Archives March 2019

NSE Places Shares of Newrest ASL Nigeria on Full Trading Suspension

Full trading suspension has been placed on the shares of Newrest ASL Nigeria Plc. The company, which delivers catering service to the civil aviation sector, as well as to oil and gas sector has applied to the Nigerian Stock Exchange (NSE) for a voluntary delisting. And in notification to market operators, NSE said it has approved the application of Newrest ASL and has placed the shares on full suspension.

“This suspension is required to prevent further trading in the shares of Newrest ASL, and in order for the company to comply with the post-approval requirements which will precede the final delisting of the company from the Daily Official List of the exchange. Dealing members will be notified of the date of the company’s delisting in due course,” the exchange said.

While some shareholders have decried the frequent delisting of companies without adequate protection, the Chief Executive Officer of the NSE, Mr. Oscar Onyema, has always said the market has a free entry free exit. According to him, the exchange would always have the interest of investors in mind but cannot stop companies that want to leave because of inability to meet the post-listing requirements to remain.

He explained that for companies that get delisted because of poor performance, shareholders should develop the habit of questioning any irregularities discovered in the financial statements of companies before such companies get worst.

He said despite the fact that NSE and other regulators play the role of investor protection, the shareholders themselves have a role which they too must play if their interests are to be fully protected.

Onyema said: “One of the things that we actually pride ourselves at the Exchange is protection of investors. I know that when something goes wrong the first person you want to shoot is the Exchange and possibly the Securities and Exchange Commission, SEC because we are in the frontline. If I take Syke Bank specifically, the exchange has done a lot to protect the interest of shareholders but let understand we are operating in the market place where shareholders themselves have responsibility.”

He called on investors to constantly study the financial statements of companies and to also attend annual general meetings(AGMs) where they can ask questions and seek clarifications.

“When we force companies to disclose, they put up their financials, you go to AGM you have right to ask questions, if the management is doing something you have to hold them accountable. You don’t have to wait until something goes wrong and you start blaming stock exchange,” he said.

Source:© Copyright Thisday Online

Nigerian Stock Market Gains N434bn to close N11.83tr in February

The Nigerian stock market appreciated by 3.8 per cent in the month of February compared with a decline in January. The Nigerian Stock Exchange (NSE) All-Share Index (ASI) rose from 30,557.20 to close at 31,721.76 while market capitalisation gained N434 billion, rising from N11.395 trillion to N11.829 trillion at the end of the month.

The market had recorded a decline in January as general elections jitters kept most investors away. However, investors increased their patronage in February as they anticipated the release of corporate results for the year ended December 2018. Also, some investors felt the political uncertainties were reducing. Hence, the market appreciated in the month of February.

The growth would have been higher but for the decline recorded in the last two days of the month after the result of the presidential elections were announced and President Muhammadu Buhari declare the winner.

The NSE ASI had appreciated to a high of 32,700.12, while market capitalisation rose to N12.194 trillion on Monday. However, the NSE ASI closed the month at 31,721.76, while market capitalisation ended at N11.829 trillion.

The market recorded the highest decline of 1.63 per cent yesterday, which was the last day of the month. Losses by GTBank Plc, Nestle Nigeria Plc and Zenith Bank Plc were partly responsible for the decline.

However, market operators are optimistic that the market would perform better in the second half of 2019..

For instance, the Group Chief Executive Officer of Emerging Africa Capital Group, Mrs. Toyin Sanni told THISDAY that the general expectation is that the first half 2019 will be more of the same as last year because investors will be playing a wait and see approach due to the elections.

“Investors will wait to see how the elections are accepted and confirm that there will be peace in the post-election period up till May 29, which will be the day the new government will be sworn into office,” she said.

According to her, investors generally just want stability and peace, stressing that the parameters remain positive for Nigeria from a long-term perspective.

“Nigeria remains an attractive because of its size, demographics because of the continued activities of SMEs which are the drivers of this economy, because of how we have embraced the digital economy as a people and a nation because we are still a resources rich country. But investors would want to see that there is a stable government, there is peace and government is accepted by the people, investors will want to see they can expect the right economic policy and the policies will be implemented in a consistent manner,” she said

Source:© Copyright Thisday Online