The Nation Newspaper

Tag: investors

  • Equities rebound as investors go for undervalued stocks

    Where were more than two advancers for every decliner yesterday at the Nigerian Stock Exchange (NSE) as a renewed demand for quoted equities spurred a major rebound. After successive declines in the previous two trading sessions, bargain-hunters returned to the stock market on Thursday, holding out higher prices for most transactions.

    From banking to consumer goods sectors, investors showed improved appetite for quoted equities. Aggregate market value of all quoted equities rode on the back of the increased demand to close at N9.354 trillion, N69 billion above its opening value of N9.285 trillion.

    The All Share Index (ASI), the benchmark index at the NSE, rose by 0.75 per cent to close at 27,205.95 points compared with its opening index of 27,004.50 points. The NSE Banking Index rose by 2.3 per cent while the NSE Consumer Goods Index appreciated by 2.0 per cent. The upturn reduced the negative average year-to-date return to -21.50 per cent.

    There were 25 gainers against 11 losers in a five-hour trading sessions that saw substantial interests in low-priced large-cap stocks as well as low-cap penny stocks. Nigerian Breweries, Nigeria’s second most capitalised stock, led the advancers with a gain of N4.30 to close at N116.31. Guinness Nigeria, the second most capitalised brewer, followed with a gain of N1.60 to close at N124.60. Presco added N1.30 to close at N32.30. Zenith Bank rose by N1.25 to close at N15.25. PZ Cussons Nigeria gathered 96 kobo to close at N27.46. Cadbury Nigeria rose by 93 kobo to close at N19.61 while Seven-Up Bottling Company added 90 kobo to close at N182.

    Total turnover stood at 179.05 million shares valued at N1.46 billion in 2,747 deals. The three most active stocks, in terms of volume, were Law and Union Rock Insurance, 32.85 million shares, United Bank for Africa, 30.87 million shares and FBN Holdings, which recorded a turnover of 16.10 million shares. The most active sectors were financial services, 147.51 million shares; conglomerates, 15.17 million shares and consumer goods sector, which recorded a turnover of 5.0 million shares.

    Analysts at Cowry Asset Management attributed the upturn to renewed bargain-hunting.

    “The rebound today was in line with our expectation of bargain hunting after many value counters fell to year lows yesterday. In our view, the fact that some stocks with low prices are still not generating enough buy-attractions suggests that aggregate market buy-appetite remains weak and the current positive sentiment might be short-lived. We continue to advise caution on the part of retail investors with a short holding period,” analysts at Afrinvest Securities stated.

    Dangote Cement recorded the highest loss of N2.19 to close at N160. Fidson Healthcare and AXA Mansard Insurance dropped by 13 kobo each to close at N2.56 and N2.61 respectively.

  • Fed Govt ‘ll create enabling environment for investors, says Osinbajo

    Fed Govt ‘ll create enabling environment for investors, says Osinbajo

    • Huawei to train 2000

    Creating an enabling environment for businesses to thrive is one of the key priorities of the President Muhammadu Buhari-led administration,  Vice President, Yemi Osinbajo, has said.

    Speaking yesterday in Abuja at the signing of a Memorandum of Understanding (MoU) between the Federal Government and a Chinese technology firm, Huawei, he said the government would work hard to make the operating environment congenial to spur  economic growth and create opportunities for gainful employment.

    According to a statement by the Senior Special Assistant-Media & Publicity, Office of the Vice President, Laolu Akande, the MoU would creates 2000 information communication technology (ICT) trainee jobs to young Nigerians next year under the “Huawei  Seeds for the Future Programme.”

    According to the Vice President, who was joined by the Minister of Labour and Employment, Dr. Chris Ngige and Communications Minister Mr Adebayo Shittu, “ICT is one of the quickest ways people can get decent jobs, so we think this is absolutely important.

    “In the change agenda, how to grow the economy is important, and we want to create ICT hubs and support existing ones. We thank Huawei for this initiative of advancing technology in Nigeria, apart from the job creation itself.”

    Lamenting the low ranking of Nigeria in ease of doing business,  the Vice President said President Buhari had already given the Trade, Industry & Investment Minister the task of addressing the challenges.

    At an event attended by the Chinese Ambassador to Nigeria, Mr. Gu Xiaojie, Prof Osinbajo described the relationship between Nigeria and China as strategic. He urged Chinese investors and business leaders to consider Nigeria for manufacturing plants. He said Chinese investors “should encourage not just the selling, but also the manufacturing of products in Nigeria.”

    This, he said, would lead to mutual prosperity for both countries.

    According to the Chinese envoy, China is in partnership with President Buhari’s administation in the “change” agenda, adding that China plans to be involved in areas such as agric modernisation, industrialisation, infrastructure, trade and investment, poverty alleviation, peace and security among others.

    Dr Ngige and Mr Shittu whose ministries would select the 2000 trainees, signed the MoU on behalf of the Federal Government. The Vice President, Huawei West Africa, Mr. Richard Cao, signed for the technology firm.

    Ngige said: “China has blazed the trail,” with the job creation MoU with the Buhari presidency, while Shittu commended the initiative and urged the Chinese people to consider setting up a technology institute or polytechnic in Nigeria.

  • Govt to raise funds from investors for JVC

    Govt to raise funds from investors for JVC

    The Federal Government has expressed its readiness to raise funds from international investors and the private sector next year, to fund the Joint Venture Cash (JVC) call between the Nigerian National Petroleum Corporation (NNPC) and international oil companies operating in the country.

    The Minister of State for Petroleum Resources and the Group Managing Director of the NNPC, Dr. Ibe Kachikwu, spoke at an interactive session with Nigerians living in Vienna, Austria.

    The NNPC Group General Manager, Group Public Affairs Division, Mr. Ohi Alegbe, in a statement yesterday, quoted Kachikwu as saying that high level discussions were underway with local and international investors to bridge the perennial JVC call funding gap.

    He noted that the initiative was geared towards rebottling the Federal Government from bearing the burden of funding capital intensive projects in the upstream sector of the oil and gas industry.

    Kachikwu said in the years ahead, NNPC’s over 5,000 kilometres of pipelines across the country would be privatised to enhance the management of the infrastructure and reduce pipeline vandalism.

    According to him, in the next 24 months, Nigerians would experience a dramatic turn in the refinery model, stressing that the model that would be introduced would not only meet the petroleum product needs of the country, but those of West Africa.

    Dr. Kachikwu said: “The new model is that refineries will now buy their own crude oil, refine it and make remittances to the Federal Account Allocation Committee (FAAC). They will operate a semi-autonomy system that will enable them run in a profitable manner.”

    The minister of state gave the refineries a 90-day fast track ultimatum that would lapse at the end of this month.

    He said the NNPC operations were being transparently and efficiently handled, adding that the corporation published its monthly account, a move, he noted, inspired confidence among investors and improved the perception index of the corporation in a positive light in the eyes of the global community.

    Kachikwu said a ‘Clean Nigeria after Oil Initiative’ would be introduced next year.

    He said the initiative would put in place a process where the IOCs operating in the country would adopt global best environmental practices that would guarantee the sustenance of the flora and fauna of communities where they operated even after they had left the country.

     

  • New investors indicate interest in former Dangote Flour Mills

    New investors have shown early interests in acquisition of assets of Tiger Branded Consumer Goods (TBCG) Plc as the foreign core investor in the former Dangote Flour Mills Plc, South Africa’s Tiger Brands Limited, continued to evaluate all options for the restructuring of the lose-spinning Nigerian subsidiary.

    Chief executive officer, Tiger Brands Limited, Peter Matlare, said there have been formal and informal approaches that indicate interests in the former Dangote Flour Mills’ assets but these have neither been evaluated nor any decision taken on the interests.

    He said the board of Tiger Brands would work with all stakeholders to determine the way forward for the newly rebranded Tiger Branded Consumer Goods Plc and any material information and decisions would be communicated to the investing public.

    Tiger Brands had last month announced that it has reached decision not to provide any further financial supports to Tiger Branded Consumer Goods Plc. The decision also coincided with the resignation of chairman of the company, Alhaji Aliko Dangote and other directors including Mr. Olakunle Alake, Mr. Asue Ighodalo and Mr. Arnold Ekpe. Tiger Brands then said it was exploring various alternatives with regard to its investment in Tiger Branded Consumer Goods.

    Matlare explained that Tiger Brands had made significant investments in the former Dangote Flour Mills but the company continued to struggle with losses, which brought the board of Tiger Brands to consider either of two options of further recapitalisation or to find alternative option, the board subsequently settled for alternative options.

    “A variety of options are being considered, which could include a partnership, a sale, a merger, but no decision has as yet been made,” Matlare said in response to questions on whether foreign core investor would consider merging TBCG with its other investments in Nigeria and short-to-long term plans for the troubled Nigerian company.

    He, however, said the foreign core investor was not considering any further increase in its shareholding in TBGC. Many multinationals had in recent period been making efforts to increase their shareholdings in their Nigerian subsidiaries-many below 70 per cent had indicated plans to move to between 70-75 per cent.

    He said the continued listing of TBCG on the Nigerian Stock Exchange will depend on whatever option is chosen for the business, stating that the foreign core investor would not give a commitment that it would sustain the listing of TBCG on the NSE in the light of envisaged corporate restructuring

    He explained that the foreign core investor believed it made the right decision when it acquired the majority stake in the former Dangote Flour Mills (DFM) in 2012, but subsequent events impacted negatively on the fortunes of the company.

    Matlare said the action taken on TBCG must not be mistaken for a vote of confidence on the Nigerian economy pointing out that Tiger Brands still retains substantial investments in Nigeria and would consider any further investment opportunities.

    “We will look at all opportunities and consider them on their merits. This action is not a vote of no confidence in Nigeria, as Tiger Brands retains its 50 per cent interest in UAC Foods and its 100 per cent interest in Deli Foods.  Africa remains fundamental to Tiger’s international growth strategy and we will continue to develop in these markets and invest appropriately to drive penetration. Despite some challenges in our African businesses, expansion in Africa represents a growth opportunity for the group,” Matlare said.

  • Ambode woos foreign investors in Malta

    Ambode woos foreign investors in Malta

    Lagos State Governor, Akinwunmi Ambode stepped up his government’s campaign for direct foreign investment in the state at the just concluded Commonwealth Business Forum in Malta.

    He used the forum to invite investors to take advantage of the numerous investment opportunities that abound in the state.

    Ambode spoke on Wednesday at the Forum in Malta, an event which attracted over 1,200 business leaders from 80 countries.

    Lagos was the toast of many investors, as the Special Session hosted by the state government had prospective investors from several countries in attendance.

    Ambode, who was accompanied by a contingent consisting of Commissioners and a Special Adviser from the State Executive Council, intimated investors to various investment opportunities in Lagos State.

    He said: “The strong team I have here with me is a statement of our commitment to facilitating business in Lagos for investors. With the establishment of the Office of Overseas Affairs and Investment, the government will eliminate whatever bottle-necks may want to frustrate investors.

    “This Office is a one-stop- shop that will handle all your needs and ensure that there are no obstacles hindering investors who come to our state,” he stated.

    Mark Simmonds of the Commonwealth Enterprise and Investment Council, who anchored the Lagos State-sponsored session, said he was very impressed with the interest shown in Lagos, adding that this was a strong indication that the state is not just an investment destination but an emerging economic hub.

    There were representations from the Kingdom of Nepal, Kuwait, Malaysia and Malta.

    Lord Jonathan Marland, Chairman of the Commonwealth Enterprise and Investment Council, commended the Lagos team for its role and contribution to the forum.

    Earlier, Ambode had delivered a keynote address at the Plenary Session of the Forum titled, ‘The Commonwealth, the EU, and the Global Economic Cooperation: A One Way Ticket.’charged all nations on global economic cooperation stating that “whether you are in the EU, in the Commonwealth or whatever other organization out there, the only true common wealth we all have is to ensure a healthy financial and economic global order through economic cooperation.”

     

     

     

     

  • Investors to start receiving direct cash payment January 2

    Investors in the Nigerian capital market would be credited directly with the net proceeds of stock market transactions as from January 2, 2016.

    The Capital Market Committee (CMC), the umbrella body of all capital market stakeholders under the leadership of the Securities and Exchange Commission (SEC), yesterday at its quarterly meeting in Lagos, mandated all stakeholders to work towards the take-off date of January 2, 2016 for the direct cash payment.

    As against the current general practice whereby the payments for investors’ transactions go into the accounts of the brokers for onward disbursement to their clients, the general practice under the ‘direct cash settlement’ will be to send the net proceeds direct from the clearing and settlement system straight to the investors’ accounts while the existing practice of payment through brokers will become exceptional cases.

    Sources at the high-profile meeting told The Nation that the CMC, under the chairmanship of SEC, directed the Central Securities Clearing System (CSCS) and all the other stakeholders to finalise the modality for the smooth take-off of the direct cash payment by January 2, 2016.

    Under the proposed framework for the direct cash payment, brokers are mandated to provide their clients’ bank account details to the CSCS, being the agent of the Exchange for the clearing and settlement of all securities traded on the Automated Trading System (ATS) of the NSE.

    Settlement of each trade carried out on the ATS shall then be done by direct payment into the client’s account as provided to the CSCS. Besides, brokers are mandated within three working days of receiving instructions from a client that settlement should be done by direct payment into such client’s account to notify the CSCS of the client’s instructions and provide the client’s account details to the CSCS.

    Any broker-dealer that fails to notify and provide the account details within the three-day timeline will be liable to a fine of N250,000 in addition to any other penalty which the Exchange may impose. However, a client that declines direct cash payment into its account provided to the CSCS shall notify the CSCS by completing a direct cash settlement notification form, specially made for that purpose.

    For the meantime, settlement of transactions carried out on behalf of any client whose account details are not provided to the CSCS shall be done by payment into the account of the client’s broker-dealer firm. Also, where a client provides its broker-dealer firm with a written mandate to purchase securities with proceeds from the sale of other securities any payment attributable to the sale shall be made into the account of the broker-dealer firm provided the client gives its consent in that regard.

    Every broker-dealer is also expected to take all reasonable steps to ensure that all details of direct settlement originate from the actual client through confirmation of the client’s details in relations to particulars contained in the ‘Know Your Client’ (KYC) provisions.

  • Investors get relief as SEC launches protection fund

    Investors get relief as SEC launches protection fund

    -SEC steps up master plan implementation

    Securities and Exchange Commission (SEC), Nigeria’s apex capital market regulator, will inaugurate its National Investor Protection Fund (NIPF) tomorrow, providing a window of relief for investors that suffer losses due to defalcations by insolvent or bankrupt capital market operators, which are not dealing members of Securities Exchange or Capital Trade Points.

    The inauguration of the board of the NIPF tomorrow will complete a cycle of protection for investors that suffered losses due to inactions of capital market operators. The Nigerian Stock Exchange (NSE) had earlier launched an Investor Protection Fund (IPF) that covers losses due to inactions or bankruptcy of its dealing members-stockbrokers and dealers.

    Sources in the know confirmed that arrangements have been concluded for the inauguration of the board of the NIPF alongside other key initiatives as the apex capital market regulator steps up the implementation of the 10-year capital market master plan.

    The apex capital market regulator is also expected to inaugurate the Capital Market Master Plan Implementation Council (CAMMIC) and the Corporate Governance Score Card tomorrow.

    Under the rules of the NIPF, beneficiaries would include investors who suffer pecuniary loss due to the insolvency, bankruptcy or negligence of a capital market operator and defalcation committed by a capital market operator or any of its directors, officers, employees or representatives in relation to securities, money or any property entrusted to, or received or deemed received by the capital market operator in the course of its business as a capital market.

    The NIPF will cover the entire capital market activities under the regulation of SEC, a broader scope than the earlier IPF of the NSE, which covers only the operations of members of the NSE. The NIPF will apply only to defalcations by insolvent or bankrupt capital market operators not dealing members of Securities Exchange or Capital Trade Points. In other words, the NIPF will be for the purpose of compensating investors whose losses are not covered under the IPFs administered by Securities Exchanges and Capital Trade Points.

    The board of SEC, which had approved the NIPF, has earmarked initial take-off grant for the NIPF. The NIPF will subsequently generate funds through grants, subventions, donations and annual contributions to be made by all capital market operators not subject to contribute to the IPF of Securities Exchanges and Capital Trade Points. The board of the NIPF is also empowered to obtain loans, subject to approval of SEC. Also, the NIPF can generate funding through assets, properties or cash that shall be realized from liquidated operators after compensation to investors and proceeds from investment of its resources.

    The inauguration of the NIPF will be another milestone in the quest to boost investor confidence and attract them back to the market, coming on the heels of very robust public enlightenment campaign embarked upon by the SEC across the country. The board of SEC had in 2011 approved the establishment of the NIPF and it was subsequently incorporated on March 9, 2012 as a company limited by guarantee.

    With the launch of NIPF, Nigeria joins a handful of countries in the world with a dedicated national investor protection fund. While dozens of jurisdictions have functional investor protection funds run mainly by exchanges and their dealing members, Nigeria is now among only a few countries with a national investor protection fund to compensate investors for pecuniary losses arising from bankruptcy, negligence or malfeasance by a non-broker/dealer capital market operator.

    Also, the Commission will inaugurate the Capital Market Master Plan Implementation Council (CAMMIC) on Thursday, a day after the all-inclusive Capital Market Committee (CMC) meeting.

    Members of the highly influential council included 12 respected, highly-placed and experienced Nigerians capable of leading the emergence of the capital market Nigeria needs to develop.

    The council, according to sources, will be chaired by Mr. Olutola Mobolurin, a leading capital market operator who chairs the NASD Plc, Capital Bancorp and Custodian and Allied Plc. Mr Ariyo Olusekun, former president of the Chartered Institute of Stockbrokers (CIS) and executive chairman of Capital Assets Limited is also a member. Also included are key government officials including Dr. Joseph Nnanna, Deputy Governor in charge of Financial System Stability at the Central Bank of Nigeria; Mrs. Chinelo Anohu-Amazu, the Director General of PenCom; and Mr. Mounir Gwarzo, Director General of SEC.

    Other members include chairmen of the Capital Market Committees of both chambers of the Federal Legislature; Sen. Isiaka Adeleke and Hon. Tajudeen Yusuf, chief executive of Nigerian Stock Exchange (NSE), Mr. Oscar Onyema and other outstanding members from the private sector and capital market community such as Mrs. Hajara Adeola, Prof. Koyinsola Ajayi, Mr. Dotun Sulaiman and Mr. Ayoleke Adu.

    SEC is also expected to launch its Corporate Governance Scorecard for public companies. Developed with support from the International Finance Corporation (IFC), the Scorecard is based on the SEC 2011 code of corporate governance. The Scorecard is a tool for the assessment of corporate governance practices.  It is aimed at measuring adherence to the code of corporate governance. The Scorecard would also be used to assess the progress of companies’ governance practices overtime while enabling comparison among companies within or across sectors, with a view to fostering best practices.

    The corporate governance landscape in Nigeria has witnessed modest advances over the last decade. Five regulatory institutions have developed and released codes of corporate governance for participants in their respective industries. These include the Central Bank of Nigeria (CBN), the National Pensions Commission (PenCom), the National Insurance Commission (NAICOM) and the Nigeria Communications Commission (NCC). The fifth regulator is the SEC, whose 2011 Code of corporate governance covers all public companies regardless of their industry of operation in the country.

    Analysts have however noted that corporate governance is about disclosure and compliance not merely the release of codes. A key ingredient that had been missing all along in the Nigerian corporate governance environment has been the right instrument to incentivize compliance and encourage disclosure. That is the essential value that the SEC Scorecard is expected to add to the system.

    Gwarzo, who assumed office as the Director General of SEC in January, had said his priority and main agenda would be the implementation of the 10-year capital market master plan. The master plan is a product of key committees inaugurated by SEC in 2013 to work on long-term blueprints for the capital market, for non-interest capital market and for capital market literacy. The reports from the three committees were consolidated to form the 10-year capital market master plan (2015 – 2025), which was launched in November 2014.

    Gwarzo had taken immediate steps to actualize this agenda by identifying low-hanging fruits within the master plan that could be implemented before the end of 2015. Those initiatives, which the SEC has been implementing since the beginning of this year included e-dividends, dematerialisation, direct cash settlement, unclaimed dividends, non-interest products, robust public enlightenment, stronger enforcement and responsive rulemaking.

  • Akwa Ibom woos investors from China, U.S, Europe

    The Akwa Ibom State government has set machinery in motion to fine-tune partnerships with the Chinese, American, European and South Korean companies among others, The Nation has learnt.

    The government has also  began moves to explore the viability of reported gold and coal deposits in some parts of the state in a renewed bid to expand the economic base of the state.

    It has also explained its growing partnership with China for the industrial and business development of the state.

    Chairman of the State Investment Corporation, AKICORP Dr Elijah Akpan told newsmen in Uyo that geologists would soon be contracted to determine the exact location and viability of the two minerals in the area.

    “The Chinese and Canadians are coming with their superior technology that will be based on using satellite technology to locate the exact locations of these minerals and how viable they will be,” Akpan said.

    The chairman said that the move was part of plans to also generate employment and discourage over reliance on crude oil proceeds which has continued to dwindle in recent times at the international market.

    He described last month’s Chinese investment delegation visit to the state as fruitful adding that the Chinese were satisfied with what was on ground and has expressed interest in investing in manufacturing, agriculture, transportation, oil and gas, automobile, mining, tourism, energy and railway.

    He explained that the growing partnership with China was due to their renewed and favourable interest demonstrated in recent times in Africa but said that government would also open its investment doors to businesses from Europe and other parts of the world.

    “Our interest in China is because if you look at the most of the economies of the Western nations today they are all slowing down and are now turning their eyes to Africa because they know that Africa is the next hub for development.

    “And so China’s leading interest in Africa is just because of that  and so the next move of development is Africa and they showed no hesitation and more interest to come into Akwa Ibom but we are also working with companies in America and Europe to bring investment to Akwa Ibom,” Akpan explained.

    On efforts to address the funding gap for Small and Medium Enterprises, SMEs, in the area, Akpan explained that government has entered into a fresh negotiation with the Bank of Industry, BOI.

  • Firms, NSE woo investors with mobile trading

    Firms, NSE woo investors with mobile trading

    Four technologically advanced stockbroking firms and the Nigerian Stock Exchange (NSE) have launched an initiative to step up the use of mobile online trading portals for transactions at the stock market. The four stockbroking firms, which included GTI Securities, Investment One Stockbroking International Limited, Meristem Securities and CSL Stockbrokers, had earlier launched mobile trading portals. Capital Bancorp Plc also has online trading portal.

    The new initiative, tagged: “Smart Trade”, being coordinated by the NSE was meant to rally the stock market behind the mobile online trading, standardise and unify the platform and further provide regulatory support for the individual stockbroking firm’s efforts.

    At the launch of the initiative at the Exchange in Lagos, executive director, market operations and technology, Nigerian Stock Exchange (NSE), Ade Bajomo said online and mobile stockbroking have potentials to tremendously improve the depth of the Nigerian capital market by widening investors’ base.

    According to him, from the current retail trading investors’ base of five million, the stock market could leverage on increasing mobile and internet usage in Nigeria to grow retail investors’ base to some 25 million, which will create a win-win situation for all stakeholders.

    Bajomo said the online platform would enable investors to buy and sell stocks on the Exchange with real-time processing functionality, adding that the platform would also enhance financial inclusion, transparency and market integrity as it gives investors greater control over their investment decisions.

    He said the platform would provide users real-time market data with availability of various technical indicators to analyse the trend and momentum of the market, thus enabling investors to make informed decisions based on the latest data.

    He assured that the online portal was made up of world-class technology with robust client data protection and security framework to give clients a seamless experience when processing transaction.

    Managing director, GTI Securities, Amos Aledare, said the stockbroking firm has put in place adequate arrangements to ensure hitch-free operation of its online trading portal.

    Managing Director, Investment One Stockbroking International Limited, Mr Oluwole Awe, said the initiative would move the market to the next level, assuring that stockbrokers would support the initiative to achieve the desired result.

    “The platform has a robust security features, which are well articulated to ensure that investors trades and accounts are not compromised. This platform will enable our client make their stockbroking portfolios on mobile devices tablets, laptops and desk top computers,” Bajomo said.

    He outlined that the mobile online trading initiative would ride on the back of full dematerialisation and the direct cash settlement to create a seamless experience for investors.

    The direct cash settlement initiative will require complete documentation and reconciliation of investor information, holdings, contact details and bank account details.

    According to him, while full dematerialisation is being implemented, the direct cash settlement initiative would be simultaneously implemented, leveraging on the progress made from putting into operation the dematerialisation processes.

    “Direct implication of this initiative would be increased investor control, which in turn would translate to increased investor confidence, improved levels of financial inclusion and surge in trading volumes,” Bajomo said.

     

  • Firms, NSE woo investors with mobile trading

    Firms, NSE woo investors with mobile trading

    Four technologically advanced stockbroking firms and the Nigerian Stock Exchange (NSE) have launched an initiative to step up the use of mobile online trading portals for transactions at the stock market. The four stockbroking firms, which included GTI Securities, Investment One Stockbroking International Limited, Meristem Securities and CSL Stockbrokers, had earlier launched mobile trading portals. Capital Bancorp Plc also has online trading portal.

    The new initiative, tagged “Smart Trade”, being coordinated by the NSE was meant to rally the stock market behind the mobile online trading, standardize and unify the platform and further provide regulatory support for the individual stockbroking firm’s efforts.

    At the launch of the initiative at the Exchange in Lagos yesterday, executive director, market operations and technology, Nigerian Stock Exchange (NSE), Ade Bajomo said online and mobile stockbroking has potential to tremendously improve the depth of the Nigerian capital market by widening investors’ base.

    According to him, from the current retail trading investors’ base of five million, the stock market could leverage on increasing mobile and internet usage in Nigeria to grow retail investors’ base to some 25 million, which will create a win-win situation for all stakeholders.

    Bajomo said the online platform would enable investors to buy and sell stocks on the Exchange with real-time processing functionality adding that the platform would also enhance financial inclusion, transparency and market integrity as it gives investors greater control over their investment decisions.

    He said that the platform would provide users real-time market data with availability of various technical indicators to analyse the trend and momentum of the market, thus enabling investors to make informed decisions based on the latest data.

    He assured that the online portal was made up of world-class technology with robust client data protection and security framework to give clients a seamless experience when processing transaction.

    Managing director, GTI Securities, Amos Aledare, said the stockbroking firm has put in place adequate arrangements to ensure hitch-free operation of its online trading portal.

    Managing director, Investment One Stockbroking International Limited, Mr Oluwole Awe, said the initiative would move the market to the next level, assuring that stockbrokers would support the initiative to achieve the desired result.

    “The platform has a robust security features which is well articulated to ensure that investors trades and accounts are not compromised. This platform will enable our client make their stockbroking portfolios on mobile devices tablets, laptops and desk top computers,” Bajomo said.

    He outlined that the mobile online trading initiative would ride on the back of full dematerialization and the direct cash settlement to create a seamless experience for investors.

    The direct cash settlement initiative will require complete documentation and reconciliation of investor information, holdings, contact details and bank account details.

    According to him, while full dematerialization is being implemented, the direct cash settlement initiative would be simultaneously implemented, leveraging on the progress made from putting into operation the dematerialization processes.

    “Direct implication of this initiative would be increased investor control, which in turn would translate to increased investor confidence, improved levels of financial inclusion and surge in trading volumes,” Bajomo said.