The Nation Newspaper

Category: Equities

  • Zenith Bank declares N9.42b interim dividend

    The board of directors of Zenith Bank Plc has approved distribution of N9.42 billion to shareholders as interim dividend for the half-year ended June 30, 2018.

    The breakdown of the interim dividend indicates a dividend per share of 30 kobo, 20 per cent above 25 kobo paid as interim dividend for the first half of 2017. The bank had distributed N7.5 billion as interim dividend for the first half of 2017.

    Key extracts of the audited report and accounts of the bank for the six-month period ended June 30, 2018 released yesterday at the Nigerian Stock Exchange (NSE) showed 15.3 per cent decline in gross earnings and a modest growth of 8.5 per cent in net profit after tax. Profit after tax rose to N81.7 billion in first half 2018 as against N75.3 billion recorded in comparable period of 2017. Profit before tax rose from N92.2 billion to N107.4 billion. Gross earnings declined to N322.2 billion as against N380.4 billion.

    Zenith Bank had distributed N84.8 billion to shareholders as cash dividend for the 2017 business year, representing 33.7 per cent increase on N63.42 billion paid for the 2016 business year. Shareholders received a final dividend per share of N2.45, in addition to an interim dividend of 25 kobo, bringing total dividend per share to N2.70 for the 2017 business year.

    The bank had distributed N63.42 billion to shareholders for the 2016 business year, representing a dividend per share of N2.02. The increase in dividend payout underlined the improvement in the performance of the bank in 2017.

    Key extracts of the audited report and accounts of Zenith Bank for the year ended December 31, 2017 showed that gross earnings rose by 46.7 per cent from N508 billion in 2016 to N745.19 billion in 2017. Profit before tax increased from N156.75 billion to N203.46 billion. After taxes, net profit rose by 37 per cent to N177.93 billion in 2017 as against N129.65 billion recorded in 2016. Earnings per share thus improved from N4.12 in 2016 to N5.66 in 2017.

  • Notore Chemical lists N100.75b shares on NSE

    •Plans N11.3b turnaround maintenance

    Sotore Chemical Industries (Notore) Plc yesterday listed its entire paid up share capital on the Nigerian Stock Exchange (NSE), opening up the agro-allied company to the general investing public 13 years after it was privatised by the Federal Government.

    A total of 1.612 billion ordinary shares of Notore were listed at N62.50 per share under the agro-allied and chemical subsector of the NSE. Notore, a vertically integrated agro-allied, chemical and power group based in Onne, Rivers State, has six subsidiaries including Notore Supply & Trading Mauritius Limited, Notore Power Limited, Notore Seeds Limited, Notore Foods Limited and Notore Industrial City Limited.

    Notore’s turnover has grown from N21.285 billion in 2013 to N35.985 billion in 2017 while profit after tax rose from N1.694 billion in 2013 to N8.652 billion in 2017.

    Chairman, Notore Chemical Industries (Notore) Plc, General Yakubu Gowon (rtd) said the listing of the company on the Exchange was a step in the right direction as this will make the company to be stronger.

    According to him, the listing will provide an avenue for growth and provide liquidity for the business

    “We can now continue to improve and expand upon our current activities, seek out other areas for growth and continue to impact the lives of the average farmer and farming family,” Yakubu said.

    He noted that story of Notore is one such that will impact lives, either directly or indirectly adding that the company will work with other stakeholders to achieve more milestones in the years ahead.

    Group Managing Director, Notore Chemical Industries (Notore) Plc, Mr. Onajite  Okoloko, said the listing would further support Nigerian  government’s effort to deepen the capital market while improving liquidity and tradability of the company’s shares.

    He said the listing would increase visibility and credibility of the company in the Nigerian market and beyond as well as provide access to capital that will fund the company’s future growth initiatives.

    He pointed out that Notore’s strength lies in its huge potential to diversify its revenues due to its favourable location within a prolific gas hub and access to a jetty, which guarantees easy export of any products manufactured in the facility.

    According to him, Notore is the only urea producer in sub-Sahara Africa with control over gas supply and has vast distribution network in the local Nigerian market. Notore currently produces 1,000 metric tonnes of urea fertilizer on a daily basis.

    “Notore sells 75 per cent of its urea fertilizer locally and export 25 per cent to leading international traders such as Helm AG, Ameropa and Yara.  Notore is a licensed independent power producer, which generates electricity for use in the fertilizer plant and residential estate with excess capacity available for sale to nearby offtakers,” Okoloko said.

    He said Notore has secured approval for $37 million facility to fund its turnaround maintenance programme (TAM) including acquisition and installation of back-up power supply and critical plant spares.

    He noted that the TAM is aimed at restoring the daily production capacity of the company to its 1,500 mtpd design production capacity, adding that Notore is expected to have an incremental production of approximately 150,000mt annually over its current average annual production of 300,000mt.

    He outlined that in the medium term; Notore will develop new compound fertilizer blends specifically for major growth crops, expand its seed business and develop a crop protection business.

    “We will also leverage the company’s free zone developer status to develop the proposed industrial complex into a gas hub and an integrated logistics service provider to the oil and gas sector,” Okoloko said.

    He added that dredging activities are expected to commerce on Notore’s privately owned jetty in 2019, increasing the jetty berth capacity from 15,000mt vessels to 25,000mt.

    He assured that the company would continue with its strategy of creating substantial value and building a strong organisation that will support the agricultural sector through the availability of good quality inputs and trainings to the farmers.

    Chief Executive Officer, Nigerian Stock Exchange (NSE), Mr Oscar Onyema described the listing of Notore as a promising development in the agro-allied and petrochemical sector as it will encourage more local players to explore the different opportunities in the capital markets for raising long term capital.

    He noted that increased participation of indigenous companies in the capital markets will increase investors’ confidence and entrench good corporate governance, transparency and sustainability in the sector.

     

     

  • NSE lifts Fidson to medium-price stock

    The Nigerian Stock Exchange (NSE) yesterday reclassified Fidson Healthcare Plc from low-priced stock to a medium-price, enhancing the price discovery and trading liquidity for the healthcare company. The reclassification took effect from August 1, 2018.

    As a medium-priced stock, stockbrokers could move the share price of Fidson with a minimum volume of 50,000 shares as against 100,000 minimum shares required for low-priced stocks. Also, the tick size for Fidson will change from one kobo to five kobo, enabling the share price of the healthcare company to rise faster.

    The NSE had recently classified quoted companies into three categories-high-priced, medium-priced and low-priced stocks, based on their market price.

    The high-priced stocks consist of large-cap equities that are priced at N100 per share or above for at least four of the last six trading months, or new security listings that are priced at N100 or above at the time of listing on the Exchange.

    The medium-priced stocks  consist of medium-priced equities that are priced at N5 per share or above but less than N100 per share for at least four of the last six months, or new security listings that are priced at N5 per share or above but less than N100 per share at the time of listing on the Exchange.

    The low-priced stocks, where majority of listed companies fall, consist of equities that are priced at one kobo per share or above but below N5 per share for at least four of the last six months, or new security listings that are priced at one kobo per share or above but below N5 per share at the time of listing on the Exchange.

    Stocks under high-priced group shall have price change with minimum of 10,000 units; stocks under medium-priced group shall have price movement with a minimum of 50,000 units while stocks under low-priced group shall have price change with minimum volume of 100,000 units.

    According to the Exchange, Fidson gained above the N5 mark on March 21, 2018 and traded above N5 up till close of business on July 25, 2018, which indicates that Fidson has traded above N5 in at least four out of the last six months and therefore should be reclassified from low price stock to mid-price stock.

     

  • Equities open August with N147b loss

    Against the background of a net capital depreciation of N456 billion in July, Nigerian equities started the new month on a negative note as investors continued realignment of their portfolios.

    Benchmark indices at the Nigerian Stock Exchange (NSE) showed average decline of 1.09 per cent yesterday, representing net capital depreciation of N147 billion. This depressed the average year-to-date return for Nigerian equities to -4.26 per cent.

    The All Share Index (ASI)-the main value-based index at the Exchange dropped by 404.95 basis points or 1.09 per cent to close at 36,612.83 points. Aggregate market value of all quoted equities also declined correspondingly by N147 billion to close at N13.263 trillion.

    With 21 gainers and 24 losers, the decline was driven by losses recorded by mid and large-cap stocks including Nestle Nigeria, International Breweries, Chemical & Allied Products (CAP), Dangote Cement and Nigerian Breweries.

    Most sectoral indices closed negative with the NSE Consumer Goods Index leading with a drop of 2.3 per cent. The NSE Banking Index declined by 0.7 per cent while the NSE Industrial Goods Index dipped by 0.4 per cent. On the positive side, the NSE Oil & Gas Index appreciated by 0.6 per cent while the NSE Insurance Index closed flat.

    Neimeth  International Pharmaceuticals recorded the highest price gain of 10 per cent, to close at 55 kobo per share. Jaiz Bank gained 8.62 per cent to close at 63 kobo, while Okomu Oil appreciated by 8.43 per cent to close at N81 per share. Mutual Benefit Assurance appreciated by 8.33 per cent  to close at 39 kobo, while Union Diagnostic & Clinical Services gained 7.69 per cent to close at 28 kobo per share.

    On the negative side, CAP and Royal Exchange led the losers with a drop of 10 per cent each, to close at N31.50 and 27 kobo per share respectively. International Breweries shed 9.73 per cent to close at N33.40, per share. Unity Bank declined by 9.30 per cent to close at 78 kobo while Equity Assurance dropped by 9.09 per cent to close at 20 kobo per share

    Total turnover stood at 240.21 million shares worth N4.99 billion in 3,494 deals. Zenith Bank topped the activity chart with 94.86 million shares valued at N2.19 billion. United Bank for Africa followed with 28.67 million shares worth N271.9 million while Nigerian Breweries traded 15.11 million shares valued at N1.55 billion.

    Analysts were cautiously optimistic of a rebound in the medium to long-term, although political and macroeconomic risks are expected to continue to moderate the attractive valuations of Nigerian equities in the immediate period.

    “We guide investors to trade cautiously in the short-to-medium term, as the absence of a positive one-off catalyst and brewing political concerns, continue to cast a shadow on our outlook for risky assets. However, the likelihood of recovery in the long term remains supported by stable macro-economic fundamentals,” Cordros Capital stated.

  • Equities lose N456b in July despite H1 earnings

    Nigerian equities lost N456 billion in July as political risks overshadowed potential corporate earnings in first half. The steep decline in July left investors with a seven-month net loss of N199 billion yesterday as against net capital gain of N257 billion recorded at the end of first half.

    Benchmark indices at the Nigerian Stock Exchange (NSE) closed on the negative, with the average month-on-month decline of 3.29 per cent and year-to-date decline of 3.20 per cent. Most large-cap quoted companies have already released their half-year results, in line with extant rules at the Nigerian stock market which requires quoted companies to submit their quarterly report not later than 30 days after the end of the quarter.

    The All Share Index (ASI) – the main value-based index that tracks share prices at the Nigerian Stock Exchange (NSE) closed yesterday at 37,017.78 points as against 38,278.55 points recorded at the beginning of the month.

    Aggregate market value of all quoted equities at the NSE also declined to close July at N13.410 trillion compared with N13.866 trillion recorded at the beginning of the month.

    From a net capital gain of about N1.7 trillion at the height of its rally in the first quarter, Nigerian equities had closed the second quarter almost flat with average gain of 0.09 per cent for the six-month period ended June 30, 2018, compared with average gain of 8.53 per cent recorded at the end of first quarter.

    Nigerian equities had recorded average loss of 7.77 per cent in the second quarter, equivalent to net capital depreciation of N1.13 trillion compared with capital gain of N1.384 trillion recorded by the end of first quarter. The ASI closed the first half at 38,278.55 points as against its 2018’s opening index of 38,243.19 points. Aggregate market value of all quoted equities on the NSE closed the six-month period at N13.866 trillion as against N13.609 trillion recorded at the beginning of the year, representing net gain of N257 billion or 1.88 per cent. The difference between the ASI and aggregate market value was due to supplementary listings of shares.

    Aggregate market value of all quoted equities had closed the first quarter of 2018 at N14.993 trillion as against its year’s opening value of N13.609 trillion, representing a net increase of N1.384 trillion or 10.17 per cent. The ASI also rose from its 2018’s opening index of 38,243.19 points to close the first quarter at 41,504.51 points, representing average gain of 8.53 per cent.

    Nigerian equities had in January 2018 hit all-time high with market capitalisation of N15.3 trillion while the ASI had risen to 43,041.54 points, its highest index points since October 2008. However, profit-taking fluctuations that started in March 2018 worsened considerably into a swinging selloff in May 2018. Nigerian equities lost N1.15 trillion in May 2018, equivalent to average month-on-month decline of 7.67 per cent.  Nigerian equities had lost N557 billion in March and showed restraint with a modest loss of N44 billion in April.

    The chequered performance of the stock market in first half 2018 counterbalanced the optimism that started the year as Nigerian equities closed 2017 with full-year average return of 42.30 per cent, ranking within the top 10 best-performing equities across the world. Aggregate market value of quoted equities had closed 2017 with net capital appreciation of N4.36 trillion.

    Analysts said they expected attractive valuations due to the recent share price decline and considerable growth in corporate earnings to stimulate price recovery.

    “We expect this bullish sentiment to be maintained in subsequent trading sessions as investors take position ahead of the release of more first half 2018 results. Nevertheless, we do not rule out the possibility of profit taking following four consecutive days of gains,” Afrinvest Securities stated.

     

  • Transcorp grows H1 net profit by 161% to N10.9b

    Transnational Corporation of Nigeria (Transcorp) Plc recorded impressive growths across key performance indices in the first half of this year as the conglomerate rode on the back of robust growths in its power and hospitality businesses to drive group performance.

    Key extracts of the interim report and accounts of Transcorp for the half-year ended June 30, 2018 showed that group turnover rose by 58 per cent to N54.09 billion in first half 2018 as against N34.17 billion recorded in corresponding period of 2017. Gross profit grew by 65 per cent to N24.57 billion in first half 2018 as against N14.87 billion recorded in first half 2017.

    Profit before tax jumped by 164 per cent from N4.53 billion to N11.94 billion while profit after tax jumped y 161 per cent to N10.88 billion in first half 2018 compared with N4.16 billion in corresponding period of 2017. Earnings per share also leapt from 3.87 kobo in first half 2017 to 11.60 kobo in first half 2018.

    Transcorp’s group strategic investments include power, hospitality, agribusiness and oil and gas sectors. The group’s notable businesses are Transcorp Hilton Hotel, Abuja; Transcorp Hotels Calabar; Transcorp Power Plc and Transcorp Energy Limited.

    President, Transnational Corporation of Nigeria (Transcorp) Plc, Mr. Adim Jibunoh the said the first half results showed the strength of the conglomerate’s business model and its ability to deliver significant value to its stakeholders.

    “At Transcorp, we continuously strive to achieve our long-term targets in each of the sectors we operate in,” Jibunoh said.

    He pointed out that the strong performance was due to the increase in power generation resulting from improved gas supply and increased generation capacity of its subsidiary, Transcorp Power Limited as well as Transcorp’s hospitality business, which maintained its market leadership with occupancy levels that are ahead of competition.

    He added that service excellence is also a core focus of the group, with continuous improvement in delighting its customers noting that the ongoing renovation of the Transcorp Hilton Abuja is part of this service ethos of the group.

    He expressed confidence that the group’s business strategy, strong culture of efficiency and overall corporate governance would sustain the strong growth momentum to ensure the conglomerate close the year on a very strong position.

    The first half performance further reinforced Transcorp’s turnaround after the conglomerate recovered from a pre-tax loss of N5.93 billion in 2016 with a pre-tax profit of N12.31 billion in 2017. The audited report and accounts of Transcorp for the year ended December 31, 2017 showed that turnover rose by 35 per cent from N59.42 billion in 2016 to N80.28 billion in 2017. Gross profit increased by 21 per cent to N36.42 billion in 2017 compared with N30.17 billion in 2016. It reversed from a loss before tax of N5.93 billion in 2016 to profit before tax of N12.3 billion in 2017. After, taxes, net profit stood at N10.61 billion in 2017 as against net loss of N1.13 billion in 2016.

    The balance sheet position of the conglomerate also improved in 2017 as total assets rose by 23 per cent to N285.52 billion in 2017 as against N232.16 billion in 2016. Shareholders’ funds rose by 11 per cent from N86.45 billion in 2016 to N95.71 billion in 2017.

     

     

  • Diamond Bank drives H1 growth with digital banking

    Diamond Bank Plc grew its top-line to N98.5 billion in the first half of this year through its focus on retail digital banking which hit three million customers.

    Key extracts of the interim report and accounts of Diamond Bank Plc for the six-month period ended June 30, 2018 released yesterday at the Nigerian Stock Exchange (NSE) showed that gross earnings rose to N98.5 billion in first half 2018 as against N97.9 billion recorded in comparable period of 2017. Non-interest income rose by 6.4 per cent to N18.8 billion on higher fees from retail transactions on mobile platform while customers’ loan volume decreased by 3.6 per cent to N728.7 billion as maturities exceeded new loans during the period. Investments in fixed income securities increased by 8.0 per cent to N241.7 billion over the same period.

    Although the bank’s net interest income reduced by 14.4 per cent to N46.2 billion due to lower interest income from loans and investments, and higher interest expense on deposits; impairment charges declined by 2.9 per cent to N18.39 billion. Pre and post tax profits stood at N2.92 billion and N1.8 billion respectively in first half 2018 as against N9.52 billion and N8.02 billion recorded in corresponding period of 2017.

    Chief Executive Officer, Diamond Bank Plc, Mr. Uzoma Dozie said the first half report underscored the bank’s strong focus on the Nigerian market, especially the retail business segment through its digital penetration strategy.

    He pointed out that the first half results showed that the bank’s digital strategy is paying off as the institution recorded a milestone figure of three million digital customers as well as a significant increase in its mobile platform transaction fees.

    He noted that the  economy has continued to record improvements because of stable, higher than anticipated oil prices adding that the economy has witnessed 15 months of expansion, although investor sentiment has remained mixed caused in part by the election season factor.

    “We have capitalised on the positive macro environment to sustain interest income in the short run with positive prospects for growth and have made progress in growing non-interest income. Importantly, we have continued to build awareness of Diamond Bank in the wider financial ecosystem to develop new frontiers in retail banking,” Dozie said.

    He pointed out that in addition to retail banking, the bank is investing more resources in its mid-market business banking services to seize the opportunities emerging in that segment.

    “In the second half of 2018, these investments will lead to improved profitability overall.  Despite a tough six months being reported, the outlook for 2018 remains bright for the bank as we continue to focus on a return to strong profitability and improvement in other key performance indices,” Dozie said.

  • Transcorp Hotels grows first half net profit by 83%

    Transcorp Hotels Plc recorded significant growths in turnover and profit in the first half of this year.

    Its net profit after tax rose by 83 per cent to N1.38 billion.

    Key extracts of the interim report and accounts for the first half ended June 30, 2018 showed that turnover rose by 29 per cent while profit before tax and profit after tax grew by 85 per cent and 83 per cent respectively.

    Transcorp Hotels’ group turnover rose from N6.20 billion in first half 2017 to N8.01 billion in first half 2018. Gross profit grew by 31 per cent to N5.89 billion in 2018 as against N4.50 billion in 2017. Profit before tax jumped to N2.02 billion in first half 2018 as against N1.10 billion in first half 2017 while profit after tax leapt from N760 million to N1.38 billion.

    Chief Executive Officer, Transcorp Hotels Plc, Mr. Valentine Ozigbo said the performance of the hospitality group in the first half of this year was driven primarily driven by increase in occupancy, room inventory and aggressive marketing strategies.

    “With the help of a strong and dedicated workforce, we will continue to deliver significant value to our shareholders and unrivalled service excellence to our customers,” Ozigbo said.

    According to him, in line with the company’s long-term strategy of being Africa’s leading hospitality group, the company is investing resources into diversifying its overall guest experience using technology.

    He noted that Transcorp Hotels recently launched the Transcorp Hilton mobile application, which allows guests request for dining services, housekeeping services, valet services and maintenance requests with the click of a button.

    He added that the Transcorp Hilton mobile application also allows guests to read about local attractions in Abuja, explore on-site and off-site recreational services and navigate key locations around the city through the inbuilt map.

    He said that Transcorp Hotels Calabar has also been undergoing an extensive upgrade of its existing technology and internet services, to ensure guests experiences are better personalised and customer service is seamless across digital platforms.

    “This is the only way we can remain competitive in the ever-changing business landscape”, Ozigbo said.

  • Foreign investors lead Nigerian equities with N800b transactions

    Foreign portfolio investors maintained lead as the dominant group in the Nigerian equities market in the past three months to emerge with the largest transactions of about N800 billion in the first half of this year.

    Trading data on domestic and foreign portfolio investments (FPI) at the Nigerian Stock Exchange (NSE) obtained at the weekend showed that foreign investors’ transactions accounted for N799.7 billion within the six-month period ended June 30, 2018, representing an increase of 85.9 per cent on N430.23 billion FPI trading recorded in the comparable period of 2017.

    Foreign investors marginally outpaced Nigerian investors with 50.07 per cent of total value of transactions in first half of 2018 compared with the first half of 2017 when Nigerian investors accounted for 54 per cent of total value of transactions.

    Domestic investors traded N797.47 billion worth of equities during the first half of 2018, 57.9 per cent increase on N505.03 billion traded in comparable period of 2017. Altogether, total transactions at the equities market rose from N935.26 billion in first half 2017 to N1.597 trillion in first half 2018.

    The report however showed a negative trend in FPI trading with more outflows than inflows. Net FPI deficit stood at –N38.41 billion in first half 2018 compared with net positive position of N1.71 billion recorded in first half 2017. Foreign inflows and outflows stood at N380.65 billion and N419.06 billion respectively in first half 2018 compared with inflows and outflows of N215.97 billion and N214.26 billion respectively in first half 2017.

    The FPI report used two key indicators-inflow and outflow, to gauge foreign investors’ mood and participation in the stock market as a barometer for the economy. Foreign portfolio investment outflow includes sales transactions or liquidation of equity portfolio investments through the stock market while inflow includes purchase transactions on the NSE. The NSE report is generally regarded as a credible gauge of foreign portfolio investments in Nigeria as it coordinates data from nearly all active investment bankers and stockbrokers.

    Month-on-month analysis showed that FPI transactions totalled N102.41 billion in June, consisting of inflows of N47.96 billion and outflows of N54.45 billion. Total transactions at the equities market had dropped from N318.27 billion in May 2018 to N187.78 billion in June 2018.

    The report indicated that foreign investors’ outflows from the equities market increased by 124.7 per cent to about N131 billion in May as against N58.25 billion in April. However, there was a 3.45 per cent decrease in foreign inflows to N62.06 billion in May as against N64.28 billion recorded in April.

    Total transactions at the equities market increased by 49.96 per cent from N212.23 billion recorded in April to N318.27 billion in May.

    A five-month report showed that the cumulative transactions from January to May increased by 97.13 per cent to N1.409 trillion in 2018 compared with N714.99 billion recorded in the same period of 2017.

    The latest report stated that the institutional composition of the domestic market increased by 97.87 per cent from N46.51 billion in April to N92.03 billion in May. The retail composition declined by 22.92 per cent from N43.19 billion in April to N33.29 billion in May.

    In April, there was a positive net foreign inflow of N6.03 billion in April 2018 and N36.91 billion for the four-month period ended April 2018. In the comparable period ended April 2017, Nigerian equities had suffered net FPI deficit of N79.73 billion. Further analysis indicated positive net foreign inflow of N30.88 billion in first quarter 2018 compared with a negative net foreign investment position of N86.36 billion in comparable first quarter 2017.

    Month-on-month analysis had shown a positive trend in net foreign investment inflow throughout the first quarter 2018. Foreign inflow totalled N91.75 billion in January 2018 as against outflow of N74.64 billion. Foreign inflow and outflow stood at N44.89 billion and N38.33 billion respectively in February 2018 while foreign inflow and outflow recovered to N69.71 billion and N62.50 billion respectively in March 2018.

    Total transactions at the Nigerian equities market in first quarter 2018 had stood at N878.97 billion compared with N454.48 billion recorded in first quarter 2017. Nigerian domestic investors had accounted for N497.15 billion in first quarter 2018 as against N243.42 billion in comparable period of 2017.

  • Stakeholders chart ways for capital market growth

    •Stockbrokers get new head

    Stakeholders in the Nigerian capital market have underscored the importance of integrity, innovation, investors’ education and professionalism in building a virile capital market that will support sustainable economic growth.

    At the investiture of the new president and sendoff for the immediate past president of the Chartered Institute of Stockbrokers in Lagos, capital market operators and regulators agreed on the need to reinvigorate investors’ education, enhance financial creativity and sustain the core ethics of trust and integrity to stimulate capital market growth.

    Country and Regional Senior Partner, West Africa, PricewaterhouseCoopers (PwC), Mr Uyi Akpata, identified some of the factors militating against competitiveness of the Nigerian capital market to include high transaction cost and dearth of securities.

    Akpata, who delivered a paper titled: “Exploring the Nexus between Capital Market Growth and Economic Development”, outlined that product development, financial literacy and investor education, among others, are some of the issues that must be addressed in order to enhance Nigerian capital market competitiveness.

    According to him, operating in an environment of uncertainties required that the Nigerian capital market is tuned to adapt to the constantly evolving developments in the financial services space by focusing on product innovation and simplification and continued integration of business with technology.

    He added that concerted efforts must be made to create a resilient bond market, create favourable business environment and push for regulatory reform.

    Edo State Governor, Mr Godwin Obaseki urged stockbrokers to take the values of their profession to the political space in order to move the country forward.

    Obaseki explained that every professional stockbroker operates on the premise of my word is my bond and noted that Nigerian politicians needed to embrace this element of integrity in order to ensure economic growth and development.

    He noted that his background in stockbroking over the years had contributed immensely to the efficiency of his administration.

    “Those of us that have corporate background would find out that we are quite different from others as we have an obligation to deliver and under no circumstances must we fail to keep our promise,” Obaseki said.

    He noted that the CIS had come a long way, pointing out that the repositioning that some leaders of the institute undertook over the years have started yielding fruits.

    Obaseki commended the newly elected President, Mr Adedapo Adekoje and assured the institute of the support of his administration.

    He also congratulated the entire stockbroking community on the milestones recorded over the years despite the challenges in the operating environment.

    Acting Director General, Securities and Exchange Commission (SEC), Ms Mary Uduk, urged stockbrokers to do more to take investor education to people at the grassroots rather than concentrating their activities in urban areas.

    Chief Executive Officer, Nigerian Stock Exchange (NSE), Mr Oscar Onyema said the Exchange would always support initiatives aimed at enhancing the growth of the capital market.

    “We at the Nigerian Stock Exchange are going to be firmly supportive of the new administration and the institute,” Onyema said.

    Chairman, Association of Stockbroking Houses of Nigeria (ASHON),Chief Patrick Ezeagu, also assured that ASHON would continue to support the Institute to attain greatness.

    “ASHON is very delighted to be a part of the Institute because we are like the other part of the Institute, we shall extend the same level of cooperation and support to the new president. It is very important that we must work together to take the Institute to greater heights,” Ezeagu said.

    In his acceptance speech, Adekoje expressed gratitude to the stockbrokers for the confidence reposed in him and urged them to support his administration in order to move the market forward.

    Earlier, CIS immediate past president, Mr  Oluwaseyi Abe thanked the stockbrokers for their support during his administration, noting that many achievements were recorded during his tenure, including the newly acquired corporate office at Ikoyi, stand-alone-certification programme for stockbrokers and sustained initiatives to attract the youths to stockbroking profession among others.