- Abiodun urges capital market to partner with FG, states to raise funds for infrastructure
BY FESTUS OKOROMADU, ABUJA
Trading activities on the Nigerian stock market continued on the upward trend on Thursday as the benchmark index, the NGX All-Share Index advanced by 0.07 percent to close at 70,819.58 points to register four consecutive days of bargain hunting.
Gains in Tier 1 banking stocks, namely GTCO, UBA and FBNH which rose by 0.56 percent, 0.24 percent and 3.36 percent respectively, offset losses in ZENITHBANK, STANBIC, and DANGSUGAR down by 0.45 percent, 0.07 percent, and 0.32 percent each to keep the market on a positive beat.
Consequently, the year-to-date gain of the NGX ASI climbed to 38.18 percent, while the market capitalization advanced by N25.42 billion to close at N38.91 trillion.
Interestingly, the market closed on the green track despite the Exchange recording a higher number of losers with 27 stocks as against gainers 26 stocks.
Share prices of stocks such as UPDC, MECURE, SCOA, JAPAULGOLD and UACN closed higher by 9.91 percent, 9.85 percent, 9.73 percent, 9.58 percent and 8.47 percent, respectively.
A breakdown across sub-sector gauges indicated broad-based losses as most of the sub-indices tracked closed southwards.
The NGX Insurance, the NGX Consumer Goods, and the NGX Industrial indices fell by 1.05 percent, 0.06 percent and 0.02 percent, respectively. On the flipside, the NGX Banking index experienced gains of 0.21 percent, while the Oil/Gas sector had a lull performance.
Meanwhile, market activity was bullish as the total volume rose by 1.94 percent to 569.19 million units while the traded value surged by 71.44 percent to N16.79 billion; although, the total deals for the day declined by 3.62 percent to 6,169 trades. JAPAULGOLD was the most traded security in terms of volume with 113.96 million units worth N208.55 million traded during the Thursday session, changing hands in 174 deals.
Abiodun urges capital market to partner with FG, states to raise funds for infrastructure
Meanwhile, Ogun State Governor, Dapo Abiodun, on Thursday advocated collaboration between the States, Federal Government, and the capital market in raising funds for the provision of needed infrastructure in the country.
Governor Abiodun who spoke as the special guest of honour at the 27th annual conference of the Chartered Institute of Stockbrokers held in Abeokuta, noted that basic infrastructure was key in engendering socio-economic development as no country could expand its economic base without adequate infrastructure.
Governor Abiodun said the stock exchange serves as a veritable source of funds, which governments can tap into for the execution of various projects, adding that Ogun State is willing to take advantage of this in the near future.
The governor said, “The stock exchange is extremely important to the economy of any country. In the case of Nigeria, they should look at how they can ensure that we have transparency, accountability, and good governance on matters that relate to the oversight and operations of the stock exchange.
“On the other hand, we can find ways to collaborate with the exchange and how the exchange can help in aggregating the required capital to provide the needed infrastructure for this country because what is required to uplift and unlock the economy of any country is infrastructure and if the capital market can take particular interest in that, every other thing will be positively impacted in multiplying effects.
“So, it is important for us to look at how the subnational and even the Federal Government can collaborate and partner the stock exchange to unlock the much needed infrastructure of Nigeria. You can come to Ogun State by road, rail, or by air, that is because we found the fund to achieve that.”
While emphasizing that the comparative evolution of Nigeria’s capital market and others around the world is necessary, Governor Abiodun charged the conference to deliberate extensively on how the capital market could be a veritable source of capital aggregation that can fund the much needed infrastructure and enhance the growth of local businesses to provide employment and help in economic diversification.
Governor Abiodun expressed the hope that the conference’s deliberations and discussions would center on the methodological review of trends in the global financial market and the urgent need to domesticate the inherent prospect and opportunities for the purpose of developing the country’s financial market.
The governor, who described the theme of this year’s conference as apt, opined that it would not have come at a better time than now considering the exigencies of critical decisions that are required to turn around and transform current trends in both the capital market and the overall economy.
The state helmsman informed the stock brokers that his administration has further opened up the state for more local and foreign investors by introducing various business friendly policies and the provision of the required infrastructure, adding that the state has increased it’s ranking on the ease of doing business index.
Governor Abiodun also disclosed that the state’s Agro Cargo Airport being constructed would soon commence commercial operation, just as a dry port at Kajola that would serve over 6,000 manufacturing firms in the state would soon come on stream.
In his welcome address, the President and Chairman of the Institute, Oluwole Adeosun, noted that the capital market plays important role in the development of the economy of any nation, adding that the conference would ensure that members from all over the country bond together in brotherhood irrespective of where they are located.
Noting that the conference would highlight the opportunities inherent for investors, Adeosun said that 122 young and distinguished professionals would be admitted as full members of the institute.
He said the conference would also witness the elevation of 52 associates to the rank of fellow in the professional category.
SEC approves Royal Exchange’s right issue offering of 4.116bn shares
Also, the management of Royal Exchange Plc says it has obtained approval from the Securities and Exchange Commission to conduct the signing ceremony about the proposed right issue of 4,116,296,059 ordinary shares of 50 kobo each at 50 kobo per share.
The company in a notice to the Nigerian Exchange Limited on Thursday said the right issue will be based on four new ordinary shares for every five ordinary shares held in the company.
The notice signed by the Company Secretary, Irene Chukelu, Mazars Ojike, and Partners, disclosed that the qualification date for the rights issue is 6th March 2023, subject to the approval of the executed offer documents by the SEC.
It noted that the application list is expected to open on November 29, 2023, or any other date approved by the Commission and shall open for a maximum period of 28 days.
“Rights circular will be distributed to shareholders by the company’s registrars, while application forms will be made available on the websites of the company and the registrars for ease of access.
“At the appropriate time, shareholders are advised to contact their stockbrokers or financial advisers for more details of the offer,” the company noted.
Meanwhile, the suspension earlier placed on Royal Exchange Plc by the regulatory subsidiary of the Nigerian Exchange Group Plc, NGX Regulation Limited, has been lifted.
Royal Exchange is an asset management company in Nigeria, which also offers insurance protection to its clients.
On July 11, 2023, trading in the shares of the company was suspended as a result of the failure of the board to file its financial statements for the perusal of the investing community.
But after filing its outstanding financial accounts, the embargo placed on the firm was lifted.
The suspension was done according to a circular issued by NGX Limited which stated, “We refer to our market bulletin dated July 11, 2023, with Reference Number: NGXREG/LRD/MB26/23/07/11 wherein we notified trading license holders and the investing public of the suspension in the trading on the securities of Royal Exchange Plc for non-compliance with the provisions of Rule 3.1: Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of The Exchange (Issuers’ Rules), which provides that, If an Issuer fails to file the relevant accounts by the expiration of the Cure Period1, the exchange will: a. Send to the Issuer a Second Filing Deficiency Notification within two business days after the end of the cure period; b. suspends trading in the issuer’s securities, and c. notify the Securities and Exchange Commission (SEC) and the market within 24 hours of the suspension.
“Royal Exchange Plc, whose securities were suspended on July 11, 2023, has now filed its outstanding financial accounts.
“Given the company’s submission of the outstanding financial statements, and under Rule 3.3 of the Default Filing Rules, which states that the suspension of trading in the issuer’s securities shall be lifted upon submission of the relevant accounts provided the exchange is satisfied that the accounts comply with all applicable rules of the exchange.
“The Exchange shall thereafter also announce through the medium by which the public and the SEC were initially notified of the suspension, that the suspension has been lifted, trading license holders and the investing public are hereby notified that the suspension placed on trading on the shares of Royal Exchange Plc was lifted on September 13, 2023.”
