Market was up friday ,e allotment comes alive tomorrow

Hello,

on friday , the market recorded the highest activity for last week .Market capitalisation of listed equities was 10,715,615,199.71 while index was54,905.36.The banking sub sector was the most active during the week with 2.5 billion shares worth N54b beign traded by investors Intercontinental bank plc,.PlatinumHabib bank plc and United Bank for Africe drove volume in this sector.Price gainers include Chevron -31.47,Total-11.62,Unilever-3.40.

Come tuesday july the first,E-Allotment will be launched in Abuja .E-Allotment will totally eliminate the use of certificates in transacting stock busioness as share allotment will be credited into investors account .e -allotment according to Director research and planning of SEC Mr Sylvester Akele ,will also  reducederastically the cost of printig certificates ,postageand other related costs .He also said the vstress of certificate verification will be reduced abd market efficiency enhanced .

tantalizers finally listed

 

hello,

Monday at the Nigerian Stock Exchange,Tantalizers was listed .A quick service  restaurant chain that began operations since 1997 ,the company holds a lot of promises .speaking at listing the managing director of the company Mrs Bose Ayeni said the company ’s first franchise shop was opened in Abuja,Nigeria in 2004 .Tantalizers which pioneered African Meal in  the quick service restaurarnt  business presently has 39 noutlets with 10 more to be  opened before the end of this year .The management of the company were advised to stay closer to their financial advisers and to regularly  make available their financial figures  in other  to make the best use of the their quotation by increasing investors’ confidence in their company

Menwhile market capitalisation monday stood at 10.5 trillion while index was 53,985.Gainers include chevron Nig.plc-15.35,Total Nig.plc 11.62,Nestle 5.00.

Did I tell you that I d love to hear from you .Ask me any question on the Nigerian Stock Market or simply air your view on articles on this page .e mail me via litedupnow @yahoo.com .

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E DIVIDEND TAKES EFFECT

HELLO,

the E -dividend mode of dividend payment was launched monday in lagos and has already taken effect with the payment last week of Oando and Nigerian Breweries shareholders through the system .Major stakeholders were present .I bring you a report on that

 

E DIVEND PAYMENT BEGINS

 

FINALLY ,e –dividend was lauched-in Lagos State . ‘Hence forth ,the crediting of dividends into share holdres acc ount will be done 24 hours after the company had paid the money ‘this statement by Mrs Oguntuwase who represented the Lagos Staste Governor Babatunde Fashola at the launch marked a change in the payment of dividend in the the Nigerian Stock Market .In fact the representative of Nigerian Inter Bank Clearing System –NIBSS,Mr Paul Lawal said that e dividend payment had already commenced with the payment of Oando and Nigerian Breweries shareholders as at last week .

Oguntuwase added that e –dividend will boost the image of the Securities and Exchange Commission and the Nigerian Stock Exchange adding that it is in consonance with the due process plan of the Federal Government

E dividend payment is the payment of dividend to shareholders online .

The launching which took place at Sheraton Hotel and Towers was attended by major stakeholders in the Nigerian Capital and Money Market was declared open by the Director General of the Securities and Exchange Commission who was represented by Mrs Daisy Ikhine.Mrs Ikhine says e –dividend will minimize unclaimed dividend ,eliminate dividend loss in transit ,discourage the forfeiture of dividends in the future and also enhance the ability of shareholders to immediately access and utilize the proceeds of their investments She added that the commission had issued formal letters to the respective stakeholders to meet their implementation modalities .Some of these modalities include meeting of payment obligations by the issuers immediately after the declaration of dividends at AGMS,The upgrading of the iformation technology infrastruture by Registrars ,The inclusion of shareholders data and information in the share transfer forms while banks are to authenticate shareholders signatures

NIBSS representative Mr Lawal in describing how the e-dividend works said that all that is needed is for the Registrars to have a computer ,a modem and a line that will be connected to NIBSS .He said that e- dividend is so structured in such way that files cannot be intercepted and that even if they are intercepted they will not be of use to a third a party

In addition ,the Nigerian Interbank Settlement System NIBSS in conduction with Registrars has produced an operational manual in other to ensure the success of the e – dividend. An educative pamphlet as also been made available in the three major Nigerian languages including pidgin

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The president of the Chattered Institute of Stock brokers-CIS,advised SEC to put in place a checks and balances measure in other to make sure that companies and other stakeholders play their part in the e –dividend mode of dividend payment

A financial analyst,Mr Amaeze Olisaemeka who spoke to us on the e- dividend says it has a lot of advantages which includes quick access to dividend by shareholders , the increase of liquidity in the system ,market tranparency and the boosting of investors confidence.

 

E dividend was first launched in Abuja on febuary 28^th by the Minister of State for Finance Mr Oluremi Babalola .

 

Mrs Ikhine also added that SEC will soon introduce e-IPO and E-Allotment ,which is expected to eliminate share certificate .She says that after the issuance of e- Allotment ,the issuance of share certificates will be by special request as some institutional investors may have a need for share certificates

 

 

 

bearish trend at the market .DGtalks to stock brokers and the financial press

Hello ,

The market on friday was bearish .Market capitalisation stood at 11.6 t,volume tradedwas 619,577,no of deals 16,164.while 16,164 deals were made.top gainers include Nestle-11.25,JBerger-5.73,Conoil-5.77.

Ipromised a talk with a notable stock broker.that talk comes up on monday june 16th .Meanwhile the management of exchange briefed the financial press and stock brokers on the recent price stabilisation on the market .The piece is just a few lines away.

THE FEDRAL government will be fund it’s 7 point agenda through the capital market .We have something on that too.

I want to know your view on all or some of these information .Iwant to hear from you .mail your comment through the comment page .i ll see you on monday.

 

PRICE CONTROL OF EQUITIES NORMAL ;NSE

BANKS NOT MANDATED TO STOP THE ISSUANCE OF LOANS TO STOCKBROKERS

 

 

At the stock market Thursday ,when the information went round that the Director General was going to brief stock brokers and the financial press –not too many people were unaware of the direction of the pendulum .If nothing else ,Okereke Onyiuke was going to speak on the price control of equities quoted on the floor of the exchange. But then other issues were raised.Infact they were almost thoroughly dealt with. Indiscriminate issuance of private placement was one re-capitalisation of stock broking firms another and the listing of stock broking firms on the floor of the exchange .

 

‘It is not unusual to find stock exchanges worldwide intervening to curb free fall of equities in the their market.’-This was the first submission of the Director General of the Nigerian Stock Exchange Dr.Ndii Okereke Onyiuke as soon as stock brokers and the financial press were seated. According to the DG ,she could not understand the frenzy about price control through executive fiat .She said the financial press should be very learned about how stock exchanges operate in other to properly inform the public when certain things occur in the market .She said that the fact that an equity depreciated in the price does not mean that the investor has lost his portfolio .She reiterated the fact that the market is very strong and has not been manipulated in any way .

The Director General also wondered aloud on the continuous fall of equity prices for this quarter .She said that stock brokers trading pattern will be examined to find out those brokers whose equities are constantly going down .She said there is a need for stock brokers to interact more among themselves during trading in other to gather enough facts about the equities they are buying and selling,the high automation at the exchange not withstanding .’ The need for a human angle cannot be overemphasized’,she said .

On the issue of a mandate from the Central Bank of Nigeria to Banks to stop the issuance of loans to stockbrokers for the purposes of buying shares, Okereke Onyiuke said there was no such directives from the Central Bank Governor Professor Chukwuma Soludo.She said that she personally called the Governor to confirm the rumour and he said he did not give any such directive .She therefore told stock brokers to visit their bankers .

Then came the issue of constant private placements .The Director General was of the opinion that the private placements were not being done in the proper manner. She said guide lines for floating private placements were constantly been flouted. She warned stock brokers to henceforth desists from participating in private placements .She Said that any stock broker found getting involved in private placements will be dealt with accordingly

She advised companies to follow the guide lines for private placements .The guidelines include :The participation of not more than 50 investors ,the establishment of a placement memorandum as against a prospectus ,no advertisement ,no completion board meeting amongst other procedures .

She made the gathering to understand that companies will henceforth be listed at the price at which they did their private placement .For example ,if a company did their private placement at 2.00 then their quotation prices should be at the 2.00.She noted that private placements have somehow contributed in the down ward trend of the market as investors were selling their shares to partake in private placements .Saying that most the private placements do not have the intention of coming to the market .

 

When the directive came that stock broking firms should re-capitalise to the tune N1b ,some stock broking firms in a bid to meet up with the capital requirement got involved in private placements in other to raise more money and also in preparation to being listed on the floor of exchange .This development the DG said will amount to double standard a.She said that stock broking firms are not supposed to trade on their own equities.She then told interested stock broking firms to register companies that will be engaged in other financial services complete with new names and forward such names to the exchange for approval before monies could be collected for private placements

 

 

As the gathering was interactive ,a stock broker ,Mr. Emeka Madubuike wanted to know what will happen to stockbrokers in companies that were not able to scale the re capitalisation exercise where a minimum of 40 and a maximum of 100 stock broking companies are expected to emerge .He observed that there will be a gap which will need to be filled as obtained in the banking sector where the Central Bank after the re capitalisation exercise had to license about 800 Micro finance Banks because there was a gap to be filled .The DG replied that the exchange might not have to establish a’Mcro Stock broking firms ‘,but that smaller investors will be taken care of .She assured stock brokers that dialogue is on going on the re- capitalisation exercise and some issues that might arise from the exercise .She advised stock broking companies to meet up with re capitalisation first .She however said that licenses of companies that did not meet up with the re capitalisation will be revoked as against allowing them to sell their licenses .

Another notable stock broker and former president of the chattered institute of Bankers Of Nigeria ,Mazi Okeckwukwu Unegbu told the exchange to look into the merging of stock broking firms and also to engage in constant discussion and training of the financial press in other for them to be better informed on how the market works .He said this will greatly influence the quality of information being disseminated by the financial press

GOVERNMENT PROJECTS TO BE FUNDED THROUGH THE CAPITAL MARKET

 

The 7 point agenda of president Umaru Musa Y’Aaradua will be funded thrugh the capital market .How to go about realising this will be the focus of the forth coming national conference on Financing The 7 POINT Agenda OF the Fedral Government through the Nigerian Caoital Market .

 

The chairman of the organising committee ,Mr.Kayode Falowo said that the conference which is being organised jointly by Securities and Exchange Commission (SEC),THE Nigerian Stock Exchange (NSE) and the Association of Issuing Houses of Nigeria (AIHN) was necessitated because of the dire need for development in Nigeria .He said that the seven point agenda is geared towards making Nigeria one of largest twenty economies in the world by 2020 and therefore should be given priority when it comes to implementation .Falowo said that among the important platforms to actualising the seven point agenda are power and energy ,food security and agriculture ,Wealth Creation and Employment and Mass Tranportation.Other platforms include Land Reform ,Security and Qualitative and Functional Education .

He said the Federal Government stance that it cannot shoulder the development responsibility alone has birthed the idea of funding through the capital market. He said that the conference which will provide the platform for mobilising the Nigerian business community to embrace government’s vision and embrace it’s realisation is expected to draw participation from key stakeholders on various sectors of the economy .He said that facilitators and resource persons are to be drawn from within and outside the contry He added that infrastructure is critical to the effective functioning of an economy .’this will develop the private sector which is the engine of any economy and positioning of country for global competetiveness’he said

H e also said that proceedings at the conference will prompt the various arms of the government into identifying means of financing the implementation of the 7 point agenda .’the capital market is expected to assist in the packaging and raising of funds required for the projects .The market will ensure transparency and accountability ,and also provide a variety of financing instruments such as equities,bonds ,mortgage backed securituies ,asset backed securities ,Real Estate Investment Trus among others .Falowo said

a no loss trading

hello

PRICES OF EQUITIES STABLE AT THE EXCHANGE – NO LOSS WAS RECORDED

 

The Stock Market Monday recorded a  history of no loss in the  prices of equities quoted on the floor of The Nigerian Stock Exchange.  31 equities appreciated in price while the remaining equities prices did not move up or down.  This is the first time in the history of the Nigerian Stock Exchange that such development will be recorded.  The development was as a result of executive fiat.  The price of equities have been on a downward trend for the past two  months.  That is since the second quarter of this year.  Some market experts believe this is a welcome development as investors were saved the heartache of continuous loss in the market due to the downward trend recorded recently in the market.

 

Amaeze Olisameka, a Stock Market expert said the development was in the interest of investors.  He said that the basic function of a regulator is the protection of investors ‘The questions is, has the fiat benefited investors or penalized investors.  Can any investor complain of lack of loss of value.  That should be the yardstick for measuring the fiat’.  Going further Olisaemeka said that regulatory bodies should only take actions that will sustain or enhance investors wealth and not subtract from it.  ‘Today no investor lost a kobo from the worth of his investment’.  He also opined that market regulatory intervention in equity pricing is a testimony of the fact that the regulatory bodies are not indifferent by standers, that they could be proactive in formulating guidelines and policies aimed at safeguarding shareholders investment.

 

Continuous downward slide in the prices of equities since the past two months has resulted in capital loss to investors.  Thus necessitating the executive fiat of equity price control.

 

This is the first time in the history of the Nigerian Stocks Exchange that executive fiat is used to control the prices of equities. 

 

Our money tip for today is –Consistently monitor your spending ,keep accurate records .

wednesday last week ,

 

By the way Ihad an enlightening talk with a foremost entrepreneurs’ financier in Nigeria.He speaks on the entrepreneurial climate in Nigeria among other things –enjoy it !

 

FINDING FINANCE FOR BUSINESSES IS BECOMING INCREASING CHALLENGING AS ENTREPRENEURS NEED FINANCE AS WELL EXPERTISE.GROFIN PROVIDES BOTH .OLU GBOLAHAN MARK-GEORGE SPEAKS ON BOTH SIDES OF ENTERPRENEURSHIP “FINANCING”

 

 

 

Q – Could you tell us what growth finance is all about?

 

A – Growth finance is an asset class of finance that defines between micro finance at the bottom end and private equity venture capital at  the top end. It used to be called the missing middle. And what it  is really is, is the finance for the small medium entrepreneur. It is the finance to grow your business, to take it up. You  already have an initial start or you are fairly  well set up to start and you are bigger than the small micro finance. . We are in between N6 million and N20 million.that ,s where we are – That’s the growth finance sector.

 

Q – Would you say that is a comparatively new sector?

 

A – Statistics world wide would show that the sector has  always existed. It’s just that it  is now that we are properly defining it. Growth Finance is taking the lead internationally as the pioneer, as the innovator, as the leader and the principles by which the class would be understood and defined. So it has always existed but what has happened is that it has always been given solutions in a haphazard manner. People have  always asked the people to fit their business to what is existing. Now we are tailoring the finance and the services to them. So the client is coming first and second.

 

Q – Is there a lapse in the banking sector that necessitated your kind of financing?

 

A – Finance is a very intricate industry. It has many sectors – so it would be incorrect for me to say- are the banks  doing what they are supposed to do. The banks have chosen to settle in certain areas. Because of the way they are set – up and because of their business module – they are functioning  in that manner. Which allows for specialists, developers and financiers such as  ourselves to come about. So the banks are doing what they are supposed to do for the mass market. We are also doing what we can do for the entrepreneur.

 

Q – Would you assess the entrepreneur scene in Nigeria?

 

A – Nigerians are very entrepreneurial. It is part  of the Nigerian culture. There are a lot of entrepreneurs available with good ideas. It’s just a question of harnessing those ideas. We have good ideas but going from good ideas to good business is a long diligent process. Which we try and help the entrepreneur to bring to pass.

 

Q – How does growth finance do this for the entrepreneur?

 

A – We have two  integrated products – which is  a product and a services. The product is the finance that we are giving  but we also  give what is called business development assistance which is advisory services to  help the business to grow and develop. We have learnt from previous studies that if you give somebody just the finance and he doest have the managerial skills it will not work and if you are give him the managerial skills without the finance it does not work either. So the product and the service that we sell is both, you receive the business development and you receive the finance once you have gone through the process and approval.

 

Q – How do you see the Nigerian entrepreneurial  scene by 2020?

 

A – I see it as very vibrant. Nigerian would play a significant role in the world economy and that can only happen by an entrepreneurial culture that is entrenched.  The Nigerian entrepreneur has a lot of opportunities to develop and to tap opportunities and creations that has already been done in other countries and to define it for our local content.

Thursday i  ll bring  you a chat with one of Nigeria’s brightest stock brokers .he talks on the recent trend in the market

 

 

And the bell rings!!Fidson Healthcare plc is listed on the floor the Nigerian Stock Exchange !This promises to be a good stock .First day trading saw the equity appreciating  with 5% .Experts say the equity should appreciate with at least 400 %in the next 6 months. By the way if the equity maintains the 5 percentage appreciation ,it will appreciate by a minimum of 600 % within the projected 6 months .The responsibility lies now with Fidson Management to  maintain good financial reports – this is the only way the price of the Fidson stock will maintain it’s present momentum . The company has good potentials as it’s earning per share is presently 2.74 .Market players say Fidson ‘s next quarter result should be strong enough to sustain the EPS .as at monday fidson closed at 9.10 .Keep your ears open .More listings will be coming to the market shortly e.g.-Tantalizers and Omatek 

 

bearish market,new listing

hello,

It was a bearish market Wednesday .All share index at the Nigerian Stock Exchange stood at 11,712,102,116,416.26 while index was 59,424.4.35 equities appreciated in price ,top among them is Total Oil Nig PLC-11.94, Mobil Oil Nigeria PLC -5.50 Julius BERGER Nig plc-5.45

And the bell rings!!Fidson Healthcare plc is listed on the floor the Nigerian Stock Exchange !This promises to be a good stock .First day trading saw the equity appreciating  with 5% .Experts say the equity should appreciate with at least 400 %in the next 6 months. By the way if the equity maintains the 5 percentage appreciation ,it will appreciate by a minimum of 600 % within the projected 6 months .The responsibility lies now with Fidson Management to  maintain good financial reports – this is the only way the price of the Fidson stock will maintain it’s present momentum . The company has good potentials as it’s earning per share is presently 2.74 .Market players say Fidson ‘s next quarter result should be strong enough to sustain the EPS .Keep your ears open .More listings will be coming to the market shortly e.g.-Tantalizers and Omatek

Our money management tip today is –have an eye for value