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Tag: Nigerian Stock Exchange

  • NSE inducts 46 new authorized dealing clerks

    THE Nigerian Stock Exchange (NSE) has in ducted 46 recently qualified dealing clerks, paving the way for them to begin trading at the Exchange.

    Out of the 53 candidates who had passed the Chartered Institute of Stockbrokers (CIS) examination and went through the mandatory practical Automated Trading System (ATS) training at the NSE, 46 passed the final oral examination at the Exchange.

    Chief Executive Officer, Nigerian Stock Exchange (NSE), Mr Oscar Onyema said the induction was both a celebration and a call to stand tall in integrity, to be impeccable in character, to be professional in service and to uphold the high ethics and values for which the Exchange and the capital market are renowned.

    According to him, professionalism and ethical behaviours are the major hurdles that the new dealing clerks must cross effortlessly in their daily practice of their profession.

    “The NSE has clear and enforceable rules and operates with a zero tolerance policy on all infractions. The NSE will support the inductees in developing their capacity. However, if infractions occur, NSE will not hesitate to wield the axe on any erring member that falls short on any of its rules,” Onyema said.

    Read Also: ‘113m people face food insecurity’

    He also advised the new clerks to stay relevant in today’s dynamic environment, emphasizing that continuous training is a tool that should not be underestimated.

    He noted that the Exchange established X-Academy, to provide education to individuals who wish to improve their understanding of various aspects of the capital market.

    Doyen of Stockbrokers, Alhaji Rasheed Yussuf, called on the newly inducted dealing clerks to let their words be their bond noting that this would engender confidence and growth of their respective organizations and the capital market at large.

  • Breaking: MTN Nigeria hits N2.21tr as investors scramble for shares

    MTN Nigeria Communications Plc has risen by the maximum daily allowable price gain of 10 per cent by mid day trading at the Nigerian Stock Exchange ( NSE ), chalking up a whooping N201. 47 billion capital gains in second day of trading at the stock market.

    MTN Nigeria on Thursday listed by way of introduction 20.35 billion ordinary shares at N90 per share.

    The Nation’s check indicated that MTN Nigeria share price, which rose by 10 per cent or N9 on Thursday, has also risen by the same maximum percentage , adding N9.90 to close now at N108.9 per share.

    Read Also: Equities rebound on MTN listing

    Total unmatched demand for the telco exceeded 220 million shares as investors scrambled for the shares.

    With the ongoing rally, MTN Nigeria has gained N384. 62 billion in two days, pushing its market value from initial listing value of N1.83 trillion to N2.22 trillion.

  • Equities open with N141b loss

    Nigerian equities opened this week with a net loss of N141 billion. All major indices at the Nigerian Stock Exchange (NSE) trended downward in the opening trades for the week.

    The All Share Index (ASI) _ the main index that tracks share prices at the Exchange, declined from its opening index of 28847.81 points to close at 28484.44 points.

    Aggregate market value of all quoted equities dropped from the opening value of N10.842 trillion to close at N10.701 trillion.11 Plc; formerly Mobil Oil Nigeria recorded the highest loss of N8 to close at N165.

    Stanbic IBTC Holdings followed with a loss of N1.95 to close at N44. 05 while Guinness Nigeria declined by N1.50 to close at N50 per share.

    Okomu Oil Palm led the gainers with a gain of N7 to close at N77. Africa Prudential followed with a gain of 28 kobo to close at N3.82 while FBN Holdings rose by 25 kobo to close at N7.50 per share

  • Lawyer seeks to stop MTN’s stock market listing

    A Lagos Lawyer Dr. Charles Mekwunye  has asked the Securities and Exchange Commission (SEC) to stop telecoms giant, MTN from listing its shares on the Nigerian Stock Exchange (NSE).

    In a March 18 letter, Mekwunye, of Charles Mekwunye and Co, stated that MTN could not list its shares on the market because of a suit before the Supreme Court concerning the “massive” divestment of its assets.

    The letter claimed that MTN had been unfair to the Nigerian public and regulators by allegedly not disclosing the pendency of a civil matter over its shares when it recently announced its proposed initial public offer.

    In the letter to SEC, Mekwunye said: “We are disappointed that you have refused and/or failed to call MTN to order in the light of recent publications relating to its proposed Initial Public Offer (IPO) without any reference whatsoever to the appeal pending before the Supreme Court involving the massive divestment of its assets.

    “We consider the move by MTN as unfair, misleading, and a calculated attempt as usual to defraud the Nigerian economy and the Nigerian investing public.

    “Please be advised that under Nigerian law and jurisprudence, MTN cannot disrespect the Supreme Court by interfering with the subject matter of litigation before the apex court in the land.”

    Mekwunye, in 2008, sued MTN, Lotus Capital and Stanbic IBTC Asset Management, IHS Holding LTD and INT Towers Ltd at the Federal High Court for alleged breach of contract in the divestment of MTN assets.

    Mekwunye claimed at the lower court that MTN, through its appointed nominee, Stanbic IBTC Asset Management and LOTUS Capital, defaulted in a share investment agreement with him.

    He urged the court, to restrain MTN from listing its shares on the stock market pending the determination of the suit.

    Justice Mojisola Olateru, while ruling on a preliminary objection raised by MTN on the competence of the suit,  asked parties in the suit to explore the arbitration clause embedded in the contract.

    Dissatisfied with the ruling of the lower court, Mekwunye filed a motion on notice on February 26, 2018 at the Court of Appeal.

    He argued that an arbitration clause in agreement between him and MTN cannot be used to determine the suit involving IHS Holdings Ltd and INT Towers Ltd who are not parties to the arbitration clause.

    The Court of Appeal, in its ruling, also asked parties in the suit to pursue arbitration earlier pointed out by the lower court.

    Still not satisfied with the appellate court’s ruling, Mekwunye approached the Supreme Court, insisting that the crux of the matter is the failure of the respondents to list MTN shares on NSE in 2011 as agreed by parties and that until the suit is properly determined, MTN ought not to be allowed to list its shares at the stock market.

  • NSE launches multi-asset brand campaign

    As part of efforts to boost investor education and increase investor participation in the Nigerian capital market, the Nigerian Stock Exchange (NSE) has launched an above-the-line marketing campaign that amplifies the Exchange’s credential as a leading securities exchange that provides investors with varied investment options.

    Besides quoted equities, the NSE is showcasing other investment options such as fixed income, Exchanged Traded Products (ETPs), derivatives and others. Themed “The Multi-Asset Sustainable Exchange”, the campaign will be featured across print, broadcast, outdoor and digital media.

    Head, Corporate Communications, Nigerian Stock Exchange (NSE), Mr. Olumide Orojimi, said the campaign was coming against the backdrop of the innovative offerings NSE has birthed since its intentional transformation that commenced in 2011.

    He noted that during this period, the Exchange has achieved phenomenal milestones including the deployment of cutting edge technology for trading and the use of artificial intelligence to monitor its market.

    He added that the Exchange had also upscale securities in its market with the flagship listing of the first sovereign green bond in an emerging market; establishment of an investors protection fund; launch of a corporate governance rating system and more recently the unveiling of the NSE Sustainability Disclosure Guidelines for quoted companies.

    “As the Exchange transits to a demutualized Exchange, its credential as multi-asset securities Exchange will be adequately communicated through series of creative messaging in this campaign. While investors’ appetite for capital market products continues to evolve, this campaign highlights NSE’s offering which transcends stocks,” Orojimi said.

    He reiterated the commitment of the Exchange to driving sustainable products, responsible investment in a market that is orderly and transparent whilst leveraging cutting edge technology.

     

  • Access Bank hits new ranking as NSE lists merger shares

    Access Bank leapt by two steps to become one of the six most capitalised financial institutions in Nigeria as the first-tier commercial bank fully consummated its business combination with Diamond Bank Plc with the listing of the merger shares and the delisting of Diamond Bank.

    The Nigerian Stock Exchange (NSE) listed 6.617 billion ordinary shares of 50 kobo each issued as consideration to shareholders of the defunct Diamond Bank in the name of Access Bank Plc. The additional listing of scheme shares increased Access Bank’s total outstanding shares from 28.93 billion ordinary shares of 50 kobo each to 35.545 billion ordinary shares of 50 kobo each.

    With the listing of the new merger shares allocated to shareholders of the defunct Diamond Bank, the NSE also simultaneously delisted the entire paid up shares of Diamond Bank totaling 23.16 billion ordinary shares of 50 kobo each.

    The listing and delisting followed the approval of the National Council of the NSE, after the banks had completed the due diligence and merger process including approvals of their shareholders, approvals of the regulators, sanctions of the Federal High Court, payments of considerations and allocation of the relevant scheme shares.

    However, the NSE was unable to commence trading on the listed scheme shares yesterday citing “certain operational reasons”.

    “The Exchange regrets any inconvenience caused the holders of the affected shares. The Exchange is working assiduously with Central Securities Clearing System (CSCS) and the Registrar to the company to produce a swift resolution and will be providing further updates as soon as we can,” the NSE stated.

    Meanwhile, Access Bank has also listed its N15 billion green bond on the NSE and FMDQ OTC Securities Exchange. The listing followed approval of the bond by the Securities and Exchange Commission (SEC).

    The green bond is the first of its kind to be issued by an African corporate and represents a major milestone in the development of the local green finance market.

    REad also: Access Bank bridges N800b agric funding gap

    The Five-Year Fixed Rate Senior Unsecured N15 billion Green Bond was awarded an Aa- rating by Agusto & Co, the underlying framework verified by PwC (UK) and the bond was certified by the Climate Bonds Initiative as having met the global climate bonds standard. The offer for the green bonds was achieved by way of a book build which was fully subscribed. The bonds priced at a coupon of 15.5 per cent, with participation from a wide range of asset managers and pension fund administrators.

    The listing of the bond came on the heels of the completion of the bank’s merger with Diamond Bank and the launch of its new brand identity that fuses the bank and Diamond Bank’s visual identities symbolizing their shared philosophy.

    Group Managing Director, Access Bank Plc, Mr. Herbert Wigwe, said the green bond issuance highlights the bank’s commitment to sustainability and its status as a pioneer in green financing in both the domestic and international capital markets.

    He noted that the bond comes amidst a global drive for responsible and sustainable green financing and will allow the financing of new loans and refinancing of existing loans in accordance with the bank’s green bond framework.

    He said the green bond will support projects directed at flood defense, solar generation facilities and agriculture.

    “At Access Bank we are a pioneer in both domestic and international capital markets, leading the way with our commitment to sustainable banking. We hope that this bond issuance inspires other African companies to support the long-term development of the green finance market whilst simultaneously realizing the growth potential of the fast-developing low carbon economy,” Wigwe said.

    Deputy Chief Executive, Climate Bonds, Justine Leigh-Bell, praised Access Bank’s efforts in promoting sustainability in Africa through the financing of green projects.

    Leigh-Bell said Access Bank’s Climate Bond-certified corporate green bond represents a major milestone in the development of the local green finance market.

    “In addition to being an inspiration to other private companies, the leadership demonstrated by Access Bank is critical for the long term development of the green finance market in Nigeria and a great example for other African nations to follow,” Leigh-Bell said.

     

     

     

  • Lafarge Africa lists 7.43b rights’ shares

    Lafarge Africa Plc yesterday formally completed its N89.2 billion rights issue with the listing of additional 7.43 billion ordinary shares of 50 kobo each that arose from the new issue at the Nigerian Stock Exchange (NSE).

    With the listing of the additional 7.43 billion ordinary shares, the total issued and fully paid up shares of Lafarge Africa increased from 8.67 billion ordinary shares to 16.108 billion ordinary shares.

    Lafarge Africa had offered 7.43 billion ordinary shares of 50 kobo each at N12 per share. The rights were pre-allotted on the basis of six new ordinary shares for every seven ordinary shares held as at the close of business on Tuesday, December 4, 2018. Acceptance list for the N89.2 billion rights issue opened on Monday, December 17, 2018 and closed on Monday January 28, 2018.

    The rights issue was fully subscribed. A breakdown of the allotment results showed that 16 applicants out of a total of 1,826 applicants bought 7.313 billion ordinary shares of 50 kobo each, representing 98.37 per cent of the total shares on offer. The remaining 1,810 applicants were allotted 121 million shares, representing 1.63 per cent of the total shares on offer.

    The allotment results showed that 1,734 shareholders accepted their rights in full totaling 5.93 billion ordinary shares, out of which 738.73 million ordinary shares were traded on the floor of the NSE. The report also showed that out of 1,734 shareholders who took up their rights in full, 734 shareholders also applied for additional 1.300 billion ordinary shares and were allotted in full from the renounced rights.

    A total of 92 shareholders with a provisional allotment of 395.875 million ordinary shares partially accepted their rights for 202.40 million ordinary shares, thus the balance of 193.47 million ordinary shares were renounced. Also, 34 subscribers purchased rights of 738.73 million ordinary shares on the floor of the NSE.

  • Nigeria equity market rises by 0.14% in cautious trading

    The Nigerian Stock Exchange (NSE) market indices on Tuesday sustained growth, posting a marginal gain of 0.14 per cent in a cautious trading.

    Specifically, the All-Share Index rose by 43.72 points or 0.14 per cent to close at 32,173.66 against 32,129.94 achieved on Monday.

    Also, the market capitalisation which opened at N11.981 trillion increased by N17 billion to close at N11.998 trillion.

    Analysts at Cordros Capital said that investors should tread cautious due to sensitive political landscape.

    “Amidst the still sensitive political landscape, we still hold the view that the blend of compelling valuation story, together with positive macroeconomic picture, leaves scope for market recovery in the medium-to-long term.

    “However, we guide investors to tread a cautious trading path in the short term,” they said.

    A breakdown of the price movement table shows that NASCON recorded the highest price gain of 80k to lead the gainers’ table to close at N20 per share.

    Dangote Flour followed with a gain of 60k to close at N11, while Guaranty Trust Bank appreciated by 40k to close at N37.60 per share.

    Union Bank of Nigeria grew by 30k to close at N7, while Zenith Bank added 20k to close at N24.70 per share.

    Conversely, Dangote Cement topped the laggards’ table, shedding N1 to close at N196 per share.

    Read Also: NSE to launch new trading platform for mutual funds

    Redstar Express trailed with a loss of 50k to close at N5, while Caverton lost 15k to close at N2.30 per share.

    Custodian and Investment also declined by 15k to close at N5.90, while UACN went down by 15k to close at N8.10 per share.

    Also, the volume of shares traded improved by 75.45 per cent, while the value of shares transacted rose by 32.57 per cent.

    Consequently, investors bought and sold 400.87 million shares worth N3.46 billion traded in 3,885 deals.

    This was in contrast with a turnover of 228.48 million shares valued at N2.61 billion traded in 3,544 deals on Monday.

    Diamond Bank was the most active stock for the day, trading 119.79 million shares worth N299.33 million.

    FBN Holdings followed with an account of 44.39 million shares valued at N358.98 million, while United Bank for Africa sold 40.82 million shares worth N314.48 million.

    Guaranty Trust Bank traded 32.51 million shares valued at N1.22 billion, while Zenith Bank sold 24.40 million shares worth N604.99 million.

    NAN

  • NSE begins final stages of demutualisation

    The Nigerian Stock Exchange (NSE) has started working on the final stages of its conversion from a not-for-profit limited by guarantee entity into a profit-making, shareholders-owned public limited liability company. The conversion is technically known as demutualisation.

    NSE Chief Executive Officer, Mr Oscar Onyema, confirmed that the Demutualisation Act, which was signed into law by President Muhammadu Buhari, has been gazzetted and forms the legal background for the demutualisation process.

    According to him, the Exchange has gone farther than it had ever been in the conversion process and has started working on the final stages of the process.

    He said the Exchange was committed, not only to early completion of the process, but to ensure that the conversion enhances its success story.

    While the NSE was initially incorporated under the Companies Ordinance of 1958 on September 15, 1960 as a private company limited by guarantee with a share capital, it was re-registered as a company limited by guarantee without a share capital in 1990 upon the enactment of the Companies & Allied Matters Act, Cap C20, 2004, (CAMA), which replaced the Companies Ordinance (1958). CAMA had required all companies limited by guarantee that had a share capital to be converted to companies limited by guarantee without share capital, thus the Exchange’s Memorandum of Association was duly altered and the NSE has since been a not-for-profit corporate legal entity without a shareholding structure.

    The demutualisation process was launched in 2002 with the approval-in-principle of the conversion by the council of the Exchange. Members of the Exchange in March 2017 passed crucial resolutions that authorised the council and management to proceed with the process leading up to the demutualisation of the Exchange.

    The members of the Exchange also ratified and approved the engagement of financial advisers, legal advisers, tax advisers and any other adviser that may be required for the demutualisation while mandating the council and management “to do all such things and exercise all such powers as may be necessary or incidental to achieving the objective” of demutualisation, subject to applicable laws and regulations and obtaining the approvals of members and the relevant regulatory authorities.

    Out of the 27 African Stock Exchanges under the aegis of African Securities Exchanges Association (ASEA), seven stock exchanges including Johannesburg, Nairobi, Mauritius, Seychelles, Rwandan, Casablanca stock exchanges and BRVM have been demutualised.

    Academic research on the effect of demutualisation on the financial performance of 20 demutualised exchanges between 1996 and 2008, suggested that the return on equity increased by an average five per cent to 20 per cent, with the average net profit margin increasing by 14 per cent to 30 per cent.

    Demutualisation has also contributed positively to stock market performance. On the back of strong macro-economic performance, improved regulation and other factors, the Johannesburg Stock Exchange (JSE) All Share Index has grown by 280 per cent since its demutualisation in 2005 to reach 53,817.31 points as at the end of April 2017. Following demutualisation, a number of stock exchanges had re-positioned their markets, building alliances or consolidating within and across borders in order to enhance their attractiveness. For example, in 2006, the Australian Stock Exchange merged with the Sydney Futures Exchange to form the Australian Securities Exchange (ASX). In 2007, the New York Stock Exchange (NYSE) merged with Euronext to form NYSE Euronext, creating the world’s largest stock exchange with revenues of $4.5 billion.

    The approved rules on demutualisation by Securities and Exchange Commission (SEC) simply defined demutualisation as “the process through which a member owned organisation becomes a shareholder owned company”. The demutualisation framework approved by SEC stresses that the process of demutualisation of the Securities Exchange should include an exchange of membership rights in the Securities Exchange for ownership of shares in the demutualised Securities Exchange.

    According to an informed source on the demutualisation process, after valuation of the Exchange, determination of members who are qualified for shareholdings and the appropriate number of shares receivable by each member, the primary allotment of shares would be done to current members of the Exchange, thus formally converting the Exchange from its current members-owned status to shareholders-owned status.

    The SEC’s rules on demutualisation allow the Exchange to give equity interest to a strategic investor subject to establishment of the facts that the strategic investor has technical expertise through previous experience in managing other Exchanges and the aggregate number of shares to be offered to the strategic investors shall not be more than 30 per cent of issued and fully paid up capital of the securities exchange.

    However, if the Exchange is in dire need of funds, it could issue a higher number of shares subject to approval of the Commission.

    The rules indicate that stockbrokers, who constitute the largest members of the NSE, may have to sell down their shareholdings within a period of five years in the demutualised Exchange.

    The rules indicated that the aggregate equity interests of members of any specific stakeholder group such as stockbrokers and broker-dealer in the demutualised securities exchange should not exceed 20 per cent.

    The rules also retained the provision that no individual or entity must directly or in directly own more than five per cent of the issued shares or voting rights in a demutualised securities exchange.

    The rules, made pursuant to Section 313 of the Investments and Securities Act (ISA) 2007, describe “related entities and persons” as a person or entity that is related to the entity or person that owns the equity or the voting rights.

    The rules stipulate that the securities exchange should initiate a process for determining the accurate list of members of the Exchange prior to the commencement of demutualisation.

    “The stakeholder groups, who are shareholders of the Securities Exchange, shall with effect from the date of demutualisation, shall reduce their cumulative shareholding in the demutualised Securities Exchange to no more  than 20 per cent within five years,” according to the rules.

    As part of preconditions for demutualisation, a securities exchange shall, prior to demutualisation, submit the names and profiles of members of its committee on demutualisation, a valuation report, the draft Memorandum and Articles of Association of the Securities Exchange, the proposed rules of the demutualised Securities Exchange, the proposed allotment and the basis of the proposed allotment of shares to the initial shareholders of the Securities Exchange, a list of the directors proposed as the Board of the Securities Exchange, an implementation plan stating the process to be adopted for effecting the demutualisation of the Exchange, including but not limited to the treatment of the rights and liabilities of the existing members of the Exchange and the proposed plan for the independent management of the commercial and regulatory functions of the demutualised Securities Exchange and timelines for implementation of necessary structures to ensure the functional treatment of commercial and regulatory functions for a “No Objection” clearance by SEC.

     

     

  • NSE suspends trading in Continental Reinsurance

    The Nigerian Stock Exchange (NSE) has suspended trading in the shares of Continental Reinsurance Plc. With effect from Monday, December 31, 2018, there will be no trading and price movement in the shares of the reinsurance company.

    A circular on the suspension indicated that the suspension was at the instance of the stockbroker to the reinsurance company,Chapel Hill Denham Securities Limited.

    The suspension was necessary to determine the shareholders that will qualify to receive the scheme consideration following the resolutions passed by the shareholders of Continental Reinsurance at the court-ordered meeting held two weeks ago in Lagos.

    Shareholders had at the meeting approved a takeover bid launched by the majority core investor in the reinsurance company to buy out retail minority shareholders and turn Continental Reinsurance into a wholly-owned subsidiary.

    The board of Continental Reinsurance announced that it had received an offer from CRe African Investments Limited (CRe Investments), a major investor in the company to acquire all the outstanding and issued shares of Continental Reinsurance.

    According to the board, CRe Investments is making the offer to initiate a much-needed restructuring  for Continental Reinsurance, to consolidate its operations and repositioning it for enhanced competitiveness in the global insurance market.

    The acquisition is being executed through a Scheme of Arrangement under Section 539 of the Companies & Allied Matters Act Cap C20 Laws of the Federation of Nigeria 2004 and other applicable rules and regulations.

    Continental Reinsurance Acting Company Secretary Ms Patricia Ifewulu reported that at the conclusion of the poll voting at the meeting, 92.66 per cent of the votes were in favour of the resolution approving the scheme of arrangement.

    CRe Investments had offered N2.04 per share for the 10,372,744,314 ordinary shares of 50 kobo each or one ordinary shares of $1 each in the capital of CRe Investments for every 176 ordinary share of 50 kobo each held in Continental Reinsurance.

    However, the scheme consideration was revised upwards from N2.04 to N2.10 per share, with the new price representing 51.08 per cent premium on the share price of Continental Reinsurance as at the close of trading on October 5, 2018, which was the last business day prior to the date on which the proposal was received from CRe African Investments Limited.

    She said an application has been submitted for the final approval of the Securities & Exchange Commission (SEC), subsequent to which an application will be submitted to the Federal High Court for the sanction of the scheme.

    The effective date of the scheme will be the date on which the court sanction is filed at the Corporate Affairs Commission (CAC); which, as stated in the scheme document, is scheduled to occur on January 4, 2019.