The Nation Newspaper

Tag: Nigerian Stock Exchange (NSE)

  • FBN Holdings targets non-performing loans ratio of 19% in 2017

    FBN Holdings targets non-performing loans ratio of 19% in 2017

    The management of FBN Holdings Plc on Thursday said it was targeting a Non-performing Loans (NPL) ratio of less than 20 per cent for the financial year ending Dec. 31, 2017.

    Mr. UK Eke, FBN Holdings Managing Director, stated this at the company’s facts behind the figures at the Nigerian Stock Exchange (NSE) in Lagos.

    Eke said that the company’s NPL would be less than 20 per cent by second quarter of 2017 against 26 per cent in the first quarter.

    The News Agency of Nigeria (NAN) reports that the company made impairment charge from credit losses of N226 billion in 2016 and N280m. 8 billion in the first quarter of 2017.

    He explained that there were five major accounts that constitute the company’s NPL, adding that one of the accounts would drop off by June 30.

    Eke stated that the company was awaiting government assent to drop off the second major NPL account, Atlantic Energy.

    He said that the 500 million dollars owed the company by Atlantic Energy would drop off from its NPL once the oil bloc was assigned to a new partner by the government.

    The group managing director expressed optimism that the five NPLs accounts would be resolved very soon.

    “There are no fresh NPLs forming in our books, the books are clean and our focus on lending is now on manufacturing sector,” he stated.

    Eke added that the company had reviewed its credit process and strengthened governance framework to ensure improvement in asset quality.

    He said that the company had recruited a new chief risk officer to drive the new credit architecture and build a robust and sustainable credit underwriting practice.

    Eke said that the company had restructured credit terms of obligor with compelling business case to match cash flows.

    He said that the company’s NPL would be in single digit by 2019, while cost of risk would be less than two per cent.

    Eke said that the company would strengthen digital banking strategy to achieve 25 per cent migration of the bank active customer base to digital channels by 2019.

    He, however, assured shareholders of enhanced dividend in the years ahead, noting that the commercial banking arm had not contributed dividend to the holding company in the past two years.

    Eke said that the capacity of the holding company to distribute dividend would be enhanced by the time the commercial bank started contributing dividend.

    He said that the decision of the commercial bank not contributing dividend to the group was strategic to enable the company to clean up its book.

    Earlier, Mr. Oscar Onyema, NSE Chief Executive Officer, commended the company for using the facts behind the figures platform to engage the market on its strategic and operational development.

    Onyema commended the company for churning out strong fundamentals in spite of the challenging operating environment witnessed in 2016 financial year.

    He said that the exchange would continue to provide the platform for companies to meet their strategic objectives.  (NAN)

     

  • NSE launches X-Academy to boost capital markets investment

    NSE launches X-Academy to boost capital markets investment

    The Nigerian Stock Exchange (NSE) on Thursday launched X-Academy, a knowledge-platform designed to provide education services to individuals for better understanding of various aspects of the capital markets.

    Mr Oscar Onyema,  NSE Chef Executive Officer, said at the product launch on Lagos that X-Academy would help in strengthening financial literacy and enhance investment in the capital market.

    Onyema said that X-Academy offered a wide range of courses geared towards bridging the knowledge gap of dealing members, issuers, investors and the general public about products and services of the capital market.

    He stated that the establishment of X-Academy was consistent with NSE tradition of pioneering far-reaching innovations within the Nigerian capital market.

    Onyema added that the product would  feed directly into the National Financial Inclusion Strategy (NFIS) which was launched by the Federal Government of Nigeria in 2012 to reduce the number of adult Nigerians who were financially excluded, from 46.3 per  cent  in 2010 to 20 per cent by 2020.

    He said that the training programmes at X-Academy woukd provide individuals and businesses with a robust and effective array of training solutions that would  ensure participants were abreast with trends in the rapidly evolving financial markets.

    “As a socially responsible organisation devoted to enhancing the fortunes of Nigerians and our investors, we are confident that participants of programmes offered by X-Academy will be better positioned to make informed financial decisions”, Onyema said.

    Ms Pai Gamde , NSE Acting Head, Corporate Services Division, said  X-Academy would enhance financial literacy in Nigeria and equip professionals with requisite skill set to deliver innovative solutions for the challenges confronting our financial sector.

    Gamde said that the programmes offered by X-Academy would be facilitated by seasoned and certified subject matter experts with both local and international exposure to practical experience.

    “Partnerships with professional bodies to ensure that courses
    taken at X-Academy are awarded points under the Continuous Development Programmes of these bodies.

    “This initiative could not have come at a better time when the market is beginning to recover from the waning investors’ confidence.

    “The Exchange has taken into great consideration the state of the economy as well as income levels to make these programmes affordable to Nigerians”, she added.

    Gamde added that X-Academy would in 2017 offer programmes built around six broad themes, which include: Listings and Trading on the NSE, Products of the NSE, Market Data and Technology, Financial Education, Corporate Governance, and Risk Management and Compliance.

    She said that the first training of the X-Academy, titled Legal and Risk Aspects of Derivatives and Central Counterparty Clearing (CCP) Transactions, was scheduled for June 12 to 15 in Lagos.

  • NSE market capitalisation increases further by N76bn

    NSE market capitalisation increases further by N76bn

    The upward trend continued on the Nigerian Stock Exchange  (NSE) on Wednesday for the second consecutive day with the market capitalisation increasing by N76 billion.

    The News Agency of Nigeria  (NAN) reports that the market capitalisation which opened at N10.121 trillion, rose by N76 billion or 0.75 per cent, to close at N10.197 trillion.

    In the same vein, the All-Share Index inched 221.72 points or 0.76 per cent, to close at 29,498.31, compared with the 29,276.59 recorded on Tuesday due to price gains by some blue chips.

    An analysis of the price movement indicated that Dangote Cement led the gainers’ table with a gain of N7.90, to close at N175 per share.

    It was followed by Nestlé with a gain of N5.01 to close at N875.01 and Total  garnered N5 to close at N265 per share.

    Nigerian Breweries advanced by N3.50 to close at N149.50, while Unilever increased by N1.74, to close at N37.49 per share.

    On the other hand, Seplat topped the losers’ chart, dropping by N81.51 to close at N351.99 per share.

    7UP trailed with a loss of N4.98 to close at N94.77 and Guaranty Trust Bank shed N1.78 to close at N34.01 per share.

    Stanbic IBTC lost 75k to close at N26, while Zenith International Bank declined by 55k to close at N18.95 per share.

    NAN reports that the banking equities maintained leadership as the most sought after, with FBN Holdings recording the highest volume, trading 62.19 million shares worth N318.89 million.

    It was followed by Diamond Bank with an exchange of 41.86 million shares valued at N40.38 million and Fidelity Bank traded 38.78 million shares worth  N40.72 million.

    United Bank for Africa exchanged 34.95 million shares valued at N264.76 million, while Zenith International Bank sold 26.57 million shares worth N506.29 million.

    In all, the volume of shares traded dropped by 58.78 per cent, with a turnover of 343.19 million shares valued at N3.34 billion transacted in 4,905 deals.

    This was in contrast with the 832.52 million shares worth N7.59 billion transacted in 6,259 deals on Tuesday.

  • Jaiz bank NPL within tolerable limits, says MD

    Jaiz bank NPL within tolerable limits, says MD

    As the incidences of Non-Performing Loan (NPL) continue to dog bank’s in Nigeria, Jaiz bank plc Wednesday disclosed that its exposure to NPLs in the short to medium term was within tolerable limits.

    Managing Director of the bank, Mr. Hassan Usman told journalists in Abuja Wednesday that Jaiz bank was not heavily or significantly exposed to the oil sector, but the bank’s exposure is to real estate.

    Hassan Usman added that Jaiz bank has limited exposure because Forex: is important because “we do not have the exposure that other banks have because we do not borrow or invest in dollars.”

    Speaking on the foreign exchange situation in the country now, Usman noted that Jaiz bank “makes money from selling Forex and our counterparts/customers depend on forex for various reasons. If they don’t get dollars on time our exposure to them is intertwined.”

    Hassan Usman also justified listing of the bank’s shares in the Nigerian Stock Exchange (NSE) on twins reasons of enhancing transparency and openness in the  bank’s activities.

    Usman said the gesture of listing Jaiz’ shares “fulfilled the bank’s pledge in 2012 at its Initial Public Offerings (IPOs), that its shares would be publicly listed at the Exchange to create additional values for its shareholders.”

    The Jaiz MD was optimistic that the bank’s outlook for 2017 will be much better than 2016, stressing that “if current policies on forex and infrastructure provision is maintained, 2017 will be a good year.”

    Jaiz bank he said has challenges like any growing institution. One of such challenges he said has to do with perception. According to him, “this product is not a religious product it is a mode of financing that tries to provide goods and services to people who cannot afford to buy such goods and services directly.”

    Usman lamented that the most important challenge facing the bank “is awareness by all stakeholders but this is being overcome. Islamic banking is not about the creed. There are issues about specifics. Even those clamouring did not fully know or understand what Islamic banking was all about. They thought it was charity, when they found out, that they had to pay for services there was a rude shock, we normally try to explain this. It is an Organization set up to make profit, create value and be sustainable.”

    Other challenges he pointed out are the enabling environment like infrastructure for non-interest banking like liquidity instruments. The Ministry of finance he said “had promised us last year that by the first quarter of this year, there will be sukuk. Another challenge is the limited number of qualified trained manpower to manage Islamic banking.”

    Inspite of these challenges, Hassan Usman noted that “the product (Jaiz bank) has proved itself to be sustainable. We now have national franchise branches in South West and South-South and we are opening more branches in other parts of the country.”

     

  • DMO lists FGN Savings Bond on NSE to service budget deficit

    DMO lists FGN Savings Bond on NSE to service budget deficit

    The Debt Management Office (DMO) on Wednesday listed series 1 of the Federal Government of Nigeria (FGN) Savings Bond worth N2.067 billion at N1,000 on the Nigerian Stock Exchange  (NSE).

    Dr Abraham Nwankwo,  DMO Director-General,  said in Lagos that the listing became imperative to guarantee liquidity of the bond.

    The News Agency of Nigeria (NAN) reports that the savings bond, the first of its kind in Nigeria was opened to the investing public by way of offer for subscription over a five-day offer period.

    The five-day period began on March 13, and would end on March 17, with N2. 067 billion raised from the retail market at 13.01 per cent coupon.

    Abraham stated that the bond would help to finance the nation’s budget deficit.

    According to him, the bond with subscription units of 2,577 will be issued monthly in tenors of two and three years, with quarterly payment of interest to investors.

    Nwankwo said that the response to the bond had been huge as individuals made enquiries with interest to participate in the bond.

    According to him, the bond will provide retail investors and ordinary Nigerians the opportunity to partake in infrastructural development of the country as well as generate good returns on their investments.

    “Over a year ago, the NSE mentioned the possibility of introducing retail bonds and we started working on it, with the team on NSE with the CBN, Securities and Exchange Commission and with other agencies that are relevant.

    “The FGN bond is meant for every Nigerian both at the grassroots as well as the common man.

    “The objectives of the bond had been achieved from the beginning as about 95 per cent of the subscriptions were from average individual Nigerians.

    “This means the grassroots’ common man dominate the FGN Saving Bonds,” Abraham stated.’’

    He said that the success showed that the initiative taken by the financial system and the NSE and other players in the market including stock broking community, had yielded fruits in terms of financial inclusiveness.

    The director-general commended all the stakeholders for the successful issuance of the first FGN Savings bond and urged Nigerians to be optimistic on the future of the nation’s economy.

    Also speaking, Mr Haruna Jalo-Waziri, NSE Executive Director, Capital Markets, said that the exchange was delighted with the savings bond listing which would mature in March 2019.

    Jalo-Waziri said that the bond among others would help to enhance the savings culture among Nigerians, while providing all citizens irrespective of income level an opportunity to contribute to national development.

    He stated that the FGN Savings Bond was safe and backed by the full faith and credit of the Federal Government of Nigeria, with quarterly coupon payments to bondholders.

    According to him, an interested investor needs to approach any of the accredited brokers and require only the sum of N5, 000 to subscribe with additions in multiple of N1, 000 subject to a maximum amount of N50 million.

    “We are pleased to list the series 1 of this innovative investment offering that caters to the retail segment of the Nigerian Capital Market.

    “The off take of the first tranche underpins the efforts of the Federal Government to continue to work with stakeholders to deepen the capital market while delivering value to investors at all income levels.

    “We look forward to continue the collaboration with DMO to list subsequent series of the Savings Bond”, Jalo-Waziri added.

  • NSE market indicators drop 0.31 percent

    NSE market indicators drop 0.31 percent

    Activities on the Nigerian Stock Exchange (NSE) on Tuesday maintained a negative posture as the market indices dropped by 0.31 per cent.

    The News Agency of Nigeria (NAN) reports that the market capitalisation lost N27 billion or 0.31 per cent to close at N8.791 trillion against N8.818 trillion achieved on Monday, amid profit taking.

    In the same vein, the All-Share Index which opened at 25,485.17 shed 78.45 points or 0.31 per cent to close at 25,406.72.

    An analysis of the price movement table showed that major blue chips posted losses, with Total leading with a loss of N12.90 to close at N260 per share.

    Dangote Cement trailed with a loss of N3 to close at N162 and Lafarge Africa dipped N1.05 to close at N38.85 per share.

    PZ industries was down by 59k to close at N14, while Ecobank Transnational Incorporated declined by 45k to close at N8.55 per share.

    On the other hand, Seplat led the gainers’ table, growing by N36.82 to close at N396.10 per share.

    7UP followed with a gain of N3 to close at N83 and Nestle appreciated by N1 to close at N750 per share.

    International Breweries gained 75k to close at N15.75 and Guaranty Trust Bank advanced by 45k to close at N26.95 per share.

    In spite of the drop in market indicators, the volume of shares traded closed higher as investors bought and sold 916.26 million shares valued at N2.41 billion transacted in 3,342 deals.

    NAN reports that this was in contrast to a turnover of 561.48 million shares worth N2.47 billion exchanged in 3,032 deals on Monday.

    Niger Insurance was the toast of investors, accounting for 724.31 million shares valued at N391.13 million.

    Diamond Bank followed with 29.41 million shares worth N25. 59 million and United Bank for Africa traded19.85 million shares valued at N109.96 million.

    FBN Holdings sold 17.67 million shares worth N54.47 million and Fidelity Bank exchanged 15.68 million shares valued at N12.42 million.

     

  • Market operators urge CBN to reduce interest rates to accelerate growth

    Market operators urge CBN to reduce interest rates to accelerate growth

    Some capital market operators on Monday advised the Central Bank of Nigeria (CBN) and Debt Management Office (DMO) to reduce yield rates on Treasury Bills (TBs) and bonds to accelerate economic growth.

    They told the News Agency of Nigeria (NAN) in Lagos that the two agencies should bring down TB and bonds yield rates to encourage banks to lend to the real sector.

    Malam Garba Kurfi, the Managing Director, APT Securities and Funds Ltd. in Lagos, said commercial banks had abandoned their core banking duties to seek haven in bonds and TBs due to their high yield rates as high as 18 per cent.

    Kurfi said that banks should be compelled to lend to the manufacturing sector to accelerate economic growth by reducing the bonds and TB yield rates.

    According to him, interest accruable to these instruments should be reviewed down to 13.01 per cent as it is the case with the Federal Government savings bonds that closed on March 17.

    Kurfi also urged the apex bank to pursue positive economic policies that would sustain the current gains in the foreign exchange market and inflation rate.

    He suggested that the Monetary Policy Rate (MPR) should be lowered to 13 per cent in the near future with the appreciation of the naira and further drop in inflation rate in view.

    Kurfi expressed optimism that stock market activities would close on the upbeat this week with investors’ anticipation of positive 2016 earnings from commercial banks.

    He said that more banks were expected to release their results this week to beat March 31 deadline stipulated by the Nigerian Stock Exchange (NSE) for companies whose financial year ended on Dec. 31.

    NAN reports that only three banks namely – Zenith Bank, Access Bank and Guaranty Trust Bank-  have released their 2016 audited results so far.

    Mr Ambrose Omordion, the Chief Operating Officer, InvestData Ltd., advised policy makers to embrace friendlier policies to sustain economic growth.

    Omordion said that transaction of the NSE would likely oscillate this week due to profit booking and reactions to expected good earnings as more financial results were expected in the market.

    He urged investors to combine technical and fundamental analyses in trading decisions to know the support and resistance levels.

    NAN reports that a turnover of 1.03 billion shares worth N7.98 billion were exchanged by investors in 13,441 deals on the NSE last week against 1.02 billion shares valued at N12.46 billion `traded in 16,400 deals in the preceding week.

    The Financial Services Industry led the activity chart with 853.41 million shares worth N4.27 billion in 7,904 deals, thus contributing 82.91 per cent and 53.50 per cent to the total equity turnover volume and value terms, respectively.

    The Oil and Gas Industry followed with 80.25 million shares valued at N1.15 billion traded in 1,443 deals.

    The third place was occupied by Conglomerates sector with turnover of 45.77 million shares worth N83.47 million achieved in 596 deals.

    The NSE All-Share Index appreciated by 415.15 points or 1.64 per cent to close at 25,653.16 against 25,238.01 achieved in the preceding week.

    The market capitalisation, which opened at N8.734 trillion, appreciated by N144 billion or 1.64 per cent to close at N8.878 trillion

  • NAHCO appoints Arc Bello as new chair

    A new Chairman has been appointed by the Board of the Nigerian Aviation Handling Company Plc (nahco aviance).

    He is Arc Usman Arabi Bello, who effectively takes over from the Vice Chairman, Dennis Hasdeneufel who had been acting in that position since October last year.

    In a statement by the Company, Arc Bello emerged Chairman of the foremost Aviation handling Company after a meeting of the board which held on January 12, 2016. 

    The statement pointed out that the Nigerian Stock Exchange (NSE) had been duly notified of the appointment as required by listing rules.

    Before his appointment, Bello was the Chairman of NAHCO Free Trade Zone (NFZ).

    A widely-travelled property expert, Bello is also an administrator of repute. His directional managerial responsibilities cover the consultancy consortium Ericon Bello & Associates and its subsidiary, ArabiBello & Associates, where he is principal partner.

    He sits on the boards of quite a number of companies including HNB Security and Protection Company Limited as Chairman; Bello Group of Companies and Zycom Surveillance Inc. 

    Architect Bello’s professional career in Architecture and other related fields has been purposeful and productive. A long-standing member of the Nigeria Institute of Architects and Architects Registration Council of Nigeria, Bello has brought his own signature approach to the design and execution of buildings to enrich the built environment. His works are legion in parts of Nigeria notably Kaduna, Yola, Lagos and Abuja. 

    Bello is widely expected to give focused guidance to the executive management of the NAHCO. 

    His appointment followed the resignation of the former Chairman, Mallam Suleiman Yahyah, in October last year on health ground.

    Also appointed to the board of the Company as a non-executive Director is Mr. Femi Olubanwo. 

    He is a member of various laws and business related professional bodies including: Nigerian Bar Association, Nigerian Maritime Law Association, World Trade Centre of Nigeria and International Trademark Association.

     He is also a member of the Solid Minerals Sector Steering Committee of BPE, member, Presidential Technical Committee on Development of Coal and Chairman, Committee to Create Code of Governance/Ethics for Capital Markets Regulators.

    Olubanwo founded and practised as Femi Banwo & Co, Associate, Chris O. Okunowo & Co and established Banwo & Ighodalo, in partnership. He is on the Board of many companies, covering communications, education and commerce.

    He also has series of professional publications to his name.

  • NSE sustains negative trading

    NSE sustains negative trading

    Activities on the Nigerian Stock Exchange (NSE) on Tuesday were on a downward trend for the second trading day, with the market indices declining by 0.17 per cent.

    The News Agency of Nigeria (NAN) reports that the market capitalisation lost N15 billion to close at N9.132 trillion compared with N9.147 trillion on Monday.

    Similarly, the All-Share Index which opened at 26,586.56 lost 45.69 points or 0.17 per cent to close at 26,540.87 due to price losses.

    The downturn was largely boosted by value depreciation recorded in some medium and large capitalised stocks such as Forte Oil, Unilever, GT Bank and Total Nigeria, among others.

    Forte Oil recorded the highest price loss to lead the losers’ chart, dropping N10.22 to close at N94.69 per share.

    Total trailed with a loss of N2.90 to close at N277.10 and Unilever lost N1.60 to close at N36 per share.

    GT Bank dipped 48k to close at N24.80, while Okomu Oil shed 21k to close at N39.79 per share.

    Conversely, Guinness led the gainers’ table with a gain of N2.50 to close at N87.50 per share.

    Julius Berger garnered N1.83 to close at N38.38 and Lafarge Wapco increased by N1 to close at N40 per share.

    NASCON appreciated by 38k to close at N7.60, while Access Bank chalked up 13k to close at N5.69 per share.

    The banking equities remained the most traded sector with UBA emerging the most active with a turnover of 75.53 million shares worth N345.18 million.

    It was followed by FBN Holdings, having accounted for 29.13 million shares valued at N99.79 million, while Zenith Bank sold 25.63 million shares worth N369.79 million.

    GT Bank traded 17.52 million shares valued at N436.76 million and Sterling Bank accounted for 15.66 million shares worth N11.28 million.

    In all, investors bought and sold a total of 248.71 million shares valued at N3.10 billion exchanged in 3,271 deals against 262.89 million shares worth N1.75 billion achieved in 2,789 deals on Monday.

  • NSE: Capital trading appreciates by 0.84%

    NSE: Capital trading appreciates by 0.84%

    Market indices of the Nigerian Stock Exchange (NSE) on Friday improved by 0.84 per cent amid interim dividend declared by some quoted companies.

    The News Agency of Nigeria (NAN) reports that the All-Share Index appreciated by 229.33 points or 0.84 per cent to close at 27,650.32 points compared with 27.420.99 achieved on Thursday.

    Similarly, the market capitalisation which opened at N9.42 trillion rose by N78 billion to close at N9.50 trillion.

    Mr Ambrose Omordion, the Chief Operating Officer, InvestData Ltd, attributed the positive market performance to interim dividends declared by some quoted companies and impressive second quarter results.

    Omordion said that consistency demonstrated by interim dividend-paying companies in spite of the challenging business environment and huge provision for bad loans, boosted investors

    He said that low prices of equities contributed to the market growth, but added that sustainability of the current trend was very slim due to poor liquidity.

    7UP recorded the highest price gain to lead the gainers’ chart, growing by N5.45 to close at N114.45 per share.

    Nigerian Breweries followed with N3.38 up-lift to close at N138.01 per share and Guinness garnered N3.01 to close at N93 per share.

    Unilever increased by N1.83 to close at N38.58 per share, while UACN chalked up 89k to close at N19.90 per share.

    Conversely, Mobil topped the laggards’ table with a loss of N5.29 to close at N162.65 per share.

    Total dipped N5 to close at N244 per share and MRS dropped N1.92 to close at N36.65 per share.

    Forte Oil decreased by N1.20 to close at N160.10 per share, while International Breweries lost 61k to close at N18.39 per share.

    NAN also reports that investors bought and sold 314.60 million shares worth N2.77 billion.

    This was against the 313.28 million shares valued at N3.60 billion exchanged in 2,883 deals on Thursday.

    An analysis of the activity chart showed that FBN Holdings was the most active with a total of 66.88 million shares worth N209.17 million.

    GT Bank came second with an exchange of 50.58 million shares valued at N1.27 billion and Access Bank sold 38.82 million shares worth N216.24 million.

    Transcorp traded 23.53 million shares valued at N24.34 million and UBA transacted 22.14 million shares worth N98.97 million.