CMC seeks dematerialisation of unlisted firms’ shares

The Capital Market Committee is advocating the dematerialisation of shares of unlisted companies, following the successful dematerialisation of shares of listed companies in the capital market.

The acting Director-General, Securities and Exchange Commission, Ms Mary Uduk, during a press briefing on the outcome of the CMC meeting on Friday, said the dematerialisation of shares of unlisted companies was necessary to further deepen the market.

Uduk said the extension of the exercise to shares of unlisted public companies would enhance liquidity and ease market processes, enhance market dynamism and decision-making in securities investment, among others.

Dematerialisation is the process of converting physical shares into electronic format. An investor is expected to surrender physical shares and, in turn, get electronic shares in a demat account.

Uduk said, “The advantages of dematerialisation are many; it enables the investor to trade at any time without necessarily passing through the bottlenecks of verifying the share certificates because the shares are now domiciled with the Central Securities Clearing System.

“An investor can give a mandate to a broker at any time and the broker accesses the Exchange that same day and trades for the investor.”

She said the CMC also wanted the commission to take strong actions against company secretaries that aid the trading of shares of unlisted public companies outside a SEC-recognised platform as required by the law.

She added that the market had been informed of some successes recorded in the regularisation of multiple share subscription.

Uduk disclosed that Nigerian investors in the Diaspora had been able to consolidate their shareholding accounts and that several local investors with numerous accounts had also been able to consolidate their investments.

SEC To Issue Guidelines On FinTech Investments

Mary Uduk
Mary Uduk

By Udo ONYEKA
The Securities and Exchange Commission, SEC, would soon come up with
regulatory guidelines to oversee activities investors of financial
technology (FinTech) products in the nation’s capital market.
Acting Director General of the SEC, Ms. Mary Uduk who gave the hint at
a Lecture in Abuja, noted that the guidelines  was part of the
commission’s effort to move the nation’s bourse to a technology-driven
capital market.
According to her SEC was interested in investments in the capital
market, especially given the spate of digitalization of business and
investment processes.
“If we will regulate this market and understand what is happening we
need our staff to understand the rudiments of FinTech. Very soon the
whole world will move to technology for regulation. Other
jurisdictions have already gone far into it with some of them already
amending their rules in that direction.
“The International Organization of Securities Commissions (IOSCO) is
on it and there is a lot on it already all over the world and we can’t
be left behind. We are very much interested in some of the most active
areas of FinTech innovation like block chain technology, crypto
currencies and how they affect investors” Uduk said.
The acting DG recalled that during the last Capital Market Committee
meeting in Lagos, the Committee agreed to set CMC to set up a
Committee to draw a FinTech Adoption roadmap for the Capital Market.
she said there was the need for the Capital Market to take advantage
of the FinTech offerings to move the Capital Market forwar, “adding
that  there was  also the need to emphasized on capacity building,
knowledge sharing, advocacy and collaboration with relevant entities.
“The Capital Market needs to create an enabling environment that is
attractive enough for FinTechs to innovate as the Market should engage
actively with the new trend in technology and provide the adequate
regulatory framework for proper adoption of suitable technology and
that is one of the reasons why we have invited FinTech here today for
this presentation”, she said.
Executive Director Information Technology and Operations of Access
Bank as well as Vice President of FinTech Association of Nigeria
(FinTechNGR) Mr. Ade Bajomo in his presentation said there was the
need for regulators to understand what FinTech is all about as that is
where the world is moving to now.
He said regulators need to know what to regulate, how to regulate it,
protect investors as well as drive commerce as if they don’t regulate
this properly, it could hinder the growth of Africa.
“We have to get into the digital agility and understand that the old
way of doing things will not work in this digital age. Whether we like
it or not, people will adopt digitalization, it is just inevitable. It
is the simplicity that is driving these entire reforms. Our markets
have to reposition to provide the proper regulations to facilitate
entry and exit by these people who will lead to raising of funds,
bringing of new products and driving the FinTech revolution.
“There exists over 5,000 FinTech companies globally. Startups are also
springing up an increasing pace. FinTech hubs are proliferating
globally in tandem with ongoing disruption in financial services.
These hubs are all vying to become established FinTech centres in
their own right, and want to contribute to the broader financial
services ecosystem of the future”, Bajomo said.
According to Bajomo SEC has shown a very good example by showing the
readiness to want to participate in this industry and help it grow
with relevant regulatory framework. That is a good step that will help
both the industry and the investors and help grow our economy in the
long run.
Financial Technology also known as FinTech describes a business that
aims at providing financial services such as personal financial
management, insurance, payment by making use of software and other
modern technology.
FinTech generally aim to attract customers with products and services
that are more user-friendly, efficient, transparent and automated than
those currently available.
President FinTechNGR, Dr. Segun Aina said “FinTech has supported the
banking industry tremendously and the capital market will also greatly
benefit from it. In every aspect of financial services, FinTech
important and that is why we are driving the process in Nigeria”

Nigerian Stock Exchange market capitalisation depreciates by 0.03%

Image result for nseEquity transactions on the Nigerian Stock Exchange (NSE) resumed on Monday on a negative note with market indices dropping marginally by 0.03 per cent.

The market capitalisation shed N4 billion or 0.03 per cent to close at N12.718 trillion against N12.722 trillion posted on Friday.

Also, the All-Share Index, which opened at 34,848.45, lost 10.95 points or 0.03 per cent to close at 34,837.50 amid price losses.

An analysis of price movement indicated that Total Oil led the losers’ table with a loss of N2.4 to close at N187.7 per share.

Glaxosmith trailed with N2.1 to close at N97.9, while Nigerian Breweries dipped by N2 to close at N36 per share.
FlourMill declined by 9k to close at N13, while Zenith Bank lost 65k to close at N21 per share.

Conversely, Dangote Cement led the gainers’ table during the day, gaining N2 to close at N230 per share.

Okomu Oil came second with a gain of 55k to close at N77.5, while GTBank appreciated by 5k to close at N36.5 per share.

Zenith Bank increased by 35k to close at N21.35 and Eternal Oil rose by 2K to close at N6.9 per share.

Overall, the volume of shares decreased by 65.83 per cent with 131.531 million shares worth N3.14 billion transacted by investors in 3,080 deals.

This was in contrast with 384.893 million shares worth N9.79 billion exchanged in 4,070 deals on Friday.

Diamond Bank was the most active, exchanging 101.80 million shares valued N124 million.

Stanbic IBTC followed with an account of 67.77 million shares worth N897.18 million, while GTBank traded 46.40 million shares valued at N1.34 billion.

Zenith Bank traded 42.29 million shares worth N2.3 billion and Dangote Cement traded 399.86 million shares valued at 953.08 million.

Peace PIAK

NSE equity market sheds 0.44%

The Nigerian Stock Exchange equities capitalization as well as the NSE All Share Index have depreciated by 0.43 percent on Wednesday.

The equities capitalization closed at 12,909 trillion Naira, falling by 57 billion Naira or 0.43 per cent when compared to Tuesday’s closing of 12,966 trillion Naira.

On the other hand, the All Share Index fell by 157.27 basis points or 0.43 per cent when it closed at 35,358.94 basis points as against previous closing of 35,516.21 basis points.

On Wednesday, the NSE traded 345 million shares at the value of 227 billion Naira in 3,261.00 deals. When compared to Tuesday’s trades of a total of 339.68 million shares valued at N5.50 billion in 3,394 deals.

The top three trades stock are;

N.E.M INSURANCE CO (NIG) PLC was the top traded stock with 180 million shares when measured by volume at the value of N540 million Naira.

Trailed by UNITED BANK FOR AFRICA PLC which traded 27 million shares worth N221 million Naira.

Then TRANSCORP HOTELS PLC followed with 22 million shares at the value of N27 million Naira.

GAINERS AND LOSERS

A total of eighteen (18) stocks appreciated on Wednesday while twenty-seven 27 depreciated.

The top three gainers are;

PORTLAND PAINTS & PRODUCTS NIGERIA PLCtopped the gainers’ table with an opening price of N2.71 kobo per share and a closing price of N2.98 kobo per share, gaining 0.27 kobo or 9.96 per cent.

Followed by REGENCY ALLIANCE INSURANCE COMPANY PLC which opened for transaction at 0.21kobo per share and closed at 0.23 kobo per share, gaining 0.02 kobo or 9.52 per cent. While SKYE BANK PLC opened at 0.52 kobo per share and closed at 0.56 kobo per share, appreciating by 0.04 kobo or 7.69per cent.

On the other hand, the top three losers are;

LIVESTOCK FEEDS PLC with an opening price of 0.60 kobo per share, to close at 0.54 kobo per share, falling by 0.06 kobo or 10.00 per cent.

Then STANDARD ALLIANCE INSURANCE PLC.followed with an opening price of 0.42 kobo per share and a closing price of 0.38 kobo per share, lossing 0.04 kobo or 9.52 per cent. While LASACO ASSURANCE PLC.fell by 0.03 kobo or 9.09per cent after opening and closing at 0.33 kobo per share and 0.30 kobo per share respectively.

CBN Releases $210m Into FOREX Market

Udo ONYEKA

The Central Bank of Nigeria (CBN), has injected 210 million dollars into the inter-bank Foreign Exchange Market to ensure adequate supply of foreign exchange to customers, in its continued effort to ensure stability of Naira,

The CBN acting Director, Corporate Communications Department, Mr Isaac Okorafor, said 100 million dollars was offered to authorized dealers in the wholesale segment of the market.

He said customers in the Small and Medium Enterprises segment received 55 million dollars and those requiring foreign exchange for tuition fees, medical payments and Basic Travel Allowance among others, received 55 million dollars.

Okorafor 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.

It will be recalled that on Thursday, August 23 and Friday, August 24, 2018, the Bank injected a total sum of $543.22 million and CNY 63.21 million into the inter-bank foreign exchange market.

Meanwhile, the naira continued its stability in the FOREX market, exchanging at an average of N361/$1 in the BDC segment of the market on Tuesday, August 28, 2018.

Forex: CBN injects another $210 million into market

The Central Bank of Nigeria (CBN), has injected 210 million dollars  into the inter-bank Foreign Exchange Market to ensure adequate supply of foreign exchange to customers.

The  CBN acting Director, Corporate Communications Department, Mr Isaac Okorafor, said 100 million dollars was offered to authorised dealers in the wholesale segment of the market.

He said customers in the Small and Medium Enterprises segment received 55 million dollars and those requiring foreign exchange for tuition fees, medical payments and Basic Travel Allowance among others, recieved 55 million dollars.

Okorafor 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.

It will be recalled that on Aug. 23 and 24, the Bank injected a total sum of 543.22 million dollars and 63.21 million Chinese Yuan into the Inter-bank Foreign Exchange Market.

Meanwhile, the naira continued its stability in the Foreign Exchange Market, exchanging at an average of N361 to a dollar in the Bureau De Change segment of the market.

NSE market capitalisation bounces back by 1.87%

The Nigerian Stock Exchange (NSE) has closed trading activities for the week on a positive note with the market capitalisation rebounding by 236 billion naira or 1.87 per cent to close on Friday at N12,874 trillion, compared to Thursday’s closing of 12,638 trillion Naira.

Similarly, the All-Share Index which had closed on Thursday at 34,618.43 basis points, gained 647.86 basis points or 1.87 per cent to close at 35,266.29 basis points.

Although the 374 million shares traded on Friday was 138 or 0.57 per cent higher than the 238 million shares traded the previous day, the value of the traded stocks depreciated.

On Thursday, the traded shares were valued at N309 billion, while the value of Friday’s traded stocks stood at 272 billion Naira, a decline of 37 million naira or 0.12 per cent.

Also, 2,8750 deals were completed on Friday, 287 deals or 0.09 per cent less than the 3,162.00 deals that were sealed on Thursday.

TOP THREE TRADES

NEM Insurance Plc was the most traded stock with 130 million shares worth N521million traded.

It was followed by AXA Mansard Insurance Plc with 94 million shares valued at N241 million traded, while Transnational Corporation of Nigeria Plc followed with 17 million shares worth N20 million sold.

At the end of Friday’s activities, 17 stocks appreciated, 24 depreciated, and 129 stocks retained their prices.

GAINERS

Airline Services and Logistics Plc led the gainers’ table after it appreciated by 40 kobo or 9.88 percent to close at N4.45 kobo per share – from an opening price of N4.05 kobo per share

UnityKapital Assurance Plc rose by two kobo or 8.33 percent from 24 kobo per share to close at 0.26 kobo per share, while Japaul Oil and Maritime Services Plc appreciated by 7.69 per cent or two kobo to close at 28 kobo, up from 26 kobo per share.

LOSERS

On the reverse side, Law Union & Rock Plc led losers after it declined by nine kobo or 10 percent from 90 kobo to close at 81 kobo per share.

Unity Bank Nigeria Plc also declined nine kobo or 10 percent to close at 81 kobo per share.

Also, Mutual Benefits Assurance Plc which opened at 33 kobo per share fell by three kobo or 9.09 percent to close at 30 kobo per share.

Naira gains 40kobo against dollar at parallel market

The Nigerian currency, Naira gained 40k against the dollar at the end of trading, exchanging at N359.60k stronger than N360 traded last Thursday.

The Pound Sterling and the Euro closed at N469 and N413 respectively.

At the Bureau De Change (BDC) window, the Naira exchanged at N360 to the dollar, while the Pound Sterling and the Euro closed at N469 and N413 respectively.

Trading at the investors’ window showed that the naira gained 30k to close at N362.50 from N362.53 traded on Wednesday, posting a turnover of 606.21 million dollars, while the Naira was sold at N306.10 at the Central Bank of Nigeria (CBN) official rate.

It would be recalled that the naira had remained stable at the foreign exchange market, due largely to the series of interventions by the Central Bank of Nigeria.

Baru says NNPC’ to list 40% of shares on NSE

NNPC

The Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru, has said 40 per cent of the shares of the Corporation would be floated on the Nigerian Stock Exchange (NSE) when the Petroleum Industry Governance Bill (PIGB) gets  Presidential Assent.

Baru spoke yesterday in Lagos at the 2018 annual conference of the Association of Energy Correspondents of Nigeria (NAEC). In his keynote address titled: “PIGB: Emerging Issues and Concerns,” he highlighted the key thrusts of the PIGB including making the national oil company commercially driven hence the need to raise money from the stock market.

Represented by the Group General Manager, National Petroleum Investment Management Services (NAPIMS), Mr. Rowland Ewubare, the GMD said: “The PIGB is focused on the key governing institutions in Nigeria’s oil and gas industry and aims to separate the Regulatory, Policy and Commercial roles of public sector agencies and allocate respective roles to agency to properly positioned to perform them.

“For the NNPC, the PIGB requires the minister to within six months after its enactment, take such steps as are necessary under the Companies and Allied Matters Act (CAMA) to incorporate the two entities – the Nigerian Petroleum Assets Management Company (NPAMC) and the Nigerian Petroleum Company (NPC) as companies limited by shares which will be vested with certain liabilities and assets of the NNPC.

“The NPC shall be an integrated oil and gas company operating as a fully commercial entity across the value chain. Essentially, it shall be responsible for all assets currently held by NNPC except the production sharing contracts (PSCs). The NPC shall be a limited liability company registered under CAMA.

The initial shares shall be held by the Ministry of Petroleum Incorporated (40 per cent), the Ministry of Finance Incorporated (40 per cent) and the Bureau of Public Enterprises (20 per cent). However, 10 per cent and an additional 30 per cent of the shares of the company shall be floated on the Nigerian Stock Exchange between five years and 10 years from incorporation respectively.”

for the significant cash call build up.

Baru said the power of issuance, modification, amendment, extension, suspension, review, cancellation and reissuance, revocation and/or termination of award licenses/leases has been transferred to the commission in line with the new global trend, adding the PIGB has provided a legal framework and expanded role for the Department of Petroleum Resources.

Also the Chairman of the conference, Deputy Managing Director, Deepwater District, Total E&P Nigeria limited, Mr. Ahmadu-Kida Musa, assured that the company will by the last quarter of this year add 200,000 barrels of oil per day to the nation’s oil production.

Wholesale market, others get $210m CBN boost

The Central Bank of Nigeria (CBN) has sustained its intervention in the inter-bank foreign exchange market by injecting yet another sum of $210,000,000 into various sums of the market on Tuesday, August 14, 2018.

At Tuesdays trading, the Bank offered the sum of $100,000,000 as wholesale interventions and allocated the sum of $55,000,000 each for Small and Medium Enterprises (SMEs) forex window and the invisibles sector, for customers requiring forex for Business/Personal Travel Allowances, tuition and medical fees, among others.

Confirming the figures in Abuja, the Acting Director, Corporate Communications at the CBN, Mr. Isaac Okorafor said the Bank was pleased at the performance of the naira, noting that the currency had continued to enjoy stability against the Dollar and other major currencies of the world in recent times.

Okorafor reassured the public that the Bank would continue to intervene in the interbank foreign exchange market in line with its resolve to ensure liquidity in the forex market and maintain stability.

He reiterated that the steps taken by the CBN in forex management had resulted in further reduction in the country’s import bills and accretion to its foreign reserves.

It will be recalled that the CBN last Friday, August 10, 2018, intervened in the Retail Secondary Market Intervention Sales (SMIS) to the tune of $327 million in the agricultural and raw materials and CNY 69 million in the spot and short-tenored forwards.

The Naira continued to maintain its strong stand against major currencies around the globe, exchanging for N360/$1 in the BDC segment of the market on Tuesday, August 14, 2018.