The Nation Newspaper

Tag: stock market

  • Stock market rallies on successful polls

    Nigerian equities market broke into a major rally on Monday as the Independent National Electoral Commission (INEC) began the collation and announcement of results of Saturday’s presidential and national assembly elections.

    With more than three advancers for every decliner, the overall market situation at the Nigerian Stock Exchange (NSE) was exceedingly positive. There were visible improvements in investors’ appetite for Nigerian equities across the sectors.

    Benchmark indices showed average gain of 0.57 per cent yesterday, equivalent to net capital gain of N68 billion within the five-hour trading session. The rally nudged the average year-to-date return to 4.04 per cent.

    Most analysts expected the Nigerian stock market to witness considerable rally after the national elections. INEC had conducted the first phase of presidential and national assembly elections on February 23, 2019. The second and last phase of gubernatorial and state house of assembly elections are scheduled for March 09, 2019.

    Cordros Capital attributed the rally at the stock market to the conduct of the weekend general election noting that “sentiments in the Nigerian equities market turned positive” on the basis of clearer political system.

    “We observed cautious trading in today’s trading session as investors await the results of the 2019 Presidential elections. We expect market direction this week to be largely determined by the outcome of the election,” Afrinvest Securities stated.

    The All Share Index (ASI)- the common value-based index that tracks share prices at the equities market, rose from its opening index of 32,515.52 points to close at 32,700.12 points. Aggregate market value of all quoted equities also increased correspondingly from its opening value of N12.126 trillion to close at N12.194 trillion.

    All sectoral indices also closed on the upside, underlining the widespread bargain-hunting across the sectors. The NSE Consumer Goods Index rose by 1.26 per cent. The NSE Insurance Index appreciated by 1.13 per cent. The NSE Banking Index rose by 0.85 per cent. The NSE Oil & Gas Index improved by 0.05 per cent while the NSE Industrial Goods Index inched up by 0.02 per cent.

    “If we have a smooth election, the immediate market reaction will be bullish and increase in market activities, both in terms of volume and value. This will further be supported with the fact that the risk premium of the economy would have reduced,” Managing Director, GTI Asset Management Limited, Mr Amos Aledare said.

    According to him, the reduced political risk, relative peace and stability in the economy and other fiscal and monetary factors could stimulate foreign investors’ interest in the Nigerian market.

    There were 25 gainers against eight losers at the NSE yesterday. Nigerian Breweries led the gainers with a gain of N3.20 to close at N83.20. 11 followed with a gain of N2 to close at N180. Dangote Flour Mills added N1 to close at N11.05. NASCON Allied Industries rose by 65 kobo to close at N18.90. Dangote Sugar Refinery chalked up 50 kobo to close at N15.50 while Union Bank of Nigria appreciated by 35 kobo to close at N7.25 per share.

    On the negative side, Total Nigeria led the losers with a drop of N5 to close at N190. Flour Mills of Nigeria followed with a loss of 20 kobo to close at N20 while Access Bank, FBN Holdings and PZ Cussons lost 5.0 kobo each to close at N6.35, N8.30 and N12.30 respectively.

    Total turnover stood at 219.7 million shares valued at N5.5 billion. Nigerian Breweries was the most active stock with a turnover of 42.71 million shares worth N3.55 billion. Diamond Bank followed with 30.8 million shares worth N75.5 million while Access Bank placed third with 20.71 million shares valued at N131.4 million.

    Many analysts remained cautious citing the need for clearer macroeconomic direction.

    “In the absence of a positive catalyst, as well as the still tense political milieu, we guide investors to trade cautiously in the short term. However, stable macroeconomic fundamentals and compelling valuations remain supportive of recovery in the mid-to-long term,” Cordros Capital stated.

  • ‘13.9m investors’accounts in stock market’

    • NSE launches mutual fund trading platform

    A total of 13.9 million investors’ accounts are in the  stock market’s central depository, the Nigerian Stock Exchange (NSE) has said.

    Speaking at the weekend at the launch of the NSE’s new trading platform for mutual fund, NSE Chief Executive Officer, Mr Oscar Onyema, said there were 13.9 million investors’ accounts in Central Securities Clearing System (CSCS), the clearing and settlement house for the Nigerian capital market.

    However, there may be investors with multiple accounts. Capital market stakeholders are currently running a campaign to merge and eradicate multiple accounts.

    Onyema said the launch of the NSE distribution and trading platform for mutual funds would not only provide an opportunity for the 256 brokers in the market to distribute to existing 13.9 million investors’ accounts in CSCS but also attract new investors that may be interested in gaining exposure to the capital markets through mutual funds.

    He said the new platform will enhance visibility for listed funds and promote financial inclusion, while stimulating retail investor participation in the market.

    “This distribution platform is a new channel for accessing mutual funds which are listed on the NSE. This restates our commitment to provide market operators, issuers, fund managers and investors with a reliable, efficient and an adaptable platform to create a more transparent, liquid and accessible market in line with global best practices,” Onyema said.

    According to him, the platform will facilitate electronic transactions with seamless connection   among NSE, CSCS, fund managers and brokers as investors have the benefit of a single view of their mutual fund investment while being able to invest with multiple fund managers through a single broker.

    He noted that in recent years, there has been significant increase in the number of mutual funds in Nigeria, an indication of the growing interest in collective investment schemes.

    “However there is significant room for growth in mutual fund assets, as the ratio of these to the Nigerian Gross Domestic Product is estimated at less than 1.0 per cent. As at February 18, 2019, the numbers of registered mutual funds with the Securities and Exchange Commission (SEC) stood at 76 with Net Asset Value (NAV) in excess of N600 billion. Out of these registered funds, 47 are listed on the NSE memorandum listing platform. With the launch of this new distribution platform, we expect to receive more applications for listing of mutual funds,” Onyema said.

    NSE Head of Listing Business Division, Mr. Olumide Bolumole said the new platform would enhance visibility for the listed mutual funds and promote financial inclusion while stimulating retail investor participation in the stock market.

    “Through this platform investors can pool funds into chosen basket of securities which have proven to be a veritable means to optimise returns and reduce risks,” Bolumole said.

    Central Securities Clearing System (CSCS) Plc Mnaging Director, Mr. Haruna Jalo-Waziri, said the new platform marked another milestone for the Nigerian capital market as it will serve as a step towards improving the level of financial inclusion in Nigeria by giving investors varieties of investment products.

    According to him, as part of its commitment to providing far-reaching benefits to the capital market, CSCS has proactively invested in technology that would enable us provides seamless post-trade services to a wide range of financial instruments, including collective investment schemes.

    “Additionally, fund managers can now augment their product distribution strength using the brokerage communities’ network. We believe this will also contribute towards increasing secondary market participation whilst growing funds under management for Asset managers”, Jalo-Waziri said.

    Fund Managers Association of Nigeria (FMAN) President, Mr. Dayo Obisan, noted that one of the initiatives in the FMAN five-year road map was to develop and implement a nationwide distribution and trading platform for mutual funds.

    Association of Stockbroking Houses of Nigeria (ASHON), Chairman, Chief Patrick Ezeagu, said stockbroking firms were delighted to have been a part of the development and emergence of the new trading platform.

    According to him, the new platform was directed at reawakening the small savers in order to take advantage of investing through mutual fund and to have the synergistic benefit of a better return in the market.

    “The memorandum trading platform will facilitate the ease of doing business in trading and distribution of mutual funds, it will inspire small savers thereby promoting financial inclusion which is an important focus of our members. We congratulate everyone that contributed to the success of this initiative and encourage all operators to embrace this new aspect of deepening of our market which is a formidable incursion into an erstwhile grey sector,” Ezeagu said.

     

  • ‘Stock market key to firms’ survival’

    The Chairman of Cutix Cables Plc, Dr. Okechukwu Mbonu, has described stock market as one of the essential keys to the survival and longevity of any serious business minded company.

    He said investing in the market could yield huge financial benefits for the individual.

    Speaking during the Annual General Meeting (AGM) of the firm in Nnewi, Anambra State, Mbonu further noted that there were gains in individuals taking advantage of the opportunities available in the financial market, through purchase of shares.

    He however expressed worry that not much of the companies in the Southeast were listed on the Nigerian Stock Exchange (NSE), saying this was responsible for the low individual investors in shares.

    He therefore urged Entrepreneurs in the South-eastern part of the country to work towards getting their companies quoted on the NSE to ensure that they outlive their founders.

    Mbonu said: “How many privately owned companies in the Southeast are listed on the stock exchange? Not many of them in this part of the country.

    “People must begin to understand the benefit and value they can derive from investing in the financial market, that is why you see companies going to money market and individuals investing in stocks.

    “The Southwest is ahead in terms of investment and share ownership because of number of listed companies there and they know the value, but it is a gradual process.

    “We urge you, the media to help us educate people from this part of the country on the immense benefit of not only investing in stock market but also taking your company to the financial market.”

     

     

     

  • Capital Bancorp deepens stock market with improved online access

    Capital Bancorp Plc yesterday unveiled its improved online services and products as part of efforts to provide investors with seamless and direct access to the Nigerian stock market. The formal media launch of the five products and services are expected to also promote Federal Government’s financial inclusion project.

    The five products and services included the upgraded Bancorp E-Trade, which allows investors to trade personally and directly at the Nigerian Stock Exchange; online account opening, which provides instant online account opening; Bancorp Mobile, a mobile app for on-the-go trading; live chat that enables investors to get immediate response to their enquiries and self service desk that provides walk-in clients with a personal computer to trade or resolve their transactional issues.

    Addressing financial journalists in Lagos yesterday, Head, Stockbroking, Capital Bancorp, Mrs Ayoola Opeyemi said Capital Bancorp places much emphasis on technology as a major driver of the entire global financial market and will continue to introduce innovative products and services in order to attract more investors into the Nigerian capital market.

    She explained that investors trading through the online products and services will not incur any extra cost above the normal industry-standard commission payable on stockbrokerage.

    According to her, the online products have been enhanced with new features that improve customers’ seamless experience and security of their transactions.

    She urged Nigerians to embrace Capital Bancorp’s online stockbroking products and services as they are safe and convenient to use.

    Head, Customer Relations, Capital Bancorp Plc, Miss Opeyemi Ojomu noted that Bancorp E-Trade enables investors to take advantage of price volatility by purchasing or selling stocks instantly.

    “It is not uncommon that price volatility in the market makes investors unable to take advantage of some stocks instantly at their particular prices. With our upgraded Bancorp E-Trade, we have been able to solve this challenge for our clients. The direct market access allows clients to trade themselves without the intervention of the broker. They key in their mandates which go directly to the floor of the Nigerian Stock Exchange and mandates are executed immediately stocks are trading at clients’ limit,” Ojomu said.

    She added that investors can also use the market watch window on the Bancorp E-Trade portal to view live trades, real time prices and total volumes of bids and offers on all stocks with their corresponding prices before making their trading decisions.

    She pointed out that Bancorp Mobile is a secure trading application that offers simple and hassle-free trading on equities listed on the NSE and the NASD OTC Securities Exchange at the click of a button.

    “Bancorp Mobile enables you to open an account, trade, track your stock position and view transactions anytime anywhere on a mobile friendly interface. Our Live Chat provides opportunity for instant response while the Self Service Desk enables clients that walk in to service themselves,” Ojomu said.

    Head, Information Technology, Capital Bancorp Plc, Mr Stephen Akande said all the products and services are secured noting that the products were designed in compliance with current security features to hedge against cyber fraud.

    Chief Compliance Officer, Capital Bancorp Plc, Mrs Oluwarinumi Olawale allayed fears of abuse of the products noting that the company has a robust Know Your Client (KYC) policy which allows it to checkmate abuses.

    According to her, besides the regular monitoring of transactions, the company usually conducts enhanced due diligence on suspicious transactions and account holders to ensure that all transactions are in compliance with extant financial regulations.

     

  • Panic grips stock market as equities lose N1.31tr

    Panic selling set in at the Nigerian stock market at the weekend as five consecutive losses unnerved investors and threw the equities market into its lowest momentum in recent times. An all-week decline threw the bears all out and exacerbated the muted slowdown that had marked share pricing in recent week.

    Losses mounted to N1.31 trillion at the weekend in three-month consecutive decline that started in March with the weekend’s panic underlining the growing anxieties this month after two earnings seasons failed to rekindle the rally at the Nigerian equities market.

    Nigerian equities had lost N557 billion in March, showed restraint with a modest loss of N44 billion in April, but turned worst this month with a net capital loss of N705 billion. Quoted equities lost N416 billion last week, equivalent to an average decline of 2.84 per cent for the five-day trading week, more than half of the 4.72 per cent decline recorded so far this month.

    Most quoted equities now carry the minus sign, indicating unmatched shares supply and a full-blown buyers’ market. There were nearly four losers for every gainer in the last trading session at the weekend as bargain-hunters took advantage of shares glut to under-price stocks.

    With macroeconomic fundamentals and crude oil price on the rise, most analysts were hesitant about the underlying trigger for the rush for exit but were unanimous that bandwagon effect had played on latter-day sellers.

    “There is no reason for anybody to panic. We are used to the political cycles and electioneering, there has been no major policy somersault to warrant the rush. People should not allow bandwagon to drive them out of values,” President, Association of Stockbroking Houses of Nigeria (ASHON), Patrick Ezeagu said.

    Ezeagu said the decline at the equities market might have been worsened by assets reallocation from equities to fixed-income securities as investors run for the safety of the guaranteed returns to hedge against uncertainties. The Central Bank of Nigeria (CBN) last week retained the benchmark interest rate, the Monetary Policy Rate (MPR) at 14 per cent, despite widespread clamour for a rate cut.

    GTI Capital Chief Operating Officer, Mr. Kehinde Hassan, said the trading momentum at the equities market has left the realm of profit-taking to panic-selling, citing the huge shares supply at the weekend.

    He, however, noted that the steep decline in recent period has created considerable buy opportunities for investors, urging investors to lock in values from undervalued shares in the consumer goods, industrial goods and banking sectors.

    The All Share Index (ASI)-the benchmark index for the Nigerian equities market, closed at the weekend at a low of 39,323.62 points as against 41,268.01 points recorded at the beginning of this month. It had opened the week at 40,472.45 points.

    Aggregate market value of all quoted equities at the Nigerian Stock Exchange (NSE) dropped at the weekend to N14.244 trillion compared with N14.949 trillion recorded as value on board at the beginning of the month. Total market value of quoted equities had opened last week at N14.660 trillion.

    The sustained decline cut the average year-to-date return for Nigerian equities down to 2.83 per cent from 8.53 per cent at the end of the first quarter or 7.91 per cent at the beginning of this month. On the face value, net capital gain by investors in Nigerian equities, so far this year, has plummeted from N1.34 trillion at the beginning of this month to N635 billion at the weekend.

    Investors in Nigerian equities had ended the first quarter of this year with a net capital gain of N1.38 trillion, sustaining the upswing that had seen quoted equities with net capital gain of N4.36 trillion in 2017. A strong start in January and February helped the market to moderate a running downtrend in March and sustained the positive quarter-on-quarter performance of the Nigerian equities market.

    Nigerian equities had in January 2018 hit all-time high market capitalisation of N15.3 trillion while the ASI had risen to 43,041.54 points, its highest index points since October 2008.

    Nigerian equities closed 2017 with full-year average return of 42.30 per cent, ranking within the top 10 best-performing equities across the world. Aggregate market value of quoted equities closed 2017 with net capital appreciation of N4.36 trillion.

    Most pundits expected the Nigerian equities to record double-digit returns in 2018. In its ‘Economic and Financial Outlook 2018-2022’ report, FSDH Merchant Bank Group stated that Nigerian equities have potential to generate average return of 27.43 per cent in 2018. Analysts expected the overall macroeconomic performance to continue to improve, strengthening sectoral growths and returns.

    FBNQuest Capital Limited, the investment banking subsidiary of FBN Holdings Plc, predicted that the Nigerian equities market would sustain a bullish run for the second consecutive year with a double digit return of 25 per cent in 2018.

    Capital Bancorp noted that several performance boosters could see Nigerian equities ending the year with average return of 25 per cent.

    Presenting its special outlook report tagged: “Nigeria in 2018: Looking Beyond the surface”, Cordros Capital outlined a positive outlook for the Nigerian economy and the equities market, noting that average return at the equities market could range between a modest return of between 10 and 15 per cent and a bullish performance as high as 40 per cent.

     

  • NSE begins direct flow of information to stock market

    NSE begins direct flow of information to stock market

    The Nigerian Stock Exchange ( NSE ) has launched the auto-flow mechanism in its trading engine. This allows companies to send their corporate earnings’ reports and other information directly to the trading engine on a real time basis.

    The auto-flow function, an existing function of the issuers’ portal had been partially disabled in order to allow a first level, non-substantive review of filings by the NSE before they are circulated to the market and the general public. Since inception in 2013, the Exchange has seldom permitted information to auto-flow to the market.

    With the launch of the full auto-flow mechanism, all corporate information shall flow from the companies to the stock market, a move that will reduce possibility of interference and distortion of the price discovery mechanism.

    A circular obtained by The Nation at the weekend indicated that the full auto-flow mechanism began on the first trading session in 2018.

    The auto-flow mechanism is one of the functionalities of the X-Issuer platform of the Exchange. It allows information filed by companies and other issuers through the issuers’ portal to flow directly to the market on a real time basis without any human intervention.

    According to the Exchange, the time is ripe for all information submitted via the issuers’ portal to auto-flow directly to the market without any intervention of the Exchange.

    The NSE had noted that operationalising the complete auto-flow function on the issuers’ portal will eliminate the current practice of reviewing financials before the financials flow to the market and the Exchange’s website, thus ensuring a real time flow of information directly from the issuer to the market.

    In order to ensure a seamless transition from  previous system to a complete auto-flow system, the Exchange had adopted a four-phase approach that included regulatory and statutory disclosures training, assessment of issuers’ compliance with disclosure requirements, pilot test of auto flow and full launch of complete auto flow.

    Under the phase one, which was held between November and December 2016, the Exchange had organised trainings for company secretaries, compliance officers, chief finance officers and other issuers’ representatives charged with the responsibility of making disclosures to the Exchange.

    In the second phase, the Exchange conducted a comprehensive review of issuers’ filings using interim returns for the last quarter of 2016 and the December 2016 audited accounts of listed companies with December year ends. Deficiencies identified at this phase were highlighted and communicated to companies for correction in subsequent filings.

    Under the third phase, the Exchange conducted a pilot test of the auto-flow mechanism using September 2017 interim returns and September audited accounts of companies with September year ends. Any report with regulatory and statutory deficiencies was withdrawn and corrected immediately. There was no sanction imposed for any report with deficiencies at this stage.

    Under the current final phase, the Exchange has commenced full operationalisation of the auto-flow mechanism in X-Issuer using December 2017 audited accounts.

    The circular indicated that with the full launch of auto-flow, the Exchange will apply regulatory sanctions on companies whose filings flow to the market with any form of deficiency.

     

  • Analysts optimistic on bullish stock market in second half

    The stock market will sustain its recovery in the second half of this year in the absence of any major negative changes in the macroeconomic environment, investment bankers and financiers have said.

    Investors in quoted equities at the stock market netted more than N2.2 trillion in capital gains in the first half of this year as historically low valuations, improved macroeconomic outlook and foreign exchange management sustained almost quarter-round rally in the second quarter.

    A survey of top analysts, investment advisors and financiers agreed on a positive outlook for the stock market in the second half, although many were cautiously optimistic that global fluctuation in crude oil price and political risks would not mitigate the fundamentals of the market.

    Cowry Asset Management Limited Managing Director, Mr. Johnson Chukwu, said the stock market reflects the pass-through effects in the macro economy, especially in fiscal and monetary changes.

    According to him, the market fundamentals show a positive outlook but that will largely be dependent on the continuing improvement in foreign exchange (forex) management and effective coordination of the economy.

    “The market will remain positive if the policy environment remains positive,” Chukwu said.

    Economist and Head, Research and Investment Advisory, SCM Capital Markets, Mr. Sewa Wusu, said the second half might witness a bout of profit-taking but the overall outlook for the period still looks promising.

    According to him, while the market may be influenced by the whims of profit-taking after witnessing sustained bullish rally in the first half, good corporate results, attractive valuations of several equities and socio-economic stability could see the market consolidating the uptrend in the second half.

    “For the second half of 2017, technically, the momentum oscillators are showing that the market is in the overbought region, an indication that profit-taking sentiments may prevail. However, the market outlook still looks promising in terms of attraction valuations across some counters. The only drag that may likely slow down the positive market mood is the outlook on oil prices at the international markets.

    ‘’Otherwise, we may still continue to witness some uptick. Investors as a result may likely exhibit some caution. A lot also depends on the first-half results from the banks, which to a large extent may determine the outlook,” Wusu said.

    GTI Capital,Chief Operating Officer,  Mr. Kehinde Hassan, said the market would benefit from the imminent exit of Nigeria from recession as this could draw the attention of more foreign portfolio investors to Nigerian equities.

    He however agreed that many variables in the macro economy, including political stability, could have moderating effect on the market.

    Most quoted equities closed the first half at their four-year best performances with double-digit returns, ahead of inflation. The average investors saw their portfolios rising by almost a quarter while several investors more than doubled the average benchmark.

    The six-month average year-to-date return stood at 23.23 per cent, almost seven percentage points ahead of the current inflation rate of 16.25 per cent. In monetary terms, the year-to-date gain stood at N2.2 trillion, underlining the fact that the appreciation in market value was driven by share price increases rather than new listings.

    Aggregate market value of all quoted equities on the Nigerian Stock Exchange (NSE) closed the first half at N11.452 trillion as against  this year’s opening value of N9.247 trillion, representing net capital gain of N2.205 trillion or 23.85 per cent. The All Share Index (ASI)-the benchmark index that doubles as sovereign equities index for Nigeria, crossed seven levels to close first half at 33,117.48 points compared with its year’s opening index of 26,874.62 points, representing an increase of 23.23 per cent.

    The rebound in the first half, driven largely by gains recorded in the second quarter, represents a major recovery for hard-pressed investors, who had lost N3.98 trillion in the past three years. The stock market had been on a losing streak since 2014. Investors lost N1.75 trillion in 2014 and followed this with another loss of N1.63 trillion in 2015.

    Against the expectation that political transition and the then new government would quicken a rebound, equities closed last year with a net capital loss of N604 billion. Aggregate market value of all quoted equities on the NSE closed 2016 at N9.247 trillion as against N13.226 trillion recorded at the start of trading in 2014, representing a net capital loss of N3.98 trillion.

    Investors in banking stocks earned as much as a double of any other average investor in the equities market in the first half of this year. A six-month review of sectoral indices for the period ended June 30, 2017 at the weekend showed that banking stocks significantly outperformed the benchmark index and other sectoral indices at the NSE.

    The NSE Banking Index, which tracks price appreciation in the most active banking sector, indicated average year-to-date return of 45.08 per cent for the first half, almost a double of the average year-to-date return of 23.23 per cent for the overall stock market.

    The NSE Industrial Goods Index, which includes Nigeria’s most capitalised company-Dangote Cement, recorded the second highest return with a six-month return of 21.12 per cent. Expectedly, the NSE 30 Index, which tracks the 30 most capitalised stocks that largely comprise of banking and industrial goods stocks, recorded average return of 25.87 per cent within the period.

    With the exception of investors in the emerging stocks segment of the market, other tracked indices showed modest positive returns within the period. The NSE Insurance Index recorded a return of 9.16 per cent. The NSE Consumer Goods Index posted a gain of 11.61 per cent. The NSE Oil and Gas Index recorded the lowest return of 3.35 per cent on the main board.

    The NSE Lotus Islamic Index, which tracks stocks that comply with Islamic investment guidelines, indicated a return of 11.15 per cent. Meanwhile, pensioners appeared to be in for wider dining tables as the NSE Pension Index, which tracks a portfolio of stocks specially screened for pension investment in line with the pension investment guidelines, posted a return of 42.92 per cent.

    However, the NSE ASeM Index, which tracks equities on the Alternative Securities Market (ASeM) for emerging stocks, posted a negative return of 1.27 per cent within the first half of the year.

  • Cloud technology to boost stock market efficiency

    A stockbrokerage industry-specific cloud platform, known as MARLIN, is set to be introduced into the stock market with a view to boosting the operational efficiency of stockbroking firms and the overall market performance.
    InfoTech Group, a renowned company for wide range of software solutions for financial markets and the owner of MARLIN will be hosting an informative seminar on MARLIN for Nigerian Stock Exchange (NSE)’s dealing members tomorrow.
    The company stated that MARLIN had been designed to provide rapid provisioning of high end financial applications for emerging economies to boost stockbrokers’ business efficiency. It enables brokerage houses to improve business efficiency by levering on fully managed technology service.
    “Regarding the seminar, our aim is to address complex professional needs immediately with cutting edge technology that is relevant to addressing end user concerns and help improve efficiency and transparency,” the company stated.
    The company said that it intends to make recommendations to brokerage firms based on its vast working experience in African markets.
    According to the Info Tech Group, the company’s global presence in multiple continents – Asia, Africa, Europe, and Middle East- empowers it for strong delivery channels and post implementation support regionally.
    “Our solutions for financial markets provide a unique blend of technology, domain, and methodology expertise to deliver cutting edge results at rapid speed and low delivery risk. We exploit our financial understanding to create tangible value for customers in terms of strategy as well as implementation. We specialise in designing solutions for financial markets by leveraging technology of award- winning MARLIN and Capizar,” the company stated.

  • Energy Fund outperforms stock market

    The Nigeria Energy Sector Fund (NESF), a closed-end collective investment scheme quoted on the Nigerian Stock Exchange (NSE), has delivered average return of 10.74 per cent over the last three years, significantly exceeding the overall market’s average return of -15.05 per cent during the period.

    In its latest payment, NESF has declared a coupon payment of N51 per note to unitholders for the financial year ended March 31, 2016. The coupon translates to 9.23 per cent at the current market price of N552.20 per note.

    In 2015, despite the impact of severe diminution incurred on investments in some oil and gas stock due to weak performance, NESF paid N35 coupon per note distribution. This translated into 6.33 per cent yield as against a negative return of -17.36 per cent in the stock market. Also in 2014, unitholders earned N92 coupon per note, which translated into a yield of 17 per cent compared to a negative return of 16.14 per cent in the stock market during the period.

    Group Managing Director, SCM Capital Limited, Gaventa Otono, the fund manager to NESF, said the impressive returns was a demonstration of sound management of the fund.

    He said the NESF has since inception continued to witness significant growth and delivered value to unitholders in terms of coupon payments that is second to none in the industry.

    “We kept our investment philosophy and adopted sound investment methodology to continue to sustain the fund`s performance. The adoption of the improved and optimal appropriate asset allocation strategy has been key to the performance,” Otono said.

    He reiterated the resolve of the SCM Capital to aggressively manage and take advantage of emerging opportunities in the economy despite the current economic recession which offers both opportunities and challenges to fund managers.

    While reassuring on its potential to generate competitive returns on investment, the fund manager urged discerning investors who are driven by the passion to earn regular income to take advantage of the enormous opportunities available to invest in the fund in order to earn consistent income.

    NESF is constituted under a trust deed with United Capital Trustees Limited as the trustees and UBA Global Services Limited as the custodian to the fund.

  • Experts canvass for savings to boost stock market

    EXPERTS have called for  saving and investment habits among Nigerians as a long-term strategy to boost the development of the capital market.

    The experts, who spoke at a yearly workshop organised by the Capital Market Correspondents Association of Nigeria (CAMCAN), emphasised the importance of savings as a strategy to deepen domestic participation in the  market.

    Fund Managers Association of Nigeria (FMAN) President, Dr. Ore Sofekun, who spoke on the topic, “Deepening retail investors’ participation in the capital market, said increase saving will accelerate economic growth.

    “If we really want to develop our country, we have to save for long term,” Sokefun said.

    Sofekun, who is also the Managing Director, Investment One Venture Capital, noted that in 2008, the number of domestic investors who invested in the money market funds was higher than foreign investors but the foreign investors later took over and when the economy was down, they went away with their dollars.

    “In United Kingdom, average investors save their money for six to seven years. The day a child is born, parents begin to save for his or her university education as both primary and secondary school education is free,” Sokefun said.

    She said FMAN was working with the Securities and Exchange Commission (SEC) on electronic transfer of funds so as to boost financial inclusion.

    She pointed out that electronic transfer of funds will ensure confidence building between investors and fund managers and encourage more savings.

    Strategy and Corporate Services, FMDQ OTC Securities Exchange Vice President,, Ms. Kaodi Ugoji, noted that Nigerians were not taking advantage of opportunities in the capital market as two per cent of retail investors participate in the Nigerian capital market compared to 43 per cent in United States of America or 19 per cent in South Africa.

    She added that listing of state government bonds in the OTC market would forestall default as people will have opportunity to take position in the bonds.

    National Coordinator-elect, Independent Shareholders Association of Nigeria (ISAN), Mr. Adeniyi Adebisi, who noted that market capitalisation of equities on the Nigerian Stock Exchange has shrunk from N14 trillion to N8.6 trillion, urged the government to ensure return of confidence in the capital market.

    “Confidence of the investors, especially, retail shareholders, have been jolted and severely shaken. It will require a great deal of efforts on the part of government at the highest level of authority to bring back the confidence,” Adebisi said.

    He called for massive education of the investors by all the stakeholders in the capital market in addition to some incentives to encourage investment in the stock market.