Economy
Mutual Funds Gain N3b in Nine Months of 2016
By Quantitative Financial Analytics
It is no longer news that the Nigerian stock market has been choppy in 2016 with investors scrambling to uncover hidden opportunities. Of the 10 major market indices in Nigeria, four have recorded positive returns YTD as at the end of Q3.
The NSE all-share index boasts of a negative 1.7 percent return so far this year. Compared to similar period in 2015, this performance is actually an improvement.
By the end of Q3 2015, all the major indices, but two, were in the red with the all-share index at -9.92 percent. There seems to be an asset class that has not done so badly in the first nine months of 2016. That asset class is Nigerian Mutual Funds.
Going by data released by the Security and Exchange Commission and analysed by Quantitative Financial Analytics, mutual funds in Nigeria made an estimated N3 billion profit on a YTD basis by the end of Q3 2016.
Fund Level Analysis
Surprisingly, the volatility that characterized the equity market paid off as equity based funds made an estimated N1.425 billion profit. Fund by fund analysis indicates that all but the Paramount Equity Fund generated profits of varying amounts. Bond funds also held their own with an estimated N844 million gain with all but UBA Bond Fund and FBN Fixed Income Fund making profits of some sort. Three out of the 10 funds in the balanced fund category made losses but the category generated a total estimated gain of N209k.
The highest gain came from Stanbic IBTC Equity Fund with N642 million, followed by Stanbic IBTC Absolute Fund with N451 million, New Gold ETF took the third place with N293 million. The greatest losses were recorded by UBA Bond Fund and UBA Balanced Fund.
Fund Manager Level Analysis
Fund manager level analysis indicates that Stanbic IBTC Asset Management topped the chart with N1.57 billion gain. Of all the 11 funds being managed by Stanbic IBTC, only the Stanbic IBTC 30 ETF Fund ended Q3 with a loss. Asset & Resources Management Ltd (ARM) came second with N415 million gain while New Gold managers and FBN Capital Asset Mangers took the third and fourth positions with N292 million and N291 Million respectively. All the 4 funds being managed by ARM Ltd made gains while five of the six funds overseen by FBN Capital Asset Managers also recorded gains by the end of Q3. 2 out of the 3 funds being managed by FSDH Asset Management had positive returns while Lotus Capital Ltd recorded one positive and one negative return. On the other hand, only one out of the 4 funds being managed by UBA Asset Management Company made a gain.
Among the Fund Managers with perfect/clean records are Afrinvest Asset management whose two funds made gains, Alternative Capital Ltd.’s ACAP Canary Growth Fund recorded N115 million gain. Others are ARM Ltd with all 4 funds recording profits, AXA Mansard Investment’s two funds also ended the quarter with a YTD gain. First City Asset Management’s Legacy Short Maturity Fund and Legacy Equity Fund generated a total estimated N67 million gain while Investment-One also had a clean slate as well as Meristem Wealth Management Ltd. SFS Capital and New Gold Managers are also in the league. Sterling Capital Ltd also joined the league as all the 3 funds under its management generated gains.
By Modupe Gbadeyanka
The federal government has been asked by the Nigerian Bar Association (NBA) to suspend the implementation of the controversial tax laws.
In a reaction to the tax reform acts, the president of the group, Mr Afam Osigwe (SAN), the suspension of the laws would allow for a proper investigation into allegations of alterations in the gazetted and harmonised copies.
A member of the House of Representatives, Mr Abdussamad Dasuki, alleged that some parts of the laws passed by the parliament were different from the gazetted copy.
To address the issues raised, the NBA said it is “imperative that a comprehensive, open, and transparent investigation be conducted to clarify the circumstances surrounding the enactment of the laws and to restore public confidence in the legislative process.”
“Until these issues are fully examined and resolved, all plans for the implementation of the Tax Reform Acts should be immediately suspended,” the association declared.
It noted that the controversies “raise grave concerns about the integrity, transparency, and credibility of Nigeria’s legislative process.”
“These developments strike at the very heart of constitutional governance and call into question the procedural sanctity that must attend lawmaking in a democratic society,” it noted.
“Legal and policy uncertainty of this magnitude has far-reaching consequences. It unsettles the business environment, erodes investor confidence, and creates unpredictability for individuals, businesses, and institutions required to comply with the law. Such uncertainty is inimical to economic stability and should have no place in a system governed by the rule of law.
“Nigeria’s constitutional democracy demands that laws, especially those with profound economic and social implications, emerge from processes that are transparent, accountable, and beyond reproach. Anything short of this undermines public trust and weakens the foundation upon which lawful governance rests.
“We therefore call on all relevant authorities to act swiftly and responsibly in addressing this controversy, in the overriding interest of constitutional order, economic stability, and the preservation of the rule of law,” the organisation stated.
By Adedapo Adesanya
Demand for hot stocks, including MRS Oil Plc, buoyed the NASD Over-the-Counter (OTC) Securities Exchange by 0.52 per cent on Tuesday, December 23.
The energy company was one of the three price gainers for the session as it chalked up N19.69 to sell at N216.59 per share versus the previous day’s value of N196.90 per share.
Further, FrieslandCampina Wamco Nigeria Plc gained N2.95 to close at N56.75 per unit versus N53.80 per unit and Golden Capital Plc appreciated by 84 Kobo to N9.29 per share from Monday’s N8.45 per share.
Consequently, the market capitalisation went up by N10.95 billion to N2.125 trillion from N2.125 trillion and the NASD Unlisted Security Index (NSI) rose by 18.31 points to 3,570.37 points from 3,552.06 points.
Yesterday, the NASD bourse recorded a price loser, the Central Securities Clearing System Plc (CSCS), which gave up 17 Kobo to close at N33.70 per unit against the previous trading value of N33.87 per unit.
The volume of securities traded at the session went down by 97.6 per cent to 297,902 units from the previous day’s 12.6 million units, the value of securities decreased by 98.5 per cent to N10.5 million from N713.6 million, and the number of deals remained flat at 32 deals.
By value, Infrastructure Credit Guarantee Company (InfraCredit) Plc ended as the most actively traded stock on a year-to-date basis with 5.8 billion units exchanged for N16.4 billion. This was followed by Okitipupa Plc, which traded 178.9 million units valued at N9.5 billion, and MRS Oil Plc with 36.1 million units worth N4.9 billion.
In terms of volume, also on a year-to-date basis, InfraCredit Plc led the chart with a turnover of 5.8 billion units traded for N16.4 billion. Industrial and General Insurance (IGI) Plc ranked second with 1.2 billion units sold for N420.7 million, while Impresit Bakolori Plc followed with the sale of 536.9 million units valued at N524.9 million.
By Dipo Olowookere
It was another bullish trading session for the Nigerian Exchange (NGX) Limited as it closed higher by 0.59 per cent on Tuesday.
The market further rallied due to continued interest in large and mid-cap stocks on the exchange by investors rebalancing their portfolios for the year-end.
Yesterday, Aluminium Extrusion sustained its upward trajectory after it further appreciated by 9.96 per cent to N14.90, as Austin Laz gained 9.81 per cent to close at N2.91, Custodian Investment improved by 9.69 per cent to N38.50, and First Holdco soared by 9.35 per cent to N50.30.
Conversely, Royal Exchange declined by 7.22 per cent to N1.80, Champion Breweries shrank by 6.57 per cent to N15.65, NASCON lost 5.36 per cent to trade at N105.05, Sovereign Trust Insurance depreciated by 5.28 per cent to N3.77, and Japaul went down by 4.51 per cent to N2.33.
At the close of business, 29 shares ended on the gainers’ table and 27 shares finished on the losers’ log, representing a positive market breadth index and bullish investor sentiment.
This raised the All-Share Index (ASI) by 895.06 points to 153,354.13 points from 152,459.07 points and lifted the market capitalisation by N579 billion to N97.772 trillion from the previous day’s N97.193 trillion.
VFD Group finished the day as the busiest stock after it recorded a turnover of 192.0 million units worth N2.1 billion, GTCO exchanged 63.5 million units valued at N5.6 billion, Access Holdings traded 49.8 million units for N1.0 billion, First Holdco sold 45.8 million units valued at N2.3 billion, and Secure Electronic Technology transacted 38.3 million units worth N28.4 million.
In all, market participants bought and sold 677.4 million units valued at N20.8 billion in 27,589 deals compared with the 451.5 million units worth N13.0 billion traded in 33,327 deals on Monday, showing an improvement in the trading volume and value by 50.03 per cent and 60.00 per cent apiece, and a shortfall in the number of deals by 17.22 per cent.
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