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Tag: Afrinvest

  • NSE, Afrinvest launch new equity indices

    The Nigerian Stock Exchange (NSE) and Afrinvest Securities Limited have launched two factor indices to provide investors with additional benchmarks to track portfolio performance.

    NSE-Afrinvest Banking Value Index (NSE-Afr BVI) and NSE-Afrinvest High Dividend Yield Index (NSE-Afr HDYI) were launched on Monday.

    NSE-Afr BVI and NSE-Afr HDYI were designed in response to requests for applicable benchmarks for measuring value in banking stocks and high dividend stocks listed on the Exchange. They will serve as tools for investment managers and corporate treasuries seeking appropriate benchmarks to evaluate the performance of their portfolios to a segment of the banking sector or high dividend orientation as applicable. The indices can also be used as the performance target in index-replicating financial products such as Exchange Traded Funds and derivatives.

    Chief Executive Officer, Nigerian Stock Exchange (NSE), Mr. Oscar Onyema stated that the two new indices were due to rising demand for financial products that adequately meet the needs of market participants.

    He said the indices consider the fundamentals of underlying securities and commended Afrinvest for its product innovation and for leveraging the Exchange’s index calculation and management expertise.

    “The Exchange is committed to driving sustainability of our marketplace and supporting investable product creation endeavours by stakeholders to enhance the depth of the market. We will continue to welcome innovative solutions to identifiable gaps in the capital market,” Onyema said.

    Group Managing Director, Afrinvest West Africa, Mr. Ike Chioke  said the new will serve as a veritable proponent for more forward-thinking initiatives meeting market needs.

    According to him, on the back of these indices, investors will now enjoy the benefits of proxies that seek out dividend-paying stocks and value-oriented banking stocks listed in Nigeria.

    The NSE-Afr BVI and the NSE-Afr HDYI as with all other NSE indices will align with the NSE’s Index committee’s governance standards.

     

  • Afrinvest 2017 Banking Sector Report launched

    Afrinvest (West Africa) Limited launched the 2017 edition of the annual Banking Sector Report at the London Stock Exchange (LSE), heralding the call that Nigeria has reopened for business.

    The launch of the report was the anchor event of the fourth Nigeria Capital Markets and Banking Forum hosted by the LSE in collaboration with the Nigerian Stock Exchange (NSE) and in partnership with Afrinvest.

    According to Group Managing Director, Afrinvest, Ike Chioke this is the right time for foreign investors to re-engage with the Nigerian economy. He elucidated the stable macroeconomic environment that now exists in Nigeria, and the extensive reforms in diverse industries that continue to create a favourable environment for long term investments.

    In his words, “We stand on the side of optimism that the glass is half full. With a population of 180 million people growing at 2.8 per cent and indicators that show positive Gross Domestic Product growth, certainly, the Nigerian economy is one to watch. This forum, therefore, comes at a topical moment, and we are proud to lend our voice to the international community that Nigeria is open for business. This is the time to come back.”

    “We have already seen strong reforms in the agriculture, power and oil & gas sectors. In addition, there have been commendable efforts to improve the ease of doing business in Nigeria, including the introduction of Visa on Arrival.”

    We are, therefore, looking forward to building on the foundation of the stable macroeconomic environment and these reforms to develop the hard infrastructure that will culminate in extensive industrialization.”

    Special Guest of Honour, Godwin Emefiele, Governor, Central Bank of Nigeria expressed his delight over Afrinvest’s flagship report saying, “I would like to thank the Board and Management of Afrinvest for this incisive report that so clearly analyses Nigeria’s position, and does an excellent job of presenting Nigeria in its best light.”

  • Afrinvest to launch banking sector report

    Afrinvest (West Africa) Limited will present the 2017 edition of its Annual Nigerian Banking Sector Report at the London Stock Exchange (LSE) on October 27.

    The presentation is scheduled as the anchor event of the Nigeria Banking & Investment Forum: Capital Markets Partnership, to be hosted by the LSE in collaboration with the Nigerian Stock Exchange and Afrinvest. Central Bank of Nigeria (CBN) governor,  Godwin Emefiele, has been confirmed as the Special Guest of Honour.

    Afrinvest Group Managing Director, Ike Chioke, said this year’s report entitled: “Nigeria Reopens for Business”, is timely and instructive, as it is being launched at an important phase in the country’s economic resurgence, following the recent exit from a four-quarter long recession”.

    “We are proud to launch the 2017 Nigerian Banking Sector Report before a host of international economic and financial market experts in London on the back of the nation’s recovery from economic recession, and we are confident that it would further enhance appreciation of Nigeria’s financial services sector.

    “The report presents an optimistic outlook on the economy due largely to the positive performance of the banking sector. It offers critical insight on how recent gains in market performance can be consolidated to boost investor confidence and ensure sustained growth, and what possible threats can derail current positive trends,”he said.

    Co-Head, Emerging Markets, London Stock Exchange Group, Ibukun Adebayo, said: “Our desire is to innovate with Nigeria, and we are keen to explore opportunities for London’s global investment community in Nigerian markets.

    “The Nigeria Banking & Investment Forum: Capital Markets Partnership provides a unique platform to highlight the competitive landscape that exists, and show critical international investors, regulators and stakeholders where real value can be found in frontier capital markets.”

    The Afrinvest Annual Nigerian Banking Sector Report, in its 12th edition, has come to be recognised as the leading and most incisive report on Nigeria’s banking industry, and a valuable reference for local and international investors in the Nigerian economy.

    Afrinvest (West Africa) Limited is a wealth advisory firm involved in investment banking, securities trading, asset management and investment research with a focus on West Africa.

  • Afrinvest to launch 2016 Banking Sector Report

    Afrinvest (West Africa) Limited, is set to unveil the 2016 edition of its annual Nigerian Banking Sector Report on Wednesday, 21st September at the Shell Hall, Muson Centre, Onikan, Lagos.

    Its Managing Director, Ike Chioke, revealed that this year’s report, which is the 11th edition since its inception in 2006, is titled: “Searching for Investor Confidence”.

    According to him,“the 2016 Banking Sector Report chronicles developments within the global and domestic economy in relation to monetary and fiscal policy responses to shocks while also contextualising the impact of policy decisions on domestic macro-economic variables”.

    “Afrinvest Research is of the view that although some appropriate steps have been taken in recent months, the market is yet to respond positively, evidencing the lack of investors’ confidence without which neither the market nor the economy can be rebooted,” he said.

    As part of the launch, Afrinvest has lined up a panel of distinguished economists and bankers, who will share expert views and opinions about what needs to be done in the face of these challenges in order for Nigeria to regain investors’ confidence and put its economy back on the path of growth and prosperity.

    Among them are former Deputy Governor, Central Bank of Nigeria (CBN), Prof. Kingsley Moghalu; Senior Fellow, Lagos Business School and Member, Monetary Policy Committee of the CBN, Doyin Salami; Group MD/CEO, Access Bank Plc, Herbert Wigwe; CEO, Economic Associates, Ayo Teriba; Regional Head of Economics, Standard Chartered Bank, Razia Khan; and Chief Financial Officer, Sterling Bank Plc, Sulaiman Abubakar.

    Afrinvest (West Africa) Limited is a wealth advisory firm involved in investment banking, securities trading, asset management and investment research with a focus on West Africa. The Nigerian Banking Sector Report has come to be recognised as the leading and most incisive report on Nigeria’s banking industry, and a valuable reference for local and international investors in the Nigerian economy.

  • Afrinvest appoints new chairman, director

    Afrinvest appoints new chairman, director

    Afrinvest (West Africa) Limited, has announced the appointment of Dr. Fidelis Nde-Che as the new Chairman of its Board of Directors while Dr. Abdulrahman Sambo has been named a director of the company.

    In a statement,  its Group Managing Director/CEO Ike Chioke, said, “we are pleased to announce that Dr. Fidelis Nde-Che has been appointed Chairman of the Afrinvest Board of Directors, following the resignation of our erstwhile Chairman, Mr. Godwin Obaseki.

    “Obaseki, who founded the company in 1995 as Securities Transactions & Trust Company  before it was renamed Afrinvest in 2006, resigned his position on the Afrinvest board to pursue his governorship ambition in Edo State. We, at Afrinvest, are truly grateful for the visionary leadership he provided to the firm for over 20 years, and we wish him the very best in his future endeavour.”

    Chioke noted, “Dr. Nde-Che and Dr. Sambo bring with them a wealth of experience to the Afrinvest board. Their sterling reputation and invaluable input on the board will help ensure that Afrinvest maintains its tradition of integrity and service excellence, and significantly boost output in all areas of the company’s business to the benefit of our esteemed clients.”

    Dr. Fidelis Ndeh-Che is the Founder and Managing Partner of Quanteq Technology Services, Ltd, an Information Technology Consulting and Systems Integration firm based in Abuja. He graduated from the City University London, UK with a first class honors degree in Electrical, Electronic and Information Engineering in 1992 and went on to obtain his PhD in the same area at the same university in 1996.

  • Afrinvest picks Conoil, Oando, UBA, GTB, 10 others as top stocks for 2016

    Investors looking for above average gains and a reflective stock portfolio to beat the downtrend in 2016 should concentrate on 14 stocks across five key sectors of the economy, according to the 2016 stock recommendation by Afrinvest Securities.

    The 2016 stock recommendation was based on the research and market intelligence prepared by analysts at Afrinvest Securities, a Lagos-based dealer on the Nigerian Stock Exchange (NSE) and member of Afrinvest (West Africa).

    The report portfolio was built around the key sectors such as banking, consumer and industrial goods, insurance, and oil and gas sectors.

    Afrinvest Securities picked 14 stocks across the five sectors with different rating of buy and accumulate, citing potential earnings and resilience to weather the tough operating environment.

    The stocks included Guaranty Trust Bank (GTB); United Bank for Africa (UBA); Zenith Bank International; Nestle Nigeria; Nigerian Breweries; Flour Mills of Nigeria; Dangote Sugar Refinery; Dangote Cement; AIICO Insurance; Continental Reinsurance; AXA Mansard Insurance; Oando, Conoil and Total Nigeria Plc.

    “One key theme that has come up in our analysis and valuation of companies is the tougher operating environment which is consequent on the weak macroeconomic backdrop. Slowing Gross Domestic Products (GDP) growth has been a major headwind on sales of manufacturing companies and risk assets creation by banks. Elevated inflationary pressures and foreign exchange shortages have driven-up costs whilst uncertain direction of fiscal and monetary policy have together worsened the risk landscape and impaired market valuation of assets,” Afrinvest Securities stated.

    According to the report, GDP growth may rebound to 3.5 per cent in 2016 from estimated 3.0 per cent in 2015, largely due to expectation on fiscal stimulus. Inflationary pressure is however predicted to hit double digit while foreign exchange supply constraint would also remain a challenge in 2016 given the negative sentiments deterring autonomous foreign exchange inflow and bearish outlook for oil prices.

    The report noted that these mutually reinforcing factors would combine to pressure revenue, earnings and margins across sectors and remain a drag on market sentiments. The report assumed equity risk premium and inflation assumptions to be 11.4 per cent and 10.1 per cent respectively.

    Afrinvest Securities said while it rated most of the banking stocks, its top picks in the sector were GTB, UBA and Zenith Bank, due to their “rich return on equity, lower cost profile and relatively healthier balance sheet, are positive driver of earnings and sentiment”.

    “We believe Tier-1 banks will continue to deliver superior earnings performance relative to Tier-2 and are better equipped to weather the storm in light of the current challenges, we maintain that investors underweight on Tier-2 banks in favour of Tier-1 banks.

    “We believe most of the banking tickers have already been heavily discounted for projected weaker forward earnings to a point that positive earnings surprises in 2016 will have massive positive knock-on impacts on pricing. Our Tier-2 coverage has higher upsides but we advocate selective and cautious positioning with a keen eye on sentiment drivers,” Afrinvest stated.

    The report noted that while the overall outlook for the consumer goods sector appears negative, there are still opportunities in specific stocks in the sector, adding that sector pricing over a long term horizon presents a fantastic opportunity for discerning investors.

    The report added that the top picks in the consumer goods sector-Nestle Nigeria, Nigerian Breweries, Flour Mills of Nigeria and Dangote Sugar Refinery were selected based on their continuous investment in capacity and expansion, leadership of their respective segments and investor sentiments towards these stocks.

    “In addition, the stocks are so selected given their relative defensiveness as blue chip stocks relative to other stocks within the sector,” Afrinvest said in relation to its top picks in the consumer goods sector.

    The report said Dangote Cement stands out in the industrial goods sector because of its continental operations and dominance of the domestic market.

    According to analysts, as the struggle for market share continues in the cement industry and margins contract, companies with strong volumes growth potential and cost leaders with capacity to grow earnings per share are in better position to deliver better returns.

    “Industry price and cost leader, Dangote Cement is best positioned for this with over 60 per cent of Nigeria’s market share and increased exposure to other regions in Africa with strong earnings potential,” Afrinvest stated.

    Analysts said Dangote Cement’s share price could rise to N183.92 per share over the next 12 months.

    The report expected gross premium growth in the insurance sector to remain positive in 2016, noting that while macroeconomic challenges remain a critical concern, demographic attractiveness and low insurance penetration rate in Nigeria accentuates the compelling growth potential of the sector.

    The report added that tighter regulatory activities which has brought about the implementation of “No Premium No Cover” rule, the launching of the micro insurance scheme and the Takaful insurance as well as the recent claims payment guidelines are expected to strengthen recent gains observed in the sector.

     

    Against the negative sentiments that had trailed Oando since the release of its 2014 results, analysts said the stock appeared to have bottomed out and now presents attractive buy opportunity for investors.

    It noted that “against the colossal sell-off in Oando following the release of its 2014 results, the stock has bottomed out and fundamental analysis gives a ‘buy’ rating”.

    Afrinvest Securities also placed buy on Conoil while urging investors to accumulate shares of Total Nigeria.

    “Since the fall in global oil prices, investor sentiments towards oil and gas stocks have been largely dampened due to the blue outlook. Following this, downstream Nigerian oil companies suffered immediate massive sell-offs. However, our analysis of the companies within our coverage in the downstream sector indicates that bottom line declines have been against foreign exchange illiquidity and subsidy delays. Going forward, with technical removal of subsidy through the price modulation template and diversification strategies of some, we expect an improvement in company returns,” Afrinvest stated.

  • Afrinvest makes key appointments

    Afrinvest (West Africa) Limited, has announced the appointment of two senior executives to strengthen its management team. Victor Ndukauba takes on the role of Deputy Managing Director while Onoise Onaghinon has been named Executive Director.

    According to Ike Chioke, MD/CEO of Afrinvest, “These appointments are a reflection of the culture we have created in the company. We are dedicated to building a team that provides extraordinary service and counsel to our clients. In some cases, that means making key external hires. But we also remain committed to promoting from within, as this helps ensure that we attract and retain the best talent in the industry.”

    Working alongside the CEO, Ndukauba is tasked with improving efficiency across the Afrinvest Group, providing strategic leadership and driving new business development initiatives. The new role will also see him manage the firm’s control environment to ensure full compliance with regulatory standards and superior client service at all times.

    Ndukauba commenced his career with the Corporate Finance business unit of PricewaterhouseCoopers Nigeria where he advised clients across various sectors. He thereafter joined the Financial Advisory practice in the Investment Banking Division of Afrinvest before heading up the firm’s Investment Research and Asset Management divisions.

    The newly appointed Executive Director, Onaghinon, has 15 years experience in the commercial and investment banking sectors. “With a proven track record of success and a sterling reputation in the industry, Onoise is uniquely qualified to lead our investment banking division, maintaining high performance teams to achieve the investment objectives of our esteemed clients “, said Chioke.

  • Nigerian equities have prospects for huge future gains, says Afrinvest

    In spite of the steep declines that started this year, Nigerian equities have prospects to deliver considerable long-term return to investors, Afrinvest Securities has stated.

    In a preview of the market in 2016, Afrinvest Securities said the equities market has huge opportunities that could surmount the present slowdown and deliver better returns to investors over the long-term.

    The investment firm noted that investors must not be discouraged by the current cloudy and disquieting moment but rather should focus on the long-term potential of the equities.

    “Nevertheless, we maintain that the equities market presents a huge opportunity for long term positioning at the moment despite the obvious pessimism and difficulties,” Afrinvest Securities stated.

    According to the report, the financial market is currently going through a turbulent time as a reflection of the intensity of instability in the global and domestic environment. From slowing growth concerns in China and plunging commodity prices in the global market to fiscal and currency crises in the domestic economy.

    The report outlined that the key concerns affecting investor sentiments were broadly the revenue structure of government which is mainly skewed to oil, the structure of foreign exchange earnings and foreign exchange restrictions and policy flip-flops that have rendered the operating environment for existing businesses and large companies decidedly negative and, tragically, increasingly hostile to the sorely needed foreign capital inflows.

    “Whilst a blurry fiscal direction as well as instability in the global oil market kept investors watching, the scale and frequency of policy reversals by the apex bank have effectively doused any remaining morsel of investor optimism towards investing in Nigeria in the present time despite enticingly depressed asset prices. This has been amplified by the position to sustain an unrealistic exchange rate at the official/interbank market relative to the parallel market,” Afrinvest Securities stated.

    The report projected three possible scenarios playing out in the equities market in 2016. Firstly, the bull case scenario with 20 per cent probability which sees the benchmark index at the Nigerian Stock Exchange (NSE), the All Share Index (ASI), recording a marginal gain of 1.2 per cent in 2016. The second scenario, the base scenario, with 50 per cent probability which sees the NSE ASI declining by 5.9 per cent and the third scenario, the bear case scenario, with 30 per cent probability which sees the NSE ASI dropping by 9.4 per cent in 2016.

    “Our overall expectation is a negative return of 5.9 per cent for the NSE ASI in 2016 bringing the index to close at 26,951 points by year-end,” Afrinvest Securities concluded.

    The investment firm advised investors with short-term outlook to reduce exposure to equities and amass fixed income securities by adopting an active fixed income trading strategy in 2016.

  • Nigerian equities have prospects for huge future gains, says Afrinvest

    Nigerian equities have prospects for huge future gains, says Afrinvest

    Inspite of the steep declines that started this year, Nigerian equities have prospects to deliver considerable long-term return to investors, Afrinvest Securities has stated.

    In a preview of the market in 2016, Afrinvest Securities said the equities market has huge opportunities that could surmount the present slowdown and deliver better returns to investors over the long-term.

    The investment firm noted that investors must not be discouraged by the current cloudy and disquieting moment but rather should focus on the long-term potential of the equities.

    “Nevertheless, we maintain that the equities market presents a huge opportunity for long term positioning at the moment despite the obvious pessimism and difficulties,” Afrinvest Securities stated.

    According to the report, the financial market is currently going through a turbulent time as a reflection of the intensity of instability in the global and domestic environment. From slowing growth concerns in China and plunging commodity prices in the global market to fiscal and currency crises in the domestic economy.

    The report outlined that the key concerns affecting investor sentiments were broadly the revenue structure of government which is mainly skewed to oil, the structure of foreign exchange earnings and foreign exchange restrictions and policy flip-flops that have rendered the operating environment for existing businesses and large companies decidedly negative and, tragically, increasingly hostile to the sorely needed foreign capital inflows.

    “Whilst a blurry fiscal direction as well as instability in the global oil market kept investors watching, the scale and frequency of policy reversals by the apex bank have effectively doused any remaining morsel of investor optimism towards investing in Nigeria in the present time despite enticingly depressed asset prices. This has been amplified by the position to sustain an unrealistic exchange rate at the official/interbank market relative to the parallel market,” Afrinvest Securities stated.

    The report projected three possible scenarios playing out in the equities market in 2016. Firstly, the bull case scenario with 20 per cent probability which sees the benchmark index at the Nigerian Stock Exchange (NSE), the All Share Index (ASI), recording a marginal gain of 1.2 per cent in 2016. The second scenario, the base scenario, with 50 per cent probability which sees the NSE ASI declining by 5.9 per cent and the third scenario, the bear case scenario, with 30 per cent probability which sees the NSE ASI dropping by 9.4 per cent in 2016.

    “Our overall expectation is a negative return of 5.9 per cent for the NSE ASI in 2016 bringing the index to close at 26,951 points by year-end,” Afrinvest Securities concluded.

    The investment firm advised investors with short-term outlook to reduce exposure to equities and amass fixed income securities by adopting an active fixed income trading strategy in 2016.

     

     

  • Afrinvest unveils AfriTrack

    Afrinvest Securities Limited (ASL) has launched AfriTrack, a service designed to unlock the value of outstanding and unclaimed entitlements of investments in Nigerian quoted securities, equities and bonds.

    Targeted at high networth individuals and corporate bodies, cooperative societies, estate account clients and busy executives, AfriTrack is a combination of ancillary services bundled into one for ease and convenience.

    “It involves reconciliation of client’s shareholding and investments; recovery of all outstanding certificates, bonuses and dividend warrants; recovery of return moneys on unallotted public offer shares; dematerialisation of recovered share certificates; revalidation of expired dividend warrants; and consolidation of multiple shareholding accounts and CSCS accounts in multiple houses,” said Charles Egbunonwo, managing director of ASL.

    On how to enjoy AfriTrack services, Egbunonwo said: “Simply open a brokerage account with Afrinvest Securities Limited, fill out the AfriTrack application form, supply basic information on your investment portfolio and provide us with a mandate or authorisation letter. We would then leverage on our cordial relationship with various company registrars to promptly reconcile actual shareholding against benefits and entitlements received.’’

    He added: “AfriTrack services would normally be concluded within a period of one to three months depending on the complexity of the portfolio and peculiar circumstances.’’