The Nation Newspaper

Category: Equities

  • Fidelity Bank seals $255.5m debt buyback today

    Fidelity Bank seals $255.5m debt buyback today

    Fidelity Bank Plc will today pay out about $258.06 million to settle a $255.5 million debt buy back after the commercial bank successfully recalled more than 85 per cent of its outstanding $300 million notes due in May 2018 for early redemption.

    According to a schedule by the bank, it will today pay $1,010 for every $1,000 of the notes in payment for the principal amount and accrued interest.

    Fidelity Bank had on September 28 floated a combined tender offer for early redemption of the $300 million 6.875 per cent Notes due May 9, 2018 and an offering for a new $500 million Eurobond. Application list for the tender offer closed last Wednesday, October 11, 2017.

    According to the bank, a total of $255.5 million was validly tendered during the period and it has picked up all the notes validly tendered.

    Fidelity Bank had simultaneously launched a $500 million senior unsecured medium term debt notes. The bank intends to list the new notes on the Irish Stock Exchange where they are expected to be traded on the regulated market.

    Its Managing Director,  Mr Nnamdi Okonkwo, said the bank would net proceeds from the $500 million Eurobond to finance the tender offer of the $300 million notes while the balance would be used for its general banking purposes.

    He said after settling the tender offer, the bank will pay the remaining net proceeds of the $500 million Eurobond into its foreign currency domiciliary account, which may be retained in foeign currency or converted to naira, depending on the bank’s requirement from time to time.

  • Equities’ return rises to 37.1% amidst rally

    Investors in Nigerian equities have earned more than one-third of the value of their portfolios in capital gain this year as increased demand for quoted shares drove the average year-to-date return for Nigerian equities to 37.11 per cent at the weekend.

    With nearly two gainers for every loser, a largely bullish market during the week left investors with net capital gain of N182 billion, representing a week-on-week return of 1.45 per cent. All sectoral indices closed positive, underlining the market-wide rally that saw investors upping market orders for small to mid-cap and large-cap stocks.

    The All Share Index (ASI)-the benchmark pricing index for the Nigerian equities market, rose by 1.45 per cent to close the week at 36,848.17 points as against its week’s opening index of 36,320.93 points. Aggregate market value of all quoted equities also improved from the week’s opening value of N12.502 trillion to close the week at N12.684 trillion, representing an increase of N182 billion.

    Year-to-date return analysis at the weekend showed that most equities investors have made substantial returns on their investments so far this year, with investors in banking stocks and other large-cap stocks ahead of others.

    The Nigerian Stock Exchange (NSE) Banking Index, which tracks the most active and influential banking sector, rose by 1.41 per cent last week to pushed the average year-to-date return for the sector to 67.89 per cent. The NSE 30 Index, which tracks the 30 most capitalised companies, posted a gain of 1.25 per cent last week to increase its year-to-date return to 41.25 per cent. The NSE Industrial Goods Index appreciated by 0.66 per cent last week to close with a year-to-date return of 32.9 per cent.

    The NSE Consumer Goods Index rose marginally by 0.05 per cent to close with year-to-date return of 31.24 per cent, while the NSE Insurance Index recorded the highest gain of 7.90 per cent last week to build up average year-to-date return for the sector to 17.93 per cent. However, with previous steep declines in share prices of many oil majors, including Forte Oil and 11 Plc, formerly Mobil Oil Nigeria Plc, the NSE remained with negative year-to-date return of -6.90 per cent, in spite of above average gain of 1.82 per cent last week.

    Total turnover stood at 1.56 billion shares worth N13.50 billion in 18,409 deals last week compared with a total of 1.49 billion shares valued at N15.11 billion traded in 14,549 deals in the previous week. The financial services sector remained atop activities chart with a turnover of 1.37 billion shares valued at N6.51 billion in 10,880 deals; representing 87.76 per cent and 48.19 per cent of the total equity turnover volume and value respectively. The consumer goods sector staged a distant second with a turnover of 70.5 million shares worth N5.64 billion in 3,398 deals while the conglomerates sector placed third with 58.78 million shares worth N141.93 million in 706 deals.

    The three most active stocks were Diamond Bank Plc, Zenith International Bank Plc and Transnational Corporation of Nigeria Plc, which altogether accounted for 985.76 million shares worth N2.84 billion in 3,401 deals, representing 63.39 per cent and 21.04 per cent of the total equity turnover volume and value respectively.

    Also traded during the week were a total of 60 units of Exchange Traded Products (ETPs) valued at N2,266 in six deals compared with a total of 2,000 units valued at N34,000 traded in a deal in the previous week.

    In the sovereign debt segment, a total of 1,041 units of Federal Government bonds valued at N1.040 million were traded in 10 deals compared with a total of 2,360 units valued at N2.029 million traded in seven deals two weeks ago.

    There were 41 gainers to 23 losers last week compared with 38 gainers and 26 losers recorded in the previous week. However, 107 stocks were unchanged. AXA Mansard Insurance recorded the highest gain-in percentage terms, of 25.5 per cent to close at N2.51. Cement Company of Northern Nigeria followed with a gain of 20.1 per cent to close at N9.68.

  • Indian firm scales up investment in Nigeria

    •Opens power solutions outlet 

    Indian’s multinational company and second largest supplier of power generating sets, Sterling & Wilson, has scaled up its investment in Nigeria with the official launch of its power solutions showroom and office complex in Lagos.

    This came barely a year after Indian Vice President, M. Hamid Ansari’s visit to Nigeria with 22-man business delegation where they proposed $5 billion additional investment in the Nigerian economy.

    Sterling & Wilson PowerGen Business India, Chief Executive Officer,  Sanjay Jadhav, said the group was extremely excited to open its outlet in the Nigerian market.

    “We realised that the Nigerian power generating market is as robust as that of India where you need scalable tough, reliable,  efficient and genuine power generating products. Apart from providing mechanical, electrical and plumbing solutions since 1927, we are India’s leading supplier of GenSets. So, we are offering our range of products and services designed to meet the growing needs of businesses and consumers for stable power supply including GenSet sales and services, gas power project engineering, supply and turnkey execution along with a complete range of mechanical, electrical and plumbing (MEP) solutions,” Jadhav said.

    Head, PowerGen Business for West Africa, Mr. Bipin Moye, noted that the Sterling & Wilson showroom is the first power solutions showroom in Nigeria and will display the full range of Sterling branded diesel generators.

    “It will also offer the opportunity of cutting edge service, repairs and factory warranty management backed by the availability of experienced and well trained technical service staff, making this a great option for power consumers such as construction and project sites facilities managers, manufacturers, schools, businesses offices, and other stakeholders,” Moye said.

    He pointed out that Sterling and Wilson generating sets are built for reliability and designed with compactness and durability in mind.

    According to him, the new Perkins powered diesel generator sets are built to world-class standards, for high efficiency, low fuel consumption and global emissions compliance and come in a range of options to match customer’s power needs, making the process of choice and installation really simple.

    “Throughout our company, we have strived to give customers the best possible in generating sets with efficiency, reliability and global emission quality standards in mind. We also have on offer our range of gas power solutions with capacity between 300 KWe to 25 MWe and multiples for large corporate consumers in the manufacturing, healthcare and oil and gas market segments,” Moye said.

    He added that Sterling and Wilson Nigeria Ltd is an ambitious inroad into Nigeria by Sterling and Wilson pvt India.

  • Standard Alliance concludes merger

    Standard Alliance Insurance Plc has completed its business merger with Standard Alliance Life Assurance Limited  by issuing 917.86 million ordinary shares to shareholders of Standard Alliance Life Assurance Limited to take over all assets and liabilities of the firm.

    According to the scheme of merger, five ordinary shares of Standard Alliance Insurance were exchanged for seven ordinary shares of Standard Alliance Life Assurance Limited.

    The additional 917.86 million shares have been listed on the NSE, increasing the total issued and fully paid up shares of Standard Alliance Insurance from 11.99 billion to 12.91 billion ordinary shares.

     

     

  • Investors scout for banking stocks amidst tight trading

    Banking stocks dominated trading yesterday at the Nigerian Stock Exchange (NSE) as investors continued the tit-for-tat bargain-hunting and profit-taking that usually precedes earnings season. With 19 gainers and losers each, benchmark indices at the Exchange showed average decline of 0.34 per cent, equivalent to net capital loss of N42 billion.

    The momentum of activities however remained above average, driven by transactions in banking stocks. Banking stocks accounted for some three-quarters of turnover within the five-hour trading session.

    Aggregate market value of all quoted equities closed at N12.617 trillion as against its opening value of N12.659 trillion. The All Share Index (ASI)-the main price index for the Nigerian stock market, declined from its opening index of 36,776.60 points to close at 36,652.82 points. The average year-to-date return dipped to 36.38 per cent.

    Most sectoral indices however closed on the upside, underlining the fact that the negative overall market position was largely due to losses by highly capitalised stocks. The NSE Insurance Index appreciated by 2.4 per cent. The NSE Oil & Gas Index rose by 0.6 per cent while the NSE Industrial Goods Index inched up by 0.2 per cent. However, the NSE Consumer Goods Index dropped by 1.1 per cent while the NSE Banking Index slipped by 0.2 per cent.

    Nigerian Breweries-NSE’s second most capitalised stocks, led the losers with a drop of N4.90 to close at N164. Stanbic IBTC Holdings dropped by 95 kobo to close at N40.05. United Bank for Africa declined by 16 kobo to close at N9.18. Vitafoam Nigeria lost 14 kobo to close at N2.66 while University Press and Dangote Sugar Refinery dropped by 12 kobo each to close at N2.45 and N13.65 respectively.

    On the positive side, Seplat Petroleum Development Company led the gainers with a gain of N7.51 to close at N480. Nestle Nigeria rose by N2.92 to close at N1,233.12. Cement Company of Northern Nigeria added 86 kobo to close at N10.18. Guinness Nigeria rose by 75 kobo to close at N99.25 while Red Star Express appreciated by 24 kobo to close at N5.16 per share.

    Total turnover stood at 336.38 million shares valued at N1.83 billion in 3,689 deals. Diamond Bank was the most active stock with a turnover of 230.56 million shares valued at N230.24 million. Skye Bank followed with 13.44 million shares worth N6.77 million. Zenith Bank recorded a turnover of 10.5 million shares valued at N265.77 million.

    “As indicated by the market breadth, we expect sentiment to stay strong in the interim as investors take position ahead of the release of nine-month 2017 corporate earnings which are expected to be largely positive,” Afrinvest Securities stated.

  • NSE lifts suspension on Thomas Wyatt, African Alliance Insurance

    NSE lifts suspension on Thomas Wyatt, African Alliance Insurance

    The Nigerian Stock Exchange (NSE) has lifted the suspension it placed on trading on the shares of Thomas Wyatt Nigeria Plc and African Alliance Insurance. The resumption of trading on the two companies was sequel to the submission of the relevant earnings reports of the companies.

    According to the Exchange, Thomas Wyatt Nigeria, which was one of the companies suspended recently, submitted its audited accounts for the period ended March 31, 2017 on October 06 2017.

    “In view of the submission of the relevant accounts and our satisfaction that the accounts complied with our applicable rules, the Exchange has lifted the suspension of trading in the shares of Thomas Wyatt Nigeria Plc,” the NSE stated. Trading resumed on Thomas Wyatt on Monday, October 9, 2017.

    The NSE stated that it lifted the suspension on African Alliance Insurance on October 10, 2017 after the Exchange was satisfied that the submitted accounts complied with applicable rules.

    The NSE had recently suspended trading on the shares of four companies following the failure of the companies to adhere to best corporate governance and extant post-listing requirements. Three other companies remain under suspension including Academy Press Plc,  Nigerian German Chemical Plc and Roads Nigeria Plc.

    The companies were suspended after they failed to file their accounts and operational reports as required by the listing rules at the Exchange. The suspension will remain in place until the companies file the relevant accounts and reports.

    With the suspension, investors will not be able to trade on the shares of the companies, thus denying them opportunities to raise funds through such investments in case of financial needs.

    Post-listing rules at the NSE require quoted companies to submit their audited earnings reports, not later than 90 calendar days, or three months, after the expiration of the period. The rules also require quoted companies to submit interim report not later than 30 calendar days after the end of the relevant period.

  • Lafarge Africa, Nigerian Breweries drag equities to N19b loss

    Nigerian equities traded on a tight balance of bargain-hunting and profit-taking yesterday at the Nigerian Stock Exchange (NSE), but losses by two highly capitalised companies-Lafarge Africa and Nigerian Breweries, weighed down the overall market position.

    With 19 gainers and losers each, the market appeared to be on a momentary pause after the recent streak of rallies with investors looking up to third quarter earnings of companies to determine the next major move of the market. Many companies indicated yesterday that they have scheduled the board meeting to consider their third quarter earnings, usually the last process before the release of the earnings reports for non-financial companies.

    Lafarge Africa, Nigeria’s second largest cement company, which had indicated a rights issue, declined by N2.39 to close at N54.50. Nigerian Breweries- Nigeria’s second most capitalised quoted company, followed with a loss of N1.10 to close at N168.90.

    With these, the aggregate market value of all quoted companies dipped by N19 billion from its opening value of N12.678 trillion to close at N12.659 trillion. The All Share Index (ASI)-the main index that tracks share prices at the Exchange, dropped marginally by 0.15 per cent to close at 36,776.60 points as against its opening index of 36,831.93 points.  The average year-to-date return slipped marginally to 36.85 per cent.

    Total turnover however stood above average with the exchange of 353.19 million shares valued at N3.26 billion in 4,201 deals. The three most active stocks were Diamond Bank, with 215.76 million shares; Fidelity Bank, 15 million shares and FCMB Group, with 14.59 million shares.

    Other top losers were C & I Leasing, with a drop of 18 kobo to close at N1.74; FBN Holdings, which lost 6.0 kobo to close at N6.08 while Diamond Bank and Custodian and Allied declined by 5.0 kobo each to close at N1 and N3.60 respectively.

    On the upside, Flour Mills of Nigeria, which announced ongoing arrangements for a supplementary capital raising, led the contrarian stocks with a gain of N1.13 to close at N29. Cement Company of Northern Nigeria followed with a gain of 86 kobo to close at N9.32. PZ Cussons Nigeria rose by 50 kobo to close at N23.74. Cadbury Nigeria added 40 kobo to close at N10.40 while Northern Nigeria Flour Mills chalked up 27 kobo to close at N5.77 per share.

  • Coronation Asset Management lists 3 mutual funds

    Coronation Asset Management, a subsidiary of Coronation Merchant Bank Limited, yesterday listed three mutual funds on the Nigerian Stock exchange (NSE), opening new opportunities for retail and institutional investors to invest in pools of diverse securities.

    The three listed funds were Coronation Money Market Fund; Coronation Fixed Income Fund and Coronation Balanced Fund. The listing followed the success of the company’s initial public offerings for the mutual funds.

    Within its first year of commencement of business, Coronation Asset Management successfully pooled  479 subscribers with N1.65 billion through the Coronation Money Market fund, Coronation Fixed Income had 39 subscribers and yielded N315.205 million while Coronation Balanced Fund with 64 subscribers achieved N198.615 million.

    Chairman, Coronation Asset Management, Mr. Abubakar Jimoh, said the listing was another milestone in the history of the company and a validation of its expertise in asset management.

    “By listing the N2.168 billion raised from the three funds on the stock exchange today, we are demonstrating to our investors that we are determined and committed to offer better prospects on their investments across all market conditions,” Jimoh, who is also Managing Director of Coronation Merchant Bank, said.

    Speaking on the funds, Aigbovbioise Aig-Imoukhuede, a Director in Coronation Asset Management noted that the funds will guarantee investors’ competitive yields as the company has put together a strong investment management team who will be guided by an investment committee with over 50 years combined experience to ensure the funds deliver on the expectations of investors.

    He noted that while the Coronation Money Market Fund offer investors the opportunity to maximize return on their liquid savings, the Coronation Fixed Income and Balanced Funds provide the best opportunity to realize medium to long term investment goals.

    According to him, the funds, which opened from July 10 and 28, 2017 at N1 per unit, offered all categories of investors, three viable options in line with domestic economic and financial market conditions, an opportunity to diversify their investment portfolios while relying on the experience and performance track record of the Coronation Brand to ensure their investments attain its required financial outcome.

  • Stakeholders call for concerted efforts on investor education

    Stakeholders at the Nigerian capital market have called for increase in investor education and development of attractive and innovative products to enhance domestic participation in the Nigerian stock market.

    At an Investor Clinic organized by the Securities and Exchange Commission (SEC) in Lagos as part of activities to mark the world investor week (WIW), stakeholders noted the need for continuous campaign to enlighten Nigerians on the benefits of savings and investments with a view to deepening the stock market with retail investors, especially the youth.

    Director General, Securities and |Exchange Commission (SEC), Mr. Mounir Gwarzo, pointed out that the world investor week was a week set aside for educating investors on their rights.

    Gwarzo, who was represented by the executive director, market development of SEC, Mr. Eddy Rowlands said that the Commission would continue to embrace initiatives that would move the market forward.

    According to him, the WIW was a week set aside primarily for educating investors to let them know what their rights are. Concentrating or notifying investors what the market regulators and operators are doing in protecting their investments.

    He noted that there is low participation of investors within the age of 25 years investing in the capital market, and this call for more enlightenment to the younger generation.

    He added that the Commission had established financial inclusion programmes to increase market participation and as well boost collective investment scheme among market women and men.

    Founder, Independent Shareholders Association of Nigeria (ISAN), Mr Sunny Nwosu said that there was need for friendly policies and regulation by the capital market regulators.

    Nwosu said lack of proper compensation to investors that lost their funds during the market meltdown contributed to poor investor confidence in the market.

    He also decried the move to invest the unclaimed dividend funds into special funds noting that this initiative will not be supported by shareholders.

    Nwosu said that the proposed issuance of electronic annual report should not be made mandatory but optional, noting that extant law stipulated that annual reports must be posted to shareholders 21 days before the annual general meeting.

    Chief Executive Officer, AFEX Commodities Exchange, Mr. Deji Balogun commended the Commission for taking the capital market to the younger generation.

    Balogun also tasked market operators on the need for introduction of new products that would appeal to the younger generation.

    He said that opening of stockbroking accounts for new investors should be done through smart phones in line with present realities.

    Registrar, Institute of Capital Market Registrars, Dr. David Ogogo, said that the issue of the unclaimed dividends would soon be an issue of the past as registrars would continue to work with market regulators and operators to ensure effective implementation of the 10-year capital market masterplan.

  • Dangote Cement declines bid on SA firm

    Dangote Cement declines bid on SA firm

    Dangote Cement Plc, Nigeria’s most capitalised quoted company and Africa’s largest cement producer, at the weekend stepped down from its much-publicised bid to acquire the share capital of PPC Limited-a South African leading cement firm.

    In a regulatory filing at the weekend, Dangote Cement board of directors stated that it has notified PPC board of directors that it no longer has an interest in acquiring the South African firm’s share capital.

    Dangote Cement had last month confirmed that it had initiated a bid to acquire the entire share capital of PPC Limited. It, however, noted that the acquisition talks were still at the preliminary stage and the transaction remained a potential one, contrary to reference to the talks in some quarters as ongoing.

    Established in 1892 as De Eerste Cement Fabrieken Beperkt, PPC is a leading supplier of cement and related products in southern Africa. It has 11 cement factories in South Africa, Botswana, Democratic Republic of Congo, Ethiopia, Rwanda and Zimbabwe.

    With annual capacity of 11.5 million tonnes of cement products, PPC’s materials business comprise Safika Cement, Pronto Readymix (including Ulula Ash) and 3Q Mahuma Concrete. Its footprint in the readymix sector has grown to include 26 batching plants across South Africa and Mozambique.

    Also, PPC produces aggregates; with its Mooiplaas aggregates quarry in Gauteng, having the largest aggregate production capacity in South Africa. PPC Lime, one of the largest lime producers in the southern hemisphere, produces metallurgical-grade lime, burnt dolomite and limestone.

    PPC is closely linked to the growth and development of South Africa as it has produced cement for many of the country’s most famous landmarks and construction projects.

    Two global rating agencies, Moody’s Investors Service and Global Credit Ratings (GCR), recently rated Dangote Cement high for its financial strength and corporate outlook. In rating reports, both global rating agencies described the outlook of the Africa’s largest cement producer as stable.

    Moody’s assigned three respective high ratings to the cement company, including a first time Ba3 Local Currency Corporate Family Rating (CFR), Ba3-PD Probability of Default Rating and Aaa.ng National Scale Rating (NSR).

    Global Credit Ratings assigned long-term and short-term national scale issuer ratings of AA+ (NG) and A1+ (NG) respectively to Dangote Cement.

    Assistant Vice President and Lead Analyst for Dangote Cement at Moody’s, Douglas Rowlings, said the ratings reflected Dangote Cement’s “strong standalone credit profile and track record of demonstrated financial support from a larger and more diversified parent, Dangote Industries Limited”.

    Chief Executive Officer, Dangote Cement Plc, Onne van der Weijde, noted that the ratings highlight the financial strength the company had achieved through unwavering focus on the profitable expansion of its business.