Category: Equities

  • NSE wins CSR, legal awards

    The Nigerian Stock Exchange (NSE) has won two awards on corporate social responsibility and innovative legal system.

    NSE emerged the winner of the “Best Corporate Social Responsibility Initiative award (Promoting Sustainability & Reporting)” at the 9th edition of the Marketing World Award held in Ghana. The award was in recognition of the remarkable initiatives implemented by NSE to advance sustainability reporting in Nigeria. During the event, NSE’s Head of Corporate Communications, Olumide Orojimi was also named “Corporate Communications Professional of The Year”.

    Similarly, the ESQ Nigerian Legal Awards named NSE’s Legal Services Department the “Capital Market In-House Team of the Year”, for driving several innovative ideas and playing major roles in key projects of the Exchange and the Nigerian capital market at large.

    Read Also: SEC seeks partnership on capital market growth

    Head, Shared Services Division, Nigerian Stock Exchange (NSE), Mr. Bola Adeeko stated that the awards were testament to the efficiency of the NSE’s service offering and commitment to excellence.

    “It is also a testament of our commitment to creating a sustainable future through our corporate sustainability and responsibility (CSR) activities.

    These awards serve as recognition for the assiduous efforts of our employees to achieve our aspiration to provide investors and businesses with a reliable, efficient and adaptable exchange hub in Africa, to save and to access capital,” Adeeko said.

  • Cordros opens IPO for dollar mutual fund

    Taofik Salako Capital Market Editor

     

    Cordros Asset Management Limited (CAML) on Monday opened application list for the initial public offering (IPO) for its Cordros Dollar Fund, opening up new avenue for investors to hedge risks and earn stable returns.

    Cordros Dollar Fund is offering $2 million in 20,000 units at $100 each with a minimum subscription of five units or $500 and subsequent subscriptions in multiples of five units or $500. The fund will be open-ended meaning investors can continuously add new subscriptions.

    Application list opened yesterday Monday November 25, 2019 and will close on Friday, December 27, 2019. To subscribe to the Cordros Dollar Fund, investors will need an active domiciliary account and all payments must come directly from their domiciliary accounts in US dollars.

    Group Managing Director, Cordros Capital, Mr. Wale Agbeyangi said the Cordros Dollar Fund will help investors to diversify their portfolio while also helping those with US Dollar obligations to hedge against currency risk.

    According to him, the fund’s objective is to achieve capital appreciation in short to medium term for investors with US Dollar and convertible currencies.

    Read Also: Cordros launches online video contest to woo investors

    The Cordros Dollar Fund is coming at a time when speculations are surrounding the strength of the Naira and investors are looking to diversify with investments denominated in foreign currency.

    Managing Director, Cordros Asset Management Limited, Mrs. Morenike Da-Silva, explained that investors who have been discouraged by the high entry levels for US Dollar based investments will now have easier and convenient access through the Cordros Dollar Fund.

    Portfolio Manager, Cordros Asset Management Limited, Adegbolahan Aina added that Cordros Dollar Fund provides professional management and will help investors to hedge their savings from the eroding effects of inflation as the underlying assets are high-quality Eurobonds and USD money market instruments.

    He noted that having earlier launched Nigeria’s first ever Target Date Balanced Funds with Cordros Milestone Funds 2023 and 2028 in 2018 as well as the Cordros Money Market Fund in 2016, the Cordros Dollar Fund is another addition that strengthens Cordros Asset Management Limited’s position as a growth-oriented investment manager, who continuously offers investors a wide array of sound Investment solutions.

  • SEC seeks partnership on capital market growth

    By Daniel Essiet

     

    Chairman, Securities and Exchange Commission (SEC) Olufemi Lijadu has called for concerted efforts to strengthen the capital market to attract foreign investors.

    Making the appeal while addressing the 2019 Pearl Awards and Public Presentation of the 2020 Nigerian Stock Market Annual in Lagos, Lijadu said all hands must be on deck to enhance and promote professional standards in the securities and investment industry.

    He reiterated that capital market is the largest source of financing in several economies as it provides investment opportunities for investors.

    He stressed that gradual development and uptake of capital market products is vital since it will help to unlock domestic and international long-term investment and direct it to where it is needed most.

    Acting Director-General, Securties and Exchange Commission (SEC)  Ms Mary Uduk  said the commission was funding  capacity assessment to review and strengthen operations in the capital market.

    To sustain investor confidence, she said the Commission has continued to promote the E-Dividend Mandate Management System(EMMS), the Direct Cash Settlement(DCS) and the multiple subscription reconciliation for investors.

    According to her, the importance of the EMMS is to reduce to the barest minimum the incidence of unclaimed dividends.

    Read Also: SEC, BPE mull NNPC subsidiaries’ listing on stock exchange

    President, PEARL Awards, Mr. Tayo Orekoya said the awards would be restructured to accommodate other players in the capital market such as registrars, fund managers and portfolio advisers.

    During the awards night, Seplat Petroleum Development Company Plc won the Overall Highest Award.

    Other awards include conglomerates –Transnational Corporation Plc, Services- hotels and lodging, Ikeja Hotel Plc; Consumer Goods, breweries-Guinness Nigeria Plc; consumers goods, food products-Nestle Nigeria Plc; Information and Communication Technology, telecommunications-ChamsPlc; consumer goods, household products-Vitafoam Nigeria Plc and financial services, banking-Zenith Bank Plc.

    Others included financial services, insurance-AIICO Insuranc Plc; financial services, other financial institutions-Stanbic IBTC Holding Plc; industrial goods, building materials, Dangote Cement; oil and gas – Seplat Petroleum Development Company Plc; services, printing and publishing-Learn Africa Plc; financial services, mortgage-Infinity Trust Mortgage Bank Plc and healthcare-pharmaceuticals-Neimeth International.

    Winners who emerged under market excellence include earnings yield-Rak Unity Petroleum Plc; return on equity-Nestle Nigeria Plc; dividend growth-Unilever Nigeria Plc; dividend cover-Ikeja  Hotel Plc, share price appreciation-Cement Company of Northern Nigeria Plc and net asset ratio- Seplat Petroleum Development Company Plc.

    Under Special Recognition awards, the winners were corporate governance-Africa Prudential Plc; stockbroking firm of the year- Stanbic IBTC Stockbrokers Limited and issuing house of the year- Stanbic IBTC Capital Limited.

  • Wigwe: Art X Lagos project lifting local talents

    By Collins Nweze

    The Group Managing Director/CEO of Access Bank Plc,  Herbert Wigwe has said that the ‘Art X Lagos’ project has helped in harnessing and grooming local talents needed to change the African narrative in a positive manner.

    The bank chief spoke during the West-Africa’s Premier International Art Fair ‘ART X Lagos’, with theme: “More Than An Art Fair”  supported by Access Bank Plc as a Gold Sponsor.

    Wigwe lauded the Founder Art X Lagos Ms. Tokini Peterside and stressed the importance, contribution & relevance of Art X to Africa.

    He said: “Art X Lagos is establishing itself as the Premier Art Fair in Africa and not only West-Africa, because it is making a difference, speaking to inclusiveness and speaking to the beauty of all parts of Africa.”

    He further stated that Art X Lagos shows us that as Africans, we can begin to harness the very best of talent on the continent so that we can begin to change the narrative of not just Nigeria, but of Africa. The whole world must begin to focus on our continent and the quality of skills that we have.

    It is widely believed that the African art history has played a significant role in shaping the culture and history of the world. The belief that Africa is the cradle of the history of mankind is virtually unshakeable.

    The origins of African art history lie long before recorded history, preserved in the obscurity of time. Rock Art is centuries old, while shell beads fashioned for a necklace have been recovered in a cave in the furthest reach of the southern peninsula of South Africa that are 75, 000 years old.

    A lot of African art has been acquired for curious means by travelers, traders and missionaries in the century before and left the continent. Colonialists most often did not give indigenous art the merit and attention it deserved and thereby African art history has not been preserved or documented.

    The ‘Art X Lagos’ was widely described as a love letter to Africa Art. The fair was inclusive,  it was as innovative, pristine, original, modern and African with it’s the numerous exhibitors, collectors, families, children, enthusiasts, students, professors & other guests from Nigeria and across the world.

    This 2019 fair that held at the Federal Palace Hotel from the  first to third November, was the most ambitious to date, with a larger and better gallery to receive a wide array of artists from the continent and diaspora.

    The Art sector largely, is one of Nigeria’s most undervalued & underutilized value-propositions, which could be highly marketable for our national image boost and exportable for our economic recovery & growth. Art X Lagos recognizes that Nigerians really do have talent, are highly skilled and have amazing stories to tell through Art, which is one of the reasons for birthing the fair, in order to inspire, promote, give opportunities and establish emerging artists to the end that their potentialities to contribute to national growth and development are boosted.

    Read Also: Trade liberalisation: MAN projects surge in import

     

    Spotlight was on Etinosa Yvonne, self-taught Documentary Photographer won the 2019 Access Bank ART X Prize of N1.5 million cash grant, a three-month residency at Gasworks, London, in 2020, and a solo presentation at ART X Lagos in 2020.

    According to Yvonne: “In 2018, I went for my first ever ART X Lagos fair, and I was really inspired by the kind of works I saw there. Fortunately this year, I got nominated for the Access Bank Art X prize, meeting the jury members was really amazing, It made me review my practice, they made me think there’s much that I can do than what I am doing now.

    The subject matter that I’m dealing with is very personal to me, I want people to see and feel everything I felt on my journey of documenting this project, I am looking at more immersive ways of putting together an exhibition that will stir up something in people.

    The relevance of the Access Bank Art X prize would be to give visibility to the artist, with the Access Bank Art X prize, I will be able to continue researching, continue traveling and interviewing survivors of terrorism and violent conflict in Nigeria.

    This will be an opportunity for me to immerse myself in the whole art experience and see how I can basically push my project forward.”

    Attendees and enthusiasts, from Adults, to teenagers, down to children could not contain the thrill of being at the fair and expressed their excitement. During interviews at the Access Bank Art X lounge, Art Connoisseur, Patrick Koshoni said; “I’m so happy, its all fantastic new work I’m seeing, and I’m titillated!” and IBK said; “Hi, I’m so inspired and happy, it feels like something else.”

     

  • BVN subscribers to hit 100m

    The Central Bank of Nigeria (CBN), has pledged to increase the figures of bank customers enrolled on the Bank Verification Number (BVN) system from 38 million to 100million in the next five years.

    According to the CBN Update released yesterday, the apex bank said increase in BVN enrollment would address the constraint that poor identification has on the availability of credit to prospective banking customers, particularly, those in the informal sector.

     

     

    According to recent figures released by Nigeria Interbank Settlement Systems (NIBSS), over 38 million active banks accounts are currently linked with BVN and the CBN has pledged to increase the figures within the next five years through its proactive measures.

     

  • FBNQuest is Money Market Fund of the Year

    FBNQuest Asset Management has emerged winner of the Money Market Fund of the Year category at the recently concluded BusinessDay Banks & Other Financial Institution Awards (BAFI), which held in Lagos.

    The BAFI award ceremony, seeks to identify the contribution of financial institutions to the industry, across a number of areas including financial performance, sustainability and corporate governance.

    Managing Director, FBNQuest Asset Management,  Ike Onyia, said:  “In the past three years and based on our strong fundamental and quantitative research capabilities, our portfolio management team’s performance has remained consistent and our clients have benefited immensely from exposure to our solutions, including the FBN Money Market Fund”.

     

     

  • Reps debate CBN’s N1.3tr budget in camera

    By Victor Oluwasegun, Abuja

    Journalists were shut out by the Chairman, House of Representatives Committee on Banking and Currency, Hon. Victor Nwokolo on Wednesday as the Central Bank of Nigeria (CBN) defended its N1.3 trillion budget proposal  for the 2020 fiscal year.

    Before the closed door budget presentation the  representaive of the CBN Governor, Godwin Emefiele’s representative, Mr. Adamu Edward Lametek, was allowed  to give a breakdown of the 2019 budget before going into the presentation of the N1.3 trillion in the 2020 budget estimates.

    No one knew the cause of the sudden change of mind by the chairman who had earlier called for coverage of the proceedings,.

    He ordered that all the management staff, journalists and other supporting staff should vacate the venue before delving into the budget defence.

    Read Also: CBN won’t cut interest rate, says FXTM chief

     

    On Thursday last week,  one of the concerned members of the House of Representatives, Rep. Gudaji Kazure had during a press briefing queried the N1.3 trillion proposed by the CBN which he described as outrageous and alarming.

    Kazaure spoke of the need for downward review of the proosed budget in the nation’s interest, and also expressed concern for CBN’s disregard for the House resolution over the implementation of the money deposit and withdrawal charges by banks, after the House advised that the policy should be suspended.

    His words: “In 2019, budget of the CBN was N420 billion, but the same CBN brought a budget of N1.3 trillion for 2020. What are they producing? Which revenue are they generating?”.

    The lawmaker vowed to persuade the House to ask his colleagues in the appropriation committee to bring down the  budget of the CBN to N300 million.

    He said  health, education and the federal government’s N-Power social intervention programme, should benefit from the balance of one trillion naira.

     

  • NAHCo records N7.38b Q3 turnover

    Victor Odiase

     

    THE Nigerian Aviation Handling Company Plc (NAHCo aviance) has posted gross revenue of N7.38 billion for the nine – month period ended September 30, 2019.

    The company subsequently posted a profit before tax of N973.1 million for the period, N241.3 million or 32.96 per cent higher than the amount for the same period last year. Profit after tax rose by 30 per cent to N782 million in third quarter 2019 compared with the N601.31 million in third quarter 2018. Earnings per share stood at 48 kobo as at the end of the third quarter of 2019 compared to 37 kobo as earnings per share as at the end of the third quarter of 2018.

    The board appointed a new management for the company which early this year embarked on a five – year transformation plan. The company is continuing the massive upgrade of its equipment, warehouses and other facilities at the airports.

    Commenting on the results, Group Managing Director, Nigerian Aviation Handling Company Plc (NAHCo aviance) Mrs. Olatokunbo Fagbemi said she was delighted that the company was making progress on all fronts.

    “NAHCo is in a good place. Apart from being the industry leader in ground handling in West Africa, we are also providing leadership in supporting our partners, the cargo agents, in the important skills of packaging for export,” Fagbemi said.

    She noted that in the period that the new management took over, the company had increased the capacity of its export warehouse and is currently renovating its import warehouse.

    She said NAHCo is also taking advantage of opportunities emanating from Federal Government’s closure of the land borders as it is partnering stakeholders on proper packaging for their products for exports.

     

  • Stockbrokers seek competitive capital market

    THE annual conference of the Chartered Institute of Stockbrokers (CIS) this year will explore ways and opportunities to enhance the competitiveness of the Nigerian capital market as the globally preferred destination for investments.

    Addressing capital market correspondents on the 2019 Stockbrokers’ Annual Conference at the weekend, Chairman, Planning Committee, Ms Abiola Adekoya explained that the conference theme: Boosting Capital Market Competitiveness in a Challenging Macro Environment was chosen to articulate policy measures that can reposition the capital market to play its pivotal role as a platform for mobilization of funds from surplus economic units to deficit one.

    She pointed out that critical issues such as innovation and growth, fintech, attracting talents to securities industry and nexus between agriculture and the capital market shall form the fulcrum of plenary sessions at the conference, scheduled for Thursday, November 21 to Friday, November 22, 2019 at Oriental Hotel, Victoria Island, Lagos.

    According to her, with the integrated and digital-driven global economy of today, the barriers to competition are gradually coming down, making it necessary for stockbroking firms with exposure to the domestic market to innovate to retain and attract customers.

    “Given the challenging domestic macroeconomic environment and liberal immigration policies in advanced economies with aging populations, retaining talent in the securities industry has been difficult, with negative implications for performance,” Adekoya said.

    First Vice President, Chartered Institute of Stockbrokers (CIS), Mr Tunde Amolegbe explained the significance of discussing fintech against the background of the institute’s efforts at ensuring the success of government’s policy on financial inclusion.

    He noted that adoption of fintech in capital market transactions will lead to reduced costs and improved efficiency, thus encouraging more participation in the stock market.

    He added that the conference would bring about robust ideas on how to reposition the market in view of the unfolding developments in the global economy.

    Managing Director, Stanbic IBTC Nominees, Mr Akeem Oyewale said the conference would spring up conversation around strategies to make the securities industry more attractive to the young professionals and youth across the board.

    In her contributions, Managing Director, FBN Quest Securities, Mrs Fiona Ahimie described the conference as an opportunity to deepen participants’ understanding of investment opportunities in the capital market and how to take advantage.

    Managing Director, Afrinvest Securities, Mr Ayodeji Ebo added that the conference would address a wide range of economic and political issues, especially, how stockbrokers can take advantage of the capital market to boost their earnings.

    Managing Director, Morgan Capital, Mr Muyiwa Adeyemi stressed that the broad objective of this year’s conference was to create a platform where contemporary development issues would be articulated for enhanced competitiveness of the capital market.

  • Equities rally N261b in four days

    NIGERIA equities recorded their biggest rally in two months last week as increased bargain-hunting for quoted shares added N261 billion to market value of quoted companies.

    Average return stood at 2.04 per cent last week, driven mainly by scurry for banking shares, which posted average return of 6.77 per cent. The negative average year-to-date return improved to -14.57 per cent.

    With nearly four advancers to every decliner, aggregate market value of all quoted equities crossed the N13 trillion mark to N13.071 trillion at the weekend compared with its week’s opening value of N12.810 trillion. The All Share Index (ASI)- the common value-based index that tracks share prices at the Nigerian Stock Exchange (NSE) also rose from its opening index of 26,314.49 points to close weekend at 26,851.68 points.

    The positive performance came on the heels of Central of Central Bank of Nigeria (CBN)’s recent policies on fixed income securities and increasing decline in yields.

    Analysts at Cordros Securities said the limited outlet for investments due to the CBN’s recent policy directives was a force behind the market.

    “We expect that the market might continue to benefit over the short-term especially in the face of lower yields in the fixed income market,” Cordros Securities stated.

    Analysts at Cowry Asset Management Limited noted that with the yield on fixed income investments becoming less attractive, more funds will flow into equities market.

    Total turnover during the four-day trading session stood at 2.084 billion shares worth N33.867 billion in 21,849 deals last week compared with a total of 2.063 billion shares valued at N18.431 billion traded in 16,778 deals two weeks ago.

    The financial services sector continued to lead activity chart with a turnover of 1.705 billion shares valued at N21.555 billion in 15,395 deals; representing 81.84 per cent and 63.65 per cent of the total equity turnover volume and value respectively. The consumer goods sector followed with 188.870 million shares worth N7.445 billion in 1,989 deals while the conglomerate sector placed third with a turnover of 82.675 million shares worth N128.662 million in 691 deals.

    Banking stocks dominated the activities chart. The trio of Zenith Bank Plc, Access Bank Plc and United Bank for Africa Plc were the three most active stocks, accounting for 1.210 billion shares worth N17.048 billion in 7,031 deals, representing 58.09 per cent and 50.34 per cent of the total equity turnover volume and value respectively.

    Most sectoral indices closed on the upside. The NSE Banking Index led with average gain of 6.77 per cent. The NSE Industrial Goods Index followed with a gain of 3.24 per cent. The NSE Consumer Goods Index appreciated by 2.55 per cent. However, the NSE Oil & Gas Index declined by 1.76 per cent while the NSE Insurance Index slipped by 0.56 per cent.

    There were 39 gainers against 11 losers. Wema Bank led the gainers, in percentage terms, with a gain of 28.81 per cent to close at 76 kobo per share. Cornerstone Insurance followed with a gain of 26.53 per cent to close at 62 kobo while Guinness Nigeria rose by 22.75 per cent to close at N28.60 per share.

    On the negative side, Total Nigeria led the losers with a drop of 9.98 per cent to close at N110.90 per share. Learn Africa followed with a loss of 9.40 per cent to close at N1.06 while Unilever Nigeria declined by 5.61 per cent to close at N18.50, per share.