Economy
Rules Governing Sukuk Listing Take Effect After SEC Approval
By Dipo Olowookere
The Nigerian Stock Exchange (NSE) last Wednesday disclosed that the rules governing the listing of Sukuk and similar securities have been approved by the Securities and Exchange Commission (SEC).
A notice released by the stock exchange to the investing public revealed that the rules were approved by SEC on March 17, 2016 and would take effect from Monday, July 23, 2018.
Business Post reports that the draft rules were considered by the Rules and Adjudication Committee of Council (RAC) on October 21, 2014, and approved for exposure to stakeholders for comments from October 29 to November 12, 2014.
Thereafter, the RAC considered the draft rules and stakeholders’ comments at its meeting of February 17, 2015, and approved the draft rules for submission to the National Council of the Exchange (Council).
It was further gathered that at its meeting of February 26, 2015, the council approved the draft rules for submission to SEC on March 5, 2015.
According to the approved listing rules obtained by Business Post, SEC said an issuer of sukuk must submit its listing application through a stockbroker after first appointing a Shari’ah adviser recognized or registered with the apex capital market regulator.
Such adviser, SEC explained will carry out primary responsibilities like ensuring that the applicable Shari’ah principles and any relevant resolutions and rulings endorsed are complied with; applying ijtihad (reasoning) to ensure all aspects relating to Sukuk issuance are in compliance with Shari’ah principles amongst others.
It was further stated that the NSE has discretion to admit and list the Sukuk on its platform and may even approve or reject the applications for listing, as it deems fit.
Furthermore, the NSE “may approve applications for listing and quotation of Sukuk or debt securities unconditionally or subject to such conditions, as it deems fit.”
SEC also disclosed in the rules that an Issuer shall, at least one month before the maturity date, announce the maturity date of each issuance of Sukuk or debt securities.
It stated that, “An issuer, which is a foreign corporation, shall announce to the NSE concurrently all information required to be publicly disclosed to its domestic regulatory authorities and other stock exchanges, if applicable.”
The management of SEC also said “an issuer shall announce its half year unaudited or audited financial statements on a consolidated basis within 30 days of the quarter or half year of the issuer’s financial year, and the statements shall state whether there is any abnormal circumstance that has affected or will affect the business and financial position of the issuer.”
“An issuer and its guarantor shall announce to the NSE their respective annual audited financial statements, together with the auditors’ and directors’ reports within three months of their respective financial years.
“In addition to the circumstances set out in the Listings Rules of the NSE, the exchange may at any time de-list an issuer from the Official List in any of the following circumstances: (a) upon the occurrence of any of the events which the Trustee has declared would render the Sukuk or debt securities to be immediately due and repayable pursuant to the Trust Deed; (b) upon the maturity or expiration of the Sukuk or debt securities; (c) upon full redemption of the Sukuk or debt securities; or (d) any other circumstances which in the opinion of the NSE, do not warrant the continued listing of the Sukuk or debt securities.”
According to the rules, Sukuk refers to investment certificates or notes of equal value which evidences undivided interest/ownership of tangible assets, usufructs (the right to enjoy a thing, property of which is invested in another) and services or investment in the assets of particular projects or special investment activity using Shari’ah principles and concepts approved by SEC.
By Dipo Olowookere
A 0.17 per cent growth was recorded by the Nigerian Exchange (NGX) Limited on Friday, extending the stay of the local bourse in the positive territory.
This uptrend was maintained despite profit-taking in the banking sector, which left its index down by 0.23 per cent at the close of trading activities.
Business Post reports that the insurance industry expanded by 4.04 per cent during the session, the energy counter improved by 1.05 per cent, and the consumer goods space gained 0.58 per cent, while the industrial goods sector closed flat.
Consequently, the All-Share Index (ASI) went up by 170.62 points to 102,353.68 points from 102,183.06 points and the market capitalisation grew by N541 billion to N62.851 trillion from N62.310 trillion.
There were 34 price gainers and 22 price losers yesterday, indicating a positive market breadth index and strong investor sentiment.
The trio of Caverton, Livestock Feeds and Sovereign Trust Insurance appreciated by 10.00 per cent each during the session to quote at N2.20, N5.94, and N1.10, respectively, as Neimeth jumped by 994 per cent to N3.43, and Royal Exchange increased by 9.88 per cent to 89 Kobo.
On its part, Academy Press lost 9.74 per cent to close at N3.15, PZ Cussons declined by 9.09 per cent to N25.00, DAAR Communications weakened by 8.64 per cent to 74 Kobo, Transcorp Power shed 5.91 per cent to settle at N46.95, and Dangote Sugar fell by 4.94 per cent to N38.50.
A total of 327.8 million shares valued at N11.8 billion were traded in 11,905 deals on Friday versus the 472.2 million shares worth N16.7 billion transacted in 12,336 deals on Thursday, representing a decline in the trading volume, value, and number of deals by 30.58 per cent, 29.34 per cent and 3.49 per cent apiece.
Access Holdings recorded the highest sales with 49.1 million stocks sold for N1.2 billion, Fidelity Bank exchanged 20.4 million shares valued at N359.0 million, UBA traded 20.1 million equities worth N681.0 million, Oando transacted 14.8 million shares for N998.1 million, and Universal Insurance traded 13.8 million stocks worth N8.7 million.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange extended its upward movement with a 0.26 per cent gain on Friday, January 17 amid renewed interest in unlisted stocks.
This raised the market capitalisation of the trading platform by N2.79 billion at the close of business to N1.075 trillion from the N1.072 trillion it closed in the preceding session.
In the same vein, the NASD Unlisted Security Index (NSI) went up by 8.08 points at the close of transactions to 3,111.91 points from the 3,103.83 points recorded at the previous session.
Yesterday, the volume of securities traded by investors went down by 606 per cent to 486,215 units from 1.2 million units, the value of shares shrank by 84.7 per cent to N2.8 million from N18.0 million, and the number of deals decreased by 65 per cent to 14 deals from the 33 deals carried out a day earlier.
In the final trading day of the week, there were three price gainers and one price loser, Geo-Fluids Plc, which lost 9 Kobo to finish at N4.70 per unit versus the preceding session’s price of N4.79 per unit.
On the flip side, Okitipupa Plc gained N3.60 to settle at N39.59 per share compared with the previous day’s N35.99 per share, Industrial and General Insurance (IGI) Plc added 3 Kobo to wrap at 36 Kobo per unit compared with the preceding session’s 33 Kobo per share, as FrieslandCampina Wamco Nigeria Plc improved its value by 49 Kobo to N39.65 per unit from N39.16 per unit.
At the close of business, FrieslandCampina Wamco Nigeria Plc remained the most active stock by value (year-to-date) with 3.4 million units worth N134.9 million, trailed by Geo-Fluids Plc with 8.9 million units valued at N43.0 million, and Afriland Properties Plc with 690,825 sold for N11.1 million.
The most active stock by volume (year-to-date) remained IGI Plc with 23.5 million units worth N5.3 million, followed by Geo-Fluids Plc with 8.9 million units valued at N43.0 million, and FrieslandCampina Wamco Nigeria Plc with 3.4 million units sold for N134.9 million.
By Adedapo Adesanya
The Naira extended its appreciation against the US Dollar by 0.06 per cent or N89 Kobo on the US Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Friday, January 17, trading at N1,547.58/$1 compared with the previous day’s value of N1,548.47/$1.
Market analysts expect that the Naira will appreciate in the first quarter of the year, backed by continued policy support by the Central Bank of Nigeria (CBN).
Vestance Nigeria, an agribusiness advisory firm, projects that the exchange rate will trade between N1,650/$1 and N1,750/$1 this year in its Resilience and Recovery for Agribusiness in 2025 outlook report.
“The Central Bank of Nigeria (CBN) will continue implementing reforms to enhance exchange rate market transparency while maintaining higher interest rates to curb inflationary pressures and attract foreign portfolio management,” it said.
Also, the Nigerian currency improved its value against the Pound Sterling by N20.84 to wrap the session at N1,883.59/£1 versus the preceding day’s N1,904.43/£1 and against the Euro, the Nigerian currency gained N10.45 to settle at N1,590.34/€1, in contrast to Thursday’s closing price of N1,600.79/€1.
In the parallel market, the domestic currency appreciated against the greenback by N5 yesterday to sell for N1,675/$1 compared with the N1,675/$1 it was traded a day earlier.
As for the cryptocurrency market, there was profit-taking amid excitement for a new era of crypto-friendly US government mounts ahead of Donald Trump’s inauguration next week.
Crypto investors expect a change from Mr Trump who promised on the campaign trail to position the US as a leader in the crypto space including creating a national stockpile of Bitcoin, in stark contrast to past years’ regulatory crackdowns and enforcements.
Litecoin (LTC) fell by 9.9 per cent to trade at $124.56, Ripple (XRP) slumped by 6.2 per cent to $3.10, Cardano (ADA) dipped by 4.9 per cent to $1.06, Ethereum (ETH) dropped 3.1 per cent to finish at $3,270.61, Binance Coin (BNB) went down by 2.3 per cent to $698.57 and Dogecoin (DOGE) depreciated by 2.2 per cent to $0.3927.
However, Solana (SOL) rose by 8.8 per cent to end at $235.12, Bitcoin (BTC) expanded by 0.8 per cent to $102,494.03, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) sold flat at $1.00 each.
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