Economy
Shareholders Seek Buhari’s Intervention on Suspension of Oando Shares
By Modupe Gbadeyanka
President Muhammadu Buhari has been urged to use his good office to intervene in the suspension of shares of Oando Plc on the floor of the Nigerian Stock Exchange (NSE).
The Securities and Exchange Commission (SEC) placed a technical suspension on the shares of the leading Nigerian energy group last year.
The technical suspension made it possible for the shares of the firm to be traded at the stock market, but without price change.
A statement issued by the NSE on October 23, 2017 had noted that, “The shares of Oando Plc have been placed on technical suspension.
“Thus, the shares will be available for trading but there will be no price movement while the technical suspension subsists.”
The action followed outcome of a panel set up by SEC, which indicted Oando of violating some capital market regulations.
A forensic audit of the company was ordered by the apex regulator in the nation’s capital market, which observers are expecting to see the light of day.
Worried by the effect the crisis has had on them, some shareholders of the company appealed to President Buhari to see how he can influence SEC to lift the embargo place on the equities of Oando.
At a press conference on Tuesday in Lagos, a group known as Concerned Shareholders of Oando Plc urged Mr Buhari to use his good office to intervene in the crisis.
Speaking on behalf of the shareholders, Mr Patrick Ajudua, said they were not against the probe, but only want full trading activities to resume on the shares.
Since it was place on technical suspension last year, the shares of Oando have remained frozen at N5.99k per share.
SEC had explained that the halt in price movement was to stop any insider trading on the equities of Oando, which could give some shareholders an undue advantage.
At the press briefing held today at the Radison Blu Hotel in Ikeja, Lagos, Mr Ajudua said, “We agree that SEC has to do its part, by conducting the forensic audit, but they have to help us by lifting this technical suspension.”
“We appeal to President Muhammadu Buhari to intervene in the matter this afternoon,” he said at the briefing.
Last month, some shareholders of the firm under the aegis of Proactive Shareholders Association of Nigeria (PSAN) and Trusted Shareholders’ Association (TSA) staged a protest in Abuja, asking the apex capital market regulator to immediately kick off the audit.
The aggrieved investors also called for the immediate suspension of the management of Oando so as to allow an unhindered process.
The Oando crisis started when two key shareholders of the firm wrote petitions to SEC, alleging management of gross financial misconduct.
The two shareholders were Mr Dahiru Mangal and Ansbury Incorporated. Their petitions led to the suspension of Oando shares.
However, on Sunday, January 7, 2018, the Emir of Kano, Muhammadu Sanusi II, brokered a peace between Oando Plc’s group chief executive, Mr Adewale Tinubu, and Mr Dahiru Mangal.
Mr Mangal owns 17.9 percent share capital of Oando Plc and as part of the peace deal brokered by the Emir of Kano, Mr Muhammadu Sanusi, there would be consideration for Mr Mangal to have a representation on the Board of Oando subject to the provisions of relevant regulatory guidelines.
Days after the truce, the management of Oando Plc announced the appointment of Mr Bukar Aji as a Non-Executive Director.
By Dipo Olowookere
It was a good day for the stock market in Nigeria as it appreciated by 0.79 per cent on Friday to bring the year-to-date return to 0.66 per cent.
This was influenced by renewed interest across most of the sectors of the market, though the insurance index declined by 2.15 per cent when trading activities ended for the session.
Business Post reports that the banking counter appreciated by 1.97 per cent, the consumer goods space grew by 0.70 per cent, the industrial goods sector gained 0.09 per cent, and the energy counter closed flat.
Yesterday, the All-Share Index (ASI) increased by 810.26 points to 103,598.46 points from the preceding day’s 102,788.20 points and the market capitalisation by N497 billion to N63.645 trillion from Thursday’s N63.148 trillion.
Chellaram was the biggest price gainer on Friday after it chalked up 10.00 per cent to trade at N4.07, Guinness Nigeria also appreciated by 10.00 per cent to N77.00, SCOA Nigeria improved by 10.00 per cent to N3.96, Transcorp Power jumped by 7.96 per cent to N349.80, and Lasaco Assurance went up by 7.19 per cent to N3.28.
Conversely, Neimeth was the biggest price loser as it shed 9.88 per cent to N3.10, John Holt declined by 9.78 per cent to N8.30, International Energy Insurance depleted by 9.74 per cent to N1.76, Sovereign Trust Insurance fell by 9.40 per cent to N1.06, and Austin Laz lost 9.00 per cent to close at N1.82.
As for the activity chart, a total of 576.4 million stocks valued at N9.0 billion in 11,546 deals compared with the 394.4 million stocks worth N22.8 billion traded in 12,160 deals in the preceding session, indicating a rise in the trading volume by 46.15 per cent, and a decline in the trading value and number of deals by 60.53 per cent and 5.05 per cent.
Secure Electronic Technology was the busiest equity with 202.2 million units worth N151.8 million, Nigerian Breweries traded 42.1 million units valued at N1.3 billion, Japaul exchanged 34.6 million units for N79.7 million, Access Holdings sold 32.2 million units valued at N807.0 million, and Sovereign Trust Insurance traded 17.0 million units worth N18.3 million.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange recorded a 0.42 per cent gain on Friday, January 24 after three equities ended on the advancers’ chart at the close of business.
Nipco Plc gained N15.01 during the trading day to close at N165.11 per share versus N150.10 per share of the preceding session, Okitipupa Plc added N4.79 to end the session at N52.69 per unit compared with Thursday’s trading value of N47.90 per unit, and Central Securities Clearing System (CSCS) Plc expanded by 80 Kobo to trade at N24.00 per share, in contrast to the N23.30 per share it was sold a day earlier.
The gains recorded by these stocks pushed the value of the bourse higher by NN7.41 billion to N1.775 trillion from the N1.767 trillion recorded in the preceding session and the NASD Unlisted Security Index (NSI) grew by 6.93 points to wrap the session at 3,133.20 points compared with 3,120.13 points recorded in the previous session.
Yesterday, the price of FrieslandCampina Wamco Nigeria Plc went down by 92 Kobo to end the session at N38.58 per share, in contrast to the previous day’s N39.50 per share.
The volume of securities traded in the session decreased on Friday by 95.9 per cent to 16.3 million units from 407.4 million units, the value of shares traded yesterday slumped by 97.4 per cent to N10.2 million from N391.2 million units, and the number of deals declined by 23.3 per cent to 23 deals from 30 deals.
Impresit Bakolori Plc was the most active stock by value (year-to-date) with 406.5 million units worth N386.1 million, followed by FrieslandCampina Wamco Nigeria Plc with 4.3 million units valued at N170.4 million, and Geo-Fluids Plc with 9.1 million units sold for N44.3 million.
Impresit Bakolori Plc was also the most active stock by volume (year-to-date) with 406.5 million units worth N386.1 million, trailed by Industrial and General Insurance (IGI) Plc with 26.3 million units sold for N6.3 million, and Geo-Fluids Plc with 9.2 million units valued at N44.3 million.
By Adedapo Adesanya
The Naira extended its recent gaining spree by 1.12 per cent or N17.39 on the US Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Friday, January 24.
Yesterday, the local currency was traded in the official market at N1,531.20/$1 compared with the preceding trading day’s value of N1,548.59/$1.
The recent appreciation aligns with expectations that the Naira will appreciate in the first quarter of the year, backed by continued policy support by the Central Bank of Nigeria (CBN), with the latest being the launch of the FX Code due next week to enhance transparency in the market.
Also, the domestic currency improved its value against the Pound Sterling in the spot market on the last trading day of the week by N8.97 to quote at N1,903.24/£1, in contrast to Thursday’s exchange rate of N1,912.21/£1 and against the Euro, it gained N8.72 to finish at N1,605.17/€1 versus the preceding day’s N1,613.89/€1.
In the same vein, the domestic currency appreciated against the American Dollar in the parallel market yesterday to sell for N1,660/$1 compared with the N1,665/$1 it was traded a day earlier.
In the cryptocurrency market, there was profit-taking following earlier euphoria around US President Donald Trump’s ambitious “Stargate Project” announcement, which is a $500 billion commitment to enhancing the US AI infrastructure.
Crypto commentators believe this signals a shift toward reduced oversight with the pledge unveiled on Tuesday, bringing together tech giants OpenAI, Oracle, and SoftBank with an initial commitment of $100 billion, scaling to $500 billion over four years.
Solana (SOL) dipped by 4.9 per cent to trade at $247.14, Ethereum (ETH) dropped 2.8 per cent to $3,290.29, Dogecoin (DOGE) fell by 2.4 per cent to $0.3488, and Cardano (ADA) slid by 2.1 per cent to $0.9763.
Further, Ripple (XRP) went down by 1.9 per cent to $3.11, Binance Coin (BNB) shrank by 0.7 per cent to $687.71, and Bitcoin (BTC) declined by 0.6 per cent to $104,369.28, while Litecoin (LTC) appreciated by 3.9 per cent to $121.63, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.
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