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Tag: NSE

  • NSE fines NEM Insurance for contravening its Rulebook

    NSE fines NEM Insurance for contravening its Rulebook

    The Nigerian Stock Exchange (NSE) has fined NEM Insurance Plc for contravening Rule 19.3 of its Rulebook.
    This was after the NSE received a complaint by Bernateva Partners – the solicitor to Eaton Acquisitions Limited, a major shareholder in NEM Insurance Plc – to reverse the decisions reached at the Annual General Meeting (AGM) held at Ibadan, Oyo State in June 2018.
    Following the AGM the NSE also received complaints from other including:

    • Premium Green Limited
    • Starvest Limited
    • Three Sea Investment Limited
    • Oluwaseyilola A. Ojo

    The shareholders claimed that NEM Insurance had failed to notify them of the AGM in accordance with section 217 (1) of the Companies and Allied Matters Act (CAMA), SEC clause 24 and NSE rule 19.3, which prescribed at least 21 days’ notice to shareholders of an AGM to be held
    They also asked the Nigerian bourse to reverse the special resolution proposed and passed at the AGM to raise additional capital through a private placement at a price below the market price of NEM Insurance stock.
    The NSE investigated their claims and found out that:

    • The Company did not dispatch the Notice of the 48th AGM and Annual Reports to the shareholders at least 21 days before the date of the meeting.
    • The shareholders who did not receive the Notice of AGM were not given the opportunity to attend and exercise their voting rights in respect of any of the resolutions passed at the 48th AGM, including the proposed special resolution to raise additional capital through special/private placement.

    The exchange, after its findings, slammed a fine of N575,505.00 on NEM Insurance; being 50% of its listing fee. The fine, according to NSE must be paid on or before November 7, 2018 and failure to do so contravenes Clause 14(d), Appendix III: Form of General Undertaking (Equities), Rulebook of The Exchange, which stipulates a further fine of N300,000.00 in addition to N25,000.00 per day for the period of the violation.
    Consequently, the bourse will communicate its findings to the Steering Board of the Corporate Governance Rating System (CGRS), which may decide to suspend, withdraw or do nothing to the CGRS rating of NEM Insurance.
    NEM Insurance stock closed at N2.96 during trading session today at NSE.
     

  • JUST IN: NSE suspends trading in shares of six listed Nigerian companies

    JUST IN: NSE suspends trading in shares of six listed Nigerian companies

    The Nigerian Stock Exchange (NSE) on Monday suspended trading in the shares of six listed companies.
    The companies were suspended after they failed to file details of their accounts to the Exchange as stipulated by market regulations.
    The six companies are DN Tyre & Rubber Plc, FTN Cocoa Processors Plc, International Energy Insurance Plc, Thomas Wyatt Nigeria Plc, Union Dicon Salt Plc and Unic Diversified Holdings Plc.
    In a notice signed by Godstime Iwenekhai, head of Listings Regulation Department, the NSE said the decision was pursuant to Rule 3.1, Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of The Exchange (Issuers’ Rules) (“Default Filing Rules”).
    The rule provides that if an issuer fails to file the relevant accounts by the expiration of the current period, the Exchange will send to the issuer a “Second Filing Deficiency Notification” within two business days after the end of the Cure Period; suspend trading in the Issuer’s securities; and notify the Securities and Exchange Commission (SEC) and the Market within twenty- four (24) hours of the suspension.”
    The NSE, therefore, said effective Monday, trading in the shares of the six companies remains suspended.
    “In accordance with the rules set forth above, the suspension of the above listed companies will only be lifted upon the submission of the relevant accounts and provided The Exchange is satisfied that the accounts comply with all applicable rules of The Exchange,” the notice said.

  • NSE Retains ISO 27001:2013 Certification for Third Year

    NSE Retains ISO 27001:2013 Certification for Third Year

    For the third consecutive year, the Nigerian Stock Exchange (NSE) is retaining the ISO 27001:2013 certification for its Information Security Management System (ISMS).
    The re-certification followed a rigorous independent audit of NSE’s Information Security Management System (ISMS) by the British Standard Institute (BSI), to ensure that the principles of the International Organization for Standardization (ISO) on ISMS standard are being upheld at the Exchange and controls are working as intended.
    The British Standards Institute is reputed for providing assessment and certification to management system standards across 150 economies globally.
    International Organization for Standardization is an independent, standard-setting body which promotes worldwide proprietary, industrial and commercial standards.
    These standards provide world-class specifications for products, services and systems, to ensure quality, safety and efficiency.
    ISO 27001:2013, (ISMS) is the international standard of best practice for managing confidentiality, integrity and availability of information asset. This includes financial information, intellectual property, personal records and information entrusted by third parties.
    Commenting on the development, CEO of NSE, Mr Oscar Onyema, disclosed that, “We are delighted to retain this ISO certification from the British Standard Institute.
    “It demonstrates our continued commitment to data protection and a clear indication of the robustness of our systems and processes in managing sensitive stakeholders’ information.
    “Since first attaining the ISO 27001:2013 certification in August 2015, we have continued to evolve and improve our security management processes to ensure that our information security controls remain safe and effective in light of emerging business needs and the changing security landscape.”
    “NSE takes a proactive approach to security as we recognise the importance of protecting our data and stakeholders’ information assets. With our recertification, our clients and stakeholders can be confident that we follow information security best practices in managing our risk exposure,” said Mrs Favour Femi-Oyewole, Chief Information Security Officer, NSE.

  • NSE listing: MTN likely to scrap Nigerian IPO after CBN, FG fines

    NSE listing: MTN likely to scrap Nigerian IPO after CBN, FG fines

    The management of MTN Group Limited is considering cancelling its much-awaited listing on the Nigerian Stock Exchange (NSE) via an Initial Public Offering (IPO).
    Some weeks ago, the Nigerian Communications Commission (NCC) said MTN agreed to list its shares on the local bourse before May 2019.
    This was part of an agreement reach to reduce a $5.2 billion fine slammed on it in 2016 to $1 billion for failing to disconnect unregistered subscribers on its network.
    Late August 2018, the Central Bank of Nigeria (CBN) directed MTN Nigeria to refund $8.1 billion to the country, claiming the firm did not properly repatriate the amount to South Africa some years ago.
    Days later, the Attorney General of the Federation (AGF), Mr Abubakar Malami, said the company should pay $2 billion in tax arrears.
    In a report on Tuesday, Bloomberg said the wireless carrier said it may no longer seek to raise capital through the IPO.
    However, MTN is looking at other ways to trade the stock in Lagos, including a so-called introduction, in which existing shares are listed.
    Quoting the Chief Financial Officer of MTN Group, Mr Ralph Mupita, in an interview in Johannesburg, the report said MTN’s board still needs to make a final decision.
    “The IPO type of listing has become challenging under current market conditions,” Mr Mupita said, adding that, “We are exploring other options. The Nigerian business would not get fair value under current market conditions. A listing by introduction is the simplest way forward.”
    MTN could complete the listing by the end of this year or first quarter of 2019, the CFO said. Despite the dispute with the central bank over the repatriation of $8.1 billion out of Nigeria and a separate tussle over $2 billion in back taxes, MTN is committed to a listing, said Mr Mupita.
    “We have sought legal protection for our Nigerian business and a judge has been appointed for upcoming hearings,” Mr Mupita said. The central bank last week said it is considering new information provided by MTN and four banks into the outflows and that it expects to resolve the matter soon.
    MTN’s shares pared an earlier gain of as much as 3.7 percent to close 2.1 percent higher at 89.40 rand in Johannesburg on Monday. In the weeks after Nigerian authorities challenged the transfer of funds, MTN plunged 35 percent, but the stock has since recovered about half of that drop.
    “That cost our shareholders $5.5 billion,” said Mr Mupita. MTN’s investor base is about 44 percent South African. Other major shareholders are based in the US, the UK, Europe and the Middle East.
    MTN still sees a great business case for Nigeria, Africa’s most populous nation, with less than a third of users currently on the internet, Mr Mupita said.
    “We are engaging with authorities and investors and hope to reach a speedy resolution on the matter, to deal with the overhang on our share and the concerns of shareholders about Nigeria’s investment climate for foreign companies,” Mr Mupita said.
    Nigerian authorities have come under criticism following an impasse with MTN and lenders including Citigroup Inc., Standard Chartered Plc, Standard Bank Group Ltd. and Lagos-based Diamond Bank Plc that threatened to spook investors.
    “Investors are getting very nervous and the last thing Nigeria needs is for investors to be nervous,” said Mr Bismarck Rewane, CEO of Financial Derivatives Co., speaking from Lagos. The government should resolve the issue with MTN “as quickly as possible.”

  • Conoil resumes trading as NSE lifts suspension on shares

    Conoil resumes trading as NSE lifts suspension on shares

    The suspension earlier placed on the trading of Conoil shares at the stock market has now been lifted by the Nigerian Stock Exchange (NSE).

    This was confirmed via a statement issued by the management of the stock exchange on Wednesday morning.

    Authorities of the NSE had on Monday, August 6, 2018, banned trading of shares of the oil firm at the stock market over its failure to file in its financial statements.

    But on Tuesday, the company released its results for first quarter of 2018 and then the first six months of this year.

    Consequently, the stock market, on Wednesday, announced lifting the suspension on the shares of the company.

    “We refer our Market Bulletin dated 6 August 2018 notifying the public of the suspension of Conoil Plc for non-compliance with Rule 3.1, Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of The Exchange (Issuers’ Rules), which provides that; if an Issuer fails to file the relevant accounts by the expiration of the Cure Period, The Exchange will: (a) Send to the Issuer a second Filing Deficiency Notification within two (2) business days after the end of the Cure Period; (b) Suspend trading in the Issuer’ securities; and (c) Notify the Securities and Exchange Commission (SEC) and the market within twenty- four (24) hours of the suspension.’

    “Conoil Plc has submitted its Unaudited Financial Statement for the period ended 31 March 2018.

    “In view of the submission of its accounts and pursuant to Rule 3.3 of the Default Filing Rules, which provides that ‘the suspension of trading in the issuer’s securities shall be lifted upon submission of the relevant accounts provided The Exchange is satisfied that the accounts comply with all applicable rules of The Exchange. The Exchange shall thereafter also announce through the medium by which the public and the SEC was initially notified of the suspension.

    “The general public is hereby notified that the suspension placed in the trading of the company’s shares has been lifted effective today, Wednesday, 8 August 2018,” the notice signed by the NSE’s Head of Listings Regulation Department, Mr Godstime Iwenekhai, stated.

    As at the time of filing this report on Wednesday, Conoil was trading at N24.30k per share at the stock market

  • NSE inducts 20 new authorized stockbrokers

    NSE inducts 20 new authorized stockbrokers

    The Nigerian Stock Exchange (NSE) on Tuesday inducted twenty new qualified stockbrokers also known as Dealing Clerks.

    The new clerks were inducted after successfully going through the NSE’s Automated Trading System (ATS) training faculty made up of seasoned capital market regulators and operators.

    Chief Executive Officer of Icon Stockbrokers Limited, Mr Chike Nwanze, challenged the newly inducted brokers to uphold the tenets of the stockbroking profession.

    “You must make your word your bond. This will have a far-reaching effect in stimulating confidence and growth of the Nigerian capital market,” he said.

    In his welcome remarks, Chief Executive Officer of the NSE, Mr Oscar Onyema, stated that, “Your induction today is a testament to your years of dedication and hard work.

    “It also marks the beginning of your journey as Authorized Dealing Clerks of the Nigerian Stock Exchange,” he added.

    According to him, “With the extremely thorough and strict process leading to your qualification, I make bold to say that you are worthy to be practicing stockbrokers enabled to trade on any floor of the NSE in Nigeria.

    “I therefore welcome you all to a new relationship which faces inward – for Professionalism, Integrity, Transparency and Reliability; and outward – for Excellent Service to our investor and issuer communities,” he added.

    Onyema informed the new brokers that the NSE will not hesitate to wield the axe on any erring member that falls short on any of its rules.

    “Let me be clear that we have zero tolerance policy on all infractions and I am confident that I will not get a negative report concerning any of you,” he said at the event.

  • NSE hails Nigeria on space technology

    NSE hails Nigeria on space technology

    Nigerian Society of Engineers (NSE) has commended Nigeria for achieving feat in space technology and traced the development to commitment, focus on development of technology and human capital.

    Engr Aishatu Umar, Chairman, NSE, Giri branch, Abuja gave the commendation on Wednesday during a public lecture entitled “The Impact of Space Engineering on Industralisation, organised by NSE Giri branch.

    She said that with six satellites launches, “Nigeria is a major player in space technology listed among owners of man-made objects orbiting the earth.“

    According to her, the feat has enhanced efforts aimed at meeting the nation’s needs in space sphere.

    She maintained that one of the satellites orbiting the earth today was solely designed by Nigerian scientists and engineers.

    Umar said the success of the engineers was due to the collaboration between them and the National Space Research and Development Agency, Federal University of Technology, Akure and a Japanese University.

    Aishatu, however, said that sustaining the momentum and enhance space technology in the country would require enhancing training and empowerment of personnel.

    She challenged specialists and stakeholders in space technology to make evaluation of the benefits of space technology in Nigeria with informed opinion on how to use it to diversify the economy.

    The event brought together specialists and major key stakeholders on different aspects of space technology and provided them opportunity to look at space resources, share experiences with a view to chartting a way forward.

    Aishatu said the event came at a period the nation was besieged with security challenges, pipeline vandalism, erosion in some parts of the country and climate change.

    She said that ideas gathered from the event would go a long way in putting to use resources abound the space industry to enhance national security and assets among others advantages.

    She noted that with the benefit of space technology in focus, “there is no more appropriate time for this gathering and purpose than now.’’

    Highlights of the event was the induction of new members by the Vice-President of NSE, Dr Edith Ishidi

    The National Chairman of the Nigerian Institution of Civil Engineers (NICE), Andem Ekpo-Bassey and among other dignitaries also attended the occasion.

     

  • NSE market capitalisation loses N416bn in five days

    NSE market capitalisation loses N416bn in five days

    The market capitalisation of the Nigerian Stock Exchange lost N416 billion in five trading days due to exit of foreign investors following delay in 2018 budget passage.

    Market statistics obtained by the News Agency of Nigeria showed that the market capitalisation which opened trading on May 21 at N14.660 trillion shed N416 billion or 2.84 per cent to close trading on May 25 at N14.244 trillion.

    Similarly, the All-Share Index within the period dipped 1,148.83 or 2.84 per cent to close trading on 39,323.62 compared with 40,472.45 it opened for the week.

    Commenting on the persistent market lull, Prof. Sheriffdeen Tella, Professor of Economics, Olabisi Onabanjo University Ago-Iwoye, Ogun attributed the development, in an interview with the NAN to uncertainties in the economy which affected foreign investors confidence.

    Tella said the negative trend in the stock market in the last two weeks arose from the lack of money in the economy.

    He said that investors were taking profits to get cash for spending which led to selling pressure.

    Tella said that delay in the passage of the budget affected foreign investors’ confidence in the nation’s economy.

    He explained that the delay witnessed in the passage of the budget affected government spending, noting that our economy was public-sector driven.

    “So, when government starts spending on infrastructure, communication, and other sectors that will impact on production, foreign investments in both direct and portfolio will start returning,” Tella said.

    According to him, things will change as soon as the budget is fully approved for implementation and confidence returns to the economy.

    The economist said that the fluctuation would likely continue in the next four to five weeks.

    Mr Ambrose Omordion, the Chief Operating Officer, InvestData Ltd. , said that foreign portfolio investors that positioned the market in mid 2017 were exiting their positions ahead of the upcoming general elections.

    Omordion said that they were running for safety as the political risk surrounding the coming 2019 elections were already playing out.

    He called on investors to invest for long-term or go for stocks with good fundamentals to minimise loss

    Mr Sola Oni, Stockbroker and the Chief Executive Officer, Sofunix Investment and Communications said that Nigeria still remained a good investment destination for any investor regardless of any challenge.

    Oni said that investors must appreciate the fact that the stock market moves in a circle all over the world.

    He said that investors were at liberty to realise profit anytime the market was upswing, adding that, profit taking leads to bearish trend.

     

  • UBA Meets NSE’s Stringent Corporate Governance Conditions, Lists on NSE Premium Board

    The Nigerian Stock Exchange on Monday migrated the ordinary shares of United Bank for Africa (UBA) Plc to its Premium Board, in what capital market analysts describe as an attestation to the Bank’s strong adherence to international best practices on corporate governance.

    The Premium Board is the newly created platform for elite companies that meet the most stringent corporate governance and listing standards of the Exchange.

    According to the CEO of Nigerian Stock Exchange, Oscar Onyema, UBA Plc, Seplat Petroleum Development Company Plc, Lafarge Africa Plc and Access Bank Plc were admitted on this elite platform, having fulfilled all the stringent listing requirements for the Premium Board of the Nigerian Stock Exchange. It is a platform for showcasing sector leaders, with sound corporate governance.

    “Premium Board features companies that adhere to international best practices on corporate governance and meet the Exchange’s highest standards of capitalisation and liquidity,” Onyema said.

    According to Onyema, UBA Plc, Lafarge Africa, Seplat and Access Bank have all passed the Corporate Governance Rating System and have market capitalization of N374.48bn, N391.37bn N378.60bn and N347.12bn respectively.

    Onyema added, “companies on the Board are well-run corporates with sound governance, which is part of the requisite qualification for listing on the Premium Board. These stocks which currently have strong visibility on the Exchange will further appeal to investors, seeking to invest in companies with the highest standards of corporate governance. From inception to date, the Premium Board Index continues to outperform the benchmark NSE ASI with the Premium Board recording a total return of 85% per cent, compared to the NSE ASI’s return of 42% over the same period.

    UBA, Seplat, Lafarge and Access would join Dangote Cement Plc, FBN Holdings Plc, and Zenith International Bank Plc on the Premium Board, bringing the total number of companies on this elite platform to seven.

    Speaking at the event, the Group Managing Director/CEO, UBA Plc, Kennedy Uzoka noted; “the migration of UBA shares to the Premium Board of the Nigerian Stock Exchange (NSE) is well deserved. It is instructive to bring back memories of our pioneer Initial Public Offer (IPO) in the Nigerian banking sector, following our listing on the NSE in 1970. Since then, we have remained committed to the development of the NSE and the broader capital market, through our equity and debt listings as well as strategic partnerships with the leaderships of the Nigerian capital market.

    More so, this premium listing of UBA shares is a further attestation of our size and the liquidity of the stock on the Exchange. It is also reinforcing of our continuously evolving sound corporate governance, which is a pre-requisite for companies to be listed on the Premium Board of the NSE. In expectation that this premium listing will further enhance the visibility of our stock on the Nigerian Bourse, we believe our decision to migrate UBA shares to this new Board will deepen value creation for our shareholders. It is pertinent to reiterate our commitment to sustainable and superior wealth creation for all shareholders, as we duly appreciate and place significant premium on everyone’s investment in UBA Group, Kennedy added”.

  • NSE to migrate Access Bank, UBA, Lafarge Africa, Seplat to Premium Board

    NSE to migrate Access Bank, UBA, Lafarge Africa, Seplat to Premium Board

    The Nigerian Stock Exchange (NSE) on Thursday announced plans to migrate Access Bank, Lafarge Africa, Seplat and United Bank for Africa (UBA) Plc to its Premium Board.

    The NSE said in Lagos the four companies would be migrated to its Premium Board on April 16, sequel to their applications and meeting of its listing requirements for the board.

    The Premium Board is the listing segment for the elite group of issuers that meet the exchange’s most stringent corporate governance and listing standards.

    The board is a platform for showcasing companies that are leaders in their sectors.

    Premium Board features companies that adhere to international best practices on corporate governance and meet the Exchange’s highest standards of capitalisation and liquidity.

    It gives a company access to a global pool of investors who are focused on companies managed in conformity to the highest standards in their target markets.

    The NSE said Access Bank Plc, Lafarge Africa, Seplat and UBA had all passed the Corporate Governance Rating System (CGRS).

    It added that they had market capitalisation of N347.12 billion, N378.60 billion, N391.37 billion and N374.48 billion respectively.

    “They will join Dangote Cement, FBN Holdings Plc., and Zenith International Bank that were migrated to the Premium Board in 2015, bringing the total number of companies on the Board to seven,’’ NSE said in a statement.

    The statement quoted Mr Oscar Onyema, NSE Chief Executive Officer, as saying that the migration affirmed the strides listed companies were making toward meeting the highest standards of corporate governance.

    Onyema said the new companies had consistently demonstrated their inherent values to be globally competitive brands.

    “Companies on the board are already enjoying the highest levels of visibility and appeal to investors looking for large companies with highest standards of corporate governance.

    “From inception to date, the Premium Board Index continues to outperform the benchmark NSE ASI with the Premium Board recording a total return of 84.99 per cent versus the NSE ASI’s 41.79 per cent as at April 11.

    “The Premium Board’s performance continues to reinforce the sentiments of both foreign and domestic investors on the importance of corporate governance and sustainability,’’ he said.

    However, to be listed on the Premium Board of the NSE, the aspiring companies must attain a minimum market capitalisation of N200 billion as at the date of application, a minimum score of 70 per cent on the CGRS.

    The companies must maintain a minimum free float of 20 per cent of their issued share capital or a free float value equal to or above N40 billion, as well as meet other standard listing criteria.

    The NSE Premium Board and the associated Premium Board Index were launched on Aug. 25, 2015.