youths to learn about money, saving, income sources, employments, entrepreneurs and most importantly, self confidence and esteem that come with knowledge and control. The 2019’s theme underscored the importance of children and youth to be economically equipped and empowered to close inequality gaps and build a brighter future.

    Such campaign is more important to Nigeria, which occupies the lower rung of the ladder in global financial literacy, savings and investments. A report by the United States Central Intelligence Agency (US CIA) showed Nigeria within the lower third of a global sample. Nigeria was rated lowest within the emerging countries bloc of Brazil, Russia, India, China, South Africa and Nigeria (BRICSN). Less than five per cent of Nigerian population invest in the country’s stock market and only a fraction of this national investing public, some six to seven per cent, invest in mutual funds. These compare with average of some 20 per cent among many emerging countries. Subscriptions to several offers aimed at national participation have remained narrow and in many instances, state governments had to acquire pre-allotted shares under government’s privatisation programme. For instance, with its minimum subscription of N5,000 and double-digit, quarterly payable coupon or interest rate, subscription to the Federal Government of Nigeria Savings Bond (FGNSB) has remained narrow, since inception in 2017. The maiden FGNSB had received a nationwide total subscription of 2,577 bids with a total size of N2.067 billion.

    In 2012, the Federal Government launched the National Financial Inclusion Strategy (NFIS) as a medium-term plan to champion financial literacy and inclusion. The NFIS aims at reducing the number of eligible adult Nigerians that are excluded from the formal financial system from 46.3 per cent to 20 per cent by 2020.

    In 2014, the Central Bank of Nigeria (CBN) launched the Financial Literacy Day as a focal point of the activities to mark the Week to highlight the national importance and urgency of financial literacy. Besides, the Nigeria’s Economic Recovery and Growth Plan (ERGP), launched by President Muhammadu Buhari, plans to improve Gross National Savings (GNS) steadily to 15.53 per cent, 18.19 per cent and 21.31 per cent in 2018, 2019 and 2020. Yet, more than one-thirds of Nigerian population do not have access to formal financial services. With the 2020’s targets around the corner, the apex bank and other stakeholders recently revised and revved up strategies to deepen financial literacy. Last week’s activities showed renewed commitments of stakeholders to achieving the targets.

     

    Early savers and investors

    Across the financial services industry, from Polaris Bank Limited to Union Bank to Nigerian Stock Exchange (NSE) and several others, financial institutions devoted the week to promoting the ideals of financial literacy, earnings and savings. Polaris Bank’s Managing Director, Mr Tokunbo Abiru, led other staff of the bank in catch-them-young nationwide campaign across secondary schools. From the bank’s Lagos head office to Mado Government Secondary School, Tudun Wada, Jos, Plateau State, Polaris Bank stressed the need for students to imbibe the culture of savings to enable them secure their future.

    Abiru assured that Polaris Bank would continue to sustain efforts aimed at promoting financial literacy among secondary school students in particular and Nigerians in general. He noted that there are many negative consequences of low saving culture.

    “We have issues relating to finance which people do not know anything about. An attitude of not saving money is not good for the future. We need to learn, earn and save money. You do not save after spending but rather, you save first before spending. The idea is to catch them young in terms of educating them on finance and financial investment so that in future, their personal and financial lives can be guaranteed. To achieve this, we need to imbibe the culture of saving, no matter how small,” Abiru said.

    According to him, the annual campaign is one of the bank’s tactical approaches to entrenching savings culture at an early age and ensuring an empowered life and a sustainable economy in line with CBN’s financial inclusion mandate.

    “As a responsible corporate citizen, it behoves on us to do what is appropriate for the betterment of individuals and the society at large,” Abiru said.

    Abiru, who taught students ways to be thrifty and conscious of savings, urging the students not to spend all monetary gifts they get on buying things, but rather to learn to keep and grow part of monetary gifts.

    “You are not too young to start saving. The time to start is now so that it can become a habit that will stand you in good stead in the future. You also need to be financially literate to avoid making poor financial decisions and to curtail the development of poor financial habits that can adversely affect you. When visitors come to your house and give you money, don’t spend it on snacks. You should learn to save such monies,” Abiru advised.

    He said the bank has developed several products and services for children and teenage savers with a lot of exciting incentives, gifts and opportunities.

    Group Head, Northeast Zone, Polaris Bank Limited, Mr. Olayinka Obikanye, who represented the bank’s management at Government Secondary School, Tudun Wada, Jos, Plateau State, urged the students to be champions for financial literacy by passing the message to their friends and other family members.

    He noted that the annual campaign is a further testimony to the commitment of the bank’s to the wellbeing of Nigerians and the national economy.

    “For us in Polaris Bank, we will continue to engage schools, parents and teachers, because we believe that by being financially literate, students and indeed the young ones, will be able to build their capacity for future business endeavours, thereby securing their future from poverty and other financial challenges,” Obikanye said. Highlights of the programme at Mado Government Secondary School, Tudun Wada included topical lecture on financial literacy and management, questions and answers session and presentation of gifts by the bank.

    Principal of Mado Government Secondary School, Tudun Wada, Mrs. Zumunta Dancheng praised Polaris Bank and the CBN for bringing the campaign on financial independence and literacy to the doorsteps of the young generation in their school. She urged the students to ensure that the knowledge they acquired during the sensitisation exercise were put into good use.

    In Cross River, Akwa Ibom, Ebonyi, Zamfara, Oyo, Bauchi and Benue States, Polaris Bank reemphasised the ideals of financial literacy and management to students. More than 155 employees of the bank participated in educating school students across the federation.

    At Offot Ukwa Secondary School, Calabar, Cross River State and four other schools in Akwa Ibom State – Uyo High School, Bright Future International School, Nigerian Christian Institute and Redemption Academy, students were taught useful lessons on managing and saving money.

    In Ebonyi, participating schools included Fountain of Knowledge International Schools, Jesus is Lord International School, Great Minds Academy International School, Success Impact Academy and Our Lady Schools.

    In Zamfara State, students from Alhaq Academy, Gusau; SBMC Model School, Iman Global International Nursery and Primary School, Caliphate School and College of Education Staff School benefitted from Polaris Bank’s campaign. Students in Oyo State were not left out as sessions held at Rosebud College, Valencia College, Seed of Life College, Ogunsanya Girls Science Academy and Frontliners Primary and Secondary Schools. Overall, about 6,000 students benefited from the training.

    In Uyo, Head, Sustainability and Consumer Protection, Polaris Bank Limited, Bola Adesanoye, urged the students to be frugal and show more inclination to savings than spending.

    According to her, the activities marking the  Week and Financial Literacy Day were part of efforts by the bank to deepen financial literacy and inclusion, especially, among students.

  • Lafarge Africa lists 7.43b rights’ shares

    Lafarge Africa Plc yesterday formally completed its N89.2 billion rights issue with the listing of additional 7.43 billion ordinary shares of 50 kobo each that arose from the new issue at the Nigerian Stock Exchange (NSE).

    With the listing of the additional 7.43 billion ordinary shares, the total issued and fully paid up shares of Lafarge Africa increased from 8.67 billion ordinary shares to 16.108 billion ordinary shares.

    Lafarge Africa had offered 7.43 billion ordinary shares of 50 kobo each at N12 per share. The rights were pre-allotted on the basis of six new ordinary shares for every seven ordinary shares held as at the close of business on Tuesday, December 4, 2018. Acceptance list for the N89.2 billion rights issue opened on Monday, December 17, 2018 and closed on Monday January 28, 2018.

    The rights issue was fully subscribed. A breakdown of the allotment results showed that 16 applicants out of a total of 1,826 applicants bought 7.313 billion ordinary shares of 50 kobo each, representing 98.37 per cent of the total shares on offer. The remaining 1,810 applicants were allotted 121 million shares, representing 1.63 per cent of the total shares on offer.

    The allotment results showed that 1,734 shareholders accepted their rights in full totaling 5.93 billion ordinary shares, out of which 738.73 million ordinary shares were traded on the floor of the NSE. The report also showed that out of 1,734 shareholders who took up their rights in full, 734 shareholders also applied for additional 1.300 billion ordinary shares and were allotted in full from the renounced rights.

    A total of 92 shareholders with a provisional allotment of 395.875 million ordinary shares partially accepted their rights for 202.40 million ordinary shares, thus the balance of 193.47 million ordinary shares were renounced. Also, 34 subscribers purchased rights of 738.73 million ordinary shares on the floor of the NSE.

  • Transcorp to scale up power business with $2.5b new investment

    Transnational Corporation of Nigeria (Transcorp) Plc will scale up its power business with additional investment of about $2.5 billion as the conglomerate seeks to consolidate the profitability of its businesses.

    The board and management of the conglomerate yesterday presented the underlying facts behind its operations to the investing public at the Nigerian Stock Exchange (NSE).

    Chairman, Transnational Corporation of Nigeria (Transcorp) Plc, Mr. Tony Elumelu, said the conglomerate’s power subsidiary, Transcorp Power Limited, will be investing as much as $2.5 billion in power projects to help boost power supply in Nigeria.

    He said the company has so far injected about $1 billion in projects with a combined capacity of 700 megawatts while the company is also bidding for Afam Electricity Generation Company, which operates a natural-gas fired power generation plant in southern Rivers State.

    “We have expressed interest in the acquisition of Afam power plant, which we are going to spend a lot of money on. It will give us 1,400 megawatts and we can do more,” Elumelu said.

    Chief Executive Officer, Transnational Corporation of Nigeria (Transcorp) Plc, Mr. Valentine Ozigbo, noted that the conglomerate with its investments in hospitality; power, oil and gas and others remains committed to delivering superior value to its shareholders.

    He said the focus of the company is to create an enabling environment for domestic and foreign investors to succeed, adding that the conglomerate has been well-positioned to continue to roll out profitably to its numerous investors.

    “Today, we own and manage the best business hotel in Africa, and are intent on improving tourism in Nigeria and beyond. We own and manage one of the most strategic power assets in Nigeria, and aim to meet the power needs of one out of every four Nigerians, and through this, help in poverty eradication and improving Nigeria’s competitiveness,” Ozigbo said.

    He said the group’s businesses are now contributing unprecedented revenue and profits and the group is also stronger in corporate governance as it consistently ranks among quoted companies that annually successfully finalize their audited accounts and organize their annual general meetings.

    He assured that all indications point to a stronger performance in the years ahead.

    “The exciting news is that where we are headed is even brighter; we will deepen our play in the sectors we currently operate in. We will operationalise our oil asset and invest in more sectors. And with the support of the stakeholders, especially the entire capital market community, we will be that conglomerate Nigerians will be most proud of,” Ozigbo assured.

    Key extracts of the audited report and accounts for the year ended December 31, 2018 showed that Transcorp’s turnover rose by 30 per cent while profits before and after tax grew by 82 per cent and 94 per cent respectively.

    Group turnover posted a record growth to N104.2 billion in 2018 compared with N80.28 billion in 2017. Gross profit rose from N36.42 billion in 2017 to N48.25 billion in 2018.

     

     

  • Afriland Properties to drive growth with new investments

    Afriland Properties Plc will invest in new processes and technology and foster responsive innovation to drive growth in the years ahead.

    At the annual general meeting yesterday in Lagos, the board and management of the real estate company assured shareholders that the company will continue to explore opportunities to grow its portfolio and deliver better values to shareholders.

    The assurance came as shareholders approved payment of N68.70 million as cash dividend for the 2018 business year, representing a dividend per share of 5.0 kobo.

    Key extracts of the audited report and accounts of Afriland Properties for the year ended December 31, 2018 showed that the company grew its top-line marginally from N1.28 billion in 2017 to N1.30 billion in 2018. Profit before tax and profit after tax stood at N915 million and N682 million respectively. Total assets rose by 26 per cent to N24.9 billion.

    Addressing the shareholders, Managing Director, Afriland Properties Plc, Mrs. Uzo Oshogwe noted that while the halt in economic recovery witnessed after the recession negatively impacted the real estate industry, the company grew its revenue to N1.30 billion in 2018.

    She assured that the company will continue to execute on its key strategies and initiatives to deliver its intent and yield better results in the years ahead.

    “We recognize the need to foster innovation and respond quickly to opportunities in the real estate industry and have taken appropriate measures. We will also invest in new processes and technology in line with our purpose of improving lives,” Oshogwe said.

    She said Afriland is committed to improving lives by investing in the development, management and maintenance of world-class real estate offerings across Africa.

    Chairman, Afriland Properties Plc, Mr. Emmanuel Nnorom said the 26 per cent increase in the company’s assets was attributable to the upgrade of its investment properties.

    He said increasing shareholder value and boosting returns remain top priorities for Afriland Properties Plc, assuring that the board will continue to commit resources towards achieving this objective.

    “In our pursuit of continuous business growth and excellent financial performance, we are working closely with the management team to ensure that the company delivers on its promises and targets,” Nnorom said.

     

     

  • NSE marks global money week

    The Nigerian Stock Exchange (NSE) has concluded plans to celebrate this year’s Global Money Week across its offices nationwide. The week begins from Monday, March 25 and ends on Friday, March 29, 2019.

    The week’s activities will include an interactive session with executive management of the Exchange, financial literacy fair, art exhibition, a tour of the NSE trading floor, school outreach programmes and a closing gong ceremony.

    In a statement, the NSE noted that for the past four years, it has reached over 30,000 students from over 70 primary, secondary and tertiary schools with an indirect impact on about 60,000 young people across its operating environment.

    The Exchange stated that the theme for this year’s celebration, ‘Learn, Save, Earn”, has been carefully selected to help children and youth learn about savings and explore investment opportunities so as to become better money managers and improve their overall quality of life.

    According to the NSE, Global Money Week is one of its many intervention programmes to build a financially savvy generation of future leaders.

    “The children and youths are an important component of planning our future as a nation and we must imbue them good financial skills that assure a secure and great future for them,” NSE stated.

  • OK Foods unveils Topmint’s brand ambassador

    OK Foods Limited has named Mr Folarin ‘Falz’ Falana as the brand ambassador for its new menthol flavoured candy, Topmint.

    OK Foods Limited, a leading player in the confectionery and biscuits category in Nigeria for many years, recently launched the new menthol flavoured candy under the brand name “Topmint”.

    Speaking at the signing in Ikeja, Lagos, event, Managing Director, OK Foods Limited, Mr. Murali Krishnan, said Topmint candy is a winning product that has been tested amongst consumers and rated higher on parameters such as taste, size and mint strength when compared to other mint brands available in the Nigerian market.

    According to him, Topmint candy’s taste delivers on its promise of being a strong menthol candy. The product, when checked with consumers, has been testified as superior with unique packaging that makes it stand out on the shelves.

    He added that the company is very positive that the chosen brand ambassador will help drive brand awareness and association with core consumers.

    He said Falz’s personality and style resonates with what the Topmint brand is about – stay sharp – a campaign that the brand recently ran on social media attracting attention from a large number of Falz’s followers and social media savvy community.

    Falz said he shared the same ideals of sharp, witty, smart and creativity with the brand essence of Topmint candy.

    “I love the idea of being sharp, witty, smart and creative. That’s what I always strive to be with everything that I do. I am excited about this and I am positive that the collaboration between Topmint candy and my brand will produce amazing results,” Falana said.

    OK Foods Limited is well known for some of its key brands, such as OK POP and Chic Choc.

  • ‘Govt should make capital market pivot for national budget’

    THE government should make capital market the pivotal point for the development and implementation of national budget and development plans.

    Capital market regulators, operators, financial experts and other stakeholders yesterday agreed that the Nigerian capital market has important roles to play in the industrialisation and economic development of the country.

    They spoke at the third budget seminar organised by the Securities and Exchange Commission (SEC).

    SEC Acting Director-General, Ms Mary Uduk said there is a mutually revolving relationship between government policies and economic development and the capital market, noting that government  budget affects the economy and the economy  in turn affects the capital market.

    She pointed out that both local and foreign stakeholders are interested in the budget and try to analyse how it affects them.

    According to her, investors also sit down and analyse the budget and that is why the capital market is looking at the impact of the budget and how the market can aid its implementation.

    “The capital market is very important in funding a lot of projects in the economy. The capital market is important in raising these money to fund the budget. We want to be in the driver seat and contribute to the budget if the Federal Government,” Uduk said.

    She added that capital market stakeholders are interested in driving and contributing to the economy as there are a lot of opportunities for the capital market in the 2019 budget.

    In his Lead presentation, Head Economic Research, Securities and Exchange Commission ( SEC), Dr. Afolabi Olowookere said that opportunities exist for equities and sub- national issuances and urged state governments to explore the capital market for funding of their project.

    Olowookere said that opportunities exist for equities and sub- national issuances as a means to fund the budget while urging a lower domestic borrowing by the federal government to make room for private issuances.

    He listed some of the ways the budget can be funded to include creation of money market-based instruments and trading, commodity trading and derivatives, investing in eligible companies under tax credit scheme as well as attracting restructured oil assets to list.

    Discussants on the panel opined that infrastructure development is of optimal importance for the achievement of development of sustainable prosperity adding that all sectors are dependent on infrastructure to attract investment and ensure the active participation of the private sector.

    Experts noted that in the areas of infrastructure, housing sector, and issuance of mortgages, the capital market may participate through securitisation.

    They said there were great potential for pension fund administrators to invest in the real estate sector.

    The seminar suggested that increase in allocation to the health and education sectors is necessary for development. This is because, people, and not just infrastructure, build and develop a nation.

    According to them, the nation requires that the government should come up with policies that improve access to capital for small and medium scale enterprises (SMEs). SMEs  employ a large proportion of the  workforce, thus they should be empowered through access to capital.

    They urged governments to look towards the capital market as commercially viable infrastructure projects exist adding that enabling legal framework should be developed to enable the private sector participate.

    The seminar also urged the government to enforce executive order No. 2, which aims to promote local content in public procurement as this would be beneficial for listed companies.

    The moderator at the event was Mr. Mobolaji Balogun of Chapel Hill Denham.The panelists include Hajara Adeola of Lotus Capital Limited, Toyin Sanni of Emerging Africa Capital Group, Prof. Olu Ajakaiye of Africa Centre for Shared Capacity Development Building, Prof. Uche Uwaleke of Nasarawa State University and Johnson Chukwu of Cowry Assets Management Limited.

  • SEC mulls suspension of companies over failure to submit annual reports

    Securities and Exchange Commission (SEC) is considering an amendment of capital market rules and regulations to empower the apex capital market regulator to suspend any public company that fails to submit its yearly report within stipulated deadline.

    According to a draft amendment obtained by The Nation, the Commission is seeking to introduce a new rule that allows it to direct that trading on the shares of a company that fails to submit annual report be suspended. The draft rule also empowers the Commission to “impose any other sanction as it deems fit”.

    “Suspension of trading may also apply where a company has been granted an extension but fails to file at the expiration of the extension period,” according to the draft rule.

    The amendment further strengthens existing enforcement regime on submission of annual reports.  Under existing rules, any company that fails to file its annual report with the Commission shall be liable to a fine of N1 million and the sum of N25, 000 for every day the default continues.

    However, the draft rules allow any public company that fears it may not be able to meet the stipulated deadline to apply for extension of time to file its audited report, with such application for extension not later than 30 days before the due date. Such application for extension shall state the reasons for the inability to file within time and shall be supported with relevant documentary evidence.

    In granting the application for extension, the Commission may consider occurrence of an unforeseen circumstance, national emergency and intervention by a regulatory agency.

    According to the new draft, a public company whose application has been granted for extension of time to file its audited financial statements shall be required to publish a notification of its failure to file on the due date in a national newspaper and on the company’s website.

    The Commission noted that despite its zero-tolerance to late and non-filing of financial statements and annual reports by public companies, it is mindful that certain unforeseen circumstances may warrant the granting of extension of time to a public company to file same.

    SEC however reiterated its commitment to take appropriate action by imposing sanctions that could include suspension of the trading of the shares of a public company whose financials are not released to the investing public as at when due.

    The draft amendments align SEC’s rules with existing rules at the Nigerian Stock Exchange (NSE), in furtherance of the ongoing efforts to standardize the rules across the markets.

    Under the existing rules, public limited liability companies are required to file their annual reports with the Commission not later than 90 days after the financial year end in line with the provisions of Companies and Allied matters Act (CAMA).

    The annual report to be filed with the Commission shall in all material facts comply with the relevant accounting standard. It shall also make disclosures of its unclaimed dividend fund with respect to bank balance, investments and earned income by way of notes to the audited accounts and other periodic reports filed with the Commission.

    The chief executive officer and chief financial officer or officers or persons performing similar functions in a public company shall in filing the annual account, attach a duly signed certification letter to the matters  while the external auditor to the public company shall be registered by the Commission.

    The auditor of a public company shall in his audit report to the company issue a statement as to the existence, adequacy and effectiveness or otherwise of the internal control system of the company while the annual report shall state the level of compliance of the public company with the Code of Corporate Governance for public companies.

  • Access Bank rallies on merger completion

    Access Bank Plc was the most active stock and the third highest gainer yesterday at the Nigerian equities market as investors sought to lock in into the first tier commercial bank, which consummated its merger with Diamond Bank Plc on Tuesday.

    The Nigerian Stock Exchange (NSE) had on Wednesday placed full suspension on Diamond Bank, after the Federal High Court sealed the merger between Access Bank and Diamond Bank on Tuesday. This makes Access Bank, the post-merger entity, the only available vehicle for investors to benefit from the expected synergies from the merger.

    Investors rushed in buy orders for Access Bank and turn the stock into a seller’s market in the five-hour trading session yesterday, pushing up the share price and the momentum of activities.

    Access Bank was the toast of the investing public with a turnover of 93.47 million shares valued at N638.54 million, representing about 37.4 per cent of total turnover volume yesterday. With more demand than supply, its share price rose by 40 kobo or 6.15 per cent to close at N6.90 per share.

    Under the terms of the merger, Diamond Bank will transfer all its assets, liabilities and undertakings to Access Bank and the entire issued share capital of Diamond Bank shall be cancelled and Diamond Bank shall be dissolved without being wound up. In exchange, Diamond Bank’s shareholders shall receive a cash consideration of N1 per share and two ordinary shares of the enlarged Access Bank for every seven ordinary shares of Diamond Bank held as at the effective date.

    Access Bank will be the post-merger entity while its Group Managing Director, Herbert Wigwe will continue to lead the post-merger management as chief executive. The business combination is expected to leapfrog post-merger Access Bank as Nigeria’s largest bank by total assets and one of Africa’s largest retail banks.

    Meanwhile, share price depreciation suffered by many large-cap stocks dragged the overall market situation to its fourth consecutive negative closing. While there were more gainers than losers, losses suffered by influential stocks such as Dangote Cement, Zenith Bank, Guaranty Trust Bank and Seplat Petroleum Development Company overshadowed the overall market position.

    The benchmark index at the NSE, the All Share Index (ASI), declined by 0.50 per cent to close at 30,885.31 points as against its opening index of 31,040.84 points. Aggregate market value of all quoted equities at the NSE dropped by N58 billion from its opening value of N11.576 trillion to close at N11.518 trillion. This depressed the average –year-to-date return to -1.73 per cent.

    Sectoral indices showed mixed performance. The NSE Consumer Goods Index rose by 0.13 per cent. The NSE Industrial Goods Index appreciated by 1/13 per cent while the NSE Insurance Index rallied by 0.43 per cent. However, the NSE Oil & Gas Index depreciated by 3.28 per cent while the NSE Banking Index slipped by 0.35 per cent.

    There were 24 gainers against 16 losers. Cement Company of Northern Nigeria led the gainers with a gain of N1 to close at N20. PZ Cussons Nigeria followed with a gain of 75 kobo. Eterna rose by 40 kobo to close at N4.80. Custodian Investment added 30 kobo to close at N6.30 while Oando and NASCON Allied Industries chalked up 20 kobo to close at N5.80 and N20.90 respectively.

    On the losers’ list, Seplat led the decliners with a drop of N31.60 to close at N550. Dangote Cement followed with a loss of N1.30 to close at N188.10. Guaranty Trust Bank declined by 65 kobo to close at N36.15. Stanbic IBTC Holdings dropped by 50 kobo to close at N45 while Zenith Bank lost 20 kobo to close at N22.

    Total turnover stood at 250.03 million shares valued at N2.43 billion in 3,869 deals. Zenith Bank was the second most active stock with 30.75 million shares worth N678.71 million while United Bank for Africa ranked third with 24.59 million shares worth N192.83 million.

    Market analysts advised investors to stick to stocks with good fundamentals to minimise the risks in the bearish market.

    “We continue to observe sell pressures within the equities market. However, we opine that the mixed performance of the sectors under our coverage presents an evidence of investor bargain hunting on some counters. Tomorrow, the last trading session for the week, we expect to see sustained investor interest in some fundamentally sound stocks which may drive a positive performance for the overall market,” Afrinvest Securities stated.

    Analysts at Cordros Capital noted that in the absence of a positive catalyst, investors should 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 reiterated.

     

     

  • CISI launches Nigerian advisory council

    The Chartered Institute for Securities & Investment (CISI) has launched its Nigerian National Advisory Council (NAC) to foster the activities of the global investment certification body in Nigeria.

    The NAC was established with the dual purpose of supporting CISI membership in Nigeria and of guiding the CISI’s activities in Nigeria in developing professional standards across the finance profession.

    The CISI Nigeria NAC, whose inaugural President is Mr Bola Ajomale, Chief Executive Officer of NASD OTC Securities Exchange Plc, is composed of senior CISI members within the Nigerian financial markets.

    The launch of the NAC in Lagos was followed by the inaugural CISI Nigerian Members’ Forum hosted at the Eko Hotel. Gguests included Mr Adedapo Adekoje, President, Chartered Institute of Stockbrokers (CIS), Mrs Olubukanla Rufai, Assistant Director, Securities and Exchange Commission (SEC), and Mrs Sa’adatu Faruk, Head, Marketing, Consultancy, Research and Publications, Nigerian Capital Market Institute (NCMI).

    Ajomale welcomed all delegates and Mr Praneet Shivaprasad, Senior International Manager at the CISI. CISI’s two Nigerian accredited training partners (ATPs), Kedari Capital and X-Academy, provided information on how individuals can register for training on CISI qualifications with them.

    Adekoje said CISI will enable Nigerian members to network with the CISI’s members around the world. Rufai spoke about her pride in being a member of the CISI, and of the importance of the institute’s work in the area of integrity and ethics. Faruk noted the value of an organisation like the CISI introducing international standards into the Nigerian capital markets, whilst mentioning the forthcoming partnership between CISI and NCMI to issue CISI qualifications.

    Shivaprasad said he is always incredibly impressed by the commitment of Nigerians to education and qualifications.

    “Nigeria has embraced CISI qualifications and membership, and we are therefore delighted to be able to launch a Nigeria National Advisory Council to support members in Nigeria. We look forward to working closely with our partners and the regulator to successfully blend both Nigerian and global professional standards for the enhancement of the Nigerian capital markets,” Shivaprasad said.

    CISI is the 45,000 strong global not-for-profit professional body with members in over 111 countries. It has been working in Africa since 2012 offering examinations and membership across the continent, with regulatory approval for its examinations in 10 countries.