By Dipo Olowookere
The positive performance witnessed lately around the shares of Champion Breweries Plc continued last week with a price appreciation of 59.49 per cent. During the five-day trading session, the brewer closed at N3.11 per unit compared with N1.95 per unit it finished the earlier week.
This upward trajectory was sustained on the back of the demand for the shares of the company, following information that its major shareholder, Heineken International, which also controls a larger stake in Nigerian Breweries, increased its control in the firm with the purchase of N5 billion stocks.
This has pushed the appetite for the company’s equities higher because of what Heineken could transform the organisation into.
Also last week, news of the federal government putting down N10 billion for the manufacturer of COVID-19 vaccines in Nigeria triggered buying pressure on Fidson and May & Baker, pushing the value of their respective stock higher by 30.11 per cent and 27.40 per cent to N6.05 per share and N4.65 per share.
In the week, Portland Paints grew by 20.69 per cent to settle at N3.50 per unit, while Julius Berger appreciated by 19.84 per cent to close at N22.65 per unit.
At the close of transactions, a total of 41 equities appreciated in price, lower than 53 equities in the previous week.
Business Post reports that there were price losers in the week; 34, higher than 29 equities in the previous week.
Leading the chart was Veritas Kapital Assurance, which fell by 28.57 per cent to end at 20 kobo per share, Sovereign Trust Insurance went down by 21.21 per cent to settle at 26 kobo per share, Academy Press lost 17.50 per cent to close at 33 kobo per unit, Niger Insurance depreciated by 14.81 per cent to finish at 23 kobo per unit, while Universal Insurance dropped 13.04 per cent to trade at 20 kobo per unit.
When trading activities were wrapped up for the week, the All-Share Index (ASI) and the market capitalisation of the Nigerian Stock Exchange (NSE) appreciated by 3.442 per cent respectively to close the week at 42,412.66 points and N22.187 trillion.
Similarly, all other indices finished higher with the exception of the oil/gas, which depreciated by 7.25 per cent while the ASeM and Growth indices closed flat.
A total of 2.6 billion shares worth N27.9 billion in 31,466 deals were traded by investors on the floor of the exchange, in contrast to a total of 4.3 billion shares valued at N26.0 billion that exchanged hands in 32,849 deals.
The financial services industry led the activity chart with 1.5 billion shares valued at N12.7 billion traded in 14,324, contributing 58.22 per cent and 45.53 per cent to the total equity turnover volume and value respectively.
The conglomerates followed with 363.3 million shares worth N821.4 million in 1,722 deals, while consumer goods recorded a turnover of 220.8 million shares worth N4.0 billion in 5,952 deals.
Trading in Transcorp, Union Bank and Zenith Bank accounted for 633.3 million shares worth N5.6 billion in 3,947 deals, contributing 24.64 per cent and 20.20 per cent to the total equity turnover volume and value respectively.
SEC Introduces Regulatory Incubation Program for Fintechs
By Modupe Gbadeyanka
A regulatory incubation (RI) program for financial technology (fintech) companies operating or seeking to operate in Nigeria has been introduced by the Securities and Exchange Commission (SEC).
A circular issued by SEC disclosed that this framework would be officially launched in the third quarter of 2021 and will operate by admitting identified Fintech business models and processes in cohorts for a one-year period.
Participation in the RI program will encompass an Initial Assessment Phase and the Regulatory Incubation Phase.
The categories to be admitted into each cohort will be determined based on submissions received through the Fintech Assessment Form and communicated ahead of each take-off date.
SEC explained that the scheme was designed to address the needs of new business models and processes that require regulatory authorisation to continue carrying out full or ancillary technology-driven capital market activities.
The RI Program has thus been conceived as an interim measure to aid the evolution of effective regulation which accommodates the innovation by fintechs without compromising market integrity and within limits that ensure investor protection.
It was disclosed that review of completed Fintech Assessment Forms will continue on an ongoing basis and those who consider that there is no specific regulation governing their business models or who require clarity on the appropriate regulatory regime for seeking the authorisation of the commission, are encouraged to complete the Fintech Assessment Form.
NGX Suspends Trading on GTBank Shares Ahead of Delisting
By Dipo Olowookere
In preparation for the eventual delisting of shares of Guaranty Trust Bank (GTBank) Plc from its trading platform, the Nigerian Exchange (NGX) Limited on Friday, June 18, 2021, placed the banking stock on a full suspension.
GTBank, a tier-one lender trading its equities on the exchange, intends to transform into a financial holding company (Holdco) so as to offer a wide range of services it is restricted to do.
Some years ago, the Central Bank of Nigeria (CBN) directed banks in the country to offload their subsidiaries not performing core lending services.
This was after many deposit money banks (DMBs) were delving into different business ventures, including insurance, stockbroking, asset management, amongst others.
For the CBN, which regulates the banking industry in Nigeria, most of these banks were losing focus and were not supporting businesses that need funds to grow and then stimulate the economy in the process.
To address this issue, the apex bank asked banks to sell off their non-banking assets and this forced many of them to offload their companies not offering core banking services.
However, there was an opening for banks to still delve into other sectors within the financial and capital markets and this was by operating as a Holdco.
A few of them towed this path, including FBN Holdings, Stanbic IBTC Holdings and FCMB Group.
Not wanting to be left out, GTBank is joining the party and to achieve this, it is delisting its banking arm, which is the popular GTBank from the stock exchange.
GTBank will now operate as a private company, while the new Holdco, Guaranty Trust Holding Company Plc, will now be a public company. The shares of this new firm will be listed on the NGX after the delisting of GTBank.
Last Friday, the stock exchange informed the investing community of the latest development, announcing the suspension of trading on GTBank shares.
In the circular sighted by Business Post, the NGX explained that the rationale behind placing GTBank stocks on full suspension is to “prevent trading in the shares of the bank” in preparation of its “eventual delisting”
Before trading on its stocks was suspended on Friday, GTBank closed at N28.55 on Thursday after appreciating by 50 kobo or 1.78 per cent.
DLM Capital Remains Best Structured Finance & Securitization Team in West Africa
A prominent developmental investment bank, DLM Capital Group, has emerged winner at the Capital Finance International (CFI) 2021 awards as the best-structured finance and securitization team in West Africa.
This award has been won consecutively in three years and affirms the group’s strong performance as a leading investment institution and asset manager.
CFI awards seek to identify the contributions of individuals and organizations that contribute significantly to the advancement of economies and truly add value for all stakeholders.
DLM Capital Group creates bespoke business solutions for alternative financing and harnessing funds for growth.
The group focuses on four key sectors — consumer credit, agriculture, microfinance, and education with a mandate to reduce poverty and improve living conditions for Africans while mobilizing resources for the continent’s economic and social development.
“In the past three years, our portfolio management team’s performance has remained consistent, and our clients have benefited immensely from exposure to our solutions, including the NMRC securitization deal and the DLM Primero BRT Securitization,” said Head of Corporate Communications and Marketing, DLM Capital Group, Ms Chinwendu Ohakpougwu.
“We are positioned to provide services to an expansive client base of retail, high net-worth and institutional customers.
“DLM Capital Group remains committed to constantly providing financial solutions that will enable our clients to make a difference, and we are honoured to be recognized once again as a reflection of the quality of support offered to our clients,” she added.
DLM has won recognition in West African capital markets, acting as a sole arranger to over 80 per cent of structured finance transactions in Nigeria — and all the securitization transactions. It provides deal structuring, advisory execution and capital raising services across the Nigerian capital market.
The institution recently launched an asset financing scheme and is preparing a venture into digital banking under its subsidiary, Sofri.
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