NSE market cap closes on a positive note

 

 

 

 

The Nigerian Stock Exchange has closed this week’s trading activities on a positive.

The exchange recorded its first gain this week when the market capitalisation and the All Share Index closed on Friday at 13,260 trillion Naira and 36,603.44 basis points respectively.

Both the Market capitalisation and the All Share Index gained 0.37 per cent. While the market capitalisation gained 49 billion Naira, the All Share Index gained 133.39 basis points.

Investors exchanged 680 million shares worth 3.9 billion Naira in 3,677.00 deals.

Weekly summary

A total turnover of 1.665 billion shares worth N14.834 billion in 18,795 deals were traded this week by investors on the floor of the Exchange in contrast to a total of 1.219 billion shares valued at N17.333 billion that exchanged hands last week in 17,362 deals.

The Financial Services Industry (measured by volume) led the activity chart with 1.056 billion shares valued at N10.224 billion traded in 10,056 deals; thus contributing 63.45% and 68.93% to the total equity turnover volume and value respectively.

The Services Industry followed with 264.289 million shares worth N549.693 million in 592 deals. The third place was occupied by Conglomerates Industry with a turnover of 134.374 million shares worth N199.566 million in 1,286 deals.

Trading in the Top Three Equities namely – Sterlng Bank Plc, Medview Airline Plc and Zenith International Bank Plc (measured by volume) accounted for 719.386 million shares worth N4.209 billion in 1,961 deals, contributing 43.20% and 28.38% to the total equity turnover volume and value respectively.

Also traded during the week were a total of 340 units of Exchange Traded Products (ETPs) valued at N33,660.20 executed in 6 deals, compared with a total of 79,304 units valued at N1.491 million that was transacted last week in 18 deals.

A total of 17,251 units of Federal Government Bond valued at N17.943 million were traded this week in 18 deals compared with a total of 13,517 units valued at N14.899 million transacted last week in 30 deals.

Index movement

The NSE All-Share Index and Market Capitalization depreciated by 2.11% to close the week at 36,603.44 and N13.260 trillion respectively.

Similarly, all other indices finished lower with the exception of the NSE Insurance Index that appreciated by 0.08%

Sixteen (16) equities appreciated in price during the week, lower than twenty-one (21) in the previous week. Fifty-nine (59) equities depreciated in price, higher than fifty-five (55) equities of the previous week, while ninety-four (94) equities remained unchanged higher than ninety-three (93) equities recorded in the preceding week.

New Listing; Listing of the FGN Green Bond

A total volume of 10,690,000 units of 13.48% FGN DEC 2022 was admitted to trade at the Exchange today Friday, July 20, 2018.

Suspension lifted

Meanwhile, the NSE has lifted the suspension it had placed on Royal Exchange Plc.

Royal Exchange Plc, which was one of the eight (8) companies suspended, has submitted its Audited Financial Statement for the year ended 31 December 2017.

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 the 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, 20 July 2018.

Royal Exchange Plc, along with the eight (8) other listed companies were suspended for non-compliance with Rule 3.1, Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of The Exchange (Issuers’ Rules) (“Default Filing 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’s securities; and

(c) Notify the Securities and Exchange Commission (SEC) and the Market within twenty- four (24) hours of the suspension.”

SEC advises investors on shares,strives to strengthen capital market

 

 

The Securities and Exchange Commission (SEC) has again warned against investment in ponzi schemes and assured Nigerians that it would strengthen the capital market toward an enhanced investors’ value.

Ms Mary Uduk, Acting Director-General of SEC, made the assertion while delivering a keynote address at a Town Hall meeting organised by the commission to sensitise investors on shares, investments and ponzi schemes in Port Harcourt.

The meeting with the theme, “Current Initiatives by the Securities and Exchange Commission (SEC) Nigeria to Enhance Investors Value”, is basically to provide financial literacy to investors who have their funds or wishes to invest with fund managers.

Uduk said that there was need to properly sensitise investors to guide against money loss.

She said that Nigerian investors had in the past suffered huge loss due to involvements in various ponzi schemes, wonder banks and other overblown profit oriented businesses.

According to her, these ponzi schemes were being exploited by fraudsters to dupe ignorant investors.

Uduk urged Nigerians to invest in shares and collective investment schemes to avoid the risks of money loss.

The investment expert explained that the commission, through its robust operations, was making the capital market more user friendly as dividends, sales/transfer of proceeds on shares were being handled efficiently within the shortest possible time.

She also said that dividends on shares were being dematerialised making it possible for investors to save proceeds directly in their respective bank accounts rather than in share certificates as was the case in the past.

In his contribution, Mr Obi Adindu, a Deputy Director in the commission, also warned Nigerians against investing in cripto currencies.

“It is also risky investing in cripto currencies as its regulatory frameworks have yet to be ascertained by the Securities and Exchange Commission.

“As we all know, MMM has crashed with many Nigerians loosing their funds, the same could happen to the cripto currencies, so I advise investors to stay away,” he said.

In the same vein, Mr Dum Ntouwe, an investor in the money market, applauded SEC for educating investors on the status and privileges of share holders.

“As an investor, I have been in the money market and I believe this lecture has further exposed me to ascertain credibility of any given investment before participation.

“This town hall meeting has also armed me with the necessary information on my rights and privileges as it relates to claims on proceeds and dividends in the money market.’

SEC: only fit, proper persons ’ll be allowed in capital market

 

 

Nigeria’s apex capital market regulator, Securities and Exchange Commission (SEC) has restated its determination to ensure that only fit and proper persons and associations are allowed to operate in the nation’s capital market.

Acting Director-General, Securities and Exchange Commission (SEC), Ms Mary Uduk said SEC is open to suggestions and actions that would make the capital market vibrant, but the Commission would only be willing to collaborate with associations and persons that are fit and proper to operate in the market.

Speaking when members of the Association of Stockbroking Houses of Nigeria (ASHON) met with SEC management in Abuja, Uduk said the Commission is dedicated to further develop and deepen the capital market.

According to her, SEC is willing to collaborate with the association to lift the market and re-position it among leading capital markets that meet international standards and best practices.

SEC noted that a well-functioning capital market was essential to Nigeria’s economic development, and to realise its full potential, the country must have a world class capital market that is strong, sustainable, effective, and plays a central role in economic development.

Uduk commended members of the group on their efforts so far in deepening the market, especially for their support towards the financial literacy campaign of the SEC and assured them of the readiness of the SEC to continue to work with them.

“It is good that we work together to take our capital market to the height we want it to attain. We are ready to engage with you to give us clarity on several issues relating to the market. We are open to discussions that will benefit the market, the market is the most important in all our engagements,” Uduk said.

In his remarks, ASHON Chairman, Chief Patrick Ezeagu pledged the group’s commitment to the capital market growth, adding that whatever is done to make the market work is of concern to the association.

“We have always worked with SEC and will continue to do so and accord you all the co-operation you require to succeed,” Ezeagu said.

He said stockbroking houses will continue to collaborate in every way possible to bridge the gap in financial literacy.

Meanwhile, in a move to further enlighten investors and the general public on the process and benefits of e-dividend, will today hold a town hall meeting with stakeholders and the general public in Port Harcourt.

The meeting will provide the Commission the opportunity to highlight investment opportunities available in Nigerian capital market and how retail investors can benefit therein.

The meeting will also provide the Commission opportunity to educate and enlighten the public on electronic dividend and interact with the general investing public.

The Commission had earlier this year announced that the e-dividend registration would continue seamlessly in spite of the expiration of free registration deadline which and also enjoined investors yet to enroll, to continue with the registration at a cost of N150 only.

According to the Commission, investors should continue to approach their banks or registrars to seamlessly mandate their bank accounts for the collection of their dividends electronically, including unclaimed dividends, not exceeding 12 years of issue; as the N150 would not be demanded from them at the point of registration.

Osinbajo, Saraki, Dogara, Adeosun others speak at capital market conference Monday

 

 

The Senate and ’ Committees on , Securities and Exchange Commission and other Regulatory Agencies is to hold the Second biennial Stakeholders’ Forum on the on Monday, July 23, 2018.
Vice President Yemi Osinbajo will be the Special Guest of Honour while Senate President, Bukola Saraki and the Speaker of the House of Representatives, Yakubu Dogara will be Chief Hosts.
The trio will be joined by other federal legislators, capital market experts and others at the morning conference and evening dinner scheduled to take place at Ladi kwali Hall of Sheraton Hotel and Towers in Abuja.
Top private sector players including leading industrialist, Alhaji Aliko Dangote; Chairman of Heirs Holdings, Mr.
Tony Elumelu; Chairman Coronation Capital, Mr.
Aigboje Aig-Imohkuede and MD of Access Bank, Mr.
Herbert Wigwe are expected to make this year’s event even more noteworthy.
Others expected to grace the event includes; MD of Chapel Hill Denham, Mr.
Michael Adegbola; MD of CSCS, Mr.
Jalo Waziri Haruna; Group CEO of United Capital Plc, Mr.
Peter Ashade; MD of Financial Derivatives Ltd, Mr.
Bismarck Rewane; Prof.
Uche Uwaleke, First Nigerian Professor of Capital Market; Ms.
Daisy Ekineh, CEO DSE Advisory Services and Mr.
Abimbola Ogunbanjo who is President in Council of the Nigerian Stock Exchange (NSE).
According to Chairman, House of Representatives’ Committee on Capital Market and Institutions, Honourable TeeJay Yusuf, this years’ conference has as its theme “Capital market as a catalyst for economic growth and development” Among the papers to be presented are Post Recession: Challenges, Implications and Opportunities for the Nigerian Capital Market; Role of Commodity Exchange; Development of the Agricultural Sector and Capital Market Options for funding the development of major infrastructure projects.
The Minister of Finance, Kemi Adeosun and Ministers of Agriculture, Budget and National Planning, Trade and Investment and Works, Power and Housing, as well as State Governors including Rivers, Kebbi, Kaduna, Sokoto, Bauchi, Lagos, Nasarawa.
Also, heads of critical public institutions, including the Central Bank of Nigeria, Federal Inland Revenue Service (FIRS) and PENCOM are expected to participate.
“Acting DG of SEC, Ms Mary Uduk; CEO of NSE, Mr.
Oscar Onyema, MD NASD Mr.
Bola Ajomale, MD FMDQ Mr.
Bola Onadele, MD of ARISE Africa News Channel, Ms Ijeoma Nwagwugwu, the DG Budget Office, Mr.
Ben Akabueze; DG of Debt Management Office, Ms.
Patience Oniha; MD Nigeria Commodity Exchange, Mrs.
Zaheera Baba-Ari; former Minister of Finance, Dr.
Shamsudeen Usman, among others,” Hon.
Yusuf stated.
Feedback from the event is expected to help the Capital Market’s harness its potentials that will enable it mobilize development funds from across the globe towards a fast-paced execution of infrastructural projects nationwide.

SEC restates commitment to strengthen Nigeria’s capital market

 

…The Acting Director-General of SEC, Mary Uduk, said this in a statement issued by the Acting Head of Media, Efe Ebelo on Sunday in Abuja.

 

The Securities and Exchange Commission (SEC) has reiterated its commitment to collaborate with relevant stakeholders to strengthen Nigeria’s capital market.

The Acting Director-General of SEC, Mary Uduk, said this in a statement issued by the Acting Head of Media, Efe Ebelo on Sunday in Abuja.

Uduk said this when members of the Association of Stockbroking Houses of Nigeria met with the management of SEC at the weekend in Abuja.

Uduk said a well-functioning capital market was essential for Nigeria’s economic development.
She said to realise its full potential, the country must have a world class capital market that was strong, sustainable, effective, and played a central role in economic development.

According to her, the SEC is open to suggestions and actions that will make the capital market vibrant.

She, however, added that such collaborative efforts would only be with associations and persons that were fit and proper to operate in the market.

Uduk commended members of the group on their efforts so far in deepening the market, especially for their support toward the financial literacy campaign of SEC.
The director-general pledged SEC’s willingness to collaborate with the association to lift the market and re-position it among leading capital markets that met international standards and best practices.

She said: “Its good that we work together to take our capital market to the height we want it to attain.
“We are ready to engage with you to give us clarity on several issues relating to the market.
“We are also open to discussions that will benefit the market, because the market is the most important in all our engagements.”

Earlier, the Chairman of ASHON, Onyewechukwu Ezeagu, pledged the commitment of the group to ensure growth of Nigeria’s capital market.
Ezeagu said: “We have always worked with SEC and will continue to do so and accord you all the co-operation you require to succeed.

“Whatever needs to be done to make the market work is of concern to the association.”
The ASHON chairman also said the group would continue to collaborate with the commission to ensure financial literacy in the country.

 

Registrars Frustrating Recovery of Unclaimed Dividends—Shareholders

 

 

Some registrars and secretaries of companies listed on the Nigerian Stock Exchange (NSE) have been accused of deliberately frustrating the recovery of unclaimed dividends and payment of new ones.

In 2015, the Securities and Exchange Commission (SEC) launched the E-Dividend Mandate Management System (E-DMMS) in collaboration with the Central Bank of Nigeria (CBN), Nigerian Interbank Settlement System (NIBSS) and other stakeholders.

The E-DMMS is an E-dividend payment portal that ensures the payment of dividends directly into a shareholder’s account.

After about three years of campaign for e-dividend, SEC cancelled the issuance of physical dividend warrants, opting for full e-dividend payment for companies quoted on the stock market.

But some shareholders, who spoke to The Nation at the weekend, alleged that the rate of adoption of the e-dividend and recovery on unclaimed dividends had been slowed down by bureaucratic bottlenecks and deliberate sabotage by some stakeholders, especially registrars and company secretaries.

They claimed companies and registrars were unwilling to release the huge funds under their custody and had been employing delay tactics to frustrate shareholders from adoption of e-dividend.

According to the shareholders, company secretaries and registrars have perfected the tactics of selective payment and distribution of e-dividend while exploring loopholes in the rules and enforcement by SEC.

“Before you can open a shareholding account, you must necessarily fill Know-Your Customer (KYC) form that contains all your details, including bank account and official identity. You will also be required to sign your signature, provide utility bill, photocopies of identity card and many other requirements.

“But even after this process and your account is opened at the Central Securities Clearing System (CSCS), the registrars will still claim you don’t have specimen signature and all sorts of that,” a shareholders’ leader said.

According to them, with the shareholders’ Bank Verification Number (BVN) that are registered with stockbrokers, registrars should be able to process e-dividend and make payment on the basis of confirmation by stockbrokers, who are the custodians of shareholders’ accounts.

They noted that the CSCS used a similar method to attain 100 per cent dematerialisation of share certificates, alleging that registrars and company secretaries are undermining the dividend payment process because “money is involved”.

They urged SEC to review the e-dividend process and work with stockbrokers to achieve seamless transition to full e-dividend payment.

“When you sell your shares through stockbrokers, you get your money, why is it that it is only when it comes to dividend payment that bureaucracy comes in and you are being tossed from one end to another? It is deliberate. They know what they are doing,” another shareholders’ leader lamented.

Latest update on unclaimed dividends by SEC showed that unclaimed dividends had risen to N129.62 billion by December 31, 2017, its highest level.

The report indicated that about a quarter of the unclaimed dividends were with registrars while the balance were with companies.

SEC reiterates commitment to improve Nigeria’s capital market

 

Image result wey dey for PICTURES OF SEC BUILDING NIGERIA

 

The Securities and Exchange Commission (SEC), has reaffirmed its commitment to collaborate with relevant stakeholders to strengthen Nigeria’s capital market.

The Acting Director-General of SEC, Ms Mary Uduk made this known when members of the Association of Stockbroking Houses of Nigeria (ASHON) met with the management of SEC at the weekend in Abuja, the nation’s capital.

According to her, a well-functioning capital market was essential for Nigeria’s economic development.

“The country must have a world class capital market that was strong, sustainable, effective, and played a central role in economic. SEC is open to suggestions and actions that will make the capital market vibrant,” Uduk stated.

She, however, added that such collaborative efforts would only be with associations and persons that were fit and proper to operate in the market.

Uduk commended members of the group on their efforts so far in deepening the market, especially for their support toward the financial literacy campaign of SEC.

The Director-General pledged SEC’s willingness to collaborate with the association to lift the market and re-position it among leading capital markets that met international standards and best practices.

“Its good that we work together to take our capital market to the height we want it to attain. We are ready to engage with you to give us clarity on several issues relating to the market. We are also open to discussions that will benefit the market, because the market is the most important in all our engagements,” Uduk explained.

The Chairman of ASHON, Mr Onyewechukwu Ezeagu pledged the commitment of the group to ensure growth of Nigeria’s capital market.

“We have always worked with SEC and will continue to do so and accord you all the co-operation you require to succeed. Whatever needs to be done to make the market work is of concern to the association,’’ Ezeagu said.

The ASHON Chairman also said the group would continue to collaborate with the commission to ensure financial literacy in the country.

 

 

 

SEC approves NSEs rule on nominal transfer of shares

 

 

 

The Securities and Exchange Commission, SEC has approved the Nigerian Stock Exchange, NSE amended rule 15.34 which relates to Nominal Transfer of shares of listed companies in the capital market. The NSE, in a circular disclosed that the approved rule becomes effective on 11th August 2019.

According to the rule, “No security listed on the Exchange shall be bought or sold outside the facilities of the Exchange; any securities holder that wishes to transfer his securities by way of a nominal transfer shall apply to the Exchange through his Stockbroker for transfer of the securities. The stockbroker shall carry out the requisite Know-Your-Client (KYC) enquiries on the securities holder and the proposed transferee;  the Exchange shall review the application and the supporting documents submitted by the stockbroker to determine whether the relationship between the proposed transferor and the proposed transferee is sufficient for the transaction to be classified as a nominal transfer ; in reaching a decision to classify a transaction as a nominal transfer, the exchange shall: with regard to a nominal transfer between corporate entities, consider whether a party directly or indirectly controls the other party, or both parties are under common control.”

In the  new rule, the Exchange stated that a  party shall be deemed to control another party if it holds or is beneficially entitled to hold, directly or indirectly, more than fifty per-cent (50%) of the total voting rights in the other party, its total income, or issued share capital. With regard to nominal transfer between individuals, the rule consider the following connections: whether there is a familiar relationship between transferor and transferee including but not limited to spouse, brother, sister, father, mother, child or step child.

The Rule also stated: “with regard to a nominal transfer between an individual and a corporate entity, consider whether the individual is a beneficial shareholder of the corporate entity. The parties shall comply with such directions as may from time to time be provided by the Exchange with regard to completing the transaction; in order for the Exchange to approve the transfer, the following documents shall be submitted to the Exchange: (1) Application letter by the stockbroker introducing the client and detailing the nature of the transaction; (2) two (2) copies of the client’s CSCS shares statement indicating the current shareholding position, where the shares are dematerialized; (3) two (2) copies of a letter of Authority addressed to the Exchange executed by the proposed transferor; (4) For a corporate entity, a duly executed board resolution and a certified true copy of its most recent Form CAC 7 (Particulars of Directors) and Form CAC 2 (Statement of Share Capital and Return on Allotment of Shares). (5) Original executed securities transfer form(s); (6) Mandate executed by the Transferor in favour of the Stockbroker making the application; (7) Other relevant documents such as means of identification of the transferor, transferee, any signatories or relevant person; in respect of a trust, a certified true copy of the trust deed.”