Category: Equities

By Taofik Salako, Deputy Business Editor

Nigerian equities reopened yesterday with a streak of profit-taking as investors sought to monetise their capital gains.

With investors opening up market orders to close their deals, the market closed with average decline of 1.66 per cent, equivalent to net capital depreciation of N340 billion.

The All Share Index (ASI)- the common value-based index that tracks all share prices at the Nigerian Exchange (NGX)  dropped by 648.99 absolute points or 1.66 per cent to close at 38,507.29 points as against its opening index of 39,156.28 points.

Aggregate market value of all quoted equities also dropped from its opening value of N20.409 trillion to close at N20.069 trillion.

With 26 decliners to 19 advancers, the negative overall market situation was driven by widespread selloffs due to profit-taking, especially in lager and mid-cap stocks such as Airtel Africa, Okomu Oil Palm, Presco, Stanbic IBTC Holdings and Guaranty Trust Bank.

Airtel Africa  led the losers’ chart by 10 per cent to close at N753.30. Okomu Oil Palm followed with a decline of 9.44 per cent to close at N105.50. Cornerstone Insurance shed 9.09 per cent to close at 50 kobo per share. Learn Africa lost eight per cent to close at 92 kobo while Livestock Feeds shed 4.74 per cent to close at N1.81 per share.

On the positive side, CWG Plc recorded the highest price gain of 9.73 per cent  to close at N1.24 per share. Berger Paints Nigeria followed with a gain 6.72 per cent to close at N7.15. Red Star Express rose by 4.19 per cent to close at N3.23, per share. NEM Insurance rose by 3.89 per cent to close at N1.87 while Wapic Insurance gained 3.64 per cent to close at 57 kobo per share.

Total turnover rose by 2.9 per cent to 297.346 million shares valued at N3.650 billion in 4,402 deals. Access Bank topped the activity chart with 43.139 million shares valued at N359.541 million. Sterling Bank followed with 33.208 million shares worth N52.131 million. Zenith Bank traded 25.903 million shares valued at N602.184 million. UAC of Nigeria (UACN) traded 22.925 million shares valued at N216.792 million while Union Homes Real Estate Investment Trust transacted 19.013 million shares worth N695.876 million.

Analysts at United Capital expected the equities market to record some negative performance as investors book some of their profits off the market.

“In the next trading session, we expect the market to sustain its bearish performance as investors take profit,” Afrinvest Securities stated.

By Taofik Salako, Deputy Business Editor

The Nigerian Exchange (NGX) Limited has delisted Evans Medical Plc, Nigerian-German Chemical Plc, Roads Nigeria Plc and Unic Diversified Holdings Plc over poor corporate governance and failure to comply with extant rules at the stock market.

The four companies were removed from the daily official list of the NGX with effect from Monday, June 14, 2021. The companies were delisted under the compulsory delisting window of the Exchange.

According to the Exchange, the delisting of the companies was approved by the board of NGX Regulation Limited (NGX RegCo) on Wednesday, April 21, 2021 in line with the regulatory delisting process of NGX and endorsed by the chief executive officer of NGX as a result of persistent non-compliance with the post listing rules of the Exchange.

The companies had been placed under delisting watch-list due to recurring failures to comply with international best practices and corporate governance rules at the market.

The delisting watch-list of the Exchange consists of companies with serious infractions that require considerable organisational changes to comply with the extant rules at the market.

The NGX operates two delisting windows-voluntary and compulsory delisting. Under voluntary delisting, quoted companies can opt to delist their shares from the Exchange due to various reasons including mergers and acquisitions, restructuring and private interests subject to fulfilment of the delisting rules and requirements.

Under the compulsory delisting window, the NGX may opt to delist companies that have failed repeatedly to meet extant rules and best practices in line with the Exchange’s commitment to protect investors and ensure that listed companies comply with global best practices.

Compulsory delisting is usually done pursuant to clause 15 of the General Undertaking, Appendix III of the Rule Book of The Exchange, which deals with the post-listing requirements and sanctions.

The delisting process of the companies had started more than three years ago with initial notice and demand for compliance with extant rules, especially relating to timely submission of financial statements and periodic reports.

The authorities at the Exchange had continuously engaged the companies with the hopes that they would regularise their operations but they had failed to make any convincing move to comply with listing requirements.

By Taofik Salako, Deputy Group Business Editor

Nigerian equities continued their rally for the third consecutive trading session as increased bargain-hunting added N20 billion to market capitalisation.

Benchmark indices at the Nigerian Exchange (NGX) showed average return of 0.10 per cent, equivalent to net capital appreciation of N20 billion.

The All Share Index (ASI)- valued-based common index that tracks all share prices, rose by 39.15 points or 0.10 per cent to close at 39,210.10 points as against its opening index of 39,170.95 points. Aggregate market capitalisation of all quoted equities rose simultaneously from N20.417 trillion to close at N20.437 trillion.

With 20 advancers to 15 decliners, sectoral indices showed mixed performance. The NGX Banking Index rose by 0.5 per cent. NGX Consumer Goods Index appreciated by 0.4 per cent while the NGX Oil and Gas Index closed flat. On the negative side, the NGX Insurance Index declined by  1.0 per cent while the NGX Industrial Goods Index dipped by 0.01 per cent.

The rally was driven by price appreciation in large and medium capitalised stocks such as Unilever Nigeria, PZ Cussons Nigeria, Vitafoam Nigeria, Dangote Sugar Refinery and May and Baker Nigeria.

Linkage Assurance recorded the highest price gain of 9.09 per cent to close at 60 kobo. PZ Cussons Nigeria followed with a gain 7.46 per cent to close at N6.00 per share. May and Baker Nigeria and Chams rose by five per cent each to close at N4.20 and 21 kobo  respectively while Unilever Nigeria   gained 4.96 per cent to close at N12.70 per share.

On the negative side, Computer Warehouse Group led the losers’ chart by 9.60 per cent to close at N1.13, per share. Consolidated Hallmark Insurance followed with a decline of 8.97 per cent to close at 71 kobo. Associated Bus Company lost 7.50 per cent to close at 37 kobo, per share. Wapic Insurance lost 6.78 per cent to close at 55 kobo while Mutual Benefit Assurance shed 6.52 per cent each to close at 43 kobo, per share.

The total volume of trades decreased by 12.8 per cent to 158.366 million units, valued at N2.236 billion, and exchanged in 3,330 deals. Transactions in the shares of Zenith Bank topped the activity chart with 27.324 million shares valued at N629.221 million. Sterling Bank followed with 22.023 million shares worth N35.087 million. United Bank for Africa (UBA) traded 21.687 million shares valued at N154.235 million. Transnational Corporation of Nigeria (Transcorp) traded 9.154 million shares valued at N8.154 million while Chams  transacted 8.320 million shares worth N1.679 million.

“In the last trading session of the week, we suspect that profit taking may dominate the local bourse,” Afrinvest Securities stated

The stage is set for the 9th Annual Nigerian Investors Conference organized by the Association of Asset Custodians of Nigeria (AACN), the umbrella body for Nigerian custodian banks, with experts and key players in the economy and capital market penciled to headline the event.

Restoring a new normal, against the disruption inflicted by the COVID-19 pandemic, will be the fulcrum of the two-day capital-market focused conference, which holds virtually, on Tuesday, 15th and Wednesday, 16th of June 2021. It has the theme, ‘Nigerian Capital Market: The Road To New Normal’.

Among headliners to participate at the event include representatives of the Federal Ministry of Finance, Central Bank of Nigeria (CBN), Securities and Exchange Commission (SEC), Nigeria Exchange Group (NGX), and CSCS Plc. Others are Mr. Mobolaji Onibudo, Founder and CEO of Xendbit-Digital Transaction Services Ltd; renowned Africa Economist, David Cowan; Mr. Bola Ajomale, MD/CEO of NASD OTC Plc; and Igboa Abumere, CISO/DPO, Stanbic IBTC Bank Plc.

President, Association of Asset Custodians of Nigeria (AACN), Mr. Biodun Adebimpe said the choice of the topics was to reflect on the new volatility which the COVID 19 pandemic has imposed on the global economy, as well as specific markets, making it imperative to embrace any opportunity to unlock market reforms and economic activities that ensure a quick return to stability and normalcy.

She noted that it has been such a turbulent journey which has reflected in the ups and downs of share prices and asset classes, adding that finding ways of mitigating future shocks is a task before all stakeholders in the capital market.

Among topics to be dissected at the conference include ‘Nigeria Macroeconomics update’, ‘Securities service offering in the wake of a global pandemic’, ‘Key highlights of CAMA Act 2020 & Finance Acts 2020 and potential impact on portfolio investments’, and ‘Cybersecurity’.

Mr. Deoye Oduntan, AACN’s Publicity Secretary, reiterated the commitment of the Association to promoting portfolio investments in Nigeria, especially at this difficult time that the country is trying to recover from the devastating global disruption inflicted by the COVID-19 pandemic.

He assured that the AACN would continue to explore ways of supporting the growth and development of the Nigerian financial market by collaborating with relevant stakeholders as well as the Federal Government. He urged participants to register via

The Federal Government of Nigeria is offering annual interest of almost 10 per cent on its latest issuance of the monthly Federal Government of Nigeria Savings Bond (FGNSB).

Application list for the two tranches of bonds for June 2021 opened on Monday, June 7, 2021 and will close on Friday, June 11, 2021. The settlement date for the issuance, which becomes the effective calculation date is Wednesday, June 16, 2021.

The government is offering a 2-Year FGN Savings Bond due June 16, 2023 at a coupon of 8.889 per cent per annum. It is also simultaneously offering a 3-Year FGN Savings Bond due June 16, 2024 at coupon of 9.889 per cent per annum. The June 2021 offer is the 48th tranche of the savings bond, introduced in 2017.

Usually, the minimum subscription to the bonds, offered at N1,000 per unit, is N5,000 or five units and in multiples of N1,000 thereafter, subject to a maximum subscription of N50 million.

The coupon payment dates for the bonds, which pay interest rate quarterly September 16, December 16, March 16 and June 16 respectively.

The FGNSB was introduced in 2017 as a mass instrument for nationwide mobilization of savings and investments. Minimum subscription to the FGNSB is usually N5,000 while the bond pays coupon or interest rate on a quarterly basis.

GTI Securities Limited, one of the authorised distribution agents for the FGNSB, noted that the savings bonds help to deepen national savings culture while providing opportunity to all Nigerians irrespective of income level to contribute to and benefit from national development.

According to the stockbroking firm, FGNSB enables all Nigerians opportunity to participate in and benefit from the favourable returns available in the capital market.

GTI Securities noted that the savings bonds are acceptable as collateral for loans by banks and can be sold for cash in the secondary market before maturity.

The bonds are usually listed on the Nigeria Stock Exchange for trading, thus providing liquidity for investors who want to exit before maturity.

Savings bonds are good for savings towards retirement, marriage, school fees and house projects among other targets while assuring on its safety as the bonds are backed by the full faith and credit of the Federal Government of Nigeria.

By Taofik Salako, Deputy Business Editor

Nigerian equities rode on the back of renewed bargain-hunting to a significant rebound yesterday, rounding up N102 billion in net capital gains.

Benchmark indices at the Nigerian Exchange (NGX) Limited showed average return of 0.50 per cent yesterday, representing net capital appreciation of N102 billion.

The All Share Index (ASI)- a value-based index that tracks all share prices at the Exchange, rose from its opening index of 38,686.40 points to close at 38,881.70 points.

Aggregate market value of all quoted equities also increased from its opening value of N20.164 trillion to close at N20.266 trillion.

Most sectoral indices closed positive with the NGX Industrial Goods Index leading with 1.1 per cent. The NGX Consumer Goods Index rose by 0.6 per cent while the NGX Oil and Gas Index inched up by 0.1 per cent. On the negative side, the NGX Insurance Index declined by 1.6 per cent while the NGX Banking Index slipped by 0.1 per cent.

With 15 advancers to 17 decliners, the positive overall market position was driven by gains recorded by large and medium stocks such as Okomu Oil, Dangote Cement, Flour Mills of Nigeria, Dangote Sugar Refinery and Unilever Nigeria.

Okomu Oil recorded the highest price gain of 10 per cent to close at N106.15, per share. Learn Africa followed with a gain nine per cent to close at N1.09. Champion Breweries rose by 4.71 per cent to close at N2.00, per share. Unilever Nigeria rose by 3.86 per cent to close at N12.10 while Cornerstone Insurance appreciated by 3.57 per cent to close at 58 kobo per share.

On the other hand, Computer Warehouse Group led the losers’ list by 9.42 per cent to close at N1.25. Regency Alliance Insurance followed with a decline of 8.16 per cent to close at 45 kobo, per share. FTN Cocoa Processors and Veritas Kapital Assurance shed 7.69 per cent each to close at 36 kobo and 24 kobo  while Caverton Offshore Support Group depreciated by 5.26 per cent to close at N1.80 per share.

The total volume of trades increased by 3.7 per cent to 218.515 million units, valued at N1.590 billion, and exchanged in 3,630 deals. Transactions in the shares of Courteville Business Solutions topped the activity chart with 35.816 million shares valued at N7.251 million. Fidelity Bank followed with 26.626 million shares worth N60.165 million. Zenith Bank traded 15.251 million shares valued at N349.318 million. AXA Mansard Insurance traded 13.868 million shares valued at N11.951 million, while Veritas Kapital Assurance transacted 12.823 million shares worth N3.358 million.

“In the coming trading session, we anticipate the domestic bourse would extend its positive performance driven by bargain hunting,” Afrinvest Securities stated

By Taofik Salako, Deputy Business Editor

The Lagos State Chapter of Nigerian Association of Quantity Surveyors (NIQS) has commended  the products of Vitapur Nigeria Limited for their innovation and competitiveness.

Members of NIQS have requested for a technical visit to Vitapur to have more knowledge of how the company leverages  the environment to manufacture its array of products.

Vitapur, a subsidiary of Vitafoam Nigeria Plc, was granted products exhibition at the quarterly meeting of  NIQS where the company’s General Manager, Mr Yemi Mofikoya showcased its products and explained that they were manufactured in Nigeria.

“Vitapur Nigeria limited is subsidiary of Vitafoam Nigeria  Plc. We are into manufacturing of rigid polyurethane foam insulation products; these products are used for roof, walls, floor and pipe insulation.

Vitapur is the foremost manufacturer of insulation products in the country with installed production capacity of 1,400sqm/day and a new to-be inaugurated production line of 1050sqm/day, making a total installed capacity of 2,450sqm/day,” Mofikoya said.

The Chairman, NIQS, Mr Ayodele Alao, expressed his members’ joy at Vitapur’s products, especially, as they are manufactured locally.

“We are delighted to see your products. We commend Vitapur for manufacturing all its products in Nigeria. Our members shall arrange a technical visit to your office,” said Alao.

Some of the products showcased to the quantity surveyors at the meeting were sandwich panels, pre-insulated roofing sheet, polyethylene boards, polyrods, EPE duct pipes, polyurethane half-shell pipe section, PU Boards and spray foam application. Sandwich panels are dry walls which comes in different variants; they can be used for partitions, coldroom, freezers, equipment shelter, drop temp ceilings, modular cabins, Prefabs etc

Pre-insulated roofing sheet are aluminum sheets which are insulated with rigid polyurethane foam in the factory.

Polyrods are EPE tubes, which are used for expansion joints. EPE  duct pipes are used for air conditioner pipe lagging.

PU Boards are polyurethane boards used for walls, roofs and floor insulation, they come in standard size of 1200 x 2400mm.

Spray polyurethane foam application is done in-situ. Some previous projects which are Landmark event centre, Shoprite, SPAR, Osun schools, Rite foods, Reckitt benkiser, Seven-up, Promasidor, Friesland Campina, Honeywell, Chevron, Government College Ibadan, and Guinness were also showcased to further enlighten the quantity surveyors

By Taofik Salako, Deputy Business Editor

Polaris Bank has restated that its newly-launched digital banking platform, VULTe, is a quick self-service innovation aimed at delivering greater value and benefits to existing and new customers of the Bank.

The Chief Digital Officer (CDO) of Polaris Bank, Dele Adeyinka, while highlighting the unique features and benefits of VULTe, said: “VULTe is a convenient, easy and quick self-service digital solution, which allows users (new and existing) access to a range of banking services hard to get elsewhere.

“The services include account opening and Wallet (NGN and USD), airtime and data Top-up; fund account; funds transfer; bills payment; pay day loan; lifestyle and events (Discover); Automated Teller Machine (ATM) and Branch/Agent locator.

Others are viewing of transactions history, generation of bank statements, profile settings like hide/show balance, hide/show accounts, forgot user ID/password, reset PIN etcetera, and banking services such as limit increase, request card/cheque book, block account/card, etc.

Adeyinka said: “VULTe is built as a platform where value providers and value consumers align with payment as a fundamental medium of exchange.”

VULTe, the CDO added, “is a new, more stable and robust platform that offers higher availability and transaction success rate for users, and is a fully homegrown digital solution developed internally by Polaris Bank’s Digital Banking and Information Technology Teams.

“It is Omni-channel; it is accessible with same credentials and consistent user experience on both web and mobile platforms. It is more flexible and scalable, and guarantees better user experience because it offers seamless onboarding and usage. It is 100 per cent self-service, hence customers do not have to visit any branch of Polaris Bank before they can onboard unto the platform – either to register – or perform an account opening task. VULTe is the go-to for those that require instant access to loans,’’ the CDO stated.

Speaking further, Adeyinka said other exciting offerings of VULTe include; a customer reward program, which offers a 30-day free funds transfers for new users and double airtime bonus.

“It is our desire that VULTe users become passionate users and make VULTe their first choice for fund transfers. In order to drive that behaviour, new users would be granted 30 days free transfers as welcome package on the platform for them to enjoy the seamless transactions on VULTe at no cost. Also, customers get double airtime bonus daily on their 833rd airtime,’’ he enthused.

VULTe by Polaris Bank launched on May 18, is a customer self-service innovation that puts the Bank in the hands of customers 24/7, and enabling them to have total control.

Polaris Bank prides itself in delivering exceptional customer experience, leveraging best-in-class/state-of-the-art Information and Communication Technology. By focusing on ICT solutions across multiple service delivery channels (mobile banking, ATMs, POS and online platforms), Polaris Bank maintains a pivotal role in the Nigerian banking industry, providing customers with simple, convenient and secured banking services.

By Taofik Salako, Deputy Business Editor

The momentum of activities at the Nigerian equities market increased considerably as investors staked N2.63 billion amid new month’s profit-taking transactions.

Total turnover at the Nigerian Exchange (NGX) Limited rose by 39.4 per cent to 274.852 million shares valued at N2.63 billion in 4,159 deals. Financial services stocks were the main drivers of activities at the market.

United Capital was the most active stock with a turnover of 23.974 million shares valued at N143.661 million. Veritas Kapital Assurance followed with 23.117 million shares worth N4.623 million. Eterna traded 21.575 million shares valued at N163.979 million. Zenith Bank recorded a turnover of 20.475 million shares valued at N470.702 million while Transnational Corporation of Nigeria (Transcorp) traded 16.486 million shares worth N14.643 million.

While there were more gainers that losers, profit-taking transactions in large-cap stocks, especially in the oil and gas sector, dragged the overall market capitalisation down by N13 billion.

The All Share Index (ASI) – a value-based common index that tracks all quoted equities at the NGX, dropped by 23.51 points or 0.06 per cent to close at 38,414.37 points. Aggregate market capitalisation of all quoted equities declined by N13 billion to close at N20.022 trillion.

Sectoral indices were generally negative. The NGX Oil and Gas Index declined by 0.9 per cent. The NGX Consumer Goods Index dropped by 0.3 per cent while the NGX Banking Index and NGX Industrial Goods Index dipped by 0.1 per cent each. On the positive side, the NGX Insurance Index appreciated by 1.5 per cent.

The downtrend was driven by price depreciation in mid and large-cap stocks including Seplat Petroleum Development Company, Africa Prudential, United Capital, Champion Breweries and Unilever Nigeria.

Market analysts attributed the bearish performance to investors’ profit-taking sentiment in recently appreciated blue-chip stocks.

“In the next trading session, we expect market performance to remain tepid, due to absence of positive drivers,” Afrinvest Securities stated.

Morison Industries recorded the highest price gain of 9.57 per cent to close at N1.03, per share. Wapic Insurance followed with a gain 9.43 per cent to close at 58 kobo, while University Press rose by 9.40 per cent to close at N1.28, per share.

Consolidated Hallmark Insurance rose by 9.09 per cent to close at 72 kobo, while Regency Alliance Insurance appreciated by 8.89 per cent to close at 49 kobo, per share. On the other hand, Champion Breweries led the losers’ chart by 9.91 per cent to close at N1.91, per share. John Holt followed with a decline of 7.94 per cent to close at 58 kobo, while Africa Prudential shed 7.26 per cent to close at N5.75,  per share.

Honeywell Flour Mill shed 6.61 per cent to close at N1.13, while Chams depreciated by 4.76 per cent to close at 20 kobo, per share.

The World Investor Week (WIW) being organised by the International Organisation of Securities Commissions (IOSCO) will focus on investor education and protection in post-COVID-19 pandemic era.

IOSCO’s membership regulates more than 95 per cent of the world’s securities markets in some 130 jurisdictions. Nigeria is a signatory and member of the board of IOSCO.

It holds from October 4 to 10, 2021, however, each market can choose any other week of October or November to promote financial and investor education, considering the conditions resulting from the COVID-19 pandemic.

IOSCO, the global body of securities market regulators, organises the WIW, a week-long global campaign, to raise awareness of the importance of investor education and protection and to highlight the various initiatives of securities regulators in these two critical areas.

The key messages of the IOSCO WIW campaign will be based on two themes of sustainable finance and frauds and scams prevention. These messages complement those of previous IOSCO WIW editions, such as online investing, initial coin offerings, the basics of investing, and digital learning and online education.

In a statement, IOSCO noted that the WIW campaign continues to gain support among a growing number of jurisdictions, stakeholders and major international organisations.

“In last year’s IOSCO WIW, participating jurisdictions undertook a range of mostly virtual activities, adapting and delivering them in exceptionally challenging circumstances. This dedication underscores the relevance and top priority that WIW participants give to financial education and investor protection,” IOSCO stated.

Chair, IOSCO Board and Chief Executive Officer, Hong Kong Securities and Futures Commission, Ashley Alder, said the yearly global initiative has disseminated key investor protection messages worldwide, particularly when a growing number of retail investors are participating in securities markets.

“Despite the pandemic, the IOSCO WIW´s educational initiatives continue to play a critical role in fostering confidence in the markets and protecting retail investors,” Alder said.