The Nation Newspaper

Tag: Cordros Capital

  • Nigeria equity market rises by 0.14% in cautious trading

    The Nigerian Stock Exchange (NSE) market indices on Tuesday sustained growth, posting a marginal gain of 0.14 per cent in a cautious trading.

    Specifically, the All-Share Index rose by 43.72 points or 0.14 per cent to close at 32,173.66 against 32,129.94 achieved on Monday.

    Also, the market capitalisation which opened at N11.981 trillion increased by N17 billion to close at N11.998 trillion.

    Analysts at Cordros Capital said that investors should tread cautious due to sensitive political landscape.

    “Amidst the still sensitive political landscape, we still hold the view that the blend of compelling valuation story, together with positive macroeconomic picture, leaves scope for market recovery in the medium-to-long term.

    “However, we guide investors to tread a cautious trading path in the short term,” they said.

    A breakdown of the price movement table shows that NASCON recorded the highest price gain of 80k to lead the gainers’ table to close at N20 per share.

    Dangote Flour followed with a gain of 60k to close at N11, while Guaranty Trust Bank appreciated by 40k to close at N37.60 per share.

    Union Bank of Nigeria grew by 30k to close at N7, while Zenith Bank added 20k to close at N24.70 per share.

    Conversely, Dangote Cement topped the laggards’ table, shedding N1 to close at N196 per share.

    Read Also: NSE to launch new trading platform for mutual funds

    Redstar Express trailed with a loss of 50k to close at N5, while Caverton lost 15k to close at N2.30 per share.

    Custodian and Investment also declined by 15k to close at N5.90, while UACN went down by 15k to close at N8.10 per share.

    Also, the volume of shares traded improved by 75.45 per cent, while the value of shares transacted rose by 32.57 per cent.

    Consequently, investors bought and sold 400.87 million shares worth N3.46 billion traded in 3,885 deals.

    This was in contrast with a turnover of 228.48 million shares valued at N2.61 billion traded in 3,544 deals on Monday.

    Diamond Bank was the most active stock for the day, trading 119.79 million shares worth N299.33 million.

    FBN Holdings followed with an account of 44.39 million shares valued at N358.98 million, while United Bank for Africa sold 40.82 million shares worth N314.48 million.

    Guaranty Trust Bank traded 32.51 million shares valued at N1.22 billion, while Zenith Bank sold 24.40 million shares worth N604.99 million.

    NAN

  • Vetiva, Cordros Capital, others win NSE CEO awards

    The Nigerian Stock Exchange (NSE) has announced winners of its annual NSE CEO Awards. Winners included Stanbic IBTC Capital Limited, Vetiva Capital Management Limited and Cordros Capital Limited, which were joint winners of the award for issuing houses with the highest number of primary market transactions in the equity segment.

    Initiated in 2012, the NSE CEO Awards is designed to reward and motivate listed companies, dealing member firms, fund managers and issuing houses to attain higher levels of corporate governance, compliance and performance that reinforce investor confidence in the Nigerian capital market.

    This year, the Exchange enhanced the award categories from three to 10 to reflect the dynamic nature of the market. The categories for this year include most digital broker of the year, which was presented earlier in the year to Meristem Stockbrokers Limited at the Exchange’s Market Data Conference in October 2018; best dealing member firm in terms of volume; best dealing member firm in terms of value; most compliant dealing member firm; most compliant listed company; listed company with highest number of disclosures; issuing house with the largest value in a single deal; issuing house with the highest number of primary market transactions in equity segment; issuing house with the highest number of debt issuance in the corporate bonds segment; and fund manager with the largest listed fund size.

    Pilot Securities Limited was named the most compliant dealing member firm for 2018, having demonstrated the highest degree of compliance with the rules and regulations governing dealing members of the Exchange in 2018. Stanbic IBTC Stockbrokers Limited won two awards for dealing member firm with the highest volume and dealing member firm with the highest value of trades.

    FBNQuest Merchant Bank Limited, ARM Securities Limited and Stanbic IBTC Capital Limited were adjudged winners of the award for issuing houses with the highest number of debt issuance in the corporate bonds segment. This was based on the value of new transactions approved and listed on the Exchange.

    The award for issuing houses with the largest value in a single deal went to Stanbic IBTC Capital Limited and Union Capital Market Limited, for facilitating the highest value of deals on the Exchange. First City Asset Management Limited won the award for fund manager with the largest listed fund size. This award takes into cognisance the cumulative size of new funds listed on the Exchange in 2018.

    Seplat Development Company Plc emerged winner of the award for issuer with the highest number of disclosures, for issuing the highest number of non-structured disclosures during the year under review. Nigerian Breweries Plc. was named the most compliant listed company, for being an early filer of financial statements; complying with the Securities and Exchange Commission (SEC) Code of Corporate Governance; with zero sanctions received during the year under review. The company is also Corporate Governance Rating System (CGRS) certified.

    Speaking at the awards, Chief Executive Officer Nigerian Stock Exchange (NSE) Mr. Oscar Onyema, praised the winners for their hard work, dedication and contributions to the development of the capital market.

    According to him, the winning companies have demonstrated capabilities and commitment towards quality development and exceptional performance; high ethical standards; compliance with the rules and regulations of the Exchange, and other applicable laws and regulations that leave no room for any penalties; while acting as key drivers in strengthening the Nigerian capital market.

    “The awards offer winners a year-round marketing opportunity and a big morale-booster for companies who have made extraordinary contributions to the Nigerian capital market and exemplify the highest standards,” Onyema said.

    Also at the event, five employees of the Exchange from its five divisions namely shared services, regulation, listings business, trading business and office of the CEO were awarded the most distinguished employees for their exemplary performance during the year under review.

    Joseph Kadiri, media relations officer at the Exchange, won the distinguished employee award for the shared services division.

  • Exchange rate will remain stable, says Cordros Capital

    Cordros Capital Limited, a Lagos-based investment group, has said Naira will continue on a stable curve through the remaining months of this year, although the slowdown in the catalytic oil sector could dampen overall economic growth.

    In its fourth quarter economic outlook, Cordros Capital stated that elevated dollar sale by the Central Bank of Nigeria (CBN) will persist on the back of sustained pent-up foreign exchange demand occasioned by continued offshore sell-offs.

    Analysts at Cordros Capital however noted that increased CBN inflow driven by higher crude oil price and prospects of $2.8 billion Eurobond, combined with strong foreign exchange reserves, currently at some $43.9 billion, would provide the apex bank with the back-up to sustain foreign exchange stability.

    “We believe the CBN has more than enough legroom to keep the naira at current level through the rest of the year,” Cordros Capital stated.

    The investment banking group however cut its Gross Domestic Products (GDP) growth projection for 2018 to 1.9 per cent, citing slower-than-previously expected oil sector growth, flood-induced cutback in agriculture output, and the absence of structural reforms to propel sturdy manufacturing sector growth even as the forex market remains stable.

    “With the gains from base effect already dissipated, together with our expected higher month-on-month inflation over fourth quarter 2018 compared to 2017, we expect the year-on-year headline Consumer Price Index (CPI) to sustain upward trajectory through the rest of the year. We now look for headline CPI of 11.54 per cent year-on-year in September and 12.71 per cent in December, with full year 2018 average of 12.37 per cent,” Cordros Capital stated.

    Inflation had resumed uptick in August 2018 as the impact of base effect induced gains waned. Notably, amidst sustained forex stability, the renewed pressure stemmed from food inflation which jumped 31 basis points to 13.16 per cent on year-on-year basis, while core inflation sustained its deceleration, driven by stable energy and electricity prices.

    According to analysts, going forward, the efforts of the Federal Government at ensuring continued cease-fire in the Niger-Delta region – especially with elections around the corner – combined with improved oil production following the lifting of force majeure on Forcados, will aid rebound in oil GDP.

    Cordros Capital expected crude production to average 2.00mb/d through the rest of year, hinged on expected crude production ramp up in the Trans-Forcados Terminal which has already resumed activities. Against that backdrop, analysts projected oil GDP growth of 1.5 per cent year-on-year and 2.5 per cent year-on-year for third quarter 2018 and fourth quarter 2018 respectively.

    On the other hand, crop and livestock outputs are expected to remain pressured, with the herdsmen and farmers clash largely unresolved, and exacerbated by the recent reported cases of flooding in the food producing areas. The reverberating effect will continue to drag Agriculture GDP. However, sustained momentum of Service GDP, combined with strong Construction GDP, is expected to neuter sluggish Agriculture GDP, with knock-on effect driving strong non-oil GDP. On Service sector, ICT and Transportation sector will dictate the pace of growth, with ICT playing the lead role. Specifically, for ICT, analysts estimate that active subscribers for voice and data usage over third quarter 2018 surged 15.7 per cent and 13.0 per cent respectively.

    “Overall, we project non-oil GDP growth of 1.87 per cent year-on-year and 2.08 per cent year-on-year for third quarter 2018 and fourth quarter 2018 respectively. On balance, we now look for third quarter 2018 and fourth quarter 2018 GDP growth of 1.83 per cent year-on-year, leaving full-year2018 estimate at 1.9 per cent as against 0.82 per cent in 2017,” Cordros Capital stated.

     

  • Cordros Capital predicts better returns for equities in 2018

    Nigeria’s macroeconomic outlook is more favourable to continuing rally at the equities market, Cordros Capital has said.

    Presenting its special outlook report tagged “Nigeria in 2018: Looking Beyond the Surface, Cordros Capital yesterday outlined a positive outlook for the Nigerian economy and the equities market, noting that average return at the equities market could range between a modest return of between 10 and 15 per cent and a bullish performance as high as 40 per cent.

    Managing Director, Cordros Capital, Mr. Wale Agbeyangi, said Cordros Capital as one of the top stockbroking firms at the Nigerian stock market is committed to providing investors with value-added services that enable them to make informed decisions.

    He noted that the special report was part of the research and investment advisory function of the company adding that the company will also organise a special forum to engage investors and stakeholders on the underlying issues in the Nigerian economy and the capital market.

    Head, Research and Strategy, Mr. Christian Orajekwe, who spoke extensively on the special report, noted that Nigeria’s economic outlook is promising with continued favourable financing condition, strong consumer sentiment that will help maintain consumption demand and business investments  and favourable commodities prices.

    “Compared to the last two years, Nigeria’s macro outlook is more favourable to equities,”  Orajekwe said.

    According to him, with the strong start so far this year and significantly favourable macroeconomic and political backdrop, strong corporate earnings growth ease valuation concerns, strong portfolio inflows to record high level, merger and acquisition activities and strong moderation of fixed income and treasury yield, Nigerian equities could record average full-year return of more than 40 per cent.

    He however noted that with due consideration for the downside risk, the equities market could deliver a more probable return of between 10 to 15 per cent. This assumption rests on the bullish start for the year, moderate improvement in the macro environment, stable to modest corporate earnings growth, modest improvement in portfolio inflows over 2017, marginal moderation of fixed income and treasury yields and modest election concerns.

    “Back-to-back gain of more than 80 per cent total is not a new phenomenon. Bull markets do not die of old age,” Orajekwe said.

    Head, Investment Banking, Cordros Capital, Mr. Femi Ademola, urged investors to cherry-pick stocks, and hold 2017 position and watch out for fourth quarter earnings for 2017 and first quarter earnings for 2018 to determine the earnings direction for quoted companies.

    “Small-cap companies will benefit from stronger recovery of economic activities, election-related spending, passage of the minimum wage bill into law, and improvement in public sector revenue while raw materials intensive companies are to benefit from the stability of the naira,” Ademola said.

    He added that highly-geared companies will also benefit from the expected moderation of interest rates while cement companies are expected to benefit from the expected improvement in public sector construction activities.

     

  • Cordros Capital woos investors with new products

    Cordros Capital Limited has launched two new products aimed at assisting investors to optimise their portfolios’ potential and take immediate investment decisions through the live trading session at the Nigerian Stock Exchange (NSE).

    The first product, Cordros Trade Button, is an online equities trading portal that enables clients view live trading and effect trades, either buy or sell, on the NSE from their various locations. The key features of the portal include speed of trade execution; error free transaction with an automated trade calculator; real time portfolio valuation; easy deposit and payment for transactions and unlimited stock watch list.

    The second product, Cordros Chase, is an investors’ solutions product designed to aid existing and potential clients to track their investments in the stock market. With this, Cordros helps investors to overcome the burden associated with equities investment such as share certificate verification, collection of outstanding share certificates and dividend warrants and their revalidation among others.

    Chairman, Cordros Capital, Mr. Charles Osezua, who spoke at the launching of a new brand identity and investment products, said the company has taken a bold step by continuing to open up the investment frontiers in spite of the challenging macro-economic and business environments.

    “Driven by the critical milestones we have achieved in the business of securities brokerage and trading, we have, over the past three years, been committed to building a firm uniquely equipped to take advantage of the growth opportunities within Nigeria’s fast evolving financial services industry, hence the foray into investment banking and asset management businesses,” Osezua said.

    Managing Director, Cordros Capital, Mr. Wale Agbeyangi, said the company has grown over the years to become a major player in the investment market.

    “I am very proud of the strides Cordros has made from being a fringe player in the industry, to one of the top-ranked and well diversified brands,” he said.

  • Cordros Capital woos investors with new products

    Cordros Capital Limited has launched two new products aimed at assisting investors to optimise the potential of their portfolios and take immediate investment decisions through the live trading session at the Nigerian Stock Exchange (NSE).

    The first product, Cordros Trade Button, is an online equities trading portal that enables clients view live trading and effect trades, either buy or sell, on the NSE from their various locations. The key features of the portal include speed of trade execution; error free transaction with an automated trade calculator; real time portfolio valuation; easy deposit and payment for transactions; and unlimited stock watch list.

    The second product, Cordros Chase, is an investors’ solutions product designed to aid existing and potential clients to track their investments in the stock market. With this, Cordros helps investors to overcome the burden associated with equities investment such as share certificate verification, collection of outstanding share certificates and dividend warrants and dividend warrants revalidation among others.

    Chairman, Cordros Capital, Mr. Charles Osezua, who spoke at the launching of a new brand identity and investment products, said the company has taken a bold step by continuing to open up the investment frontiers in spite of the challenging macroeconomic and business environments.

    “Driven by the critical milestones we have achieved in the business of securities brokerage and trading, we have, over the past three years, been committed to building a firm uniquely equipped to take advantage of the growth opportunities within Nigeria’s fast evolving financial services industry, hence the foray into investment banking and asset management businesses,” Osezua said.

    Managing Director, Cordros Capital, Mr. Wale Agbeyangi, said the company has grown over the years to become a major player in the investment market.

    “I am very proud of the strides Cordros has made; from being a fringe player in the industry, to one of the top-ranked and well diversified brands.

    I am equally proud of our clients whose supports have been instrumental to our growth and whose curiosity inspired us to delivering superior investment solutions,” Agbeyangi said.

    He noted that a subsidiary, Cordros Asset Management Limited (CAML), was established to create, preserve and grow wealth for individual and institutional investors adding that CAML aims to attain leadership position in the industry through delivery of extensive products targeted at the underserved retail segment in the near future.

    “With a team drawn from a wide range of professional backgrounds, their comprehensive expertise allows them to develop a portfolio structure that enables clients achieve their overall investment objectives. I commend the board, management and staff of Cordros on their hard work over the years and I believe the prospects of Nigeria, the financial services industry, and Cordros Capital are particularly more interesting,” Agbeyangi said.

    Cordros Capital Limited is registered as brokers/dealers and issuing house by the NSE and Securities and Exchange Commission (SEC). CAML is licensed as portfolio and fund managers.