The Nation Newspaper

Category: Equities

  • SEC to review N90b unclaimed dividends

    Securities and Exchange Commission (SEC) would review the procedures and structures for the management of unclaimed dividends as part of efforts to reduce the backlog of returned monies.

    Director General, Securities and Exchange Commission (SEC), Mr. Mounir Gwarzo, said the apex capital market regulator would take another look at the backlog of unclaimed dividends, which currently stand at around N90 billion.

    He said while the launching of the electronic dividend (e-dividend) would stem future accumulation of unclaimed dividends, the Commission would take measures to reduce the backlog of unclaimed dividends.

    SEC had recently directed registrars to immediately begin the implementation of e-dividend. In a circular to all registrars, the apex capital market regulator had stated that the e-dividend mandate management system (e-DMMS) portal was ready for use by all registrars and banks. The e-DMMS portal was launched July 29, 2015 by SEC, which subsequently coordinated trainings for officials of share registration companies.

    According to SEC, it is now mandatory for every registrar to immediately commence the use of the e-DMMS portal as directives will soon be issued to banks to discontinue the verification of paper mandates presented to bank branches.’

     

     

     

  • Guinness Nigeria predicts better performance

    Guinness Nigeria predicts better performance

    •Shareholders approve N4.8b dividend

    Guinness Nigeria Plc has assured shareholders that it would work to create better returns in the years ahead as the brewing company reiterated its commitments to global best practices and the Nigerian economy.

    At the annual general meeting of the company in Abuja yesterday, shareholders approved gross dividend of N4.8 billion, representing a dividend per share of N3.20. The dividend will be paid today.

    Chairman, Guinness Nigeria Plc, Babatunde Savage, said the board and management of the company would maintain sustainable growth by implementing good business strategies and sustaining the top-end quality of its products.

    He noted that although the operating environment remained daunting, the company recorded a credible performance in its full year results and is now poised for better performance in the 2016 financial year and beyond.

    “Going into the 2016 financial year, the board and management are resolute in their commitment to improve the performance of the company and deliver greater value and return on investments to shareholders,” Savage said.

    He reiterated the commitment of Guinness Nigeria and its parent company, Diageo to supporting Nigeria’s developmental aspirations by strengthening the country’s manufacturing base, employment creation, manpower development and fuelling overall economic growth.

    He added that in the area of corporate social responsibility, the company has continued to maintain a strong focus on impactful projects across its host communities in the areas of health, water provision, environmental protection and road safety.

    Responding to questions on the issue of sanctions on the company announced by the National Agency for Food and Drugs Administration and Control (NAFDAC) over alleged infractions, Savage emphasized that Guinness would continue to explore every path for a fair resolution of the matter.

    “We have had very robust relationship with NAFDAC for as long as I can remember. We intend to maintain that relationship. Discussions are ongoing. I believe the issues will be amicably resolved,” Savage said.

    He reiterated Guinness’ commitment to continuously entrench the highest standards of good manufacturing practices and to ensure its products are top quality, noting that many of the company’s brands have been in existence for very many years, which is made possible by its focus on quality and customer satisfaction.

    Managing director, Guinness Nigeria, Mr. Peter Ndegwa, assured that Guinness Nigeria will continue to strengthen its business through significant investments in manufacturing processes, local content development, product innovation, cutting-edge technology and capacity building.

    “Our strategy of maintaining a franchise that continues to generate sustainable returns to our stakeholders remains unshaken. Our continued investment in staff training, technology, innovation and system upgrades is to accelerate sustainable value creation for our customers and shareholders, as well as ensure that products rolling out of our plants are comparable to the best in quality in any part of the world,” Ndegwa said.

  • Investors to start receiving direct cash payment January 2

    Investors in the Nigerian capital market would be credited directly with the net proceeds of stock market transactions as from January 2, 2016.

    The Capital Market Committee (CMC), the umbrella body of all capital market stakeholders under the leadership of the Securities and Exchange Commission (SEC), yesterday at its quarterly meeting in Lagos, mandated all stakeholders to work towards the take-off date of January 2, 2016 for the direct cash payment.

    As against the current general practice whereby the payments for investors’ transactions go into the accounts of the brokers for onward disbursement to their clients, the general practice under the ‘direct cash settlement’ will be to send the net proceeds direct from the clearing and settlement system straight to the investors’ accounts while the existing practice of payment through brokers will become exceptional cases.

    Sources at the high-profile meeting told The Nation that the CMC, under the chairmanship of SEC, directed the Central Securities Clearing System (CSCS) and all the other stakeholders to finalise the modality for the smooth take-off of the direct cash payment by January 2, 2016.

    Under the proposed framework for the direct cash payment, brokers are mandated to provide their clients’ bank account details to the CSCS, being the agent of the Exchange for the clearing and settlement of all securities traded on the Automated Trading System (ATS) of the NSE.

    Settlement of each trade carried out on the ATS shall then be done by direct payment into the client’s account as provided to the CSCS. Besides, brokers are mandated within three working days of receiving instructions from a client that settlement should be done by direct payment into such client’s account to notify the CSCS of the client’s instructions and provide the client’s account details to the CSCS.

    Any broker-dealer that fails to notify and provide the account details within the three-day timeline will be liable to a fine of N250,000 in addition to any other penalty which the Exchange may impose. However, a client that declines direct cash payment into its account provided to the CSCS shall notify the CSCS by completing a direct cash settlement notification form, specially made for that purpose.

    For the meantime, settlement of transactions carried out on behalf of any client whose account details are not provided to the CSCS shall be done by payment into the account of the client’s broker-dealer firm. Also, where a client provides its broker-dealer firm with a written mandate to purchase securities with proceeds from the sale of other securities any payment attributable to the sale shall be made into the account of the broker-dealer firm provided the client gives its consent in that regard.

    Every broker-dealer is also expected to take all reasonable steps to ensure that all details of direct settlement originate from the actual client through confirmation of the client’s details in relations to particulars contained in the ‘Know Your Client’ (KYC) provisions.

  • Investment One advises companies on how to raise funds

    Investment One Financial Services Limited has underscored the need for Nigerian companies to seek professional advice on their capital structure and available financing options in order to grow their businesses and avoid financial shocks.

    At a seminar organised by Investment One Financial Services Limited in partnership with the Network Business Club, experts discussed various ways to attract smart money to grow business.  The seminar was directed at different levels of business, ranging from large companies to Small & Medium Enterprises (SMEs) looking to bring their business ideas to reality or scale up their business. The seminar thoroughly examined how to attract smart money and had various speakers who addressed various aspects of the seminar theme.

    Managing director, Capital Management Division, Investment One Financial Services Limited, Mr Ademola Aofolaju said companies must realize the importance of correct capital structure for their particular kind of business.

    According to him, the proportion of debt to equity may be related to growth potential and cash flow and the varying business needs which may include expansion, working capital and asset acquisition.

    He also outlined the detailed requirement for attracting smart money which include the 5Cs of capital, cash flow, character, capacity and collateral, adding that other requirements may include experience, sound operations, financial records, governance structures, compliance and legal structures and market positioning.

    In his remarks, managing director, Investment One VenCap, Dr. Ore Sofekun, noted that for Nigeria to achieve the desired economic growth, there must be a shift from being a consuming nation to a producing nation. Investment One VenCap is the private equity and venture capital subsidiary of the financial services group.

    She pointed out that for a country with Nigeria’s population size, SMEs is one of the growth engines.

    She added that the seminar was held in line with the group’s commitment to providing financial education to both individuals and businesses, helping them to achieve their desired financial goals.

    Chairman, Networks Business Club, Mr Ernest Obi, explained that the event was borne out of the identified needs of their members who have businesses at different stages of either inception or growth and for whom financial advice was required to achieve the desired result.

    According to him, the objective of the event was to provide business owners with a platform to directly engage investors.

     

     

  • USA to provide 13% of N30b West Africa SMEs fund

    The United States of America (USA) has expressed firm commitment to provide about 13 per cent of a N30 billion private equity fund aimed at small and medium enterprises (SMEs) in the West African region.

    The Overseas Private Investment Corporation (OPIC), the US Government’s development finance institution, has approved a $18.75 million commitment in CBO Investment Management’s (CBOIM) fund, CBO Growth Private Equity Investment Limited Fund. The Fund is seeking to raise $150 million from international and local institutional investors to invest in small and medium enterprise companies (SMEs) in West Africa.

    CBOIM is one of the first private equity fund managers to target African institutional capital through a Nigeria onshore fund in parallel with a fund backed by international investors. The Fund will specifically invest in SMEs with scalable growth patterns and credible management teams across six core sectors including agri-business and food processing, energy services, manufacturing and import substitution, education and healthcare services, technology and media and real estate services. CBOIM and OPIC have a mutual commitment to make investments that not only generate commercial private equity returns but also have a positive developmental impact.

    President and chief executive, Overseas Private Investment Corporation (OPIC), Elizabeth Littlefield said CBOIM presented an opportunity for OPIC to support an institutional-quality investment manager that will provide critical capital to SMEs in a variety of sectors in Nigeria and the rest of West Africa where access to finance for SMEs remains a challenge, but has a strong potential for development impact.

    “I am especially proud that this is the first Africa-focused approval to result from OPIC’s Innovative Financial Intermediaries Program (IFIP), an OPIC initiative to facilitate capital flow to developing economies,” Littlefield said.

    Managing partner, CBO Investment Management (CBOIM), Bex Nwawudu, noted that securing investment from OPIC was a powerful endorsement of the opportunity, the strategy to support the best calibre SMEs in West Africa, and the firm’s governance structures.

    “We have a long term vision for CBO and a clear plan for delivering superior returns. We are now making excellent progress to ensure we are attracting both international and African institutional investors as well as the partnerships required to fulfil them,” Nwawudu said.

    CBOIM was founded in 2008. The firm is based in Lagos and is managed by Managing Partners Bex Nwawudu and Chuka Mordi, along with Managing Director Joanne Yoo. CBOIM recently appointed Gary Steinberg, the former Chief of the Investment Unit at the International Monetary Fund, as Chair of the Advisory Board and to the Investment Committee.

     

     

  • InvestData Consulting holds summit on capital market

    InvestData Consulting Ltd has concluded arrangements to hold its “Invest 2016 Traders & Investors Summit” with a view to mobilizing the Nigerian investing public on the potential of the nation’s capital market.

    In a statement in Lagos, chief operating officer, InvestData Consulting, Mr Ambrose Omordion, said the summit would educate investors on when to buy or sell stocks using technical analysis to avoid losing trading capital and ways to spot opportunities created by market correction.

    He said that the summit would afford the investing public the opportunity to learn how government policy could influence the market and economy in general.

    He noted that the market had recorded huge depression and as well created opportunities for discerning investors to make enhanced returns in 2016.

    He added that the summit would enhance investors knowledge and understanding of the market for profitable returns.

    According to him, global and domestic economic transition that led to high volatility and market correction in recent times had created opportunities for a bullish run.

    Omordion pointed out that government economic policies would drive economic transformation in 2016.

    Some of the expected speakers at the event scheduled for December 5 are Malam Garba Kurfi, Managing Director, APT Securities and Funds Ltd, Mr Abdul-Rasheed Oshoma Momoh, Head, Capital Market, Trw-Stockbrokers Ltd and Mr Gbenga Olukoya, Astute Stock Trader/Broker at Regency Assets Management .Some of sub-themes to be discussed at the summit include outlook of the economy & stock market in 2016 and portfolio reconstruction in the changing market for profitable trades in 2016, using technical analysis, among others.

     

  • Firms, NSE woo investors with mobile trading

    Firms, NSE woo investors with mobile trading

    Four technologically advanced stockbroking firms and the Nigerian Stock Exchange (NSE) have launched an initiative to step up the use of mobile online trading portals for transactions at the stock market. The four stockbroking firms, which included GTI Securities, Investment One Stockbroking International Limited, Meristem Securities and CSL Stockbrokers, had earlier launched mobile trading portals. Capital Bancorp Plc also has online trading portal.

    The new initiative, tagged: “Smart Trade”, being coordinated by the NSE was meant to rally the stock market behind the mobile online trading, standardise and unify the platform and further provide regulatory support for the individual stockbroking firm’s efforts.

    At the launch of the initiative at the Exchange in Lagos, executive director, market operations and technology, Nigerian Stock Exchange (NSE), Ade Bajomo said online and mobile stockbroking have potentials to tremendously improve the depth of the Nigerian capital market by widening investors’ base.

    According to him, from the current retail trading investors’ base of five million, the stock market could leverage on increasing mobile and internet usage in Nigeria to grow retail investors’ base to some 25 million, which will create a win-win situation for all stakeholders.

    Bajomo said the online platform would enable investors to buy and sell stocks on the Exchange with real-time processing functionality, adding that the platform would also enhance financial inclusion, transparency and market integrity as it gives investors greater control over their investment decisions.

    He said the platform would provide users real-time market data with availability of various technical indicators to analyse the trend and momentum of the market, thus enabling investors to make informed decisions based on the latest data.

    He assured that the online portal was made up of world-class technology with robust client data protection and security framework to give clients a seamless experience when processing transaction.

    Managing director, GTI Securities, Amos Aledare, said the stockbroking firm has put in place adequate arrangements to ensure hitch-free operation of its online trading portal.

    Managing Director, Investment One Stockbroking International Limited, Mr Oluwole Awe, said the initiative would move the market to the next level, assuring that stockbrokers would support the initiative to achieve the desired result.

    “The platform has a robust security features, which are well articulated to ensure that investors trades and accounts are not compromised. This platform will enable our client make their stockbroking portfolios on mobile devices tablets, laptops and desk top computers,” Bajomo said.

    He outlined that the mobile online trading initiative would ride on the back of full dematerialisation and the direct cash settlement to create a seamless experience for investors.

    The direct cash settlement initiative will require complete documentation and reconciliation of investor information, holdings, contact details and bank account details.

    According to him, while full dematerialisation is being implemented, the direct cash settlement initiative would be simultaneously implemented, leveraging on the progress made from putting into operation the dematerialisation processes.

    “Direct implication of this initiative would be increased investor control, which in turn would translate to increased investor confidence, improved levels of financial inclusion and surge in trading volumes,” Bajomo said.

     

  • Firms, NSE woo investors with mobile trading

    Firms, NSE woo investors with mobile trading

    Four technologically advanced stockbroking firms and the Nigerian Stock Exchange (NSE) have launched an initiative to step up the use of mobile online trading portals for transactions at the stock market. The four stockbroking firms, which included GTI Securities, Investment One Stockbroking International Limited, Meristem Securities and CSL Stockbrokers, had earlier launched mobile trading portals. Capital Bancorp Plc also has online trading portal.

    The new initiative, tagged “Smart Trade”, being coordinated by the NSE was meant to rally the stock market behind the mobile online trading, standardize and unify the platform and further provide regulatory support for the individual stockbroking firm’s efforts.

    At the launch of the initiative at the Exchange in Lagos yesterday, executive director, market operations and technology, Nigerian Stock Exchange (NSE), Ade Bajomo said online and mobile stockbroking has potential to tremendously improve the depth of the Nigerian capital market by widening investors’ base.

    According to him, from the current retail trading investors’ base of five million, the stock market could leverage on increasing mobile and internet usage in Nigeria to grow retail investors’ base to some 25 million, which will create a win-win situation for all stakeholders.

    Bajomo said the online platform would enable investors to buy and sell stocks on the Exchange with real-time processing functionality adding that the platform would also enhance financial inclusion, transparency and market integrity as it gives investors greater control over their investment decisions.

    He said that the platform would provide users real-time market data with availability of various technical indicators to analyse the trend and momentum of the market, thus enabling investors to make informed decisions based on the latest data.

    He assured that the online portal was made up of world-class technology with robust client data protection and security framework to give clients a seamless experience when processing transaction.

    Managing director, GTI Securities, Amos Aledare, said the stockbroking firm has put in place adequate arrangements to ensure hitch-free operation of its online trading portal.

    Managing director, Investment One Stockbroking International Limited, Mr Oluwole Awe, said the initiative would move the market to the next level, assuring that stockbrokers would support the initiative to achieve the desired result.

    “The platform has a robust security features which is well articulated to ensure that investors trades and accounts are not compromised. This platform will enable our client make their stockbroking portfolios on mobile devices tablets, laptops and desk top computers,” Bajomo said.

    He outlined that the mobile online trading initiative would ride on the back of full dematerialization and the direct cash settlement to create a seamless experience for investors.

    The direct cash settlement initiative will require complete documentation and reconciliation of investor information, holdings, contact details and bank account details.

    According to him, while full dematerialization is being implemented, the direct cash settlement initiative would be simultaneously implemented, leveraging on the progress made from putting into operation the dematerialization processes.

    “Direct implication of this initiative would be increased investor control, which in turn would translate to increased investor confidence, improved levels of financial inclusion and surge in trading volumes,” Bajomo said.

     

  • Conoil remains profitable amidst headwinds

    Conoil remains profitable amidst headwinds

    Conoil Plc, one of Nigeria’s major petroleum marketing companies, recorded a pre-tax profit of N1.8 billion in the third quarter, bracing the global and national headwinds that had seen many oil companies caving in under the weights of impairments.

    Interim report and accounts of Conoil for the nine-month period ended September 30, 2015 showed that the company’s bottom-line remained positive, although key figures were below the comparable period of 2014.

    The oil and gas sector has continued to struggle with the global decline in crude oil market, the distortions in the Nigerian downstream sector and Nigeria’s foreign exchange crisis, which have forced the forex-dependent sector to take losses on the sales and profit sides.

    The report showed that the company’s assets increased from N86billion for the same period in 2014 to N96billion in 2015. Turnover stood at N60.16 billion while pre and post-tax profits stood at N1.76 billion and N1.2 billion respectively by September 2015. With these, earnings per share stood at N1.72. Conoil had recently distributed a dividend per share of N1 for the 2014 business year.

    Conoil attributed the modest performance to its focused strategy and cost control mechanisms.

    “We returned a good performance notwithstanding the difficult operating environment due primarily to the efficient product procurement process put in place in the second half of the year,” the company stated in an explanatory statement released yesterday.

    According to the company, improved efficiency translated to high profit margin on product sales, but the profit for the period would have been much better save for the high finance cost, consequent upon the long outstanding large receivable from the Petroleum Support Fund.

    Conoil had recorded a turnover of N104.22 billion, profit before tax of N2.1 billion and profit after tax of N1.4 billion in the comparable nine-month period of 2014. Earnings per share was then N2.06.

    Challenges in the downstream have been overwhelming and analysts are of informed opinion that if the government continues to prolong the payment of long overdue subsidy refunds outstanding to the marketers, their profitability will continue to dwindle and return on investments for shareholders adversely affected.

    Notwithstanding the gloomy picture, the company in its statement promised to continuously transform its business and prepare for the increasingly fierce competition.

    “We will consistently pursue initiatives that will enable our brands, processes and people drive our corporate vision and ultimately drive value for our shareholders”, the company stated.

     

  • Stanbic IBTC Stockbrokers wins top award

    Stanbic IBTC Stockbrokers wins top award

    Stanbic IBTC Stockbrokers Limited, a member of Stanbic IBTC Holdings Plc, has won the ‘Best Broker in Nigeria’ award at the EMEA Finance – African Banking Awards. The latest award came on the heels of the announcement of the firm the best dealing member firm in 2014 by the Nigerian Stock Exchange (NSE).

    Chief Executive, Stanbic IBTC Stockbrokers Limited, Oladele Sotubo, said the award confirms the appetite and growing capability of the firm, leveraging on the expertise of the Stanbic IBTC Group, to provide robust services in the capital market.

    He said the award, in addition to the NSE CEO award and 2014’s listing of the Stanbic IBTC ETF 30, the Stanbic IBTC Exchange Traded Fund, are clear indications of the group’s focus on building a strong and vibrant stock market in Nigeria.

    “We are delighted to be recognized for our efforts and credible performances in the Nigerian capital market. The award reflects our strong commitment to consistently deliver relevant, innovative and timely solutions to our ever growing local and foreign clientele,” Sotubo said.