The Nation Newspaper

Tag: Nigerian Stock Exchange (NSE)

  • Stock market in mixed performance

    Profit-taking in some large-cap stocks has dragged Nigerian equities to a loss of N84.4 billion but investors stepped up bargain-hunting for value stocks ahead of the announcement of the final results of the presidential and National Assembly elections.

    With more gainers than losers and 46.6 per cent increase in turnover, the equities market showed underlying positive sentiment. However, losses suffered by some highly capitalised companies including Nestle Nigeria Plc, Nigeria’s highest-priced stock, dragged the overall market position to negative.

    Aggregate market value of all quoted equities at the Nigerian Stock Exchange (NSE) dropped from its opening value of N12.194 trillion to close at N12.109 trillion. The All Share Index (ASI)- the main value-based index at the Exchange declined by 226.30 points or 0.69 per cent to close at 32,473.82 points as against its opening index of 32,700.12 points. This moderated the average year-to-date return to 3.32 per cent.

    Sectoral indices showed mixed performance, with a swing towards positive. The NSE Banking Index dropped by 1.18 per cent while the NSE Consumer Goods Index declined by 1.57 per cent. Meanwhile, the NSE Insurance Index rose by 3.22 per cent. The NSE Oil & Gas Index appreciated by 1.56 per cent while the NSE Industrial Goods Index inched up by 0.04 per cent.

    There were 21 gainers against 20 losers. Nestle Nigeria led the losers with a drop of N70 to close at N1,510. Union Bank of Nigeria followed with a loss of 60 kobo to close at N6.65. FBN Holdings declined by 30 kobo to close at N8 while GlaxoSmithKline Consumer Nigeria, United Bank for Africa and Zenith Bank declined by 20 kobo each to close at N11.80, N8 and N25.80 respectively.

     

    On the positive side, Guinness Nigeria led the gainers with a gain of N2.05 to close at N67.15. Dangote Flour Mills added N1 to close at N12.05 while Oando rose by 65 kobo to close at N7.25.

    Total turnover increased by 46.6 per cent to 322.18 million shares valued at N2.43 billion in 4,066 deals.

    “Based on market performance today, we advise cautious trading till the final results of the presidential elections are announced,” Afrinvest Securities stated.

    Analysts at Cordros Capital noted that in the absence of a positive catalyst, as well as the still tense political milieu, investors should trade cautiously in the short term.

    “However, stable macroeconomic fundamentals and compelling valuation remain supportive of recovery in the mid-to-long term,” Cordros Capital stated.

  • Newrest ASL seeks to delist from NSE

    Newrest ASL Nigeria Plc has filed application seeking to delist its entire shares from the Nigerian Stock Exchange (NSE).

    The NSE yesterday confirmed that it has received application from the board of directors of Newsrest ASL, kick-starting the formal regulatory approval process for a voluntary delisting of its shares from the Exchange.

    In the application filed by Newrest ASL’s stockbroker, Helix Securities Limited, the company is seeking to voluntary delist its entire 634 million ordinary shares of 50 kobo each from the Daily Official List of the Exchange.

    Head, Listings Regulation, Nigerian Stock Exchange (NSE), Godstime Iwenekhai, stated that the voluntary delisting was due to inability of Newrest ASL to meet up with the 20 per cent free float requirement of the Exchange.

    The company stated that in line with the provisions of extant rules, it has opened and deposited sufficient funds to settle minority shareholders in an Escrow Account with Zenith Bank Plc to be managed by Meristem Registrars Limited.

    Rule 1.10 of the Rules for Delisting of Equity Securities from the Daily Official List of the Exchange states that: the Issuer shall set aside funds sufficient to purchase the interest of all shareholders who expressed their dissent to the resolution to de-list the Issuer; and the funds shall be domiciled with a Registrar or a Custodian duly registered by and in good standing with the Securities and Exchange Commission.

  • Exchange lifts suspension on Goldlink Insurance

    •Firm posts N149m loss

    The Nigerian Stock Exchange (NSE) has lifted suspension on trading in Goldlink Insurance Plc shares, after the insurance firm submitted its relevant financial statements to the Exchange.

    The NSE had on July 5, 2017 suspended trading in Goldlink Insurance shares and other companies 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.

    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 said Goldlink Insurance, “which was among the companies suspended, has submitted its outstanding audited and interim financial statements to the Exchange” citing the rules that state that “the suspension of trading in the issuer’s securities shall be lifted upon submission of the relevant accounts, provided the Exchange is satisfied that the accounts comply with all applicable rules of the Exchange”. The lifting of suspension took effect on Monday, February 18, 2019.

    Key extracts of the interim report and accounts for the third quarter ended September 30, 2018 showed improvements in the operations of the insurance company, although it remains in loss.

    Goldlink Insurance suffered net loss after tax of N149.26 million in 2018 as against net loss of N243.29 million in 2017. Loss before tax reduced from N222.70 million to N132.44 million while turnover improved marginally from N786.13 million in 2017 to N799.23 million in 2018.

  • SAHCO renews handling contract with Arik Air

    Skyway Aviation Handling Company Public Liability Company (SAHCO) has renewed its ground handling contract with Arik Air.

    SAHCO Managing Director/Chief Executive Officer, Basil Agboarumi , disclosed this during the renewal of ground handling service agreement with Arik Air at the Murtala Muhammed Airport (MMA), Lagos on Monday.

    He promised to deliver quality and improved ground handling services to all its clientele across the nation’s airports especially as it acquires more state-of-the-art equipment for operations.

    Agboarumi disclosed that some new ground handling equipment of the company would in the next few weeks arrive the country, saying that this would further improve the quality of its service to its clients, including Arik Air.

    According to him, since the company was acquired by Sifax Group of Companies about nine years ago, the board had strived to improve the quality of services to its clients, stressing it would continue to grow its services especially as the company is enlisted on the Nigerian Stock Exchange (NSE).

    Read Also: Lawmakers visit Arik Air on fact-finding mission

    On the renewed agreement with Arik Air, Agboarumi emphasised that it portends endorsement and credibility on the services of the ground handling company. The agreement was renewed for another three years.

    He said: “Today is unique for SAHCO. The Initial Public Offering (IPO) for SAHCO begins today (Monday) and we are signing this contract with Arik Air. Arik Air has been with SAHCO for several years and we have witnessed the growth of the company over the years.

    “We are happy that the new management has established the airline on the right path. Arik Air is a good company to do business with. We are very proud to associate with the airline. Wherever Arik Air is mentioned, we will stand up for you. We have new equipment coming in. Some of them are on the high seas, while others are with us here already in the country.

    “We have warehouses in Port Harcourt, Kano, Lagos and Abuja and we are ready to build warehouses wherever they are needed. You have to understand that we are business people. If there is need for business expansion to any airport in the country, we will not hesitate to do that. Not just in Enugu, but across Nigeria. As long as business is expanding to those sides, you will see SAHCO there.

    “You will understand that we are the only ground handling company that operates in all commercially operated airports in Nigeria. So, when it comes to warehouses and we are sure that it will be utilized to the fullest capacity, we will be there.”

  • Obaseki commiserates with late Hayford Alile’s family

    …lauds contributions to Stock Exchange

     

    The Edo State Governor, Mr. Godwin Obaseki has condoled with the family of the late Apostle Hayford Alile.

    In a condolence message issued by the governor on Tuesday in Benin City, he said he was deeply saddened by the news of the passing of the former director-general of the Nigerian Stock Exchange (NSE) and spiritual leader of St. Joseph Chosen Church of God.

    Obaseki said: “I am deeply saddened by the news of the passing of Apostle Hayford Alile, who was a father figure to me and clearly one of the finest personalities in our country.

    “Pa Alile was a courageous and incorruptible professional who championed the global outlook for the Nigerian Stock Exchange through several reforms and pioneered the revolutionary ideas which positioned the Exchange for international reckon.

    “He contributed significantly to the take-off and growth of the country’s organised private sector, through his visionary leadership on the boards of several leading companies across the country and left a good legacy everywhere he worked.

    The governor further said that “Pa Alile was a role model to many of us and we admired how he succeeded in striking a balance between Christian ministry, work and family.

    Read Also: Victory shows APC is preferred party —Obaseki

    “In retirement, his foundation, the Hayford Alile Foundation provided succour and empowerment to the under-privileged and gifted, through scholarships, grants and training.”

    “We have lost a rare gem in the transition of Pa Alile as a state and nation, but we are consoled by the Godly life he led and the indelible marks he left in the minds and hearts of millions of people.”

    Obaseki prayed that “God grants pa Alile’s soul, eternal comfort until we meet to part no more.”

  • Stock market upbeat as capitalisation gains N76bn

    The Nigerian Stock Exchange (NSE) closed on an upbeat note on Friday with key indicators appreciating by 0.58 per cent, while volume of transaction rose by 81.85 per cent.

    The News Agency of Nigeria (NAN) reports that the market capitalisation gained N76 billion or 0.58 per cent to close at N13.271 trillion compared with N13.195 trillion posted on Thursday.

    Also, the All-Share Index which opened at 36,427.22 rose by 209.75 points or 0.58 per cent to close at 36,636.97.

    Cement company of Northern led the gainers’ table during the day, gaining N2.85 to close at N31.35 per share.

    International Breweries followed with a gain of N1.50 to close at N37, while Dangote Sugar also advanced by N1.50 to close at N16.50 per share.

    Forte oil grew by 90k to close at N24, while Dangote Flour added 80k to close at N9.05 per share.

    On the other hand, Seplat topped the losers’ chart, dropping by N25 to close at N625 per share.

    Berger Paint trailed with a loss of 55k to close at N8, while Total shed 20k to close at N199.80 per share.

    NPF Microfinance Bank was down by 15k to close at N1.57, while NSL dropped by 4k to close at 40 per share.

    MedView Air was the toast of investors, trading 100 million shares worth N214 million.

    United Bank for Africa followed with an account of 32.09 million shares valued at N310.84 million, while Zenith Bank traded 31.29 million shares worth N743.05 million.

    Fidelity Bank sold 23.97 million shares worth N45.35 million, while Transcorp traded 12.57 million shares valued N15.06 million.

    Consequently, volume of shares transacted appreciated by 81.85 per cent and 17.11per cent, respectively.

    NAN reports that investors bought and sold 311.36 million shares worth N3.49 billion in 3,735 deals.

    This was 171.22 million shares valued at N2.98 billion achieved in 3,595 deals on Thursday.

  • NSE: Trading resumes on downward trend, down by 0.12%

    The Nigerian Stock Exchange ( NSE ) market indices resumed for the week on Monday on a negative trend dropping by 0.12 per cent.

    The market capitalisation dipped N18 billion or 0,12 per cent to close at N14.724 trillion in contrast with N14.742 trillion posted on Friday.

    Also, the All-Share Index which opened at 40,814.89 shed 50.96 points or 0.12 per cent to close at 40,763.93 due to price depreciation.

    An analysis of the losers’ table showed that Flour Mills recorded the highest loss, shedding N1.65 to close at N33.55 per share.

    Dangote Cement trailed with a loss of N1.50 to close at N248, while Guaranty Trust Bank was down by 95k to N43.90 per share.

    Lafarge Africa lost 85k to close at N43.60, while Dangote Sugar Refinery also dropped by 85k to close at N20.55 per share.

    On the other hand, Nigerian Breweries led the gainers’ table, gaining N3.60 to close at N129.70 per share.

    Forte Oil followed with a gain of N1.85 to close at N39.50, while GlaxosmithKline added N1.70 to close at N32 per share.

    Stanbic IBTC advanced by N1 to close at N50, while FBN Holdings appreciated by 60k to close at N13.45 kobo

    However, the volume of shares traded appreciated by 118.84 per cent as investors bought and sold 530.22 million valued at N7.77 billion transacted in 4,567 deals.

    This was against a turnover of 242.29 million shares worth N3.03 billion exchanged in 5,746 deals on Friday.

    Law Union and Rock Insurance recorded the highest volume of activities for the day, trading 220.75 million shares valued at N253.81 million.

    Zenith International Bank followed with an account of 76.67 million shares worth N2.07 billion, while FBN Holdings sold 24.27 million shares valued at N318.74 million.

    Nigerian Breweries traded 21.02 million shares worth N2.73 billion, while Transcorp exchanged 17.66 million shares valued at N30.74 million.

    NAN

  • Sterling Bank reports N8.5bn profit in 2017

    Sterling Bank Plc on Tuesday reported a profit after tax of N8.5 billion for the financial year ended Dec. 31, 2017. The profit after tax was higher by 65 per cent when compared to N5.2 billion declared for the corresponding period of 2016.

    The bank also posted gross earnings of N113.5 billion in contrast with N111. 4 billion achieved in the comparative period of 2016, indicating an increase of 9.8 per cent.

    The bank, in a result released by the Nigerian Stock Exchange ( NSE ), said the performance was driven by growth in both interest and non-interest income by 11.3 per cent and 87.8 per cent respectively.

    Its net operating income rose by 7.9 per cent, while cost-to-income ratio improved by 260 basis points to 71.5 per cent.

    Customer deposit increased from N584.7 billion in 2016 to N684.8 billion in 2017, a 17.1per cent increase.

    The bank’s shareholders’ funds also grew from N85.7 billion in 2016 to N102.9 billion in 2017, recording a 20.2 per cent increase.

    Commenting on the result, Mr Abubakar Suleiman, Chief Executive Officer of the bank, said the 2017 result highlights positive performance across key financial indice, despite challenging operating conditions, reaffirming its underlying institutional strength.

    Suleiman said the non-interest banking business continued to gain significant traction, adding positively to our bottom-line of the bank.

    He said the performance underscored the commitment of the entire staff of the bank to its corporate goals and the resilience of its business model.

    Suleiman said the bank maintained a disciplined and prudent approach to loan growth in line with its risk management framework.

    According to him, the development resulted in a significant improvement in asset quality as reflected in the reduction of non-performing loan ratio by 370 basis points to 6.2 per cent.

    “Sterling Bank continued to scale its business with support from a well-diversified funding base. For the first time, we recorded N1.1 trillion in total assets from N834.2 billion in 2016 representing a 28.7 per cent growth.

    “We also gained traction in our retail drive with an active customer base that exceeded three million resulting in 17.1 per cent growth in deposits,” he said.

    Read Also: Sterling Bank: Touching lives through non-interest banking

    He said the bank’s liquidity and capital adequacy ratios remained sound and well above the required regulatory benchmark at 33 per cent and 12.2 per cent, respectively.

    Suleiman said the bank prioritised efficiency across its businesses as it progressed on its digital transformation journey by successfully launching “Specta,” an innovative online lending platform which offers personal loans within five minutes.

    On the bank’s 2017/2021 strategic plan, Suleiman said the bank would continue to execute its plans to drive efficiency across the business under the three pillars of agility, digitisation and specialisation in 2018.

    “These pillars will propel us toward sustainable growth by enhancing our ability to innovate; solidify our retail funding base.

    “It will also strengthen our enterprise-wide risk management framework and drive excellent service delivery across all channels to enhance customer experience,’’ he said.

    NAN

  • NSE market indices record marginal loss of 0.09%

    Activities on the Nigerian Stock Exchange ( NSE ) closed on Thursday on a downward trend with the market indices dropping marginally by 0.09 per cent.

    The All-Share Index closed lower at 37.76 points or 0.09 per cent to close at 40,808.48 compared with 40,846.24 achieved on Wednesday.

    Also, the market capitalisation which opened at N14.754 trillion shed N14 billion or 0.09 per cent to close at N14.740 trillion.

    An analysis of the price movement showed that Dangote Cement recorded the highest loss, shedding N2 to close at N258 per share.

    Unilever came second with a loss of N1.90 to close at N52, while UACN declined by 60k to close at N16.90 per share.

    Forte Oil was down by 55k to close at N36.95, while Guinness depreciated by 50k to close at N103 per share.

    On the other hand, Mobil Oil led the gainers’ table, growing by N8 to close at N200 per share.

    Stanbic IBTC followed with a gain of N1.60 to close at N50, while Ecobank Transnational Incorporated gained 85k to close at N18.40 per share.

    Nigerian Breweries increased by 70k to close at N130, while Oando which technical suspension was lifted today grew by 60k to close at N6.60 per share.

    Similarly, the volume of shares traded declined by 44.09 per cent with an exchange of 205.29 million shares valued at N3.12 billion transacted in 4,237 deals.

    This was against the 367.22 million shares worth N5.33 billion traded in 4,462 deals on Wednesday.

    United Bank for Africa emerged toast of investors, exchanging 30.16 million shares valued at N328.41 million.

    Zenith International Bank followed with an account of 28.07 million shares worth N727.86 million, while Guaranty Trust Bank traded 21.824million shares valued at N938.24 million.

    FBN Holdings sold 14.38 million shares worth N175.18 million, while FCMB Group exchanged 13.69 million shares valued at N32.67 million.

    NAN

  • No controversy over lifting Oando ‘s technical suspension, says SEC

    The Secuties and Exchange Commission ( SEC ) yesterday clarified that there was no controversy over the lifting of the suspension on trading in the shares of  Oando Plc.

    The SEC also explained why it directed the Nigerian Stock Exchange ( NSE ) to lift the technical suspension placed on the shares of Oando Plc. 

    There were reports that trading in the shares resumed on Wednesday, halted and then resumed this leading to confusion among capital market watchers.

    Trading on Oando shares had been frozen for six months after SEC ordered the suspension to probe alleged insider trading and the oil company’s shareholding structure. 

    However, the capital market regulator said it’s directive for trading to resume in Oando shares remained sacrosanct.

    Speaking to journalists on the development yesterday in Abuja, the Acting Director-General, SEC, Dr Abdul Zubair said that the suspension on the company’s shares was done in the interest of the market. 

    He said before the decision was reached, the management of Oando  as well as the umbrella body of all shareholders’ union in the company visited the commission and made written submissions for the suspension to lifted. 

    It said that the decision to lift the suspension was sequel to the withdrawal of all litigations by the company and shareholders challenging the suspension. The suspension of shares from trading on the floor of the NSE was usually for a short period, that of Oando extended beyond the normal period owing to litigations instituted by the shareholders and Oando.

    According to him, “as a result of the court cases, the commission as a law abiding agency of government was constrained to continue with the forensic audit or lift the suspension. However with the withdrawal of the suit in February, the forensic audit has resumed while the technical suspension has been lifted.”

    the independent forensic audit by Deloitte Dr Abdul Zubair said is ongoing and the preliminary result is expected any time soon. The presentation of the preliminary findings of Deloitte he said, will not be the end of the forensic audit as Deloitte is required to be independent and unlimited by time to carry out a thorough audit.

    “The shares of Oando Plc were placed on technical suspension in October 2017 upon the announcement of forensic audit which aimed to protect investors as a short term measure.  

    “Suspensions are typically intended for a short period to ensure market stability and thereafter lifted to allow market dictates. However, the suspension of the shares of Oando plc was prolonged due to several litigations by Oando and other shareholders contesting the propriety of the forensic audit and technical suspension. All “Litigations have now been withdrawn, 

    Zubair said contrary to speculations that there was a disagreement between SEC and the NSE in the process of lifting the suspension, the commission is not in dispute with any agency and that the Commission was aware that its letter directing the “immediate” lifting of suspension was subject to the 48 hours rules of the capital market.