The Nation Newspaper

Tag: GTI Securities

  • GTI Securities picks Elumelu Group as bargain stocks

    Leading investment firm, GTI Securities Limited, has picked United Bank for Africa (UBA) Plc and Transnational Corporation of Nigeria (Transcorp) Plc, as the two topmost stocks for consideration by investors. Tony Elumelu’s Heirs Holding is a major investor in both UBA and Transcorp.

    In its latest top-five stock picks, GTI Securities listed three other stocks as bargain stocks including Dangote Flour Mills, Zenith Bank and Dangote Sugar Refinery.

    Analysts at GTI Securities noted that UBA has emerged as one of the most reputable banks in Nigerian business landscape as its improved branch networks within the country and developed presence in prominent African countries has positioned the Pan-African bank with improved income sources.

    “The bank has a good Capital Adequacy Ratio (CAR) in the sector and continues to leverage on its stringent risk assessment framework to mitigate capital erosion,” GTI Securities stated.

    Analysts noted that UBA has a current book value of N13.99 and Price to Book Value of 0.66 times, pointing out that the bank “has a higher capacity of meeting short term obligations with acid test ratio at 0.75 per cent”.

    The analysts’ report also noted that Transcorp-a diversified conglomerate with interests in four major business sectors of power, oil and gas, hospitality and agriculture, recorded impressive results in the third quarter of 2017.

    “The effort of the Federal Government to stabilise the power sector will boost the company’s performance going forward and sustain the current earnings momentum. We place a buy rating on Transcorp as a result of its long term prospects which may crystallise in the short to medium term due to the market resurgence.

    Our target price is 86.6 per cent above current market price,” GTI Securities stated.

    UBA had recorded well-rounded performance in the third quarter as growing market share and improving efficiency led to significant improvements in gross earnings and profitability.

    Key extracts of the interim report and accounts of UBA for the nine-month period ended September 30, 2017 showed that gross earnings rose by 26 per cent while pre and post tax profits grew by 33.2 per cent and 23 per cent respectively.

    UBA’s gross earnings rose to N333.9 billion in third quarter 2017 as against N265.5 billion reported in corresponding period of 2016. Group’s operating income stood at N236.9 billion in 2017 compared with N183.3 billion recorded in the corresponding period of 2016, representing a 29.3 percent growth.  Profit before tax jumped to N78.3 billion in 2017 as against N58.8 billion recorded in the similar period of 2016. Profit after tax grew from N49.5 billion in 2016 to N60.9 billion in 2017.

    The balance sheet showed that while the group closed the third quarter with total assets of N3.77 trillion, a year-to-date growth of 7.6 per cent, the bank prudently grew net loans to N1.6 trillion, a 6.0 per cent year-to-date growth in the loan book. Group’s shareholders’ fund grew by 13.3 per cent to N507.6 billion in 2017 while the annualized return on average equity stood at 18 per cent.

    Key extracts of the interim report and accounts of Transcorp for the nine-month period ended September 30, 2017 showed that group turnover rose by 35 per cent from N41.92 billion in third quarter 2016 to N56.76 billion in third quarter 2017. Gross profit rose by 45 per cent from N19.84 billion in 2016 to N25.62 billion in 2017. Operating profit stood at N16.81 billion compared with N11.58 billion in comparable period of 2016.

    With better finance cost management, net finance cost declined considerably to N7.77 billion in 2017 as against N24.37 billion in 2016. Profit before tax thus improved to N9.04 billion in third quarter 2017 as against pre-tax loss of N12.7 billion recorded in third quarter 2016. After taxes, net profit recovered to N8.2 billion in 2017 as against net loss of N14.21 billion in corresponding period of 2016.

  • NSE scores GTI Securities high on operating standards

    The Nigerian Stock Exchange (NSE) has awarded GTI Securities Limited the highest rating under its verification scheme for market operators that have the prerequisite resources to compete effectively, otherwise known as Minimum Operating Standards (MOS).

    The NSE had introduced the MOS in April 2014 as part of efforts to develop a stronger, stable and sustainable capital market. The MOS are a set of standards prescribed by the Exchange for dealing members to develop robust controls; strong governance framework and effective human capital that will enable them achieve best-in-class operations in order to compete on a global level for the benefit of investors and the Nigerian capital market.

    The main objective of the MOS is to ensure effective operational, technological and governance structures among the dealing members of the Exchange.

    Managing director, GTI Securities, Mr Amos Aledare, at the weekend, said the verification team of the Exchange for the MOS scored the securities firm high on all benchmarks.

    “We are delighted to inform you that GTI Securities Limited has rightfully received the maximum score of five out of five in the recently concluded inspection exercise carried out by the NSE. The five broad areas covered under the MOS exercise were manpower & equipment; organizational structure and governance; effective processes; technology and global competitiveness,” Aledare said.

    He said the score was an acknowledgement of the securities firm’s contribution to technological drive and innovation in the industry.

    According to him, the 100 per cent compliance status of GTI Securities shows its commitment to excellence in service delivery and its determination to revolutionize the trading environment.

    He assured the investing public that the company would continue to explore opportunities to open up greater world of financial possibilities for its clients.

    Commenting on the rationales for the new standards, head, legal and regulation division, Nigerian Stock Exchange, Ms Tinuade Awe, had said the new minimum operating standards were meant to complement the tremendous transformation that the market had undergone in recent years and to extend these forward-moving traits to the dealing members.

    According to her, the objective of the minimum operating standards is to transform the operators into more competitive and compliant operators.

     

     

  • GTI Securities unveils new investment product

    GTI Securities Limited, a member of the Nigerian Stock Exchange (NSE), has launched a new investment product that would help individual and institutional investors to grow their assets without undergoing the stress of the market risks. GTI Securities Limited is the owner of Sub-Sahara Africa’s first private trading floor.

    In a statement at the weekend, GTI Securities, a subsidiary of GTI Capital Group, stated that the new investment product, known as GTI Discretionary Portfolio Asset Management Service (D-PAMS), is designed for busy investors who do not have the time to monitor daily market activities or investors who do not have the expertise to handle stock analysis and appropriate stock picks with good fundamentals for profitability and growth.

    The firm stated that institutional and high net-worth individual investors would benefit from expert financial assets management citing its pedigree in successfully managing funds and investment portfolios of clients to achieve set objectives with optimum return in relation to clients’ risk tolerance level.

    “The D-PAMS is one of the latest initiatives of GTI Securities to help our clients and the investing public take advantage of the potentials inherent in our capital market; a portfolio manager is assigned to your portfolio for the sole purpose of value creation,” the firm stated.

    The firm assured the investing public that it would continue to improve on its bespoke services to cater for the needs of the investing public.

    According to the company, part of its value-added investment services included improved research reports, which provide daily market insights and regular business and economic news, stock analysis and recommendations and sectoral reports which give clients insights into the various sectors of the economy and assist them in making informed investment decisions.

    “We also offer free investment advisory. As a valued client, we will be willing to meet with you, at any point in time, to plan your investment portfolio across various assets classes based on your needs and in line with your investment objectives. We will also from time to time, be contacting you on your investment portfolio, to ensure proper re-alignment for improved profitability,” the firm stated.

     

  • GTI Securities, GTI Capital beat recapitalisation deadline

    GTI Securities, GTI Capital beat recapitalisation deadline

    GTI Securities Limited and GTI Capital Limited had more than the minimum capital requirements for their capital market functions by the initial deadline of December 31, 2014.

    A list of capital market operators that met the new minimum capital requirements for their various functions published by the Securities and Exchange Commission (SEC) showed that GTI Securities and GTI Capital were among the operators that met the earlier deadline of December 31, 2014.

    GTI Securities Limited, a member of the Nigerian Stock Exchange (NSE), is a broker-dealer member of the GTI Capital Group while GTI Capital is an issuing house.

    SEC last week extended the deadline for compliance with the new minimum capital requirements for capital market operators to September 2015.

    The management of GTI Capital Group at the weekend indicated that the confirmation of the capital base of both GTI Securities and GTI Capital by SEC underscored the financial strength of the financial services group.

    GTI noted that it would continue to improve on its bespoke services to cater for the needs of the investing public.

    In a statement, the management of the securities firm said the company is poised to serve the investing public better with more customer-centred products and services and efficient communication system.

    It noted that GTI Securities, a member of the GTI Capital Group, is focused on its core competence of trade execution and advisory and it has been positioned for greater market penetration and enhance strategic focus in stockbroking business.

    “The new and transformed GTI is now poised to serve you better, as it is founded on the principles of financial possibilities for all your investment requirements and we are committed to ensuring that you fully maximize the rewarding investment opportunities present in the capital market through our formidable research team,” the investors’ note stated.

    According to the company, part of its value-added investment services included improved research reports, which provide daily market insights and regular business and economic news, stock analysis and recommendations and sectoral reports which give clients insights into the various sectors of the economy and assist them in making informed investment decisions.

    “We also offer free investment advisory. As a valued client, we will be willing to meet with you, at any point in time, to plan your investment portfolio across various assets classes based on your needs and in line with your investment objectives. We will also from time to time, be contacting you on your investment portfolio, to ensure proper re-alignment for improved profitability,” the firm stated.

    The statement pointed out that GTI Securities’ online trading platform gives investors direct access to the market for online trading and real time monitoring of the market and their portfolios.

    It added that it has provided dedicated mandate and customer service lines that provide direct access to customers to promptly place their orders, make enquiries and get feedback on their portfolios.

    GTI Securities noted that all members of GTI Capital Group are well capitalised above regulatory benchmarks.

    Located on Tinubu Street, in the Marina axis of Lagos’s main Central Business District, the GTI Securities’ private trading floor is a multi-purpose trading floor designed to interface with the most modern trading engines around the world, providing stockbrokers on both sides direct trading opportunity. Already linked and trading online, real time, on the Nigerian Stock Exchange (NSE) and NASD OTC Plc, the private trading floor is concluding arrangements that will open up similar trading opportunities on the LSEG, New York Stock Exchange (NYSE) and other major exchanges.

    As a broker-dealer member of the NSE, GTI is also part of the West African Capital Market Integration (WACMI) programme, which is designed to integrate the region’s stock exchanges. The WACMI programme, at full implementation, will enable stockbrokers from any West African country to trade on any of the region’s exchanges and also allow companies to raise capital across the borders. GTI Securities’ private trading engine is designed to trade on all instruments including equities, bonds and derivatives.

    A team from the London Stock Exchange Group (LSEG) recently visited the GTI Securities’ trading floor with a promise to work together with the Nigerian firm to further integrate the Nigerian capital market and the global financial markets.

    Chief of staff and head of international development, London Stock Exchange Group (LSEG), Mr. Nikhil Rathi, had commended GTI’s vision of seamless facilitation of capital flow and investments between Nigerian and global financial markets.

    According to him, GTI’s vision of bringing Africa to the world and bringing the world to Africa is a commendable and noble vision that would lead to development of the Nigerian capital market and the economy.

    Co-Head of Emerging Markets and Head of Primary Markets, London Stock Exchange Group (LSEG), Mr. Ibukun Adebayo, noted that Nigeria, as the largest economy in Africa, has huge opportunities and enormous potential for the development of its capital market and the economy.

    He pointed out that Nigerian capital market is still a fraction of the country’s Gross Domestic Products (GDP) whereas it should have been in multiples of the GDP.

    He said the LSEG team, which had visited and signed Memorandum of Understanding (MoU) with the NSE, was in Nigeria to facilitate dual listing and greater connectivity between Nigeria and London.