The Nation Newspaper

Category: Equities

  • Total Nigeria retains N5.77b dividend payout despite 46% drop in profit

    Total Nigeria retains N5.77b dividend payout despite 46% drop in profit

    The board of directors of Total Nigeria Plc has recommended payment of final dividend of N4.75 billion to shareholders, bringing the total dividend payout for the 2017 business year to N5.77 billion. The company had also paid N5.77 billion as cash dividend to shareholders in 2016.

    The breakdown of the dividend recommendation indicated that shareholders will receive a final dividend of N14 per share. The company had earlier distributed N1.02 billion as interim cash dividend, representing interim dividend of N3 per share.

    Key extracts of the audited report and accounts of Total Nigeria for the year ended December 31, 2017 showed a top-down decline in performance. Turnover dropped marginally from N290.95 billion in 2016 to N288.06 billion in 2017. Profit before tax dropped by 42 per cent from N20.35 billion in 2016 to N11.8 billion in 2017 while profit after tax declined by 46 per cent from N14.8 billion to N8.02 billion. Earnings per share also declined by 46 per cent from N43.58 in 2016 to N23.62 in 2017. However, the company’s shareholders funds improved by 20 per cent from N23.57 billion to N28.23 billion.

    The company blamed the decline on tough operating environment in 2017 citing economic recession and its consequent contraction of the downstream market.

    The company also stated that scarcity of Premium Motor Spirit (PMS) due to high landing cost compared to the template, foreign exchange scarcity that hindered importation and high financial costs due to increase in bank lending interest rates impacted negatively on the company’s performance.

    Managing Director, Total Nigeria Plc, Jean-Philippe Torres, said Total Nigeria is committed to ensuring total customer satisfaction by the creation of quality products and services delivered with a strong commitment to safety and respect for the environment.

    According to him, the overall objective of total customer satisfaction drives all the company’s actions and the mutual acknowledgement of them by its partners forms the basis for their business relationships.

    “To sustain this objective and our leadership of the market, our commitment is to build and sustain a work culture firmly rooted in professionalism, respect for employees, internal efficiency and dedicated services,” Jean-Philippe Torres said.

  • Africa Prudential, United Capital declare N2.9b dividend

    Shareholders of Africa Prudential (APR) Plc and United Capital Plc will receive N2.9 billion as total dividend payout for the immediate past business year.

    Directors of the two companies-which were spun off from the United Bank for Africa (UBA), in separate filing at the Nigerian Stock Exchange (NSE) indicated that shareholders of APR will receive 33.3 per cent increase in payout while payouts to United Capital’s shareholders would be reduced by 30 per cent.

    The Board of Directors of APR has recommended distribution of N800 million as cash dividend for the 2017 business year, representing a dividend per share of 40 kobo. The recommended payout for 2017 represents 33.3 per cent increase of 30 kobo dividend per share paid for the 2016 business year. The increase in dividend payout underlined the well-rounded improvement in the performance of the share registration company.

    Directors of United Capital have recommended total cash dividend of N2.10 billion for the 2017 business year compared with N3 billion distributed for the 2016 business year. Shareholders will receive a dividend per share of 35 kobo for the 2017 business year as against 50 kobo per share received for the 2016 business year. United Capital struggled with a top-down decline in 2017 with net earnings dropping by 57.5 per cent.

    Key extracts of the audited report and accounts of APR for the year ended December 31, 2017 showed that turnover rose from N2.42 billion in 2016 to N3.32 billion in 2017. Profit before tax also rose from N1.45 billion to N2.07 billion. After taxes, net earnings stood at N1.71 billion in 2017 as against N1.02 billion in 2016. Earnings per shares consequently increased from 51 kobo in 2016 to 86 kobo in 2017. The dividend will be paid on March 27, 2018 to shareholders on the register of APR as at the close of business on March 12, 2018.

    In the same vein, key extracts of the audited report and accounts of United Capital for the year ended December 31, 2017 showed that turnover dropped from N9 billion in 2016 to N8.92 billion in 2017. Profit before tax declined from N6.37 billion to N5.55 billion while profit after tax dropped from N6.91 billion to N4.36 billion. With this, earnings per share declined from N1.15 in 2016 to 73 kobo in 2017.

    United capital’s dividend will be paid on March 28, 2018 to shareholders on the register  as at the close of business on March 08, 2018.

  • SEC to extend deadline for e-dividend

    SEC to extend deadline for e-dividend

    Nigeria’s apex capital market regulator, Securities and Exchange Commission (SEC) may today announce the extension of the deadline for the registration for the electronic dividend (e-dividend) payment system, providing opportunity for a large number of shareholders to register.

    SEC had extended the initial December 31, 2017 deadline to February 28, 2018 to encourage shareholders to embrace the initiative. However, the larger number of shareholders has not been able to register due mainly to poor harmonisation by registrars and low level of awareness.

    Sources in the know told The Nation yesterday that authorities at the apex capital market regulator have decided to extend the deadline in order to give room for shareholders to cross over to the new payment system.

    Many shareholders’ leaders had called for extension of the deadline, citing the need for an inclusive approach and mass mobilization for the success of the scheme.

    Stakeholders who spoke with The Nation were unanimous that SEC needs to improve on its sensitization and awareness programmes beyond the cities to cover the nooks and crannies of the country.

    According to them, there is the need to deepen the mobilization and awareness function of SEC as a core driver to encourage Nigerians to embrace the capital market. Less than seven per cent of Nigerian population is participating in the capital market.

    President, Association for the Advancement of Rights of Nigerian Shareholders (AARNS), Dr Faruk Umar said the e-dividend initiative is a commendable initiative that should be embraced by all shareholders, noting that direct payment of dividends will be beneficial to all stakeholders.

    He however called for extension of the deadline till the end of this year to ensure that more shareholders are captured under the scheme.

    “The e-dividend project has been very successful as all one needs to do is to walk into a bank and complete the form. With regard to the deadline, I think SEC should extend it to December 31, 2018, but shareholders may be asked to bear the cost,” Umar said.

    He noted that the cessation of dividend warrants and full commencement of e-dividend will help to address many issues that had bedeviled the dividend payment in the past including stealing of dividend warrants, delayed payment, problem of revalidation of warrants and the huge costs being paid by companies to process and post dividend warrants.

    Shareholder Activist and Co-Founder, Nigeria Shareholders Solidarity Association (NSSA), Alhaji Gbadebo Olatokunbo said SEC should reconsider the deadline and allow investors to continue to register without any hindrance.

    “SEC setting deadline on the right of investors was misdirection, because no rule can deny investors the returns on their investments.

    He noted that registrars were the major culprits hindering the success of the e-dividend scheme as they have perfected ways of engaging in selective execution of mandated accounts.

    “The registrars were in the habit of selective execution of mandated accounts, discriminating against stocks bought through Nigerian Stock Exchange (NSE). They will never treat such mandated-form despite due process on the account if the stocks were acquired through the secondary market. It will not be treated like that of primary offer and you have to get back to your stockbrokers for some documentation before it could be accepted unto the e-dividend scheme,” Olatokunbo.

    According to him, SEC should direct registrars to use shareholders’ Bank Verification Number (BVN) for e-dividend processing rather than the recourse to the archaic requests for signature verification and multiple processes.

    Former General Secretary, Independent Shareholders Association of Nigeria (ISAN), Mr. Adebayo Adeleke, noted that adoption of technology and automation of the processes at the Nigerian capital market would bring the Nigerian market at par with other advanced markets.

    According to him, the world is now technology-driven and Nigeria has to move with the time.

    “SEC must endeavour to reach and enlighten all shareholders, not only in Lagos and other cities, but also in nooks and crannies of the country. I doubt if that has been achieved,” Adeleke said.

  • Firm’s Naira-based platform brings global markets to Nigeria

    • 5000 trading accounts attracted in two years

    or Nigerians seeking to build alternative stream of incomes and experienced investors seeking diversification of assets, one of Africa’s most innovative financial technology companies, Eagle Global Markets (EGM) has opened up a seamless, hassle-free opportunity to trade on more than 1,000 global markets financial products, using the Naira.

    EGM, which added the innovative ‘Naira Cloudtrade’platform to its existing United States Dollar MT4 platform, said the Naira-based platform is a game changer that brings the global markets to the palms of Nigerians.

    Co-Founder, Eagle Global Markets (EGM), Gbite Oduneye, said the Naira-based platform provides Nigerian traders access to more than 1,000 global markets financial products, using the local currency.

    “We have two platforms: the ‘Naira Cloudtrade’ and then the US Dollar MT4, which is the only one other players in the industry offer to their clients. EGM makes the investing world a much smaller place by breaking down barriers, making it possible for Nigerians to trade more than 1000 financial products with Naira,” Oduneye said.

    While taking some investment journalists through the rudiments of trading global markets, Oduneye said with the EGM platforms, investors and traders can trade on a wide range of instruments ranging from international equities, commodities such as crude oil, gold and silver; indices, currency pairs and derivatives of global companies such as Facebook, Google and Snapchat, among others.

    He pointed out that EGM provides Nigerians opportunities to make incomes from global developments, citing the recent fluctuations in the global markets when Dow Jones recorded one of largest drops in its history as well as fluctuations in oil prices as tradable information for traders.

    “In times gone by, this would have constituted only engaging conversation, but now one can generate an income from taking advantage of these moves from the comfort of one’s mobile phone with Naira,” Oduneye said.

    According to him, EGM has come to solve many challenges associated with global trading for individual investors and traders. While global financial market place has a significant impact on people’s day to day lives, it is very difficult to participate and benefit from global trends as an individual. Capital requirements, data costs and transparency are just a few of the many reasons why trading non-domestic products appears prohibitive.

    To complicate matters further, converting in and out of the local base currency is inefficient and sometimes the gains made from the investment are significantly impacted by the simple process of exchanging currency.

    He noted that EGM sets out to ensure that online trading becomes Nigerian run for the Nigerian people by educating and nurturing its clients into confident self-directed traders, who want the freedom the company’s multi asset, multi device trading platform delivers.

    “We have experienced account managers, who guide our clients. We are one of the most innovative financial technology (Fintech) companies in Africa. We offer tight spreads, Mobile apps: Android and Apple; and Fast Trade Execution. Our clients are at the heart of our business and we provide the best client management in the industry.

    “In less than two years we have grown our clientele base considerably from a mere 500 to 5000 and still counting. This is driven by our commitment to professionally advise and educate our clients. Education is at the heart of our business, we offer free seminars in our Ikoyi office as well as our EGM Academy in Ikeja. We are looking to open in Ibadan in the next quarter of this year.

    “We enable clients diversify their portfolios by taking advantage of opportunities that exist in global markets. We enable Nigerians to earn extra income and provide jobs for our introductory brokers. We offer the highest level of compliance with our Financial Conduct Authority (FCA)-regulated technology partners. We hold all clients funds in segregated accounts,” Oduneye said.

    Director of Operations, Eagle Global Markets, Temitayo Sanusi, said the company was always working towards the highest level of compliance possible by ensuring due diligence is always carried out and Know Your Customers (KYCs) requirements are adhered to.

    Sales Manager, Eagle Global Markets, Barbara Aleshe also said the company usually provides supports for its clients by providing the highest level of customer care and back-office support, adding that EGM goes the extra length of training clients to understand market psychology.

    “Education is very important in trading global markets. The emotions, sensations or psychology of trading are very important and go a long way in determining success. In trading global markets, trading psychology and training are what most brokers do not impact on their clients,” Aleshe said.

    “We have one of the best education facilities in the country. We offer free courses at our office in Ikoyi and training academy in Ikeja to all levels of traders. From clients that have never traded before to expert traders, we equipped them so they can earn from global markets even while they are asleep,” Yetunde Shogo, another sales manager at EGM, said.

  • NSE launches corporate governance index

    NSE launches corporate governance index

    The Nigerian Stock Exchange (NSE) has launched a Corporate Governance Index (CG Index), which will track the performance of prequalified companies, using their market capitalisation, free float and corporate governance rating scores.

    The CG Index will be reviewed on a bi-annual basis at which point other companies that have met the requirements may be added to the Index or companies that have had their ratings suspended or withdrawn may be removed.

    The Index is expected to be an important tool for investors keen on investing in well governed companies as well as corporates eager to distinguish themselves on the ground of governance.

    Chief Executive Officer, Nigerian Stock Exchange (NSE), Mr. Oscar Onyema, said the new index will increase transparency in the capital market and provide investors additional data points to make well-informed investment decisions.

    “The launch of the CG Index is an important milestone to strengthening listed companies by tracking their corporate governance practices. This index will increase transparency in our market and provide investors additional data points upon which to make sound decisions.

    “I congratulate the companies that have successfully completed the process and I expect that they will be more positively looked at whilst trying to raise and access capital within or outside of our jurisdiction,” Onyema said.

    He pointed out that sound corporate governance practices will lead to higher economic performance, provide more sources for capital investment and increase the creditability of shareholders.

    “The NSE CG Index is highly correlated with other NSE Indices. By far, the highest correlation coefficient was recorded with NSE 30 Index at 99.6 per cent and closely followed by the NSE All Share Index (ASI) at 99.3 per cent. In essence, all indices moved in tandem in nearly all cases. The observed correlation between the CG Index and ASI reinforces observed trend in some emerging markets, including Brazil, China and Italy. It can, therefore, be inferred that companies that determine the direction of the ASI in these markets are mostly companies with good corporate governance practices,” Onyema said.

     

  • UBA, Access Bank join NSE’s premium board

    UBA, Access Bank join NSE’s premium board

    Authorities at the Nigerian Stock Exchange (NSE) have approved the migration of leading commercial banks-United Bank for Africa (UBA) Plc and Access Bank Plc to the Exchange’s premium board. The migration of the two banks will increase the number of companies on the top-rated board to six.

    A regulatory report at the weekend indicated that the NSE had approved the migration of UBA and Access Bank from the main board to the premium board, which was designed as a market for the most capitalised stocks with the best corporate governance and liquidity. The premium board was meant to showcase Nigeria’s best stocks to the global market.

    The Nation had earlier reported the approval for the migration of Lafarge Africa Plc to the premium board. There are currently three companies listed on the NSE’s premium board including Dangote Cement, FBN Holdings and Zenith Bank International.

    The Exchange had indicated that the premium board is aimed at providing a platform for greater global visibility for eligible Nigerian entities, which will make it easier for them to attract global capital flows and reduce the cost of borrowing.

  • Shareholders mull legal action against CBN’s bank dividend policy

    Shareholders mull legal action against CBN’s bank dividend policy

    Minority and retail shareholders have called on the Central Bank of Nigeria (CBN) to rescind its newly amended dividend payment policy for deposit money banks (DMBs), threatening to take legal action against the apex bank if it failed to withdraw the policy.

    Minority and retail shareholders under the auspices of Pragmatic Shareholders Association (PSA) said the CBN’s dividend policy for banks runs contrary to the current efforts aimed at encouraging retail investors in the Nigerian capital market.

    In a communiqué issued at the end of their emergency meeting at the weekend, the shareholders said the apex bank was chasing a wild goose by shifting the blame of non-performing loans to shareholders rather than addressing the underlying causes of non-performing loans.

    Under the amended dividend policy, banks that do not meet the minimum capital adequacy ratio (CAR) will not be allowed to pay dividend. Also, banks with non-performing loans (NPLs) above 10 per cent will not be allowed to pay dividend. Banks that meet the minimum CAR requirement, but have NPL ratio of more than 5.0 per cent, but less than 10 per cent will be allowed to pay a maximum of 30 per cent of earnings as dividend. Banks with CAR of at least 3.0 per cent above minimum requirement and NPL ratio of more than 5.0 per cent, but less than 10 per cent will be allowed to pay up to a maximum of 75 per cent of earnings as dividends while banks that meet the minimum capital adequacy ratio and non-performing loan ratio have no regulatory restrictions and can pay dividend as wish.

    Shareholders said the apex bank should take the blame for the level of non-performing loans in the Nigerian banking industry, alleging that the bad debts were as a result of the failure of the apex bank to efficiently discharge its regulatory functions.

    They alleged that the board and management of the CBN cannot be absolved from the high level complicity and sabotage that have continued to fuel recurring bad loans.

    “The apex bank owes it a duty to Nigerians and the international community to publish profiles of loan defaulters and invoke operating laws through the banks on all bad loans,” the communiqué, signed by PSA’s National Coordinator, Mrs Bisi Bakare stated.

    They called on the National Assembly to intervene and protect the domestic retail shareholders from what they described as kill-joy policies of the apex bank.

    According to the association, the use of dividend payment as bad debt management tool will not only have negative impact on the domestic capital market and national capital accumulation, but may also encourage defaulters.

    The association also chided the Securities and Exchange Commission (SEC) “for abandoning and reneging on its corporate responsibilities to shareholders”.

  • Equities’ rally gathers momentum with N36b gain

    For the first trading session this week, the number of transactions closed at premium outweighed those closed at discount as investors stepped up bargain-hunting for value stocks at the Nigerian equities market.

    While the two previous trading sessions were driven mainly by gains by highly capitalised stocks against wider underlying depreciation, the positive overall market position yesterday was driven by widespread bargain-hunting across the sectors and stocks’ groups.

    With 24 gainers against 17 losers, benchmark indices at the Nigerian Stock Exchange (NSE) showed a broadly positive performance. Average day-on-day return stood at 0.24 per cent, equivalent to net capital gain of N36 billion. Most sectoral indices also closed positive, underlining the increasing bargain-hunting across the sectors.

    The All Share Index (ASI)-the value-based benchmark index that tracks share prices at the Exchange, increased from its opening index of 42,158.32 points to close at 42,258.78 points. Aggregate market value of all quoted equities also rose from its opening value of N15.129 trillion to close at N15.165 trillion. Average year-to-date return improved to 10.50 per cent.

    All sectoral indices closed positive with the exception of the NSE Consumer Goods Index, which dropped by 0.3 per cent. The NSE Banking Index and NSE Oil & Gas Index posted a gain of 0.7 per cent each. The NSE Insurance Index rose by 0.3 per cent while the NSE Industrial Goods Index inched up by 0.2 per cent.

    “We expect sentiment to remain positive tomorrow (Friday) on bargain hunting ahead of earnings scorecards,” SCM Capital stated.

    Total Nigeria led the gainers with a gain of N10.40 to close at N228. Nestle Nigeria followed with a gain of N8 to close at N1, 378. Flour Mills of Nigeria rose by 45 kobo to close at N33. United Bank for Africa appreciated by 40 kobo to close at N13. FBN Holdings added 35 kobo to close at N11.50. Lafarge Africa and Zenith Bank International rose by 25 kobo each to close at N51.30 and N31.75 respectively while Access Bank and Dangote Flour Mills garnered 20 kobo each to close at N12.90 and N16.50 respectively.

    On the negative side, Nigerian Breweries led the losers with a drop of N1.60 to close at N122.90. Dangote Sugar Refinery followed with a loss of 60 kobo to close at N21.35. CAP declined by 25 kobo to close at N35. Forte Oil lost 20 kobo to close at N44.80. Fidson Healthcare dropped by 15 kobo to close at N4.55 while Caverton Offshore Support Group dipped by 13 kobo to close at N2.52 per share.

    Total turnover stood at 342.1 million shares valued at N3.09 billion in 4,943 deals. Banking stocks dominated the top activities chart. Fidelity Bank was the most active stock with a turnover of 62.89 million shares valued at N189.36 million. Skye Bank followed with 56.32 million shares worth N58.04 million while FBN Holdings recorded a turnover of 26.97 million shares valued at N307.18 million.

    “We expect the market to sustain a positive close to the week as investors seek for bargain opportunities in the market ahead of full year earnings releases,” Afrinvest Securities stated in a post-trading note.

  • Equities in marginal gain as financial stocks rebound

    Nigerian equities traded almost on the balance yesterday at the Nigerian Stock Exchange (NSE) as bargain-hunting in financial services stocks counterbalanced continuing selloff in other sectors to sustain the positive overall market position with a marginal gain of N3 billion.

    With large-cap banking stocks dominating the gainers’ list, benchmark indices closed with a marginal day-on-day average gain of 0.02 per cent, equivalent to net capital gain of N3 billion. This nudged the average year-to-date return to 10.2 per cent.

    The All Share Index (ASI)-the value-based benchmark index that tracks share prices at the NSE, inched up from its opening index of 42,148.40 points to close at 42,158.32 points. Aggregate market value of all quoted equities also improved marginally from its opening value of N15.126 trillion to close at N15.129 trillion.

    With 30 losers against 21 gainers, the positive overall market position was boosted by gains recorded by large-cap banking stocks. The NSE Banking Index rallied by 1.1 per cent while the NSE Insurance Index inched up by 0.7 per cent. Other sectoral indices closed negative. The NSE Oil & Gas Index dropped by 1.2 per cent while the NSE Consumer Goods Index and NSE Industrial Goods Index declined by 0.9 per cent each.

    Guaranty Trust Bank-Nigeria’s second most capitalised quoted company led the gainers with a gain of 75 kobo to close at N48. Nascon Allied Industries and Flour Mills of Nigeria rose by 55 kobo each to close at N20.55 and N32.55 respectively. Zenith Bank appreciated by 45 kobo to close at N31.50. United Bank for Africa added 40 kobo to close at N12.60 while Dangote Flour Mills and FBN Holdings chalked up 30 kobo each to close at N16.30 and N11.15 respectively.

    On the negative side, Nestle Nigeria led the losers with a drop of N10 to close at N1,370. 11, formerly Mobil Oil Nigeria, followed with a drop of N9 to close at N190. Nigerian Breweries lost N3.50 to close at N124.50. Conoil declined by N3.40 to close at N32.10. Julius Berger Nigeria dipped by N1.35 to close at N25.95 while PZ Cussons Nigeria dropped by N1.15 to close at N23 per share.

    Total turnover stood at 570.26 million shares valued at N5.33 billion in 5,794 deals. Custodian Allied topped the activities chart with a turnover of 94.45 million shares valued at N377.82 million. FBN Holdings followed with 61.64 million shares valued at N683.26 million while Fidelity Bank placed third with a turnover of 55.93 million shares worth N169.24 million.

    “Despite the marginal gain today (Wednesday), the improvement in sentiment shows the market is gradually stabilising. Thus, we expect performance in subsequent trading sessions to remain positive,” Afrinvest Securities stated.

  • Netherlands, Nigeria to deepen economic cooperation 

    The government of Netherlands will work with the Nigerian government to improve economic cooperation and investments in key sectors of the Nigerian economy.

    The Netherlands Ambassador to Nigeria, Mr Robert Petri made this known yesterday on the floor of the  Nigerian Stock Exchange (NSE) in Lagos.

    Petri said Netherlands government recognised the importance of agriculture sector, saying that the sector is a priority in Nigeria with the huge opportunities therein.

    He added that this is why the netherlands government want to key and expand their investment in the country.

    “We are planning to intensify our collaboration in different field particularly in Agriculture. There are huge opportunities there. It is the priority of the Nigeria government and we have something to offer in the sector,” he said.

    While commending the Nigerian Stock Exchange (NSE), Petri noted that the Netherlands government and Nigerian government should increase collaboration between the Exchanges in Nigeria and Amsterdam to further deepen its bilateral cooperation.

    “We have many things to do together. We are living in crucial times and the private sector lays a crucial role in promoting economic growth and furthering employment,” he said.

    The Ambassador noted that Nigerian was an extremely important country as its Exchange was one of the largest in Africa and best performing exchange, having listed two Dutch companies, Nigerian Breweries and Unilever, that were doing extremely on the market.

    “In Netherlands, we know how important Nigeria is. We are the third largest investor here and the fourth largest trading partner of Nigeria; we have important economic interest in this country,” he added.

    While the stockbrokers commended the Netherlands ambassador and convoy, urging them to deepen collaborations between the two countries.