The Nation Newspaper

Category: Equities

  • ‘Sustainability key to attracting investments In capital market’

    ‘Sustainability key to attracting investments In capital market’

    Divisional Head, Capital Markets, Nigerian Exchange (NGX), Jude Chiemeka, has highlighted the importance of Environmental, Social, and Governance (ESG) compliance and the democratization of data in attracting investments and enhancing stock liquidity in the Nigerian capital market.

    Chiemeka shared these insights during a panel session titled “ESG and Sustainable Finance; The Future of Investments,” which was jointly organized by the Securities and Exchange Commission (SEC) and the Financial Centre for Sustainability yesterday in Lagos.

    Whilst noting that NGX is a member of the Sustainable Stock Exchanges Initiative, Chiemeka emphasized the Exchange’s strong focus on technology, which facilitates investor access to essential data. According to him, seamless access to various products in the capital market is crucial, especially for retail investors.

    Read Also; Leveraging data economy to boost jobs, revenue

    Furthermore, Chiemeka offered advice to investors, urging them to consider companies that are ESG-compliant and provide transparent and high-quality disclosures. He stressed the significant correlation between ESG disclosures and corporate performance. “Companies on the Exchange that demonstrate strong ESG compliance often gain access to more capital, attract a broader investor base, and can even raise capital from foreign markets. The NGX Premium Board features companies that adhere to international best practices on corporate governance and meet NGX’s highest standards of capitalization and liquidity. Compliance is not only a matter of prestige but also an indicator of sustainable growth, making these companies more appealing to both international and domestic investors”.

    Chiemeka also commended the SEC for its efforts in establishing a sustainable finance framework, especially in regards to green bonds. “Nigeria’s issuance of a green bond solidified its position as the first sovereign country in Africa to do so, and we applaud the SEC’s role in making this possible”, he said.

  • Payroll firm asks stakeholders to explore contactless payments

    Payroll firm asks stakeholders to explore contactless payments

    HumanManager Limited (HML), a leading Human Rource and Payroll solutions firm and a subsidiary of SystemSpecs Holdings Limited (SHL), has reiterated the need for stakeholders to embrace  contactless payments technology.

    Speaking during the Digital PayExpo conference in Lagos, its Managing Director, Adekunbi Ademiluyi said contactless payments technology will help in fostering the adoption of cashless transactions in Africa.

    Adekunbi, who has over 23 years of experience in banking, payments, and strategy, stressed the need for clear and concise communication in managing a diverse workforce.

    “Business managers and leaders need to communicate effectively to ensure growth and a perfect work balance. You should also actively promote diversity and inclusion within the organisation to ensure that diverse voices are heard and valued in the decision-making processes,” she said.

    She noted that showing empathy would boost productivity and innovation among employees.

    “In terms of gender balance and excellence, the goal is to attain and maintain work leadership. When you compare gender equality in other African countries to Nigeria, which currently has a 70-30 per cent ratio, you will realise that Nigeria is not bad at all,” she said.

    Adekunbi also pointed out the various benefits of dynamism for economic growth, personal growth, enriched perspective, and social cohesion. She elaborated on how diverse cultures can stimulate international trade and tourism and that Key Performance Indicators (KPIs) can be used to measure the productivity of employees, especially those working remotely.

    “By incorporating global thinking into talent management practices, organisations can effectively attract talented workforce capable of thriving in a globalised business environment. This approach enables firms to leverage the strengths of a global workforce and achieve sustainable success in a rapidly changing world,” she added.

  • Non-cash palliatives better for economy, says don

    Non-cash palliatives better for economy, says don

    The Federal Government should not distribute cash directly to people as palliatives but consider projects that will boost the economy and have greater impact on people.

    President,  Association of Capital Market Academics,  Prof Uche Uwaleke said palliative funding was in order and there should be measures to ease the challenges facing people.

    He said although the nature of the palliatives was not indicated, as much as possible, the government should look into the direction of non-cash palliatives in the utilisation of such funds.

    According to him, earlier reports had said Nigeria had secured $800 million from the World Bank as a soft loan to cushion the impact of subsidy removal (expected to be distributed as cash to about 10 million households.

    “If we add this N500 billion to the N600 billion possible from the $800 million,  assuming average rate of N750 per dollar, that should give N1.1 trillion.

    “Consistent with the principle of maximum social benefit in public expenditure,  one way, in my view, to ensure this money reaches the grassroots is to divide it by 774 which translates to about N1.4 billion and transfer this sum to each local government.

    “An optimal way to ameliorate suffering is through sustainable jobs. So, this money can be utilised as initial capital to establish massive skill acquisition centres in every local government area. The construction of these centres will generate huge job opportunities in the areas and help to reverse rural-urban migration.

    “The management of the funds will be done by the communities themselves using traditional and religious institutions,” Uwaleke said..

    He added that in the area of mass transit schemes, the government should partner the private sector to address the challenge.

  • Equities rebound with N203b gain

    Equities rebound with N203b gain

    Nigerian equities reopened yesterday with a net capital gain of N203 billion as investors returned to bargain-hunting after a week of profit-taking transactions.  

    Benchmark indices at the Nigerian Exchange (NGX) indicated average return of 0.60 per cent, equivalent to net capital gain of N203 billion.

    The All Share Index (ASI)-the value-based common index that tracks all share prices at the Exchange, rose from its opening index of 62,569.73 points to close at 62,943.35 points.

    Aggregate market value of all quoted equities increased simultaneously from the opening value of N34.070 trillion to close at N34.273 trillion.

    With 42 gainers to 28 losers, the positive overall market situation was driven by widespread buy sentiments, especially among the mid to large-cap stocks such as Geregu Power, FBN Holdings, Unilever Nigeria, Access Holdings and Zenith Bank.

    Daar Communications, Fidelity Bank and Unilever Nigeria recorded the highest price gain of 10 per cent each to close at 33 kobo, N7.37 and N15.95 respectively. Sterling Financial Holdings Company followed with a gain of 9.97 per cent to close at N3.42 while John Holt rose by 9.94 per cent to close at N1.99 per share.

    On the negative side, PZ Cussons Nigeria, Union Bank of Nigeria (UBN), Veritas Kapital Assurance and SFS Real Estate Investment Trust led the losers’ chart by 10 per cent each to close at N16.20, N6.30, 27 kobo and N69.30 respectively. FTN Cocoa Processors followed with a decline of 9.93 per cent to close at N2.54, while Eterna declined by 9.89 per cent to close at N23.70 per share.

    The momentum of activities also improved as turnover rose by 18.2 per cent to 710.02 million shares valued at N13.83 billion in 8,979 deals. Sterling Financial Holdings Company topped the activity chart with 65.959 million shares valued at N216.572 million. Transnational Corporation (Transcorp) followed with 62.201 million shares worth N225.595 million. Unity Bank traded 59.666 million shares valued at N79.965 million. Access Holdings traded 51.055 million shares valued at N828.767 million while Universal Insurance recorded 49.807 million shares worth N12.338 million.

    Analysts at United Capital Plc said they expected the bullish sentiments to resume in the equities market as investors will look to take advantage of the low-pricing of stocks from last week’s selloffs.

    “Lastly, we expect investors to begin to take positions ahead of the upcoming second quarter, 2023 earnings season,” United Capital.

  • Scramble for FBN Holdings as investors fight for control

    Scramble for FBN Holdings as investors fight for control

    •Equities open with N851b gains

    The struggle for the ownership control of Nigeria’s oldest surviving banking group, FBN Holdings Plc, intensified yesterday at the Nigerian Exchange (NGX) as investors upped demand for the shares of the holding company.

     FBN Holdings  was the most active stock at the stock  market yesterday with a turnover of 198.222 million shares worth N4.418 billion,

    Total turnover at the NGX  1.839 billion shares valued at N22.033 billion in 14,584 deals.

    Market analysts said the  upsurge in demand for FBN Holdings (FBNH) might not be unconnected with the evolving struggle for boardroom control of the group.

    Barbican Capital,  a company affiliated with Honeywell Group, an investment group owned by FBH Holdings’ erstwhile director and chairman, Dr Oba Otudeko, had last week acquired 13.3 per cent equity stake in FBNH to become the single largest individual shareholder.

    While still subject to the approval of Central Bank of Nigeria (CBN) and other regulators, the acquisition displaced the existing major ownership structure in FBNH.

    Meanwhile, Nigerian equities reopened yesterday with net capital gain of N851 billion.

    The benchmark index, All Share Index (ASI) gained 1,563.28 points, representing a gain of 2.48 per cent, the highest point since March 17, 2008, to close at 64,603.69 points. Aggregate market capitalisation of quoted equities rose by N851 billion to close at N35.177 trillion.

    With 71 gainers to 19 losers, the overall market position was driven by widespread positive sentiments across the sectors.

     DAAR Communications, Dangote Cement, MRS Oil Nigeria, Neimeth International Pharmaceuticals and Jaiz Bank emerged the highest price gainer of 10 per cent each to close at 22 kobo, N330.10, N109.45, N2.20 and N1.98 respectively. Transcorp Hotels followed with a gain of 9.98 per cent to close at N35.91, while Conoil advanced by 9.97 per cent to close at N112.50.

    On the other side, Pharma Deko led others on the losers’ chart with 9.85 per cent to close at N1.83, per share. Union Dicon Salt followed with a decline of 9.50 per cent to close at N8.10, while Berger Paints Nigeria shed 9.09 per cent to close at N10.00, per share.

    Guinea Insurance lost 7.69 per cent to close at 24 kobo, while Champion Breweries depreciated by 5.43 per cent to close at N4.35, per share.

    Other companies on the top activity chart included Universal Insurance with 184.656 million shares valued at N53.465 million, Sterling Financial Holdings Company with 161.679 million shares valued at N724.332 million, Transnational Corporation (Transcorp) with 156.417 million shares worth N706.916 million and AIICO Insurance, which traded 98.322 million shares worth N73.579 million.

    Analysts at United Capital Plc said “we expect the bullish sentiments in the equities market to persist on the back of the attractiveness of the market over the depressed rates in the fixed-income market.

    “Also, we believe the positive sentiments around the new policies to continue to drive the rally in the market. Lastly, we expect investors to begin to take positions ahead of the upcoming Q2, 2023 earnings season”.

  • NGX RegCO, ICAN sign MoU on market regulation

    NGX RegCO, ICAN sign MoU on market regulation

    The NGX Regulation Limited (NGX RegCo) yesterday signed a Memorandum of Understanding (MoU) with the Institute of Chartered Accountants of Nigeria (ICAN) with a view to enhancing stock market regulation.

    NGX RegCo is a self regulatory organisation that regulates activities at the Nigerian Exchange (NGX).

    Thie NGX Regco said the MoU signified closer collaboration between NGX RegCo and ICAN and reinforced their commitment to the development of the capital market and the financial services industry in Nigeria.

    Accroding to the parties, the collaboration will harness capacity building and information sharing to foster a culture of competence and professionalism for market development.

    The partnership also entails the development of initiatives to further improve the quality of corporate reporting in the capital market.

    Speaking during the signing ceremony held at the Nigerian Exchange Group House in Lagos, Chief Executive Officer, NGX RegCo, Ms Tinuade Awe emphasized that regulation had to be effective to create fairness in the market and collaboration between organizations like ICAN is critical to enhancing professionalism, ethics, integrity and transparency.

    She also noted the importance of technology in easing reporting and regulation, adding that NGX RegCo was collaborating with the Institute to enable it further deliver on its mandate of investor protection, creating fair and transparent markets and promoting compliance to global best practices.

    “We have a long history of over 60 years in the context of the Nigerian Stock Exchange but for NGX RegCo post-demutualisation, this is truly a historic moment. We believe that this cause that we are deliberately undertaking will enable both parties deliver efficiently on our shared objectives. We look forward to collaborating with ICAN and are sure that the Institute will see this collaboration as mutually beneficial,” Awe said.

    On his part, the ICAN President, Dr Innocent Okwuosa, emphasized that the partnership between both parties will foster a robust and transparent capital market ecosystem that will attract investment, encourage growth, sustainability reporting and safeguard the interest of all stakeholders.

    Okwuosa explained, “Accountants are at the forefront of financial reporting and so the information investors will work with are mainly driven by them. This underscores why both NGX RegCo and ICAN should cooperate and we are happy that today marks a new beginning.

    “The strategic alliance between NGX RegCo and ICAN is expected to have a profound and positive impact on the Nigerian capital market, promote investor confidence, strengthen regulatory oversight, and elevate professional standards within the industry.”

    The ICAN President reiterated that the Institute will continue to position itself in advising the government on supporting increased capital flows to the market, adding that it is ready to cooperate with NGX RegCo on awareness amongst accountants and other areas that would boost market development.

  • SEC urges investors to shun bogus investment offerings

    SEC urges investors to shun bogus investment offerings

    Officers of the Federal Road Safety Corps have been urged to avoid Ponzi schemes and only invest in entities registered with the regulatory body.

    The Securities and Exchange Commission gave the advise during an investor enlightenment programme tagged “Investor Safety” for officers of the Federal Road Safety Corps in its zonal offices across the Federation.

    While enjoining the officers to be wary of any investment that is proposing return levels that are unreasonably high, the SEC also advised investors to always cross check that such fund managers and the products they are offering are registered with the Commission.

    According to the SEC, the capital market is properly positioned to attract Nigerians and  provide benefits to Nigerians who invest therein.

    The Officers were taught the red flags of Ponzi schemes and how to expose them. Other topics include the functions of the SEC, the availability of Non-Interest Finance, and complaints management mechanisms in the capital market among others.

    The events which were held in Lagos, Port-Harcourt, Enugu, Edo and Osun States is the third in the series of sensitizing the officers of the FRSC with the first being November 2022, and the second being May, 2023

    According to the SEC, “This enlightenment programme is part of a commitment to developing the capital market, creating knowledge of available products in the market as well as increasing investors’ confidence”

    “The programme was held in collaboration with the Fund Managers Association of Nigeria (FMAN) to also expose the Officers to legitimate channels of investments and the Association of Dealing Houses of Nigeria (ASHON) to address issues that bother on investments, unclaimed dividends and related matters.

  • Firm lists N2.5b commercial papers on FMDQ

    Firm lists N2.5b commercial papers on FMDQ

    FMDQ Securities Exchange has approved the quotation of MyCredit Investments Limited’s N2.50 billion Series 1 Commercial Paper (CP).

    The CP was issued under MyCredit Investments N2.50 billion CP issuance programme.

    MyCredit Investments Limited is a digital consumer and small and medium-scale enterprises lender, and provider of digital financial services in Nigeria.

    The proceeds from the CP, which is sponsored will be applied by the firm for its general corporate purposes.

     FMDQ noted that the Nigerian CP market, as administered by FMDQ Exchange, has continued to provide issuers with renewed opportunities to grow their businesses and maintain the much-needed restored confidence of investors, whilst contributing to the overall growth of the Nigerian economy.

    “The Exchange will continue to provide a liquid, transparent and efficient market geared towards supporting the aspirations of corporates, to unlock the required capital to bridge the funding gap in their various sectors,” FMDQ stated.

  • Capital market honours Subomi Balogun

    Capital market honours Subomi Balogun

    • ‘He was a colossus’

    Stakeholders in the Nigerian capital market yesterday honoured the memory of the late founder of FCMB Group, Otunba Subomi Balogun.

    The Nigerian Exchange (NGX), Chartered Institute of Stockbrokers (CIS) and other market stakeholders held a mock-trading session and closing gong ceremony in honour the foremost investment banker, generally regarded as the grandmaster of the Nigerian capital market.

    Chief Executive Officer, Nigerian Exchange (NGX), Mr Temi Popoola, said late Balogun was a blessing to the capital market.

    “We are here to pay tribute to somebody that without him, we really cannot talk about our markets and I am sure that there are many careers here that he helped shaped and mine is a good example.

    “We can’t express our gratitude to him enough for what he did to help our industry expand. It is difficult to locate another family in Nigeria like the Subomis that can represent on the Exchange as they doing now. We are very grateful and we assure them that they can count on our support going forward as the family continues to drive their strategic goals,” Popoola said.

    Chairman, NGX Group, Alhaji Umaru Kwairanga, noted that Subomi played a significant role in the development of investment banking in Nigeria and had laid the foundation for many of the nation’s first equity offerings while working at ICON Securities. “He leaves a significant legacy and a number of monuments that would serve as evidence of his greatness well into the future,* Kwairanga said.

    Group Chief Executive Officer, NGX Group, Oscar Onyema said the market could take solace in the fact that Subomi led a great life and left a huge legacy that the capital market community will continue to talk about for years to come.

    “Otunba ensured that he looked out for the best interests of the capital market, especially during his tenure on the Council of the Exchange years ago,” Onyema said.

    President, Chartered  Institute of Stockbrokers (CIS), Mr Oluwole Adeosun, said B“We are celebrating the life of a  colossus, Otunba Subomi Balogun who was the pioneer first Vice President of our Institute. We commiserate with the family and will keep remembering his deeds in the capital market,” Adeosun said.

    Mr Bolaji Balogun, Group CEO, Chapel Hill Denham during his remarks said, “That you still remember our father, who retired 20 years ago, speaks a lot about him and the caliber of outstanding people you are. He was very concerned about this market, the harmony of this nation, and the youth of Nigeria. I want to reassure each of you that the work we perform is essential to the growth of this nation.”

    Commending the event, Group Chief Executive, FCMB Group Plc, Mr Ladi Balogun, said it was an encouragement for the family to keep Balogun legacy on.

    “Whilst this has been a very emotional time for our family, the way our father has been honoured by the Exchange, CIS and the entire country is truly inspiring to us. It is motivating us to go further, do better and make sure that his legacy lives on. We will not be alone in doing that. We will make sure we uphold his value and seek ways together with the exchange to transform the market and the economy,” Ladi Balogun said.

  • Equities open Q3 with N534b gains

    Equities open Q3 with N534b gains

    Nigerian equities reopened yesterday with continuing bullish run as investors continued to increase demand for quoted shares.

    With more than five advancers to every decliner, investors ended the first trading day in the third quarter with average return of 1.71 per cent, equivalent to net capital gain of N534 billion.

    This came on the heels of impressive gain of N5.33 trillion in the first half.

    The All Share Index (ASI)- a common index that tracks all share prices at the Nigerian Exchange (NGX), rose by 1.61 per cent to close at 61,949.24 points.

    Aggregate market value of all quoted equities also rose simultaneously to close at N33.732 trillion, an increase of N534 billion.

    With 67 gainers to 13 losers, the positive overall market position was driven by widespread positive sentiments across the sectors.

    On the positive side, Eterna, Meyer, Fidelity Bank, Japaul Gold & Ventures, Linkage Assurance and University Press recorded the highest daily allowable gain of 10 per cent each to close at N23.10, N2.64, N7.70, 77 kobo, 77 kobo and N2.75 respectively.

    Transnational Corporation (Transcorp) followed with a gain of 9.97 per cent to close at N3.86. Access Holdings rose by 9.94 per cent to close at N18.25.

    On the negative side, Tripple Gee & Company led the losers’ chart by 9.87 per cent to close at N3.38. Secure Electronic Technology and Cornerstone Insurance followed with a decline of 9.09 per cent each to close at 30 kobo and N1.00 respectively. Associated Bus Company depreciated by 6.82 per cent to close at 41 kobo while Julius Berger declined by 3.23 per cent to close at N30.49.

    The momentum of activities also improved with total turnover rising by 20.78 per cent to 1.205 billion shares valued at N14.04 billion in 12,128 deals.  FCMB Group topped the activity chart with 173.808 million shares valued at N930.697 million. United Bank for Africa (UBA) followed with 160.674 million shares worth N2.119 billion. Access Holdings traded 132.519 million shares valued at N2.384 billion.

    Jaiz Bank traded 80.638 million shares valued at N138.393 million, while Transcorp sold 74.964 million shares worth N285.248 million.

    Analysts at United Capital Plc said they expected the bullish sentiments in the equities market to persist on the back of the attractiveness of the market over the depressed rates in the fixed-income market.

    “Also, we believe the positive sentiments around the new policies to continue to drive the rally in the market. Lastly, we expect investors to begin to take positions ahead of the upcoming of second quarter, 2023 earnings season,” United Capital stated.