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Economy

SEC Tasks Stockbrokers to Prioritise Interest of Investors

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Attract Stock Investors

By Dipo Olowookere

Stockbrokers in Nigeria have been charged to always prioritise the interest of investors over theirs so as to boost confidence in the capital market.

This charge was given by the Director-General of the Securities and Exchange Commission (SEC), Mr Lamido Yuguda, who said the agency would do everything possible to reduce poor market conduct to the barest minimum.

Speaking at the Annual Stockbrokers Conference of the Chartered Institute of Stockbrokers (CIS), Mr Yuguda said the commission will intensify monitoring and surveillance of the market and apply stiff sanctions to any operator who engages in unethical conduct.

According to him, capital market operators are the face of the market and they interact daily with investors and must demonstrate the highest level of integrity and transparency in conducting their activities.

“Poor conduct dissuades investors from our market and therefore counters our collective objective of broadening and deepening the market.

“We also expect that the institute will continue to make it mandatory for its members to undertake annual professional development programs that address emerging issues.

“I believe that this will go a long way in ensuring that the practitioners in the market are highly skilled and are equipped to make real impact towards growing the market,” the SEC chief said at the event themed Capital Market as a Catalyst for Economic Development and Sustainable Growth.

Mr Yuguda disclosed the SEC has led several initiatives to reposition the Nigerian capital market to better support sustainable economic growth and development through the articulation of responsive and adaptable rules to support innovation and access to capital for small and medium enterprises, promotion of good corporate governance, an improved registration process, an adequate and transparent disclosure regime, enhanced enforcement machinery and dispute resolution mechanisms.

“Most of our more recent efforts at developing our market are targeted at contributing to the growth of the national economy.

“For instance, the core objective of the 10-year Capital Market Master Plan is to position the capital market for accelerated development of the national economy.

“Some level of success has been recorded from its implementation so far and efforts are currently ongoing to re-launch it for better impact during the remaining period of its implementation.

“As stakeholders, it is important to have a common understanding of the role the capital market plays not just as a catalyst of economic development but the trend, drivers and preconditions for a robust and viable capital market. The World Bank acknowledges that there are many areas of this relationship where research has been found thin.

“It is equally important for investors to perceive the capital market and capital market intermediaries as working for them and not against them.

“May I, therefore, use this opportunity to implore the Institute to identify some specific areas that could be used as a stimulus to improve the current state of the market, such as; diversification of investment products; promotion of investor education and financial literacy; strengthening corporate governance and listing standards,” he said.

The DG assured that the SEC will continue to take steps that empower trade groups and professional associations for more effective market regulation reassuring of the commission’s commitment and determination to restore investor confidence, preserve market integrity and reduce systemic risk.

The SEC boss commended the CIS for organising the yearly event adding that the annual conference has over the years established itself as a major calendar event on the schedule of policymakers and market participants.

In his remarks, Chairman House of Representatives Committee on Capital Market, Mr Ibrahim Babangida, said the conference was an opportunity for the CIS to do an appraisal of its activities and impact in Nigeria’s economic growth and fashion out more and better ways to assist in alleviating the dwindling economy of the country as well as salvaging it from the present economic quagmire.

Mr Babangida said this year’s conference came at a time the parliament is embarking on the legislative activities in the passage of the 2022 Appropriation Bill submitted by Mr President and urged the stockbrokers to employ all their professionalism in collaborating with this legislative process.

“All the people of Nigeria want to see is a revamped economy, where there will be a great inflow of investments by investors with a resultant real and positive economic growth.

“I want to reiterate that Nigeria and indeed African countries know the critical role the Institute and indeed the capital markets can play in transforming our economy via making conscious efforts to urgently develop a world-class capital market. You must deploy all your arsenals to keep the vision of the Institute and indeed the expeditions of the Nigerian people and Africans at large.

“I assure that the House Committee on capital market and indeed the House of Representatives is always available to assist in any areas of legislation to actualise the vision of the institute and make the Nigerian capital market a world-class one,” he added.

Earlier in a welcome address, the president of CIS, Mr Babatunde Amolegbe, said the institute was committed to focusing on the economy and capital market advocacy with the intention of achieving an inclusive and efficient capital market as an essential tool for economic development.

“The capital market is still a virgin territory with so many opportunities available, so as stockbrokers you are only limited by your own imaginations.

“This conference is unique as it delivers in the area of new economic issues to ensure that the capital market contributes to economic growth,” Mr Amolegbe.

He said the institute has reviewed its membership rules and code of conduct to bring them up to world-class standards and ensure professionalism, adding that no person is permitted to perform core professional functions in the capital market without obtaining certification of the CIS.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via dipo.olowookere@businesspost.ng

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Economy

Champion Breweries, Others Champion 0.17% Growth on NGX

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Champion Breweries

By Dipo Olowookere

The key performance indicators of the Nigerian Exchange (NGX) improved by 0.17 per cent on Friday as the shares of Champion Breweries and 11 others gained points.

The positive momentum was sustained yesterday despite a weak investor sentiment caused by sell-offs in Oando, GTCO, Nigerian Breweries and 15 others.

From the analysis of the data from the bourse, the insurance, consumer goods and energy sectors depreciated by 0.71 per cent, 0.56 per cent and 0.46 per cent respectively, while the banking counter expanded by 0.06 per cent, with the industrial goods space closing flat.

At the close of trades, the All-Share Index (ASI) increased by 86.88 points to 51,705.61 points from 51,618.73 points, while the market capitalisation grew by N47 billion to N27.875 points from 27.828 points.

A total of 156.1 million stocks worth N1.8 billion were traded in 4,312 deals yesterday compared with the 223.3 million stocks worth N2.9 billion traded in 4,028 deals on Thursday, implying a decline in the trading volume and value by 99.93 per cent and 35.82 per cent apiece and growth in the number of deals by 7.05 points.

Oando was the most active stock during the session as it traded 19.3 million shares valued at N110.3 million, Linkage Assurance transacted 12.0 million stocks for N6.4 million, Transcorp exchanged 9.1 million equities valued at N11.4 million, Access Holdings sold 10.0 million shares for N85.326 while UBA exchanged 8.9 million shares valued at N66.7 million.

The biggest price gainer was Champion Breweries as it gained 10.00 per cent to sell at N3.74, John Holt appreciated by 8.62 per cent to trade at 63 kobo, May and Baker appreciated by 8.47 per cent to N3.97, International Breweries rose by 5.26 per cent to N6.00, while FBN Holdings grew by 4.46 per cent to N10.55.

The worst-performing stock was Livestock Feeds as it fell by 9.09 per cent to N1.40, Red Star Express lost 8.64 per cent to settle at N2.75, Unity Bank dropped 8.16 per cent to 45 kobo, Courteville depreciated by 6.00 per cent to 47 kobo, while FCMB retreated by 5.71 per cent to N3.30.

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Economy

19.2% Ease in FX Trades Bolsters Naira by 0.01% at I&E

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FX trades

By Adedapo Adesanya

A 19.2 per cent moderation in the value of foreign exchange (forex) transactions recorded at the Investors and Exporters (I&E) window of the FX market helped the Naira with extra weight to push down the value of the Dollar by 0.01 per cent or 5 kobo on Friday, June 24.

According to data obtained by Business Post from the FMDQ Securities Exchange, the exchange rate of the Naira to the Dollar at the market window was N420.12/$1 in contrast to N420.17/$1 it closed on Thursday.

The value of FX trades at the window was $162.98 million, $38.83 million lower than the $201.81 million achieved in the preceding trading day.

At the Peer-to-Peer (P2P) segment, the local currency further appreciated against the American currency by 0.32 per cent or N2 to trade at N618/$1 compared with the N620/$1 it was traded a day earlier.

But at the interbank window of the market, the Naira depreciated against the British Pound Sterling by N1.96 to trade at N510.02/£1 versus the preceding session’s N508.06/£1 and slid by N1.04 against the Euro to close the day at N437.60/€1 compared with N436.56/€1 of the previous day.

Meanwhile, the recovery recorded by TerraClassicUSD (USTC) in the cryptocurrency market on Thursday appeared to be short-lived as it lost 11.5 per cent on Friday to trade at $0.0100.

It was the only digital coin of the 10 tokens tracked by this newspaper to shed weight yesterday as Solana (SOL) posted a 10.3 per cent growth to settle at $42.28.

Ethereum (ETH) went up by 7.4 per cent to sell at $1,236.08, Dogecoin (DOGE) appreciated by 6.2 per cent to trade at $0.0691, Binance Coin (BNB) jumped by 4.3 per cent after a deal with Cristiano Ronaldo to quote at $241.40, Bitcoin (BTC) recorded a 2.7 per cent rise to trade at $21,508.22, Cardano (ADA) jumped by 2.6 per cent to $0.5053, Litecoin (LTC) leapt by 0.6 per cent to $57.02, Ripple (XRP) recorded a 0.07 per cent rise to trade at $0.3718, while the US Dollar Tether (USDT) gained 0.01 per cent to sell for $0.9995.

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Economy

NASD Exchange Closes Last Day of the Week 0.42% Higher

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NASD Investors' Portfolios

By Adedapo Adesanya

The last trading session of the week on the NASD Over-the-Counter (OTC) Securities Exchange closed on a positive note on Friday by 0.42 per cent.

This was influenced by the gains recorded by Niger Delta Exploration and Production (NDEP) Plc and Central Securities Clearing System (CSCS) Plc.

NDEP grew during the day by N18 or 10 per cent to close at N198.00 per unit compared to the previous day’s N180.00 per unit, while CSCS Plc rose by 20 kobo or 1.37 per cent to close at N14.80 per unit as against the N14.60 per unit it was previously sold.

At the end of the day’s trading, the NASD Unlisted Securities Index (NSI) gained 3.24 points to settle at 768.27 points compared with the earlier day’s 765.03 points.

In the same trend, the bourse’s market capitalisation closed at N1.011 trillion as investors expanded the total value of securities on the platform by N4.27 billion. On Thursday, the market capitalisation stood at N1.007 billion.

At the market, the total volume of shares bought and sold by investors increased by 251.7 per cent to 323,519 units from 91,997 units, the total value of transactions appreciated by 53.1 per cent to N8.9 million from N5.8 million, while the total number of trades went down by 15.4 per cent to 11 deals from 13 deals.

AG Mortgage Bank Plc finished the trading week as the most traded stock by volume on a year-to-date basis with the sale of 2.3 billion units worth N1.2 billion, CSCS Plc also retained the second spot with the sale of 674.2 million units valued at N14.1 billion, while Food Concepts Plc was in third place for trading 146.0 million units valued at N126.7 million.

In the same vein, CSCS Plc maintained its position as the most active stock by value on a year-to-date basis with a turnover of 674.2 million units valued at N14.1 billion, VFD Group Plc was in second place with 10.9 million units worth N3.2 billion, while FrieslandCampina WAMCO Nigeria Plc retained the third place with the sale of 9.6 million units valued at N1.2 billion.

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