The Nation Newspaper

Category: Equities

  • Stockbrokers eye improved operations with cloud technology

    tockbroking chiefs and major stakeholders in the capital market are confident that the adoption of a cloud-enabled operational technology by the Nigerian stockbroking industry will improve efficiency.

    Marlin, a cloud-based stockbrokerage application, was introduced to the stockbroking community at a seminar at the Nigerian Stock Exchange (NSE) in Lagos. Marlin, which automates the entire process and workflow of all brokerage firms, was launched in Nigeria by Info Tech Financial Technologies Limited,

    Speaking at the end of the seminar, stockbrokers and other stakeholders said the cloud-based application was capable of impacting the market in many positive ways.

    Immediate past chairman, Association of Stockboroking Houses of Nigeria (ASHON), Mr. Emeka Madubuike said Marlin will enhance the speed of doing business and transparency while also linking the Nigerian brokerage community to the global markets.

    “The whole  market has changed and given where we are in the information communication technology space,  the product has come at the right time and the benefits are numerous for us to take advantage of,” Madubuike said.

    General manager, operations,   Central Securities Clearing System (CSCS) Plc, Dr.  Joe Mekiliuwa said the application was a robust one that would enable the brokerage community to optimise the straight through process (STP) to interact with the Nigerian Stock Exchange (NSE) and other participants.

    According to him, with Marlin, stockbrokers would be able to relate with CSCS better and with more accurate data.

    “It means that if the brokers try to communicate with us, it will be in an more organised way and seamlessly, they will be able to relate with us because if they keep good records, one way or other it will impact on us positively,” Mekiliuwa said.

    Chief executive officer, InfoTech Financial Technologies Limited, Mr. Amir Khan, said it would enable brokers to concentrate on their core business strategies and processes, while leaving the company to handle the technological front.

    He pointed out that Marlin automates the entire business process and workflows of brokerage firms adding that the product offers numerous business advantages such as increased efficiency, better risk management, low cost and ability to manage trade cycle from order to settlement through one system.

    Khan listed some of the features of Marlin to include: adherence to know-your-customer policy for improved compliance; browser based geographically independent access which is user friendly; support to manage multiple branches and with privileged access capability for respective branch to do local distributed processing; support of multiple asset classes, integration with central depository for quick reconciliation; and multiple settlement types at instrument level smooth data migration.

    He outlined that the back-office module of Marlin manages entire cycle from account registration to settlement and offers a number of business advantages in the areas of operational efficiency, transparency, customer experience and improved control.

  • Firm floats N20b investment trust

    Top Services Limited (TSL) said is floating a N20 billion Real Estate Investment Trust (REIT) to increase its investment in the property sector.
    The property development firm with specialty in providing neighbourhood malls, said the close-ended TSL REIT offer, which opened last week, consists of 20 million units for subscription at N1, 000 per unit.
    The REIT is backed by ARM Trustees Limited, Stanbic IBTC Bank Plc and Leadway Assurance Plc. The offer has First Ally Capital as its Lead issuing house and First Ally Asset Management as its Fund Manager.
    “Having identified the need for Well-located and affordable retail/mall spaces to help catalyse the growth of local retailers, Top Services Limited committed itself to building and delivering neighbourhood malls that are affordable yet of high quality to attract anchor tenants,” it said.
    Chairman of Top Services Limited, Tokunbo Omisore, said initial investments by the REIT will focus on retail-related real estate including the highlighted four malls owned by the company. Promising stable and regular income distribution to investors in the REIT, he disclosed that the malls can boast of diverse corporate tenant profile with staggered rental renewal periods which prevents mass vacancy at any one period.
    He listed the strengths of the TSL REIT to include predictable cash flow, multiple anchor tenants at each location with long term leases, rental payments agreements that are indexed to the naira-dollar rate, zero leverage of assets at inception.
    He said investors will not partake on development, construction or financing risk even as the malls have high average occupancy rate as all the malls are at or above 80 per cent occupancy levels.
    Managing Director of First Ally Asset Management, Winston Osuchukwu, said: “Investing in the Top Services Limited Real Estate Investment Trust allows for diversification of investment portfolio thereby reducing portfolio risks. Let me assure investors that the REIT will be managed by professionals with great care, top skill, prudence and diligence”.
    He explained that for instance, the Investment Committee consists of professionals of diverse skills and in depth knowledge in real estate investment and operations.
    He appealed to institutional investors, particularly the Pension Fund Administrators (PFAs), to take advantage of the REIT.
    He assured them that the REIT’s excess capital will be invested in upgrading existing facilities, government securities and real estate related investments to enhance the yield of the fund, among other projected income streams.
    The TSL has developed four malls, namely Adeniran Ogunsanya Mall, Surulere, Apapa Mall, Apapa, Cocoa Mall, Dugbe, Ibadan, Oyo State and Akure Mall, Akure, Ondo State, all of which are operational and have occupancy rates of over 80 per cent.

  • Heritage Bank sponsors Bukas’ Season 3

    Heritage Bank sponsors Bukas’ Season 3

    Heritage Bank of Nigeria Plc has in its bid to promote local foods and strengthen the domestic market, sponsored Season-3 of Bukas & Joints, hosted by Olisa Adibua, a media practitioner.
    The launch of the screening of the Season-3 television food show in Lagos was organised by Biola Alabi Media, the producers of the programme.
    The Season-3 was screened in Enugu in the Southeast and the Federal Capital Territory (FCT). In the Southeast, the local bukas that the production team visited include Ntachi-Osa Canteen, in the New Haven of Enugu, Emily Restaurant and New Berries Park while in Abuja, they were Bean Bag located at Ramaya Royal Park on Ahmadu Bello Way, Iyo Oyo Kitchen based in Wuye and a Kilishi joint located in Area 1 Garden in Garki, Abuja.
    Mr. Fela Ibidapo, Group Head, Corporate Communications of Heritage Bank, said the bank was proud to be associated with the programme in order to promote local foods and strengthen the domestic market.
    He hinted that since indigenous food is part of our heritage, the bank will continue to chart a path forward to increasing local food production and processing, while supporting job growth and healthy communities. He assured that the bank would continue to support the programme and also others that relate to the Nigerian heritage. Speaking on his experience on the new season, Adibua said the whole essence of the show was that through that the travels and discoveries exposed them to the lifestyles of the people they meet in some cities.

  • NSE to release guidelines on sustainability disclosures

    NSE to release guidelines on sustainability disclosures

    The Nigerian Stock Exchange (NSE) will this year launch its guidelines on sustainability disclosures as part of efforts to ensure that quoted companies contribute to improving and sustaining standards of living by doing their businesses in a way that preserves the environment.
    Chief executive officer, Nigerian Stock Exchange (NSE) Mr. Oscar Onyema, said the Exchange has held itself accountable to the highest standards of sustainable development; it will later this year launch the Exchange’s Sustainability Disclosure Guidelines, which will provide quoted companies with the rules and framework for sustainability reporting.
    He said the NSE, as a sustainable Exchange, has continued to highlight the importance of sustainable business practices in delivering value and supporting economic growth, noting that the NSE is intensifying its advocacy efforts to support the integration of the Environmental, Social and Governance (ESG) imperatives in the Nigerian capital market.
    The World Federation of Exchanges had in November 2015 issued guidelines on ESG reporting. WFE had identified 33 ESG indicators that might be of concern to exchanges. While the guidelines are not compulsory, they however serve to provide framework and benchmarks on ESG for consideration by other Exchanges. NSE is a member of WFE.
    Deloitte, the global financial services group, noted that while sustainability reporting has traditionally been voluntary, heightened regulatory and legal scrutiny, along with other market developments, indicates that the transparency and accuracy of sustainability reporting is increasingly important.
    “For example, recent high-profile incidents involving automotive, big-box retail, and energy and resources companies highlight growing attention to public company nonfinancial disclosures-such as how environmental, social, and governance (ESG) or sustainability topics are disclosed to stakeholders, especially investors. In addition, the climate change agreement reached at the 2015 Conference of Parties (COP21) and several other important developments highlight the movement toward more standardised, transparent, and meaningful ESG disclosures that drive value for users of the reported information and for public companies themselves,” Deloitte stated in the report titled: sustainability reporting, getting ahead of the curve.
    Investors and capital markets institutions are increasingly factoring ESG performance into investment decisions. In a September 2015 ESG survey published by CFA Institute, 73 per cent of investors responding to the survey said they take ESG issues into account in their investment analysis and decisions. The top reason investors consider ESG-related information is not to derive reputational benefit but to determine whether a company is adequately managing risk.
    Meanwhile, Onyema has urged newly inducted stockbrokers to uphold the integrity of the stock market.
    According to him, the Exchange believes that people will always make the difference in any endeavour, especially the capital market, when every other supporting conditions are right. It is for this reason that it carefully puts prospective employees, dealing members, and other players through a stringent screening process that ensures only the cream of the crop make it through its doors.

  • Portland Paints opens application for N1b rights issue

    Portland Paints and Products Nigeria (PPPN) Plc has opened application list for its N1 billion rights issue, paving the way for shareholders of the paints and chemical company to pick up their rights.
    PPPN is raising N1.02 billion through a rights issue of 600 million ordinary shares of 50 kobo each at N1.70 per share. The provisional allotment for the rights issue is on the basis of three new ordinary shares for one ordinary share.
    The application list will close on Wednesday, March 1, 2017.
    Chairman, Portland Paints and Products Nigeria (PPPN) Plc, Mr. Larry Ettah has said the new equity funds would be used to restructure the company’s balance sheet and support its business expansion programme.
    “We will apply the planned rights proceeds to minimise the debt exposure risks of our business as well as carry out targeted expansion in our operations. The business will focus on its growth brands as well as make the necessary investment in marketing to improve its brands’ awareness and visibility,” Ettah said.
    He said the company had embarked on intensive restructuring of its operations in order to strengthen it against challenges that had negatively impacted its operations.
    Ettah explained that PPPN embarked on restructuring as a result of the difficult and challenging economic and business environment.
    He however noted that despite the challenges and risks posed by the business environment, the company with its flagship brand Sandtex, will continue to consolidate on the restructuring while seeking growth opportunities to deliver returns to the shareholders.
    In June 2013, UAC of Nigeria (UACN) Plc, Nigeria’s largest conglomerate, acquired the majority equity stake of 51 per cent in Portland Paints. Following the acquisition, the board and management of the company were reconstituted. Mr. Larry Ettah, who leads the management at UACN, became the chairman.

  • FirstBank shines at Global Brands Awards

    FirstBank shines at Global Brands Awards

    Nigeria’s most valuable bank brand, First Bank of Nigeria Limited has won the “Best Banking Brand, Nigeria 2016”& “Best Banking Performer, Nigeria 2016” in the Global Brands Awards.
    The awards are instituted to recognise exceptional service delivery and reward performance.
    According to Global Brands Magazine, the awards reflect the countless hours of time and efforts spent by FirstBank employees in achieving the vision of the company and making its customers happy.
    Group Head, Marketing and Corporate Communications, First Bank of Nigeria Limited, Mrs. Folake Ani-Mumuney, said: “The awards are a testament to the bank’s commitment to put customers first and at the heart of our business in line with our ‘You First’ mantra. We will always deliver the ultimate ‘gold standard’ of value and excellence”.
    “Our financial services knowledge and practices lead the market in ensuring that we understand our customers and surpass their expectations as we strive for a better way of delivering first-class service and experience,” she added.

  • Cloud technology to boost stock market efficiency

    A stockbrokerage industry-specific cloud platform, known as MARLIN, is set to be introduced into the stock market with a view to boosting the operational efficiency of stockbroking firms and the overall market performance.
    InfoTech Group, a renowned company for wide range of software solutions for financial markets and the owner of MARLIN will be hosting an informative seminar on MARLIN for Nigerian Stock Exchange (NSE)’s dealing members tomorrow.
    The company stated that MARLIN had been designed to provide rapid provisioning of high end financial applications for emerging economies to boost stockbrokers’ business efficiency. It enables brokerage houses to improve business efficiency by levering on fully managed technology service.
    “Regarding the seminar, our aim is to address complex professional needs immediately with cutting edge technology that is relevant to addressing end user concerns and help improve efficiency and transparency,” the company stated.
    The company said that it intends to make recommendations to brokerage firms based on its vast working experience in African markets.
    According to the Info Tech Group, the company’s global presence in multiple continents – Asia, Africa, Europe, and Middle East- empowers it for strong delivery channels and post implementation support regionally.
    “Our solutions for financial markets provide a unique blend of technology, domain, and methodology expertise to deliver cutting edge results at rapid speed and low delivery risk. We exploit our financial understanding to create tangible value for customers in terms of strategy as well as implementation. We specialise in designing solutions for financial markets by leveraging technology of award- winning MARLIN and Capizar,” the company stated.

  • CBN sells N400b T-Bills to mop up liquidity

    CBN sells N400b T-Bills to mop up liquidity

    •Capital importation hits $1.5b

    The Central Bank of Nigeria (CBN) sold N400 billion ($1.27 billion) of Treasury bills at the weekend, lifting the interbank lending rate to 12 per cent.
    The apex bank sold N82 billion in 181-day Treasury bills at 18 per cent and N309 billion at 18.6 per cent, mopping up liquidity from the money market and pushing up the cost of borrowing among lenders. “We have some major placers quoting about 20 per cent for overnight placement, but most takers are not willing to borrow at that rate,” one dealer told Reuters.
    The markets had opened on Thursday with a surplus liquidity of about N467 billion due to an injection of matured Treasury bills until the CBN debited banks for the purchases of N302.4 billion in primary market Treasury bills.
    Traders said the CBN further moved to cut liquidity with the sale of open market operations bills, which brought returns above the inflation rate.
    The CBN raised N302.4 billion at the Wednesday’s Treasury bills auction, more than the N242 billion planned due to strong demand for the one-year debt, while payment for the purchased was debited from commercial lenders’ accounts on Friday.
    The naira traded flat at both the official interbank window and parallel market, with black market traders quoting N498 to the dollar. Commercial lenders quoted the currency at 305.25 a dollar, about the level it has traded since August.
    Meanwhile, data from the National Bureau of Statistics (NBS) showed that Nigerian Capital Importation, which covers fourth quarter of last year was estimated at $1.5 billion, a decline of 15 per cent quarter-on-quarter and 0.5 year-on-year.
    Monthly imports within the quarter were relatively although December recorded marginally the highest level of $555 million.
    Yearly, capital imports fell by 47 per cent from $9.6 billion in 2015 to $5.1 billion. The figure was the lowest since the series’ inception in 2007.

  • FCMB raises N5.1b via bonds

    FCMB raises N5.1b via bonds

    First City Monument Bank (FCMB) has sold N5.1 billion ($16 million) of bonds, less than te amount it planned to raise, at an interest rate coupon of 17.25 per cent, its advisers said.
    The seven-year bond was issued by way of a book-building with Standard Chartered Bank, local investment bank Chapel Hill Denham and FCMB Capital Markets as book runners. The offer was fully subscribed, they said in a statement.
    Several Nigerian lenders will likely raise fresh capital this year or sell some assets to boost capital ratios, after low oil prices created dollar shortages and weakened the naira leading to a pile-up of non-performing loans.
    Last November FCMB said it wanted to raise funds to strengthen its capital base but it halved the amount it planned to raise to N7.5 billion in debt after announcing a bond sale of up to N15 billion three months earlier.
    Last year the lender closed some branches and slowed loan growth to conserve its capital, which was close to the regulatory limit of 15 percent of assets at mid-year.
    Chief Executive Ladi Balogun said then it was undertaking the capital raising to provide an additional cushion.
    Nigeria has been issuing bonds at yields below inflation, making it difficult for corporates to raise debt, as the government increases borrowing to try to spend its way out of the country’s first recession in 25 years.
    In January the government sold a five-year bond at 16.89 per cent to raise N34.95 billion. Annual inflation in Nigeria hit 18.55 per cent in December, its 11th straight monthly rise to a more than 11-year high. FCMB’s shares were down 3.82 per cent on Friday at N1.28, having gained 19 percent this year. Shares fell 35 per cent in 2016.

  • Oxford Business Group projects economic growth

    The Nigerian Investment Promotion Commission (NIPC) has signed a Memorandum of Understanding (MoU) with Oxford Business Group (OBG) for the firm’s forthcoming report on the country.
    Under the deal, the Commission will team up with OBG to produce titled: The Report: Nigeria 2017.
    In the latest infographic produced by the global publishing, research and consultancy firm OBG charts Nigeria’s latest efforts to shore up its economy in the wake of a currency float and lower global oil prices.
    The data highlighted the growing role that banks are playing in supporting business expansion, with lending to Nigeria’s private sector having almost doubled between 2010 and 2015. The OBG’s infographic also noted Nigeria’s drive to improve efficiency across its energy sector, which has helped to increase gas production by almost 70 per cent since 2014.
    Other positive trends included heightened port activity, with container throughput up by 115 per cent since 2007, the Group found, buoyed by higher levels of imports.
    NIPC’s Executive Secretary/CEO, Yewande Sadiku, said she expected OBG’s report to sharpen its focus on Nigeria’s diversification efforts and priority areas of the economy, especially agriculture, infrastructure, solid minerals development, amongst others.
    “With the current reality of lower oil prices, challenges with foreign exchange rates and liquidity,and lower government revenues despite Nigeria’s solid long term fundamentals, the current administration’s efforts at broadening Nigeria’s economic base, and directing investments to priority sectors demonstrate a commitment to improving the economy’s ability to cope better with such challenges in future,” she said. “I’m delighted that we will be working with Oxford Business Group once again and helping them to chart and bring to the fore, the opportunities that this transitional period in the country’s economic development presents for their readers.”
    OBG’s Country Director, Diana Rus, agreed that like many of its peers, Nigeria is facing several near-term challenges. “While its long-term domestic fundamentals remain attractive, Nigeria’s short-term outlook will depend heavily on how the country reacts to external pressures, including a rising dollar and global debt sell-offs,” she said. “With all eyes on the government’s reform package, which includes privatisation measures, I’m thrilled that we will once again benefit from the Nigerian Investment Promotion Commission’s insight in our research.”

    The Report: Nigeria 2017 will be a vital guide to the many facets of the country, including its macroeconomics, infrastructure, banking and other sectoral developments. It will also contain interviews with leading representatives from the public and private sectors.
    The Report: Nigeria 2017 will be available in print and online. Topical issues relating to Africa’s largest economy will be analyzed further in The Report: Nigeria 2017, OBG’s forthcoming report on the country.