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Tag: NSE

  • NSE partially lifts suspension on Oando

    NSE partially lifts suspension on Oando

    The Nigerian Stock Exchange (NSE) says it has partially lifted the suspension placed on shares belonging to Oando Plc.

    A notice endorsed by its  General Counsel/ Head of Regulation, Tinuade Awe, said shareholders can now trade their shares but the trading activity will not lead to a change in price.

    It reads: “Dealing members are referred to our market bulletins of Wednesday, October 18, 2017 (NSE/LARD/LRD/MB05/17/10/18) notifying them that effective Friday, October 20, 2017 and until further directive, the shares of Oando Plc (“Oando” or “the company”) will be placed on technical suspension; and that of Friday, October 20, 2017 (NSE/LARD/LRD/MB07/17/10/20) informing them that the shares of Oando were still on full suspension as the process of converting from full to technical suspension was yet to be completed.

    “Please be informed that effective today, Monday, October 23, 2017; the shares of Oando Plc have been placed on technical suspension. Thus, the shares will be available for trading but there will be no price movement while the technical suspension subsists.”

    The regulator had suspended the company’s shares last week following a request from the Securities Exchange Commission (SEC).

  • NSE downgrades 7-Up from special pricing status

    The Nigerian Stock Exchange (NSE) has downgraded Seven-Up Bottling Company Plc from its special pricing status category following the depreciation in share price of the company.

    The “high-priced stocks”, according to the NSE categorization, are stocks with share prices of N100 and above and regular and pre-determined level of activities. In 2012, the NSE had alongside the introduction of market-making introduced a pilot programme under which stockbrokers could move prices of “high priced stocks” with 10,000 shares as against the general operating rule of 50,000 shares for the movement of share prices of other stocks.

    In a circular obtained at the weekend, the NSE indicated that it would downgrade Seven-Up Bottling Company from a “high-priced stock” category to the general stock category with effect from today, Monday October 23, 2017.

    With the reclassification of Seven-Up Bottling Company from the “high-priced stocks” list, stockbrokers will only be able to move the share price of the company with 50,000 shares.

    “We bring to your notice that 7up Bottling Plc has qualified to be reclassified from a high-price stock to a medium-priced stock, as the company’s shares hit below the N100 mark on 30 May 2017, and trades below N100 up till the close of business on 17 October 2017. This indicates that 7up Bottling Plc has traded below N100 in at least four out of the last six months. The stockbrokers will be able to move the price of 7up Bottling Plc with 50,000 units with effect from 23rd, October 2017,” the NSE stated.

    With this, there are now nine stocks under the “high-priced stocks” including 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 Exchange noted that it had introduced the “high-price stock” category as part of market segmentation programme to improve liquidity and deepen the market.

    For upwards or downwards movement of price to occur on any security that is priced at below N100 and listed on The NSE, Stockbrokers are required to trade a volume of 50,000 units of  shares and above. Conversely, for securities priced at N100 and above, stockbrokers could move prices of these high priced stocks with 10,000 units of shares. These high priced stocks are securities that have traded an average of N100 or more per share and below N100 respectively in four out of the last six months period.

  • Fintech Nigeria engages CBN, NSE on innovation in financial tech

    The Central Bank of Nigeria (CBN) and the Nigerian Stock Exchange (NSE) have commended the Fintech Association of Nigeria for its efforts in bridging the gap between the regulators, government and the active players in the Nigerian Fintech ecosystem.

    In a separate meeting between the members of the Governing Council of the Fintech Nigeria, led by its President, Dr. Segun Aina Director, Banking and Payment CBN, Mr. Dipo Fatokun and  the Executive Director, Market Operations and Technology NSE,  Mr. Ade Bajomo; both the CBN and NSE agreed with the justification for setting up of Fintech NGR, adding that its  establishment was long overdue for the development of FinTech ecosystem in Nigeria.

    While emphasizing the importance of Fintech Nigeria, Aina said the association would leverage its global network to bring best practices to the FinTech initiatives of the CBN thereby assisting the bank to achieve its mandate more effectively and efficiently as the association serves as the arrowhead for the coordination of the ecosystem.

    “The joint initiatives of the association (FintechNGR) and CBN is meant to drive the benefits of financial inclusion down the bottom of the pyramid,” said  Bunmi Lawson, Vice President, FintechNGR and  CEO of Accion Microfinance Bank.

    The General Secretary, FintechNGR and Associate Partner at Banwo&Ighodalo,  Isa Alade, while commending the idea behind Fintech Nigeria said: ” The association by its network of membership would serve to remove regulatory bottlenecks that stifle innovation as it bridges the gap between the innovators, government and regulators.” Speaking further, Aina said that the establishment of the association would also engender inter-agency relationship amongst regulators and the government comprising CBN, SEC, NSE, NAICOM, NDIC, amongst others.

    Olufemi Awoyemi, member, FintechNGRGovCo and founder/CEO of Proshare Ltd also emphasised the need for collaborative efforts within the ecosystem as it would unleash the massive potential in the Nigerian FinTech ecosystem, adding that the “association would serve to bridge information gaps amongst various stakeholders in the FinTech ecosystem thereby enabling access to the opportunities that abound within the space.”

    At the end of the meeting, the CBN promised to incorporate Fintech Association to presentations on FinTech regulation in Nigeria and make available the final draft to the association for inputs.

    FintechNGR will also be involved in the drive to give digital banks, otherwise known as Challenger Banks, prominence in Nigeria through fashioning out an appropriate licensing regime working with various departments of the Central Bank.

    The meeting also agreed that the CBN will formally inform the association and will be carried along with regards to the outcome of the sandbox experience initiative currently being undertaken by the Central Bank in partnership with a global foundation; an engagement for which stakeholder engagement is paramount to the CBN.

    Fatokun of the CBN said that the apex bank  through the banks and payment system department would be happy to be a part of the knowledge development and market feedback events organized by the FintechNGR and its partners starting with 2nd National Fintech Conference coming up from 24th to 26th January 2018.

    On the other hand, the NSE Executive Director, Mr. Ade Bajomo, stated that the NSE,  subject to approval of its management, sees this collaborative approach as an extension of its market data, new business development and strategic push for a more integrated securities and financial market and hence will be happy to explore opportunities the planned conference presents with a focus on sector specific sessions at the conference; and will also consider extending opportunities for the association to participate in focus group sessions on key development areas being worked on by the bourse specifically targeted at creating accessible funding modules for startups through the NSE.

    At both meetings, the association was tasked to ramp up the work in and around issues bothering on Fintech to the attention of the regulators and government with a focus on actual solutions that bring the largely informal markets into the formal/mainstream financial system, expand on the financial inclusion benchmarks and ensure that regulation promotes, rather than stifle creative solutions; all of which is better achieved through a collaborative and constructive engagement platform that delivers a comparable benchmark with global standards.

    The consistent engagement between the association, regulators and government would surely promote home made innovative finTechsolutions,which would impact positively on the economy and the society at large.

  • NSE lifts suspension on Thomas Wyatt, African Alliance Insurance

    NSE lifts suspension on Thomas Wyatt, African Alliance Insurance

    The Nigerian Stock Exchange (NSE) has lifted the suspension it placed on trading on the shares of Thomas Wyatt Nigeria Plc and African Alliance Insurance. The resumption of trading on the two companies was sequel to the submission of the relevant earnings reports of the companies.

    According to the Exchange, Thomas Wyatt Nigeria, which was one of the companies suspended recently, submitted its audited accounts for the period ended March 31, 2017 on October 06 2017.

    “In view of the submission of the relevant accounts and our satisfaction that the accounts complied with our applicable rules, the Exchange has lifted the suspension of trading in the shares of Thomas Wyatt Nigeria Plc,” the NSE stated. Trading resumed on Thomas Wyatt on Monday, October 9, 2017.

    The NSE stated that it lifted the suspension on African Alliance Insurance on October 10, 2017 after the Exchange was satisfied that the submitted accounts complied with applicable rules.

    The NSE had recently suspended trading on the shares of four companies following the failure of the companies to adhere to best corporate governance and extant post-listing requirements. Three other companies remain under suspension including Academy Press Plc,  Nigerian German Chemical Plc and Roads Nigeria Plc.

    The companies were suspended after they failed to file their accounts and operational reports as required by the listing rules at the Exchange. The suspension will remain in place until the companies file the relevant accounts and reports.

    With the suspension, investors will not be able to trade on the shares of the companies, thus denying them opportunities to raise funds through such investments in case of financial needs.

    Post-listing rules at the NSE require quoted companies to submit their audited earnings reports, not later than 90 calendar days, or three months, after the expiration of the period. The rules also require quoted companies to submit interim report not later than 30 calendar days after the end of the relevant period.

  • Capital market… ’capital’ penalty

    Capital market… ’capital’ penalty

    Last week’s indictment and expulsion of Managing Director of Partnership Investment Company Plc and Partnership Securities Limited, Mr Victor Ogiemwonyi, has opened up the capital market to public scrutiny, writes Capital Market Editor Taofik Salako.

    Suave, knowledgeable and amiable, Victor Ogiemwonyi was unmistakably one of the leading lights of the capital market. His knowledge about the capital market is vast and he rises almost spontaneously to defend the market interest.

    A fellow and former council member of the Chartered Institute of Stockbrokers (CIS), former council member of the Nigerian Stock Exchange (NSE), former president of the Association of Issuing Houses of Nigeria (AIHN), member of the Capital Market Masterplan Implementation Committee and member of the board of the NASD Plc among others, Ogiemwonyi was one of the leaders of the market during his time. His company-Partnership Investment Company Plc was one of the few stockbroking-originated investment companies that were listed on the NASD Plc-the alternative over-the-counter (OTC) securities exchange for listing of public limited liability companies that are not listed on the NSE. All these came crashing last week with the announcement of his indictment by the Administrative Proceedings Committee (APC) – the adjudicatory arm of the Securities and Exchange Commission (SEC).

     

    Long-awaited rulings

     

    After more than a year of wide-ranging investigation, SEC last week indicted Ogiemwonyi, banning him from engaging in capital market activities and from holding directorship position in any public company in Nigeria. SEC also withdrew the operating licenses of his companies. The commission also suspended the chairman of the companies, Mr. Henry Omoragbon, from engaging in capital market activities in Nigeria for five years.

    Ogiemwonyi and his companies allegedly engaged in unauthorised sale of clients’ shares, failure and refusal to resolve clients’ complaints, performance of a capital market function without registration, non-compliance with the Code of Corporate Governance of the commission, filing of false and misleading information and non-compliance with the commission’s rules relating to assets-mix ratio.

    They were also accused of non-compliance with the commission’s rules on disclosure of transactions valued at N50 million and above executed in a single day, soliciting deposits from the public and other violations of the Investments and Securities Act, 2007, SEC Rules and Regulations, the Code of Conduct for Capital Market Operators and their Employees and Code of Corporate Governance for Public Companies.

    Ogiemwonyi was also ordered to pay a penalty of N100, 000 for breach of Rule 1(iii) of the Code of Conduct for Capital Market Operators and their Employees as contained in the SEC Rules and Regulations made pursuant to the Investments and Securities Act 2007. Omoragbon was also ordered to pay a penalty of N100, 000 for breach of Rule 1(iii) of the Code of Conduct for Capital Market Operators and their Employees as contained in the SEC Rules and Regulations made pursuant to the Investments and Securities Act 2007.

    Some Directors of the company, Mr. Ojetunde Taiwo, Mrs. Ogiemwonyi Olufunke, Mr. Ogiamien Frank, Mr. Adeusi Aladejola Alexander and Mrs Arese Ugwu, were also suspended for five years from engaging in capital market activities. They were also banned from holding directorship positions in any public company in Nigeria for the period of five years and were ordered to pay a penalty of N100, 000 each for breach of Rule 1(iii) of the Code of Conduct for Capital Market Operators and their Employees as contained in the SEC Rules and Regulations made pursuant to the Investments and Securities Act 2007.

    Also, Mr. Eseha Augustine Enejeta, a manager in the company, was suspended for a period of one year from engaging in capital market activities. He was also ordered to pay a penalty of N100, 000 for breach of Rule 1(iii) of the Code of Conduct for Capital Market Operators and their Employees as contained in the SEC Rules and Regulations made pursuant to the Investments and Securities Act 2007.

    The commission also ordered Partnership Securities to restore to Mr Cletus Mbaji Uchendu 48,200 shares of Forte Oil Plc, which were allegedly sold without the client’s authority. The order for restoration also included all accrued benefits to the client such as bonuses and dividends from May 23, 1997 to date.

     

    Road to infamy

     

    The composition of the APC was sequel to several complaints filed by investors against Ogiemwonyi and his companies. Some 300 investors alleged that they were swindled of more than N4.8 billion in investment schemes promoted by Partnership Securities Limited (PSL). Representatives of the investors alleged that they were approached by Ogiemwonyi to surrender their shares to him for management under his Partnership Securities Deposit Account (PSDA) with a promise to provide a guaranteed return periodically. Shares worth more than N4.8 billion were misappropriated through this scheme.

    SEC and NSE in the last quarter of 2016 conducted joint investigations into the activities of PSL. Preliminary investigations by the capital market regulators said the authorities had established a case of illegal activities against Partnership Securities as the operation of the scheme and guaranteed returns ran contrary to the mandate of the securities firm. Guaranteed investment scheme is prohibited by the Rules of the Exchange, and violation under this rule may fall under engaging in illegal activities and transactions. Such violations carry wide-ranging fines and sanctions under the rules of the market, including monetary sanction, revocation of dealership license and cancellation of stockbroking license.

    One of the highpoints of the cases involved the former chief executive of Ecobank Transnational Incorporated (ETI) Plc, Mr Arnold Ekpe, an ally and client of Ogiemwonyi. Ekpe mandated his stockbroking firm, Partnership Securities Limited, to sell his 96.08 million ordinary shares of ETI. Ogiemwonyi allegedly sold the shares but only remitted N300 million of the total proceeds of N1.54 billion to Ekpe. Ekpe, in a complaint lodged at the Exchange dated October 16, 2016, alleged that PSL misappropriated N1.237 billion being part of the proceeds of sale of Ekpe’s 96.08 million shares of Ecobank Transnational Incorporated Plc and dividends of $80,000. Ekpe also alleged that although he completed a form indicating that the proceeds of the share sales should be paid into his bank account under the Direct Cash Settlement system, PSL elected to pay the proceeds into its own account and misappropriated the funds.

    The Exchange on October 18, last year suspended PSL from trading on all its floors nationwide. The Exchange also on October 19, last year informed SEC of the complaint and requested for a joint examination of PSL and its associated companies. SEC as early as first quarter of 2016 started conducting silent investigation on PSL. SEC already saw a clear-cut case against Ogiemwonyi. In a February 2016 letter, SEC noted that available documents indicted PSL and that the broker-dealer was liable and would be held responsible for the defalcation of illegal conversion of sales’ proceeds.

    The Ekpe case against Ogiemwonyi appeared iron cast and he allegedly admitted culpability. “Further to our mandate to sell your 96,077,872 shares of Ecobank Transnational Incorporated at the fixed price of N16 per share, we confirm that the shares were sold by us for a total of N1.537 billion out of which N300, 000,000 has been paid to you. We confirm that outstanding proceeds from the sale have been misappropriated by us and we undertake to meet the obligation of N1.237 billion and $80, 000,”   Ogiemwonyi stated in one of the documents tendered.

    SEC took advantage of the existing agreements between the capital market regulators and the Economic and Financial Crimes Commission (EFCC) to lodge a direct complaint with the anti-corruption agency. EFCC conducted preliminary investigation and arraigned Ogiemwonyi before the High Court of Lagos for sundry offences, including stealing and dishonest conversion of proceeds of share sale. Ogiemwonyi was ordered remanded in Ikoyi prisons.

    The Ekpe case appeared to blow the lid off the can of iniquities at Ogiemwonyi’s companies. Other investors appeared with allegations of fraud and mismanagement. Some of the other victims included Mr.  Godwin  Anono,   Chairman, Standard  Shareholders Association of Nigeria, who claimed N160  million worth of shares,  Mr. Alabi Olusola  with over N12.540 million worth of shares and Mr. Solesi Samuel with over N40 million worth of shares among others.

    Olusola said Ogiemwonyi called him to deposit his shares, which had not been traded over the years, in the custody of his stockbroking firm to manage those shares and generate 10 per cent returns, which would be paid to Alabi twice a year.

    “When I look at the proposal, it was reasonable and the man involved is a prominent council member of the NSE. I trusted him.  I did not enter the deal with an unregistered operator and it was not that he offered me a fantastic return, but a reasonable return.  The deal was such that I can back out at any time I wish. When in 2014 the returns were not forth coming, Ogiemwonyi started giving one excuse or the other; that the returns are being reinvested; it was then I realised that he was playing foul, hence  I demanded for my shares which could not be returned to me,” Alabi said.

    After excruciating investigation, the Head of Enforcement Department at SEC lodged complaint at the APC, which invited all respondents to submit their claims. In the matter, the respondents included Partnership Investment Company, 1st respondent; Partnership Securities Limited, 2nd respondent; Mr. Henry Omoragbon, 3rd respondent; Mr. Victor Ogiemwonyi, 4th respondent; Mr. Allan Omorogba, 5th respondent; Mr. Ojetunde Taiwo, 6th respondent; Mrs. Ogiemwonyi Olufunke, 7th respondent; Mr. Ogiamien Frank, 8th respondent; Mr. Adeusi Aladejola Alexander, 9th respondent; Mr. Eseha Augustine Enejeta, 10th respondent; Mr. Odihi-Ogiemien Frank, 11th respondent; Dr. Bello Aliyu Gusau, 12th respondent; Mr. Olafisika Akinkugbe, 13th respondent; Mrs Arese Ugwu, 14th respondent; Mrs. Yinka Omoragbe, 15th respondent; Mr. Justus Olu Paul, 16th respondent; Mr. Clem Baiye, 17th respondent and Mr. S.C. Irune, 18th respondent. The APC concluded that “by their actions and or omissions the 1st, 2nd, 3rd, 4th, 6th, 7th, 8th, 9th, 10th, 11th, and 14th respondents engaged in acts capable of adversely affecting the investing public’s image of, and confidence in the capital market”.

     

    No sacred cow

     

    The latest indictments reechoed the tough stance of capital market regulators on fraudulent practices, especially unauthorised sale of client’s shares and misappropriation of client’s funds. SEC and the NSE as well as the CIS have been combative when it comes to infringement on market integrity. With some N13 trillion equities listed on the NSE and the almost limitless capacity of the primary market to raise funds, the market thrives on integrity and all stakeholders are usually unanimous on this. So, when the hammer falls, there is usually no comradeship and sacred cow. In another high-profile case, SEC had earlier this year banned ebullient investment banker, Mr. Albert Okumagba and Mr. Chibundu Edozie and their companies, BGL Assets Management Limited and BGL Securities Limited from ever participating in the capital market. Okumagba and Edozie were also banned for life from holding office in any public company in Nigeria. Okumagba was also a force to reckon with in the capital market, having served at the top echelon of the organs including as president of the CIS.

    Okumagba’s case was however quite different, because it involved no unauthorised sale or diversion of client’s funds but rested on equally dangerous terrain of asset management. Even though a client or an investor can willingly sign on to an investment management agreement, the onus rests on the capital market operator to ensure that the investment agreement is in line with capital market rules and the operator’s registered function. That was the Achilles heel of BGL-one of Nigeria’s most robust investment banking firms.

    SEC had received 32 complaints between 2012 and 2015 against the BGL companies over certain conducts in relation to operations of their Guaranteed Consolidated Notes (GCN) and Guaranteed Premium Notes (GPN).

    SEC had, through the EFCC, pursued and secured conviction of a stockbroker and former managing director of First Alstate Securities Limited, Mr Tajudeen Folaji, who was sentenced to seven years imprisonment by the Lagos State High Court over fraudulent sale of his client’s shares. The Lagos State High Court presided over by Justice Kudirat Jose found Folaji guilty of unauthorised sale of shares and stealing for fraudulently converting 31,886,200 shares of IPWA Plc  valued at N331.3 million belonging to an investor on April 3, 2008. The court also has imposed a N20 million fine on First Alstate Securities Limited where he was the managing director and dealing clerk. Besides, the court directed the EFCC to trace and liquidate properties belonging to the convict to restitute the investor.

    The NSE has this year expelled not less than 88 stockbroking.  The expulsion also implies that the expelled firms will not be able to act as stockbroking agent in other countries that have Memorandum of Understanding (MoU) with Nigerian capital market authorities.  Nigerian capital market has standing bilateral agreements with several other jurisdictions including Morocco, Angola, China, Ghana, Kenya, Malaysia, Mauritius, South Africa, Tanzania and Uganda.

    President, Association of Issuing Houses of Nigeria (AIHN), Mr. Sonnie Ayere has called for a pragmatic approach to address the problem of illiquidity by reviewing the practice rules and scope of operations of stockbroking firms to make them more viable and profitable.

    Ayere, who is also Managing Director of Dunn Loren Merrifield Group, cited the example of Malaysia that reformed the stockbroking ecosystem with the introduction of universal brokers, which were allowed to access the interbank market to undertake borrowing or lending of funds.

    Many stockbroking firms and stockbrokers have been found to be carrying out transactions at the equities market without adequate funding of their accounts, thus exacerbating settlement risks at the market.

     

    A pact for investor’s protection

     

    While few untoward cases like Ogiemwonyi’s highlighted market risks, a cursory review undoubtedly shows that the Nigerian capital market has comprehensive internal and external frameworks to safeguard investors and market integrity. While subsisting MoUs with not less than 10 other countries grant Nigerian capital market regulator international leverage to checkmate domestic illegalities, SEC and NSE have subsisting cooperation agreement with the EFCC that enables the capital market regulators to pursue further enforcement of regulatory actions. While the ISA empowered SEC protect investors, it has limitations over criminal cases. The agreement with the EFCC covers the loopholes.

    Director General, Securities and Exchange Commission (SEC), Mr. Mounir Gwarzo, said key initiatives such as recapitalization of operators, direct cash settlement, e-dividend, national investors protection fund (NIPF), and code of corporate governance among others would help to strengthen investor’s protection and block loopholes.

    Chief Executive Officer, Nigerian Stock Exchange (NSE), Mr Oscar Onyema, said authorities at the Exchange have implemented far-reaching transformational programmes that have improved market access and provided products that are aligned to investors’ requirements. He added that the introduction of several transparency initiatives such as BrokerTrax, X-Compliance, X-Whistle, Compliance Status Indicator symbols, X-Issuer and X- Alert among others have brought significant sanity to the market place and provided for a fair and orderly market.

    Managing Director, Solid-Rock Securities and Investment Plc and President of the Association of Stockbroking Houses of Nigeria (ASHON), Mr. Patrick Ezeagu told The Nation that the involvement of some capital operators in illegal activities was an exception rather than the norm.

    “In any association or group, there is bound to be few bad eggs and the actions or activities of these few do not criminalise the entire members. We have, in conjunction with the regulators, put in place a robust compliant management framework to ensure the quick resolution of complaints in the market. We have zero tolerance to infractions and if you check very well, you will see that the rate of infraction is probably the lowest in the capital market. There are many structures put in place to safeguard investors and their investments,” Ezeagu said.

    President, Chartered Institute of Stockbrokers (CIS), Mr Oluwaseyi Abe said investor protection would always remain a topmost priority for the regulators and operators in the capital market. He said the CIS would continue to collaborate with the regulators to ensure that stockbrokers keep to the dictum: “My word is my bond”.

  • NSE organises 2nd market data workshop

    NSE organises 2nd market data workshop

    The Nigerian Stock Exchange (NSE) in partnership with Thomson Reuters and other capital market participants, is set to host the second edition of the NSE Market Data Workshop. The event will hold on  4 October, at The Civic Centre, Victoria Island, Lagos.

    The workshop with the theme: “Market Data: The bedrock of wealth creation”, will bring together investors, market data aggregators, Exchanges, market regulators, government agencies, broker dealers and capital market stakeholders, which will create a convergence of informed and educated players in the capital market.

    The underlying objective of the workshop is to increase awareness on the critical role of market data as a fundamental pillar for wealth creation while leveraging on strategic synergies and technologies to drive market participation.

    Some of the confirmed speakers for the event include Mr. Mounir H. Gwarzo – DG, Securities and Exchange Commission, Mr. Bismarck Rewane – Managing Director, Financial Derivatives Company Limited, Mr. Ekow Afedzie – Deputy Managing Director, Ghana Stock Exchange, Mr Euvin Naidoo- Head of Financial Institutions for Africa- Thomson Reuters, Mrs Titi Odunfa Adeoye – Founder and Managing Director of Sankore Investments and others.

    Interested participants can register here: www.nse.com.ng/mdw2017

    The one-day event which is an exhibition style workshop will feature presentations and panel discussions from thought leaders within the industry.

    The 2017 agenda will address market-data related challenges and present opportunities to learn new methods of gaining business insight and making informed investment decisions. It will also bring together other African Exchanges and members of the media to explore new and innovative ways of collaborating together and disseminating market information that will sustain and enhance an informed investor community

    According to the Executive Director, Market Operations and Technology, NSE, Mr. Ade Bajomo, “The conference brings to fore the critical application of market data in making sound investment decisions whilst highlighting the various data products available in the Nigerian marketplace, thereby allowing investors to maximize their wealth creation opportunities. This is a must attend event for all market participants.”

    The Nigerian Stock Exchange in partnership with Thomson Reuters is collaborating with Sankore Investments, Elev8Media, ARM Securities, Infoware, Unilever Nigeria Plc, Zanibal Solutions, ZagTrader, Globaltrybe, NTEL and other FINTECH institutions and stakeholders that thrive on market data, technology, and innovation to meet their business needs.

    Managing Director, Africa, Thomson Reuters, Sneha Shah, said: “We are delighted to conduct a market data workshop in partnership with the Nigerian Stock Exchange on October 4th, 2017. This collaboration confirms our long-term vision to contribute to the growth of local markets through enhancing transparency, offering quality content, helping companies operate efficiently, and providing professionals with the intelligence to make informed business decisions across the continent.”

    “Globally and across African markets, we have seen a huge increase in electronification, a proliferation of market data, and a significant move towards managed services and cloud. With over 150 years of innovating in Africa, Thomson Reuters is constantly adapting and adding value to clients in a changing financial market,” Shah concluded.

  • E-dividend’ll curb unclaimed dividend, says NSE

    The Nigerian Stock Exchange (NSE) has underscored the importance of registration for the electronic dividend payment (e-dividend) system as a key measure to address the recurring issue of unclaimed dividend.

    The NSE recently organised an investor clinic to educate capital market stakeholders on the role of dematerialisation, direct cash settlement and e-dividend in the development of the capital market. It was targeted at sensitising the investing public and brokerage community of contemporary initiatives in the market.

    NSE’s Market Operations and Technology Executive Director, Mr. Ade Bajomo, said the e-dividend would not only reduce the perennial issue of unclaimed dividend growth but ensure that investors derive the full benefits of their investments by having their dividends paid directly into their bank accounts as soon as these are disbursed by issuers, regardless of whether these are savings or current accounts.

    He noted that the NSE Investor Clinic brings to the fore the importance of dematerialisation in ensuring improved market velocity and integrity as well as the role of direct cash settlement in enhancing investor confidence by ensuring that proceeds from the sale of securities are remitted directly into investors’ accounts.

    “At the Nigerian Stock Exchange, we are committed to improving overall financial literacy and inclusion in the country, and ensuring we implement efficient processes that provide investors easy and intuitive access to grow their wealth. This commitment is expressed in the various initiatives undertaken by the Exchange,” Bajomo said.

    According to him, last year alone, the NSE executed more than 200 free-capacity building workshops, aimed at enhancing investor understanding of the workings of the capital market.

    He pointed out that the multiplier effects of these workshops are phenomenal as more than 25,000 participating investors have been equipped to make better investment decisions.

    It will be recalled that the Exchange on June 1 launched X-Academy, its financial literacy and inclusion platform designed to provide education services to individual, corporate and government institutions who want to gain a better understanding of the various aspects of the capital markets and also improve overall corporate governance within their respective institutions.

    X-Academy offers a wide range of courses geared towards bridging the knowledge gap of investors and issuers about products and services of the capital market. It is also a platform to enhance financial literacy and inclusion and build on our track record of pushing the boundaries of financial education in Nigeria across all segments of investors.

  • NSE lifts trading suspension on Guinea Insurance

    The Nigerian Stock Exchange (NSE) has lifted the suspension it placed on Guinea Insurance Plc after the insurance company submitted its long-awaited audited report for last year.

    With the lifting, which took effect from Monday, investors can now trade on the shares and move the share price of the insurance.

    Guinea Insurance was one of the 17 companies suspended for non-submission of their accounts as required by the rules at the Exchange.

    NSE post-listing rules require quoted companies to submit their audited earnings reports, not later than 90 calendar days, or three months, after the expiration of the period. They also require quoted companies to submit interim report not later than 30 calendar days after the end of the relevant 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.  Not less than 83 per cent of quoted companies including Guinea Insurance use the 12-month Gregorian calendar year as their business year.

    The audited report and accounts for the year ended December 31, 2016 however raised concerns about the going concern status of Guinea Insurance.

    Ernst & Young, the global audit firm, drew attention to the fact that Guinea Insurance’s shareholders fund of N2.9 billion is less than the minimum regulatory capital requirement.

    “These conditions indicate the existence of an uncertainty on the company’s ability to continue as a going concern,” Ernst & Young, the external auditors to Guinea Insurance, stated.

    The board of Guinea Insurance, however, stated that it has approved a new capital raising of N1 billion, which net proceeds will be used to address the shortfall noted by the audit.

    Key extracts of the audited report and accounts of Guinea Insurance for the year ended December 31, 2016 showed that the company has slumped below its nominal value with net asset per share of 46 kobo in 2016 as against 47 kobo in 2015. Total assets dropped from N4.12 billion in 2015 to N3.98 billion in 2016. Shareholders’ funds also slipped from N2.900 billion to N2.897 billion. Gross premium income declined from N1.01 billion in 2015 to N913.37 million in 2016. However, pre-tax profit jumped from N46.91 million to N138.21 million. With taxes also jumping from N54.13 million in 2015 to N136.9 million in 2916, net profit stood at N2.52 million in 2016, still a better performance than net loss of N7.23 million recorded in 2015.

  • NSE market moves 373.49m shares worth N5.77bn

    A total of 373.49 million shares valued at N5.77 billion were traded in 4,193 deals on the Nigerian Stock Exchange (NSE) on Tuesday.

    These were against the 114.77 million shares worth N2.17 billion traded in 3,232 deals on Monday.

    The News Agency of Nigeria (NAN) reports that market capitalisation depreciated by N92 billion or 0.75 per cent to close at N12.200 trillion from N12.292 trillion recorded on Tuesday.

    The All-Share Index, which opened at 35,664.94 lost 267.42 basis points to close at 35,397.52.

    Nestle led the losers’ chart with a loss of N59.8 to close at N1150.2 per share.

    Nigerian Breweries followed, depreciating by N4.45 to close at N180.05, while Lafarge Wapco dropped N2.01 to close at N50.99 per share.

    FlourMill dipped by N1.45 to close at N27.55, while Dangote Cement depreciated by N1 to close at N209 per share.

    Conversely, Seplat topped the gainers’ table with N22.89 to close at N480.79 per share.

    It was trailed by Okomu Oil, which gained N2.99 to close at N62.89 per share.

    International Breweries gained N2.43 to close at N38, while Unilever appreciated by N2 to close at N42 and Stanbic IBTC rose by N1.95 to close at N41.2 per share.

    Diamond Bank was the toast of investors, trading 130.73 million shares worth N150.59 million.

    GTbank came second, trading 50.15 million shares worth N1.89 billion, while Zenith Bank sold 39.30 million shares valued at N900.70 million.

    FBNH traded 23.03 million shares worth N132.82 million, while Mayer sold 15.00 million valued at N10.5 million.

  • Operators revive rebranding initiative

    Operators revive rebranding initiative

    •Plans to boost stocks at NSE

    Operators in insurance industry are reviving the publicity project aimed at rebranding the industry and educating the public on the need and benefit of insurance, for Vice Chairman Sub Committee Publicity of the Insurers Committee, who is also the Managing Director Zenith Insurance Company Limited, Ebelechukwu Nwachukwu, has said.

    She made this known while briefing journalists on the 8th Insurers Committee held at NEM Headquarters in Lagos.

    She said the project, which was introduced in 2016, will now kick off in the first quarter of 2018.

    She stated that the committee is working to get insurance brokers, agents and loss adjusters on board, stressing that since they are all parts of the industry, they would all pull efforts together to ensure the project succeeds.

    She noted that the publicity project would be carried out together among all operators, adding that no section will be allowed to do its own publicity differently, adding that from the platform of NIA, they will engage ILAN, NCRIB and agents and they will have a common plan, since it affects all operators.

    She said: “The committee is going to the platform of Nigeria Insurers Association( NIA) to agree on how the industry will raise and pay the bills to get started. The campaign, most definitely will kick off in first quarter of 2018 and they will begin to run the first set of campaign about the industry.

    “We will measure the impact of their campaign on the public on a regular basis and by the third quarter 2018, we will decide the activities for 2019. Definitely we will be back on the table with clear execution plan. We believe is best to start in January which is a fresh year but we will finish all the arrangements, get the money together and agree the platforms to use for the advertisements and publicity programmes before January 2018.”

    Speaking further on plans to improve the price of stocks of companies in the capital market, Group Managing Director Cornerstone Insurance Plc, Ganiyu Musa, said that the industry will leverage on the Nigerian Stock Exchange (NSE) to appreciate the price of shares listed  on the Exchange.

    He said that the industry would be tapping from the opportunities in the facts behind the figure and introduction of insurance analyst into the operations of the industry.

    He said  that since information drives the market share, there would be continuos interaction and engagement between insurance operators and the NSE to help appreciate  the prices of insurance stocks listed on the exchange.