Category: Equities

Norrenberger, has unveiled a dollar-based mutual fund which provides investors with the opportunity to invest in dollar-denominated instruments.

Chairman, Norrenberger , Ibrahim Aliyu said the  Dollar Fund was Norrenberger’s third mutual fund launched in less than two years.

He said the new mutual fund would help to mitigate the eroding effects on  investments due to the constant devaluation of the local currency.

He noted that the group opened the Norrenberger Islamic and Money Market Funds in March and August 2021 respectively, following the approval of the Securities and exchange Commission (SEC).

Aliyu, who spoke in Abuja at the official launch of the group’s dollar fund, said the fund is a flexible solution for investors.

“The Norrenberger Dollar Fund marks our third Mutual Fund launched in less than two years. Recall that we opened the Norrenberger Islamic, and Money Market Funds in March and August 2021 respectively, following the approval of the Securities and exchange Commission (SEC).

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“We are proud to be here again with yet another collective investment scheme that provides flexible solution for investors seeking to add Dollar-denominated securities to their portfolio.

“In view of rising investors’ appetite in dollar-denominated assets to hedge against the sustained devaluation of naira, we consider now as no better time to reignite our mantra of simplifying wealth creation,” Aliyu said.

Group Managing Director, Mr Tony Edeh said the group has a clear mission to create financial asset classes targeting the need of every single household in Nigeria.

He said the group hopes that 2025, it would have delivered at least one financial solution to every household.

Edeh added that the launch comes at the right time to help investors diversify their portfolio while also helping those with US Dollar obligations hedge against currency risk.

The fund will invest in Eurobonds issued by governments and corporates and dollar denominated money market instruments and cash.

It has a minimum subscription amount of $500 and an additional subscription amount of $100.

Director General, Securities and Exchange Commission (SEC), Mr. Lamido Yuguda has  said that the commission will promote investment in digital assets with investor protection at the core of their operations.

He said the commission would also explore blockchain technology to advance virtual and traditional investment products.

He assured that the commission remains committed to its mandate of investor protection noting that the “commission is in the business of protecting investors, not in the business of speculation”.

According to him, the commission will continue to create awareness, imparting knowledge and engendering public participation on issues relating to fintech, sustainable finance, financial inclusion and non-interest finance.

He said that SEC recognizes the disruption of fintech in the financial industry and aims to create an enabling regulatory environment that would ensure a balance between investor protection and technological advancement.

Yuguda said SEC will advance efforts towards developing a comprehensive regulatory framework that ensures that operators in the digital asset space conduct their activities in a manner that protects investors and maintains financial system stability.

He stated that to develop an appropriate regulatory frameworkfor fintech, regulators need to understand the digital asset space to be better positioned to address identified risks.

“The SEC will continue to monitor developments in the digital asset space and further engage and collaborate with all critical stakeholders, including the CBN, to create a regulatory structure that enhances economic development while promoting a safe, innovative and transparent capital market.

“We believe that fintech would not only bring about efficiency to the capital market but would also serve as a veritable tool for advancing Nigeria’s financial inclusion agenda. However, there is a need to develop an appropriate regulatory framework to ensure the safety of innovation to investors and preserve market integrity,” Yuguda said.

According to him, SEC’s approach is consistent with the approaches of several securities regulators around the world as in the United States of America, the US SEC requires platforms that offer to trade in digital asset securities and operate as exchanges to register or seek to be exempted from registration.

“In the United Kingdom, the Financial Conduct Authority (FCA) requires firms that carry on specified activities, by way of business, involving a crypto asset, to be authorized. Crypto assets are viewed as financial products in South Africa and the Financial Sector Conduct Authority (FSCA) requires persons carrying out associated activities to be regulated.

“In Malaysia, operators of digital asset platforms are required to be approved by the Securities Commission (SC) as recognized market operators. Several other securities regulators have taken similar positions,” Yuguda said.

He said that at the moment, crypto exchanges do not have access to the banking platform that is needed to drive their trades in Nigeria saying that in its drive to implement the revised 10-year capital market master plan, the commission is looking at digital assets that really protect investors.

 

 

Nigeria’s apex capital market regulator, Securities and Exchange Commission (SEC), has started plan to rebuild the E-Dividend Management Mandate System (e-DMMS) platform in a fresh move to forestall and curb unclaimed dividends in the capital market.

Director General, Securities and Exchange Commission (SEC), Mr. Lamido Yuguda, explained that the enhancement of the e-dividend platform would include having a centralized submission of E-dividend mandate forms, Application Programming Interface (API) for banks and registrars, and a revamped web interface among others.

He said members of the Capital Market Committee had adopted some measures to increase the number of mandated investors on the e-DMMS and reduce the quantum of unclaimed dividends in the market adding that the e-dividend Committee had been working on the platform and have concluded plans to have it rebuilt.

Yuguda said SEC has invested a lot of resources as well as embarked on a number of programmes on investor education to ensure that people mandate their accounts to enable them receive the benefits of their investment in the capital market.

“The reason why the number may not be reducing as expected is because a lot of investors have not mandated their accounts. Dividends are now distributed electronically, so dividends go directly into the investors account and if everybody mandates their accounts there would be little unclaimed dividends in the system.

”This process is still open and can be done with the registrars, forms can be obtained from the banks too and it’s a very simple process. We also have on our website a tool that assists the investors to determine any unclaimed dividends that they have. And I would encourage everyone to take advantage of these tools or to directly speak to the complaints section of the SEC and we would guide that person appropriately,” Yuguda said.

He commended the House of Representatives Committee on Capital Markets and Institutions on Unclaimed Dividends over its efforts to investigate the rising value of unclaimed dividend and unremitted withholding tax on dividends.

Yuguda assured of the commission’s readiness to provide all the necessary support to the committee to enable it carry out its assignment.

He also emphasised the need for the stakeholders in the financial sector to collectively work towards the enactment of the Investments and Securities Bill 2022, which will enhance the performance of the Nigerian capital market and align it with global best practices.

Red Star Express Plc has said the company would leverage its growth by exploring more opportunities from increased investments by Federal Express (FedEx) in Nigeria.

Group Managing Director, Red Star Express Plc, Auwalu Babura, yesterday said the enhanced structure of its business and a renewed partnership with its major partner, Federal Express, would lead to higher growths in the years ahead.

Babura spoke yesterday in Lagos at the Nigerian Exchange (NGX) during a closing gong ceremony to commemorate the 30th anniversary of Red Star Express.

“FedEx has decided to increase its investments in Nigeria and have upgraded their relationship with us, opening us up to bigger opportunities,” Babura said.

He said the company would continue to engage the capital market community and leverage other opportunities provided by the Exchange to boost its growth.

FedEx had announced that it had established a direct commercial presence in Nigeria, to meet the country’s growing international shipping demands.

With a direct presence in the country, businesses and customers in Nigeria now have greater access to a wider portfolio of FedEx Express shipping solutions, while Red Star Express Plc, the service provider in Nigeria, would continue to provide the infrastructure for ground operations.

FedEx has been facilitating trade in Nigeria since 1994, offering its international solutions through Red Star Express Plc. With this latest initiative, FedEx will continue to leverage the capabilities and infrastructure of the service provider, Red Star Express Plc, that will continue to provide pick-ups, deliveries, customs clearance services, and retail locations across the country.

FedEx has reiterated its commitment to supporting the Nigerian Government’s Economic Recovery and Growth Plan (ERGP), to drive structural reforms to diversify its economy and reduce dependency on oil. The FedEx direct presence in the country will help connect Nigerian business owners, exporters, importers, and consumers to more than 220 countries and territories worldwide, covering more than 99 per cent of the world’s gross domestic product.

Vice President, FedEx Middle East and Africa Operations, Taarek Hinedi, said the new investment in Nigeria was a strategic step that makes it easier for local businesses to ship with the company as they look to tap more import and export opportunities and grow their customers around the world.

“Nigeria is on the right path for further growth and FedEx is committed to supporting this growth and connecting Nigeria to some of the biggest trading partners located in Asia and Europe. The FedEx network is crucial to provide businesses with greater connectivity between Africa and Europe as well as within the Asia Pacific, Middle East and Africa (AMEA) region.

“As Nigeria continues with its 2021 to 2025 National Development Plan to increase the share of its exports to Africa up to 35 per cent from a base figure of 20 per cent, businesses will require a range of international services and solutions to help boost the economy,” Hinedi said.

Speaking at the 30th anniversary ceremony at the NGX, Divisional Head, Capital Markets, Nigerian Exchange (NGX), Mr Jude Chiemeka congratulated Red Star Express for successfully weathering the challenges of the Nigerian business environment while delivering value for shareholders.

He commended the company’s management for their efforts at driving growth in revenue amid a moderation in operating margin due to the inflationary pressures of the macro economy.

“NGX provides the platform of choice for raising capital and with our international collaborations, opens you up to a wide range of domestic and international investors to achieve your goals and visions,” Chiemeka said.

He added that the Exchange had various investment products including but not limited to green, social and sustainability bonds that companies like Red Star could take advantage of and also leverage capacity building initiatives handled by NGX’s knowledge platform, X-Academy.

The Nigerian Exchange (NGX) yesterday listed two futures contracts, paving the way for secondary market trading on the exchange traded derivatives (ETDs).

The NGX listed the NGX 30 Index Futures Contract and NGX Pension Index Futures Contracts. Both ETDs expire on June 16, 2023. The NGX 30 Index contract was listed at N1,836.25 per unit while the NGX Pension Index contract was listed at N1,782 per unit.

The NGX had in April 2022 launched its ETDs market with the unveiling of the two equity index futures contracts. The launch of the ETD market saw the unveiling of the two equity index futures contracts, NGX 30 Index Futures and NGX Pension Index Futures, with more securities to be added in the future.

To promote clearing efficiency, stability, and confidence, the Exchange had collaborated with a central counterparty (CCP) in Nigeria, NG Clearing Limited, to provide the clearing infrastructure for NGX derivatives market and its clearing members – Access Bank and Zenith Bank.

The ETDs market commenced trading activities with three stockbrokers – Cardinal Stone Securities Limited, Meristem Securities Limited and APT Securities and Funds Limited – which had been cleared by NGX Regulation Limited to facilitate transactions on behalf of investors on NGX derivatives market.

Chief Executive Officer, Nigerian Exchange (NGX), Mr. Temi Popoola, said the launch of the new market segment was  consistent with the Exchange’s commitment to develop the Nigerian capital market by providing a market that thrives on innovation and responds to the needs of stakeholders in accessing and using capital.

He commended the efforts of stakeholders who have successfully driven the completion of the derivatives market since 2014.

“NGX remains committed to building an exchange that can cater to the increasingly sophisticated needs of domestic and foreign investors. A strong pillar in our strategy is to enhance liquidity and expand market capitalisation to the end that we create value for stakeholders, and the introduction of ETDs is a critical step in the right direction. The platform will play an essential role in broadening and deepening the market, adding new impetus to NGX’s leading position as Africa’s preferred exchange hub,” Popoola said.

ETDs are standardised, highly regulated, and transparent financial contracts listed and traded on a securities exchange, and guaranteed against default through the clearing house of the derivatives exchange. NGX ETDs market will complement existing asset classes, provide investors and other market players with the necessary tools for tactical asset allocation, as well as improve risk and cost management for effective portfolio management. It will further enhance the participation of domestic and international investors in Nigeria’s financial markets, which will positively impact the performance of the economy.

Nigerian equities ended the first trading session of the week with a marginal gain as increased demand for large-cap banking stocks helped to moderate growing profit-taking transactions.

Benchmark indices at the Nigerian Exchange (NGX) indicated average gain of 0.04 per cent, representing net capital appreciation of N9 billion.

The All Share Index (ASI) – the value-based common index that tracks all share prices at the NGX inched up to close at 48, 899.08 points as against its opening index of 48,881.93 points.

Aggregate market value of all quoted equities rose marginally from its opening value of N26.625 trillion to close at N26.634 trillion.

The positive overall market situation was driven by gains recorded by mid and large-cap stocks, especially Zenith Bank, FBN Holdings (FBNH) and Lafarge Africa.

There were 11 losers to 10 gainers. Learn Africa recorded the highest gain of 9.70 per cent to close at N1.81 per share. Jaiz Bank followed with a gain 9.20 per cent to close at 95 kobo. SCOA Nigeria rose by 8.86 per cent to close at 86 kobo per share. SUNU Assurance went up by 7.14 per cent to close at 30 kobo while Japaul Gold & Ventures appreciated by 3.70 per cent to close at 28 kobo.

On the negative side, Royal Exchange led the losers’ chart by 9.88 per cent to close at 73 kobo. Neimeth Pharmaceutical followed with a decline of 9.88 per cent to close at 73 kobo. AXA Mansard Insurance depreciated by 4.52 per cent  to close at N1.90 while Courteville Business Solutions and  UACN Property Development Company (UPDC) declined by 2.17 per cent each to close at 45 kobo and 90 kobo respectively.

The momentum of activities however improved as total turnover jumped by 134.6 per cent to 236.586 million shares valued at N2.517 billion in 3,334 deals. Access Holdings topped the activity chart with 120.976 million shares valued at N1.028 billion. Jaiz Bank followed with 19.037 million shares worth N17.822 million. Guaranty Trust Holding Company (GTCO) placed third with 17.196 million shares valued at N361.311 million. FBN Holdings recorded 12.040 million shares valued at N131.220 million while FCMB Group traded 8.597 million shares worth N30.089 million.

Analysts at Afrinvest Securities expected the market to sustain its modest bullish run citing potential for bargain-hunting in the day ahead.

British International Investment (BII), the UK’s development finance institution and impact investor, and African Guarantee Fund (AGF),  have announced their partnership of a $75 million re-guarantee agreement for Small and Medium Enterprises (SMEs) across Africa.

Through this facility, AGF and BII will provide credit guarantees to partner financial institutions for up to 75 per cent of the risk on SME loans, thereby increasing access to credit and reducing collateral requirements for these SMEs.

As a result, the eight-year partnership is expected to facilitate up to $150 million in loans to 17,300 SMEs through partner financial institutions. This partnership will also encourage lending to SMEs that are women-owned or led as well as SMEs that are climate-focused.

SMEs in Africa continue to face significant challenges in accessing credit. Financial institutions are often constrained by regulatory requirements, limited appetite for a segment that is perceived to be higher risk, a lack of adequate collateral available from SMEs, knowledge gaps by the lenders and skill gaps demonstrated by SME borrowers.

Risk-sharing facilities are a key tool to support knowledge gaps by the lenders and in broadening their SME lending while mitigating risk and allowing them to build capabilities and track record in serving this market segment. As such, at least half of the overall facility will specifically target SMEs in the most fragile African economies to support promising businesses that can contribute to productive economic development over the long term.

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UK Foreign Secretary, James Cleverly said: “British International Investment is already a force for good in Kenya, supporting jobs and livelihoods in Africa. This investment shows that when we go together, we can go far.”

Constant N’zi, Deputy Group Chief Executive Officer and Group Chief Risk Officer, African Guarantee Fund said, “Our partnership with British International Investment marks our first engagement with a UK Development Finance Institution and is the beginning of a journey that will positively impact African SMEs. Through this re-guarantee, our capacity to support lending institutions has been increased and we are certain of increased economic growth across the forty African countries wherein our guarantee products are utilized.”

Investment Director & Head of Intermediated Credit, British International Investment, Jo Fry,  added: “We are delighted to partner with African Guarantee Fund, a deeply impact-focused African institution, on this critical mission. This investment will increase access to finance for SMEs across the African continent, with a focus on those in the most challenging contexts. The partnership, which will also target funding at climate-focused businesses as well as SMEs owned and led by women, will contribute toward increasing inclusive and sustainable development for Africa. The programme represents BII’s commitment to working with best-in-class local institutions who are deeply embedded in the countries and communities that they serve.”

•NGX honours firms

The sustainable growth of the Nigerian capital market is a major driver for the development of the Nigerian economy.

Stakeholders said innovation, compliance and other best practices are important for sustainable growth of the capital market.

Speakers at the ‘Made of Africa Awards’ organised by the Nigerian Exchange (NGX) in Lagos agreed that there is need to further reinforce the values that attract investors to the market and grow the African economy.

Governor of Edo State, Mr. Godwin Obaseki, a leading capital market operator, highlighted the importance of the capital market to the economy, urging all stakeholders to move Nigeria towards a more productive economy and less import-dependent.

He noted that NGX has continued to stand out as a market infrastructure of choice for public and private sector capital formation.

Director General, Securities and Exchange Commission (SEC), Mr Lamido Yuguda, said that the commission had championed innovative measures that have improved the market including dematerialisation, direct cash settlement and e-dividend.

“The long-term sustainability in the market requires innovation of which the fundamental outcome was maximum return on investment, reduction in cost of doing business and increased production,” Yuguda said. Yuguda was represented by Executive Commissioner, Corporate Services, SEC, Mr Ibrahim Boyi.

Speaking on the African capital market potentials, Chairman, Coronation Capital and a former President of the Nigerian Stock Exchange, Mr Aigboje Aig-Imokuede, noted that the capital market in this period of restrained global growth had an important role to play in stimulating economic growth and development through the efficient allocation of resources.

He pointed out that after a long haul of liquidity in global markets, central banks across the globe are implementing hawkish monetary policies to revive price stability and tame inflationary pressures.

Chairman, Nigerian Exchange (NGX), Mr Abubakar Mahmoud said the goal of the Exchange with the awards was to further catalyse innovation, corporate performance, shareholder return, compliance to rules and regulation in driving investor confidence and aiding regulatory oversight on the market.

“It is essential that we continue to collaborate, encourage and incentivise our partners through initiatives like the NGX Made of Africa Awards. At NGX, relationships, partnerships, collaboration and inclusivity continue to drive our actions in the quest to spotlight ‘The Stock Africa is Made Of’,” Mahmoud said.

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Chief Executive Officer, Nigerian Exchange (NGX), Mr Temi Popoola, said NGX Made of Africa Awards which was previously named the NSE CEO Awards, had been reviewed to reflect the dynamism of the capital market and the transformation it had witnessed so far.

“We are delighted to be extending the reach of these awards to further highlight our commitment to inclusivity, innovation and integrity whilst highlighting NGX as the platform of choice to raise capital,” Popoola said.

Chairman, Nigerian Exchange Group (NGX Group) Plc, Dr Umar Kwairanga and Chief Executive Officer, NGX Group, Mr Oscar Onyema commended NGX for driving market development with the ‘Made of Africa Awards’ while agreeing that inclusivity and transparency were reflected in its design and execution.

The awards ceremony spotlighted excellence, creativity and integrity as NGX sought to amplify the activities of its stakeholders and players in the capital market ranging from issuers, securities dealers, issuing houses, fund managers, trustees, legal firms, media and content creators were rewarded for their contributions to the development of the market.

Some of the awardees were Dangote Cement as Best Issuer in Terms of Number of Fixed Income Listings; Lafarge Africa as Leader in Sustainability Reporting; Pilot Securities Limited as Most Compliant Trading License Holder; Aluko and Oyebode as Best Solicitor in terms of Value of Deals; and Coronation Securities Limited as Best Sponsoring Trading License Holder of the Year. Lagos State won the State with the Largest Sub-national Debt Instrument; MTN Nigeria Communications won the Most Compliant Listed Company; CardinalStone Securities won the Best Trading License Holder Across Asset Classes; and BUA Foods was awarded the Listing of the Year.

Other winners include Meristem Securities Limited won the Award for Issuing House with the Highest Number of Primary Market Transactions – Equity; Stanbic IBTC Capital Limited was recognised as Issuing House with the Highest Number of Debt Transactions; Chapel Hill Denham Advisory Limited won Issuing House with the Largest Value in a Single Deal; while Capital Trust Investment and Assets Management Limited was the Fund Manager with the Largest Listed Fund Size for the year. ARM Trustees Limited was recognised as the Best Trustees in Terms of Deal Value and APT Securities and Funds Limited won the Most Active and Innovative Trader in Derivatives. Money Africa, Capital Markets Correspondent Association (CAMCAN) and TAJ Bank were recognised for Capital Market Content Creation, Capital Market Reportage, and Excellence in Islamic Finance respectively.

BUA Group and CardinalStone Partners Limited were the headline sponsors for the 2022 NGX Made of Africa Awards. Other sponsors were United Bank for Africa Plc, Coronation Asset Management Limited, Bank ofIndustry, Notore Chemicals Plc, Access Holdings Plc, Zenith Bank Plc, Seplat Energy Plc, and Central Securities and Clearing System Plc.

The Securities and Exchange Commission has said that the new Capital Market Masterplan (2021 – 2025) has a projection of 50 listings of Shariah compliant products with a market capitalisation of at least N5 trillion by the year 2025

Director General, Securities and Exchange Commission (SEC), Mr. Lamido Yuguda, yesterday said the non-interest capital market (NICM) is also expected to lead to emergence of 100 retail Shariah-compliant products and more than one million direct investors in Shariah-compliant products with at least N5 trillion investment by institutional investors in Shariah compliant products.

Yuguda spoke during the opening  ceremony of a three-day capacity building workshop for local Shariah talent for non-interest capital market yesterday in Abuja.

He noted that with these new responsibilities, promoting capacity-building programmes, such as the workshop, on Shariah-compliant processes and products has become necessary for the NCIM.

He said the commission, in recognising the potentials of the non-interest capital market for economic growth, dedicated a component in its ten-year (2015-2025) Capital Market Masterplan for the speedy development of the market in the financial system.

Specifically, Yuguda said the masterplan provides clear strategic objectives for the development of the market, one of which is the “encouragement of the development of stakeholders for the market” as evidenced by the workshop.

According to him, the stride and significant achievements recorded by the masterplan is evidenced by the last ranking of Nigerian Islamic Finance in 13th place on the global Islamic Finance Development Indicator 2021, with the assets under management valued at N2.30 billion; which is higher than countries like Bangladesh and Turkey.

“As you may be aware, the major difference between conventional finance and non-interest finance is the application of Shariah principles. This simply means that non-interest financial market cannot exist without experts in Islamic commercial jurisprudence-FiqhulMu’amalat Al-Maliyya. Therefore, this workshop will help in fast-tracking the development of experts for the market. We believe that it would be a magic lamp for developing our local Sharia talent, not only for Nigerian capital market but for the Nigerian financial system in general.

“The level of activities in the non-interest capital market that we are currently experiencing in Nigeria affirms the overwhelming acceptance of NICM products by the country’s populace. This shows a strong appetite for other alternative forms of investments.  Recently, the market witnessed the entrance of institutions offering non-interest capital market services/products and the oversubscription of the FGN and corporate Sukuk, further buttresses the need for this workshop to encourage the development of Shariah experts for the market,” Yuguda said.

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He said the workshop was aimed at exposing participants who have the potential to provide Shariaha dvisory services for the Islamic finance industry, particularly the non-interest capital market’s operations as it relates to Shariah principles and rulings. It was also planned to be in two levels.

He explained that the first level is focused on the basic areas of financial market structure and operations of the capital market, Shariah principles and contracts relating to non-interest capital markets as well as Shariah issues relating to the operations and businesses of the market among others.

Yuguda, who was represented by the SEC’s Executive Commissioner Operations, Mr. Dayo Obisan, said the second level will address the operation of the Sukuk and equity markets.

He said the NICM has so much potential in the country by attracting an untapped investor base that appeared indifferent to conventional instruments, to participate in the capital market as well as the existing investors to diversify to ethical and socially responsible investments.

“We believe that developing Shariah talent through a workshop like this, is another opportunity of creating awareness for the non-interest capital market products and services which in turn will facilitate the financial inclusion drive in the Nigerian financial system.

“I am happy to note that the commission recently exposed registration rules to set a minimum standard for corporate or individuals seeking to provide shariah advisory services for non-interest capital market activities. This is to further encourage and attract the attention of qualified persons and entities to engage in the Shariah advisory function for non-interest capital market,” Yuguda said.

He expressed the confidence that the participants will benefit from the vast knowledge and experience of the facilitators, which will bring about a much-needed impact on the participants and the market in general.