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Tag: NSE

  • Confusion trails lifting of Oando technical suspension

    Investors in the Nigerian Stock Exchange (NSE) were thrown into confusion as hours after the six-month old technical suspension the Exchange placed on the shares of Oando Plc was lifted and later reversed.

    The NSE had disclosed in a notice last Tuesday, that the decision to lift the technical suspension was based on a request by the SEC. The notice signed by Director, Regulation, NSE, Tinuade T. Awe, stated: “We refer to all prior communication regarding the technical suspension of trading in the shares of Oando Plc (Oando) implemented on the directive of the Securities and Exchange Commission (Commission) on 23 October 2017.

    “Please be informed that further to a 9 April 2018 directive of the Commission, The Exchange lifted the technical suspension placed on Oando’s shares after the close of trading today, 10 April 2018.

    “Consequently, there will be no impediment to price movement in the shares of Oando” But the NSE rescinded its decision, during the trading hours, stating that the shares of the company listed on both the Nigerian and Johannesburg Exchanges, re-mained on technical suspension.

    For the less than eight hours it traded following the lifting of the technical suspension, shares of Oando gained 10 points on the NSE, trading at N6.60 as against N5.99 before the lifting of the suspension. It will be recalled that the NSE on 18th October 2017 announced that it had placed the shares of Oando Plc, on ‘full suspension for 48 hours.’

    Thereafter, on 23rd October 2017, the NSE further announced that it had placed the shares of the company on ‘Technical Suspension’. The NSE by a letter dated 18th October 2017 informed management of Oando Plc that the suspension of the company’s shares by the NSE was done in compliance with a directive issued to it by the SEC. Efforts to get the reasons by the reversal proved abortive as NSE and SEC Corportate Communications Officers neither picked their calls nir responded to inquiries.

    Only last Tuesday, a group of Concerned Shareholders of Oando Plc had called on Muhammadu Buhari; Vice President Yemi Osinbajo; Senate President Bukola Saraki; Speaker, House of Representatives, Hon. Yakubu Dogara and other well-meaning Nigerians to prevail on the NSE and SEC to lift the technical suspension placed on the oil firm’s shares.

  • Nigerian Stock Exchange Market loses N370bn on Tuesday

    The Nigerian Stock Exchange (NSE) on Tuesday sustained seven-day falling streak with the market capitalisation shedding N370 billion in one day.

    The market capitalisation lost N370 billion or 2.41 per cent to close at N14.967 trillion against N15.337 trillion achieved on Monday.

    Similarly, the All-Share Index which opened at 42,737.89 lost 1,029.74 points or 2.41 per cent to close at 41,708.15 following huge losses by some highly capitalised stocks.

    Some financial experts in an interview with NAN attributed the persistent loss to decline in global stock markets, especially in the U.S. and Europe, contributed to the bearish trend in the market.

    Dr Uche Uwaleke, the Head of Banking and Finance Department, Nasarawa State University Keffi, said investors reactions to the global stock market trend led to sell pressure on the exchange.

    Uwaleke said drop in crude oil price following increased supply and profit taking by investors in respect of over-priced stocks, particularly those of tier 11 banks contributed to the development.

    He said relative uptick in returns from money market securities led to movement of funds from capital market to the money market securities.

    Prof. Sheriffdeen Tella, Professor of Economics, Olabisi Onabanjo University Ago-Iwoye, Ogun said the bearish trend was expected because the stock market usually reacted to economic conditions.

    “This is New Year and the budget is yet to be passed, so money is not yet being released and people need to buy lots of things.

    “Fortunately, the market was bullish recently such that the values of shares went up making it possible for profit taking,” he said.

    Tella said the bearish trend would bring new opportunities for new investors as well as old ones who would want to adjust their financial portfolio.

    He said that these investors would go the market shortly to take advantage of the lower prices of shares.

    “We will start seeing bullish activities in the market again.

    “It is the nature of the market to facilitate between bullish and bearish swings as dictated by market forces,” he said.

    An analysis of the price movement showed that Nestle recorded the highest loss depreciating by N40 to close at N1, 320 per share.

    Dangote Cement trailed with a loss of N13.30 to close at N258.70, while Nigerian Breweries dipped N5.20 to close at N127.80 per share.

    Guinness was down by N5 to close at N105, while International Breweries depreciated by N2.50 to close at N57.50 per share.

    On the other hand, Lafarge Afeica led the gainers’ table growing by N1 to close at N51 per share.

    Zenith International Bank followed with a gain of 60k to close at N30, while Berger Paint gained 45k to close at N9.45 per share.

    Access Bank increased by 45k to close at N12, while Dangote Sugar Refinery advanced by 30k to close at N21 per share.

    The banking sub-sector was the toast of investors with Diamond Bank emerging the most traded, trading 67.69 million shares worth N181.14 million.

    FCMB Group followed with an account of 49.22 million shares valued at N126.18 million, while Fidelity Bank sold 42.78 million shares worth N129.55 million.

    United Bank for Africa traded 39.16 million shares valued at N437.59 million, while FBN Holdings exchanged 32.59 million shares worth N358.64 million.

    In all, the volume of shares traded closed lower with an exchange of 470.52 million shares valued at N3.68 billion transacted in 6,309 deals.

    This was against the 517.44 million shares worth N5.19 billion traded in 5,852 deals on Monday.

  • NSE’s world third best performing Exchange ranking strengthens bi-lateral ties with U.S.

    NSE’s world third best performing Exchange ranking strengthens bi-lateral ties with U.S.

    • Nigeria’s stocks among world’s best performers in 4 months, says Bloomberg

    Nigerian Stock Exchange’s (NSE) ranking as the third best performing Exchange in the world for 2017 has continued to pave way for more international recognition and bi-lateral ties for the country, as the United States (U.S.) Consul General, F. John Bray, on Monday described Nigeria as one of its most important partners in Africa.

    And Nigeria’s stocks have been among the world’s best performers in the past four months, and foreign investors are a big reason for that, Bloomberg reported on Monday. According to the News Agency of Nigeria (NAN), the New York-based financial software, data, and media company, said net foreign inflows to Nigerian equities totaled N337 billion ($940 million) last year, the first time flows have been positive since at least 2013.

    Bray, while addressing stockbrokers during the ‘Bell Ringing Ceremony’ on the floor of the NSE yesterday affirmed that the agreement was a clear message that the US and the private sector is committed to supporting Nigeria as it continues to find new avenues of economic growth and development.

    “I know that last year was a very successful year as the NSE was ranked amongst the top five performers in 2017; projections indicate that 2018 will be an equally successful year. Let’s hope that’s the case, for the growth of the NSE means more private capital in the local market for business expansion and new business start-ups.

    “I am here today to express the U.S. government’s deep commitment to Nigeria’s private sector and economic growth. The more Nigeria’s economy grows, the better it is for both Nigerian and American businesses.‘’ He said the U.S. government maintains a limited number of BNC relationships with nations, as it demonstrates a high degree of friendship, trust, and cooperation, rating Nigeria as top among such nation.

    Furthermore, he stressed the need for exchanges to operate in an open and transparent manner, adding that such financial exchanges are an example of a society’s broader commitment to the rule of law and sanctity of contracts.

    Already, U.S., during the Bi-National Commission (BNC) meetings in Abuja last November had underscored the need to strengthen and revitalise the BNC to advance both nations overall relationship.Bloomberg said December 2017 was the best month since it started compiling data at the beginning of 2014, with net inflows of N140 billion, signaling a switch in sentiment toward equities in Africa’s biggest oil producer.

    The finance media company said foreign investors were heavy buyers of Nigerian shares last year.The world-beating rally in Nigerian stocks might not be over yet, noting that the main equity index in Africa’s biggest economy had surged 12 per cent in the first two weeks this year in dollar terms, the most among 96 major bourses tracked by Bloomberg, pushing it to the highest level since 2008.

    It said the advance would probably be sustained thanks to rising prices for oil, Nigeria’s main export, and as investors look to increase their holdings of what remained among the cheapest stocks in Africa.

    “While the central bank eased some capital controls last year and opened a trading window for foreign portfolio investors, it continues to operate several exchange rates.”It warned, however, that Nigeria’s multiple exchange rate system was likely to remain a key drag, keeping long-term investors on the side lines.

     

     

  • NSE market indicators drop further by 1.16 per cent

    NSE market indicators drop further by 1.16 per cent

    The Nigerian Stock Exchange ( NSE ) market indicators on Tuesday dropped further by 1.16 per cent due to market volatility caused by profit-taking.

    Market capitalisation shed N187 billion or 1.16 per cent to close at N15.902 trillion compared with N16.089 trillion on Monday.

    The All-Share Index lost 522.68 points or 1.16 per cent to close at 44,389.85 against 44,912.53 achieved on Monday.

    Mr Ambrose Omordion, the Chief Operating Officer, InvestData Ltd., attributed the development to profit taking embarked by some investors ahead of 2017 earnings season.

    Omordion said some investors were taking adavantage of 18 per cent growth posted by the market in the past three weeks.

    Mobil Oil recorded the highest loss, declining by N7 to close at N209 per share.

    Dangote Cement trailed with a loss of N4 to close at N269, while Julius Berger was down by N1.60 to close N30.40 per share.

    Guaranty Trust Bank shed N1.51 to close at N52, while Zenith International Bank dropped by 75k to close at N32 per share.

    On the other hand, Seplat topped the gainers’ table, increasing by N9.99 to close at N685 per share.

    Unilever followed with a gain of N2.21 to close at N46.41, while Nigerian Breweries gained N2 to close at N145 per share.

    Presco appreciated by N1.31 to close at N70, while Nestle added N1.11 to close at N1,471.11 per share.

    A breakdown of the activity chart showed that Skye Bank was the toast of investors trading 150.37 million shares worth N226.77 million.

    FBN Holdings followed with an account of 104.17 million shares valued at N1.36 billion, while Wema Bank traded 64.09 million shares worth N87.36 million.

    Diamond Bank sold 44.39 million shares valued at N144.80 million, while Transcorp exchanged 43.39 million shares worth N94.28 million.

    In all, the volume of shares traded closed lower with an exchange of 737.86 million shares valued at N7.67 billion traded in 8,927 deals.

    This was against the 4.44 billion shares worth N15.93 billion shares exchanged in 8,572 deals on Monday.

  • NSE commences e-flow of information from companies to stock market

    As part of strategic efforts to improve operations in 2018, the Nigerian Stock Exchange (NSE) has launched an electronic flow mechanism in its trading engine.

    The e-flow as expected will allow companies to send their corporate earnings’ report and other vital information directly to the search engine on a real time basis without encountering any bottle necks as obtained before now.

    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 TheNewsGuru.com over 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.

  • Half year earnings: NSE All-Share hits 37,000 mark

    Half year earnings: NSE All-Share hits 37,000 mark

    Investors on the Nigerian Stock Exchange (NSE) on Thursday continued to react positively to half year earnings season resulting in further growth in market indicators.

    The News Agency of Nigeria (NAN) reports that the All-Share Index crossed the 37,000 mark to close at 37,245.17 as against 36,740. 77 recorded on Wednesday, due to gains by some blue chip.

    NAN reports that the index inched 504.40 points or 1.37 per cent.

    Similarly, the market capitalisation which opened at N12.662 trillion, rose by N174 billion or 1.37 per cent to close at N12.836 trillion.

    Market analsysts atrributed the hike to investors response to positive half year earnings season.

    They said that the market would likely achieve the position recorded in 2014 going by the earnings released so far.

    They, however, said that investors should be careful to avoid any form of greed, especially in equities that had returned cash dividends.

    Nestle led the gainers’ table during the day, gaining N45.50 to close at N955.50 per share.

    Nigerian Breweries followed with a gain of N7.87 to close at N173.77, while Okomu Oil increased by N3.54 to close at N74.41 per share.

    Conoil appreciated by N3.36 to close at N36.40 and Betaglass grew by N2.87 to close at N60.34 per share.

    On the other hand, Cadbury recorded the highest loss for the day, dropping by N1.20 to close at N11.20 per share.

    Lafarge Africa trailed with a loss of N1.01 to close at N60 and Oando declined by 40k to close at N8 per share.

    UACN shed 30k to close at N16.70 and Access Bank depreciated by 25k to close at N10.30 per share.

    Also, the volume of shares traded rose by 61.87 per cent as investors bought and sold 542.80 million shares valued at N8.01 billion transacted in 5,939 deals.

    This was against the 335.34 million shares worth N4.64 billion achieved in 5,385 deals on Wednesday.

    United Bank for Africa (UBA) for the third consecutive day remained the most traded in volume terms, accounting for 117.27 million shares worth N1.19 billion.

    Zenith International Bank traded 63.04 million shares valued at N1.61 billion and Diamond Bank exchanged 52.16 million shares worth N66.64 million.

    FBN Holdings transacted 51.54 million shares valued at N308.24 million, while FCMB Group traded 30.82 million shares worth N40.07 million. (NAN)

  • UBA offloads 2.09bn shares on NSE to lead activity chart

    UBA offloads 2.09bn shares on NSE to lead activity chart

    The United Bank for Africa (UBA) on Tuesday drove activity on the Nigerian Stock Exchange (NSE) with a turnover of 2.09 billion shares valued at N19.76 billion.

    Mr Ambrose Omordion, the Chief Operating Officer, InvestData Ltd., attributed the activity in UBA to part of the management’s plan to reduce the bank’s issued shares in line with the shareholders’ mandate.

    Omordion said that the bank had a scheme for members of staff and the shares in the scheme were in excess of two billion ordinary shares which were offloaded.

    He said that the transaction would boost both the bank’s earnings and dividend payout going forward.

    TheNewsGuru.com reports that the volume of shares traded closed higher due to huge activity posted by UBA.

    Consequently, a total of 2.40 billion shares worth N21. 61 billion were transacted in 3,715 deals against 322.81 million shares valued at N2.73 billion achieved in 3,830 deals on Monday.

    Continental Reinsurance came second with an exchange of 174.42 million shares worth N219.77 million, while FBN Holdings sold 35.51 million shares valued at N208.48 million.

    Oando traded 13.59 million shares worth N89.96 million and Skye Bank accounted for 9.31 million shares valued at N5.59 million.

    Also, the NSE market indices appreciated further with the All-Share Index growing by 135.18 points or 0.41 per cent to close at 33,436.61 against 33,301.43 recorded on Monday.

    Similarly, the market capitalisation rose by N46 billion or 0.40 per cent to close at N11.523 trillion in contrast with N11.477 trillion posted on Monday, due to price gains.

    Nestle led the gainers’ table during the day, gaining N16 to close at N920 per share.

    Beta Glass followed with a gain of N2.70 to close at N57.47 and Okomu Oil appreciated by N2.62 to close at N63 per share.

    Unilever gained N1.81 to close at N38.19, while Nigerian Breweries appreciated by N1.70 to close at N159.11 per share.

    On the other hand, Forte Oil recorded the highest price loss to lead the laggards’ table with a loss of N2.54 to close at N57.96 per share.

    Cadbury trailed with a loss of 56k to close at N12 and Zenith Bank shed 42k to close at N21.53 per share.

    Custodian and Allied Insurance declined by 17k to close at N3.40, while May and Baker was down by 14k to close at N2.65 per share.

     

    NAN

  • Building collapse: NSE blames agencies, contractors

    Building collapse: NSE blames agencies, contractors

    The Imo chapter of Nigerian Society of Engineers (NSE) has blamed regulatory agencies and Owerri Capital Development Agency (OCDA) for incessant building collapse in the state.

    The News Agency of Nigeria (NAN) recalls that two three storey buildings under construction collapsed at Obinze and Umuguma, both in Owerri West Local Government Area, on Tuesday and Wednesday respectively.

    The Chairman of NSE in the state, Mr Emeka Ugoanyawu, said shortly after visiting the scenes, blamed contractors for not engaging professional engineers in most building constructions.

    Ugoanyawu said that people in the state were known for engaging non-professionals for building projects.

    He said NSE would probe incessant building collapse in the state and urged security agencies to ensure the immediate clearing of the rubble at the sites to either recover corpses or save lives.

    The chairman said that NSE would sanction any engineer directly involved in any of the two buildings.

    Also, the NSE Secretary, Mr Ebere Ononiwu, blamed OCDA for not supervising buildings in the state.

    He said “OCDA is a government organisation vested with the powers to approve and regulate building but they have fallen short of the standard.

    “How can OCDA approve a building for construction but will never supervise the building until it is completed?”

    Ononiwu also accused the agency of not having qualified engineers to conduct building inspections and that the gap had given rise to quackery in the industry.

    “This is the major reason why quacks have taken over the job of professional engineers and if the situation is not urgently addressed, everybody will be exposed to serious danger,” he said.

    A member of the International Federation of Consultant Engineers, Mr Emmanuel Obiakor, said there was no guarantee for any building handled by a quack.

    “I can tell you that no professional engineer has a stake in these two collapsed buildings,” Obiakor said.

    He said that the popular practice in Imo was engaging quacks and non-professionals for building projects, which was counterproductive.

    “It is cheaper for clients to consult professionals to handle their job than using quacks,” Obiakor said.

     

     

    NAN

  • Airtel CEO identify conditions for telcos to list on NSE

    Airtel CEO identify conditions for telcos to list on NSE

    Managing Director and Chief Executive Officer of Airtel Nigeria, Mr. Segun Ogunsanya, has stressed that telecom firms in Nigeria can successfully list on the Nigerian Stock Exchange and contribute significantly to the socio-economic development of the country, barring challenges confronting operators in the sector.

    According to him, an enabling business environment, policies that promote ease of doing business and market forces in line with best practices are key factors that can encourage telcos to list on the Nigerian Stock Exchange.

    Mr. Ogunsanya made this submission while delivering his presentation entitled “Creating an Enabling Environment for Public Listing of the Economy’s Commanding Heights: The Case for Telecoms Sector“ at the 2017 Chartered Institute of Stockbrokers (CIS) Annual National Workshop held in Abuja on Tuesday, July 4, 2017.

    Speaking at the occasion, Mr. Ogunsanya noted that following the liberalisation of the telecoms sector in 2001, the nation has benefitted in terms of employment creation, attraction of foreign direct investments and social-economic development.

    He said: “The sector currently accounts for 10 percent of the nation’s Gross Domestic Product (GDP) and therefore makes it a critical national infrastructure. In addition, connectivity among Nigerians has been enhanced with the 145,350,702 active lines as at May 2017, investments in the sector as at Q1 2017 stood at $68billion with FDI contribution amounting to $35billion, while over 10,000 direct jobs and 1.3million indirect jobs have been created.”

    He stressed that telcos are committed to providing qualitative world class telecommunications services and in turn contribute to the socio-economic development of the country. However, operators are still facing challenges which stifle growth and inhibit services delivery.

    Mr. Ogunsanya, therefore, urged government to address lingering industry issues such as multiple taxation, prohibitive right-of-way fees, broadband spectrum pricing/ availability among others.

    Speaking further, the Airtel CEO noted that high interest rates are a major draw-back on use of debt financing, the fluctuation of foreign exchange rate has adversely impacted use of debt financing, while adverse market conditions occasioned by recession have adversely impacted viability of public equity alternatives.

    The CIS Annual Workshop themed “Transition from Recession to Global Economic Power: A Working Template for Nigeria” was a convergence of stakeholders in the nation’s financial services sector.

    Chief Executive Officer of the Nigerian Stock Exchange (NSE), Mr. Oscar Onyema; Director General, Securities and Exchange Commission (SEC), Mallam Mounir Gwarzo, Minister of Finance, Hon. Kemi Adeosun were among top government functionaries, captains of industry and dignitaries that attended the event.

    The workshop was organised in conjunction with the Nigerian Capital Market Institute, a training affiliate of the Securities and Exchange Commission (SEC), the apex regulator of the Nigerian Capital Market.

     

  • MTN Nigeria to go ahead with IPO this year

    Subject to market conditions, South Africa’s telecoms firm, MTN Group will go ahead with its Initial Public Offering (IPO) listing its Nigerian subsidiary, MTN Nigeria in the Nigerian Stock Exchange (NSE) this year.

    Bloomberg had previously reported the Executive Chairman of MTN Group, Phuthuma Nhleko, as saying the company may delay the planned listing until 2018 in order to resolve a regulatory dispute, but a recent PricewaterhouseCoopers (PwC) report indicates the IPO plan might work out this year.

    While MTN operates in 22 countries in Africa and the Middle East with more than 200 million users, MTN Nigeria is the Group’s largest and most profitable subsidiary. It is the market leader in fixed and mobile broadband sectors with over 60 million users.

    The firm is battling with a fine of $5.2 billion that was reduced to N330 billion.

    After the fine was announced in 2015, MTN shares lost its value in Johannesburg, and analysts have said the decision of MTN to list in the NSE was part of agreement the company reached with the Federal Government as a condition for slashing the fine imposed on it by the Nigeria Communications Commission (NCC).

    But Nhleko stated at an annual meeting of the World Economic Forum in Davos, Switzerland that the firm has ever wanted to list in the NSE.

    “We’ve always intended to list – we have reaffirmed that with the government. Clearly, we can only list when the conditions are conducive,” he said.

    >>Trending: MTN pulls out of Who Wants to be a Millionaire TV show

    TheNewsGuru recalls the fine was imposed on MTN after it was found to have breached the ‘know-your-customer’ rules set by the NCC, and Dino Melaye, the Senator representing Kogi West, had accused the mobile operator of illegally repatriating $14 billion out of Nigeria over ten years.

    The PwC report said Nigeria’s economy slowed sharply in 2015 and 2016, primarily due to global fall in crude oil prices but is forecast to return to slow growth in 2017; and Telecoms operators in Nigeria have been under pressure to list on the exchange to widen equity ownership and tame what many consider as undue profit repatriation that is detrimental to the Nigerian economy.

    Recently, MTN paid N19 billion ($60 million) for a 2.6 GHz licence auctioned by the NCC in June 2016. It was the only company, which secured approval to take part in the auction. MTN will use the frequencies to expand its LTE network in Nigeria.

    MTN, if listed, would become the first major national telecoms company whose shares would be traded on the NSE.