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Tag: Nigerian Stock Exchange (NSE)

  • Stock Exchange lifts suspension on Royal Exchange

    AUTHORITIES at the Nigerian Stock Exchange (NSE) on Thursday lifted suspension placed on trading on the shares of Royal Exchange Plc after the insurance-based holding group submitted its audited report and accounts.

    The NSE had in July 2019 suspended trading on Royal Exchange and 10 other companies for failing to adhere to best corporate governance and extant post-listing requirements that make it mandatory for quoted companies to submit their financial statements within stipulated timelines.

    Post-listing rules at the NSE require quoted companies to submit their audited earnings reports, not later than 90 calendar days after the expiration of the period. The rules also require quoted companies to submit interim report not later than 30 calendar days after the end of the relevant period.

    Not less than 83 per cent of quoted companies use the 12-month Gregorian calendar year as their business year. The business year thus terminates on December 31. While March 31 is usually the deadline for submission of annual report for companies with Gregorian calendar business year, the deadline for the quarterly report is a month after the quarter.

    The NSE stated that Royal Exchange has submitted its audited financial statement, prompting the Exchange to restore trading on the company on Thursday.

    Key extracts of the audited report and accounts for the year ended December 31, 2018 showed that the group made a net loss of N156.18 million in 2018, an improvement on net loss of N969.64 million recorded in 2017. Loss per share thus declined from 19 kobo in 2017 to 3.0 kobo in 2018.

    Gross premium written rose by 15 per cent from N12.82 billion in 2017 to N14.71 billion in 2018. Underwriting income rose by 28 per cent from N7.6 billion to N9.7 billion, Underwriting profit jumped by 249 per cent to N3.67 billion in 2018 as against N1.05 billion in 2017. Profit before tax stood at N326.87 million in 2018 compared with pre-tax loss of N682.13 million in 2017.

    However, the interim report and accounts of the group for the first quarter ended March 31, 2019 showed a general decline in performance.  Gross premium written dropped by 27 per cent to N5.6 billion in first quarter 2019 as against N7.68 billion recorded in first quarter 2018. Underwriting income declined by 12 per cent from N2.7 billion to N2.38 billion. Underwriting profit dropped by 55 per cent to N563.37 million in first quarter 2019 compared with N1.23 billion recorded in corresponding period of 2018.

    The group recorded a pre-tax loss of N142.09 million in first quarter 2019 as against pre-tax profit of N572,40 million in first quarter 2018. After taxes, net loss rose to N187.56 million in first quarter 2019 as against net profit of N389.9 million in first quarter 2018. Loss per share thus stood at 4.0 kobo in first quarter 2019 as against earnings per share of 8.0 kobo in first quarter 2018.

    An investment fund set up by the German government recently acquired 39.25 per cent in Royal Exchange General Insurance Company (REGIC) Limited, a subsidiary of Royal Exchange. The investment fund- InsuResilience Investment Fund (IIF) was set up on behalf of German government by KfW and managed by Swiss-based Impact Investment Manager BlueOrchard Finance Limited.

    The proceeds of the acquisition would help REGIC to spur growth by increasing its risk capital and supporting its underwriting capacity in agriculture, thus extending its outreach to low income farmers.

    Based in Luxembourg, IIF was set up by KfW, the German Development Bank, on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ). The overall objective of IIF is to contribute to adaptation to climate change by improving access to and the use of insurance in developing countries.

  • DMO: Fed Govt’s savings bonds record N13.5bn investments

    THE Federal Government’s savings bonds have recorded N13.5 billion worth of investments since inception in March 2017, the Debt Management Office (DMO) said on Tuesday.

    DMO’s Head, Market Development Monday Usiade made this known at a Retail Bond Workshop organised by DMO in partnership with the Nigerian Stock Exchange (NSE) and Stanbic IBTC Stockbrokers Limited in Lagos.

    A breakdown of the data indicated that N2.07 billion, N2.69 billion, N1.55 billion and N891 million worth of investments were recorded in the first, second, third and fourth quarters of 2017, respectively.

    N583 million was recorded in Q1, N740 million in Q2, N1.21 billion in Q3 and N1.02 billion in Q4 of 2018, respectively.

    Usiade said a breakdown of the transactions showed that 432 corporate investors invested a total of N1.75 billion, while 15,822 individuals accounted for N11.75 billion, bringing the total investment to N13.5 billion.

    Usiade, represented by Ms Bose Olafisoye from DMO Market Development, said individual investors accounted for 87.06 per cent of the total investment.

    He said 87.06 per cent was still below expectation, noting that DMO would embrace strategies aimed at attracting more investors to increase the figure.

    Usiade noted that 77 per cent of the individual investors were from the South-West.

    Read Also: DMO boss makes case for non interest banking

    He added that further breakdown of the geographical distribution of investors showed that eight per cent of investors were from the Federal Capital Territory and South-South, respectively.

    According to him, four per cent of the investors came from South-East and outside the country, and three per cent from North-East and North Central.

    Usiade added that Jigawa and Yobe states recorded zero subscriptions, while Lagos, FCT, Oyo and Ogun contributed 75.54 per cent of the total investment.

    “Eleven Distribution Agents (DAs) have not remitted any amount to the DMO from inception.

    “Such DAs that are yet to submit subscriptions in all the auctions as well as other DAs with marginal returns till the end of the year may be de-registered.

    “Given the analysis of the performance of the DAs, there is need for them to improve on their performance in order to meet stated objectives,” he said,

    Usiade said though modest progress had been made, the FGN savings bonds were far from achieving the stated objectives.

    Also speaking, Mr Oscar Onyema, NSE’s Chief Executive Officer, said the partnership of NSE with the DMO towards creating investment opportunities for retail investors in the debt market dated to the launch of NSE’s Retail Bond Market in 2012.

    “With the launch of the NSE Retail Bond Market, the exchange sought to promote financial inclusion, while stimulating retail investor participation in the Nigerian debt market,” Onyema said.

    He explained that prior to that time, investing in listed debt instruments had been dominated by institutional investors trading in wholesale denominations.

    Onyema said in March 2017, the exchange in collaboration with the DMO, launched the FGN Savings Bond having recognised the opportunity presented by the Nigerian demographic to diversify government’s funding sources and enhance national savings culture.

    “Since its debut issuance of NGN2.067bn, retail investors from across the six geo-political zones and the diaspora have invested in the FGN Savings Bonds with the DMO raising over ?13 billion from 2-year and 3-year bond maturities as at July 2019.

    “Despite these teeming efforts, only about three per cent of Nigeria’s adult population currently participate in the Nigerian capital market.

    “This is an indication that there is need for increased collaborative efforts in promoting higher levels of financial inclusion in Nigeria.

    “In achieving our strategic vision to become the preferred Exchange hub in Africa, we will continue to pursue initiatives that seek to increase domestic participation in capital market through increased access to investment solutions,” Onyema added.

  • SEC, NSE streamline listing process to encourage more listings

    The Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE) have moved to make the processes involving listing on the NSE more efficient and cost effective by streamlining the approval process between the SEC and the NSE.

    The streamlined process which will come into effect on June 1, 2019, is aimed at reducing the regulatory burden on issuer’s by eliminating duplication of processes between the SEC and the NSE, reducing the time to market for the issuance and listing of securities and ultimately driving more listing on the Exchange.

    According to a statement by the SEC, with the streamlined processes, the SEC and the NSE will carry out joint site visits of companies intending to get listed, following the registration of their securities with the SEC.

    In the same vein, certain offer documents such as the Vending Agreement, Underwriting Agreement, Trust Deed and ISPO, identified to be strictly within the jurisdiction of the SEC are to be submitted only to the SEC.

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    Also, The NSE will rely on SEC for approval of offer documents such as a Prospectus.

    The Ag. Executive Commissioner Operations at the SEC, Mr. Isiyaku Bala Tilde disclosed that “Streamlining the issuance process with the listing process of the NSE is a major milestone for the Commission in its quest to create an enabling environment capable of attracting New Listings.

    “One of our core values is leading by example, and we hope that other stakeholders will also look inward to explore similar initiatives which will ensure quick time to market of securities in our market.

    “We have no doubt that the streamlined process will enhance the competitiveness of the Nigerian capital market as a global investment destination.”

    Speaking on this development, Executive Director, Regulation at the NSE Ms. Tinuade Awe, said, “I commend the SEC for working with using streamlining the listing process for securities on The Exchange.

    “The NSE is much obliged for the SEC’s demonstration of a worthy example of effective collaboration all through this process in the interest of the market.

    “As an agile exchange, we are determined to make it easier for issuers to list their securities in our market in an efficient, timely and cost effective manner.

    “The NSE began its collaboration with the SEC by identifying areas of duplication and overlap between the two organisations, paving way for a better experience for issuers.

    “We believe this will potentially attract more issuers to list their companies and other securities on the NSE.”

  • Equities continue decline with N51b loss

    The bearishness at the Nigerian stock market further exacerbated today as continuing selloffs across the sectors left the market with a net capital depreciation of N51 billion, more than a double of N23 billion lost on Tuesday.

    Benchmark indices at the Nigerian Stock Exchange (NSE) showed average decline of 0.48 per cent today, pushing the negative average year-to-date return to double digit at -10.05 per cent. Equities have so far this month lost an average of 3.01 per cent, despite a key policy announcement of the reappointment of the Central Bank of Nigeria (CBN) Governor, Mr. Godwin Emefiele.

    Aggregate market value of all quoted equities on the NSE dropped from its opening value of N10.678 trillion to close at N10.627 trillion. The All Share Index (ASI) declined from its opening index of 28,422.76 points to close at 28,286.08 points.

    Read Also: Equities open with tight trading

    There were 17 losers against 11 gainers during the five-hour trading session today. Forte Oil led the losers with a drop of N3.45 to close at N31.50. Cement Company of Northern Nigeria followed with a drop of N1.40 to close at N13.90. Dangote Flour Mills dropped by 75 kobo to close at N16.25. Dangote Cement declined by 50 kobo to close at N178 while Union Bank of Nigeria lost 25 kobo to close at N6.75 per share.

    On the upside, Dangote Sugar Refinery and UAC of Nigeria led the gainers with a gain of 25 kobo each to close at N13.85 and N7.55 respectively. United Capital followed with a gain of 5.0 kobo to close at N2.45. Chams added 3.0 kobo to close at 36 kobo while ABC Transport, Jaiz Bank and Thomas Wyatt inched up by 2.0 kobo each to close at 27 kobo, 48 kobo and 29 kobo respectively.

    Access Bank was the most active stock with a turnover of 35.76 million shares valued at N241.69 million. UAC of Nigeria followed with 21.51 million shares worth N161.38 million while United Bank for Africa (UBA) placed third with 18.78 million shares worth N114.01 million.

     

  • SEC confirms MTN application for listing on stock market

    MTN Nigeria has formally applied for listing by introduction on the Nigerian Stock Exchange (NSE).

    This was made known by the Head of Corporate Communications of the Securities and Exchange Commission (SEC), Mrs. Efe Ebelo, on Monday in Abuja.

    According to her:  “The Securities and Exchange Commission, SEC, can confirm that we are in receipt of an application from MTN requesting for registration of their existing securities.

    “They have applied for listing by introduction which will enable the company to be listed and allow shareholders sell their shares on the floor of the exchange.

    Read Also: MTN unveils FibreNet in Abuja

    “Their application is presently receiving attention.”

    It would be recalled the telecoms giant recently changed its status from a private company to a public liability company ahead of its listing on the exchange.

    Also, as a way to resolve the N330 billion fine placed on MTN by the Nigerian Communications Commission (NCC) for its inability to disconnect improperly registered SIM cards, listing on the NSE was one of the conditions reached.

    The listing on the NSE would create a new telecoms asset class for investors and provide a wider group of Nigerians with a chance to participate in MTN investment opportunity.

    The Chief Executive Officer of MTN Nigeria, Mr. Fredi Moolman, who made the announcement, said that the listing was part of its commitment to localisation in the markets in which it operates.

    “Our conversion to a Plc is a major step towards listing by introduction on the Nigerian Stock Exchange in the first half of 2019.

    “It is a reaffirmation of our long-term commitment to expanding investment opportunities for Nigerians, in addition to providing everyday services to them.

    “We look forward to continuing our engagement with the SEC and NSE to take forward the listing process,” he said.

  • NSE lifts suspension on Afromedia

    The Nigerian Stock Exchange (NSE) has lifted suspension on trading in the shares of Afromedia Plc; one year after it suspended the advertising media company for failure to comply with post-listing requirements.

    The NSE stated that the lifting of suspension on the shares of Afromedia was sequel to the submission of its relevant financial statements to the Exchange.

    The NSE had on April 9, 2018 suspended trading in shares of Afromedia for failing to adhere to best corporate governance and extant post-listing requirements that require quoted companies to submit their periodic financial statements and reports within stipulated timelines.

    Post-listing rules at the NSE require quoted companies to submit their audited earnings reports, not later than 90 calendar days, or three months, after the expiration of the period. The rules also require quoted companies to submit interim report not later than 30 calendar days after the end of the relevant period.

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    Not less than 83 per cent of quoted companies use the 12-month Gregorian calendar year as their business year. The business year thus terminates on December 31. While March 31 is usually the deadline for submission of annual report for companies with Gregorian calendar business year, the deadline for the quarterly report is a month after the quarter.

    The Exchange stated that “Afromedia Plc has now filed its outstanding financial statements”, thus the suspension placed in trading on the shares of the company was on Monday, April 8, 2019.

    Incorporated in 1959 and listed on the NSE in 2009, the Afromedia Group consists of five subsidiaries and associated companies. These include Afromedia Gambia Limited, Afromedia Africa Propriety Limited, Optmedia Limited, Outdoor Exchange West Africa Limited and Independent Poster Care Limited.

  • Equities relapse as selloff resumes

    Nigerian equities lost N56 billion in net capital depreciation yesterday as sell pressure across major stocks overshadowed earnings expectations.

    Benchmark indices at the Nigerian Stock Exchange (NSE) showed average decline of 0.48 per cent, equivalent to net capital depreciation of N56 billion.

    With more than two decliners for every advancer, aggregate market value of all quoted equities at the NSE dropped from its opening value of N11.695 trillion to close at N11.639 trillion. The All Share Index (ASI)- the main value-based index, dropped from its opening index of 31,360.28 points to close at 31,210.79 points. Average year-to-date return worsened to -0.70 per cent.

    Sectoral indices showed mixed performance. The NSE Oil and Gas Index appreciated by 0.13 per cent. The NSE Insurance Index rose by 0.49 per cent while the NSE Consumer Goods Index closed flat. However, the NSE Banking Index declined by 0.37 per cent while the NSE Industrial Index dipped by 0.52 per cent.

    “Despite today (Thursday)’s sell offs, we expect positive corporate earnings releases to drive the performance of the equities market in the near term,” Afrinvest Securities stated.

    There were 20 decliners to nine advancers. Nestle Nigeria led the losers with a drop of N4.90 to close at N1,545. Dangote Cement followed with a loss of N2 to close at N190. Transcorp Hotels declined by 55n kobo to close at N5.40. Eterna dropped by 40 kobo to close at N4.40. Guaranty Trust Bank lost 30 kobo to close at N35.40 while Zenith Bank declined by 20 kobo to close at N22.20 per share.

    On the upside, Dangote Flour Mills led the gainers with a gain of N2.80 to close at N10.30. Ikeja Hotels followed with a gain of 35 kobo to close at N2.30. Sterling Bank rose by 9.0 kobo to close at N2.50 while NEM Insurance and United Bank for Africa added 5.0 kobo each to close at N2.50 and N7.65 respectively.

    Total turnover stood at 177.63 million shares valued at N2.56 billion in 2,635 deals. Banking stocks dominated activities chart. Zenith Bank was the most active stock with a turnover of 80.78 million shares valued at N1.80 billion. Sterling Bank followed with 16.80 million shares worth N41.87 million while FCMB Group placed third with 12.13 million shares worth N23.82 million.

    Analysts at Cordros Capital advised investors to trade cautiously in the short term, although stable macroeconomic fundamentals and compelling valuation remain supportive of recovery in the mid-to-long term.

     

  • EFCC re-arraigns ex-Intercontinental Bank MD on money laundering

    The Economic and Financial Crimes Commission (EFCC) on Wednesday re-arraigned a  former Managing Director of the defunct Intercontinental Bank PLC, Erastus Akingbola in a Federal High Court in Lagos, for alleged Money Laundering charges.

    He is charged by the EFCC with amended 22 count charge bordering on the offence.

    He had pleaded not guilty to the charges.

    The prosecution had opened its case and its second witness, Mr Abdulraheem Jimoh is still been led in evidence.

    When the case was called on Wednesday, the prosecutor Mr Rotimi Jacobs (SAN) informed the court of an amended charge filed by prosecution.

    He urged the court to accept the charge and cause the plea of the defendant to be taken afresh.

    Akingbola was re-arraigned on the charge written Further Amended Charge, and marked FHC/L/443C/2009.

    In the charge, he was alleged to have between November 2007 and July 2008, while being the MD of Intercontinental Bank, caused to be created a misleading appearance of active trading in the shares of the bank in the Nigerian Stock Exchange (NSE).

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    He was alleged to have been connected with the utilization of an aggregate sum of N179.4 billion of the bank’s fund, for the purchase of the bank’s shares, thereby inflating the rate of the bank’s shares on the NSE.

    He pleaded not guilty to the charges, on his re-arraignment, and after his plea was taken, trial continued.

    The witness an Investigator, who had earlier given evidence before the court, was cross examined by defence counsel, Chief Wole Olanipekun (SAN).

    When asked by defence if he recalls that in his statement before an Ikeja High Court he had testified writing the statement at the EFCC office, the witness replied “I can’t recall”

    The Court has adjourned until March 14 for continuation of trial.

    In the charge, the defendant was also accused of converting an aggregate sum of 1.3 million dollars and 8.5 million dollars, which sum was taken from the bank’s GBP NOSTRO account at Deutsche Bank in London.

    The sum was said to have been remitted into the account of Fuglers Solicitors with the Royal Bank of Scotland in London, to purchase property in the name of Life Boat Settlement Trust, set up by the defendant.

    According to the prosecution, the defendant knew that the sums represented proceeds of crime which includes stealing.

    The offences contravene the provisions of sections 105(1) and 105(a), of the Investment and Securities Act, 2007.

    It also contravenes the provisions of sections 13 (1), 15(1)(a), and 28(3) of the Banks and Other Financial Institutions Act, Cap B3, Laws of the Federation 2004.

    The offence also contravene the provisions of sections 14(1) of the Money Laundering Prohibition Act, 2004

    NAN

     

  • MTN Nigeria to list on Stock Exchange

    • Telco unveils $1b divestment plan as revenue hits N965b

    Africa’s telecoms giant, MTN Group, yesterday said it would list on the Nigerian Stock Exchange (NSE) in the first half of this year.

    This is coming on the heels of its recording very positive trade numbers in the 2018 fiscal year. MTN Group’s balance sheet showed total revenue of 37.971billion South African rand (equivalent of about N965.3billion), a statement from the firm indicated.

    It said: “MTN plans to list by introduction on The Nigerian Stock Exchange during the first half of 2019 and is looking to simplify the capital structure ahead of this listing.

    “The company’s listing on the Exchange will create a new telecoms asset class for investors and provide an opportunity for a wider group of Nigerians to participate in our investment story.

    “This will be achieved via a listing by introduction and will be followed by a public offer once market conditions are conducive. Over time, and subject to market conditions, we anticipate that the participation of Nigerians in the ownership of the business will increase from around 20 per cent to 35 per cent.”

    The telecom giant also announced a $1 billion divestment programme over the next three years that will slim down its operation and refocus it on high-growth markets on the continent and in the Middle East.

    Shares in the company surged 15 per cent to 87.39 rand, on course for their biggest one-day rise in since 2008.

    During the year under review, MTN Nigeria increased its mobile subscriber base by another six million people, bringing its tally to 58 million subscribers nationwide.

    CEO, MTN Nigeria, Ferdi Moolman, said: “In 2018 we rebuilt the base; adding another six million Nigerians to our network, giving a total of 58 million people access to worldwide communication services.

    “This growth was built on our sustained focus on customer centric delivery – ensuring that customers get much more value for their money.

    “This included the deployment of proactive interventions to improve customer experience, together with the enhancement of network quality and coverage, and the optimisation of our services portfolio.

    “We also enabled an additional 8 million people to access the possibilities that the internet provides, bringing our total data subscriber base to 44 million, of which 18.7 million use more than five megabytes per month.

    “We are now even better positioned to ensure that everyone can access the benefits of a modern connected life. We are excited to have been given the privilege to continue playing a role in facilitating this, and are grateful to our customers, our people, our partners and our regulator for making this possible.

    “We understand how access to the opportunities enabled by the internet can open up new industries even in the remotest areas of our country.

    “Thus, we will continue to focus on delivering social innovations like mobile electricity, financial services for all; and leveraging our technology as a vehicle to enable high-impact mobile solutions in education, health and agriculture in our communities – urban and rural.”

  • NSE trains brokers on fixed-income trading

    The Nigerian Stock Exchange (NSE) yesterday held a workshop on fixed income trading as part of its commitment to improve the capacity of dealing members and enhance investors’ participation in the fixed income market.

    The event witnessed over 200 participants across the capital market community. During the workshop, delegates were exposed to the opportunities inherent in the fixed income market, the future potential of the market, and the potential for onboarding retail investors into the capital markets.

    All fixed income securities, with the exception of zero- coupon bonds, provide some form of regular interest payments to investors. This makes the fixed income market especially attractive to investors whose main investment goal is providing themselves with a steady income.