The Nation Newspaper

Tag: Nigerian Stock Exchange

  • NSE pricing methodology has provided liquidity for inactive stocks–Experts

    NSE pricing methodology has provided liquidity for inactive stocks–Experts

    Some financial experts on Monday said that the Nigerian Stock Exchange ( NSE ) amended par-value and pricing methodology has provided liquidity for inactive stocks in the market.

    Dr Uche Uwaleke, Head of the Banking and Finance Department at the Nasarawa State University in Keffi, said that the amended par-value and pricing methodology had improved the liquidity of stocks that could not be sold below 50k before now.

    “Since Jan. 29, when it became effective, a number of stocks, including those of ABC Transport Plc. and some insurance companies, which were hitherto, inactive, have witnessed some transactions.”

    Uwaleke said the new stratification of price movements and price limits had narrowed spreads, “ensuring that only transactions that were material would result in price movements’’.

    He said that the market was now more efficient than before as result of the initiative.

    Similarly, Mr Ambrose Omordion, the Chief Operating Officer of InvestData Ltd., who commended the initiative, said that many companies would start to provide information for the investing public to ascertain the position of any company.

    Omordion said that companies would be compelled to submit their results timely for investors to make wise decisions.

    He said that the new methodology would enforce good corporate governance among quoted companies, in a bid to avoid drastic reduction in their share prices.

    “If you don’t want your stock price to move to 10k, you will get investors see reason why they buy or hold your stock by providing the needed information as and when due, apart from quarterly and full year earnings reports”, Omordion said.

    READ ALSO: 116 quoted companies to fall under one-kobo pricing rules

    The new pricing method started on Jan. 29.

    Mr Abimbola Babalola, NSE Head of Market Surveillance and Investigation, said the new method was “aimed at improving liquidity, narrowing spreads and ensuring that all price-improving transactions had material impact.”

    Babalola said the new rules would effectively remove the current rule which placed minimum allowable price for any stock to trade at its nominal value, irrespective of the market forces.

    According to him, it specifies that stock prices will be determined by market forces of demand and supply as prices can now fall below the initial price floor of 50k to one kobo.

    He said that as a result, stocks would be under new groupings and pricing rules and that price of every share listed on the NSE would be determined by market forces.

    According to him, Group A, shall consist of large-cap equities that are priced at N100 per share or above for at least four of the last six trading months, or new security listings that are priced at N100 or above.

    Group B, shall consist of medium-priced equities that are priced at N5 per share or above, but less than N100 per share for at least four of the last six months, or new security listings priced at N5 per share or above at the time of listing.

    Group C, where majority of listed companies fall, shall consist of equities that are priced at one kobo per share or above, but below N5 per share, or new security listings priced at one kobo at the time of listing on the NSE.

    NAN

  • Why issuance of IPOs was poor in 2017 – experts

    Why issuance of IPOs was poor in 2017 – experts

    Some financial experts on Wednesday attributed the disappearance of Initial Public Offerings (IPOs) on the Nigerian Stock Exchange (NSE) in recent years to the poor state of the economy.

    The experts told the Reporter in Lagos that IPOs could only thrive in an environment where the purchasing power of the people was high.

    The news reports that IPO is the very first sale of a company’s stock to the public.

    The news reports that in spite of emergence of the NSE as the third best performing stock in the world in 2017, it recorded no IPO during the period.

    Mr Oscar Onyema, the NSE Chief Executive, confirmed recently in Abuja that IPO activity on the NSE during the period was “mute”.

    Onyema said that although the IPO segment was stagnant, activity at the equity segment of the NSE increased by 121 per cent to N1.27 trillion in 2017 from N0.58 trillion in 2016.

    Dr Uche Uwaleke, the Head of Banking and Finance Department, Nasarawa State University,  Keffi, said that IPOs could only be successful when an economy was doing well.

    Read Also:  Long wait for new  IPOs

    He said that the success rate of an IPO would be limited in an economy characterised by weak aggregate demand because the cost of IPOs were high due to high cost of underwriting.

    Uwaleke advised that government should ensure that all its ongoing projects were completed to strengthen the economy to boost the success of  IPOs in the country.

    Prof. Sheriffdeen Tella, a Professor of Economics, Olabisi Onabanjo University Ago-Iwoye, Ogun, said that the prospect of IPOs would be higher if the current growth in the capital market and economy was sustained.

    He said that with stronger economy, many new companies would enter the stock market for long-term financing to expand their businesses.

    According to him, this will make the stock market regain confidence of investors.

    NAN

  • NSE market indicators drop further by 1.16%

    NSE market indicators drop further by 1.16%

    The Nigerian Stock Exchange ( NSE ) market indicators on Tuesday dropped further by 1.16 per cent due to market volatility caused by profit taking.

    Market capitalisation shed N187 billion or 1.16 per cent to close at N15.902 trillion compared with N16.089 trillion on Monday.

    The All-Share Index lost 522.68 points or 1.16 per cent to close at 44,389.85 against 44,912.53 achieved on Monday.

    Mr Ambrose Omordion, the Chief Operating Officer, InvestData Ltd., attributed the development to profit taking embarked by some investors ahead of 2017 earnings season.

    Omordion said some investors were taking adavantage of 18 per cent growth posted by the market in the past three weeks.

    Mobil Oil recorded the highest loss, declining by N7 to close at N209 per share.

    Read also: NSE, CBi award corporate governance rating to 33 companies, 435 directors

    Dangote Cement trailed with a loss of N4 to close at N269, while Julius Berger was down by N1.60 to close N30.40 per share.

    Guaranty Trust Bank shed N1.51 to close at N52, while Zenith International Bank dropped by 75k to close at N32 per share.

    On the other hand, Seplat topped the gainers’ table, increasing by N9.99 to close at N685 per share.

    Unilever followed with a gain of N2.21 to close at N46.41, while Nigerian Breweries gained N2 to close at N145 per share.

    Presco appreciated by N1.31 to close at N70, while Nestle added N1.11 to close at N1,471.11 per share.

    A breakdown of the activity chart showed that Skye Bank was the toast of investors trading 150.37 million shares worth N226.77 million.

    FBN Holdings followed with an account of 104.17 million shares valued at N1.36 billion, while Wema Bank traded 64.09 million shares worth N87.36 million.

    Diamond Bank sold 44.39 million shares valued at N144.80 million, while Transcorp exchanged 43.39 million shares worth N94.28 million.

    In all, the volume of shares traded closed lower with an exchange of 737.86 million shares valued at N7.67 billion traded in 8,927 deals.

    This was against the 4.44 billion shares worth N15.93 billion shares exchanged in 8,572 deals on Monday.

    NAN

  • Equities maintain price rally on NSE, Index hits 43,041.54

    Equities maintain price rally on NSE, Index hits 43,041.54

    Trading on the Nigerian Stock Exchange ( NSE ) on Thursday maintained a bullish run with the All-Share Index hitting all-time high of 43,041.54, while market capitalisation crossed over to N15.317 trillion.

    The index rose by 1,225.43 points or 2.93 per cent to close higher at 43,041.54 against 41,816.11 recorded on Wednesday.

    Similarly, the market capitalisation which opened at N14.880 trillion inched N437 billion or 2.94 per cent to close at N15.317 trillion following price growth in anticipation of 2017 audited results.

    Mr Ambrose Omordion, the Chief Operating Officer, InvestData Ltd., attributed the market rally to investors’ anticipation of improved 2017 audited results that would start hitting the market very soon.

    Omordion said investors were positioning in stocks with good fundamentals ahead of earnings release.

    Seplat led the gainers’ table with a gain of N15.01 to close at N675.01 per share.

    Nigerian Breweries came second with N6.68 to close at N152.68, while Guinness appreciated by N5.01 to close at N105.21 per share.

    Dangote Cement also gained N5 to close at N252, while Okomu Oil Palm added N4.46 to close at N72.15 per share.

    Read also: NSE market capitalisation rises by N29bn

    Conversely, Flour Mills recorded the highest price loss, declining by 40k to close at N33 per share.

    Dangote Sugar Refinery trailed with a loss of 30k to close at N21.50, while Berger Paint dipped 25k to close at N9.10 per share.

    Cadbury lost 20k to close at N16.80, while UPl declined by 13k to close at N2.63 per share.

    Also, the volume of shares traded appreciated by 43.63 per cent with an exchange of 1.62 billion shares worth N17.38 billion transacted in 8,968 deals.

    This was in contrast with 1.09 billion shares valued at N13.29 billion traded in 8,025 deals on Wednesday.

    Transcorp was investors delight, accounting for 208.78 million shares worth N439.19 million.

    Diamond Bank trailed an account of 149.70 million shares valued at N368. 33 million, while Zenith International Bank traded 129.43 million shares worth N4.40 billion.

    FBN Holding traded 93.16 million shares valued at N1.06 billion, while Access Bank sold 89.46 million shares worth N1.08 billion.

    NAN

  • NSE, Fintech Nigeria partner on innovation growth policy formulation

    NSE, Fintech Nigeria partner on innovation growth policy formulation

    The prospects for a strategic collaboration that will deepen the penetration of technology firms in the Nigerian capital market, received a boost with the recent engagement between the Nigerian Stock Exchange and Fintech Nigeria Association.

    This is coming on the heels of earlier engagements between the Stock Exchange and Fintech Nigeria.

    Chairman of the Fintech Association of Nigeria, Dr Segun Aina, OFR, FCiB,  in his remarks said the FintechNGR since inception had been focusing on driving emerging technology and supporting innovation in Nigeria through multi sectorial approach. This he said is aimed at coordinating the growth of the ecosystem and influencing policy and regulations towards positioning Nigerian Fintech as the African  Fintech/innovation hub that leads the creation and deployment of indigenous solutions in solving indigenous challenges in the continent.

    According to Aina,  Fintech Nigeria has been engaging other regulators such as the Central Bank of Nigeria, National Insurance Commission, Securities and Exchange Commission amongst others.

    The Fintech Nigeria boss revealed that that the Association has a strong membership base covering financial institutions, technology companies, payment vendors, system operators, investors, technology hubs including: Fintech Associates Ltd, Ecobank, Proshare, Accion Microfinance Bank, Lagos Business School, Banwo & Ighodalo, CcHub, Deloitte, Mastercard, Suntrust Bank, Stanbic IBTC, PwC and  others as Founding Members

    “The Exchange needs to key into the opportunities of leading the next industrial revolution which is anchored on applicable, accessible and affordable indigenous innovation and technology,” Aina said.

    Also speaking at the event, a Member, Governing Council Member, Fintech Nigeria,  Mr Tunji Eleso, said, “ Fintech Association is particularly passionate about seeing the Fintech ecosystem achieve its maximum benefits by head on regulation and policy that encourages innovation as its stimulates value based engagement within the ecosystem.”

    The Acting Divisional Head, Capital Markets, Mr Tony Ibeziako welcomed the engagement with the FINTECHNGR, believing it was a mutual relationship, where Fintech companies can take their business objectives to the next level utilizing the Exchange.  He was of the view that the partnership will showcase the opportunities in the Fintech ecosystem, considering the digitization process that is driving the current fourth industrial revolution.

    Mr Ibeziako encouraged the FINTECHNGR to leverage the Nigerian Stock Exchange initiatives which will assist in driving corporate governance, visibility for the Fintech companies and boost the entire ecosystem. “The session is strategic for the NSE as it gives the Exchange the opportunity to position itself as the active players in innovation, serving as springboard for budding Fintechs/SMEs to access funding, attain corporate governance and visibility as well as getting listed on the Exchange”

  • Ezekwesili wants financial literacy for students early

    Ezekwesili wants financial literacy for students early

    Dr Oby Ezekwesili, a formerMinister of Education, on Wednesday said Nigerian youth should be equipped with skills and knowledge that would aid their understanding of financial matters right from secondary school.

    Ezekwesili stated this at the 2017 Nigerian Stock Exchange Essay Competition Awards Ceremony in Lagos.

    “We need to offer children financial literacy before they get to senior secondary schools.

    “It help and guarantees the young ones to grow into adults that can achieve financial security and success, and make informed decisions,” she said.

    The ex-minister said an individual who has acquired financial literacy is considered financially secured and able to succeed.

    “We must handle our youths with tools such as financial literacy because for too long, we have been made the poorest region in the world,” she said.

    Ezekwesili said Nigeria needs a newer generation that would help in changing the story.

    “Every country that has managed to do better, every country that has climbed out of poverty, has improved in education.

    “The basis of improvement is quality education.

    “We should be more interested in the state of the school system in Nigeria.

    “Anytime I see these young children excelling, I feel excited because I really don’t want their generation to repeat all the failures of my generation and the generation before me.

    “I am so such optimistic that Africa can claim its place in the 21st century because of our young ones,” she said.

    Ezekwesili commended the stock exchange for its investment in the education sector and called for more support from the private sector.

    “We need a collective effort on education.

    “The more the stock exchange will lead this process, the more the private sector understands that if they will find world class talents in this country, they have to be interested in what goes on in the education; so, it becomes a collective effort,” she said.

    Mr Oscar Onyema, Chief Executive Officer, the Nigerian Stock Exchange said the NSE would continue to invest in and develop financial education in schools.

    Onyema said the NSE was committed to playing its part in building a financially savvy generation, leveraging the essay competition and other initiatives.

    According to him, teaching students at a very young age the basics of finance and the capital market is essential to their broad financial literacy education.

    “Year on year, the participation and interest continues to increase, affirming the appetite of these future leaders for personal development.

    “The 2017 edition had a 36 per cent increase from the 2016 one, with over 10,100 entries received nationwide.

    “Through partnerships with Access Bank Plc, Zenith Bank Plc and Prime Atlantic Energy, the competition was a success.

    “In developing the entries, students are encouraged to consider real-world economic events and trends, conduct research online, develop investment knowledge and in the process gain the skills to prepare for their own financial future,” he said.

    Onyema said the the 2017 winners emerged from a rigorous and phased assessment process carried out by capital market professionals.

    “From the process, 10 national winners were selected, who further competed at the final stage to determine the overall best three entries and winners,” he said.

    According to him, the outstanding performance of the brilliant young is being recognised and rewarded today with equity investments, scholarship and sets of computers.

    “It is a win for the students and their schools,” he said.

    NAN

  • UBA gross earnings hit N333.92bn in 2017 Q3

    UBA gross earnings hit N333.92bn in 2017 Q3

    United Bank for Africa (UBA) Plc on Monday announced gross earnings of N333.91 billion for the third quarter ended Sept. 30, 2017.

    This is according to the company’s third quarter result released by the Nigerian Stock Exchange (NSE).

    The report showed that the gross earnings represented a growth of 25.75 per cent when compared to N265.53 billion posted in the comparative period of 2016.

    Also, the company’s profit before tax during the period under  review increased by 33.2 per cent or N19.53 billion to N78.33 billion as against N58.79 billion in the corresponding period.

    The result showed that profit for the year closed higher at N60.92 billion from N49.51 billion, representing an increase of N11.41 billion or 23 per cent.

    Further analysis showed that net interest income stood at N152.29 billion from N112.07 billion achieved in the preceding period of 2016.

    Its interest income declined to N238.09 billion compared to N265.53 billion in 2016, while interest expenses stood at N85.79 billion from N70.92 billion in 2016.

    However, the non-interest income rose to N84.60 billion from N71.19 billion, while fees and commission surged to N57.89 billion from N56.22 billion recorded in the corresponding period.

    Similarly, total assets increased to N3.77 trillion from N3.50 trillion in 2016, while total liabilities rose to N3.26 trillion from N3.06 trillion in comparative period of 2016.

    Loans and advances to customers grew to N1.08 trillion from N970.39 billion reported in the preceding period. (NAN)

  • House of Tara, others honoured at NiBC10

    CIUCI Consulting, a Strategy and Consumer Intelligence company is 10 years old.To mark occasion,the firm  last Tuesday, at the Nigerian Stock Exchange, Lagos launched Nigeria Business Composite 10 (NiBC10).

    It was  to honour 10 businesses which CIUCI has worked with to achieve remarkable improvement at different stages.

    Notable among the honorees was House of Tara International, a popular household beauty brand in Nigeria.

    Other honorees were Bestman Games, Iya Foods, L’Avyanna, Everyday Supermarkets, DBH Solutions, Ugo Monye Official, Healthcare Leadership Academy, Private Sector Health Alliance of Nigeria and Massey Street Children’s Hospital.

    Receiving her award, CEO of Tara International, Tara Fela Durotoye, expressed delight that the company which she founded a couple of years back is getting the recognition it deserves.

    Chukwuka Monye, the CEO of CIUCI, said the NIBC 10 was a selection of 10 successful Nigerian Enterprises which  have exhibited high potentials for growth and have over the years maintained a brilliant track record.

    CIUCI Consulting recently won the Stevies Award for Middle East and Africa Category for its contribution to social and economic impact in Nigeria through human capital development and several special interventions. It also won the Stevies Award for Middle East and Africa Category for its innovative solutions for clients.

     

     

     

  • Nigeria to save N3trn from local content usage – Onu

    Nigeria to save N3trn from local content usage – Onu

    The Minister of Science and Technology, Dr Ogbonnaya Onu, says the present administration will ensure that Nigeria saves up to N3 trillion through the adoption and usage of local contents within the next five years.

    Onu said this at the commissioning of N500 million data centre for the Nigerian Stock Exchange on Monday in Lagos.

    He said that the target could be achieved if the country could rely less on imported raw materials for manufacturing and productions.

    According to him, government has already passed three major initiatives through the Federal Executives Council which focuses on the implementation of the science, technology and innovation roadmap for 2017 to 2020.

    Onu said that the initiative could take a longer period but had decided to take up the three years medium- term to ensure that the roadmap was implemented with the life span of the present administration.

    The minister said that the second initiative was the national strategy to promote competitiveness on the use of raw material by Nigerian companies.

    He disclosed that the Federal Government had inaugurated committee to ensure the implementation of the strategy.

    Onu said that the committee was made up of all Ministries, Agencies and Departments and the organised private sector with two persons representing each of the organisations.

    He noted that they were expected to come up with the guidelines for the designing, procurement and development among others for the exercise.

    He said the strategy should help discourage large importation of raw materials into the country.

    He stressed that the strategy would also help Nigerians to understudy the foreign counterparts and acquire expertise with the belief that later local companies would compete favourably.

  • Nigerian equity market drops further by 0.35%

    Nigerian equity market drops further by 0.35%

    Transactions resumed on the Nigerian Stock Exchange (NSE) on Monday still on a negative posture with the market indices sliding by 0.35 per cent due to poor liquidity.

    The market capitalisation downgraded by N33 billion to close at N9.255 trillion in contrast with N9.288 trillion achieved on Friday.

    Similarly, the All-Share Index which opened at 26,981.60 shed 94.06 points or 0.35 per cent to close at 26,887.54.

    Market analysts attributed the persistent downward trend in the market to poor liquidity and uncertainties in the economy.

    They stated that persistent profit taking by investors to address pressing needs and exit of foreign investors in the market contributed to the development.

    NAN reports that Unilever recorded the highest price loss to lead the losers’ chart, dropping by N1.50 to close at N48.50 per share.

    CAP trailed with a loss of N1.35 to close at N32.40 and Guaranty Trust Bank shed 71k to close at N21.86 per share.

    CCNN was down by 29k to close at N4.94, while Mansard Insurance depreciated by 9k to close at N1.89 per share.

    Conversely, Guinness topped the gainers’ table, growing by N2 to close at N86 per share.

    Eterna followed with a gain of 29k to close at N3.22 and Air Service appreciated by 12k to close at N2.66 per share.

    Ikeja Hotel improved by 8k to close at N1.78, while Livestock advanced by 6k to close at 79k per share.

    NAN also reports that analysis of the activity chart indicated that United Bank for Africa emerged the most active in volume terms, having accounted for 21.49 million shares worth N91.71 million.

    It was followed by GT Bank with an exchange of 17.75 million shares valued at N393.25 million and Zenith International Bank sold 11.72 million shares worth N173.49 million.

    FBN Holdings exchanged 10.53 million shares valued at N31.92 million, while FCMB Group sold 9.70 million shares worth N10.63 million.

    In all, investors staked N1.16 billion on 115.04 million shares transacted in 2,963 deals against 151.85 million shares worth N1.21 billion achieved in 2,902 deals on Friday.