The Nation Newspaper

Category: Equities

  • Investors earn N94b gain on N18.46b trades

    Investors earned N94 billion in net capital in four tradings last week as quoted equities rode on the back of bargain-hunting to stage a recovery.

    After steep declines in the previous weeks, equities started the week with a strong rally that retained considerable value by the weekend, despite profit-taking transactions that dragged the last two trading sessions of the week to negative.

    With 40 gainers to 28 losers, average return for last week closed weekend at 0.67 per cent, equivalent to net capital gain of N94 billion. The recovery reversed the negative year-to-date return to positive at a modest 1.79 per cent.

    Aggregate market value of all quoted equities on the Nigerian Stock Exchange (NSE) rose from its week’s opening value of N14.008 trillion to close at N14.102 trillion. The All Share Index (ASI)-the common index that tracks share prices at the Exchange, also trended upward from its index on board of 38,669.23 points to close at 38,928.02 points.

    Investors traded a total turnover of 1.74 billion shares worth N18.46 billion in 14,790 deals last week compared with a total of 1.75 billion shares valued at N31.18 billion traded in 24,604 deals two weeks ago. The financial services sector was the most active chart with a turnover of 1.17 billion shares valued at N9.695 billion traded in 7,809 deals; representing 67.35 per cent and 52.51 per cent of the total equity turnover volume and value respectively.

    The services industry occupied a distant second position on the activities chart with 293.492 million shares worth N733.407 million in 531 deals while consumer goods sector placed third with 154.09 million shares worth N4.997 billion in 3,002 deals.

    The three most active stocks were United Capital Plc, Ikeja Hotel Plc and United Bank for Africa (UBA)Plc, which altogether accounted for 811.75 million shares worth N3.89 billion in 986 deals, representing 46.71 per cent and 21.05 per cent of the total equity turnover volume and value.

    Also traded during the week were a total of 62,392 units of Exchange Traded Products (ETPs) valued at N1.004 million executed in 13 deals, compared with a total of 202,916 units valued at N1.168 million traded in 19 deals two weeks ago.

    In the sovereign debt segment, a total of 9,850 units of Federal Government valued at N9.999 million were traded last week in 10 deals compared with a total of 10,561 units valued at N10.381 million traded in 20 deals penultimate week.

    Pricing trend analysis showed that there were 40 gainers and 28 losers last week as against 49 gainers and 29 losers in the previous week. Japaul Oil & Maritime Services led the gainers, in percentage terms, with a gain of 22.5 per cent to close at N38. Equity Assurance followed with a gain of 20 per cent to close at N24. Union Bank of Nigeria rose by 10.7 per cent to close at N6.20 while Okomu Oil Palm appreciated by 10.2 per cent to close at N90.40.

    On the downside, Mutual Benefits Assurance led the losers with a drop of 13.9 per cent to close at 31 kobo. AG Leventis Nigeria dropped by 7.6 per cent to close at 49 kobo. Nigerian Breweries lost 5.98 per cent to close at N110 while Berger Paints declined by 5.0 per cent to close at N8.55.

    “Following two days of successive losses in the market, we expect a rebound in the coming week as investors seek for bargain hunting opportunities,” Afrinvest Securities stated in a weekend note on the outlook of the market.

     

  • Lotus Capital to list N1.49b fixed income fund

    LOTUS Capital Halal Investments Limited has received regulatory approval to list its N1.49 billion fixed income fund on the memorandum board of the Nigerian Stock Exchange (NSE).

    A total of 1.487 million units of Lotus Capital Fixed Income Fund of N1, 000 each will be listed by way of introduction on the memorandum board of the Exchange. The Quotation Committee of the NSE has approved the listing of the Lotus Capital Fixed Income Fund, a process that will pave way for the trading of the units on the Exchange.

    The Lotus Capital Fixed Income Fund had earlier been approved by Lotus Capital’s Shari’ah Advisory Board as well as the Securities and Exchange Commission (SEC).

    There are 46 mutual funds already listed on the memorandum quotation of the Exchange including Lotus Capital Halal Investment Fund, another mutual fund under the management of Lotus Capital Halal Investments Limited.

    The Lotus Capital Fixed Income Fund is an open-ended collective investment scheme which invests strictly in Shari’ah-compliant fixed income instruments and contracts such as sovereign and sub-sovereign sukuk, corporate sukuk, Shari’ah-compliant fixed term investments, murabaha or cost-plus financing contracts and ijarah or lease contracts.

    Based on the Shari’ah, this implies the Fund’s investments must be ethical and it must not invest in interest bearing instruments such as treasury bills, conventional bonds or conventional bank deposits.

    Also, the Fund will also not invest in the stock market in order to avoid the associated volatility. The Fund intends to distribute 80 per cent of its returns to investors on a quarterly basis

    According to the fund manager, the Lotus Capital Fixed Income Fund seeks to attract investors interested in low risk, liquidity, capital preservation, shari’ah-compliant investment, competitive returns,     portfolio diversification and a regular income stream

    The Lotus Capital Fixed Income Fund projects a return on investment of 15 per cent for 2018. However, the Fund’s returns will be determined by the performance of the underlying assets and therefore, may deviate significantly from the forecast.

  • German companies rake in $1b turnover

    EIGHTY-FIVE German companies based in Nigeria pool more than $1 billion in yearly turnover as  the two countries continue to explore ways to deepen their bilateral trade relationship.

    Head, Delegation of German Industry and Commerce in Nigeria (DGIC), Dr. Marc Lucassen said more than companies are in a two-way trade that includes export of crude oil from Nigeria and import of goods from Germany.

    According to him, there are efforts to ensure more German investors come to the country, which will boost the bilateral relationship.

    Speaking against the background of the seventh the German-Nigerian Business Forum (GNBF) scheduled to hold from Wednesday in Lagos, Lucassen noted that German companies provide employment to 10,000 Nigerians. The GNBF, which holds alternately in Germany and Nigerian, was started by the Germany Business Association and Afrika-Verein der Deutschen Wirtschaft in 2007.

    He expressed confidence in the economic prospects of Nigeria noting that German companies are in Nigeria to stay.

    “The Germany business community is here in Nigeria to slowly grow and we are here to stay. We will not go because of economic crises. We are here for the good and bad times.  We are covering all sectors, from finance, infrastructure, energy, automobile, to information technology. So, Germany firms are in all sectors and our target is to scale up this presence and to do this, our job as a bilateral organisation is to provide the platform for  Germany investors to come, look at the place, get  a  feel  of  the environment and start to invest,” Lucassen said.

    He however urged Nigerian investors to show more confidence in the economy by investing in Nigeria, pointing out that foreign investors often follow the lead of domestic investors.

    “Foreign investors will come if they see that Nigerian investors are investing as well. Although there are already German firms in Nigeria, what we also are interested in is to partner Nigerian investors and to co-finance Nigerian investors because this will tell German investors that Nigerians believe in their own economy,” Lucassen said.

    He said the forum with the theme “Leveraging partnership for economic growth” would highlight the importance and implementation of partnership in sectors for both Nigeria and Germany.

     

    “Over the years, there have been initiatives to establish a collaborative and mutually beneficial bi-lateral relationship across broad-ranging sectors including diplomacy, security as well as trade and investment,” Lucassen said.

    According to him, the two-day business forum will focus on key sectors such as agribusiness and food processing; energy with  a special focus on renewable energy and energy efficiency; infrastructure and access to finance; digitization and startgups; technical vocational education and training.

    He added that the forum would also feature panel discussions by different experts and stakeholders on the opportunities, challenges and latest developments in those fields.

     

     

  • Banking security summit holds June 21

    A global data security company, OneSpan, in collabo-

    ration with MAXUT Consulting, will on  Thursday hold its third Annual Banking Security Summit.

    The summit, scheduled for Radisson Blu Hotel in Victoria Island, Lagos, has as its theme: ”Digital channels and open banking security”.

    MAXUT Consulting, Senior Vice President, Mr Olumide Ajayi-Obe  said the summit would experts the give opportunity to discuss the  state of e-banking and payments security landscapes as well as share experiences from around the world.

    According to him, OneSpan, formerly VASCO Data Security, is in Nigeria to share its vision and strategy for securing digital interactions offered by banking and financial services industry and to better understand the specific needs of the Nigerian market.

    “OneSpan recognises the growing fraud trends in mobile banking and payments around the world and thus OneSpan and MAXUT , will be announcing new adaptive authentication platform and solutions available to Nigerian banking and financial technology customers to provide them with even more cost-effective and advanced solutions for securing all digital channels,” Ajayi-Obe said.

    Speakers at the include Nigeria Inter-Bank Settlement System (NIBBS) Managing Director, Mr Ade Shonubi, Central Bank of Nigeria (CBN)  Director, Banking and Payment Systems, Mr Dipo Fatokun, and Chief Digital Officer, ALAT/WEMA Bank, Mr Dele Adeyinka.

    Other speakers are Mr Eddy Ogbogu, Group Executive, Operations and Technology, Ecobank, Lome, Togo;  Dr David Isiavwe, President, Information Security Society of Africa- Nigeria (ISSAN) and Dr Segun Aina, Fintech Association of Nigeria

     

  • May & Baker signs sickle cell drug production deal

    May & Baker Nigeria Plc has signed an agreement with the National Institute for Pharmaceutical Research and Development (NIPRD) for the commercial production of anti-sickle cell drug, NAPRISAN.

    The agreement was signed in Abuja by May & Baker Nigeria Managing Director Mr. Nnamdi Okafor and NIPRD Acting Director-General Professor Olabayo Kunle, with Minister of Health, Professor Isaac  Adewole as a witness.

    The Federal Executive Council (FEC) recently ratified the Memorandum of Understanding (MoU) between NIPRD and May & Baker Nigeria, leading to the signing of the commercialisation agreement.

    Okafor said his company took on the task of producing NIPRISAN to provide succour to  many homes who have  been weighed down by the agony of sickle cell anaemia.

    “We expect this product to be a commercial success and a leading product of our company  as we intend to give it all the attention required,” Okafor said.

    NIPRISAN is an anti-sicklling formula   discovered by NIPRD researchers several years back. Its commercialisation in Nigeria is expected to substantially relieve the sickle cell disease burden which is responsible for the death of hundreds of thousands of people in the country yearly and has brought agony to many families.

    NIPRISAN is one of the few successful formulations that have been acknowledged to treat the sickle cell anaemia. With its commercial production May & Baker will not only have added to her large basket of successful quality medicines but would set the blaze in encouraging local research into various medicines.

    Analysts said they expected the new deal to encourage researchers to do more work that would throw up local medicaments for the disease burden in Africa.

    Analysts expected the latest deal to further impact on the operational performance of May & Baker, which has seen considerable growth in recent years.

    Audited report and accounts of May & Baker Nigeria for the year ended last December 31 showed that turnover grew by 10 per cent from N8.5 billion in 2016 to N9.4 billion in 2017. Gross profit grew by an impressive 29 per cent from N2.5 billion in 2016 to N3.3 billion in 2017.

    Cost containment strategies saw cost of sales ratio declining to 64.91 per cent last year from 70.0 per cent in 2016. Earnings margins followed the same growth pattern as the company earned 12 kobo in profit from every Naira it invested.

    Profit before tax grew by 75 per cent from N346 million in 2016 to N606 million in 2017 while profit after tax position jumped by 1002 per cent from a loss position of N41 million in 2016 to a profit after tax of N371 million in 2017. The company increased dividend per share to 20 kobo for the last business year.

     

  • Transcorp appoints new ED

    The board of Transnational Corporation of Nigeria (Transcorp) Plc has appointed Mr. Christopher Ezeafulukwe as an Executive Director. The appointment takes effect from July 1, 2018.

    Currently the Group General Counsel and Head, Business Development, Ezeafulukwe will in his new role focus and drive the development of new commercial interests as well as the optimisation of Transcorp’s existing investments in the power and oil and gas sectors.

    Chairman, Transnational Corporation of Nigeria (Transcorp) Plc, Mr. Tony Elumelu described Ezeafulukwe as an “invaluable member of the Transcorp team” whose “insights, drive and commitment to business execution are exemplary”.

    “His appointment will deepen and open new doors of commercial opportunities for Transcorp and all our stakeholders as we pursue our goal of providing power in every home, school, hospital and business enterprise in Nigeria,” Elumelu said.

    Group President, Transnational Corporation of Nigeria (Transcorp) Plc, Mr. Adim Jibunoh, noted that brings exceptional value to the group.

    “We are certain that he will deliver on the high expectations of the board and management,” Jibunoh said.

    Ezeafulukwe brings to this role over 19 years’ experience in business development, legal advisory and company secretariat roles amongst others in a career spanning several industries. He holds an LL.B degree from the University of Lagos, a B.L-second class upper division, from the Nigerian Law School, an LL.M from the University of Lagos and another LL.M in Energy, Environmental & Natural Resources Law from the University of Houston, Texas.

    He is a member of the Nigerian Bar Association (NBA), Institute of Chartered Secretaries & Administrators of Nigeria (ICSAN), Association of International Petroleum Negotiators (AIPN) and until recently a member of the Executive Council of Association of Power Generation Companies of Nigeria.

     

  • Equities lose N37b as investors slow down on blue chips

    The profit-taking trend at the Nigerian equities market continued for the second consecutive trading session yesterday as investors made last-minute trades for ahead of the Muslim’s Eid-ul-Fitri. The Federal Government had declared Friday June 15 and Monday June 18, 2018 as public holiday to celebrate the Muslim’s festival that marks the end of a month-long compulsory fasting period.

    The two main indices at the Nigerian Stock Exchange (NSE) showed average loss of 0.27 per cent, equivalent to net capital depreciation of N37 billion. The sustained decline shaved the average return for Nigerian equities so far this year to 1.79 per cent.

    The All Share Index (ASI)-the main index for Nigerian equities declined from its opening index of 39,031.72 points to close at 38,928.02 points. Aggregate market value of all quoted equities dropped from its opening value of N14.139 trillion to close at N14.102 trillion.

    With nearly two gainers for every loser, the negative overall market position was mainly due to selloffs in large-cap stocks in the oil and gas, manufacturing and banking sectors.

    Seplat Petroleum Development Company led the 17-stock losers’ list with a drop of N14.10 to close at N754.90. Nigerian Breweries followed with a loss of N5 to close at N110. Presco lost N1.70 to close at N72. International Breweries declined by 45 kobo to close at N41.30 while Zenith Bank dropped by 35 kobo to close at N26.40 per share.

    On the positive side, Okomu Oil Palm led 27 other gainers with a gain of N8.40 to close at N90.40. Nascon Allied Industries followed with a gain of 95 kobo to close at N23.15. Stanbic IBTC Holdings rose by 50 kobo to close at N49. Dangote Sugar Refinery added 40 kobo to close at N19.40 while Eterna chalked up 30 kobo to close at N6.30 per share.

    The total volume traded declined by 26.26 per cent to 336.62 million shares valued at N5.25 billion in 3,667 deals. Transactions in the shares of United Capital topped the activity chart with 101.63 million shares valued at N327.68 billion. United Bank for Africa followed with 66.1 million shares worth N720.8 million. Diamond Bank traded 20.21 million shares valued at N31.64 million. Guaranty Trust Bank traded 14.24 million shares valued at N587.3 million while Transnational Corporation of Nigeria recorded a turnover of 13.78 million shares worth N20.48 million.

  • Equities reopen with N63b gain

    The Nigerian equities market reopened yesterday with a strong rally as bargain-hunters shifted demand to financial services and fast moving consumer goods stocks. Benchmark indices at the Nigerian Stock Exchange (NSE) indicated average gain of 0.45 per cent, equivalent to net capital gain of N63 billion.

    The All Share Index (ASI)-the common value-based index that tracks share prices at the Exchange, rose from its opening index of 38,669.23 points to close at 38,844.32 points. Aggregate market value of all quoted equities also increased correspondingly from its opening value of N14.008 trillion to close at N14.071 trillion. Average year-to-date return improved to 1.57 per cent.

    Sectoral indices showed that the positive overall market position was largely driven by gains in the financial services and fast moving consumer goods sectors. The NSE Banking Index appreciated by 1.1 per cent. The NSE Insurance Index and NSE Consumer Goods Index rose by 0.4 per cent each. On the downside, the NSE Industrial Goods Index dropped by 0.9 per cent while the NSE Oil & Gas Index dipped by 0.1 per cent.

    There were 30 gainers against 20 losers. Presco led the gainers with a gain of N3.35 to close at N73.70. Nascon Allied Industries followed with a gain of N1.60 to close at N24. Nigerian Breweries added N1 to close at N118. Flour Mills of Nigeria appreciated by 60 kobo to close at N33. Guaranty Trust Bank rose by 45 kobo to close at N41.60 while FBN Holdings and Stanbic IBTC Holdings added 30 kobo each to close at N10.85 and N48.50 respectively.

    Total turnover stood at 603.17 million shares valu3d at N3.89 billion in 3,832 deals. Ikeja Hotel led the activities chart with a turnover of 279.64 million shares valued at N705 million. United Capital followed with 79.13 million shares worth N253.97 million while Africa Prudential recorded a turnover of 56.77 million shares worth N242.91 million.

    On the downside, Lafarge Africa led the losers with a drop of 75 to close at N39.05. Berger Paints declined by 45 kobo to close at N8.55. Eterna dropped by 31 kobo to close at N6.25. BOC Gases lost 22 kobo to close at N4.21 while Cement Company of Northern Nigeria, Dangote Sugar Refinery and Ikeja Hotel dropped by 10 kobo each to close at N26.50, N19.90 and N2.53 respectively.

    Most analysts expected the market to remain on the upbeat. “We expect the positive performance to be sustained in the subsequent trading sessions as investors continue to hunt for bargain opportunities,” Afrinvest Securities stated.

    Analysts at SCM Capital said they expected “sentiment to remain upbeat on account of continuous bargain-hunting”.

  • Award for Stanbic IBTC

    Stanbic IBTC Bank has been named the “Best Sub-Custodian” in Nigeria for the year by Global Finance magazine.

    The London-based Global Finance magazine, organiser of the awards, announced winners for the 16th World’s Best Sub-custodian Banks following selection from across seven global regions and more than 80 countries.

    The latest win makes it the eighth time in a row that Stanbic IBTC Bank will be adjudged the best in the country, in recognition of its leadership in the sector.

    Stanbic IBTC Bank Chief Executive, Demola Sogunle, said winning the award consistently for the last eight years reinforces the bank’s strong management, systems and innovative solutions, and its leadership of Nigeria’s custody sector.

    “We are delighted to be recognised for the eighth time as the best provider of custody services in Nigeria. It is a demonstration of our strength in terms of our management, systems and solutions. This award will energise us to continue to provide unparalleled services to our customers as we raise the bar in the provision of investor services,” Sogunle said.

    According to him, the need for excellent custody services in Nigeria remains strong, driven by the impetus in cross-border investment activities and Stanbic IBTC Bank is well positioned to provide such services.

    The yearly award, instituted 16 years ago, recognises the pivotal role sub-custodians play in business and investment activities through the safekeeping of clients’ assets, such as bonds, stocks and treasury bills. Winners are selected by Global Finance magazine’s editors and reporters, with input from expert sources, from among institutions that reliably provide the best custody services in local markets, regions and to global custodians.

    The criteria used, according to Global Finance, included technology platforms, competitive pricing, customer relations, smooth handling of exception items, technology platforms, quality of service, post-settlement operations, business continuity plans and knowledge of local regulations and practices. Global Finance said it also obtained input from users of sub-custody services. Performance was judged over the period covering January 1 through last December 31.

    Publisher and Editorial Director Global Finance, Joseph Giarraputo noted as custodians deal with increased liability from new regulatory requirements, they are seeking the safest and best sub-custodians with whom to entrust client assets.

    “With these awards, we recognize those sub-custodians that do the best job of meeting their clients’ needs in increasingly complex markets,” Giarraputo stated.

    Stanbic IBTC Nominees Limited Chief Executive Akeem Oyewale, said the company will not rest on its oars in delivering value to customers as well as prospects.

    He noted that Stanbic IBTC Nominees, a wholly-owned subsidiary of Stanbic IBTC Bank Plc, which holds custodial assets on behalf of clients of Stanbic IBTC Bank, will continue to leverage the expertise, technology and experience of Standard Bank Group, to which Stanbic IBTC belongs, to deliver sustainable shareholder value by serving the needs of its clientele.

    Oyewale pointed out that the three subsidiaries within Standard Bank Group were selected as Best Sub-custodian Banks for their  countries, namely Nigeria, Namibia and Mozambique.

  • Award for Stanbic IBTC

    Stanbic IBTC Bank has been named the “Best Sub-Custodian” in Nigeria for the year by Global Finance magazine.

    The London-based Global Finance magazine, organiser of the awards, announced winners for the 16th World’s Best Sub-custodian Banks following selection from across seven global regions and more than 80 countries.

    The latest win makes it the eighth time in a row that Stanbic IBTC Bank will be adjudged the best in the country, in recognition of its leadership in the sector.

    Stanbic IBTC Bank Chief Executive, Demola Sogunle, said winning the award consistently for the last eight years reinforces the bank’s strong management, systems and innovative solutions, and its leadership of Nigeria’s custody sector.

    “We are delighted to be recognised for the eighth time as the best provider of custody services in Nigeria. It is a demonstration of our strength in terms of our management, systems and solutions. This award will energise us to continue to provide unparalleled services to our customers as we raise the bar in the provision of investor services,” Sogunle said.

    According to him, the need for excellent custody services in Nigeria remains strong, driven by the impetus in cross-border investment activities and Stanbic IBTC Bank is well positioned to provide such services.

    The yearly award, instituted 16 years ago, recognises the pivotal role sub-custodians play in business and investment activities through the safekeeping of clients’ assets, such as bonds, stocks and treasury bills. Winners are selected by Global Finance magazine’s editors and reporters, with input from expert sources, from among institutions that reliably provide the best custody services in local markets, regions and to global custodians.

    The criteria used, according to Global Finance, included technology platforms, competitive pricing, customer relations, smooth handling of exception items, technology platforms, quality of service, post-settlement operations, business continuity plans and knowledge of local regulations and practices. Global Finance said it also obtained input from users of sub-custody services. Performance was judged over the period covering January 1 through last December 31.

    Publisher and Editorial Director Global Finance, Joseph Giarraputo noted as custodians deal with increased liability from new regulatory requirements, they are seeking the safest and best sub-custodians with whom to entrust client assets.

    “With these awards, we recognize those sub-custodians that do the best job of meeting their clients’ needs in increasingly complex markets,” Giarraputo stated.

    Stanbic IBTC Nominees Limited Chief Executive Akeem Oyewale, said the company will not rest on its oars in delivering value to customers as well as prospects.

    He noted that Stanbic IBTC Nominees, a wholly-owned subsidiary of Stanbic IBTC Bank Plc, which holds custodial assets on behalf of clients of Stanbic IBTC Bank, will continue to leverage the expertise, technology and experience of Standard Bank Group, to which Stanbic IBTC belongs, to deliver sustainable shareholder value by serving the needs of its clientele.

    Oyewale pointed out that the three subsidiaries within Standard Bank Group were selected as Best Sub-custodian Banks for their  countries, namely Nigeria, Namibia and Mozambique.