The Nation Newspaper

Tag: Nigerian Stock Exchange (NSE)

  • Nigeria equities shed 0.06%

    Nigeria equities shed 0.06%

    Transactions on the Nigerian Stock Exchange (NSE) on Thursday ended on a negative trend, reversing the three consecutive days upward growth of stocks.

    The News Agency of Nigeria (NAN) reports that the market indicators posted marginal loss, dropping by 0.06 per cent due to price loses achieved by some highly capitalised stocks.

    The All-Share Index lost 16.26 points or 0.06 to close lower at 27,420.99 points compared with 27,437.25 posted on Wednesday.

    Similarly, the market capitalisation which opened at N9.42 trillion shed N6 billion to close at N9.42 trillion.

    Guinness recorded the highest price loss to lead the losers’ pack with N3.51 loss to close at N89.99 per share.

    Total followed with N2 to close at N249 per share, while Mobil Oil dipped N1.73 to close at N167.94 per share.

    GT Bank dropped 30k to close at N24.70 and Cement Company of Northern Nigeria (CCNN) lost 20k to close at N5.81 per share.

    On the other hand, Lafarge Africa topped the gainers’ table with a gain of 70k to close at N56 per share.

    Zenith Bank followed with 30k to close at N15.30 and Stanbic IBTC appreciated by 15k to close at N14.1 per share.

    Eterna Oil grew by 12k to close at N2.62 and Africa Prudential increased by 9k to close at N2.61 per share.

    Further breakdown of market transactions indicated that United Bank for Africa was investors delight, exchanging 120.73 million shares worth N507.69 million.

    It was trailed by Diamond Bank which accounted for 36.84 million shares valued at N39.96 million and GT Bank with 36.76 million shares sold at N917.31 million.

    Access Bank came fourth with a total of 15.26 million shares valued at N81.71 million, while FBN Holdings traded 14.59 million shares worth N45.87 million.

    NAN also reports that the volume of shares traded closed higher by 5.31 per cent as investors bought and sold 313.28 million shares valued at N3.60 billion in 2,883 deals.

    This was in contrast with 297.48 million shares worth N2.29 billion achieved in 3,438 deals on Wednesday.

  • NSE hosts The Nation at 10

    NSE hosts The Nation at 10

    The management of The Nation Newspaper on Monday visited the Nigerian Stock Exchange (NSE) to mark the 10 years anniverary of the paper.

    Speaking at the NSE office, the Managing Director of The Nation, Mr Victor Ifijeh, noted that the media house looks forward to being listed on the Nigerian Stock Exchange soon.

    To celebrate The Nation at 10, the Chief Executive Officer (CEO) of the NSE, Oscar Onyema, presented the media house with a replica of the closing gong even as The Nation MD sounds the closing gong.

    The Nation MD was accompanied on the trip by Soji Omotunde, General Manager, Corporate Services; Ade Odunewu, Executive Director, Finance and Administration Managing Editor, Online, Business Editor, Simeon Ebule and Stock Exchange Editor, Taofeek Salako.

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  • Dangote Cement posts N292bn revenue for Q2

    Dangote Cement posts N292bn revenue for Q2

    Africa’s leading cement producer, Dangote Cement Plc. has reported a revenue of N292 billion in the second quarter ended June 30th 2016 indicating an increase of 20 percent over N242 billion posted in the corresponding period in 2015.

    According to the reports filed with the Nigerian Stock Exchange (NSE), the company’s Profit for the period stands at N106.3 billion, representing a slight decline by 3 percent from N123.1 billion declared a year earlier.

    Chief Executive Officer of the cement company Onne Van der Weijde in a statement said “We have achieved a commendable result, given the very challenging situation in our main market and general economic weakening across Africa.”

    He said the management would continue to respond to the prevailing operating environment with strategically thought measures for the organization to maintain its leadership and profitability.

    On expansion, he added: “While the company remains committed to its ambitious plans, we are taking a more measured approach to the rollout of new capacity across Africa.”

    Dangote Cement has more than doubled production capacity since 2013 and said in April it may increase cement capacity by a further 77 percent by the end of 2019. Foreign-exchange constraints in Nigeria have prompted the company to reconsider the pace of its expansion and now believes a five-year building program is more appropriate, it said.

    Earnings in the period were affected by lower selling prices, higher fuel costs and the fact that several new plants are still in less-efficient start up phases, the company said.

    Cement sales volumes in the period increased 60 percent, bolstered by record volumes in its home market, where the company announced a price cut last September, as well as new plants elsewhere on the continent. The devaluation of the Naira will affect costs in the country and Dangote will seek to protect its profit margins, Van der Weijde said.

  • Skye Bank shares drop further by 8.42%

    Skye Bank shares drop further by 8.42%

    Skye Bank’s shares on Friday on the Nigerian Stock Exchange (NSE) dropped further by 8.42 per cent following investors continued reaction to removal of the bank’s board and executive management.

    The Central Bank of Nigeria (CBN) removed the board and management of the bank on Monday, and replaced them with another, a measure it said, was to redirect the bank.

    The News Agency of Nigeria (NAN) reports that the trading on Friday, the bank lost 8k to close at 87k per share.

    The bank’s shares had depreciated by 9.5 per cent on Monday, forcing it to close at 95k per share.

    A breakdown of the activity chart on the Exchange showed that investors sold 21.59 million shares of Skye Bank valued at N18.79 million.

    Alhaji Rasheed Yussuf, immediate past President, Association of Stockbroking Houses of Nigeria (ASHON), said that the shares of the bank were on offer but nobody was buying.

    Yussuf urged the new management of the bank to map out strategies to assure and reassure shareholders and investors.

    Further analysis of the losers’ table showed that Forte Oil lost N8.93 to close at N171.90 per share, while Beta Glass dipped N4.17 to close at N38.66 per share.

    Lafarge Wapco shed N3.35 to close at N63.65 per share and GlaxosmithKline dropped N2.24 to close at N20.78 per share.

    Consequently, the All-Share Index shed 147.08 points or 0.51 per cent to close at 28,854.98 compared with 29,002.06 achieved on Monday.

    Also, the market capitalisation which opened at N9.96 trillion lost N50 billion to close at N9.91 trillion.

    On the other hand, Stanbic IBTC gained N1.54 to close at N16.60 per share.

    Oando gained 68k to close at N8.05 per share, while Dangote Cement garnered 50k to close at N191.50 per share.

    Guinness improved by 49k to close at N99.99 and Zenith International Bank gained 33k to close at N15.45 per share.

    NAN reports that GT Bank recorded the highest volume of activities, exchanging 32.47 million shares worth N750.33 million.

    FBN Holding came second with an exchange of 26.35 million shares valued at N100.52 million, while Oando sold 25.52 million shares worth N204.52 million.

    Access Bank accounted for 23.17 million shares worth N132.02 million.

    In all, a total of 234.96 million shares valued at N2.29 billion were traded by investors in 4,145 deals.

    This was in contrast with 142.84 million shares worth N1.35 billion exchanged in 3,321 deals on Monday.

     

  • NSE market indicators down by 1.04%

    NSE market indicators down by 1.04%

    Trading activities on the Nigerian Stock Exchange (NSE) resumed on Monday on a negative note with the market indices dropping by 1.04 per cent, amid sell pressure.

    The News Agency of Nigeria (NAN) reports that the All-Share Index lost 303.34 points or 1.04 per cent to close at 29,002.06 compared with 29,305.40 posted on Friday.

    Also, the market capitalisation which opened at N10.064 trillion shed N104 billion to close at N9.960 trillion.

    A breakdown of the price movement showed that Forte Oil topped the losers’ chart, dropping by N9.51 to close at N180.83 per share.

    Total Nigeria Plc trailed with a loss of N8.52 to close at N181.48, while Guinness shed N5.47 to close at N99.50 per share.

    Lafarge Africa dropped by N3 to close at N67 and Nigerian Breweries lost N1.10 to close at N130 per share.

    Conversely, Oando led the gainers’ table, growing by 68k to close at N7.37 per share.

    Ven Leer followed with a gain of 46k to close at N9.69, while Redstar appreciated by 21k to close at N4.51 per share.

    Continental Reinsurance increased by 5k to close at N1.15 and NPF Micro Finance Bank also surged by 5k to close at N1.25 per share.

    NAN also reports that FBN Holdings emerged the most traded stock, exchanging 21.79 million shares worth N83.12 million.

    It was trailed by Zenith International Bank with 12.51 million shares valued at N189.69 million, while Access Bank sold 11.69 million shares worth N66.19 million.

    Skye Bank transacted 10.83 million shares valued at N10.39 million and UBA sold 9.37 million shares worth N42.84 million.

    In all, investors bought and sold 142.84 million shares valued at N1.35 billion achieved in 3,321 deals.

    NAN reports that this was in contrast with 189.74 million shares worth N2.23 billion transacted in 3,486 deals on Friday.

  • Companies in last-minute rush to meet earnings’ deadline

    Companies in last-minute rush to meet earnings’ deadline

    Ahead of tomorrow’s deadline for quoted companies to submit their audited reports and accounts for the past business year, several companies are making last-minute efforts to meet the deadline and avoid the poor corporate governance tag and sanction of the Nigerian Stock Exchange (NSE).

    Post-listing rules at the NSE require quoted companies to submit their earnings reports, not later than three months after the expiration of the period. Most quoted companies including all banks, major manufacturers, oil and gas companies, breweries and cement companies use the 12-month Gregorian calendar year as their business year. The business year thus terminates on December 31.

    NSE’s regulatory filing calendar indicates that the deadline for submission of annual report for companies with Gregorian calendar business year ended December 31, 2015 is tomorrow, Thursday, March 31.

    The Nation’s check at the close of the market at the yesterday indicated that less than 30 per cent of affected companies had submitted their earnings reports. Companies that have submitted their annual report included Forte Oil, Nigerian Breweries, Nestle Nigeria, Unilever Nigeria, GlaxoSmithKline Consumer Nigeria, Dangote Sugar Refinery, Access Bank, Zenith Bank International, Guaranty Trust Bank, United Bank for Africa (UBA), Sterling Bank, AXA Mansard Insurance, Africa Prudential Registrars, United Capital, Dangote Cement, Lafarge Africa, Ashaka Cement, Seplat Petroleum Development Company and Transcorp Hotels.

    Market sources said several companies were finalising arrangements to submit their reports before the close of work tomorrow to beat the close-of-business deadline.

    Notwithstanding the expected rush tomorrow, there are indications that some 70 per cent of the affected companies may miss the earnings deadline.

    Market sources said they expected the momentum of submission to be high between today and tomorrow, since compliance within deadline is generally regarded as a measure of good corporate governance. Besides, companies that failed to meet the earnings deadline will also be sanctioned by the Exchange. They are liable to monetary fines and naming-and-shaming publication of their names.

    However, the NSE can grant waiver and extension to companies due to special consideration such as companies awaiting regulatory approval.

    A source in the know at the NSE said some companies have filed for extension of the earnings deadline to enable them finalise their annual report.

    Stanbic IBTC Holdings at the weekend indicated it has applied for extension of the earnings deadline to enable the company complete the audit of its accounts.

    NSE tags and applies fines on companies that fail to meet earnings reports’ deadline. Under the corporate governance and rules compliance assessment report known as X-Compliance Report, NSE identified four different kinds of tags or symbols to alert investors about the status of each quoted company. These include below listings standard (BLS), the first degree alert level indicating a company that has not complied with post listing rules such as late submission of financial statements, unauthorised publication, management failures among others.

    Also, financial services companies such as bank and insurance companies awaiting regulatory approval will carry the appropriate symbol of awaiting regulatory approval (ARA). Companies that are undergoing a capital reconstruction exercise including supplementary issue, share buyback, split, share reconstruction among others will be tagged with capital reconstruction exercise (CRE) while companies that have indicated that they will be delisting or companies that are being delisted at the instance of the regulator would be flagged with delisting in process (DIP) symbol.

  • Wema Bank gets April deadline to restructure capital

    Wema Bank gets April deadline to restructure capital

    The Nigerian Stock Exchange (NSE) has given Wema Bank April 2014 deadline to restructure its capital to comply with the minimum requirement of 20 per cent free float of shares of companies listed on the main board of the NSE.

    Companies listed on the Exchange are required to maintain a minimum free float for the set standards under which they are listed to ensure that there is an orderly and liquid market in their securities. The free float requirement for firms on the main board is 20 per cent while companies on the second board, otherwise known as Alternative Securities Market (ASEM) are required to have 15 per cent free float.

    A report on free float deficiencies on the NSE obtained by The Nation indicated that Wema Bank is slightly under the 20 per cent free float with a free float of 19.64 per cent.

    According to the NSE, Wema Bank is expected to comply adjust its shareholding structure to free 20 per cent of its equities for unrelated shareholders by April 27.

    Free float, otherwise known as public float, refers to the number of shares of a quoted company held by ordinary shareholders other than those directly or indirectly held by its parent, subsidiary or associate companies or any subsidiaries or associates of its parent company; its directors who are holding office as directors of the entity and their close family members and any single individual or institutional shareholder holding a statutorily significant stake, which is five per cent and above in Nigeria.

    Thus, free float’s shares do not include shares held directly or indirectly by any officer, director, controlling shareholder or other concentrated, affiliated or family holdings.

    Stock markets maintain minimum public float to prevent undue concentration of securities in the hands of the core investors and related interests, a situation that can make the stock to be susceptible to price manipulation. Besides, it provides the public with opportunity to reasonably partake in the wealth creation by private enterprises.

    The NSE acceded to the bank’s request for extension, however, Wema Bank is required to provide quarterly disclosure reports to the exchange on the efforts being made to fully comply by the deadline.

    By the expiration of the deadline, Wema Bank is mandatorily required to have completed partial divestments or dilution of the ‘non-public’ shareholdings to free 20 per cent equity stake for public holding, unless the management of the NSE grants fresh waivers and extensions for the companies. In the extreme instance, a company with deficient public float may opt to delist its shares.

    Wema Bank said it is optimistic it will meet the deadline.

    Chief Financial Officer, Wema Bank, Mr. Tunde Mabawonku, said that the bank was expecting some of its existing investors to sell some of their holdings to free up additional float.

    “We expect some of our existing investors to free up some of their holdings as the market valuation improves; we believe we would achieve the minimum requirement for free-floating shares within an agreed timeline with the NSE,” Mabawonku stated in emailed response to The Nation.

    Other two companies with free float deficiencies included Dangote Cement and Union Bank of Nigeria Plc. The Nation had earlier reported that Alhaji Aliko Dangote, the core investor in Dangote Cement Plc and Union Global Partners Limited, the core investor in Union Bank of Nigeria Plc had been given deadlines to sell down their domineering equity stakes in the companies or issue new shares to the investing public to dilute their shareholdings.

    Dangote Cement(Dancem) has up till October, this year while Union Bank of Nigeria has up till June 2017 to comply with the free float. The updated free float record of the NSE indicated that Dancem has a free float of 4.93 per cent, 15.07 percentage points below the minimum required 20 per cent. Union Bank has a free float of 14.94 per cent, 5.06 per cent below the minimum standard.