The Nation Newspaper

Tag: NSE

  • NSE CEO becomes chartered stockbroker

    Chief Executive Officer, Nigerian Stock Exchange (NSE), Mr. Oscar Onyema, yesterday made history as the first chief executive of the Exchange to be inducted as an Associate of the Chartered Institute of Stockbrokers (CIS) after passing the requisite examination of the institute.

    CIS is the self regulatory organisation (SRO) statutorily empowered to train and certify professionals in the Nigerian capital market. It is the only professional body in Nigeria authorized to carry out qualifying examinations into the stockbroking profession. The Institute controls the activities of its members and matters associated with it.

    At the induction of Onyema, President, Chartered Institute of Stockbrokers (CIS), Mr. Oluwaseyi Abe said the decision of Onyema to voluntarily enroll as a CIS member and sit for qualifying examination demonstrated his commitment to good leadership.

    According to him, Onyema’s induction is not an ordinary induction but it showcases exemplary leadership, a demonstration of the commitment to the rule of law and processes, uncommon dedication and patriotism of the highest order.

    “We are witnessing a rare manifestation of humility and leadership by example, as the CEO of the Exchange, Onyema, is formally inducted as an associate member of the institution.  Today’s induction ceremony is unique because  Onyema, despite his qualifications and experience as a well-grounded investment and securities expert qualified to practice in the United States and Nigeria, voluntarily enrolled as a member of CIS, sat and passed the institution’s examination,” Abe said.

    He congratulated Onyema and urged him to maintain the good name and reputation of the institute as he continues to contribute positively to growth of the institution and indeed the Nigerian economy.

    He noted that Onyema’s induction as a chartered stockbroker was a landmark event that conferred a new level of respect and honour.

     

     

    “It is a mark of character, capacity and competence,” Abe said.

    Expressing his delight after receiving his certificate as an associate member of CIS, Onyema said his writing of the CIS examination was a matter of cause and a continuous quest for knowledge and high performance.

    “I commit to project the best image of the institution by ensuring adherence to the code of ethics of the profession. And I look forward to working with you all to improve the state of our market and the Nigerian economy at large,” Onyema said.

     

  • NSE places 44 companies on red alert

    NSE places 44 companies on red alert

    The Nigerian Stock Exchange (NSE) authorities have placed 44 companies on red alert, raising a caution to investors to beware of underlying corporate governance abuse.

    The latest tracker report on corporate governance, regulation and compliance obtained by The Nation at the weekend indicated that 44 companies have pending and unresolved compliance and governance issues that place them below the high standards required of quoted companies.

    The report, however, underlined an improvement from the previous number of 49 companies to 44 companies.

    The number of companies placed on red alert represents about a quarter of the total number of quoted companies at the NSE.

    The report was based on the Compliance Status Indicator (CSI) of the NSE, which uses three-letter code to mark out companies that fall below the post-listing requirements at the Exchange. The tracker is updated regularly with addition of newly deficient companies and release of newly compliant companies.

    The  companies under the red-alert warning included Union Bank of Nigeria; Skye Bank; Transcorp Hotels; Resort Savings and Loans; Evans Medical; Academy Press; Nigerian-German Chemicals and Caverton Offsshore Support Group.

    A breakdown of the compliance report indicated that about half of the companies were flagged for failure to submit their earnings reports within the scheduled timeline while others were tagged for free float deficiencies, delisting process, restructuring and other compounded regulatory issues.

    The flagged companies included Capital Hotel; Chellarams; Interlinked Technology; Infinity Trust Mortgage; E-Tranzact; Omatek Ventures; Roads Nigeria; Multi-Trex Integrated Foods; Aso Savings & Loans; Ekocorp; Ikeja Hotel; Union Homes and Savings; Deap Capital Management & Trust; International Energy Insurance; Afrik Pharmaceuticals; Anino International; African Paints; Goldlink Insurance and Thomas Wyatt Nigeria.

    Others included Golden Guinea Breweries; FTN Cocoa Processors; Austin Laz & Company; Daar Communications; Juli; Great Nigerian Insurance; Capital Oil; Union Dicon; Union Diagnostics; Universal Insurance; Premier Paints; Afromedia; Paints and Coatings Manufactures; Tourists Company of Nigeria; DN Tyres & Rubber and Smart Products Nigeria.

    The NSE uses 10 codes to tag companies with regulatory and compliance issues in order to draw attention to the unresolved deficiencies as part of efforts to enhance market integrity and ensure investors have full and transparent disclosures to make their decisions.

    The code-Below Listing Standard (BLS) comprises all deficiencies regarding continuing listing standards. Missed Regulatory Filing (MRF) implies that the company missed regulatory filing deadline. Delisting Watch-list (DWL) relates to companies that have been served with a delisting notice but the delisting process has been put on hold because they have received a stay of action from the Exchange for a defined period during, which they undertake to cure the issues that led to the issuance of the delisting notice. If they fail to cure the issue within the defined period or any extension thereof, the hold on the delisting process will be lifted.

    Also, Delisting in Progress (DIP) defines companies that are in the delisting process, mandatory or voluntary. Usually, the delisting process commences with a notice of intention to delist from The Exchange to an issuer, in the case of mandatory delisting, or to the Exchange from an issuer, in the case of voluntary delisting. Awaiting Regulatory Approval (AWR) implies that the companies that are awaiting the approval or no objection of their primary or another government regulator before releasing their audited financial statements.

    Other codes included Restructuring (RST), which relates to companies that are in the process of restructuring; Below Listing Standard and Missed Regulatory Filing (BMF), companies that  missed regulatory filing and were below listing standard; Below Listing Standard and Awaiting RegulatoryApproval (BAA), companies with below listing standard and awaiting regulatory approval; Below Listing Standard and Restructuring (BRS), below listing standard and restructuring; Missed Regulatory Filing and Restructuring (MRS), missed regulatory filing and restructuring; and Below Listing Standard, Missed Regulatory Filing and Restructuring (BMR), which defines companies with below listing standard, missed regulatory filing and restructuring codes.

  • SEC, NSE tackle Oando over preservative order prayer

    SEC, NSE tackle Oando over preservative order prayer

    The Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE) yesterday urged Federal High Court in Lagos to dismiss a motion filed by an oil firm, Oando Plc.

    Oando is seeking preservative orders in a suit it filed to challenge the technical suspension imposed on its shares to allow for a forensic auditing of its books.

    It wants the court to grant the injunction pending the outcome of its appeal challenging the suit’s transfer to the Investment and Securities Tribunal (IST).

    Justice Rilwan Aikawa, on November 23, struck out Oando’s suit, holding he lacked jurisdiction to entertain it.

    The judge said the appropriate forum to for the oil firm to ventilate its grievances was at the IST.

    Dissatisfied, Oando, through its lawyer Seyi Sowemimo (SAN), appealed.

    The oil firm also filed a motion before the lower court seeking an injunction to preserve the ‘res’ (subject-matter) pending the final determination of its appeal.

    Yesterday, SEC’s lawyer Chief Anthony Idigbe (SAN), arguing a counter-affidavit filed in opposition to Oando’s motion, noted that a motion for injunction calls for the exercise of the court’s jurisdiction.

    To him, since the court had already delivered a declarative judgment in the matter, there was nothing to be stayed.

    “The court is functus officio (without jurisdiction) after delivering judgment in the matter and we are entitled to the fruits of the judgment, which is basically the preservation of the interests of Oando’s shareholders.

    “Oando should go to the IST to seek the injunction it is seeking for. They have not told the court why they cannot go to the IST. Granting any injunction will be at the risk of the investing public’s interests.

    “They have equally not told the court what they will suffer if the forensic audit is done. We urge the court not to grant this request,” Idigbe said.

    NSE’s lawyer Chief Bolaji Ayorinde (SAN) also asked the court to dismiss the Oando’s motion and to affirm its earlier ruling by declining jurisdiction.

    But, Sowemimo urged the court to grant the motion, saying it was predicated on his client’s constitutionally guaranteed rights of appeal.

    According to him, the res Oando was asking the judge to preserve was the integrity of the appeal and not the fruits of the contentious ruling delivered by the court as claimed by the respondents.

    “If the res is not preserved, the appeal will be overreached and rendered nugatory,” he said.

  • Court turns down Oando, SEC, NSE’s case

    Court turns down Oando, SEC, NSE’s case

    •Directs parties to IST

    The Federal High Court (FHC) in Lagos yesterday declined jurisdiction on the case instituted by Oando Plc against capital market regulators, directing the parties to the Investment and Securities Tribunal (IST).

    The Nigerian Stock Exchange (NSE) had on Monday October 23, 2017 placed the shares of Oando on technical suspension, “thus, the shares will be available for trading but there will be no price movement while the technical suspension subsists”. The technical suspension was part of directives from the Securities and Exchange Commission (SEC), which ordered suspension of trading on the shares and forensic audit of the operations of Oando.

    Read Also: Investors strike 14 deals as Oando remains on technical suspension

    Oando obtained an interim court order on Monday October 23, 2017, restraining the NSE and any other party working on their behalf from giving effect to the directive of the SEC to implement a technical suspension of the shares of the company pending the hearing and determination of the motion for injunction and also an order restraining the SEC and any other parties claiming through or working on behalf of the Commission from conducting any forensic audit into the affairs of the company pending the hearing and determination of the motion for injunction. However, both the NSE and SEC were served with the enrolled court order on Tuesday, October 24, 2017 after the technical suspension was carried out by the NSE on Monday, October 23, 2017.

    At the court hearing yesterday on the Oando v SEC and others (FHC/L/CS/1601/17), Honourable Justice Aikawa of the Lagos Division of the Federal High Court declined jurisdiction on the matter and consequentially struck out the suit. The cost of N20,000 was awarded against the plaintiff in favour of the first defendant-SEC.

  • Hard Journey to the Boardroom

    Hard Journey to the Boardroom

    By Yetunde Oladeinde for The Nation

    The theme for this year’s International Women’s Day was Women in the Changing World of Work: Planet 50-50 by 2030. Around the world, women and men were invited to pledge their utmost efforts in achieving workplace gender parity by 2030.

    Sadly, in many parts of the world this remains an ambitious plan, notably in our native Nigeria. Walk into any boardroom in downtown Lagos or Abuja and it will be overwhelmingly male-dominated. Just what is stopping our Nigerian sisters from breaking the glass ceiling?

    The feminist movements of the 1960s and 1970s mean that in many developed countries, women have been pouring into the workplace for over 40 years.

    Yet the unfortunate reality is that Nigeria has been left lagging behind. In fact, a quick glance over the first 20 listed companies on the Nigeria Stock Exchange (NSE) reveals that seven of the listed companies don’t have a single woman on their board, and that five have only one woman each.

    Erelu Angela Adebayo, former first lady of Ekiti State and the first ever chairwoman of WEMABOD Estates Limited (one of Nigeria’s leading real estate firms) said: “I have been chairman of WEMABOD, chairman of Afriland Properties, board member of Dangote Foundation and many more. And in all of them, I am the only woman and it makes me think that I am a token woman.”

    Whilst the Nigerian economy has exploded and our industry has been catapulted into the 21st century, attitudes towards gender roles are deeply rooted in traditions and we raise our daughters accordingly.

    University education is very important to Nigerians—in elitist circles a Master’s degree from a foreign university will deem you excellent wife material, but not necessarily capable of holding your own in a company boardroom.

    The mentality in Nigeria simply doesn’t accommodate young women who come out of university keen to get going on establishing high-flying careers. As renowned Nigerian author and outspoken feminist Chimamanda Ngozi Adichie said on society’s attitudes to young women, “You can have ambition, but not too much, otherwise you’ll threaten the man.”

    The harsh reality is that we Nigerians raise our daughters to believe that they aren’t capable of reaching the same heights as men.
    Encouragingly, in spite of such circumstances and mentalities, organisations are popping up across the country to foster female leadership and help women climb the career ladder.

    One such initiative is Women in Successful Careers ( WISCAR ), created in 2008 by renowned Nigerian businesswoman Amina Oyagbola. WISCAR, based in Lagos, offers young professional women strategic guidance and support to assist them in better navigating their career pathways.

    WASCAR

    During her 25-year-long career, Oyagbola has noticed that without advice on how to navigate the corporate world, young professional women become confused and isolated, and suffer a loss of confidence in their ability to overcome these challenges.

    In response to such downfalls WISCAR provides young women with a one year long mentoring plan conducted by top-level professionals, and advocates for gender friendly policy in the corporate world.

    Women who do manage to make it to the top ranks of companies initiate positive change in both the corporate world and society as a whole. Indeed, female managers and CEOs are deemed more trustworthy and collaborative than their male counterparts.

    Nigerian economist Mrs Dr. Nike Akande noted: “They [women] possess very strong business ideas and seek to share their business ideas with others who may benefit from their discoveries.”

    Women are also better problem-solvers and mentors to young colleagues—benefitting the future of the company.
    Promisingly change is on the horizon, notably in the traditionally male dominated banking sector of Nigeria. Former Central Bank of Nigeria (CBN) governor, the Emir of Kano Sanusi Lamido Sanusi, put into place a policy stating that 40 percent of the bank’s top management and 30 percent of board directors should be women during his tenure at the CBN—which lasted from 2009 to 2014.

    “I am a very strong believer in diversity, be it gender, ethnic or religious, but I believe it can never be achieved by sacrificing merit and competence,” he said.

    What remains clear for the moment is that Nigerian women are highly capable professional women, pushing for change in a patriarchal corporate world that is slowly beginning to shift.

    How do we speed up the process of obtaining better gender equality in the professional world? Whilst this may remain a tricky question to answer, one possible option may be to take a page from the Nigerian banking sector’s book.

  • NSE bans guaranteed returns on investments

    NSE bans guaranteed returns on investments

    Investors must not expect any guaranteed returns from their transactions at the Nigerian Stock market and stockbrokers must not make any promise of such guaranteed returns in their dealings with investors.

    The Nigerian Stock Exchange (NSE) has concluded arrangements to enforce a blanket ban on any form of guaranteed returns by stockbroking firms, as part of efforts to clearly outline the risk horizon of quoted securities and plug any loophole that has lured many unsuspecting investors into bogus investment schemes.

    A circular issued by the NSE and obtained by The Nation at the weekend, indicated that the Exchange would be launching a major enforcement framework against transactions based on guaranteed returns.

    According to the draft rules, all stockbroking firms, or dealing members shall not enter into any business relationship with a client premised on a guaranteed return to the client, and this caveat of no guarantee shall be stated clearly in communications to the clients.

    With this, stockbroking firms and dealing members shall not guarantee, directly or indirectly, a customer against loss in any account or in any securities transaction executed by the dealing member for such customer, or previously agreed with the customer on a profit margin.

    The new rules seek to impose stiff penalties on defaulters including expulsion, suspension and monetary fine.

    According to the draft framework, the Exchange may exercise all or any of the following disciplinary sanctions against any dealing member that violates the “no guarantee return” rule including suspension of the dealing member from trading on the floors for a period not less than 10 business days and suspension of the stockbroker for a period to be determined under the disciplinary process of the Exchange, and or revocation of the registration of the stockbroker involved.

    Also, where a dealing member offers a guaranteed investment product to its clients with respect to investment in securities, the sanction shall be a fine not less than N5 million, and a further penalty not less than N20,000 for every day from when the firm is sanctioned by the Exchange until the dealing member completes the payment of the fine.

    Besides, where the compliance officer of the dealing member has knowledge of a violation of this rule but fails to report to the Exchange, such a compliance officer shall be blacklisted while the dealing member may be expelled from the Exchange.

  • Shareholders back NSE’s one-kobo pricing rules

    Shareholders back NSE’s one-kobo pricing rules

    Retail shareholders have expressed support for the planned implementation of a new pricing rule that will allow stocks on the Nigerian Stock Exchange (NSE) to trade below their nominal value and as low as one kobo.

    The Nation had reported exclusively last week that the NSE has concluded arrangements to begin implementation of new pricing rules that will remove the current stopgap that has supported stocks at their nominal value and allow shares of quoted companies to trade as low as one kobo. The new rule shall stake effect on Monday January 29, 2018.

    President, Association for the Advancement of Rights of Nigerian Shareholders (AARNS), Dr Faruk Umar said the new rule will lead to more effective price discovery at the stock market.

    “It is good, there are many stocks that are not worth more than one kobo at the market but currently pegged at 50 kobo because of the nominal value rule,” Umar said.

    National President, Constance Shareholders’ Association of Nigeria, Mr. Shehu Mikail, said the new pricing rule may lead to increased liquidity in the dormant stocks since new price discovery may encourage investors to take risks in the low-priced stocks.

    According to him, the new pricing rule may enable dormant companies to attract new investors who are looking for bargains.

    “The new rule will create opportunity for most of the companies that have not been traded for a long time to come back on board. It may also make directors of the companies to take their share prices more serious,” Mikail said.

    However, Chairman, Standard Shareholders Association of Nigeria, Mr. Godwin Anono, said the new rule will lead to more losses for investors, urging the Exchange to sustain the current rule that limits price decline to the nominal value.

    He described the new rule as a double-edged sword that can fuel hostile acquisitions and cause disruptions in the market.

    He said the Exchange should focus on providing more accurate information about the market and protecting the integrity of the market rather than tinkering with rules.

    “It is another way of grounding a lot of companies. Leave it at 50 kobo, there are many ways of stimulating price discovery, it is not good,” Anono said.

    Under the new pricing rules, share prices shall be allowed to trade as low as a floor price of one kobo. The new rule will effectively remove the current rule which places minimum allowable price to trade for any stock at its nominal value, irrespective of the market forces.

    The new rules stipulates that “notwithstanding its par value, the price of every share listed on the Exchange shall be determined by the market, save that no share shall trade below a price floor of one Kobo per unit”.

    Par value is the nominal value of a share as stated in the Memorandum of Association of the company while price floor means the amount below which the price of one unit of a share shall not be permitted to trade, and the minimum amount which must be paid for a share in the event of a drop in the unit price of that share.

    Regulatory documents obtained by The Nation had indicated that the amendments to the pricing technology at the stock market will also see a categorisation of quoted companies under three groups with different pricing rules.

  • NSE market capitalisation rises by N29bn

    NSE market capitalisation rises by N29bn

    The market capitalisation of Nigerian Stock Exchange (NSE) rose by N29 billion on Tuesday following rekindled investors’ confidence.

    The News Agency of Nigeria (NAN) reports that the market capitalisation rose by N29 billion or 0.23 per cent to close at N12.810 trillion from N12.781 trillion recorded on Monday.

    Also, the All-share index grew by 82.74 basis points to 37, 013.57 from 36, 930.83 achieved on monday.
    In all, Investors traded 305.171 million shares worth N2.905 billion in 4399 deals, against 466.522 million shares worth N2.90 billion exchanged in 4, 274 deals on Monday.
    Total Nigeria led on price gainers’ chart, appreciating by N5 to close at N229 per share, while Dangote Cement followed with a gain of N2 to close at N229 per share.
    UACN rose by 72k to close at N19.10 per share, while Guaranty Trust Bank appreciated by 28k to close at N42.03 per share.

    Dangote Sugar Refinery gained 15k to close at N15.50 per share.

    Mobil Oil topped the price losers’ chart, dropping N8.02 to close at N153.01, while International Breweries lost 4.20 kobo to close at N41.00 per share.

    Nigerian Breweries depreciated by 89k to close at N144.10 per share, while National Salt Company of Nigeria fell by 48 k to close at N15.52 per share.

    Eterna oil depreciated by 19k to close at N4.16 per share.

    On the activity chart, Diamond Bank was the most active, trading 83.12 million shares worth N98.16 million, while Fidelity Bank followed with 39.92 million shares valued at N66.27 million.

    Cadbury Nigeria sold 37.85 million shares worth at N391.72 million.

    FBNHoldings traded 34.31 million shares worth N241.13 million, while Meyer Paint exchanged 16.50 million shares worth N11.55 million.

  • Firms to trade at one kobo as NSE begins new pricing rules

    Firms to trade at one kobo as NSE begins new pricing rules

    The Nigerian Stock Exchange ( NSE ) is to begin the implementation of new pricing rules that will remove the stopgap that has supported stocks at their nominal value. The new rules will allow shares of quoted companies to trade for as low as one kobo.

    The new rules will effectively remove the current rule, which places minimum allowable price to trade for any stock at its nominal value, irrespective of the market forces.

    The new rules stipulate that “notwithstanding its par value, the price of every share listed on the Exchange shall be determined by the market, save that no share shall trade below a price floor of one Kobo per unit”.

    Par value is the nominal value of a share as stated in the Memorandum of Association of the company while price floor means the amount below which the price of one unit of a share shall not be permitted to trade, and the minimum amount which must be paid for a share in the event of a drop in the unit price of that share.

    Regulatory documents obtained at the weekend also indicated that the amendments to the pricing technology at the stock market will see a categorisation of quoted companies under three groups with different pricing rules.

    The tick size, the minimum price movement by which the price of a trading instrument can change, will also be lowered to as low as one kobo. Although all quoted companies shall continue to trade within the current pricing band of 10 per cent maximum allowable change per day.

    Under the new groupings and pricing rules, which shall take effect on Monday January 29, 2018, stocks under the first category, 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 at the time of listing on the Exchange.

    Read: Price of garri drops by 60% in Enugu

    The second category, 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 that are priced at N5 per share or above but less than N100 per share at the time of listing on the Exchange.

    The third category, 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 for at least four of the last six months, or new security listings that are priced at one kobo per share or, but below N5 per share at the time of listing on the Exchange.

    The new rules expectedly link price movements and minimum quantity of equities traded that will change the published price of an equity security. Stocks under Group A shall have price change with minimum of 10,000 units; stocks under Group B shall have price movement with a minimum of 50,000 units while stocks under Group C shall have price change with minimum volume of 100,000 units.

    The tick size, which is the minimum price movement that any equity shall trade, shall also be linked to the groups. Group A will have a tick size of 10 kobo, Group B, five kobo while Group C will have a tick size of one kobo. This implies that the share price of each stock shall be allowed to move up or down in multiples of its tick size.

    The Nation’s check at the weekend indicated that there were only nine stocks under the “high-priced stocks” category of Group A. These include Dangote Cement Plc; Mobil Oil Nigeria Plc; Nestle Nigeria Plc; Nigerian Breweries Plc; SIM Capital Fund; Skye Shelter Fund; Nigerian Energy Sector Fund (NESF); Total Nigeria Plc and Seplat Petroleum Development Company Plc

    The Nation’s check also indicated that at least two-thirds of quoted companies fall under the Group C and about a quarter of quoted companies may drop below their nominal values upon the implementation of the new pricing rules.

    A large part of quoted companies have been stagnant at their nominal value for many years and have been on supply, a market euphemism for shares glut and sell pressure. Most of the stocks have been sustained by the current rule of a stopgap of nominal value.

    Market pundits said the new pricing rules will enhance the price discovery mechanism of the stock market, noting that the new rules are in tandem with the market’s principle of demand and supply as price-determinant at the stock market.

    Read Also: Malaysia 2018 palm oil output to rise by 2.5%

  • PEARL Awards lauds NSE

    PEARL Awards Nigeria has commended the management of the Nigerian Stock Exchange (NSE) for its focused initiatives and innovations aimed at enhancing the development of the capital market.

    Speaking during a courtesy visit by the PEARL Awards Board of Governors to the NSE in Lagos, President, PEARL Awards Nigeria, Mr. Tayo Orekoya, noted the increasing restoration of investors’ confidence in the capital market, which has been resulting in higher trading transactions, robust yield and returns to investors.

    Alluding to the trajectory of the PEARL Awards during the visit, Orekoya restated that the Awards was instituted in 1995 to reward quoted companies for actual operational performance based on verifiable facts and figures. This according to him has endeared the Awards to the capital market stakeholders over the years.

    While thanking the NSE for its support for the Awards Project in the past years, Orekoya solicited for continued support of the NSE for the PEARL Awards Project.

    In his remarks, Chief Executive Officer, Nigerian Stock Exchange (NSE), Mr. Oscar Onyema attributed the success of the NSE to team work by the management and staff of the Exchange.

    He commended the PEARL Awards for its resilience and ability to weather the storm over the past 22 years of its existence.

    He congratulated the Awards Board of Governors for staying the course both in the good and bad economic climates with a pledge to continue to support the Awards as one of the initiatives dedicated to promoting market development.