The Nation Newspaper

Category: Equities

  • Investors lose N65b on N14.76b deals

    The momentum of activities at the Nigerian stock market improved last week but the market remained under sell pressure as investors lost N65 billion in the five-day trading sessions.

    Total turnover at the Nigerian Stock Exchange (NSE) stood at 1.17 billion shares worth N14.76 billion in 14,554 deals last week as against 1.11 billion shares valued at N11.19 billion traded in 14,430 deals in the previous week.

    The All Share Index (ASI)-the benchmark index that tracks share prices at the Exchange, declined by 0.63 per cent from its week’s opening index of 30,866.82 points to close at 30,672.79 points. Aggregate market value of all quoted equities also depreciated from N11.269 trillion to close at N11.204 trillion. The average year-to-date return worsened to -19.80 per cent.

    The financial services sector led the activity chart with 983.374 million shares valued at N9.358 billion traded in 8,484 deals; thus contributing 84.15 per cent and 63.39 per cent to the total equity turnover volume and value respectively. The healthcare sector occupied a distant second with 44.802 million shares worth N183.753 million in 253 deals while consumer goods sector placed third with a turnover of 42.758 million shares worth N3.553 billion in 2,227 deals.

    Banks dominated the activities chart with the trio of Zenith Bank Plc, FBN Holdings Plc, and United Bank for Africa Plc emerging as the most active stocks. The three most active stocks accounted for 438.938 million shares worth N 5.691 billion in 2,962 deals, contributing 37.56 per cent and 38.55 per cent to the total equity turnover volume and value respectively.

    Also traded during the week were a total of 316 units of Exchange Traded Products (ETPs) valued at N849,000 executed in five deals compared with a total of 84,714 units valued at N1.219 million that was traded in 10 deals two weeks ago.

    In the sovereign bond market, a total of 10,934 units of Federal Government bonds valued at N10.746 million were traded in 31 deals compared with a total of 2,908 units valued at N2.516 million traded in 11 deals penultimate week.

    There were 34 gainers as against 37 losers last week compared with 30 gainers and 38 losers recorded in the previous week. Forte Oil led gainers with a gain of 33.89 per cent to close at N24.10 while 11 led the losers with a drop of 10.41 per cent to close at N156.60 per share.

  • Vetiva, Cordros Capital, others win NSE CEO awards

    The Nigerian Stock Exchange (NSE) has announced winners of its annual NSE CEO Awards. Winners included Stanbic IBTC Capital Limited, Vetiva Capital Management Limited and Cordros Capital Limited, which were joint winners of the award for issuing houses with the highest number of primary market transactions in the equity segment.

    Initiated in 2012, the NSE CEO Awards is designed to reward and motivate listed companies, dealing member firms, fund managers and issuing houses to attain higher levels of corporate governance, compliance and performance that reinforce investor confidence in the Nigerian capital market.

    This year, the Exchange enhanced the award categories from three to 10 to reflect the dynamic nature of the market. The categories for this year include most digital broker of the year, which was presented earlier in the year to Meristem Stockbrokers Limited at the Exchange’s Market Data Conference in October 2018; best dealing member firm in terms of volume; best dealing member firm in terms of value; most compliant dealing member firm; most compliant listed company; listed company with highest number of disclosures; issuing house with the largest value in a single deal; issuing house with the highest number of primary market transactions in equity segment; issuing house with the highest number of debt issuance in the corporate bonds segment; and fund manager with the largest listed fund size.

    Pilot Securities Limited was named the most compliant dealing member firm for 2018, having demonstrated the highest degree of compliance with the rules and regulations governing dealing members of the Exchange in 2018. Stanbic IBTC Stockbrokers Limited won two awards for dealing member firm with the highest volume and dealing member firm with the highest value of trades.

    FBNQuest Merchant Bank Limited, ARM Securities Limited and Stanbic IBTC Capital Limited were adjudged winners of the award for issuing houses with the highest number of debt issuance in the corporate bonds segment. This was based on the value of new transactions approved and listed on the Exchange.

    The award for issuing houses with the largest value in a single deal went to Stanbic IBTC Capital Limited and Union Capital Market Limited, for facilitating the highest value of deals on the Exchange. First City Asset Management Limited won the award for fund manager with the largest listed fund size. This award takes into cognisance the cumulative size of new funds listed on the Exchange in 2018.

    Seplat Development Company Plc emerged winner of the award for issuer with the highest number of disclosures, for issuing the highest number of non-structured disclosures during the year under review. Nigerian Breweries Plc. was named the most compliant listed company, for being an early filer of financial statements; complying with the Securities and Exchange Commission (SEC) Code of Corporate Governance; with zero sanctions received during the year under review. The company is also Corporate Governance Rating System (CGRS) certified.

    Speaking at the awards, Chief Executive Officer Nigerian Stock Exchange (NSE) Mr. Oscar Onyema, praised the winners for their hard work, dedication and contributions to the development of the capital market.

    According to him, the winning companies have demonstrated capabilities and commitment towards quality development and exceptional performance; high ethical standards; compliance with the rules and regulations of the Exchange, and other applicable laws and regulations that leave no room for any penalties; while acting as key drivers in strengthening the Nigerian capital market.

    “The awards offer winners a year-round marketing opportunity and a big morale-booster for companies who have made extraordinary contributions to the Nigerian capital market and exemplify the highest standards,” Onyema said.

    Also at the event, five employees of the Exchange from its five divisions namely shared services, regulation, listings business, trading business and office of the CEO were awarded the most distinguished employees for their exemplary performance during the year under review.

    Joseph Kadiri, media relations officer at the Exchange, won the distinguished employee award for the shared services division.

  • Great Nigeria Insurance gets NSE’s nod to delist shares

    Authorities at the Nigerian Stock Exchange (NSE) have approved the voluntary delisting of the entire issued shares of Great Nigeria Insurance (GNI) Plc, after the insurance company opted to delist to avoid recurring non-compliance with rules and regulations.

    A source at the NSE told The Nation at the weekend that the Council of the Exchange had earlier in the week approved the application for voluntary delisting filed on behalf of GNI, bringing the company to almost the end of the final stage of its delisting process.

    Shareholders of GNI had earlier approved a proposal by the board of directors for immediate delisting of the insurance company from the NSE.

    The board of GNI subsequently gave minority shareholders an October 24, 2018 deadline to accept payment in consideration for voluntary delisting of the company from the NSE or elect to be part of an unquoted company.

    According to GNI, shareholders who wish to sell their shares and exit the company as a result of ongoing process of delisting from the NSE may trade their shares at the secondary market or accept exit consideration being offered by the majority core investor in the company.

    As part of the delisting process, Insurance Resourcery and Consultancy Services Limited (IRCSL), which owns majority equity stake in the company, offered to pay cash consideration of 50 kobo per share for every share surrendered by minority shareholders. The exit price of 50 kobo was based on the highest price of 50 at which GNI had traded in the last six months.

    The total payment accruing to minority shareholders that elect to accept the exit consideration was scheduled for collation on October 24, 2018, the deadline for the acceptance of the offer. Thereafter, payments were made to the bank accounts of the shareholders within 24 hours.

    The board of the company had assured that shareholders that intend to continue to be a member of an unlisted GNI shall be free to remain and they have no obligation to receive the exit consideration.

    In an explanatory statement on the proposed delisting, the board of the company noted that the voluntary delisting will shield it from any enforcement action that may arise as a result of the outstanding free float deficiency at the NSE.

    The board also noted that over the last five years, there has been little or no trading activity on the shares held by the minority shareholders, pointing out that there has also been a considerable fall in trading volumes over the last 12 months with an average daily volume of circa 1,200 shares during the period between March 2017 to March 2018.

    The board argued that shareholders were not benefiting from the continued listing as shareholders were not getting any exit opportunity and their investments have been locked up and they found it difficult to dispose of their shareholding.

    The board added that the company has neither benefitted from the continuing listing as its shares continued to trade at a significant discount to the intrinsic value.

    “Furthermore, through the voluntary delisting process, the company will be providing an exit consideration to minority shareholders who do not wish to remain in an unlisted company,” GNI stated.

    The board of directors said the delisting will afford the company opportunity to further an imminent corporate restructuring exercise to take advantage of emerging opportunities, noting that the company may consider re-listing on the Exchange in the future if the market conditions are favourable.

    According to the company, the voluntary delisting will not occasion loss of business opportunities as there are similar unlisted insurance companies who are commanding significant share of the insurance market. Also, minority shareholders will not lose their shares because of the voluntary delisting and such shareholders may retain their membership in the unlisted company. However, through the voluntary delisting process, the minority shareholders – who do not wish to be members of an unlisted company – will have an opportunity to exit the company.

  • NSE places full suspension on C & I Leasing

    Authorities at the Nigerian Stock Exchange (NSE) yesterday placed full suspension on trading in the shares of C & I Leasing Plc in order to facilitate the ongoing share reconstruction of the leasing company. The full suspension is expected to remain until December 27, 2018 during which there will be no trading and price movement on the shares of C & I Leasing.

    The full suspension was to enable the company’s registrars to update the register of shareholders for the planned share consolidation.

    C & I Leasing plans to reduce its paid up share capital by 80 per cent in a share capital reconstruction that will see cancellation of 1.506 billion ordinary shares.

    According to the plan, four ordinary shares of 50 kobo each will be consolidated into one ordinary share of 50 kobo each. The reconstruction will reduce C & I Leasing’s current outstanding share capital of 1.883 billion ordinary shares of 50 kobo each to 376.56 million ordinary shares of 50 kobo each.

    The qualification date for the share reconstruction was Wednesday, December 12, 2018. All existing C & I Leasing shares certificates became null and void on the qualification date and new share certificates in C & I Leasing would be issued to those shareholders whose names appear on the company’s register of members as at the close of business on the qualification date as approved by the court in the ratio of one ordinary share for every four ordinary shares previously held.

     

  • Equities lose N28b as investors dump first-tier banks

    Nigerian equities lost N28 billion yesterday as selloffs in the banking sector coloured the overall market position. While there were more gainers than losers, losses suffered by highly capitalised banking stocks depressed the overall market situation.

    Benchmark indices at the Nigerian Stock Exchange (NSE) showed average decline of 0.25 per cent, equivalent to net capital depreciation of N28 billion. Average year-to-date return worsened to -19.88 per cent.

    The All Share Index (ASI)-the value-based index that tracks share prices at the Exchange, dropped from its opening index of 30,718.72 points to close at 30,642.35 points. Aggregate market value of all quoted equities also declined correspondingly from N11.221 trillion to close at N11.193 trillion.

    The overall market situation was largely due to losses recorded by Ecobank Transnational Incorporated (ETI), FBN Holdings, United Bank for Africa (UBA), Nigerian Breweries and Access Bank. The three most active stocks were Zenith Bank, FBN Holdings and Access Bank.

    Most sectoral indices closed on the negative. The NSE Industrial Goods Index declined by 0.6 per cent. The NSE Insurance Index dropped by 2.0 per cent. The NSE Consumer Goods Index dropped by 0.9 per cent while the NSE Oil & Gas Index dipped by 0.2 per cent while the NSE Banking Index slipped by 0.1 per cent.

    “In subsequent trading sessions, we expect the undulating trend recorded thus far to persist while we maintain our conscious outlook for the market in the near term,” Afrinvest Securities stated.

    There were 20 losers to 24 gainers. 11 Plc topped the losers’ list with a loss of N8.80 to close at N151.20. Nigerian Breweries followed with a drop of N2.50 to close at N76. Conoil declined by N2.25 to close at N20.25. Dangote Sugar Refinery lost 75 kobo to close at N13.20. ETI dipped by 50 kobo to close at N15. UBA lost 30 kobo to close at N7.50 while FBN Holdings declined by 25 kobo to close at N7.25 per share.

    Total turnover stood at 246.13 million shares valued at N3.69 billion in 3,141 deals. Zenith Bank was the most active stock with 55.34 million shares worth N1.32 billion. FBN Holdings followed with 54.01 million shares worth N398.16 million while Access Bank ranked third with 21.01 million shares valued at N156.59 million.

    On the upside, CAP led with a gain of N3.15 to close at N34.65. Forte Oil followed with a gain of N1.95 to close at N21.95 while Guaranty Trust Bank added 60 kobo to close at N35 per share.

  • Flour Mills lists N20.11b bonds on NSE, FMDQ

    Flour Mills of Nigeria Plc, Nigeria’s largest flour-milling company, at the weekend listed two bonds on the Nigerian Stock Exchange (NSE) and the FMDQ OTC Securities Exchange.

    Flour Mills’ N10.11 billion, three-year, 15.50 per cent fixed rate senior unsecured bond due 2021 and N10 billion five-year, 16 per cent fixed rate senior unsecured bond due 2023 were admitted to the NSE and FMDQ. The bonds were issued under the company’s N70 billion bond issuance programme.

    The bond issues were strongly supported by the institutional investors and oversubscribed by 190 per cent within the price guidance. The proceeds of both issuances were used entirely to refinance existing debt obligations of the company and streamline its maturity profile.

    Commenting on the listing, Chairman, Flour Mills of Nigeria, Mr John Coumantaros said the company was delighted to return to the capital markets with such a successful outing especially with the level of interest shown by investors.

    According to him, the response from the market vindicates the company’s decision to have taken this additional step in diversifying its financing options.

    “We are very pleased to have worked with our advisors, Stanbic IBTC Capital Limited (“Stanbic BTC Capital”)as Lead Issuing House, along with ARM Securities Limited, FBNQuest Merchant Bank Limited, FCMB Capital Markets Limited, United Capital PLC and Zenith Capital Limited as Joint-Issuing Houses, on a highly successful transaction,” Coumantaros said.

    Group Managing Director, Flour Mills of Nigeria, Mr. Paul Gbededo, said the issues would help the company to achieve its strategic objective of sustaining its market leadership position with its foods and agro-allied businesses, while fostering its vision of feeding the nation everyday.

  • Berger Paints, painters renew commitment to business growth

    Berger Paints Nigeria Plc and painters at the weekend reaffirmed their commitments to cordial business relationship that will create values for all stakeholders.

    At the Painters’ Forum held at the company’s training room in Ikeja, Lagos, top management of Berger Paints Nigeria and leading painters discussed mutually beneficial ideas as part of efforts aimed at strengthening the relationship between the company and its stakeholders.

    The forum dwelt on the expected roles of a modern painter, Berger Paint’s range of products, prices and the upcoming inauguration of its automated plant, the first of its type in sub- Saharan Africa.

    Managing Director, Berger Paints Nigeria Plc, Mr Peter Folikwe said the company and painters were partners in progress, hence, the need for constant relationship between the two parties.

    According to him, as Berger Paint’s braced up to sustain its leadership position with the installation of state-of-the art plant, the first in sub-Saharan Africa, painters are critical stakeholders in the patronage of the company’s quality products. He announced the company’s plan to inaugurate its automated plant in the first quarter next year.

    Folikwe urged the painters to always feel free to ask questions on any area of the company’s production. He re-affirmed the company’s continuous adherence to quality products that can compete with any foreign products.

    Earlier in his contribution, Head, Sales and Marketing, Berger Paints Nigeria Plc, Mr Gbenga Suberu explained that the rationale for organising the forum was to bring the painters closer to the company as they as they advise customers in the areas of colour choice.

    He added that the forum shall be held constantly because of changing dynamics in the paints industry and the need for both paint manufacturers and consumers to move with time.

    “These are our specifiers and they are also our end users. First and foremost, we want to get feedbacks from them and also educate them on how best they can apply our products and that is why the training section is also organised for them. From these feedbacks, we can continue to provide products that will suit their application,” Suberu said.

    According to him, Berger Paints in a couple of weeks from now will be 60 years. The company has been known for quality. People talk about the price, but you know it must match the quality. The take home from this forum is that we are still standing on the quality that we are known for Berger is a brand.

    He, however, urged government to forestall fake and cheap paints by regulating what is being produced and sold in the Nigerian market in order to prevent harmful effects of such production.

    Head, Technical, Berger Paints Nigeria Plc, Mrs Ronke Olajubu urged painters to be more professional in their choice of paints for clients by taking into consideration the type of environment, especially, the moisture level as this and other factors determine the quality and colour of paints to be used.

    Chairman, Ikorodu Painters Association, Mr Monsuru Onipede who praised the company on its famous quality products, urged the management to continue to educate owners of houses on the importance of using quality paints.

    “This will help us to talk less while trying to convince our customers to choose their quality paints products,” Onipede said.

    Public Relations Officer, Lagos Painters Association, Mr Sheu Arowolo said Berger Paints’ products are some of the best paints in the market as of today.

  • Second sovereign Sukuk set for oversubscription

    The Federal Government at the weekend laid out the successes of its maiden N100 billion Sukuk and the attractions of its second N100 billion Sukuk amid calls by enthusiastic ethical and general investors for increase in the size of future issuance to accommodate huge demand for the alternative bond issue.

    The Federal Government, through the Debt Management Office (DMO), is raising N100 billion through a seven-year tenured Sukuk Al Ijarah (Lease) with annual rental rate of 15.743 per cent. The rental rate is payable twice a year while the bullet sum will be paid at maturity.

    Application list for the Second Sovereign Sukuk opened Thursday, December 6, 2018 and will close on Monday December 17, 2018. Minimum subscription is N10,000 at N1,000 per unit and in multiples of N1,000 thereafter. The second Sukuk, like the maiden issue, will be listed on the Nigerian Stock Exchange (NSE) and FMDQ OTC Securities Exchange.

    The Federal Government had in September 2017 floated its first sovereign Sukuk, a N100 billion seven-year issue with a rental rate of 16.47 per cent. It was oversubscribed by 5.8 per cent.

    Parties to the second Sukuk confirmed at the weekend that investors have started submitting applications for the issue. A non-interest financial institution indicated interest to take up to 10 per cent of the issue size at the weekend.

    At an interactive session in Lagos, Director General, Debt Management Office (DMO), Mrs. Patience Oniha, said the Sukuk model started off to a huge success and has become a win-win instrument for all stakeholders.

    She said while government will not be able to exceed the issue size of N100 billion for the second sovereign Sukuk, the enthusiasm shown so far has further strengthened government’s confidence on the depth of the demand for Sukuk bonds.

    According to her, government will consider increasing the issue size in its future calendar as well as the utilisation of the Sukuk model for funding of other critical infrastructures such as power projects.

    She reiterated the commitment of the government to creating enabling environment for the development of the alternative non-interest capital market in order to widen pool of capital for corporate issuers and national development.

    “The Sukuk model is a model that has worked; it is a win-win for everybody. We got a lot of encouragement from stakeholders, including the contractors who were excited about secured payment for work done,” Oniha said.

    She outlined that the Sukuk instrument allows for transparency on the use of funds in a way that funds are used specifically for the identified projects.

    According to her, the Sukuk has led to a multiplier effect that created jobs around the country.

    Group Head, Non Interest Banking, Sterling Bank Plc, Dr. Basheer Oshodi; said non-interest financial institutions should be given more consideration in the allotment of the Sukuk noting that substantial subscriptions were returned as excess monies during the maiden Sukuk.

    Managing Director, Lotus Financial Services Limited, Mrs Hajarat Adeola said the second sovereign Sukuk provides opportunity for the private sector to strengthen its partnership with the government in the quest for national development while earning competitive returns.

    She noted that the second Sukuk will deepen the capital market and provide investors with alternative instrument to widen their portfolios.

    She pointed out that the spread of the roads projects being funded by Sukuk across the geopolitical zones and the economic advantages of such roads have democratised the gains of the Sukuk issuance in such a way that nearly every Nigerian feels the positive impact.

    The net proceeds of the Sukuk will be used to construct and rehabilitate 28 roads across the country. The Financial Regulatory Advisory Council of Experts (FRACE) of the Central Bank of Nigeria (CBN) has certified that the Sukuk complies with the principles of Islamic commercial jurisprudence. The FRACE however noted that the listing on the Exchanges may only be done after the commencement of the road projects that formed the basis of the Sukuk assets.

  • Diamond Bank rewards customers with car, N59m

    Diamond Bank Plc at the weekend rewarded 1,016 customers with about N59 million in cash and a brand new car during its 2018 3rd DiamondXtra quarterly draw.

    The total of 1,016 winners emerged all over the country as one of the bank customers- Uche Ann Danniel won the star prize of Hyundai accent brand new car and another customer emerged the winner of education grant allowance of N100,000 every month for the period of five years.

    Also N1 million rent for a year support was given to another customer, 45 customers were rewarded with N500,000 each, 300 customers won N100,000 each, another set of 300 customers won N50,000 each while another five customers won N 20,000 each.

    Head, Consumer Liability Products, Diamond Bank Plc, Mr Osita Ede, said that the draw was aimed at rewarding customers for their loyalty to the bank.

    Osita urged the bank customers to be part of the promising reward system by visiting the nearest Diamond Bank branch to open DiamondXtra account and save at least N5,000 to stand a chance of winning from multiple increments in their savings plan of  N5,000.

    He added that the reward scheme is open to new and existing customers with the DiamondXtra account.

  • Equities lose N122b amid profit-taking

    After two consecutive positive trading sessions, Nigerian equities yesterday witnessed a new round of profit-taking as investors sought to lock in gains recorded in the past trading sessions.

    Benchmark indices at the Nigerian stock market showed average decline of 1.07 per cent, equivalent to net capital loss of N122 billion. With this, average year-to-date return dropped to -19.41 per cent.

    The All Share Index (ASI)-the value-based index that tracks share prices at the Nigerian Stock Exchange (NSE), declined from its opening index of 31,151.68 points to close at 30,819.10 points. Aggregate market value of all quoted equities also dropped from its opening value of N11.373 trillion to close at N11.251 trillion.

    The negative overall market position was driven largely by losses recorded by large-cap stocks in the manufacturing and banking sectors. The NSE Industrial Goods Index led with a drop of 1.6 per cent. The NSE Banking Index followed with a loss of 0.8 per cent while the NSE Consumer Goods Index dipped by 0.3 per cent. Meanwhile, the NSE Oil & Gas Index rose by 0.5 per cent while the NSE Insurance Index appreciated by 0.2 per cent.

    There were 22 losers to 17 gainers. Dangote Cement-NSE’s most capitalised stock, and Nestle Nigeria- NSE’s highest-priced stock, led the losers with a drop of N5 each to close at N185 and N1,480 respectively. Okomu Oil Palm followed with a loss of N3.50 to close at N72. Guinness Nigeria declined by N1 to close at N73. Unilever Nigeria lost 60 kobo to close at N38.90. Stanbic IBTC Holdings depreciated by 50 kobo to close at N47. Zenith Bank dropped by 35 kobo to close at N23.50. Guaranty Trust Bank dipped by 30 kobo to close at N35 while Access Bank lost 20 kobo to close at N7.30 per share.

    On the positive side, UAC of Nigeria (UACN) led with a gain of 50 kobo to close at N10. UACN in its tradition of seamless transition yesterday announced the retirement of its Group Chief Executive Officer, Mr Abdul Bello and the appointment of Executive Director, Corporate Services, Mrs Omolara Elemide, as acting Group Chief Executive Officer, with effect from January 1, 2019. Cement Company of Northern Nigeria followed with a gain of 25 kobo to close at N16.50. Oando rose by 20 kobo to close at N5.15. Cutix and Custodian Investment added 15 kobo each to close at N1.97 and N5.10 while Champion Breweries chalked up 14 kobo to close at N1.59 per share.

    The momentum of activities improved with turnover volume and value rising by 41.4 per cent and 7.8 per cent to 280.9 million shares valued at N2.5 billion. FBN Holdings was the most active stock with 92.48 million shares worth N707.26 million. Diamond Bank followed with 68.22 million shares worth N59.52 million while Ikeja Hotel placed third with 34.42 million shares valued at N58.52 million.

    “The losses today (Thursday) have led to attractive entry prices for investors to take advantage of. Thus, we expect bargain hunting in bellwethers will help drive positive performance in (Friday) tomorrow’s session,” Afrinvest Securities stated.

    “Our outlook for equities in the near-to-medium term remains conservative, in the absence of a near term positive catalyst and amidst brewing political concerns,” Cordros Capital stated.