The Nation Newspaper

Category: Equities

  • Market capitalisation dips by N139b

    Market capitalisation dips by N139b

    Transactions on the Nigerian Stock Exchange (NSE) on Thursday ended on a negative spiral on profit taking as major stocks recorded huge losses.

    The market capitalisation of the listed equities fell by N139 billion to close at N13.397 trillion, down from N13.536 trillion Wednesday’s close. Also, the Nigerian Stock Exchange All Share Index declined by 422.77 basis points or 1.03 per cent from 40,995.02 basis points to close at 40,572.25 basis points.

    Forte Oil lost N7.45 to lead the losers’ chart and closed its shares’ value at N217.55 per share. Dangote Cement’s stock depreciated by N4.65 to close at N215.15, while Total dipped by N4.50 to close at N175.50 per share.

    Glaxosmith lost N1 to close at N61 and CCNN fell by 73 kobo to close at N15.02 per share.

    On the gainers’ chart, Mobil’s shares went up by N2.92 to close at N176 per share. Conoil gained N2.46 to close at N51.82, while Champion grew by N1.39 to close at N14.99 per share.

    Nigerian Breweries rose by N1.30 to close at N180.10 and International Breweries appreciated by 57 kobo to close at N31.47 per share.

    In all, 698.842 million stocks worth N6.07 billion were traded on Thursday in 4,833 deals with 18 equities recording price appreciation and 35 shares recording price depreciation.

    Transcorp emerged as the most-traded stock, accounting for 461.03 million shares worth N2.43 billion. Zenith Bank came second with an exchange of 36.85 million shares valued at N883.40 million, while ETI sold 22.92 million shares worth N430.23 million.

    Skye Bank traded 20.83 million shares valued at N430.23 million, while UBA transacted 19.51 million shares worth N128.38 million.

    Capital markets analysts had said ahead of this week that although gains were expected intermittently in the coming weeks, investors were likely going to remain cautious.

    Analysts at Meristem Securities Limited in their investment guide for the week said the equities outlook remained dreary.

    They said, “We are of the opinion that, notwithstanding pockets of positive returns which we expect will be witnessed intermittently, the general market mood will likely remain calm.

    “We continue to extol the virtue of holding certain stocks which we forecast will return positive despite weak general market sentiments.”

  • Equities value drops by N36bn

    Equities value drops by N36bn

    The equities segment of the Nigerian Stock Exchange (NSE) witnessed a weak bargain on Wednesday to open the week trading following public holiday declared on Monday and Tuesday by the federal government to mark the end of the holy month of Ramadan and Eid-el Fitr celebrations.

    The market capitalisation which opened at N13.572 trillion, decreased by N36 billion, to close at N13.536 trillion. Also, the All-Share Index dipped by 108.92 points or 0.26 per cent to close at 40,995.02, from the 41,103.94 achieved on Friday.

    Guinness recorded the highest price loss of N8.73, to close at N186.97 per share. Stanbic IBTC trailed with a loss of N1.75 to close at N33.25, while Dangote Cement dipped by N1 to close at N219.80 per share.

    Flourmill lost 70 kobo to close at N61.30, while Glaxosmith depreciated by 61 kobo to close at N62 per share.

    On the other hand, Conoil led the gainers’ chart by N2.35, to close at N49.36 per share. Nigerian Breweries gained N2.14 to close at N178.80, while Champion grew by N1.25 to close at N13.60 per share.

    Guaranty Trust Bank appreciated by 49 kobo to close at N30.50, while Ikeja Hotel went up by 20 kobo to close at N2.20 per share.

    In all, the volume of shares traded yesterday decreased by 27.02 per cent as investors exchanged a total of 408.897 million shares worth N5.727 billion in 4,678 deals as against the 560.323 million shares valued at N5.76 billion traded in 4,322 deals on Friday.

    Guaranty Trust Bank emerged as the investors’ delight, accounting for 50.21 million shares worth N1.51 billion. International Energy Insurance exchanged 43.59 million shares valued at N26.59 million, while Skye Bank sold 41.30 million shares worth 127.99 million.

  • Market capitalisation declines by N29b

    Market capitalisation declines by N29b

    The NSE All Share Index (ASI) shed18bps yesterday close at 41,135.56 points after three days of consecutive gains. Market capitalisation equally declined N29.0bnto close at N13.6tn.

    The decline in the market was attributable to profit taking in Nestle 3.7per cent , Dangote Cement 0.5 per cent, Guinness 5.0 per cent and PZ Cussons 5.0 per cent, even as market activity levels measured by aggregate volume and value traded also closed weaker at 674.0m and N6.3bn a 37.6 per cent and 21.8 per cent decline.

    Most sector indices within our coverage closed in the red with the exception of the Banking Index advancing 1.0 per cent due to the rally in Fidelity Bank 4.5 per cent Union Bank 3.0 per cent and Skye Bank 2.3 per cent. On the flip side, the NSE Consumer Goods Index shed 1.1 per cent amidst profit taking in Guinness 5.0 per cent, National Salt 4.0 per cent and Nestle 3.7 per cent.

    Similarly, the Oil and Gas Index retreated, shedding 0.7 per cent. Notably, the Index was pressured by the decline in Oando 0.9 per cent, Seplat 0.8 per cent and Eterna 0.5 per cent. The Insurance and Industrial Goods indices also both traded downwards —each shedding 70bps and 7bps respectively.

    The Market breadth closed marginally below the border line today at 0.9x advancers/decliners ratio: 32 gainers vs 33 losers.

    At the close of trading, Champions Breweries 10.1 per cent, Ikeja Hotel 9.6 per cent and Beta Glass 6.1 per cent topped the gainers list, while Guinness 5.0 per cent, PZ Cussons 5.0 per cent and Custody in 4.9 per cent topped the losers chart.

  • Stanbic IBTC ETF 30 to grow capital market

    Stanbic IBTC ETF 30 to grow capital market

    THE overarching interest of the Stanbic IBTC Exchange Traded Fund 30 (ETF 30), which initial public offering opened on Monday,  September 15, this year, is to grow the fortunes of the nation’s capital market.

    Making this submissionwas Olumide Oyetan, the Chief Executive Officer of Stanbic IBTC Asset Management Limited.

    The event was for investors and stakeholders in Lagos.

    Justifying the need for the Fund, Oyetan said the company, Nigeria’s leading asset management firm, sought to expand participation of domestic investors in the capital market, which will help in the capital formation process and in turn generate significant returns to investors while fueling wealth creation as well as economic growth.

    “The opening of the Stanbic IBTC ETF 30 is a direct response to increased investor demand for passive investment strategies that will deliver the market return for the index being tracked, which in this case is the NSE 30 of the Nigerian Stock Exchange (NSE). The Stanbic IBTC ETF 30 provides a transparent and flexible structure that allows investors efficiently gain exposure to the securities of these companies that have over time out-performed the broad equity market,” said Oyetan.

    The offer, which closes on Wednesday, October 15, 2014, opened with 10,000,000 units of the Fund available at N100 each at par. It offers a minimum subscription of 10,000 units and multiples of 5,000 units thereafter.

    Oyetan said the Fund is designed to track the performance of the NSE 30 Index which comprises of the top 30 companies listed on the NSE in terms of market capitalisation and liquidity. The index serves as the flagship benchmark for the stock market as it represents 92 per cent of the NSE’s market capitalisation and the Stanbic IBTC ETF 30 will replicate the price and yield performance of the index. The Fund, Oyetan added, will invest 100 per cent of its assets in the same portfolio of securities that comprise the NSE 30 Index in proportion to their weightings in the Underlying Index.

    “The Fund represents a convenient and efficient way for investors to have access to the top 30 most capitalised and liquid stocks on the NSE, in a cost-effective manner. We believe that it will appeal to sophisticated and institutional investors that believe in the growth story of companies listed on the NSE and by extension, in the abundant growth opportunities that exist in Nigeria,” added Oyetan.

    The commitment, expertise, experience and global clout of the Standard Bank Group, to which Stanbic IBTC Asset Management Limited belongs, will be deployed to ensure success of the Stanbic IBTC ETF 30, Oyetan assured.

  • CBN outlines roles of HoldCo banks, subsidiaries

    CBN outlines roles of HoldCo banks, subsidiaries

    The Central Bank of Nigeria (CBN) has released guidelines for banks operating Holding Company (HoldCo) structure and how such lenders will relate with their subsidiaries.

    The guidelines, signed by CBN Director, Financial Policy and Regulations, Kelvin Amugo, said for any financial holding company structure to emerge, there shall be at least, two subsidiaries and the focus of the conglomerate shall be in the financial services sector.

    He said the guidelines, issued in exercise of the powers conferred on the CBN under the CBN Act, 2007 (CBN Act) and the Banks and Other Financial Institutions Act, Cap B3, Laws of the Federation of Nigeria, 2004 (BOFIA), complement CBN Regulation on the Scope of Banking Activities and Ancillary Matters, No 3, 2010.

    According to the guidelines, the CBN said a financial holding company is permitted to have only two hierarchies (parent and intermediate financial holding companies). Given the permissible level of hierarchies, a financial holding company may have a subsidiary which is a parent to another subsidiary (intermediate financial holding company).

    According to the rules, where such subsidiary is locally based, the relevant regulator shall have responsibility for its supervision. Where the subsidiary is overseas, the relevant regulator shall seek a Memorandum of Understanding (MoU) with the host regulator for its joint supervision.

    It said a financial holding company may acquire controlling interest in any permissible financial institution, subject to prior approval of the CBN. Where the target company is outside the supervisory purview of CBN, the prior approval of the relevant regulator will also be required.

    Still, where a subsidiary of the financial holding company outside the purview of the CBN is acquiring another subsidiary similarly outside the purview of the CBN, the Holdco shall notify the CBN before the acquisition is consummated. Evidence of prior approval of the relevant sector regulator shall accompany the notification.

  • Transcorp Hotels opens IPO

    The Board and Management of Transcorp Hotels Plc  held a “Facts behind the Offer” presentation at The Nigerian Stock Exchange at the weekend in connection with its Initial Public Offering (IPO) of 800,000,000 ordinary shares of 50 kobo each at N10 per share.

    The offer, which opened on  September 25, is expected to close on October 17, this year.

    Transcorp Hotels is the hospitality subsidiary of Transnational Corporation of Nigeria Plc. The company’s vision is to create maximum and sustainable value for stakeholders, as well as to build Africa ‘s choice hospitality assets underpinned by excellence, entrepreneurship and execution.

    Transcorp Hotels will focus on Nigerian expansion in the short to the mid-term and thereafter develop a strong African footprint in high population and competitive cities. Over the next five years, the company will take a phased approach in developing high-end hotels and apartments in prime locations, including Ikoyi, Port Harcourt and Abuja .

    In addition to the new developments, the Transcorp Hotels has also commenced the facelift of the Transcorp Hilton Hotel, Abuja  to consolidate its position as the premier hotel destination in Nigeria. This will involve the modernisation of the hotels core facilities for which the company plans to spend $57.5 million (N9.2 billion) over the next three years. The funding for this will be sourced from the company’s internal operating cash flows.

    Manging Director/Chief Executive Officer Transcorp Hotels Plc, Mr Valentine Ozigbo, said: “The  hospitality industry is fast becoming more competitive with the presence of international brands in recent years. We have a strong brand and success story in Nigeria as well as good long term relationships with established suppliers in Nigeria.

     

  • FirstBank’s ‘Big Splash Promo’ winner gets N50m house

    The grand prize winner in the FirstBank ‘Big Splash Promo’, Kenechukwu Uchenna,has received a completed four-bedroom terrace house worth N50 million from the bank.

    The Group Managing Director/Chief Executive Officer, First Bank of Nigeria, Bisi Onasanya handed over the house located at Lekki, Lagos, to the customer.

    Speaking at the presentation in Lagos, Onasanya said as the bank celebrated 120 years of pioneering banking services in Nigeria, the management considered it worthy to also reward the bank’s loyal customers in a special way.

    “We rejoice with Kenechukwu Uchenna, who has reaped the reward of banking with the number one bank and brand in Nigeria,” Onasanya said.

    He further explained that that was the fifth anniversary of Uchnna’s savings account relationship with the bank and he is one of over 6,000 customers that have won prizes worth over N500 million in the lender’s savings promo series started six years ago.

    The Head of Marketing and Corporate Communications, First Bank Nigeria, Folake Ani-Mumuney, said the entire management and staff of the bank were pleased to continue to give away special prizes to new and existing customers participated in the bi-monthly, quarterly and anniversary draws.

    So far, the bank said, it had given out six brand new Toyota Corolla cars, 360 refrigerators, 360 standing gas cookers and N50,000 each to 360 customers.

    To enter for the bi-monthly draw, a customer is expected to save N10,000 for 30 days. And if a customer makes savings of N20, 000 for three months, he could be in the draw for a brand new car; savings  of N200, 000 for three months qualified Uchenna for the grand prize.

    Uchenna, expressed appreciation to the bank and encouraged other customers to take advantage of such opportunities provided by the bank and other financial institutions.

    Other consolation prizes won were household items, such as fridges, deep freezers and cash.

  • Shareholders storm Uyo for Conoil AGM

    Shareholders storm Uyo for Conoil AGM

    ALL roads lead to Uyo, the Akwa Ibom State capital today as shareholders of Conoil Plc, assemble at the fame Land of Promise for the Annual General Meeting (AGM) being hosted by the frontline petroleum products marketing company.

    Shareholders are upbeat that the 44th AGM holds a lot of promise for them if the outcome of the past year is anything to go by.

    Reflecting on last year’s outing, market analysts believe the proposed payment of N4.00 per share for every 50kobo share was a promise kept by the frontline petroleum products marketing company, after posting impressive performance across its business segments in the financial year ended December 2013.

    The Chairman of Conoil Plc, Dr. Mike Adenuga had, while addressing shareholders at the company’s 43rd Annual General Meeting (AGM) in October 2013, assured investors that the company remained committed to maintaining its leadership position in the downstream petroleum sector by growing its business and creating an enduring value for its shareholders and other stakeholders.

    “We are building stronger financial position and creating enduring value for our shareholders. We will constantly develop strategies to sustain our position as the only marketer that always goes the extra mile for our ever growing customers, with total commitment to excellent service delivery.”

    Elaborating on the strategies to be adopted to achieve the set target, Adenuga revealed that the company had strengthened and consolidated its leadership position in the aviation business with investment in the acquisition of new world-class equipment to meet the demands, on real time basis, of the company’s ever-growing local and international clientele.

    “Our strategy in retail is to provide top quality products and services that will make customers want to always patronise us for their fuel and non-fuel needs. We are not resting on our oars on our aggressive acquisition and expansion drive that aims at increasing, substantially, the number of our retail outlets nationwide,” Adenuga had stressed, adding: “Conoil’s future is rosy because the company is constantly thinking ahead and acquiring additional capacity that is necessary for growth and profitability, despite the unpredictability of the economic environment.”

    Expectedly, Conoil’s full year results showed that revenue grew by 6.4 per cent to reach N159.54 billion as against N149.99 billion posted in 2012. Gross Profit shot up to N17.04 billion, which represents over five per cent rise above the previous years.

    The company also posted 289 per cent increase in Profit Before Tax from N1.15 billion in 2012 to N4.58 billion, while it recorded Profit After Tax of N3.07 billion, which amounts to 330 per cent increase over what was posted in 2012. The report also showed a stronger balance sheet as retained earnings boosted shareholders’ funds to N18.04 billion in 2013 compared with N15.66 billion in 2012.

    Market analysts said the impressive dividend and profit and loss accounts performance were in line with market’s expectations given Conoil’s consistent growth over the years.

    The company in a press statement attributed the great financial outing to improved cost efficiency, significant reduction in interest expense and a strong hold on cost of sales.

    The company added that its performance was driven by revenue increase from its nationwide retail outlets, especially its newly commissioned mega stations. It was also augmented by additional income streams from its world-class quality lubricant products.

    Conoil said it stepped up engine oil export to West African markets as well as entered into joint venture partnerships with leading car manufacturing companies.

    It added that its income was also bolstered by ancillary services including marketing of Low Pour Fuel Oil (LPFO).  It would be recalled that the front line oil products marketer had shown signs of a sound financial year after posting 341 per cent increase in profit before tax while its profit after tax went up by 329 percent in the third quarter of 2013.

    In his comments on the results, Adenuga said the company had consolidated its competitiveness in the different segments of the business. “We also pursued and sustained strategic expansion of our retail network across the length and breadth of the country with a view to ensuring that a lot more people, especially in the remotest parts of the country, have access to our superior products and services.”

    While assuring the shareholders that Conoil is equipped with all the essential materials, intellectual and human resources, to surmount the challenges ahead in the downstream petroleum sector, Adenuga stated that the company has been positioned to take full advantage of opportunities that could arise from the Federal government’s economic reforms, by leveraging on the solid base built over the years.

    “Greater attention will be devoted to cutting operational costs in the different segments of the business, while still maintaining and improving on the quality of our products and services. With renewed commitment, we will explore developing and emerging markets, even as we continue to build on our strengths in areas where we perform well, with good growth and profitability,” Adenuga added.

    Indeed, the front line oil-products marketer had shown signs of a sound financial year after posting 341 per cent increase in profit before tax while its profit after tax went up by 329 per cent in the third quarter of last year.

    The company was simply reaping from the fruit of strategic planning embarked upon in recent times. At the beginning of last year, Conoil had launched the second phase of its comprehensive four-year expansion plan started three years ago, with the inauguration of new ultra-modern retail outlets spread across the country. Conoil had earmarked about N4.8 billion for the project which is targeted to grow the company’s sales and revenue by over 65 per cent.

    Conoil embarked on the plan to adequately prepare for industry-specific challenges, ensure impressive growth in its performance indicators and consolidate its leadership position in the downstream petroleum business.

    The company had commenced the ambitious plan with the upgrade of its storage tanks at the company’s depots nationwide to accommodate bulk product imports.

    In pursuant of this, the company increased the storage tanks for white products – Premium Motor Spirit (PMS), diesel and kerosene – to 80,000 metric tonne, to double the capacity of its storage facilities at its Apapa installation.

  • How Aig-Imoukhuede emerged NSE president

    How Aig-Imoukhuede emerged NSE president

    FRESH indications emerged at the weekend on how Mr. Aigboje Aig-Imoukhuede became the president of the Nigerian Stock Exchange (NSE).

    Informed sources confided in The Nation that the National Council of NSE elected Aig-Imoukhuede as the president of the Exchange, following the decision of Alhaji Aliko Dangote, the immediate past president of the Exchange not to seek reelection.

    Dangote said: “NSE believes in the growth of the capital market and is making significant investments to support this ambition.”

    According to him, earlier this year, I informed the NSE of my stepping down as the council president and I have confidence in the executive team and council members to ensure my successor continues to move the NSE forwards towards becoming a regional force in the global financial market place.

    He said in 2013, the NSE’s had focus on executing the five pillars of the transformation strategy, which are targeted at business development, enhanced regulatory programs, 21st century technology strategies, enhanced market structure and investors protection initiatives.

    Besides Aig-Imoukhuede, Mr. Abimbola Ogunbanjo, and Mr. A. B. Mahmoud, were elected as first and second vice presidents respectively.

    The election was carried out by the council member at the NSE 53rd Annual General Meeting (AGM), with other members elected into the national council as follows: Mr. Muhammad Daggash, Finmal Finance Services Limited, Greenwich Securities Limited, ICMG Securities Limited, Meristem Securities Limited, Sigma Securities Limited, and Signet Investment and Securities Limited.

    The Chief Executive Officer of NSE, Oscar Onyema attributed last year’s performance to improved operational efficiencies and the revenue diversification strategies, resulting in an increased share of income from other revenue streams.

    According to NSE financial report for the year ended December 31, 2013 revealed that its operating surplus, which is the key measure of the profitability of the group’s business activities went up by 176 per cent to N 3.26 billion from N1.18 billion in 2012.

    The group made revenue of N4.577 billion in 2013 compared to N3.33 billion, appreciating by 37.58 per cent. The total income went up by 39.31 per cent to N5.40 billion in 2013 from N3.88 billion in 2012, which was derived primarily from transaction fees that constitute 58 per cent on the total income for the year.

    Total assets grew by 20 per cent yearly, trading revenues increased by 67 per cent to N3.13 billion, while total volume and value traded in equities witnessed growth of 20 per cent and 59 per cent. Also, the NSE- ASI gained 47.19 per cent in 2013.

  • Kaduna, Skye Bank partner on IGR

    Kaduna, Skye Bank partner on IGR

    Kaduna State Government and Skye Bank Plc have partnered on increasing the state’s internally generated revenue to accelerate and widen the pace of development in the state.

    Kaduna State Governor, Mukhtar Ramalan Yero, disclosed this in Kaduna, while launching Point of Sales (POS) Terminal for the revenue collection scheme of the state, powered by Skye Bank Plc.

    He said the Internally Generated Revenue (IGR) of the state and the dwindling federal allocation were not enough to develop Kaduna.

    According to him, his government has a huge budget that was expected to be financed by the IGR, but noted that the internally generated revenue has been stagnant at about N1billion per month, for the past five years, hence, the need to develop new and accountable means of revenue collection.

    “It is a against this background that we have introduced POS to check revenue leakages and other challenges associated with tax collection,” the governor said.