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Tag: NSE

  • NSE’s index hits 36,000 points

    NSE’s index hits 36,000 points

    index at the Nigerian Stock Exchange (NSE) appreciated by 0.64 per cent to reach a new high of 36,000 points.

    The All Share Index (ASI), which tracks prices of all quoted equities, appreciated by 228.19 points to close at 36,010.28 points while the market capitalisation grew by N73 billion to close at N11.513 trillion.

    Investors yesterday staked N4.593 billion on 315.725 million shares in 5,880 deals. This was as a result of the good performances of some highly capitalised stocks and good corporate actions of some companies that recently released their results.

    The financial service sector remained the toast of investors with 240.538 million shares worth N2.267 billion across 3,189 deals. Ninety per cent of the top 10 most traded stocks were in the financial services sector. Seventy per cent of it was in the core banking sector while mortgage carriers, brokers and services sector and other financial institutions shared 20 per cent. The remaining ten per cent of the most traded stock was in the services sector.

    UBA emerged the most traded equity with 48.774 million shares valued at N380.198 million. It was followed by FBN Holdings, which accounted for 30.303 million shares worth N608.251 million, while Unity Bank sold a total of 22.915 million shares.

    Others on the list were ETI, Skye Bank, Guaranty Trust Bank, Resort Savings & Loans, Diamond Bank, Access Bank and C & I Leasing with 20.658 million shares, 20.367 million shares, 16.962 million shares, 15.185 million shares, 14.077 million shares, 9.882 million shares and 9.843 million shares respectively.

    In all, 118 stocks recorded price change with 35 appreciating, 25 reducing in value and the remaining 58 closing flat.

    Berger paints led the gainers’ chart, adding N0.75 to close at N8.25. It was followed by Cutix with a price increase of N0.19 to close at N2.11. Others were Cadbury Nigeria, Total Nigeria, Courtville, UBA, RT Briscoe, UAC-Property, Flour Mills of Nigeria and Presco.

    On the losers, table, Paints Manufacturing Company led with a drop of N0.16 to close at N1.46. It was followed by Academy Press with a price drop of N0.18 to close at N1.67. Also on the table were May & Baker, Costain, Ikeja Hotel, Wema Bank, UTC, Japauloil, ABC Transport and Prestige among.

  • NSE acquires equity stakes in OTC platforms

    •N623b gained in 4 days

    THE Nigerian Stock Exchange (NSE) has acquired substantial equity stakes in the two over-the-counter (OTC) platforms, which will give the Exchange access and control on the platforms that will trade unlisted securities.

    Its President, Alhaji Aliko Dangote, at the Annual General Meeting (AGM)) of the Exchange at the weekend, said the NSE acquired 6.86 per cent equity stake in the Nigerian Association of Securities Dealers (NASD) Limited and 7.79 per cent equity stake of FMDQ Plc.

    According to him, NSE invested N40 million in the NASD and N50 million in FMDQ as part of efforts to boost the securities market and diversify the income stream of the Exchange.

    NASD and FMDQ are formal OTC platforms for the trading in unlisted equities, bonds and money market instruments. Securities and Exchange Commission (SEC) had in December 2012 approved the NASD application to establish the OTC platform.

    “We made a strategic decision to invest in FMDQ to broaden our market reach, diversify revenue stream and to remain at the forefront of an evolving globally competitive financial market,” Dangote said.

    He reiterated the commitment of the Exchange to achieving $1 trillion market capitalisation by 2016 while introducing five products.

    He said NSE will achieve the trillion-dollar target by continuous alignment of the NSE objectives and facilitating the development of the economy through driving capital market formation.

    He outlined the growth objectives to include continuous progression of the transformation agenda, with emphasis on new quality listings, product development and penetration and a transparent market structure.

    Meanwhile, the stock market was extremely bullish last week as investors responded positively to earnings reports by several highly capitalised stocks. With three-day consecutive rally, aggregate market value of all equities increased by N623 billion, underlining 5.88 per cent increase in average return at the stock market.

    Average year-to-date return opened today at 25.04 per cent, signposting equities as the best-return instrument among other securities.

    The All Share Index (ASI), the main index at the NSE, rallied 5.88 per cent to close the week at 35,109.33 points as against its week’s opening index of 33,159.08 points. Total market capitalisation of all quoted equities similarly rose from N10.602 trillion to close at N11.225 trillion.

    Total turnover during the four-day trading week stood at 1.511 billion shares worth of N15.867 billion in 20,965 deals. Financial services sector accounted for 1.261 billion shares valued at N10.855 billion in 12,786 deals.

     

  • NSE’s new trading platform to start by Q3

    The Nigerian Stock Exchange’s (NGSEINDX’s) Nasdaq OMX Group Incorporated (NDAQ) trading platform will be operational by the third quarter of this year, the Chief Executive Officer, Oscar Onyema, has said.

    The system is being tested, the CEO said last week in an interview in Lagos.

    The Director-General, Securities and Exchange Commission (SEC), Arunma Oteh, said last December that it would probably take all of 2013 to make the system functional.

    The platform will allow the bourse to trade options in 2014 and futures in 2015 to help deepen the market, Oteh said last year. Nigeria is targeting a $1 trillion market value for the exchange by 2016 from the $67 billion estimated by Bloomberg.

    The Nigerian All-Share Index has advanced 23 per cent this year, the best performance in Africa, after Ghana and Kenya.

    “We’ve seen a vote of confidence from foreign and local investors with regards to reforms that have taken place,” Onyema said. “The locals tend to be more momentum traders and so I believe they’re coming back in a faster pace than the foreigners who were the thrust to actually start to get the market going.”

    Domestic investors, who accounted for as little as 33 per cent of trading in 2011 after a market crash in 2008, have now flocked back to the exchange, overtaking foreign buyers with 58 per cent of volumes last year, said Onyema.

    The bourse saw N14 million ($88,523) of bonds traded on its retail investor platform last month, the highest amount since its February start, the CEO said. Trading was previously restricted to institutional investors through the over-the- counter market, where banks and brokers set prices with typical minimum trades of 100 million naira.

    “We’re not where we’d like to be,” Onyema said. “If you think there are five million investors in the market place and if each one was to have balanced portfolios we should be seeing significantly higher numbers.”

    New trading floor licenses aren’t being considered after media reports that the exchange is considering the applications from some global investment banks, Onyema said.

    “We’ve seen a lot of interest from foreign broker dealers that want to access the market directly and we are engaging them and talking to them, and trying to find a way to get them to participate in the market,” he said. “It doesn’t mean they cannot buy other licences.”

    The bourse is waiting on guidelines to be approved by the SEC before it begins the process of demutualisation and selling its shares, Onyema said. The exchange ‘engaged’ the regulator on the issue last month and has asked them to make it a priority he said.

    “There has been a lot of work done, there was an industry technical committee that put together proposed guidelines,” he said. “We’re waiting for the securities and exchange commission to act on that and give us guidelines so we can go out.”

    There is concern that the fall in global oil prices could sour investor sentiment, said Onyema. Bonny Light crude, one of the main export grades of Africa’s biggest oil producer, fell 7.1 per cent last month, it’s worst performance since May last year.

    “The economy is highly correlated with oil prices and the stock market is quite reflective of the economy so yes we’re worried,” said Onyema.

    “We’re looking at it and we believe that one of the things we’re trying to do this year is to make sure the market is diversified enough” to withstand a drop in prices, he added.

     

  • Nse Ikpe- Etim, Bimbo Akintola, Kalu Ikeagwu for ‘Heaven’s Hell’

    Nse Ikpe- Etim, Bimbo Akintola, Kalu Ikeagwu for ‘Heaven’s Hell’

    MONTHS after announcing plans to shoot a cross-border flick titled Heaven’s Hell, One-O-Eight Media recently unveiled the cast for the movie. Shot in Lagos and Wales, and based on actual events, CEO of the outfit, Katung Aduwak (Big Brother Nigeria winner), says that Heaven’s Hell is about two housewives and best friends whose lives are held together by rock-solid friendship and unwavering love, yet laced by betrayal and a lurking darkness.

    Artiste starring in the movie, he says, include Fabian Olojede of Mnet’s Jacob’s cross fame, Nse Ikpe-Etim, Bimbo Akintola, Chet Anekwe, Damilola Adegbite, Kalu Ikeagwu, OC Ukeje, Gideon Okeke, Linda Ejiofor and Waje.

    Concerned with more than just entertainment, Katung says, the flick sheds light on the social issues around us, things we come in contact with every day while asking the fundamental questions that plague us.

    “From the intense storyline and script, to the best cast, crew and equipment, the Heaven’s Hell movie project is an international co-production mission with a message to fight violence against women and children. Heaven’s Hell is staged to bring about real change in the African movie industry and will hit global cinemas soon. The movie will be premiered in Lagos, Port-Harcourt, Abuja, London and New York, South Africa,” says Katung.

    Powered by One-O-Eight Media, the film was shot in partnership with BGL Asset Management Limited, Hashtag Media House, Del-York International and Aberystwyth University.

  • All-Share Index crosses 35,000 mark since 2008 – NSE

    All-Share Index crosses 35,000 mark since 2008 – NSE

    The Nigerian Stock Exchange (NSE) reported on Friday that its All-Share Index crossed to 35,000 mark for the first time after the capital market crashed in 2008.

    The News Agency of Nigeria (NSE) reports that the index appreciated by 606.95 points or 1.76 per cent to close at 35,109.33 on Friday from the 34,502.38 posted on Thursday.

    Similarly, the market capitalisation, which opened at N11.03 trillion, grew by N194 billion to close at N11.23 trillion as a result of price appreciation.

    Guinness led the gainers’ table by N7.87 to close at N274.02 per share.

    Dangote Cement appreciated by N6.80 to close at N185, while UACN inched by N5.88 to close at N64.68 per share.

    Total gained N5 to close at N143, while Nigerian Breweries rose by N1.49 to close at N161.50 per share.

    Analysts attributed the renewed interest in the equities to improved first quarter results released by some companies this week

    They also attributed the new interest to the dividend of N1.50 and bonus of one for five shares proposed by UACN in the 2012 financial year.

    Conversely, Beta Glass topped the losers’ chart by 67k to close at N10 per share.

    Ashaka Cement dipped by 45k to close at N23.30, while ETI lost 24k to close at N15.21 per share.

    RT Briscoe dropped 18k to close at N1.62, while UBA Capital lost 12k to close at N1.08 per share.

    NAN reports that the volume of shares traded appreciated by 89.10 per cent due to the exchange of 573.47 million shares worth N5.41 billion in 4,958 deals.

    This was against the 303.26 million shares valued at N3.75 billion traded in 5,756 deals on Thursday.

    UBA was the toast of investors, accounting for 362.55 million shares worth N2.54 billion.

    Skye Bank sold 33.01 million shares valued at N190.59 million, while FBN Holdings recorded a turnover of 22.20 million shares worth N434.12 million.

  • LCCI, NSE meet today

    The Financial Services Group of the Lagos Chamber of Commerce and Industry, LCCI and stakeholders in the Nigerian Stock Exchange (NSE) will today deliberate on how to ensure growth in the capital market.

    Chairperson of the Financial Services Group and Managing Director of Resort Development Limited, (a subsidiary of Resort Savings and Loans), Mrs. Olajumoke Fashanu said the time had come for Nigerians to be made fully aware of the state of recovery of the capital market.

    “Investors and other players in our capital market need to have their confidence restored in its profitability, with proof of the market’s excellent performance in recent times,” she stated.

    According to Mrs. Fashanu, stakeholders expected at the event include capital market operators, investors and other experts in the financial sector.

    The theme of the confab is ”The Nigerian Capital Market: The Outlook”.

    The Director-General, Nigerian Stock Exchange, Mr. Oscar Onyema, is the guest speaker .

    The exchange was affected some years back by the global financial crisis which made foreign investors to divest from the market, thereby leading to crash in prices and subsequent turmoil in the sector.

  • NSE to divest from quoted shareholdings

    NSE to divest from quoted shareholdings

    The Nigerian Stock Exchange (NSE) plans to sell all its investments in quoted shares as part of the group strategy to minimise exposure to fluctuating share prices.

    A preview of the Exchange’s risk management strategy obtained by The Nation indicated that the NSE Group would divest from all its quoted investments as part of strategy to minimise its equity-related market risks.

    The NSE Group consists of the NSE and three other subsidiaries-NSE Consult Limited, Coral Properties Plc and Naira Properties Limited. The Central Securities Clearing System (CSCS), where NSE has some 27 per cent equity stake, is not regarded as a subsidiary but rather as an associate company.

    According to the report, the NSE Group was exposed to equity investment risk as a result of its exposures which stood at ¦ 253.041 million as at December 31, 2012 as against ¦ 217.65 million recorded as at December 31, 2011.

    NSE Group’s quoted equity investments are categorized under as trading financial assets. Trading financial assets are those assets that the Group acquires principally for the purpose of selling in the near term, or holds as part of a portfolio that is managed together for short-term profit or position taking.

    The risk management report, which is part of a comprehensive annual report to be presented to members of the Exchange later this week, seeks to reduce exposure to equity risks and at the same time make the NSE’s financial management more independent of the stock market.

    However, NSE’s equity portfolios appeared to have benefitted from the substantial recovery at the stock market as there were no provisions for diminution in market value of quoted equities in 2012 as against provisions of N71.92 million in 2011.

    NSE Group’s risk management policies, according to the report, are established to identify and analyze the risks faced by the group, set appropriate limits and controls as well as to monitor risks and adherence to limits.

    In what probably underlined the reason for the divestment, the report indicated that NSE’s risk management policies and systems are usually reviewed to reflect the changes in market conditions and the group’s activities.

    According to the report, a strong risk management practice is a core part of the NSE’s transformation agenda and it is fundamental to the business activities and growth of the Exchange.

    Meanwhile, key extracts of the audited financial statements of the NSE and its subsidiaries showed that the group recorded net surplus of N1.15 billion in 2012 as against N258.3 million in 2011. Surplus before tax had stood at N1.18 billion in 2012 compared with N262.80 million in 2011.

    The significant increase in net surplus boosted the balance sheet position of the Exchange, with total equity funds rising from N9.37 billion to N10.53 billion. Total assets also increased from N12.36 billion to N13.11 billion. Gross earnings however recorded marginal increase at N3.94 billion in 2012 as against N3.55 billion in 2011.

     

  • SMEs can now list on Nigerian Stock Exchange

    SMALL businesses now have every course to smile with the approval by the Nigerian Stock Exchange (NSE) to trade on the floor of the Exchange.

    With the inauguration of the Alternative Securities Market (ASEM) a trading platform for small businesses, promoters of SMEs can now trade their equities on the floor of the stock exchange.

    To stakeholders, this is definitely a game changer, as the Small Businesses and Mid-Cap’s will be listed on the trading board of the NSE will give them an opportunity to access the capital market for equity funding.

    An upbeat Mr. Oscar Onyema, Chief Executive, NSE, while justifying the innovative SMEs window, stressed that: “Unlike equities on the main board of the NSE, companies who intend to list on the ASEM will not need the kind of stringent requirements that is fulfilled by the former. The NSE has in the past had the Second Tier Securities Exchange Market which has largely failed to attract investor money.”

    The companies currently listed on the ASEM include Adswitch plc, Afrik Pharmaceuticals plc, Anino International plc, Capital Oil plc, Juli plc, McNichols Consolidated plc, Rak Unity Petroleum plc, Rokana Industries plc, Smart Products Nigeria plc, Union Venture & Petroleum plc, and West Africa Aluminum Products plc.

  • Financial sector investors transact N10.502 b security

    Investors in the Financial Services Sector of the Nigerian Stock Exchange (NSE) transacted deals worth N10.502 billion to close the week Friday April 26, 2013.

    Stock Market Report from the Nigeria’s Exchange made available shows that at the close of trading activities for the week, the Financial Services sector (measured by turnover volume) came top and accounted for 1.443 billion shares valued at N10.502 billion transacted by investors in 14,600 deals.

    A review of this shows that the Banking subsector of the Financial Services sector was the most active during the week (measured by turnover volume) with 1.061 billion shares worth N8.432 billion traded in 10,546 deals.

    Volume in the Banking subsector was largely driven by activities in the shares of Unity Bank Plc, Zenith Bank Plc and Access Bank Plc. “Trading in the shares of the three banks accounted for 587.557 million shares worth N4.230 billion exchanged by investors in 3,163 deals contributing 33.43% to the total equity turnover volume recorded during the week” the NSE weekly report said.

    However, the Consumer Goods sector followed the Financial Services in the activity chart with 69.691 million shares valued at N5.130 billion traded in 4,100 deals.

    The NSE’s stock market report shows that a turnover of 1.758 billion shares worth N17.898 billion in 23,958 deals were transacted this week by investors on the floor of the Nigerian Bourse compared to a total of 2.114 billion shares valued at N26.678 billion that exchanged hands last week in 27,624 deals.

    In terms of Index movement, the NSE All-Share Index (ASI) rose by 165.11 basis points or 0.50% to close at 33,159.08, while the market capitalisation of the listed equities on the mainboard advanced by 0.52% to close at N10.602 trillion.

    Also, the NSE 30 Index appreciated by 8.72 points or 0.55% to close at 1,583.57 while NSE Banking Index inched up by 8.65 points or 2.28% to close at 388.09.

    The report affirmed that other NSE sectoral indices that depreciated during the week include; NSE Consumer Goods, NSE Insurance, NSE Oil and Gas, NSE-Lotus II and NSE Industrial Goods by 1.20%, 5.53%, 6.35%, 1.41% and 2.03% respectively. Meanwhile, the newly launched NSE-ASeM Index closed flat.

    On bond market review and outlook, 1,420 units of Federal Government of Nigeria (FGN) bonds valued at N173,253.00 were traded during the week in eight (8) deals compared to 4,140 units valued at N4.471 million transacted last week in 30 deals.

    According to Afrinvest weekly update, the FGN bond market witnessed mixed sentiments as yields swayed in both directions to close upwards at the end of the week.

    The Afrinvest weekly update further affirmed the current trend shows the participation of retail investors in the bond market remains very low.

  • NSE market indices record further depreciation

    NSE market indices record further depreciation

    Weekly transactions on the Nigerian Stock Exchange (NSE) closed on bearish note on Friday as the market indices depreciated further.

    The News Agency of Nigeria (NAN) reports that the market indices dropped by 0.34 per cent following price losses.

    The NSE All-Share Index lost 112.26 points to close at 33,159.08 against the 33,271.34 posted on Thursday.

    Also, the market capitalisation, which opened at N10.64 trillion, dropped N36 billion to close at N10.60 trillion.

    Total topped the losers’ table with N15 to close at N157 per share.

    Nestle trailed with N2.01 to close at N898, while Unilever lost N1.50 to close at N55 per share.

    Cadbury depreciated by N1.29 to close at N32.21, while Dangote Cement lost N1.15 to close at N158.85 per share.

    On the other hand, Ashaka Cement recorded the highest price gain to lead the gainers’ chart by 29k to close at N23.50 per share.

    Dangote Sugar came second on the gainers’ chart with 20k to close at N7.49, while RT Briscoe gained 18k to close at N2 per share.

    GTBank appreciated by 15k to close at N25.55, while John Holt increased by 14k to close at N1.54 per share.

    NAN reports that in all 123.54 million volume of shares valued N1.61 billion transacted in 3,876 deals.

    This is against the 634.71 million shares worth N4.24 billion exchanged by investors in 4,729 deals.

    Skye Bank emerged the most traded stock, accounting for 14.56 million shares valued N81.36 million.

    It was followed by GTBank with 10.66 million shares worth N272.19 million, whille FBN Holdings sold a total of 8.20 million shares valued at N162.24 million.