Seplat petroleum emerges as top gainer on NSE table

By NewsDesk,

On Nigerian Stock Exchange (NSE) table on Monday, Seplat Petroleum emerged as tops the gainers, with the market indicators resuming for the week with a growth of 0.14 per cent.

However,  All-Share Index appreciated by 59.07 points to close at 40,987.77 compared to 40,928.70 achieved on Friday, while the market capitalisation which opened at N14.784 trillion, increased by N21 billion or 0.21 per cent to close at N14.805 trillion.

From the table, a breakdown of the price movement chart showed that Seplat led the gainers’ table, improving by N27.60 to close at N725.90 per share.

Besides, Nestle followed with a gain of N25 to close at N1,410, while Unilever gained N2.50 to close at N54 per share.

GlaxosmithKline rose by N1.35 to close at N31.35, while Oando gained 65k kobo to close at N7.55 per share.

Conversely, Mobil Oil led the losers’ table, dropping by N10 to close at N190 per share.

Nigerian Breweries trailed with a loss of N4 to close at N126, while Presco shed N2 to close at N70 per share.

Access Bank declined by 25k to close at N11.20, while UAC Property was down by 22k to close at N2.58 per share.

NAN reports that Guaranty Trust Bank was the most active in volume terms, accounting for 37.61 million shares valued at N1.65 billion.

Japaul Oil and Maritime followed with an account of 21.35 million shares worth N10.31 million, while Fidelity Bank traded 13.23 million shares valued at N32.57 million.

Zenith International Bank exchanged 11.08 million shares worth N293.17 million, while United Bank for Africa sold 10.10 million shares valued at N109.54 million.

In all, the volume of shares traded rose by 15.17 per cent as investors bought and sold 192.49 million shares worth N3.13 billion transacted in 3,917 deals.

This was in contrast with 167.13 million shares valued at N2.04 billion exchanged by investors in 3,453 deals on Friday.

UBA, Lafarge, others ready for NSE’s Premium Board

By NewsDesk,

The Nigerian Stock Exchange (NSE) has disclosed that Access Bank Lafarge Africa, Seplat Petroleum Development Company, and United Bank for Africa Plc would be migrated to its Premium Board in coming week.

Through a statement issued by the NSE on Thursday, it explained that four companies qualified for migration after they met the Exchange’s listing requirements for the elite board and that theeir movement would occure coming Monday.

It said: “the four companies will be joining Dangote Cement Plc, FBN Holdings Plc, and Zenith International Bank Plc, who were migrated to the Premium Board in 2015.

According to the statement, from Monday, there will now be seven companies on the Board and 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 who are industry 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.

“The Board 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.

“Access Bank Plc, Lafarge Africa Plc, Seplat Petroleum Development Company Plc and United Bank for Africa Plc have all passed the Corporate Governance Rating System (CGRS) and have market capitalisation of N347.12bn, N378.60bn, N391.37bn and N374.48bn respectively,”, NSE said.

Commenting on the development, Chief Executive Officer, NSE, Oscar Onyema, OON said that the migration affirmed strides that the listed companies were making towards meeting the highest standards of corporate governance and underpins the robustness of our market.

He noted that the new companies have consistently demonstrated their inherent values to be globally competitive brands and we congratulate them on the attainment of this migration”.

“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% versus the NSE ASI’s 41.79% as at 11 April 2018. 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 added.

To be listed on the Premium Board of The NSE, the aspiring companies must attain a minimum market capitalization of N200bn as at the date of application, a minimum score of 70 per cent on the Corporate Governance Rating System (CGRS), and 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 25 August 2015.

Oando’s shares jump, hit N6.60k after regulator’s week suspension

By NewsDesk,

Despite regulator’s week challenges, Oando shares has rose from N5.90k to N6.60 on Thursday trading session at Nigerian bourse, the development of which was recorded after technical suspension was lifted fully by the Nigerian Stock Exchange.

From NSE’s post, about 6.4 million units of the shares of the Nigerian energy conglomerate were exchanged at a value of N42.7million.

The Chief Compliance Officer and Company Secretary, Oando, Ayotola Jagun, stated that the lifting of the technical suspension by the regulator was good news for the company and that it the development would restore and boast shareholders ad investors confidence in the market.

However, Security Exchange Commission (SEC) on Thursday disclosed that the forensic audit into  affairs of the company was currently underway by Deloitte Nigeria (Deloitte).

“To date the Company has been fully cooperative with both the SEC and Deloitte. In the spirit of goodwill, transparency and full disclosure, we will continue to cooperate with the SEC and its nominated parties in the discharge of their duties as the Capital Markets regulator during this exercise.

`”We are hopeful that the forensic audit will have limited impact on the day-to-day operations of the business and we look forward to a swift and smooth conclusion by the SEC.”

The said it will file its audited accounts for 2017 in May. It was approved by the company’s board on 10 April.

Controversy had dogged the return of the company’s shares from technical suspension, after the NSE created confusion, by first announcing the lifting of the suspension and later countermanding it, saying it got contradictory instruction from the Securities and Exchange Commission(SEC).

SEC had condemned the technical suspension on the shares, following petitions by some shareholders on share ownership dispute, governance issues and litigations. SEC also ordered a forensic audit of the company.

SEC on 9 April wrote NSE to allow the firm to return to the market, with most of the issues having been resolved.

In a statement SEC said that it directed the NSE to lift the technical suspension and allow market determination of the share price.

It said that the shares of Oando were placed on technical suspension in October 2017 upon the announcement of forensic audit which aimed to protect investors as a short term measure.

“Suspensions are typically intended for a short period to ensure market stability and thereafter lifted to allow market dictates.

However, the suspension of the shares of Oando plc was prolonged due to several litigations by Oando and other shareholders contesting the propriety of the forensic audit and technical suspension.

“All litigations have now been withdrawn, the independent forensic audit by Deloitte is ongoing and the primary result is expected”, said the statement.

NSE in initially lifting the suspension said it was based on a directive by the Securities and Exchange Commission (SEC). The bizarre however happened when midway into trading, NSE stopped trading in the stock, triggering confusion in the market and calls by traders for clarification.

The NSE on Wednesday night announced that trading would continue on Thursday, following consultation with SEC.

In a notice on its website, the Exchange said: “Subsequent to the lifting of the technical suspension, on 11 April 2018, the Exchange received another communication from the Commission to maintain the status quo prior to the Commission’s letter of 9 April 2018, i.e., the technical suspension of trading in Oando’s shares.

“In order to ensure compliance with the Commission’s further communication notwithstanding the fact that The Exchange’s systems cannot implement a technical suspension intraday, the Exchange suspended trading in Oando’s shares. The Exchange regrets any inconvenience that may have arisen due to the foregoing.

“In the overall interest of investors in Nigeria’s capital markets, and following consultation with the Commission please be advised that at the start of trading tomorrow, 12 April 2018, trading in Oando’s shares will resume without any impediment in price movement consistent with the NSE’s market structure.

“The Exchange shall endeavour to keep the investing public and the entire capital market ecosystem informed should there be any further developments on this matter”.

Fidelity, tax firm introduce customers enlighting program

By NewsDesk,

The Fidelity Bank and its  Andersen Tax Nigeria partner have introduced a sensetization program which the two partners hope would enlightening the bank’s customers, including its High Net worth Individual (HNIs) clientele on changing trends in Nigeria’s tax landscape.

Specifically, the program was said to have been designed in fucos to educate customers on the current tax system and its attendant impact on their businesses and financial wellbeing.

The Bank’s Divisional Head, Private Banking, Chioma Nwankwo, stated that In view of fast approaching Federal Government’s Voluntary Assets and Income Declaration Scheme (VAIDS) deadline and lack of preparedness of taxable Nigerian citizens, Fidelity decided to partner with Andersen Tax to enlighten customers on what is taxable and other related tax issues, including consequences of missing the deadline as stipulated by government”, said Nwankwo.

Speaking at a recent tax advisory forum organised by Fidelity Bank, Nwankwo pointed out that the Bank organised two streams for customers from branches within the Lagos and South-West region, whilst another session was held exclusively for the Bank’s HNIs.

On his part, Senior Manager, Private Clients and Family Wealth, Andersen Tax,  Israel Koledowo, advised customers to conduct tax health checks to ascertain their financial status and minimize potential risks associated with noncompliance with tax requirements. Whilst restating Federal Government’s resolve to clamp down on tax offenders, Koledowo however pointed out that tax health checks will assist the customers understand inherent gaps in tax compliance.

He urged customers with irregularities in tax compliance to take advantage of government’s VAIDS before the expiration of the deadline.

VAIDS is a time-limited opportunity for taxpayers to regularize their tax status relating to previous tax periods. In exchange for fully and honestly declaring previously undisclosed assets and income, tax payers will benefit from forgiveness of overdue interest and penalties, and the assurance that they will not face criminal prosecution for tax offences or be subject to tax investigations. VAIDS ushers in an opportunity to increase the nation’s general tax awareness and compliance.

Meanwhile, the Chief Executive Officer, Polysonic Nigeria Limited, Paulinus Ozonnagbo, commended the Fidelity Bank’s tax initiative, saying the forum was quite timely and very commendable.

“It is a clear indication that the Bank truly values its customers because many entrepreneurs and businessmen in the country do not understand tax laws and associated matters” he stated.

Stock market loses 441.16 points, Lafarge Africa tops losers table

Stock market index continues its downward trend with All-Share Index losing 441.16 points on Wednesday.

According to Agency reports, the index which open at 41,243.24 lost 441.16 points or 1.07 per cent to close at 40,802.08 after major equities on the floor ends the market with a loss.

Lafarge Africa recorded the highest loss, closes at N46.40 per share, declining by N2.30. Followed by Dangote Cement with a loss of N2 to close at N253, while Total declined by N1.70 to close at N238.30 per share.

Guaranty Trust Bank dropped by 85k to close at N42.75, while Ecobank Transnational was down by 75k to close at N16.35 per share.

GlaxosmithKline tops the gainers’ table, raking in N3.10 to close at N34 per share. Followed by Unilever, which closes at N55 with a gain of N2.55, while Stanbic IBTC gained N1.70 to close at N48 per share.

Nestle also enjoy an increase to close at N1,340, while PZ Industries added N1 to close at N23 per share.

The volume of shares traded rose by 51.66 per cent as investors bought and selling 535.19 million shares valued at N3.66 billion in 4,717 deals, the drop in the market index not reflecting in the volume traded.

A contrast with 352.89 million shares worth N4.14 billion transacted in 4,807 deals on Tuesday.

Nigeria Stock Exchange recorded Champion Breweries as the most active stock for the day, exchanging 153.90 million shares valued at N397.08 million.

FBN Holdings traded 28.51 million shares worth N346.78 million, while Lasaco Insurance exchanged 23.98 million shares valued at N8.15 million.

 

Analysts attributes the trend in spite of impressive 2017 corporate earnings to weak inflow of funds into the market.

InvestData Ltd Chief Operating Officer, Ambrose Omordion, discloses that major market players had continued to take profit.

He also explained that pricing had been factored in earnings numbers before now, given that stock market was a discounting machine that prices the future into the present.

He also pointed out that outcome of the Monetary Policy Committee (MPC) meeting slated for April 3 and 4 was another factor affecting the market, as investors await outcome of the two-day meeting.

Omordion said that investors had developed “wait and see attitude’’ as the outcome of the meeting  would point direction of the interest rate and economy in general.

Stock table nose dives, 0.21% drop on Monday

By NewsDesk,

Stock opening new week on negativeness note, the Nigerian Stock Exchange (NSE) has declated a downward trend with investors’ net worth dropping by 0.21 per cent linked to unstable economic environment.

As studied,  All-Share Index lost 90 points or 0.21 per cent to close at 41,845.90 compared with 41,935.90 achieved on Friday.

Similarly, the market capitalisation, which opened at N15.001 trillion, shed N32 billion or 0.21 per cent to close at N14.969 trillion following price depreciation.

It will be recalled that the market had maintained a negative posture in spite of improved audited results released by some companies.

On the market performance, an economist, Sheriffdeen Tella, a Professor of Economics at Olabisi Onabanjo University, Ago-Iwoye, Ogun, attributed the development to unstable economic environment and that non-passage of 2018 budget by National Assembly and absence of monetary policy to fine tune the economy was affecting stability in the stock market.

According to him, investors are continued to be risk averse and foreign investors are unsure of the macro-economic direction, while the local investors too were affected by absence of information asymmetry in the market.

Tella said that the bearish trend would likely dominate the market this week, unless approval was giving for membership of the Monetary Policy Committee and a greater commitment to the passage of 2018 budget.

Meanwhile, breakdown of the price movement table indicated that Nigerian Breweries topped the losers’ chart, declining by N4.50 to close at N128.50 per share, with Cadbury trailed with a loss of N1.65 to close at N15.45, while Stanbic IBTC lost N1 to close at N49 per share.

Ecobank Transnational Incorporated depreciated by 95k to close at N18.85, while NASCON Allied Industries was down by 65k to close at N19.35 per share.

On the other hand, Dangote Cement led the gainers’ table, increasing by N1 to close at N265 per share.

PZ followed with a gain of 55k to close at N23.55, while Zenith Bank appreciated by 40k to close at N28 per share.

Guaranty Trust Bank added 40k to close at N28, while C &I Leasing advanced by 18k to close at N1.99 per share.

Also, the volume of shares traded dropped by 23.19 per cent as investors bought and sold 327.76 million shares worth N5.26 billion in 5,366 deals.

This was against the 426.73 million shares valued at N7.09 billion exchanged in 5,191 deals on Friday.

Zenith Bank was the most active stock, exchanging 128.97 million shares worth N3.49 billion.

FBN Holdings followed with an account of 23.78 million shares valued at N276.31 million, while Fidelity Bank traded 16.68 million shares worth N37.99 million.

Access Bank sold 11.69 million shares valued at N136.81 million, while Transcorp exchanged 11.47 million shares worth N19.18 million.

CBM pumps $210M into Forex, Naira stands N360 to dollar

By NewsDesk,

Despite weeks stability recorded by Central Bank of Nigeria (CBN), upon forex, the governing body has pumped 210 million dollars into inter-bank Foreign Exchange Market, in its bid to sustain liquidity in  foreign exchange market.

It said that the bank offered 100 million dollars to authorised dealers in the wholesale segment of the market, while the Small and Medium Enterprises segment received 55 million dollars.

Through a statement issued on Monday by the bank’s Acting Director, Corporate Communications Department, CBN, Isaac Okoroafor, it was optimistic that the move would ensure the continuous availability of foreign exchange to customers.

He disclosed that customers requiring foreign exchange for invisibles such as tuition fees, medical payments and Basic Travel Allowance (BTA), among others, were also allocated 55 million dollars.

Okoroafor reassured the public that the bank would continue to intervene in the interbank foreign exchange market in line with its desire to sustain liquidity in the market and maintain stability.

According to him, steps taken by the apex bank in the management of foreign exchange was paying off, as reflected by reduction in the country’s import bills and accretion to its foreign reserves.

Meanwhile, CBN had recently injected 210 million dollars into the Wholesale segment of the foreign exchange market and with development, the Naira continued its stability in the foreign exchange market, exchanging at an average of N360 to a dollar in the Bureau de Change segment of the market.

Stats reveals how banks lost 2 million customers between 2016, 2017

By NewsDesk,

Upon Central Bank of Nigeria’s (CBN) various move to have financial inclusion, a statistic  from Nigeria Inter-Bank Settlement System (NIBSS) has raveled how Nigerian banks lost over 2 million customers between 2016 and 2017.

It also indicated that number of active bank accounts also reduced by 1.5 million, dropping from 65 million to 63.5 million.

The statistics obtained by the News Agency of Nigeria (NAN) from the NIBSS website on Sunday, showed that the total number of bank customers dropped from 61 million in 2016 to 59 million in 2017.

However, the report as eeleased over the weekend, explained that banking sector, however, made great strides in linking customers’ account using the Bank Verification Number (BVN).The report showed that linked BVN accounts grew from 26 million in 2016, to 41.3 million in 2017.

According to a banking industry source, the reduction in banking customers is not unconnected to the Federal Government’s declaration to fight against corruption.

“When Buhari assumed office, many people abandoned their accounts, especially civil servants because of fear of investigation.

“While some out rightly closed down their accounts, others opted for gradual withdrawal so as not to raise alarm,’’ the source said.

The source, who works at one of the top five banks in the country, blamed the BVN for the low patronage of banking products, especially in the rural areas, where awareness was already very low.

A bank customer, Mr Olaitan Alagbe told NAN that she closed some of her accounts due to unnecessary and illegal charges by banks.

“First of all, the interest rate is next to nothing, so there is little reason to keep your money at the bank when you can turn it over doing other businesses,” she said.

Another customer, who preferred to remain anonymous said he opened several accounts during the Ponzi scheme boom in the country, but was forced to abandon them after the schemes crashed in late 2016 and early 2017.

“The reduction may not necessarily be a bad thing. For example, many people opened accounts using different variations of their names.

“A person bearing Musa Salisu Mohammed, may have other accounts as Salisu Mohammed or Musa Salisu.

“So with the introduction of BVN, such customers were forced to regularise their names, however, some opted to close down their accounts, which resulted in the reduction of active bank accounts and customers,’’ the source said.

The CBN source was, however, optimistic that the financial inclusion strategy of the bank would succeed in bringing in more people into the formal banking system.

The Financial Inclusion strategy aims to ensure that major bulk of the money in the economy remains within the banking sector.

A major challenge in the financial inclusion process is how to ensure that the poor rural dwellers are carried along considering the lack of financial sophistication among this segment.

The CBN, Money Deposit Banks, Micro Finance Banks and other stakeholders, were cure implementing different policies designed to enhance financial inclusion in the country.

Insurance commission takes over distressed firm, appoints interim board members

By NewsDesk, 

The National Insurance Commission (NAICOM) has took over management of Unic Insurance Plc for reposition the company for better performance, the action which was seen necessary for insurance sector to prevent a catastrophic that could have befall its stakeholders.

However, the NAICOM’s spokesman, Rasaaq Salami,  that the takeover became imperative to rescue the company from distress and that commission had subsequently appointed an interim board to manage the affairs of Unic Insurance Plc for the next six months.

Briefing newsmen after the action on Friday, Salami disclosed that members of interim board included Samuel Ordu, who would be serving as chairman,  Theophilus Eke, as Managing Director, Ifeyinwa Momah and Nicholas Shaiyen, as member of the management.

“The commission gave Ordu and his team six months to do a forensic audit on the financial position.

“Forensic audit would be carried out on the corporate governance failures observed in the course of reviewing the financial statement of the company,” Salami said.

SEC continues online dividend registration, may ends process by March 31

 By NewsDesk, 

Shareholders of various corporate organizations may still for more week have privileges to registered on  Securities and Exchange Commission (SEC) free e-dividend registration which was earlier declared would be ending, after the commission unofficially yet announced extended deadline to March 31.

The Guild had gathered through a senior management staff of the commission, who pleaded not to be mentioned, that the deadline was extended in principle for the third time for operators to clear their e-dividend backlogs.

However, as reported, e-dividend refers to online payment of dividends to investors rather than through post and that advantage of e-dividend was that it allows accrued dividends to be credited to an investor’s bank account directly.

The source said that the aim was to stem rising problem of unclaimed dividends in the capital market and main reason for the extension was to clear the backlogs and to work out details of how the parties involved in the exercise would get their share.

He disclosed that parties involved in exercise were registrars andNigeria Interbank Settlement System, and that appointed banks were currently working out sharing formula for registration fee.

He hinted that the commission would not come publicly to announce another extension, noting that no investor would be charged for delay in the registration until April 1.

The source explained that low investors’ response to the exercise contributed to the commission’s decision to give room for enrollment of more investors.

SEC in June, 2017 extended the underwriting cost of investors’ e-dividend registration to Dec. 31, 2017 against the earlier deadline of June 30, 2017.

It also on Jan. 18 extended the deadline to Feb. 28, 2018, to encourage more shareholders’ participation in the scheme.