The Securities and Exchange Commission (SEC) has restated its commitment to further educate and enlighten investors in the Nigerian capital market to enhance their ability to make informed investment decisions.
The Acting Director General of the Securities and Exchange Commission (SEC) Ms. Mary Uduk stated this at the planning and writing workshop for the development of Capital Market Studies Curriculum (CMSC) for Basic and Senior Secondary Schools levels held in Lagos yesterday.
Uduk said that the commission has been in the vanguard of inculcating financial literacy for quite a long time because the SEC has realised that it is very important for students to imbibe the culture and habit of being financial literate and to be familiar with the operations of the capital market.
“This partnership with the Nigerian Educational Research and Development Council (NERDC), to actualise this ground breaking capital market literacy programme, is part of the SEC’s effort at vigorously pursuing the implementation of one of the essential initiatives of the 10-year Nigerian Capital Market Master Plan,” he said.
The DG said the implementation programme kick-started with the signing of a Memorandum of Understanding between the commission and the NERDC in 2016, to develop a Standalone Capital Market Studies (CMS) curriculum for infusion into Basic and Senior Secondary Schools.
“I am happy to announce that, after a successful workshop for contents selection, the stage is now set for the planning and writing of the standalone curriculum.The commission recognises the efforts required for other stages of the programme and remain confident that with the active support and commitment of our stakeholders we will complete this project,” she stated.
In his address, Executive Secretary, (NERDC) Prof. Ismail Junaidu said the capital market connects the financial sector with the real sector of the economy and in the process, facilitates real sector growth and economic development.
He added that this increases the proportion of long term savings that are channelled to long term individuals/households and channels them into long term investments and fulfils the transfer of current purchasing power from surplus sectors of the economy to deficit sections.
Junaidu, described capital market education as a strategic imperative which requires a comprehensive curriculum run by competent academic and professional personnel adding that early involvement of the youth in Capital Market Studies could derive profit, growth and perhaps be the much sought antidote to over dependence on paid employments was one of the reasons the SEC approached NERDC to mainstream capital market issues into the national curriculum.
The Nigerian equities market recorded a positive performance last week as it recovered part of the losses suffered the preceding week.
The development followed renewed buy interest in bellwether stocks, which led to the Nigerian Stock Exchange All-Share Index (NSE ASI) rising 0.23 per cent to close at 32,200.21, compared to a decline of 2.38 per cent the previous week.
In spite of the corporate earnings for the nine months ended December 31, 2018, that showed relative improvement, the market had closed in the bear territory two weeks ago.
However, a renewed buy Interest in bellwethers such as Nestle Nigeria Plc, Seplat and Nigerian Breweries Plc reversed the negative trend. While the NSE ASI rose 0.23 per cent, market capitalisation added N27.5 billion to close at N11.756 trillion.
Similarly, all other indices finished higher with the exception of the NSE Banking, NSE Insurance, NSE Industrial Goods and NSE Pension Indices that finished lower by 0.47 per cent, 1.90 per cent, 3.81 per cent and 0.31 per cent respectively.
But analysts at Cordros Capital Limited noted that despite recent gains, outlook for the market remained negative in the short to medium term, amidst political concerns surrounding the 2019 elections, and absence of a positive market trigger. “However, positive macroeconomic fundamentals remain supportive of recovery in the long term,” they added.
In the United States (US), the midterm elections impacted positively on the markets.
According to Afrinvest (W.A), the outcome of the elections triggered a global equities rally as the Democratic Party won control of the House of Representatives for the first time in eight years, although markets later pared gains towards the end of the week.
The implication of the election outcome was that the House would exercise more oversight over President Trump’s decisions, which could potentially result in some measure of calm, especially as it relates to global relations.
However, this could also mean further divisiveness and conflict that would eventually result in slow paced reforms and decision making, which are a bad signal for investors.
The performance of developed markets was largely bullish, even as sell offs increased at the end of the week, due to fears of a further interest rate hike by the US Federal Reserves. In the US , the S&P 500 closed higher by 3.1 per cent and the Nasdaq Composite was up by 2.4 per cent However, Hang Seng was the only index that recorded a decline (-3.7per cent) because of the expected FED interest rate hike and a slowing economy.
Across markets in BRICS, only two of five indices were up. Brazil’s Ibovespa had the worst return at -3.2 per cent , followed by China with a decline of 2.9 per cent . In view of the ongoing trade war with the US, China is offering tax breaks and more financing to support private sector companies affected by the trade tensions, as well as a slowing economy. Similarly, South Africa’s FTSE/JSE All-Share was down by 1.9 per cent. On the other hand, Russia RTS and India’s BSE Sens Indices recorded positive performances, increasing 0.5 per cent W-o-W respectively.
In Africa, there was a bullish performance as four of six markets tracked recorded gains. Egypt’s EGX30 had the best return with a gain of 4.0 per cent W-o-W, followed by Morocco’s Casablanca MASI which increased 1.4 per cent while Mauritius SEMDEX increased by 0.4 per cent. Ghana’s GSE Composite and Kenya NSE-20 declined by 1.1 per cent and 0.4 per cent respectively.
In Asia and Middle East, there was a bearish performance as four of the five markets recorded negative returns due to expectations of an interest rate hike by the US Fed. UAE ADX General Index was worst hit, sliding 2.1 per cent, trailed by Turkey’s BIST 100 Index which declined 1.2 per cent while Thailand SET and Qatar DSM 20 Indices declined 0.8 per cent apiece. On the positive side, Saudi Arabia recorded an increase of 1.8 per cent.
Market Turnover
Meanwhile, market total turnover in Nigeria was 1.079 billion shares worth N18.196 billion in 14,372 deals compared with 1.267 billion shares valued at N20.346 billion that exchanged hands in 15,088 deals the previous week.
The Financial Services Industry led the activity chart with 909.849 million shares valued at N12.765 billion traded in 7,822 deals, thus contributing 84.3 per cent and 70.2 per cent to the total equity turnover volume and value respectively. The Consumer Goods Industry followed with 52.651 million shares worth N3.342 billion in 2,876 deals. The third place was Oil and Gas Industry with a turnover of 36.318 million shares worth N674.243 million in 1,324 deals.
Trading in the top three equities namely Zenith Bank Plc, Access Bank Plc and FBN Holdings Plc, accounted for 557.380 million shares worth N9.434 billion in 3,231 deals, contributing 51.6 per cent and 51.8 per cent to the total equity turnover volume and value respectively.
Also traded during the week were a total of 4,065 units of Exchange Traded Products (ETPs) valued at N17,357.55 executed in 1 deal compared with a total of 15,168 units valued at N216.251 million that was transacted two weeks ago in nine deals.
A total of 78,261 units of Federal Government Bonds valued at N78.378 million were traded last week in 61 deals compared with a total of 14,581 units valued at N14.472 million transacted the previous week in 34 deals.
Price Gainers and Losers
The price movement chart showed 27 equities appreciated in, higher than 18 in the previous week, while 39 equities depreciated in price, lower than 42 of the previous week. UAC of Nigeria Plc and NPF Microfinance Bank Plc led the price gainers with 11.1 per cent apiece. Presco Plc trailed with 10.6 per cent, just as NAHCO Plc and John Holt Plc went up by 10 each.
MCNichols Plc and Veritas Kapital Assurance Plc and Nestle Nigeria Plc garnered 9.7 per cent, 8.0 per cent and 7.4 per cent in that order, while Seplat and Diamond Bank Plc chalked up 6.9 per cent and 6.6 per cent respectively.
Conversely, Mutual Benefits Assurance Plc led the price losers with 23.3 per cent, trailed by Flour Mills of Nigeria Plc with 16.7 per cent. Lafarge Africa Plc shed 14.2 per cent, just as Cement Company of Northern Nigeria Plc lost 11.6 per cent.
Other top price losers included: Oando Plc (10.5 per cent); PZ Cussons Nigeria Plc (10 per cent); UACN Property Development Company Plc (9.6 per cent); Pharma-Deko Plc (9.5 per cent); Regency Assurance Plc (9.1 per cent) and Prestige Assurance Plc (8.9 per cent).
Consolidated Hallmark Insurance Plc (CHI Plc) has recorded a revenue of N5.4 billion and a profit of tax (PAT) of N422 million for the nine months ended 30 September 2018. The revenue growth represented an increase of 19.7 per cent from N4.5 billion recorded for the corresponding period of 2017.
A further breakdown of the results showed that its investment income grew from N611 million to N746.5 million in 2018 which represented 22 per cent increase. Total assets of the company rose by 11.56 per cent from N9.4 billion in 2017 to N10.5 billion. A profit before tax of N422 million was recorded during the period under review when compared with the N360 million, indicating 17.2 per cent increase.
Also, there was 13.3 per cent growth in the net underwriting profit from N836.9 million in 2017 to N948.3 million. Although it’s claims expenses rose significantly by 96 per cent from N2.066 billion in 2017 to N4.057 billion, this was cushioned by the robust reinsurance arrangement in place. The claims expenses percentage increase reaffirms the company’s commitment to fulfilling its obligations to its customers through prompt claims settlement.
Commenting on the financial performance, Managing Director/CEO, CHI Plc, Mr. Eddie Efekoha, stated that the result clearly showed the company’s relentless efforts to meet and exceed customers’ expectations and also deliver good returns to its shareholders.
“We are excited to report a stronger third quarter financial result. Our strong business performance made possible through capacity expansion and digital channels optimisation drove revenue growth in this quarter and we remain resilient to do much more for our shareholders,” he said.
CHI Plc has been consistent in compliance with the insurance industry and capital market regulations, with prompt filing of financials returns, remittance of taxes, and adherence to strong corporate governance practices. The company has also maintained a track record of regular dividend payments.
Recently, the company unveiled its new transaction enabled website – www.chiplc.com and introduced additional online payment channels, including GTBank portal, Quickteller and Paydirect. All of these are to improve customers’ experience at the point of renewal.
Also, CHI Plc was presented with the NIS ISO 9001:2015 Quality Management System Standard certificate by the Standards Organisation of Nigeria (SON). CHI has emerged the second insurance firm out of the existing 56 insurance and reinsurance firms to be presented with the global quality standard certification.
Volume and value of trading at the stock market rose 201 per cent and 236 per cent respectively wednesday despite the return of the bears.
Investors traded 450.139 million shares worth N9.397 billion in 2,858 deals compared with 149.653 million shares valued at N2.793 billion exchanged in 3,063 deals the previous day.
However, the high trading was boosted by Zenith Bank Plc that accounted for 73 per cent of the volume and 64 per cent for the volume and value of trading for the day. Specifically, 288.3 million shares of Zenith Bank Plc worth N6.9 billion were exchanged by investors.
Amidst the higher volume of trading, the bears returned following price losses by Lafarge Africa Plc, Dangote Sugar Refinery Plc, GTBank Plc, Seplat Petroleum Development Company Plc and FBN Holdings Plc. As a result, the Nigerian Stock Exchange (NSE) All-Share Index (ASI) fell 0.14 per cent to close at 32,108.30, compared with a gain of 0.33 per cent the previous day.
AIICO Insurance Plc led the price losers with 9.8 per cent, trailed by Lafarge Africa Plc with 9.7 per cent. Mutual Benefits Assurance Plc shed 7.4 per cent, while Jaiz Bank Plc and NEM Insurance Plc lost 6.1 per cent and 5.3 per cent respectively.
On the positive side, Niger Insurance Plc led the price gainers with 10 per cent, followed by NPF Microfinance Bank Plc with 9.6 per cent. Fidson Healthcare Plc and Union Diagnostic and Clinical Services Plc chalked up 8.8 per cent and 7.4 per cent respectively.
Other top price gainers included: LASACO Assurance Plc (7.4 per cent); Redstar Express Plc (7.1 per cent); Regency Alliance Insurance Plc, Japaul Oil and Maritime Services Plc(5.0 per cent apiece); Nigerian Aviation Handling Company (NAHCO)Plc (3.9 per cent).
NAHCO last week reported a growth of 107 per cent in profit after tax for the nine months ended September 30, 2018, thereby raising investors’ hopes for higher dividend at the end of the year.
The company recorded an impressive N7.25 billion, representing an increase of 25 per cent compared with N5.795 billion posted in the corresponding period of 2017.
Profit before tax jumped by 117 per cent to N731.841 million from N336.115 million in 2017. However, a higher tax payment made the PAT to grow slower at 107 per cent from N287 million to N601 million in 2018.
Foreign portfolio investors withdrew a total of N94.43bn from the nation’s stock market from July to September this year.
The Nigerian Stock Exchange, in its domestic and foreign portfolio investment report for September, said the amount withdrawn by foreign investors in the third quarter was 23.59 per cent lower than the N123.59bn pulled out in the previous quarter.
The report, however, showed that foreign outflow increased by 27.60 per cent from N34.31 in August to N43.78bn in September.
It said total foreign transactions rose by 18.82 per cent month-on-month in September, while domestic transactions fell by 27.03 per cent.
According to the report, total transactions at the nation’s bourse reduced by 2.79 per cent from N133.84bn in August to N130.20bn in September.
The NSE said the cumulative transactions from January to September 2018 increased by 21.23 per cent to N2.007tn from N1.655tn in the same period last year.
It said, “Foreign investors outperformed domestic investors by 29.54 per cent in September 2018. Total foreign transactions increased by 18.82 per cent from N70.97bn in August to N84.33bn in September 2018.
“Foreign outflows increased by 27.60 per cent from N34.31bn to N43.78bn, while foreign inflows increased by 10.58 per cent from N36.66bn to N40.54bn over the same period.”
According to the report, the institutional composition of the domestic market increased by 14.33 per cent from N22.67bn in August to N25.93bn in September 2018, while the retail composition reduced by 50.38 per cent from N40.19bn to N19.94bn within the same period.
It said the results were an indication of a higher participation by the institutional investors over their retail counterparts in September.
