Tag: Nigerian Exchange Limited (NGX)

NGX, UN Women partner to promote gender bonds in Nigeria

Nigerian Exchange Limited (NGX) and United Nations Women (UN Women) will partner on the integration of gender bonds and other gender-themed sustainable financing mechanisms as strategic instruments to drive gender equality and sustainable development in Nigeria.

This was deliberated at a high-level engagement between NGX and UN Women officials during the visit of Dr. Maxime Houinato, Regional Director for East and Southern Africa Region (ESARO) and interim Regional Director for West and Central Africa Region (WCARO), to the Exchange. During the engagement, the parties spoke on the need to galvanize public and private sector stakeholders to the development and adoption of gender responsive instruments in Nigeria’s capital market and the mobilization of public and private capital towards investments that promote gender equality outcomes, among other focus areas.

“UN Women has been on the forefront of female advocacy which is a major priority of the work we have been doing with International Finance Corporation on the Nigeria2Equal project,” said Irene Robinson-Ayanwale, Divisional Head, Business Support Services and General Counsel, NGX. “We are committed to this collaboration with UN Women to further deepen impact in the capitl market and broader private sector.”

Chidinma Chukwueke-Okolo, Head, Product Development, NGX said, “Our collaboration with UN Women will primarily border on capacity building for issuers and investors, specifically for the development of a framework for gender bonds issuance in the Nigerian capital market.”

Dr Houinato, during his remarks stressed the importance of female participation in the leadership in the private and public sectors. He emphasized the necessity of more men in the private sector driving the advocacy for women and also touched on UN Women’s work on female advocacy.

September 19, 2023
PZ Cussons (Holdings)
Limited’s offer to acquire shares held by other shareholders of PZ Cussons
Nigeria Plc

PZ Cussons Nigeria Plc (“PZCN” or the “Company”) has notified the Nigerian Exchange Limited (“NGX”) and the investing public that PZ Cussons (Holdings) Limited (the “Core Shareholder”) has informed the Board of Directors of the Company (the “Board”) of its intention to acquire the shares held by all the other shareholders of PZCN, subject to prevailing market conditions, at an offer price of ₦21 per share (the “Proposed Transaction”). The Proposed Transaction is however, subject to the consideration and approval of the Board of PZCN, the Company’s shareholders and requisite regulatory authorities.

According to a statement signed by the Ag. Company Secretary, Olubukola Olonade-Agaga, the PZ Cussons Group explained that they believe the transaction is necessary in order to enable them to significantly simplify and strengthen operations in Nigeria, creating the foundations for the Nigerian business to deliver against its strategy, building a more agile and innovative business, and noted that PZ Cussons has been present in Nigeria since 1899 and expects Nigeria to remain an important market for the Group for many years to come.

It is intended that the Proposed Transaction will be implemented under a Scheme of Arrangement in line with section 715 of the Companies and Allied Matters Act, No.3 of 2020 (as amended) and other applicable rules and regulations. This will require
the Company to convene a general meeting of its shareholders by an order by the Federal High Court (the “Court Ordered Meeting”).

Details of the Court Ordered Meeting (which includes the date, time, venue and agenda for the meeting) will be communicated to shareholders upon receipt of the requisite approvals from the Board, the Securities and Exchange Commission and the Federal High Court. The terms and conditions of the Proposed Transaction will be provided in the Scheme Document which will be dispatched to all shareholders prior to the Court Ordered Meeting.

Further developments will be communicated to shareholders in due course. The Company’s shareholders and members of the public are advised to exercise caution in dealing in PZCN’s shares until further information is provided.

September 4, 2023
Fidelity records PBT of N76.3bn for H1 2023

…declares interim dividend of 25 kobo Per Share

Leading financial institution, Fidelity Bank Plc has recorded an impressive 204.4% growth in Profit Before Tax for the first half of 2023 to N76.3bn according to the bank’s recently issued financial result.

A review of the results published on the Nigerian Exchange Group (NGX) on Friday, 1 September 2023, showed a positive performance across all financial indices, reaffirming the Bank’s position as one of the fastest growing and well-managed financial institutions in Nigeria. Gross earnings for the period grew by 59.6% to ₦247.1billion from ₦154.8billion reported in June 2022. Profit After tax stood at ₦61.9billion representing a growth of 166.0% over ₦23.3billion recorded in the corresponding period. This translates to an Earning per Share of 194kobo. The Bank’s Net Loans & Advances grew by 25.1% from ₦2.1trillion recorded as of December 2022 to ₦2.6trillion in June 2023 with corresponding growth in Customer Deposits which increased by 23.2% to ₦3.2trillion from ₦2.6trillion in December 2022.

The Bank’s balance sheet remained strong with a 27.4% growth in Total Assets from ₦3.9trillion in December 2022 to ₦5.1trillion. The Bank’s non-performing loans remained low and within regulatory threshold at 3.24% with adequate coverage of 111%. Return on Equity (ROE) and Return on Assets (ROA) closed at 34.9% and 2.8% respectively.

On the back of the strong H1 2023 performance, the board of the bank approved an interim dividend of 25k per share making it the second consecutive year the bank would be paying interim dividends and another demonstration of its capacity to provide shareholders with sustainable value.

Commenting on the Bank’s laudable performance, Nneka Onyeali-Ikpe, MD/CEO, Fidelity Bank Plc noted, “We are pleased to report on another period of quality growth across all financial and non-financial indices. Our performance during the first half of the year reflects the resilience of our bank and the fundamental strength of our business to deliver long-term sustainable value at a time that has been characterized by global economic headwinds. As a bank, we remain committed to our goal of helping individuals to grow, inspiring businesses to thrive and empowering economies to prosper.

The Bank’s impressive H1 2023 results comes to join a string of recent achievements by Fidelity Bank. It would be recalled that the Bank’s stock was reclassified from small-price stock to medium-price stock by the NGX in July 2023 on the back of a consistent impressive performance.

Similarly, the bank recently emerged the company with the highest earnings per share on the NGX based on half year financial figures for the second year running.

To sustain this sterling performance, the bank’s shareholders, at an Extra-Ordinary General Meeting held on 11 August 2023, unanimously approved a capital raising exercise via a Public Offer and Rights Issue.

“We will continue to monitor and pro-actively manage the evolving risks in the economy while ensuring our commitments to our customers and shareholders are fulfilled. The interim dividend of 25kobo per share, a 150% increase compared to the 10kobo interim dividend in 2022FY, attests to the value we place on the unwavering support from our shareholders”, stated Onyeali-Ikpe.

Fidelity Bank is a full-fledged commercial bank operating in Nigeria with over 8 million customers serviced across its 250 business offices and digital banking channels. The bank was recently recognized as the Best SME Bank Nigeria at the 28th annual Euromoney Awards for Excellence 2023; and the Best SME Bank Nigeria 2022 by the Global Banking & Finance Awards. The bank has also won awards for the “Fastest Growing Bank” and “MSME & Entrepreneurship Financing Bank of the Year” at the 2021 BusinessDay Banks and Other Financial Institutions (BAFI) Awards.

September 4, 2023
Half Year Audited Result: GTCO Reports Profit Before Tax of ₦327.4billion

Guaranty Trust Holding Company Plc (“GTCO” or the “Group”) has released its Audited Consolidated and Separate Financial Statements for the period ended June 30, 2023, to the Nigerian Exchange Group (NGX) and London Stock Exchange (LSE).

The Group reported profit before tax of ₦327.4billion, representing an increase of 217.1% over ₦103.2billion recorded in the corresponding period ended June 2022. The Group’s loan book (net) increased by 22.8% from ₦1.89trillion recorded as at December 2022 to ₦2.32trillion in June 2023, while deposit liabilities grew by 37.0% from ₦4.61trillion in December 2022 to ₦6.32trillion in June 2023.

The Group’s balance sheet remained well structured and resilient with total assets and shareholders’ funds closing at ₦8.5trillion and ₦1.2 trillion, respectively. Full Impact Capital Adequacy Ratio (CAR) remained very strong, closing at 24.7%, while asset quality was sustained as IFRS 9 Stage 3 Loans improved to 4.6% in June 2023 from 5.2% December 2022, however, Cost of Risk (COR) closed at 3.7% from 0.6% in December 2022 owing to worsening macros which caused significant increase in ECL variables.

Commenting on the results, the Group Chief Executive Officer of Guaranty Trust Holding Company Plc, Mr. Segun Agbaje, said; “Our half year audited results reflect the strong business fundamentals underpinning the GTCO franchise, the quality of our past decisions in future proofing our balance sheet for challenging times, and the sound practices that guide our day-to-day operations. Despite the challenges in the business environment, notably inflationary pressures and exchange rate fluctuations, we are starting to see the gains in the transformation of our businesses following our transition to a Holding Company structure. Improved profitability and a solid performance across key metrics reflect efficiencies and justify the investments we continue to make in technology, product development, and our people.”

He further said; “We recognise the impact prevailing economic and market conditions have on people and livelihoods and we remain committed to seeking better outcomes for our customers by ensuring that our products and service offerings support our customers and their businesses through their evolving realities, whilst also taking every opportunity to optimise stakeholder value.”

Overall, the Group continues to post one of the best metrics in the Nigerian Financial Services industry in terms of key financial ratios i.e., Pre-Tax Return on Equity (ROAE) of 61.4%, Pre-Tax Return on Assets (ROAA) of 8.8%, Full Impact Capital Adequacy Ratio (CAR) of 24.7% and Cost to Income ratio of 27.7%.

GTCO is a leading financial services group with banking operations in Nigeria, West Africa, East Africa, United Kingdom alongside new businesses in Payment, Funds Management and Pension Fund Administration. Its leadership in the banking industry and efforts at empowering people and communities has earned it many prestigious awards over the years. Recently, Guaranty Trust Bank was recognized as Nigeria’s Best Bank and Best Bank in CSR at the 2023 Euromoney Awards for Excellence, Best Banking Group in Nigeria by World Finance, and Best Bank in Nigeria by Global Finance. GTCO’s Guaranty Trust Bank is featured in the Top 1000 Banks in the World and Top 100 Banks in Africa rankings by The Banker.

September 4, 2023
NGX emerges as one of the best-performing Exchanges in three months

…as market cap hits N1.4trn in August

Despite concerns around the soaring inflation, interest rate hikes and weak macroeconomic indices, investors’ confidence in Nigeria’s stock market remained strong, leading to Nigerian Exchange Limited (NGX) emerging one of the best-performing exchanges in Africa during a 3-month duration.

According to African markets, a website tracking the performance of exchanges in Africa, Ghana Stock Exchange (+22.84%) emerged first while NGX (+19.33%) emerged second on the list, followed by Malawi Stock Exchange (+15.79%).

This development has pushed the market to its 15-year high on the back of strong positive sentiments, as the market capitalisation- the listed value of equities, which opened the trading month of August at N35.011 trillion, closed the month at N36.422 trillion, hence gaining N1.41 trillion. On the other hand, the All-Share Index (ASI), which is the broad index that measures the performance of Nigerian stocks, opened the trading month at 64,337.52 index points at the beginning of trading on August 3, 2023, and closed at 66,548.99 points at the end the month on August 31, gaining 2,211.47 basis points or 3.44%.

The bullish trend can be attributed to investors’ jostling for low, medium, and high-capitalised stocks across some major sectors amid favourable policies introduced by President Bola Tinubu’s new administration such as the removal of fuel subsidies, unification of exchange rate, investors strategically positioning themselves and taking advantage of the recent record earnings posted by quoted firms and the recent formation of the country’s economic cabinet and executives. Interestingly, the market traded in mixed sentiments during the month under review.

Reacting to the performance of the market, market analysts maintained that most investors, particularly domestic investors are optimistic that the economy will take shape soon, hence the reason the stock market is defying current macroeconomic uncertainties.

Cordros Research in their Market review and outlook for financial markets titled; Veering from the watershed point, stated that the equities market resilience reflects heightened investor optimism for domestic growth with the new administration’s promulgation of long-needed policies.

According to the report, the implementation of policy reforms, accommodative monetary policy and resilient corporate earnings have so far supported buying activities in August. The report further said that “Even though foreign investors are expected to stay on the sidelines as long as FX illiquidity issues persist, its baseline expectation is that the market will deliver a positive return of 25.8% in the full year of 2023”.

September 1, 2023
Financial literacy, awareness, can help reduce unclaimed dividends – NGX

Nigerian Exchange Limited (NGX) has said that a mix of financial literacy and awareness can help to reduce the growing number of unclaimed dividends in the capital market.

This is coming after efforts by the Securities and Exchange Commission (SEC) to tackle rising unclaimed dividends in the nation’s capital market have continued to hit a brick wall. According to the commission, unclaimed dividends in the Nigerian capital market had risen to N190 billion from N180 billion recorded in 2021.

Reacting to this development at a recent retail investors webinar themed; How to Process Outstanding Dividend’, the Divisional Head, Capital Markets, NGX, Jude Chiemeka, noted that some retail investors are unaware of the backlog of unclaimed dividends that have accrued to them over many years, especially those investors with legacy investment held on their behalf.

Whilst adding that the webinar- held in collaboration with Futureview Asset Management Limited, is aimed at providing procedures to investors, especially the retail segment on how to process outstanding dividends and retrieve unclaimed dividends, Chiemeka said a mix of financial literacy and aggressive awareness can help to reduce unclaimed dividends in the market.

He also added that the Exchange remains committed to utilising technology to optimise intermediaries and increase access to the market for retail investors. He said, “To this end, we have established a digital gateway to democratise access to the market, reduce friction and drive retail participation in the capital market.”

Chiemeka assured that the SEC would continue to work assiduously with stakeholders to reduce the cases of unclaimed dividends in the market to the barest minimum.

September 1, 2023
NGX, LCCI to partner on private sector advocacy, listings

Nigerian Exchange Limited (NGX) has expressed its eagerness to collaborate with the Lagos Chamber of Commerce and Industry (LCCI) in advancing advocacy efforts, encouraging listings, and enhancing capacity development for both chamber members and the broader economy. The Chief Executive Officer, NGX, Temi Popoola, disclosed this during the Closing Gong Ceremony marking the 135th year Anniversary of LCCI on August 31, 2023.

Popoola emphasized the potential for NGX and LCCI to work together in promoting the advantages of listing for non-listed corporates, while also calling on LCCI to work with NGX Regulation on regulatory compliance, governance, and knowledge sharing.

Regarding retail participation, Popoola highlighted NGX’s plan to leverage technology to engage millions of Nigerians in the market. He drew parallels with the banking industry’s success in acquiring millions of customers through digitization and Fintech collaborations, indicating NGX’s readiness to partner with Fintechs to increase retail investor participation.

He further noted that NGX remains committed to building a thriving market and promoting innovative solutions that provide a globally competitive platform for issuers to raise capital, and investors to meet their financial objectives. “This commitment drives the Exchange to continuously seek strategic partnerships with key stakeholders”.

On his part, the President, LCCI, Michael Olawale-Cole, expressed enthusiasm about collaborating closely with NGX. “We will work on signing an MoU; including developing action plans and timelines for a more vibrant partnership for the sustainable development of the Nigerian capital market”. He commended NGX for its achievements and reiterated LCCI’s commitment to working together to enhance the exchange’s operations.

August 31, 2023
Frenzy in capital market as NGX ASI hits 15-year high

The Nigerian capital market was euphoric at the close of trading on Tuesday as the market hit a 15-year high. The All-Share Index (ASI) of Nigerian Exchange Limited (NGX) rose by 0.51% to 66,490.34 points from 66,151.38 the previous day, surpassing the highest value of 66,371.20 recorded on the Exchange on March 5, 2008.

This performance was partly attributed to a surge in banking stocks as investors strategically positioned themselves, taking advantage of the recent record earnings posted by banks. Consequently, market capitalisation increased by 0.51% to closed at N39.69 trillion from N36.21 trillion recorded on Monday.

This meant that investors gained N510 billion in two trading sessions. Among the various sectoral indices, the NGX Banking Index experienced the most significant daily gain, rising by 1.63%. Following closely were the NGX Consumer Goods Index, with a 0.99% increase, and the NGX Industrial Index, which saw a 0.21% uptick. Conversely, the NGX Oil/Gas Index dipped by 0.09%, and the NGX Insurance Index recorded a substantial decline of 1.56%, both attributable to investors reallocating their funds.

An analysis of Tuesday’s market activities revealed a substantial increase in trade turnover compared to the previous session, with transaction values surging by an impressive 79.18%. Consequently, the total volume of stocks traded reached 436.95 million units, valued at N7.02 billion, across 7,933 deals. This marked a significant uptick from the 311.12 million units valued at N3.92 billion traded in 7,193 deals on Monday.

FBN Holdings topped the activity chart with 55.15 million units valued at N911.21 million. Following closely was Japaul Gold with the sale of 33.11 million units worth N29.92 million, while UBA transacted 30.17 million units valued at N41.21 million.

Market breadth closed positive, with 35 stocks appreciating in value while 32 stocks depreciated. Champion Breweries led the pack of gainers with a remarkable 10% increase in stock value. Conversely, Linkage Assurance led the group of 32 declining securities, with a 10% decrease in stock value.

Reacting to the performance of the market, market experts attributed this strong performance to a combination of factors, including investor sentiment influenced by macroeconomic developments such as the formation and swearing-in of the economic cabinet by President Bola Tinubu. Additionally, movements in yields within the fixed income market played a role in shaping market dynamics. Given the ongoing challenges posed by the weak macroeconomic environment on corporate earnings, they emphasised the importance of strategically positioning investments in fundamentally strong stocks.

August 29, 2023
NGX, CIS, ASHON to work with MOFI on market development, listings

Nigerian Exchange Limited (NGX), along with the Chartered Institute of Stockbrokers and the Association of Securities Dealing Houses of Nigeria (ASHON), have demonstrated their willingness to collaborate with the Federal Government through the Ministry of Finance Incorporated (MOFI) in facilitating market development and listings.

This was disclosed during the Closing Gong Ceremony, held in honour of MOFI’s engagement with capital market stakeholders at the NGX trading floor in Lagos.

Temi Popoola, the CEO of NGX, commended MOFI for its role as the custodian of government investments and assets, emphasizing that NGX is eager to collaborate with MOFI to facilitate capital access for listed entities and contribute to the advancement of Nigeria’s capital market. “This partnership is an opportunity for the capital market to actively play a key role in growing the economy under President Bola Tinubu’s agenda. This is an exciting time and you may have seen that our local investors really stepped up their participation in the market recently. We think that with a lot of foreign capital, together with the strengthening and enhancements that have been done, that the market is ready to support many initiatives from the government. We really look forward to working together towards the support in developing our markets”.

On his part, Dr. Armstrong Takang, the CEO of MOFI, emphasized the importance of optimizing the value of government investments and assets, aiming to mobilize, structure, and deploy investment capital in priority sectors of the economy. He expressed the aspiration to grow MOFI’s asset under management (AuM) to at least N100 trillion. “MOFI intends to collaborate with NGX to guide companies in meeting governance, operational, and reporting requirements necessary for listing on the Exchange. This move also contributes to MOFI’s objective of professionalizing Government Owned and Government Linked entities (GOE and GLEs)”, he added.

Expressing the institute’s enthusiasm for the partnership, Oluwole Adeosun, the President of the Chartered Institute of Stockbrokers (CIS), pledged cooperation with MOFI, particularly in areas like capacity development and other market-related initiatives.

Sam Onukwue, the Chairman of ASHON, noted that the partnership’s impact on the Nigerian economy would extend beyond financial gains to encompass broader socio-economic advantages that contribute to sustainable development.

On her part, Tinuade Awe, the CEO of NGX Regulation Limited (NGX RegCo), highlighted the regulatory company’s commitment to collaborating with MOFI on matters of transparency, investor protection, and mitigating systemic risks.

August 15, 2023
SEC, PENCOM, NGX reiterate commitment to deepening securities lending

…calls for more collaboration, awareness

With the aim of enhancing investor participation and securities lending transactions in the Nigerian capital market, the Securities and Exchange Commission (SEC), National Pension Commission (PENCOM) and Nigerian Exchange Limited (NGX) have reaffirmed their commitment to further developing the securities lending landscape.

This commitment was reiterated during the NGX Securities Lending workshop held on Wednesday, August 9, 2023, in collaboration with Central Securities Clearing System Plc (CSCS), Cardinalstone Partners, Stanbic IBTC Nominees, and the Pension Fund Operators Association of Nigeria (PenOps). The virtual workshop with the theme “Business Facilitation Act 2023 as a catalyst for deepening Securities lending in Nigeria,” brought together diverse stakeholders, including retail and institutional investors, Pension Funds Administrators, Fund Managers, ETF Issuers, regulators, and policymakers.

The Divisional Head, Capital Markets, NGX, Jude Chiemeka, highlighted in his opening remarks that one of the significant achievements during the previous administration of President Muhammadu Buhari was the assent of the Business Facilitation (Miscellaneous Provisions) Act, 2022 on February 14, 2023. This legislative milestone led to crucial amendments being made to Section 89 (2) of the Pension Reform Act, allowing pension assets to qualify for securities lending, subject to guidelines issued by PENCOM.

Chiemeka emphasized that these amendments create new possibilities within Nigeria’s securities landscape, particularly for institutional investors like Pension Fund Administrators (PFAs). “In light of this, NGX and PENCOM will forge a close collaboration to deepen this space for the benefit of Retirement Savings Account (RSA) holders and the pension industry at large. Chiemeka also underlined NGX’s ongoing commitment to partnering with all relevant stakeholders in the market to enhance securities lending. “This collaborative effort aims to foster the growth and development of the capital market in Nigeria and across the African continent”.

Delivering his goodwill remarks, the Director of Registration, Exchanges, Market Infrastructure, and Innovation, SEC, Abdulkadri Abass, represented by Senior Manager, Franca Ebube, emphasized that SEC remains resolute in upholding a market that is just, organized, and efficient, prioritizing the safeguarding of investor interests. He highlighted that the recent provision within the Business Facilitation Act, which permits Pension Fund Administrators (PFAs) to partake in securities lending, will undoubtedly deepen the market and increase liquidity.

Corroborating Abass, Ibrahim Kangiwa, the Head of Investment Supervision at PENCOM, affirmed that the enactment of the Business Facilitation Act in 2023 empowered PENCOM to advance guidelines aimed at facilitating securities lending, working with NGX and other stakeholders. Kangiwa disclosed that the commission is actively working on developing these regulations and processes, with the intention of unveiling guidelines for PFAs by the end of the year.

Onome Komolafe, the Divisional Head of Business Services and Client Experience at CSCS, provided insights into CSCS’s efforts in the securities lending market. She elaborated on the pre-settlement and pre-trade aspects of these activities, while also highlighting CSCS’s involvement in the detachment process for securities lending.

Panel discussants including the CEO of PenOps, Oguche Agudah; CEO of Stanbic Nominees, Babatunde Majiyagbe; CEO of CardinalStone Securities, Peter Omoregie; and the President of the Fund Managers Association of Nigeria, Aigbovbioise Aig-Imoukhuede, attributed the limited participation in securities lending to lack of awareness and inadequate securities supply. They stressed the need for increased collaboration among stakeholders to boost growth and activity in the securities lending space.

August 9, 2023
SEC, PENCOM, NGX to host Webinar on Securities Lending

In line with its commitment to enhance investor participation in the Nigerian capital market, boost secondary market liquidity, and facilitate savings mobilization to drive economic growth, Nigerian Exchange Limited (NGX) in collaboration with the Securities and Exchange Commission (SEC) and National Pension Commission (PENCOM) is set to hold a Securities Lending Webinar on 9 August 2023 at 10am.

Themed, Business Facilitation Act 2023 as a catalyst for deepening Securities lending in Nigeria, the webinar will bring together various stakeholders, including retail and institutional investors, Pension Funds Administrators, Fund Managers, ETF Issuers, Trading License Holders, Regulators, and intermediaries in the Nigerian capital market. They will have the opportunity to gain insights into the securities lending landscape, product features, benefits for investors and intermediaries and the broader capital market. To participate, interested individuals can register for the free webinar at http://bit.ly/ngx-slw

The event, supported by the Central Securities Clearing System Plc (CSCS), Cardinalstone, Stanbic IBTC Nominees, and the Pension Fund Operators Association of Nigeria (PENOP), boasts an impressive lineup of speakers, offering insights and expertise from various key players in the Nigerian financial landscape. Among them are Mr. Temi Popoola, the Chief Executive Officer of NGX; Mr. Babatunde Majiyagbe, the Chief Executive Officer of Stanbic IBTC Nominees; Mr. Abdulkadri Abass, the Director of Registration, Exchanges, Market Infrastructure, and Innovation at SEC; Mr. Oguche Agudah, the Chief Executive Officer of PENOP; and Mr. Ibrahim Kangiwa, the Head of Investment Supervision at the National Pension Commission (PENCOM).

Other speakers include Mr. Aigbovbioise Aig-Imoukhuede, the President of the Fund Managers Association of Nigeria; Mr. Peter Omoregie, the Chief Executive Officer of CardinalStone Securities; Ms. Ronke Ayegbejeje, the Relationship Manager at Stanbic IBTC Nominees; Ms. Onome Komolafe, the Divisional Head of Business Services and Client Experience at CSCS; and Simi Ojumu, the Head of Sales at Absa Securities.

Securities lending is the market practice of temporarily transferring securities, for a fee, from their holder (the lender) to another party (the borrower), with the borrower agreeing to return the securities to the lender either on demand or at the end of the agreed loan term. This practice usually requires the borrower to collateralize the transaction with cash or other securities of a value equal to or greater than that of the lent securities, in order to protect the lender against counterparty credit risk. Securities lending plays an important role in capital markets by providing liquidity, which in turn reduces the cost of trading and promotes price discovery.

August 4, 2023
MTN, ETERNA, Access Corporation Lead Market Decline; Investors Lose N35.36 Billion

The Nigerian Equity Market ended the trading week on a negative note, as the NGX All-Share-Index (ASI) declined by 10 basis points (bps), closing at 65,198.08 points, in contrast to the previous session’s gain of 155 bps when it closed at 65,263.06 points.

The day’s negative performance was driven by investors taking profits in prominent stocks, including Eterna Oil (-9.83%), Access Corporation (-2.01%), MTN (1.07%), United Bank for Africa (1.05%), PZ (0.83%), and 23 other stocks.

As a result, the Year to Date (YTD) return decreased to 27.21%. Additionally, the market capitalization experienced a slight decline of 10%, closing at N35.48 trillion, which led to a reduction in investors’ wealth by N35.36 billion.

Market activity for the day showed mixed results, with the volume of traded shares declining by 18.45% to 363.15 million units. However, the value of traded shares increased by 19.39% to N6.07 billion.

The Market Breadth, which measures investor sentiment through the Gainers/Losers ratio, decreased to 1.00x from 5.10x in the previous session. This shift was due to 28 stocks appreciating, 28 stocks depreciating, and 60 stocks closing flat.

We anticipate a rebound in the coming week.

Currency Market

The Nigerian Naira appreciated by 4.31% against the US Dollar in the I&E Window, closing at a rate of N743.07/USD.

August 4, 2023
Nigerian Exchange (NGX) partners with the UK government’s MOBILIST programme

…by providing direct investment, technical assistance, advisory services, and/or enhanced visibility through the UK Government’s platforms, MOBILIST supports new scalable, replicable financial products to list on public markets

Nigerian Exchange Limited (NGX) will partner with the UK government’s Mobilising Institutional Capital Through Listed Product Structures (MOBILIST) programme to enable greater investment toward achieving the United Nations Sustainable Development Goals (SDGs) in Africa through products listed on the Exchange.

The partnership was announced during UK Foreign Secretary, James Cleverly’s two-day visit to Nigeria on Tuesday, 1 August 2023. Cleverly visited the NGX trading floor and said that collaboration between MOBILIST and NGX can help to catalyse and scale up public market investment products that support the climate transition and SDGs.

The MOBILIST programme aims to unlock the potential of public capital markets for sustainable finance in emerging markets and developing economies. According to the OECD, Africa’s sustainable financing gap until 2030 amounts to about $1.6 trillion and the continent needs about $194 billion in additional funding annually to achieve the SDGs by that year.^[1] MOBILIST was created to help direct some of the $250 trillion in private capital currently held in products listed on global stock exchanges to help meet this financing gap.

UK Foreign Secretary, James Cleverly said: “Today, I announce a new partnership between Nigerian Exchange and MOBILIST that will bring capital markets more squarely into financing economic development. It will support the climate transition and the achievement of the UN Sustainable Development Goals (UN SDGs).

MOBILIST supports new listings on public stock exchanges. That could be here in Nigeria, in Johannesburg or London. And that support could be technical, research-based, or could include equity investment from the UK government.

Developing countries need at least $3.9 trillion in additional financing per year to achieve the SDGs. MOBILIST will help. And it’s just one of British Investment Partnership’s programmes.”

Abubakar Mahmoud, SAN, OON, Chairman, NGX stated: “The UK remains Nigeria’s critical partner; especially in the areas of trade, exports, business, and investment and we welcome its government’s partnership on MOBILIST, which is in line with NGX’s long-term interest to direct greater investments towards achieving the UN SDGs through listed products. We will continue to forge strong partnerships that will foster the sustainable development of the Nigerian economy.”

Temi Popoola, NGX’s CEO, said:

“NGX remains firmly dedicated to promoting sustainable finance in Nigeria. This commitment drives us to continuously seek strategic partnerships with key stakeholders, including the UK Government. The Exchange, in collaboration with the Nigerian Government and industry stakeholders, played a leading role in advocating for and successfully issuing the inaugural green bond in 2017. Our collaboration on the MOBILIST program aims to further enhance our efforts in making the Nigerian capital market an attractive hub for investments that foster sustainable capital formation.”

MOBILIST Investment and Technical Assistance to NGX Participants

MOBILIST seeks to partner with financial institutions at the core of capital markets and will engage with and accept proposals from NGX participants (brokers, investment banks and intermediaries of public offerings). Whilst MOBILIST can only deploy equity capital, the programme can provide debt securities issuers with technical assistance funding.

A Request for Proposal has been published on the MOBILIST website. Interested parties can contact Severin Luebke, MOBILIST Team Leader [Palladium, MOBILIST Product Partner], at contact-us@ukbmobilist.com

August 3, 2023
NGX facilitates FG’s infrastructure drive, admits DMO’s N130bn Sukuk

Nigerian Exchange Limited (NGX) announces the listing of the Federal Government’s N130 billion Sovereign Sukuk through the Debt Management Office (DMO) on its platform. The 10-year 15.64% Ijara Sukuk due 2032 was listed on NGX today, Thursday, 3 August 2023.

According to DMO, the Sovereign Sukuk opened for subscription in November 2022 with an initial offer of N100 billion and garnered immense interest from investors with a remarkable subscription level of N165.25 billion. This represented over 165% of the amount offered. In a bid to accommodate the needs of diverse investors who subscribed to the Sukuk, N130 billion was allocated.

The total Sovereign Sukuk issued from 2017 till date currently stands at N742.557 billion and the proceeds have facilitated the construction and rehabilitation of over 75 roads and bridges across the country. DMO said in a statement, “The listing of the N130 billion Sovereign Sukuk on the NGX will expand the range of financial offerings available to investors in the capital market. The opportunity to buy and sell the Sovereign Sukuk will provide liquidity to investors and promote price discovery.”

Jude Chiemeka, the Divisional Head of Capital Markets at NGX, commended the Debt Management Office under the leadership of Director-General Patience Oniha for their effective implementation and commitment to following due process in infrastructural financing. He emphasized the significance of the Sovereign Sukuk issuance and subsequent listing on NGX.

“This listing demonstrates the federal government’s dedication to developing critical infrastructure through innovative and cost-effective financing structures. NGX is fully committed to providing a robust exchange infrastructure that facilitates efficient capital accessibility for the government to raise essential funds, addressing the infrastructural gap and boosting economic growth. The listing of the Sovereign Sukuk on the Exchange is seen as a positive move, offering an exit opportunity for existing investors and further strengthening the Nigerian capital market”.

August 3, 2023
UK to deepen investment relationship with NGX

The United Kingdom (UK) through its Foreign, Commonwealth and Development Office (FCDO) has stated that it will continue to focus on building future investment links and collaborate with Nigerian Exchange Limited (NGX) to ensure Nigeria’s economic potential is unlocked.

This was even as the UK government announced the Mobilising Institutional Capital Through Listed Product Structures (MOBILIST) partnership with the Exchange which will facilitate increased investment in sustainable development in Nigeria through products listed on the Exchange. Rt Hon. James Cleverly, UK Secretary of State, FCDO disclosed these during the Closing Gong Ceremony held on the floor of the NGX on Tuesday.

Cleverly noted that NGX, through its activities have a gravitational and attractive force to attract investment noting that investment fuels the economic activity, generates profit and unlocks the economic potential and feeds through jobs and prosperity for ordinary people for here in Nigeria and outside Nigeria.

He added that with the UK government would love to see more of dual listings while adding that developing countries need at least $3.9 trillion in additional financing if it is going to have credible chance of achieving their sustainability goals. According to him, investment is going to help unlock the economic potential of Nigeria and the U.K government will not only keep hold of its existing ties with Nigeria but will collaborate with the NGX to attract listings as well as investment in the capital market.

Commending the United Kingdom’s commitment to attaining Climate Neutrality by 2050 and its progress in transitioning to renewable energy sources, the Chairman, Nigerian Exchange Group Plc, Alhaji (Dr) Umaru Kwairanga said, “NGX remains fully committed to further strengthening its existing relationship with the UK by fostering even stronger partnerships and collaborations.”

On his part, the Chief Executive Officer, NGX, Temi Popoola, noted that the U.K’s inputs and importance is evident across the verticals of the Nigerian capital market. “We will continue to work with the U.K government on expanding the digital transformation process, deepening capital flows into our markets, promoting sustainability and climate change mitigation in the capital market”, Popoola stated.

August 1, 2023