The Nation Newspaper

Tag: NSE

  • NSE strengthens management with top appointments

    The Nigerian Stock Exchange (NSE) has announced the appointment of Mr. Jude Chiemeka and Mr. Olumide Bolumole to its executive management team. Bolumole joins NSE as Divisional Head, Listing Business while Chiemeka joins as Divisional Head, Trading Business.

    Chief Executive Officer, Nigerian Stock Exchange (NSE), Mr. Oscar Onyema, said the Exchange was excited to have attracted such outstanding young business leaders to its management team at a time it is executing organisational growth and market wide initiatives.

    “I look forward to working with Jude and Olumide to continue executing our strategy of becoming the preferred African Exchange hub. Also, I will like to express my deep gratitude to Tony Ibeziako, Head, Primary Markets and Olufemi Onifade, Head, Secondary Markets, for leading the teams during the transition period,” Onyema said.

    Chiemeka expressed his pleasure to join the Exchange during this important stage when the NSE is evolving into a demutualised Exchange.

    “The Exchange has undergone a lot of transformation and I look forward to working alongside the great teams at the Exchange to accelerate the execution of the company’s strategy and drive greater value for our investors,” Chiemeka said.

    Bolumole expressed readiness to work with other talented employees and seasoned leadership team at the NSE to create an even stronger globally competitive market that is the preferred choice of discerning issuers across continents.

    Chiemeka comes with over 24 years’ experience in securities trading and asset management across markets in Africa. He joined NSE from United Capital Securities Limited a subsidiary of United Capital Plc, where he was the managing director. He had previously led other leading investment banking firms in Nigeria including Chapel Hill Denham Securities and Rencap Securities (Nigeria). He is a Fellow of the Chartered Institute of Stockbrokers and an alumnus of University of Lagos, Lagos Business School as well as University of Oxford, United Kingdom.

    Bolumole is a financial market professional with close to two decades of experience in capital markets across; asset management and merchant banking.

     

  • NSE, Afrinvest launch new equity indices

    The Nigerian Stock Exchange (NSE) and Afrinvest Securities Limited have launched two factor indices to provide investors with additional benchmarks to track portfolio performance.

    NSE-Afrinvest Banking Value Index (NSE-Afr BVI) and NSE-Afrinvest High Dividend Yield Index (NSE-Afr HDYI) were launched on Monday.

    NSE-Afr BVI and NSE-Afr HDYI were designed in response to requests for applicable benchmarks for measuring value in banking stocks and high dividend stocks listed on the Exchange. They will serve as tools for investment managers and corporate treasuries seeking appropriate benchmarks to evaluate the performance of their portfolios to a segment of the banking sector or high dividend orientation as applicable. The indices can also be used as the performance target in index-replicating financial products such as Exchange Traded Funds and derivatives.

    Chief Executive Officer, Nigerian Stock Exchange (NSE), Mr. Oscar Onyema stated that the two new indices were due to rising demand for financial products that adequately meet the needs of market participants.

    He said the indices consider the fundamentals of underlying securities and commended Afrinvest for its product innovation and for leveraging the Exchange’s index calculation and management expertise.

    “The Exchange is committed to driving sustainability of our marketplace and supporting investable product creation endeavours by stakeholders to enhance the depth of the market. We will continue to welcome innovative solutions to identifiable gaps in the capital market,” Onyema said.

    Group Managing Director, Afrinvest West Africa, Mr. Ike Chioke  said the new will serve as a veritable proponent for more forward-thinking initiatives meeting market needs.

    According to him, on the back of these indices, investors will now enjoy the benefits of proxies that seek out dividend-paying stocks and value-oriented banking stocks listed in Nigeria.

    The NSE-Afr BVI and the NSE-Afr HDYI as with all other NSE indices will align with the NSE’s Index committee’s governance standards.

     

  • NSE lifts suspension as African Alliance Insurance loses N6.25b

    The Nigerian Stock Exchange (NSE) has lifted suspension  on trading in the shares of African Alliance Insurance Plc, ending 18-month suspension that made the company stagnant on the same price and without trading activities.

    The lifting of the suspension was sequel to the submission of relevant financial statements to the Exchange, including the audited report and accounts for the year ended December 31, 2017.

    The NSE on July 5, 2017 suspended trading in shares of African Alliance Insurance and 16 other companies for failing to adhere to best corporate governance and extant post-listing requirements that require quoted companies to submit their periodic financial statements and reports within stipulated timelines.

    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.

    Not less than 83 per cent of quoted companies use the 12-month Gregorian calendar year as their business year. The business year thus terminates on December 31. While March 31 is usually the deadline for submission of annual report for companies with Gregorian calendar business year, the deadline for the quarterly report is a month after the quarter.

    Key extracts of the audited report and accounts for the year ended December 31, 2017 showed that African Alliance Insurance recorded net loss of N6.25 billion on gross premium of N7.63 billion in 2017 compared with net profit of N2.44 billion on gross premium written of N14.07 billion recorded in 2016.

    The management of the insurance company stated that the 46 per cent decline in gross premium written as well as 48 per cent reduction in net premium revenue and underwriting loss of N7.1 billion were due to the decision to downplay annuity business amid tough operating environment.

    The net loss of N6.25 billion, which was transferred to retained earnings, wiped off the shareholders’ funds of the company, leaving negative equities’ funds of N511.2 million. Total assets stood at N43.83 billion as against total liabilities of N44.34 billion in 2017 as against total assets of N45.65 billion and total liabilities of N40.2 billion in 2016.

    Incorporated as a private limited liability company in May 1960, African Alliance Insurance was the first indigenous insurance company to carry out the business of life assurance in Nigeria. In 2005, it also pioneered the sale of Takaful (Islamic Insurance) in Nigeria through a robust selection of Sharia compliant insurance and investment products. It also in 2005 went into a joint venture with First Securities Discount House Limited (FSDH) to set up Pension Alliance Limited (PAL), a licenced Pension Fund Administrator.

    The African Alliance Insurance Group included Axiom Air Limited, a cargo airline company, Frenchies Foods Nigeria Limited, a restaurant and catering company and Ghana Life Insurance Company Limited, a life company in Ghana. In the reporting year, the company voluntarily wound down African Alliance Realty Company Limited and Frenchies Foods Nigeria Limited.

  • NSE demotes Nigerian Breweries to medium stock

    The Nigerian Stock Exchange (NSE) yesterday relegated Nigerian Breweries from its special status of high-priced stock to medium-priced stock, after the leading brewers slipped below the requirement for continuing recognition as high-priced stock.

    In a circular, the Exchange indicated that the review of Nigerian Breweries price trade activity over the most recent six months provided the basis for the reclassification of the company from high-priced stock to medium-priced stock.

    The NSE classifies quoted companies into three categories-high-priced, medium-priced and low-priced stocks, based on their market price.

    The high-priced stocks 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.

    The medium-priced stocks  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 low-priced stocks, where majority of listed companies fall, 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 above but below N5 per share at the time of listing on the Exchange.

    As a medium-priced stock, stockbrokers would need 50,000 shares to move the share price of Nigerian Breweries as against 10,000 shares required for a high-priced stock. Also, the tick size for Nigerian Breweries has changed from 10 kobo to 5.0 kobo, implying that the company’s share price movement will be slower.

    Stocks under high-priced group shall have price change with minimum of 10,000 units; stocks under medium-priced group shall have price movement with a minimum of 50,000 units while stocks under low-priced group shall have price change with minimum volume of 100,000 units.

    According to the Exchange, Nigerian Breweries’ stock price dropped below the N100 threshold on August 31, 2018 and traded below N100 up till close of business on December 31, 2018. This indicated that Nigerian Breweries’ stock price has traded below N100 in the four out of the last six months.

  • NSE launches new chat to boost market participation

    The Nigerian Stock Exchange (NSE) has launched an artificial intelligence (AI)-powered chatbot that responds directly and automatically to enquiries through Facebook Messenger. The platform, known as X-Bot, is reputed as the first by any African securities exchange.

    X-Bot is designed to provide market participants, especially retail investors, convenient, faster and real-time access to data and information from the Exchange.

    NSE Chief Executive Officer (NSE) Mr. Oscar Onyema said the introduction of X-Bot was in line with the Exchange’s drive to improve market participation through greater access to market information.

    “We aim for an Exchange that is easily accessible and actively matches investors’ increased thirst for information and detailed disclosure information to make sound investment decisions. With X-Bot, investors in our market can access on-demand market information, news and events on the activities of the Exchange and the various products and instruments that are listed and traded on it,” Onyema said.

    According to him, the NSE has always been at the forefront of innovation, and the launch of the X-Bot marks yet another significant milestone in its continuous adoption of new technologies with a customer-centric focus to make financial services more inclusive and to provide a superior customer experience in the access and use of capital.

    Head, Regulatory Technology (RegTech) NSE) Mr. John Adelana said customer experience is a key priority for NSE, noting that the Exchange is deeply committed to constantly improving customer experience.

    According to him, with the launch of X-Bot, NSE becomes the first African securities exchange to launch a customer interactive machine learning chatbot, which contributes to facilitating and accelerating the process of providing information to market participants.

    “We are particularly excited about the ability of X-Bot to learn through customers interactions and become better at providing our customers with more relevant and timelier solutions overtime,” Adelana said.

  • NSE to ‘black list’ corrupt officials

    THE Nigerian Stock Exchange (NSE) is to open a “Blacklist” for corrupt persons and indicted officials who are deemed unfit to engage in the stock market.

    In a new amendment to the rules at the Exchange, the NSE has been mandated to open a “blacklist” for  recording corrupt persons.

    The amendment, approved by the Securities and Exchange Commission (SEC) this month, strengthens the Exchange’s intolerance for infractions and places greater responsibility on capital market operators.

    Those to be blacklisted include anyone who the Exchange determines that he or she no longer entitled to privileges, services, recognition or access to the Exchange and its facilities as well as those not permitted to deal or transact with or be employed by a dealing member or person.

    The rule applies to dealing member, an authorised clerk, an employee or director of a dealing member, a sub-broker, or any other capital market operator.

    According to the rules, any person blacklisted by the Exchange may, however, apply to the Exchange for reinstatement after the expiration of the blacklisting period imposed by the Exchange; or where the blacklisting is not for life, a reasonable period has elapsed where no period is specified by the Exchange.

    Any person applying for removal from the blacklisting and reinstatement into the capital market must “provide compelling reasons” in support of his or her application.

    The Nation’s check at the weekend indicated that 17 persons, who had earlier been indicted and earmarked as blacklisted would form the first batch of the “Blacklist”, including three persons that were indicted of fraudulent transactions in 2018.

    A source said the institution of a  “Blacklist” was meant to strengthen the hands of the Exchange in its fight against unauthorised sales of investors’ shares and diversion of proceeds by capital market operators.

    A check indicated that about 90 per cent of the existing blacklisted persons were due to unauthorised sales of client’s shares. Other ranking crime was manipulation of the market or share prices.

    The Nation had recently reported that the Economic and Financial Crimes Commission (EFCC) is investigating about 35 fraud cases at the Nigerian capital market.

    Although the full details of the cases could not be disclosed due to legal confidentiality and ongoing investigations, a review of the preliminary findings indicated that most cases relate to fraudulent sale of clients’ shares and diversion of clients’ funds, impersonation and false representation of products and services.

    Already, EFCC is pursuing about five cases in court, in collaboration with the Nigerian capital market authorities. The anti-corruption agency had successfully prosecuted a case that led to a seven-year jail sentence and forfeiture of assets of a former managing director of a stockbroking firm.

    The NSE-through its Disciplinary Committee and Securities and Exchange Commission (SEC)-through its Administrative Proceedings Committee (APC) run an active investigative mechanism that seeks to uncover malpractices, sanctions indicted operators and restitutes affected investors. However, both NSE and SEC lack prosecutorial powers.

    Capital market authorities had bridged the gap between their investigative powers and prosecutorial powers through Memorandum of Understanding (MoU) with the EFCC, which allows the organisations to collaborate on information sharing, investigation, prosecution and enforcement.

    The Nation had confirmed that there has been more than 100 per cent increase in capital market cases under investigation by the EFCC after last year’s meeting between the Acting Chairman, Economic and Financial Crimes Commission (EFCC), Mr. Ibrahim Magu and Chief Executive Officer, Nigerian Stock Exchange (NSE), Mr. Oscar Onyema and other top executives and stakeholders at the stock market.

    SEC and EFCC had earlier in January 2017 signed a Memorandum of Understanding (MoU) that formally established the alliance between the two Commissions. The MoU seeks to promote the efficient investigation and conclusion of all cases reported by either of the institutions to each other and to promote the integrity, efficiency and soundness of the Nigerian capital market and the economy in general.

     

  • NSE launches new board for REITS, closed-end funds

    The Nigerian Stock Exchange (NSE) will today move Real Estate Investment Trusts (REITs) and closed-end funds listed on it to a new board in a final stage of an extensive restructuring aimed at boosting the asset classes.

    In a circular at the weekend, the NSE stated that the migration of these asset classes was aimed at promoting visibility and liquidity of listed REITs and closed-end funds (CEFs).

    The Exchange reiterated its commitment to partnering with issuers, investors and other capital market stakeholders, in providing a multi-asset platform that caters to different classes of investors.

    The restructuring that started in April 2017 included incorporation of specific rules relating to REITs and closed-end funds into the Rulebook of the Exchange as well as submission of quarterly financials and audited full year financial statements to the Exchange through the NSE X-Issuer Portal by REITs and closed-end funds.

    The Exchange had noted that the financials being submitted by REITS and closed-end funds will be accessible to the public through the NSE’s website and other NSE platforms.

    Besides, REITs and closed-end funds listed on the Exchange would be required to submit relevant key performance metrics weekly to the NSE while the Fund Managers will also be required to post the information on their website.

    “The changes will also make it easier for existing and potential investors to access information required to make investment decisions thereby contributing to the growth of these products in our market,” the Exchange stated.

    The Exchange urged fund managers to the REITs and closed-end funds to embark on consistent marketing campaign on the changes and provide detailed information to sensitise and educate investors about this asset class, as a viable alternative investment vehicle.

  • Vetiva, Cordros Capital, others win NSE CEO awards

    The Nigerian Stock Exchange (NSE) has announced winners of its annual NSE CEO Awards. Winners included Stanbic IBTC Capital Limited, Vetiva Capital Management Limited and Cordros Capital Limited, which were joint winners of the award for issuing houses with the highest number of primary market transactions in the equity segment.

    Initiated in 2012, the NSE CEO Awards is designed to reward and motivate listed companies, dealing member firms, fund managers and issuing houses to attain higher levels of corporate governance, compliance and performance that reinforce investor confidence in the Nigerian capital market.

    This year, the Exchange enhanced the award categories from three to 10 to reflect the dynamic nature of the market. The categories for this year include most digital broker of the year, which was presented earlier in the year to Meristem Stockbrokers Limited at the Exchange’s Market Data Conference in October 2018; best dealing member firm in terms of volume; best dealing member firm in terms of value; most compliant dealing member firm; most compliant listed company; listed company with highest number of disclosures; issuing house with the largest value in a single deal; issuing house with the highest number of primary market transactions in equity segment; issuing house with the highest number of debt issuance in the corporate bonds segment; and fund manager with the largest listed fund size.

    Pilot Securities Limited was named the most compliant dealing member firm for 2018, having demonstrated the highest degree of compliance with the rules and regulations governing dealing members of the Exchange in 2018. Stanbic IBTC Stockbrokers Limited won two awards for dealing member firm with the highest volume and dealing member firm with the highest value of trades.

    FBNQuest Merchant Bank Limited, ARM Securities Limited and Stanbic IBTC Capital Limited were adjudged winners of the award for issuing houses with the highest number of debt issuance in the corporate bonds segment. This was based on the value of new transactions approved and listed on the Exchange.

    The award for issuing houses with the largest value in a single deal went to Stanbic IBTC Capital Limited and Union Capital Market Limited, for facilitating the highest value of deals on the Exchange. First City Asset Management Limited won the award for fund manager with the largest listed fund size. This award takes into cognisance the cumulative size of new funds listed on the Exchange in 2018.

    Seplat Development Company Plc emerged winner of the award for issuer with the highest number of disclosures, for issuing the highest number of non-structured disclosures during the year under review. Nigerian Breweries Plc. was named the most compliant listed company, for being an early filer of financial statements; complying with the Securities and Exchange Commission (SEC) Code of Corporate Governance; with zero sanctions received during the year under review. The company is also Corporate Governance Rating System (CGRS) certified.

    Speaking at the awards, Chief Executive Officer Nigerian Stock Exchange (NSE) Mr. Oscar Onyema, praised the winners for their hard work, dedication and contributions to the development of the capital market.

    According to him, the winning companies have demonstrated capabilities and commitment towards quality development and exceptional performance; high ethical standards; compliance with the rules and regulations of the Exchange, and other applicable laws and regulations that leave no room for any penalties; while acting as key drivers in strengthening the Nigerian capital market.

    “The awards offer winners a year-round marketing opportunity and a big morale-booster for companies who have made extraordinary contributions to the Nigerian capital market and exemplify the highest standards,” Onyema said.

    Also at the event, five employees of the Exchange from its five divisions namely shared services, regulation, listings business, trading business and office of the CEO were awarded the most distinguished employees for their exemplary performance during the year under review.

    Joseph Kadiri, media relations officer at the Exchange, won the distinguished employee award for the shared services division.

  • NSE places full suspension on C & I Leasing

    Authorities at the Nigerian Stock Exchange (NSE) yesterday placed full suspension on trading in the shares of C & I Leasing Plc in order to facilitate the ongoing share reconstruction of the leasing company. The full suspension is expected to remain until December 27, 2018 during which there will be no trading and price movement on the shares of C & I Leasing.

    The full suspension was to enable the company’s registrars to update the register of shareholders for the planned share consolidation.

    C & I Leasing plans to reduce its paid up share capital by 80 per cent in a share capital reconstruction that will see cancellation of 1.506 billion ordinary shares.

    According to the plan, four ordinary shares of 50 kobo each will be consolidated into one ordinary share of 50 kobo each. The reconstruction will reduce C & I Leasing’s current outstanding share capital of 1.883 billion ordinary shares of 50 kobo each to 376.56 million ordinary shares of 50 kobo each.

    The qualification date for the share reconstruction was Wednesday, December 12, 2018. All existing C & I Leasing shares certificates became null and void on the qualification date and new share certificates in C & I Leasing would be issued to those shareholders whose names appear on the company’s register of members as at the close of business on the qualification date as approved by the court in the ratio of one ordinary share for every four ordinary shares previously held.

     

  • NSE, judges meet over capital market cases

    TO improve investors’ confidence in the market, officials of the Nigerian Stock Exchange (NSE) and judges of the Investments and Securities Tribunal (IST) will meet this weekend to discuss processes and implications of capital market cases.

    A circular on the meeting indicated that the judges and senior executives at the Exchange will discuss results of proceedings and explore ways to foster a better relationship between the organisations.

    The meeting, scheduled for Friday at the Exchange in Lagos, is the second high-level interface between the IST and NSE, after the tribunal visited the NSE last May.

    The IST, which has adjudicatory powers equivalent to that of the Federal High Court, is a special-purpose litigation court for the capital market. Under the capital market dispute resolution framework, the IST stands as the final arbiter in the enclosed cycle of market stakeholders and its decisions are only subject to review by courts of higher jurisdictions.

    The IST was established under Section 274 of the Investment and Securities Act (ISA). Section 289 of the ISA stipulates that a person aggrieved by any action or decision of SEC, may institute an action at the IST or appeal against such decisions within the period stipulated under the act provided that the aggrieved person shall give to SEC 14 days notice in writing of his intention to institute an action or appeal against its decision.

    IST was constituted and inaugurated on December 19, 2002 as part of the Federal Government’s reforms of the financial sector. It is a dedicated, specialised and fast-track civil court for the resolution of disputes arising from investments and securities transactions.

    The ISA stipulates that all matters before the tribunal are to be disposed of within 90 days.

    The NSE-IST parley comes on the heels of increased collaborations by  capital market authorities and law enforcement agencies to reduce and forestall financial crimes and ensure stronger enforcement regime in the market.

    Capital market regulators and law enforcement agencies operate a two-pronged strategy involving restitution and prosecution to secure full restoration for investor and deter corrupt practices through criminal prosecution and recovery of illegal proceeds.

    The Economic and Financial Crimes Commission (EFCC) is investigating some 35 fraud cases at the capital market as the anti-corruption agency and capital market authorities pursue a two-pronged strategy aimed at discouraging corrupt practices at the market. Already, EFCC is pursuing about five cases in court, in collaboration with the capital market authorities.

    While the NSE-through its Disciplinary Committee and Securities and Exchange Commission (SEC)-through its Administrative Proceedings Committee (APC) run active investigative mechanism that seeks to uncover malpractices, sanctions indicted operators and restitutes affected investors, they both lack prosecutorial powers.

    Investment and Securities Tribunal (IST) Chairman/Chief Executive Officer Mr Isiaka Idoko-Akoh had during the May visit assured that the tribunal stands ready to ensure that no investor loses money in the market due to share practices or abuse of the market processes.

    He pointed out that that IST was established to adjudicate on matters relating to capital market disputes, urging investors to embrace the tribunal instead of going to normal court that could last for a long period before passing judgement.

    He called on all stakeholders to join in creating awareness, public enlightenment and training so that people can understand the workings of IST.

    According to him, quick dispute resolution will improve investor’s confidence, which will lead to increase in quantum of business in the capital market.

    Idoko-Akoh, however, urged companies to adhere to the principles of good corporate governance to reduce trade disputes.

    He added that adherence to good corporate governance by companies would reduce trade disputes and fraud in the market.

    He urged stakeholders to support the tribunal, noting that good remuneration for the management and staff of the tribunal will enhance efficient service delivery.