The Nation Newspaper

Category: Equities

  • Morison Industries closes application for N502.2m rights issue

    Morison Industries Plc at the weekend closed the application list for its rights issue. The company had launched a new capital raising for about N502.2 million in new equity funds through new share sale to existing shareholders.

    Morison Industries offered a rights issue of 836.98 million ordinary shares of 50 Kobo each at 60 Kobo per share on the basis of 11 new ordinary shares for every two ordinary shares of 50 Kobo held as at August 25, 2017.

    The board of directors of the healthcare company had appointed GTI Securities Limited as the stockbroker to handle the supplementary share issuance while GTI Capital Limited will be the issuing house. Both GTI Securities and GTI Capital are members of the GTI Capital Group, a leading financial services group, which owns the largest private trading floor in the Sub Saharan Africa (SSA).

    Morison Investment Limited, United Kingdom (UK), holds 40 per cent equity in Morison Industries while Nigerian investors hold the remaining 60 per cent. Morison Industries was incorporated in Nigeria in June 1955.

    Morison Industries is engaged in the production and marketing of pharmaceuticals, hygiene products and the importation and distribution of medical, surgical and hospital equipment, instruments and consumables.

    The company also provides its production facilities to third party for contract manufacturing arrangements.

  • Morison Industries closes application for N502.2m rights issue

    Morison Industries Plc will today close the application list for its ongoing rights issue. Morison Industries is raising about N502.2 million in new equity funds through new share sale to existing shareholders.

    Morison Industries is offering a rights issue of 836.98 million ordinary shares of 50 Kobo each at 60 Kobo per share on the basis of 11 new ordinary shares for every two ordinary shares of 50 Kobo held as at August 25, 2017.

    The board of directors of the healthcare company had appointed GTI Securities Limited as the stockbroker to handle the supplementary share issuance while GTI Capital Limited will be the issuing house. Both GTI Securities and GTI Capital are members of the GTI Capital Group-a leading financial services group that owns the largest private trading floor in Sub Saharan Africa (SSA).

    Morison Investment Limited, United Kingdom, holds 40 per cent equity stake in Morison Industries while Nigerian investors hold the remaining 60 per cent. Morison Industries was incorporated in Nigeria in June 1955.

    Morison Industries is engaged in the production and marketing of pharmaceuticals, hygiene products and the importation and distribution of medical, surgical and hospital equipment, instruments and consumables.

    The company also provides its production facilities to third party for contract manufacturing arrangements.

  • Equities open 2018 with N8b gain

    Nigerian equities recorded a modest gain of N8 billion at the first trading session for 2018, continuing the uptrend that had seen the stock market rallying net capital gain of N4.36 trillion in 2017.

    All major indices at the Nigerian Stock Exchange (NSE) opened on positive sentiment. Average day-on-day return stood at 0.06 per cent, equivalent to net capital gain of N8 billion. With 27 gainers to 13 losers, most sectoral indices showed widespread positive sentiments.

    The All Share Index (ASI)-the common value-based index that tracks share prices at the Exchange rose from its year’s opening index of 38,243.19 points to close at 38,264.79 points. Aggregate market value of all quoted equities also rose from the year’s opening value of N13.609 trillion to close at N13.617 trillion. The average year-to-date return thus stood at 0.06 per cent or N8 billion.

    Most sectoral indices closed on the upside. The NSE Insurance Index led with a gain of 0.9 per cent. The NSE Consumer Goods Index followed with 0.3 per cent while the NSE Industrial Goods Index inched up by 0.2 per cent. However, the NSE Oil & Gas Index depreciated by 0.4 per cent while the NSE Banking Index slipped by 0.04 per cent.

    CAP led the gainers with a gain of N1.70 to close at N35.70 per share. Nascon Allied Industries followed with a gain of 72 kobo to close at N19.22. PZ Industries rose by 55 kobo to close at N21.15 per share. International Breweries gathered 49 kobo to close at N54.99 while Dangote Sugar Refinery rose by 30 kobo to close at N20.36 per share.

    On the negative side, Forte Oil led the losers with a loss of N1.48 to close at N42 per share. Unilever Nigeria followed with a loss of 79 kobo to close at N40.21. Ecobank Transnational Incorporated dropped by 73 kobo to close at N16.27 per share. Stanbic IBTC Holdings declined by 60 kobo to close at N40.90 while Union Bank of Nigeria dipped by 29 kobo to close at N7.51 per share.

    Total turnover stood at 248.55 million shares valued at N1.78 billion in 3,035 deals. Transnational Corporation of Nigeria was the most active stock with 102.77 million shares valued at N150.72 million. Zenith Bank followed with 24.78 million shares worth N642.97 million while Skye Bank placed third with 15.56 million shares valued at N7.82 million.

    “In line with expectation, the market closed positive albeit marginal. Hence, we do not rule out the possibility of some profit taking in subsequent sessions,” Afrinvest Securities stated.

    Aggregate market value of all quoted equities on the NSE had closed 2017 at N13.609 trillion as against its opening value of N9.247 trillion for the year, representing net capital gain of N4.36 trillion in 2017. The ASI had indicated average full-year of 42.30 per cent, rising from the year’s opening index of 26,874.62 points to close the year at 38,243.19 points.

    All major sectoral indices at the stock market showed a market-wide rally. Investors in the banking sector were far ahead of other sectors with the NSE Banking Index indicating average year-to-date return of 73.32 per cent. The NSE 30 Index, which tracks the 30 most capitalised companies, posted above average return of 46.14 per cent, underlining the fact that the recovery was partly driven by large-cap stocks. The NSE Consumer Goods Index closed the year with a gain of 36.97 per cent. The NSE Industrial Goods Index rose by 23.84 per cent. The NSE Insurance Index posted a modest return of 10.36 per cent, despite the lacklustre performance of most insurance stocks that had stagnated over the years at nominal value of 50 kobo.

    With the major oil marketers such as 11 Plc, formerly Mobil Oil Nigeria and Forte Oil among the worst-performing stocks, the NSE Oil and Gas Index recorded the least return of 5.76 per cent. The NSE Lotus Islamic Index-which tracks ethical stocks in compliance with Islamic rulings, posted a gain of 39.03 per cent, underlining the attractiveness of ethical investment in the midst of the rally. The NSE Lotus Islamic Index excludes interest-based banks, breweries, gambling and overleveraged companies among others.  The NSE Pension Index, which tracks a portfolio of stocks specially screened in line with the pension investment guidelines, showed above-average return of 70.33 per cent.

     

     

     

  • Profit-taking drags equities to N225b loss

    Profit-taking drags equities to N225b loss

    Nigerian equities reopened yesterday with a tinge of bearishness as profit-taking transactions on many large-cap stocks dragged the overall market position to a net loss of N225 billion.

    The two main value-based indices at the Nigerian Stock Exchange (NSE) closed on the negative, underlining that the decline was due to price depreciation.  The All Share Index (ASI) dropped by 1.64 per cent to close at 37,889.57 points. The market capitalisation of all quoted equities declined by N225 billion to close at N13.484 trillion.

    The downtrend was due to widespread profit-taking transactions, especially losses recorded by large-cap stocks such as Dangote Cement, Nigerian Breweries, Okomu Oil, Presco and PZ Cussons Nigeria.

    There were nearly two losers for every gainer with 14 gainers and 24 losers. Cadbury Nigeria recorded the highest gain, in percentage terms, with 9.91 per cent to close at N15.75 per share. 11, formerly Mobil Oil Nigeria, gained 4.89 per cent to close at N178.31. Fidelity Bank appreciated by 4.62 per cent to close at N2.49 per share. Law Union and Rocks Insurance went up by 4.23 per cent to close at 74 kobo while NEM Insurance appreciated by four per cent to close at N1.56 per share.

    On the negative side, Okomu Oil led the losers’ chart by five per cent to close at N67.69 per share. Omoluwabi Micro Finance Bank shed 4.88 per cent to close at 78 kobo. Presco depreciated by 4.86 per cent to close at N68.50 per share. MC Nichols dropped by 4.76 per cent to close at N1.20 while Nigerian Breweries declined by 4.26 per cent to close at N134.04 per share.

    The momentum of activities however improved as total volume traded appreciated by 103.9 per cent to 425.96 million shares worth N2.12 billion in 2,937 deals. Transactions in the shares of Transnational Corporation of Nigeria topped the activity chart with 107.1 million shares valued at N154.77 million. Fidelity Bank followed with 94 million shares worth N220.75 million while Skye Bank traded 51.65 million shares valued at N25.82 million.

    Analysts at Afrinvest Securities Limited said they remained optimistic on the outlook for equities.

    “Given the significant rise in oil prices in recent times and the broadly bullish outlook for commodity prices for 2018, we maintain our positive short- to medium-term perspective for equities,” Afrinvest Securities stated.

  • SEC, IST partner to curb market infractions

    SEC, IST partner to curb market infractions

    Securities and Exchange Commission (SEC) has expressed readiness to partner with relevant bodies in its quest to ensure zero tolerance on infractions in Nigeria’s capital market and to ensure that perpetrators of fraudulent acts are brought to book.

    Acting Director General of SEC, Dr. Abdul Zubair stated this when the chairman and members of Investments and Securities Tribunal, IST, visited him in his office in Abuja.

    Zubair said the present management of SEC has zero tolerance on infractions adding that anyone that flouts the rules will be made to face the consequences of such actions.

    He told the IST team that the SEC has been embarking on a number of initiatives to protect the investors in the market and ensure that they reap the benefits of their investments.

    “ SEC has rolled out a number of initiatives and campaigns which have been yielding results. These initiatives are to ensure that investors are aware of what to do to protect their investments”,

    “ The e-dividend is one of such campaigns and we enjoin investors to key-in so that they can reap the benefits of their investments” he added.

    Speaking earlier, the Chairman of the Investment & Securities Tribunal (IST), Isaiah Idoko-Akor Congratulated the Acting DG on his assumption of office and expressed the confidence of the Tribunal in his ability to move the market forward.

    He commended the SEC for all it has been doing to support the Tribunal in the discharge of its duties and craved for more support to avoid hitches in the Tribunal carrying out its assignments.

    “IST is serving the market, it is very important to the market and  that is why we commend SEC for its support to the IST

    “ However, IST needs to be strengthened to be able to carry out its functions effectively.

  • UACN closes application for N15.4b rights issue

    UACN closes application for N15.4b rights issue

    Nigeria’s largest and oldest business conglomerate, UAC of Nigeria (UACN) Plc, at the weekend closed application list for its N15.4 billion rights issue.

    UACN had floated a rights issue to raise N15.36 billion by offering 960.43 million ordinary shares of 50 kobo each at N16 per share to pre-qualified shareholders. The new shares were pre-allotted to shareholders on the basis of one new share for every two shares held as at the close of business on October 19.

    The application list for the rights issue, which had opened on November 15, closed on Friday, December 22.

    After deduction of the estimated issue costs and expenses of N333.91 million, representing 2.2 per cent of the gross issue proceeds, the net issue proceeds is about N15.033 billion.

    A breakdown of the utilisation of the net proceeds indicated that the largest chunk of the net proceeds of N15.03 billion will be invested in the Plateau State-based subsidiary-Grand Cereals.

    The board noted that due to increasing cost of raw materials and the planned investment by Grand Cereals into the agricultural value chain, it has identified the need for equity injection into the subsidiary.

    The planned N7 billion rights issue of Grand Cereals will be subscribed to by UACN to the extent of its 64.9 per cent holding in addition to any unsubscribed units. The total amount of proceeds to be used for this investment is N5 billion.

    Also, to further support Grand Cereals’s expansion plans into the agricultural value chain, the board has identified the need for a shareholder loan of N3.5 billion to the subsidiary. However, the planned shareholder loan will be provided on commercial terms to Grand Cereals and upon repayment at a future date will be deployed in the food and agro-processing categories of the Group to enhance shareholder value.

    About N4.8 billion will be spent on supporting the working capital of both the Grand Cereals Limited and Livestock Feeds Plc by part-financing inventory procurement during harvest season of grains and oil seeds. About N2.8 billion will be used for Grand Cereals while N1.2 billion will be devoted to Livestock Feeds.

    According to the conglomerate, the harvest season of grains and oil seeds usually starts in the last quarter of every year when the financial institutions typically adopt tight credit policies to achieve their audited balance sheet goals. The availability of the required funds in a timely manner at that particular time is a competitive imperative. The raw materials will be utilised in the course of the year by the two subsidiaries. Also, the transaction between UACN and the agro-processing subsidiaries will be on commercial terms and at arm’s length.

    The conglomerate has also indicated that it would consider new acquisitions and mergers to further optimise the values of its existing businesses and take advantage of emerging opportunities in other sectors.

    In a circular outlining the operational philosophy of the conglomerate and the purposes of the ongoing new capital raising, the board of directors of the conglomerate stated that it would “continue to explore merger and acquisition opportunities relevant to it businesses”.

    The board of the conglomerate indicated it has earmarked N2.5 billion from the net proceeds of the ongoing rights issue for “product innovation and growth investment in existing markets and adjacent categories”.

  • Fed Govt allays fears over currency risk on dollar loans

    •$3b Eurobond, $300m Diaspora bonds listed on NSE, FMDQ

    The Federal Government has allayed fears that its increasing recourse to foreign-currency denominated bonds may pose considerable currency risk and debt crisis as government has taken measures to ensure that it maintains a prudent and sustainable debt strategy.

    Debt Management Office (DMO) Director-General, Ms Patience Oniha, who spoke at the listing of Federal Government’s Eurobonds and Diaspora Bond at the Nigerian Stock Exchange (NSE) in Lagos, said Nigeria would not be subjected to any considerable foreign currency risk given foreign exchange earnings from its crude oil and ongoing efforts to diversify the economy.

    According to her, besides the foreign exchange earnings from crude oil, the country stands to gain increased foreign exchange earnings from the ongoing economic diversification programme.

    The NSE admitted the FGN 30 year $1.5 billion Eurobond, FGN 10 year $1.5 billion Eurobond, FGN 5 Year $300 million Diaspora Bond on its daily official list.

    She said government would continue to implement a prudent fiscal and debt management strategy to reduce the cost of debt, rebalance its debt and attain a portfolio of 60:40 foreign/domestic debt structure over the coming years.

    Oniha assured that the DMO would sustain its innovative and diverse fund raising plans to ensure optimal funding structure for Nigeria to address key infrastructural challenges.

    She said the continuing listing of government’s domestic and foreign debt issues on the stock market underscored the commitment of the government to the capital market and recognition of the importance of the market in national economic development.

    She noted that amid uncertainties, the government has so far this year accessed the international capital markets four times in 2017 and at every issue, it had achieved overwhelming success.

    Oniha explained that funding the budget deficit and refinancing the government’s inherited debt portfolio have been the key drivers behind the capital raising plans so far, adding that these will lead to significant benefits, particularly in reduction of cost of funds.

    She noted that the Diaspora bond provided opportunity for Nigerians in Diaspora to contribute to the development of the nation.

    Nigerian Stock Exchange (NSE) Chief Executive Officer, Mr. Oscar Onyema, said the Exchange would continue to collaborate with the government in the development of Nigerian debt market.

    “We would be coming up with other types of products that will give the investors a good menu of options in terms on how to diversify portfolio,” Onyema said.

    At the listing of the Eurobonds and Diaspora Bond at the FMDQ OTC Securities Exchange, Oniha said the listings would increase the number and range of securities in the domestic capital markets, thereby deepening the market and promoting financial inclusion.

  • Union Bank: we are on course

    Union Bank: we are on course

    •New directors bring dynamism

    Union Bank of Nigeria (UBN) Plc at the weekend reiterated that it remains on course in achieving its growth targets as the commercial bank announced changes on its board of directors.

    In a regulatory filing at the Nigerian Stock Exchange (NSE), the board of Union Bank stated that with the completion of its recent N50 billion equity raising from shareholders, the bank remains on course to deliver on its key objectives in 2017.

    According to the bank, the capital increase supports the bank’s short to medium term growth objectives as it looks to re-establish itself as one of Nigeria’s leading commercial banks.

    Union Bank also announced changes to the membership of its board of directors with the retirement of an executive director, Mr. Ibrahim Kwargana and the resignation of three non-executive directors, Engr. Mansur Ahmed, Chief Onikepo Akande and Mrs. Arina McDonald  last October.

    Kwargana’s retirement comes after 33 years in the sector. He was appointed as an executive director in 2009 by the Central Bank of Nigeria (CBN), and until his retirement, was responsible for the Union Bank’s public sector business as well as commercial business development for the northern region.

    Ahmed, Akande and McDonald resigned following the successful completion of their tenures on the board.

    The bank has appointed three new non-executive directors, including Mr. Taimoor Labib, as non-executive director and Mrs. Obafunke Alade-Adeyefa and Mrs. Furera Isma Jumare as independent non-executive directors. All the appointments have been approved by the CBN.

    UBN Chairman, Mr. Cyril Odu, commended the contributions of the former directors to the transformation of the bank adding that the new directors bring dynamic experience that will be invaluable to the bank as it continues to move forward.

    UBN Chief Executive Officer, Mr. Emeka Emuwa also commended the contributions of the outgoing directors to the bank.

    “As we embark on a new phase of growth, we welcome our new directors who will bring fresh perspectives to our board deliberations,” Emuwa said.

  • Investors stake N140b on equities amid Santa rally

    Investors stake N140b on equities amid Santa rally

    Investors staked about N140 billion and most price changes were positive as equities recovered from a profit-taking trend to post a modest gain at the weekend.

    Benchmark indices at the Nigerian Stock Exchange (NSE) indicated a modest average return of 0.22 per cent for the week, equivalent to net capital gain of N31 billion.

    While the market opened with a two-day downtrend due to profit-taking, increased bargain-hunting spurred a three-day modest rally. Average year-to-date return improved to 43.34 per cent at the weekend.

    Aggregate market value of all quoted equities at the NSE rose from the week’s opening value of N13.678 trillion to close at N13.709 trillion. The All Share Index (ASI)-the benchmark price index, also increased from its week’s index-on-board of 38,436.08 points to close weekend at 38,522.14 points.

    A total turnover of 2.24 billion shares worth N139.79 billion were traded in 18,466 deals last week as against a total of 1.85 billion shares valued at N51.523 billion traded in 23,863 deals two weeks ago. The financial sector led the activity chart with 984.58 million shares valued at N10.59 billion in 11,116 deals, representing 43.9 per cent and 7.57 per cent of the total equity turnover volume and value.

    The industrial goods sector followed with 564.804 million shares worth N125.378 billion in 927 deals. The third place was occupied by conglomerates sector with a turnover of 804.447 million shares worth N561.921 million in 689 deals.

    The three most active stocks were Transnational Corporation of Nigeria Plc, Dangote Cement Plc and Aiico Insurance Plc, which accounted for 1.335 billion shares worth N125.907 billion in 888 deals, contributing 59.52 per cent and 90.07 per cent to the total equity turnover volume and value.

    Also traded during the week were a total of 3,070 units of Exchange Traded Products (ETPs) valued at N455,245 in eight deals, compared with a total of 1,120 units valued at N14,179 traded in four deals two weeks ago.

    In the debt segment, a total of 3,780 units of Federal Government bonds valued at N3.931 million were traded in 17 deals compared with a total of 5,382 units valued at N5.680 million traded in 17 deals in the previous week.

    There were 35 gainers against 25 losers last week compared with 16 gainers and 46 losers recorded in the previous week. Most sectoral indices closed positive, underlining the widespread positive sentiment during the week.

    The NSE Most sectoral indices closed positive, underlining the widespread positive sentiment during the week.

    The NSE 30 Index-which tracks the 30 most capitalised stocks, appreciated by 0.29 per cent. The NSE Oil and Gas Index led the rally with 4.43 per cent. The NSE Insurance Index rose by 1.14 per cent. The NSE Industrial Goods Index rose by 0.38 per cent while the NSE Banking Index posted a return of 0.91 per cent. However, the NSE Consumer Goods Index declined by 1.37 per cent.

    Linkage Assurance recorded the highest gain, in percentage terms, of 19 per cent to close at N69 kobo. Livestock Feeds rose by 11.3 per cent to close at N89 kobo while Seplat Petroleum Development Company appreciated by 10.4 per cent to close at N596.40.

    On the downside, Dangote Sugar Refinery led the losers with a drop of 9.5 per cent to close at N19.64. May & Baker Nigeria followed with a drop of 8.3 per cent to close at N2.64 while Flour Mills of Nigeria declined by 8.0 per cent to close at N28.36 per share.

    Analysts at Afrinvest Securities stated that they expected a largely positive performance at the stock market this week on the back of year-end portfolio rebalancing by fund managers.

  • NSE CEO becomes chartered stockbroker

    Chief Executive Officer, Nigerian Stock Exchange (NSE), Mr. Oscar Onyema, yesterday made history as the first chief executive of the Exchange to be inducted as an Associate of the Chartered Institute of Stockbrokers (CIS) after passing the requisite examination of the institute.

    CIS is the self regulatory organisation (SRO) statutorily empowered to train and certify professionals in the Nigerian capital market. It is the only professional body in Nigeria authorized to carry out qualifying examinations into the stockbroking profession. The Institute controls the activities of its members and matters associated with it.

    At the induction of Onyema, President, Chartered Institute of Stockbrokers (CIS), Mr. Oluwaseyi Abe said the decision of Onyema to voluntarily enroll as a CIS member and sit for qualifying examination demonstrated his commitment to good leadership.

    According to him, Onyema’s induction is not an ordinary induction but it showcases exemplary leadership, a demonstration of the commitment to the rule of law and processes, uncommon dedication and patriotism of the highest order.

    “We are witnessing a rare manifestation of humility and leadership by example, as the CEO of the Exchange, Onyema, is formally inducted as an associate member of the institution.  Today’s induction ceremony is unique because  Onyema, despite his qualifications and experience as a well-grounded investment and securities expert qualified to practice in the United States and Nigeria, voluntarily enrolled as a member of CIS, sat and passed the institution’s examination,” Abe said.

    He congratulated Onyema and urged him to maintain the good name and reputation of the institute as he continues to contribute positively to growth of the institution and indeed the Nigerian economy.

    He noted that Onyema’s induction as a chartered stockbroker was a landmark event that conferred a new level of respect and honour.

     

     

    “It is a mark of character, capacity and competence,” Abe said.

    Expressing his delight after receiving his certificate as an associate member of CIS, Onyema said his writing of the CIS examination was a matter of cause and a continuous quest for knowledge and high performance.

    “I commit to project the best image of the institution by ensuring adherence to the code of ethics of the profession. And I look forward to working with you all to improve the state of our market and the Nigerian economy at large,” Onyema said.