The Nation Newspaper

Tag: NSE

  • NSE market capitalisation improves by N37bn

    NSE market capitalisation improves by N37bn

    Trading activities on the Nigerian Stock Exchange (NSE) on Friday maintained an upward movement with the market capitalisation increasing further by N37 billion.

    The News Agency of Nigeria (NAN) reports that the market capitalisation, which opened at N8.584 trillion, improved by N37 billion or 0.43 per cent to close at N8.621 trillion.

    Similarly, the All-Share Index rose by 105.33 points or 0.42 per cent to close at 25,062.41 compared with 24,957.08 on Thursday.

    Nigerian Breweries recorded the highest price gain to lead the gainers’ table, gaining N5.51 to close at N115.89 per share.

    PZ came second with N1.01 to close at N21.36 and Presco gained 75k to close at N35.76 per share.

    Cadbury garnered 73k to close at N15.50, while Zenith Bank appreciated by 42k to close at N12.70 per share.

    On the other hand, Forte Oil, for the third consecutive day, topped the losers’ chart, losing N11.28 to close at N214.35 per share.

    Nestle followed with a loss of N4.74 to close at N615.26 and Lafarge Wapco dipped N2.34 to close at N67.99 per share.

    Premier Paints lost 54k to close at N10.39, while UACN dropped 17k to close at N18.03 per share.

    NAN also reports that in spite of the growth posted by market indices, the volume of shares traded closed lower with 229.11 million shares valued at N1.50 billion exchanged in 3,493 deals.

    This was in contrast with a total of 338.34 million shares worth N1.99 billion transacted in 3,428 deals on Thursday.

    UBA was investors delight, accounting for 31.55 million shares valued at N107.28 million.

    Transcorp trailed with a turnover of 29.10 million shares worth N28.91 million, while Zenith Bank accounted for 26.50 million shares valued at N333.59 million.

    Further analysis showed that investors staked N19.95 million on 25.05 million shares of Wema Bank and FBN Holdings sold 20.02 million shares worth N73.05 million.

     

  • FCMB backs NSE’s Corporate Challenge

    FCMB backs NSE’s Corporate Challenge

    First City Monument Bank (FCMB), for the third time in a row, is throwing its weight behind this year’s edition of the Nigerian Stock Exchange’s (NSE) Corporate Challenge. The exercise would help the parties raise funds, which would be donated towards providing mobile cancer screening centers in the country.

    The event, which holds in Lagos on May 14, is driven by the lender’s desire to checkmate cancer, which has seemingly brought humanity to its knees, especially in Nigeria. The event kicks-off at 7am and  will have participants take-off from the Muri Okunola Park in Victoria Island, Lagos, passing through Ozumba Mbadiwe Road to Akin Adesola Street, to  end the race at the same take-off point.

    With theme: “Erase Cancer”, the event is a call to action for Nigerians, especially corporate bodies, including over 100 listed companies and broker dealer firms in the NSE whose representatives and staff are expected to participate in the five kilometer walk, jog and run competition to stand against this menace.

    This initiative aligns with various aspects of FCMB’s corporate social responsibility and its strong belief in the Sustainable Development Goal, which focuses on health for all.

    FCMB’s Group Head, Corporate Affairs, Diran Olojo said it is the lender’s concern for cancer patients and their painful experiences that drives FCMB’s support for this laudable project.

    “This is more apt when one remembers that cancer accounts for 13 per cent of all deaths registered globally. And in Nigeria, about 10,000 cancer related deaths are recorded annually while 250,000 new cases are recorded yearly. This is quite painful to imagine,” he said.

    “FCMB as a socially responsible and conscious corporate body, is keenly interested in this fight. We want Nigerians to know that most types of cancer including breast, cervical, oral and colorectal cancer can be cured if detected early. It is also important to know that our diet and lifestyle play a crucial role in reducing the scourge of cancer. One must maintain a healthy lifestyle and go through regular medical check-ups,”he said.

    The NSE Corporate Challenge has been designed exclusively for companies listed on the NSE and capital market participants to promote teamwork and a healthy community. The event provides opportunity for positive competition among corporate teams, as well as a chance to network within the business community.

  • NSE expels stockbrokers over fraudulent shares’ sale

    NSE expels stockbrokers over fraudulent shares’ sale

    The Council of the Nigerian Stock Exchange (NSE) has booted out at least three stockbrokers in the latest crackdown on fraudulent sale of clients’ shares, The Nation has learnt.

    The Disciplinary Committee of the NSE, the arm of the council of the Exchange that oversees ethics and compliance, investigated and indicted the three stockbrokers for shares fraud, otherwise known as unauthorised sale of shares.

    The three stockbrokers, who were members and authorised dealers on the Exchange, were stripped of their registration and authority to trade on the NSE for the infraction.

    The expelled stockbrokers included Mr Ayokunle Oyedeji, Mr Abioye Eluwole and Mr Gregory Otsu.

    “Dealing members are strongly advised not to engage in any activity with the above listed individuals,” the indictment sheet stated.

    With the expulsion, the indicted stockbrokers will also not be able to work in any stockbroking and investment firms in Nigeria, according to rule six, subsection 12 of the NSE Rules.

    Under the rule known as “Specific Actions Requiring Prior Consent of The Exchange”, a dealing member shall not be allowed to employ some categories of persons without the prior written consent of the Exchange.

    These included directors, authorised clerks or other officials, the Chief Executive Officer, Chief Finance Officer, Chief Compliance Officer and Chief Risk Officer, who have been indicted by the NSE or Securities and Exchange Commission (SEC).

    Others included any person who was an officer or employee of a dealing member expelled from the Exchange, any person expelled, as an authorised clerk or its equivalent, from any other exchange, any person refused admission as a member of the Chartered Institute of Stockbrokers, or any person expelled from its membership, any person expelled as a member of any professional association, or institute and any person who is insolvent or has been convicted of theft, fraud, forgery, or any other crime involving dishonesty.

    As financial pressure mounts on stockbrokers and stockbroking firms due to the prolonged downtrend at the stock market, authorities at the Nigerian stock market have stepped up concerted efforts to checkmate unauthorised sales of clients’ shares.

    The Nation had reported exclusively that the Economic and Financial Crimes Commission (EFCC) was investigating 10 stockbroking firms and 12 individual stockbrokers and officials as part of a large-scale crackdown on shares fraud that had seen 31 stockbroking firms and several stockbrokers internally investigated and sanctioned by the NSE in recent years.

    Two reports on shares fraud had indicated that the NSE invited the EFCC to further investigate and prosecute 12 stockbroking firms and 21 stockbrokers and officials, who were primarily indicted by the internal investigations of criminal financial fraud.

    The EFCC has already concluded investigations and charged two stockbroking firms and nine persons to court while the anti-fraud agency was investigating 10 stockbroking firms and 12 persons connected with the firms or individually cited for shares fraud.

    In resolution of one of the cases, a Lagos State High Court recently sentenced a stockbroker and former managing director of First Alstate Securities Limited, Mr Tajudeen Folaji to seven years imprisonment 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 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.

     

  • NSE may sanction 35 companies for delayed results

    NSE may sanction 35 companies for delayed results

    The Nigerian Stock Exchange (NSE) may sanction 35 companies for failing to meet the deadline for the submission of their audited reports and accounts for the immediate past business year.

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

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

    While the Exchange had in many instances granted general extension to the earnings deadline, it has maintained silence on any general extension, six working days after the deadline. A source said the Exchange would not grant a general extension noting that the previous extensions were due to special circumstances such as the transition to the International Financial Reporting Standards (IFRS) and the general elections.

    The Nation’s investigation at the weekend indicated that at least 35 companies may be sanctioned by the Exchange. The NSE usually applies both the “naming and shaming” and monetary sanctions on earnings defaulters.

    A report at the weekend indicated that the Exchange has so far this year imposed sanctions totaling N31.6 million on three companies. The companies included Great Nigeria Insurance, N11.3 million; DN Tyre & Rubber, N7.5 million and Daar Communications, which was slammed with N12.8 million.

    The NSE had imposed 50 monetary sanctions on some 30 quoted companies in 2015 over their failure to meet the extended deadline for the submission of their audited reports and accounts for their business year. The fines ranged from N100, 000 to N6 million.

    A report by The Nation on sanctions and fines for similar defaults in 2013 showed that the Exchange slammed about N105.9 million on 48 companies that delayed their results. The fines ranged from N200, 000  to N6.8 million. The NSE slammed N60.2 million as fines on 34 companies for failure to meet deadlines for 2011 audited reports. With a range of N3.8 million and N100, 000, the average fine for the year was N1.77 million.

    While compliance within deadline is generally regarded as a measure of good corporate governance, NSE tags and applies fines on companies that fail to meet earnings reports’ deadline.

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

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

     

     

  • Nigerian, London Stock Exchanges explore dual listing opportunities

    The Nigerian Stock Exchange (NSE) and London Stock Exchange Group (LSEG) are exploring joint opportunities to accelerate dual listing by companies on both exchanges. Top executives of both the NSE and LSE and other capital market stakeholders are scheduled to discuss ways of enhancing cross-border listing in Lagos next week.

    The latest conference with the  theme: Leveraging cross-border capital markets for sustainable growth, is in furtherance to the agreement signed in November 2014 between the NSE and LSEG to strengthen cooperation and jointly promote mutual development between the two exchanges. The first conference was held in June 2015 in London.

    Chief Executive Officer, Nigerian Stock Exchange (NSE), Mr. Oscar Onyema said the plans to get local and international companies to list both on the NSE and LSEG is part of the strategy for providing companies financing options that enables them to achieve an optimal capital structure that suits their strategic and organisational needs, while also enabling investors to access deep pools of liquidity to satisfy their corporate strategies.

    “The Exchange is committed to growing the capital market and believes that its development is fundamental to the sustainable growth of the Nigerian economy. Financial markets today have to be global in nature, as the demand for- and supply of- capital has no boundaries,” Onyema said.

    Chief Executive Officer, London Stock Exchange Group (LSEG), Xavier Rolet said the partnership between the exchanges is a reflection of the global investment community’s strong desire to be a part of the Nigerian story.

    “As the world’s most international exchange, LSEG looks forward to working with the NSE to showcase the rapid developments taking place in Nigeria’s capital markets and the Nigerian economy as a whole,” Rolet stated.

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

    Companies in last-minute rush to meet earnings’ deadline

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

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

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

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

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

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

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

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

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

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

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

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

  • NSE begins clampdown on illegal shares sale

    NSE begins clampdown on illegal shares sale

    The Nigerian Stock Exchange (NSE) has begun the implementation of newly amended rules aimed at tightening the noose on unauthorised sale and transfer of shares by unscrupulous stockbroking firms and traders.

    Last week, the Exchange  started the implementation of a detailed and tougher rule on fraudulent sale of shares. The rule had been approved by the Securities and Exchange Commission (SEC) but the NSE delayed the implementation.

    Under the amended rules, the Exchange could withdraw the dealing licence of any erring stockbroking firm and trader as well as impose fines not less than N1 million on any offender.

    A source at the weekend said the implementation of the new rule was part of efforts by the Exchange to reinforce its market-protection mechanism and ensure that operating rules are effective to serve as deterrents to market abuse.

    According to the rule, no dealing member shall sell or transfer any securities without the authorisation of the owner.

    “A dealing member that has sold or transferred any securities without the authorisation of the owner shall not be permitted to keep any benefits accruing from such transaction, including but not limited to bonuses, rights, commissions, cash dividends, capital appreciation, and any profit accruing therefrom whatsoever,” the rule stated.

    Any dealing member that sells or transfers securities without the authorisation of the owner shall be required to buy back the securities along with any accrued benefits within 14 business days.

    Besides, where the unauthorised sale transaction is worth N5 million and below in value, the erring stockbroking firm will be liable to pay a fine of N1 million or three times the value of the sale or transfer, whichever is higher, and N5,000 for every day from the day on which the dealing member is required to buy back the securities by the Exchange until the day the dealing member completes buying back the shares for the owner.

    Where the illegal sale transaction is higher than N5 million in value or the dealing member has engaged in such unauthorised sale, or transfer of securities on a previous occasion, it shall have its dealing license withdrawn by the council of the Exchange and shall in addition be liable to pay a fine of N5 million or three times the value of the sale or transfer, whichever is higher and N5,000 for every day from the day of the sanction until the day the dealing member completes buying back the shares for the owner.

     

  • Nigeria records 21.6% foreign portfolio deficit amidst forex strain

    Nigeria records 21.6% foreign portfolio deficit amidst forex strain

    Foreign portfolio investments (FPI) in Nigeria have continued to dwindle as latest investment report indicates that Nigeria recorded about 21.6 per cent foreign portfolio investment deficit in January 2016.

    FPI report for January 2016 released yesterday by the Nigerian Stock Exchange (NSE) showed a deficit of 21.56 per cent between foreign inflow and outflow in January 2016, sustaining the same trend that had marked the 2015 business year.

    Besides, the quantum of foreign investors’ transactions slowed down alongside a marked slowdown in the overall activities at the Nigerian equities market.

    The FPI report showed that foreign inflow stood at N17.01 billion as against outflow of N26.36 billion, representing a deficit of N9.35 billion or 21.56 per cent during the period. Total foreign transactions thus stood at N43.37 billion. With the foreign sales on the high, foreign investors still accounted for the larger share of 51.57 per cent of transactions at the Nigerian stock market during the period.

    Nigerian investors accounted for N40.73 billion or 48.43 per cent of the total turnover of N84.10 billion recorded during the period.

    “Monthly foreign outflows outpaced inflows which was consistent with the same period in 2015,” the report stated. In December 2015, foreign inflow was N17.04 billion against outflow of N34.31 billion, representing a deficit of N17.27 billion.

    In the comparable period of January 2015, foreign investors appeared less edgy and there were more appetite for Nigerian equities, although the tinge of deficit was also evident then. Foreign inflow was N48.03 billion in January 2015 as against outflow of N51.08 billion. Total foreign transactions thus stood then at N99.11 billion or 52.24 per cent of total turnover of N189.72 billion during the period. Domestic investors had accounted for N90.61 billion or 47.76 per cent of total transactions.

    The FPI report, coordinated by the Nigerian Stock Exchange (NSE), uses two key indicators-inflows and outflow, to gauge foreign investors’ mood and participation in the stock market as a barometer for the economy.

    The NSE report is generally regarded as a credible gauge of foreign portfolio investments in Nigeria as it coordinates data from nearly all active and major investment bankers, stockbrokers, custodians and other capital market operators.

    Foreign portfolio investment outflow includes sales transactions or liquidation of equity portfolio investments through the stock market while inflow includes purchase transactions on the NSE.

    The 12-month foreign portfolio investment report for 2014 had shown that foreign portfolio outflow was N846.53 billion as against inflow of N692.39 billion in 2014, representing a net deficit of N154.14 billion. In 2013, total foreign inflow stood at N531.26 trillion compared with outflow of N510.78 trillion, leaving a positive balance of N20.48 billion.