Economy
SEC Tasks Shareholders to Raise Relevant Observations at AGMs
By Aduragbemi Omiyale
Shareholders, especially those under registered groups, have been tasked by the Securities and Exchange Commission (SEC) to endeavour to raise relevant observations on key areas at the Annual General Meetings (AGMs) of companies listed on the stock exchanges.
The Director-General of SEC, Mr Lamido Yuguda, said this could be achieved by carefully reviewing audited reports and accounts of listed organisations prior to such yearly shareholders’ gatherings, urging them to uphold high ethical standards and promote new strategies to strengthen accountability among market participants in the Nigerian capital market.
According to Mr Yuguda, in 2016, pursuant to Section 8(y) of the Investments and Securities Act (ISA), the commission released a Code of Conduct for members of shareholders’ associations to guide their conduct during general meetings of public companies and their relationship with public companies outside the general meetings, and for other purposes connected therewith.
He said this code was still in force, noting that it is intended to ensure the highest standard of conduct amongst members and the companies with whom they interact as bona fide shareholders.
“The code is designed to ensure that association members uphold high ethical standards and make positive contributions in ensuring that the affairs of public companies are run in an ethical and transparent manner in compliance with the Nigerian Code of Corporate Governance and the SEC Corporate Governance Guidelines.
“I urge you to continue to abide by this Code of Conduct for Members of Shareholders’ Associations by being disciplined and ensuring good governance,” the SEC DG said at the 2022 edition of the Independent Shareholders Association of Nigeria (ISAN) Triennial Delegates Conference held in Lagos recently.
“We, therefore, urge this association to continue to improve performance of the function of monitoring of companies to contribute to their growth by reviewing Audited Reports and Accounts prior to AGMs to raise germane observations on key areas,” he added.
Mr Yuguda also urged the shareholders to continue to promote their core activities which centre on minority shareholder protection, advancement of corporate governance and development of a deep and robust capital market.
He described the theme of the conference, which focuses on reforming the judicial system in order to stabilise and encourage the growth of the Nigerian economy, as very important and relevant to the growth and development of Nigeria.
The DG commended the shareholders for the excellent support the agency has received from the various shareholder associations in the country, especially ISAN.
“ISAN is one of the largest and foremost shareholders’ advocacy groups in the country. We are proud to be associated with your core activities which centre on minority shareholder protection, advancement of corporate governance and development of a deep and robust capital market,” he said.
“The judiciary has also been contributing to the development of the capital market through its role of adjudicating over matters involving stakeholders in the capital market. As the SEC continues its important regulatory work of protecting both foreign and domestic investors who invest their funds in the Nigerian capital market, we will continue to partner with and engage the judiciary and other relevant stakeholders,” Mr Yuguda noted.
He stated that in an increasingly competitive global environment for capital flows, foreign investors consider the strength and independence of a regulator in their investment decisions, stressing that it is, therefore, a matter of urgent national priority to continue to send the right signals to the investing world that the Nigerian capital market is indeed soundly regulated by a strong and independent SEC, devoid of conflicting interference from any arms of government.
“The SEC is happy to have, over the years, enjoyed the support of the Nation’s courts in the quest to build a vibrant capital market that can contribute to achieving our national objectives.
“The judiciary’s important work impacts market integrity, investor confidence, market development and market fairness. It is clear that without the fair, prompt and effective dispensation of justice, capital markets can never develop. Therefore, in our quest to develop a vibrant capital market in Nigeria, we cannot afford to overlook the central role of the Judiciary,” he said.
However, the SEC DG stated that there was room for reform in the judiciary, especially on issues around investor protection and dispute resolution mechanisms in the Nigerian capital market, adding that the commission supports this reform and is happy to play a role in it.
“As a regulator of this dynamic market, the commission is focused on facilitating capital raising for sustainable national development and transformation of Nigeria’s priority economic sectors, thereby effectively contributing to the national economy.
“Our focus has always centred on the creation of an ecosystem whereby issuers, whether government, entrepreneurs and other businesses, can access capital efficiently. The process of raising money through the capital market plays a vital role in our economy and will help bring nascent ideas to life,” he added.
By Adedapo Adesanya
There was a 0.92 per cent correction at the NASD Over-the-Counter (OTC) Securities Exchange on Tuesday, February 17, pushed by declines in the share prices of 11 Plc and Central Securities Clearing System (CSCS) Plc.
11 Plc lost N28.80 during the session to trade at N263.00 per share compared with the previous day’s N291.80 per share, and CSCS Plc weakened by N4.84 to N75.25 per unit from N80.09 per unit.
Consequently, the NASD Unlisted Security Index (NSI) slid by 36.87 points to 3,964.55 points from 4,001.42 points, and the market capitalisation lost N22.06 billion to end N2.372 trillion compared with Monday’s value of N2.394 trillion.
Business Post reports that there were five price gainers yesterday, which could not lift the market.
They were led by FrieslandCampina Wamco Nigeria Plc, which appreciated by N5.89 to N77.24 per share from N71.35 per share, First Trust Mortgage Bank Plc grew by 8 Kobo to 90 Kobo per unit from 82 Kobo per unit, Geo-Fluids Plc increased by 8 Kobo to N3.58 per share from N3.50 per share, Lagos Building Investment Company (LBIC) Plc gained 7 Kobo to close at N3.48 per unit versus N3.41 per unit, and Acorn Petroleum Plc added 2 Kobo to sell at N1.33 per share compared with the previous day’s N1.31 per share.
During the session, the volume of transactions slid 91.0 per cent to 4.2 million units from 46.2 million units, the value of trades declined 88.4 per cent to N61.9 million from N532.8 million, and the number of deals shrank 2.3 per cent to 43 deals from 44 deals.
CSCS Plc remained the most active stock by value (year-to-date) with 31.9 million units exchanged for N1.9 billion, trailed by Resourcery Plc with 1.05 billion units worth N408.6 million, and Geo-Fluids Plc with 71.8 million units valued at N299.1 million.
The most traded stock by volume (year-to-date) remained Resourcery Plc with 1.05 billion units sold for N408.6 million, followed by Geo-Fluids Plc with 71.8 million transacted for N299.1 million, and CSCS Plc with 31.9 million units traded for N1.9 billion.
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited suffered a 0.47 per cent decline on Tuesday a day after hitting all-time highs in its key performance barometers.
This was influenced by profit-taking in Nigerian stocks, as investors cashed out from the gains recorded in the past trading sessions.
According to data, the All-Share Index (ASI) was down by 899.50 points during the session to 189,362.94 points from the preceding session’s 190,262.44 points, and the market capitalisation decreased by N577 billion to N121.553 trillion from the N122.130 trillion achieved a day earlier.
Business Post reports that the sell-offs were intense yesterday as four of the sectors tracked ended in the red.
The consumer goods space improved by 2.54 per cent, but this was not enough to save Customs Street from crumbling when market activity ended at 2:30 pm.
The banking index was down by 3.69 per cent, the insurance space tumbled by 0.57 per cent, the industrial goods counter depleted by 0.50 per cent, and the energy sector dipped 0.06 per cent.
Despite the loss, the market breadth index remained positive after the bourse closed with 44 price gainers and 40 price losers, implying strong investor sentiment.
The trio of Mecure, SAHCO, and Zenith Bank gave up 10.00 per cent each to trade at N93.60, N117.00, and N80.55 apiece, while RT Briscoe depreciated by 9.95 per cent to N14.12, and Tripple G crashed by 9.77 per cent to N6.00.
Conversely, ABC Transport zoomed off by 9.94 per cent to N9.07, Zichis jumped 9.93 per cent to N13.06, Red Star Express appreciated by 9.87 per cent to N29.50, Meyer grew by 9.81 per cent to N22.95, and Japaul increased by 9.78 per cent to N3.03.
As for the activity chart, investors traded 1.2 billion stocks worth N60.2 billion in 86,607 deals compared with the 1.1 billion stocks valued at N64.0 billion transacted in 64,821 deals on Monday, representing a fall in the trading value by 5.94 per cent, and a surge in the trading volume and number of deals by 9.09 per cent and 33.61 per cent apiece.
Access Holdings ended the session as the busiest equity after the sale of 103.5 million units for N2.7 billion, Zenith Bank traded 93.1 million units valued at N8.0 billion, Japaul transacted 73.8 million units for N223.6 million, First Holdco exchanged 54.3 million units worth N2.6 billion, and Secure Electronic Technology sold 45.9 million units valued at N83.3 million.
By Adedapo Adesanya
It was another wonderful day for the Nigerian Naira in the different segments of the foreign market (FX) market on Tuesday, February 17, as it appreciated against the United States Dollar at the close of business.
In the parallel market, it improved its value on the greenback by N30 to sell for N1,390/$1 compared with the previous day’s rate of N1,420/$1, and at the GTBank forex desk, it gained N4 to trade at N1,363/$1 versus the preceding session’s N1,367/$1.
As for the official market, which is known as the Nigerian Autonomous Foreign Exchange Market (NAFEX), the local currency gained N11.82 or 0.88 per cent to close at N1,335.96/$1 versus Monday’s price of N1,347.78/$1.
In the same segment of the market, the domestic currency chalked up N32.43 against the Pound Sterling to finish at N1,806.75/£1 compared with the previous day’s N1,839.18/£1, and gained N18.82 on the Euro to close at N1,579.24/€1 compared with the N1,598.06/€1 it was traded a day earlier.
Improved foreign exchange supply levels following recent high demand pressures helped to sustain the currency’s advance. A portion of the delayed demand was eliminated with licensed Bureau De Change (BDC) businesses fully helping to alleviate any development.
While other supply sources, including exporters, non-bank corporations, and other market actors, pause stoked pressures on the exchange rate, their presence is anticipated to increase liquidity and flow.
Foreign reserves were last reported at $47.80 billion after appreciating by $135.75 million. The build-up in reserves has been supported by favourable external conditions, including stronger oil-related inflows and improved FX market stability.
The market is looking forward to a rate cut when the Monetary Policy Committee (MPC) meets next week after inflation decelerated further to 15.10 per cent.
Meanwhile, the cryptocurrency market was down as software stocks continued to plunge, creating a ripple effect on the digital assets.
Market analysts noted that consolidation is expected as crypto searches for a new narrative strong enough to pull capital back from AI stocks and commodities.
Litecoin (LTC) declined by 1.8 per cent to $53.99, Bitcoin decreased by 1.7 per cent to $67,446.46, Cardano (ADA) dropped 1.5 per cent to trade at $0.2810, Binance Coin (BNB) slumped 1.4 per cent to $617.60, Solana (SOL) depreciated by 0.9 per cent to $84.97, Ripple (XRP) shrank by 0.7 per cent to $1.47, and Dogecoin (DOGE) went down by 0.04 per cent to $0.1005.
On the flip side, Ethereum (ETH) appreciated by 0.2 per cent to $1,992.22, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 apiece.
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