The Nation Newspaper

Category: Equities

  • Global stocks fall from record highs

    Global stocks fall from record highs

    Stocks retreated from recent highs on Wednesday while the euro was pressured by rate differentials and oil prices rose on fears of disrupted supply from Iraq.

    Stocks on Wall Street opened lower in broad selling. Analysts, however, saw no threat to the recent strong trend.

    “There’s a bid underneath this market, and anytime we’re lower it isn’t long before buyers materialize, which should allow us to keep grinding higher until the next earnings season,” said Chris Bertelsen, chief investment officer of Global Financial Private Capital in Sarasota, Florida.

    The Dow Jones industrial average dropped 97.10 points, or 0.57 per cent, at 16,848.82. The Standard & Poor’s 500 Index was down 7.39 points, or 0.38 per cent, at 1,943.40. The Nasdaq Composite Index .IXIC was down 6.87 points, or 0.16 per cent, at 4,331.13.

    Reuters reported that MSCI’s global stocks gauge fell 0.3 per cent after earlier flirting with a record high. The FTSEurofirst 300 index lost 0.5 per cent, weighed by a profit warning from German airline Lufthansa LHAG.DE.

    Japan’s Nikkei .N225 gained 0.5 per cent after MSCI’s decision to keep South Korea and Taiwan indexes in the emerging markets classification guaranteed Japan will retain its status as the only developed market in the region.

    In a cautious note, the World Bank late on Tuesday cut its global economic growth forecast for 2014 to 2.8 per cent from 3.2 per cent due to the impact of the Ukraine crisis and a harsh United States (US) winter. The bank was, however, confident economic activity was shifting to a stronger footing.

    Benchmark US Treasury yields retreated from a one-month high hit early in the session, though the 10-year Treasury note US10YT=RR was up 3/32 to yield 2.624 per cent.

    The euro hovered near a four-month low versus the dollar, down 0.12 per cent at $1.3531 EUR=, under pressure due to a widening yield gap between euro zone bonds and their peers.

    Speculation that the US Federal Reserve could raise interest rates sooner than previously expected has supported the dollar and put pressure on the euro this week.

    “Against the dollar, we will see a slow grind toward the $1.35 level, where there will be some support from sovereign players,” said Jeremy Stretch, head of currency strategy at CIBC World Markets.

    Oil markets watched the unfolding crisis in Iraq as militants who seized Mosul, the second-biggest city, advanced into an oil refinery town.

    “We already have Libya out, Iran’s exports are low, and there is no prospect of an immediate return for either of them,” said Bjarne Schieldrop, analyst at SEB in Oslo.

    Brent rose 0.4 per cent to $109.98 while US crude also added 0.4 per cent to $104.75. Palladium rose one per cent to hit a more than 13-year high, underpinned by a five-month strike in South Africa.

  • Share price rises as Caverton Helicopters, UK firm sign pact

    Share price rises as Caverton Helicopters, UK firm sign pact

    Caverton Offshore Support Group (COSG) Plc’s share price rose by 3.58 per cent yesterday at the Nigerian Stock Exchange as its helicopter subsidiary-Caverton Helicopters Limited, signed agreement with the United Kingdom- based CAE for the establishment of an aircraft simulator centre in Nigeria.

    Caverton’s share price added 15 kobo to close at N4.34, indicating a major recovery for the pricing trend since listing in May 2014. Caverton made history last month as the first oil and gas service company to go public in Nigeria.

    The contract for the landmark flight simulator centre was signed yesterday in Montreal, Canada between Caverton Helicopters and CAE, a global leader in the provision of flight simulators, which are devices that artificially recreate aircraft flight for training that pilots are required to undergo every six months.

    When it becomes operational in 2015, the aircraft simulator centre will operate the first commercial aviation training centre in the sub-Saharan African region.

    The purpose built facility to be located at the Murtala Muhammed International Airport, Lagos will feature six (6) simulator bays equipped with a CAE 3000 Series AW 139 helicopter full-flight simulator (FFS), a CAE 7000XR Series Boeing 737 NG full-flight simulator (FFS) and two CAE Simfinity Integrated Procedures Trainers (IPTs).

    The collaborative effort will have CAE providing a turnkey solution that will include the start-up, maintenance and operation of the centre for a specified period pending the full transfer of knowledge and skill-sets.

    This will strengthen Caverton’s position as a leading provider of aviation logistics and training services in the sub region. Caverton’s foray into this segment of the industry in collaboration with the number one provider of advanced simulation training solutions will allow Caverton to diversify its income base, while improving its efficiency and also the efficiency of third party users such as airlines and other helicopter operators in the region.

    The centre will eliminate the challenges experienced by many pilots in the region striving to obtain their re-currency training and type ratings and it is expected to boost local capacity development, while curbing capital flight and improving overall safety in the Nigerian and regional aviation sector.

    “Over the years our pilots have been training in  helicopter training centre’s in the UAE, Qatar, the USA, Brazil, Italy and Norway and we are very excited to be building the first ever simulation training centre in Lagos, Nigeria, with CAE as our partner,” said Adeniyi Makanjuola, Chairman of Caverton Helicopters.

    According to him, CAE’s market leadership and “one-stop-shop” philosophy to training solutions and capacity development make them a strategic partner in the company’s strides to enhance local content commitment to the region.

    “CAE is honoured to have been chosen by Caverton Helicopters for both our leadership and our ability to provide a comprehensive portfolio of training solutions tailored to meet their specific needs, we look forward to continuing to grow our relationship with Caverton to support their growing pilot training needs in the region.” said Nick Leontidis, CAE Group President, Civil Simulation Products, Training and Services.

  • FBN Holdings launches 1.87b shares takeover bid for Oasis Insurance

    FBN Holdings launches 1.87b shares takeover bid for Oasis Insurance

    FBN Holdings Plc has finalized arrangements for a takeover bid to acquire minority shareholdings in Oasis Insurance Plc, in a transaction that may see the insurance firm emerging as a wholly-owned subsidiary of the group.

    FBN Holdings is making the takeover bid through FBN Life Assurance Limited, an insurance subsidiary of FBN Holdings.

    Details of the transactions obtained at the weekend indicated that FBN Assurance will be making a mandatory takeover of 1.87 billion ordinary shares of 50 kobo of Oasis Insurance currently held by minority shareholders. The takeover will apply to shareholders in the book of Oasis Insurance as at the close of business on June 20, 2014 while FBN Assurance will open application list or the takeover on June 23, 2014 and close same on July 14, 2014.

    Although the price for the takeover was not indicated, Oasis Insurance’s share price at the stock market has been around its nominal value. It opens today at 54 kobo per share.

    FBN Holdings, through FBN Assurance, had acquired the majority equity stake in Oasis Insurance. It had acquired about 4.63 billion ordinary shares of 50 kobo each of Oasis Insurance from the previous core investors-Oasis Group Limited and MetroWest Investments Limited.

    The sale transferred the majority 71.2 per cent equity stake in Oasis Insurance to FBN Life Assurance. The acquisition was effected through the execution of a share sale and purchase agreement between the parties following receipt of the requisite regulatory approvals from the National Insurance Commission (NAICOM), Securities & Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE). Oasis is quoted on the NSE.

    With the acquisition of 71.2 per cent, FBN Life was required to make a mandatory take-over bid to the remaining shareholders of Oasis insurance in line with section 131 of the Investment and Securities Act (ISA) and Rule 445 of SEC’s Rules and Regulations.

    The acquisition would enable the FBN Holdings to deepen its insurance business as FBN Life seeks to harness Oasis Insurance’s relative strengths, thereby creating synergies for the development of the insurance business.

    Oasis Insurance is expected to leverage FBN Holdings’ wide network, including the international spread of its flagship-First Bank of Nigeria Limited, to expand its coverage of the Nigerian general insurance market through cross-selling of products on First Bank’s network.

    In a review of the outlook of the group, chief executive officer, FBN Holdings, Mallam Bello Maccido, said the group would leverage on its acquisitions to consolidate its performance.

    According to him, outlooks for each of the group’s businesses remained positive with increased contributions from the businesses expected to cumulate into better returns for the group.

    He said the group has increased investments across its business lines with a view to strengthening its leadership positions pointing out that the recent acquisitions of ICB banks across four West African countries, the acquisition of Oasis Insurance and ongoing efforts to strengthen the investment banking and asset management business through the acquisition of a merchant banking licence would help to enhance benefits to all stakeholders, especially the shareholders.

    “As we steadily progress in our journey under the holding company arrangement, we expect to drive growth in each of our business lines, in a way that will enhance the aggregate performance of the group. This will be complemented by reinforcing the pre-eminence of our commercial banking franchise, while driving the level of contribution from each of the non-banking subsidiaries,” Maccido said.

    FBN Holdings recently launched a new short-term strategic growth plan that will enhance the leadership position of the holding company and ensure better returns to shareholders over the next few years.

    Group chairman, FBN Holdings Plc, Dr. Oba Otudeko, said the new strategic plan covers between 2014 and 2016 and would build on the successes of the previous plan that covered 2011 to 2013.

    According to him, the high-level aspirations and specific actions in the short-term growth plan will be building blocks that will not only sustain the company’s momentum but raise its leadership position in the evolving market place.

    He said the company has made significant progress integrating its business planning process and harmonising its investment decisions in a way that allowed the entire group to take full advantage of opportunities in non-banking spaces.

    “As we continue to diversify our profit base through this process, we will remain focused on containing costs and ramping up operational efficiency through targeted centralisation of all functions that lend themselves group-wide,” Otudeko said.

    He said the experience of the company with the holding company structure has helped to hone its business focus, deepen centralisation and skill sets across the group and increase prospects of profitability.

     

  • Our new growth plan will bring better returns, says Learn Africa

    Learn Africa Plc has devised an aggressive sales and marketing plan that would increase the acceptability of the company’s books across the country and ensure that increased sales trickle down into better returns to shareholders.

    At the annual general meeting of the company in Abeokuta, chairman, Learn Africa Plc, Mr. Emeke Iwerebon, assured shareholders that ongoing initiatives would lead to increased sales and better returns to shareholders.

    According to him, the acceptance of the company’s products by Federal and State governments and other relevant agencies as well as its performance in the open market sales are all adding up to enhance a bright future for the company.

    “The future of Learn Africa is great. We know how central and important customers are to us and to our business. We are developing new ways of managing our relationships with our customers, and ultimately, meeting their peculiar needs. This way, our products will readily sell and bring good returns to our dedicated shareholders,” Iwerebon said.

    He outlined that the company had earlier undertaken critical appraisal of its products and growth and evolved strategies which will ensure that it sells its books on cash and carry basis, in spite of the competition in the publishing industry.

    He however lamented the adverse effect of piracy on the printing and publishing industry noting that piracy has taken international dimension as pirated copies are now being printed abroad.

    “The pirated books are often difficult to distinguish from the legitimate ones; particularly as such pirated books are now printed overseas. This is why we are determined to further work closely with all agencies saddled with anti-piracy operations, as we are determined to seek every means possible to defend our intellectual property rights, and those of our authors,” Iwerebon said.

    He reiterated the commitment to promotion of excellence and mental competitiveness in Nigerian schools pointing out that the company, under its Learn Africa Education Development Foundation, has instituted awards for students and teachers.

    Audited report and accounts of the company for the year ended December 31, 2013 showed that turnover stood at N2.28 billion while pre and post tax profits stood at N125.7 million and N100.13 million.

    The shareholders approved distribution of N92.57 million as dividends for the year, representing a dividend per share of 12 kobo. Total assets rose from N4.61 billion to N4.63 billion.

  • Equities still has better prospects, says Rewane

    Equities still has better prospects, says Rewane

    Nigerian stock market will continue a slow but steady recovery in the weeks ahead with second quarter earnings expected to quicken investors’ appetite and stimulate the rally.

    Managing director, Financial Derivatives Company (FDC) Limited, Mr. Bismarck Rewane, who outlined the outlook for the equities market in his latest review, said the modest market recovery, which has seen the market opening today with a year-to-date return of 0.48 per cent, would continue through the remaining weeks of second quarter.

    According to him, equities would record further gains in the third quarter as positive results from companies highlight potential for returns to investors.

    He also noted that the banking sector, which dominates transactions at the stock market, could receive a possible “Emefiele boost”, referencing the new Central Bank of Nigeria (CBN) governor, Godiwn Emefiele, who was until his appointment managing director of Zenith Bank.

    Rewane however cautioned that there could be possible correction in subsequent quarters as banks oscillate between policy changes and market conditions.

    He added that with no new listings expected in the immediate months, increased allocation from the growing pension assets could inflate equities’ prices at the stock market.

    He said the listing of SEPLAT Petroleum Development Company and Caverton Offshore Support Group may stimulate appetite for listing in the oil and gas industry, pointing out that possible listings in the years ahead could include Nestoil, Nigeria Liquified Natural Gas Company (NLNG) and Nigeria National Petroleum Corporation (NNPC).

    Quoted equities had recorded its first positive month-on-month in May with a gain of N1.02 trillion. With a last-day bullish rally that added N392 billion, quoted equities strode through May with their best performance so far this year, displacing the bears that had left the average year-to-date return negative in the past four months.

    While the market had closed April with a four-month average loss of -6.88 per cent, the average gain of 7.77 per cent recorded in May turned the average year-to-date return positive at 0.35 per cent. Though modest, the five-month average gain of 0.35 per cent represents a significant breakeven for the equities market. It also underlined the overtly bullish overall market situation during the month.

    Aggregate market value of all quoted equities closed May at N13.695 trillion as against its opening value of N12.672 trillion, indicating a whooping gain of N1.02 trillion. The All Share Index (ASI), the main value-based index that tracks prices of all quoted equities, also rallied by 7.77 per cent to close May at a high of 41,474.40 points compared with its index-on-board of 38,485.48 points. The market had seen strong rally last week with the ASI recording a week-on-week gain of 4.12 per cent.

    However, over the five-month period, investors netted N469 billion in capital gains. Aggregate market value of all quoted equities had opened 2014 at N13.226 trillion.

    Quoted equities had wriggled all through the past four months with negative month-on-month return. The stock market recorded a negative return of -0.68 per cent in April, building on the bearish trend that had characterized the stock market in the first quarter. In January, February and March, the market consistently recorded losses of 1.8 per cent, 2.5 per cent and 2.0 per cent respectively.

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  • Online forum to promote Nigeria’s investment potential

    Online forum to promote Nigeria’s investment potential

    A new window of opportunity for aspiring investors in Nigeria will soon be opened with the impending launch of “Nigeria States”- a web-based forum that highlights the nation’s potential.

    The website was created by Goldstock Chambers, which invited the Nigerian Investment Promotion Commission (NIPC), the Nigerian Export Promotion Council (NEPC) and the Nigerian Export Import Bank (NEXIM) to collaborate in its launch. The NIPC, NEPC and NEXIM are the foremost agencies for attracting, promoting and aiding investors to transact business in Nigeria. The forum will be officially unveiled at the Nigerian Diaspora Direct Investment Summit next week in London.

    Head, Goldstock Chambers, Barrister Lloyd Aneke, said the online forum contains information on the investment opportunities within every state of the federation.

    According to him, the information will act as a magnet to attract investors to Nigeria.

    “The essential aim is to attract a greater inflow of foreign direct investment (FDI) to our country,” Aneke said.

    He noted that the site is targeting groups such as Nigerians in the Diaspora, Nigerians at home, as well as foreign investors.

    “It will have the effect through increased FDI in aiding our new Nigeria reach the millennium development goals (MDGs) and Vision 20:20/20, thereby reducing poverty,” Aneke stated.

    He listed the areas identified by investors for investment within the states to include agriculture, infrastructure, health, real estate, solid minerals and tourism adding that such method of showcasing a country’s profile has been adopted in recent years by a host of different countries to boost their economies.

    “The information on the international web site took our chambers several years to complete and we act as legal consultants and advisers to the investors. We are able to actively link investors to the areas of investment within states. We are also able to seek investors in particular fields on behalf of states,” Aneke said.

    He pointed out that the current global economic situation offers Nigeria the opportunity to showcase its investment opportunity to the world noting that it will have the effect of offering Nigerians in the Diaspora a clear alternative location for relocation.

    According to him, Nigerians in the Diaspora require information and a helping hand to return to Nigeria to invest.

    “It will bring about increased visibility in the world. Investors will have a direct link to the appropriate state agency able to aid them in transacting business in the state. We can attract investors for states in specific areas of investment potential within the state. The state will be able to tailor its requirements on the site. The site will enable ease of comparison for the investor between all the states in the federation, thereby raising the profile and presence of each state. We will hold investment road shows in Europe and USA to attract investors to the states. We will take the investment web site to industrial events taking place in Europe and the USA to ensure that the states profile reach a broad audience,” Aneke said.

  • Nomanini partners Aurora on informal markets

    Nomanini partners Aurora on informal markets

    Nomanini has announced its expansion into West Africa, having secured a partnership with Nigerian enterprise Aurora VM. This partnership represents Nomanini’s entry into Nigeria.

    Nomanini is a Cape Town-based technology solutions provider that builds tools to facilitate cash payments in informal markets.

    Nomanini’s hardware enables traders in the informal economy to sell prepaid mobile services, prepaid utility services and can be used as a cash collection point for microloans, microinsurance and mobile money. Vendors provide these services to their communities by utilising Nomanini’s portable point of sale terminals which are easy to use, fully mobile, and which have been specifically designed for use in informal markets. Nomanini’s technology enables local clients like Aurora to customise its technology for their regions.

    Chief executive officer, Nomanini, Vahid Mondajem said the firm’s core business of facilitating cash transactions in informal markets is well-aligned with Aurora’s goal of alleviating poverty in Nigeria.

    Aurora will use Nomanini’s technology to enable self-employment opportunities to empower women and unemployed youth to alleviate poverty in Nigeria.

    “Nigeria represents a key market in Africa. It is the continent’s biggest, and by some estimations, most dynamic market. We are delighted that, together with Aurora VM, our solutions are providing opportunities for women and youth,”  Mondajem said.

    Aurora VM is a Nigerian women-run social enterprise that was formed in 2013.

    Aurora’s first initiative is to introduce airtime vending solutions for the informal sector in Nigeria. This initiative specifically targets the economic empowerment of traditionally ostracised females – widows, abandoned wives, the uneducated – in the first phase of the programme.

    The most widely traded virtual commodity in Africa is prepaid mobile service. There are over 120 million mobile subscribers in Nigeria, 97% of which are prepaid. At present, prepaid distribution is achieved via trade in physical scratch cards primarily because they are easy to use and relatively quick to trade. However, their production is costly and they effectively leave informal entrepreneurs with little profit as they are at the end of a very long distribution chain.

    “The most commonly used form of prepayment in Nigeria is scratch cards. We were looking for a better form and researched POS terminals used both in Nigeria and abroad as an alternative. Unfortunately, they generally have a steep learning curve and are difficult to operate. What we wanted was a simple and quick solution that satisfied all our needs and Nomanini offers us this,” chief executive officer, Aurora, Iyabode Uko said.

  • IOSCO reviews reliance on credit rating agencies

    IOSCO reviews reliance on credit rating agencies

    The International Organization of Securities Commissions is reviewing the extent to which asset managers, investors and other parties should rely on credit rating agencies (CRAs) in their asset management.

    The global body of securities regulators has published a consultation report on Good Practices on Reducing Reliance on Credit Rating Agencies (CRAs) in asset management with the aim of gathering the views and practices of investment managers, institutional investors and other interested parties on the subject.

    It will subsequently develop a set of good practices on reducing over reliance on external credit rating in the asset management space.

    IOSCO noted that CRAs play a prominent role in today’s global financial markets pointing out that while approaches may differ across jurisdictions, investment managers often use the services of CRAs to form an opinion on the creditworthiness of a particular issuer before purchasing securities, selecting counterparties, or choosing the best collateral to secure transactions.

    It added that investors often refer to CRA ratings before buying shares of a fund, or when guiding investment managers on the basis of a tailored investment mandate.

    IOSCO pointed out that the role of CRAs has come under regulatory scrutiny, mainly as a result of the over-reliance of market participants, including investment managers and institutional investors, on CRA ratings in their assessments of both financial instruments and issuers in the run-up to the 2007-2008 financial crisis.

    According to IOSCO, the good practices that result the consultation paper will be addressed to national regulators, investment managers, and investors, where applicable while IOSCO has also launched a separate project to identify the good practices of intermediaries with regard to the use of alternatives to credit ratings to assess creditworthiness.

    The report stresses the importance for asset managers to have the appropriate expertise and processes in place to assess and manage the credit risk associated with their investment decisions. Recognizing the utility of external ratings, the report mentions that they can be used as an input among others to complement a manager’s internal credit analysis and provide an independent opinion as to the quality of the portfolio constituents. However, in order to avoid the over-reliance on external ratings, the report lists some possible good practices that managers may consider when resorting to external ratings.

    Some of the good practices undergoing consultation include that investment managers make their own determinations as to the credit quality of a financial instrument before investing and throughout the holding period. While external credit ratings may form one element, among others, of the internal assessment process but it should not constitute the sole factor supporting the credit analysis.

    Also, there should be an internal assessment process that is commensurate with the type and proportion of debt instruments the investment manager may invest in, and a brief summary description of which is made available to investors, as appropriate.

  • Caverton to build Africa’s first aviation training centre

    Caverton to build Africa’s first aviation training centre

    Newly listed Caverton Offshore Support Group (COSG) Plc has received all regulatory approvals to build Africa’s first aviation training centre in Nigeria as it seeks further opportunities to diversify its income base and ensure better returns to shareholders.

    Chairman, Caverton Offshore Support Group (COSG) Plc, Mr. Aderemi Makanjuola, told shareholders yesterday at the annual general meeting of the company in Lagos that construction of the aviation training centre would begin in the next few weeks.

    According to him, the company has also obtained relevant regulatory approvals to commence its maintenance, repair and overhaul (MRO) centre alongside the aviation training centre on a 40,000 sq meters facility at the Muritala Mohammed International Airport (MMIA), both of which will house original equipment manufacturers (OEMs).

    He outlined that the centres were part of the group’s medium-term strategy aimed at diversifying its revenue stream and insulate Caverton from the vagaries of contract awards.

    He noted that the venture partnership of Caverton Marine and RK Offshore Management PTE Limited owners, suppliers and operators of marine equipment based in Singapore, is now well positioned to convert opportunities for full participation in the provision of logistics to both national and international oil companies within Sub-Saharan Africa.

    “Our plans in 2014 include the vigorous promotion of its AIM 4 ZERO campaign in all our operations. We also started in May 2014, our corporate rebranding exercise with the unification of all operating companies’ logos into a single logo that all companies under the Caverton brand are now using. The campaign will entail paying more attention to all our communication media and effective use of both online and offline media for positive reinforcement of our messages,” Makanjuola said.

    He pointed out that the recent listing of Caverton has created a win-win opportunity for previous owners of the company and new shareholders to trade on the company’s shares adding that the company has entered a new growth phase that would yield huge benefits to all stakeholders.

    He noted that Caverton had consolidated its operations in 2013 as it had full operations of all six of Shell’s AW139 helicopters and commenced operations of the DHC6-400 for Shell and also started the TUPNI operations from Lagos using the AW139.

    According to him, the group’s aircraft availability remains high at an average of 95 per cent on all contracts.

    “In Douala, we replaced in April 2013 the leased aircraft with our twin otter and stabilized the operations through a number of initiatives. We also focused attention on quality and safety standards. Our efforts were indeed rewarded with the subsequent issuance of an unrestricted AOC for Caverton’s operations,” Makanjuola said about the group’s international operations.

    He reiterated the commitments of the group to development of indigenous capacity in the oil and gas servicing industry noting that the group had in 2013 sponsored 18 trainee pilots in various trainings on both rotor and fixed wing aircraft while it also sponsored six trainee engineers to NCAT who will be graduating in 2014.

    “We hope to do more in 2014.  Just like we had done in flight operations, we want to raise the technical knowledge and efficiency of our engineering and non-technical staff. Our focus will thus be on engineering and non-technical training as well as training for non-technical staff-ground operations, back office and resources management among others. All this is in full compliance to the National Content Development (NCD) Act signed into law in 2010, which was designed primarily to encourage the core development of technical expertise amongst Nigerian Nationals. We remain strategically positioned in the Nigerian oil and gas support industry to encourage the realization of the Act,” Makanjuola said.

    He added that the group has strengthened its corporate governance, board and management to ensure that it complies with code of corporate governance and relevant listing requirements.

    Shareholders approved the payment of gross dividend of N418 million, representing a dividend per share of 12.5 kobo. Audited report and accounts of Caverton for the year ended December 31, 2013 showed that turnover rose from N16.13 billion in 2012 to N18.66 billion. Total operating profit grew to N4.42 billion in 2013 as against N3.56 billion in 2012. Profit before tax rose from N2.16 billion to N3.16 billion while profit after tax rose from N1.36 billion to N1.88 billion.

    Makanjuola noted that the increase in both turnover and net profit was due to the stability in the group operations and incremental business from both existing and new contracts signed during the year.

     

  • Five stockbrokers account for 56.4% of NSE’s turnover

    Five stockbrokers account for 56.4% of NSE’s turnover

    Five stockbrokers accounted for more than half of turnover on the Nigerian Stock Exchange (NSE) in May, underlining the concentration of transactions among few stockbrokers out of some 200 dealers at the stock market.

    Trading summary showed that Stanbic IBTC Stockbrokers Limited, CSL Stockbrokers Limited, Recap Securities (Nigeria) Limited and Cordros Capital Limited dominated the transaction table, in terms of value.

    Stanbic IBTC led the overall table with transactions worth N30.1 billion or 15.11 per cent.  CSL Stockbrokers followed with N27.465 billion or 13.8 per cent. Rencap Securities sold N22.301 billion or 11.2 per cent while Cordros Capital accounted for N22 billion or 11 per cent.  FBN Securities Limited occupied the fifth position, transacting N10.6 billion or 5.3 per cent.

    Greenwich Trust Limited sold N8.627 billion worth of shares which is about 4.3 per cent of the value of transactions for the month. African Alliance Stockbrokers Limited   accounted for N6.584 billion or 3.3 per cent while Meristem Securities Limited accounted for N6.12 billion or 3.0 per cent.

    Other top -10 stockbroking firms included Investment One Stockbrokers International Limited, N5.35 billion, 2.6 per cent and Chapel Hill Denham Management Limited, N4.271 billion or 2.15 per cent. In all the top 10 brokers accounted for N143.464 billion or 72.1 per cent of the total value of transactions recorded in the month of May.

    In volume terms, Stanbic IBTC maintained the number one spot, accounting for 1.581 billion shares of 10.48 per cent of trading volume. CSL Stockbrokers traded 1.336 billion shares or 8.8 per cent. Marina Securities Stockbroking Services Limited sold 894 million shares or 5.9 per cent to occupy the third position, while Rencap accounted for   829 million shares or 5.9 per cent. Cordros Capital sold 692.905 million shares or 4.5 per cent, just as BGL Securities Limited traded 513.541 million shares or 3.4 per cent.

    Also, FBN Securities Limited accounted for 501 million shares, 3.32 per cent; SFC Securities Limited traded 440 million shares, 2.91 per cent; Capital Express Securities Limited pooled 429.304 million shares, 2.84 per cent while Cashcraft Asset Management Limited traded 406.373 million shares, representing 2.69 per cent of total turnover volume.

    Overall, the top-10 stockbroking firms accounted for 7.687 billion shares or 50.92 per cent of the transactions for the month.