The Chief Executive Officer of the Nigerian Stock Exchange (NSE), Mr. Oscar Onyema, has commended Dangote Cement (DCP) Plc for its adherence to best corporate governance practices even as he called for more partnerships between the two organisations.
Onyema gave the commendation wednesday, while welcoming the Group Managing Director of DCP, Joe Makoju and his management team to the special sounding of the closing gong ceremony at the NSE.
Onyema, who congratulated Makoju on his confirmation as the substantive CEO of DCP described him as proper and fit for the role given his level of experience and years of exposure in the manufacturing sector.
He said that as the largest listed company on the exchange and with other listed companies from the Group, Dangote Sugar Refinery Plc, Dangote Flour Mills Plc and NASCON Allied Industry Plc, any change in the management cadre is very important as it affects the stock market.
According to him, Makoju’s tenure as the helmsman of DCP is yielding the expected results as increased investors’ confidence has resulted in good performance of the stock.
Oscar said: “The performance of the stock is very good and is a fall-out of the resilience, expertise and diligence of the management team. It is listed on the premium board.”
He also appreciated the Chairman of DCP on his efforts and advocacy for an improved and better capital market as well as sponsorship of NSE’s events. He called for more partnerships with DCP in terms of corporate social responsibilities (CSR) projects.
Responding, Makoju described it as an honour and privilege to be invited to participate and sound the closing gong, noting that there exists a special relationship between Dangote Group and the NSE as Aliko Dangote was a former president of the Council of the exchange. He said that DCP has grown from a national company to a continental one operating in several countries across Africa.
The doyen of stockbrokers, Mr. Sam Ndata, on behalf of other stockbrokers congratulated Makoju and described him as a tested hand in the cement sector. He said: “There is no doubt that DCP will do well with you at the helm of affairs.”
Meanwhile, the bulls maintained strong hold on the equity market yesterday as the NSE All-Share Index appreciated further by 1.53 per cent to close at 38,435.29. The appreciation recorded in the share prices of Zenith Bank, Nigeria Breweries, Lafarge Africa, Dangote Cement and Flour Mills bolstered the performance.
There are high expectations that the Nigerian equities would witness more patronage by Pension Fund Administrations (PFA) as from July 1, 2018 when the new multi-fund structure introduced by National Pension Commission (PenCom) will become operational.
While PFAs are allowed by law to invest about 25 per cent of their pension assets in equities, the level is below 10 per cent as most of them prefer investing in federal government bonds.
But in a bid to resolve the challenge of asset-liability risk management experienced by pension funds and improve returns on pension assets, PenCom introduced the multi-fund structure. Under the new structure, the funds are in four categories.
While Fund 1 is targeted at people of 49 years and below who in the quest for higher returns are willing to take more risks, Fund 2 is aimed at people who, are aged 49 years and below but are still working and are satisfied with moderate returns and levels of risks. Fund 3 targets people 50 years and above but still working and have very low risk appetite while in Fund 4 are retirees who have the lowest risk profile of all categories.
Analysts at FSDH Merchant Bank Research said the development would favour the equities market as PFAs would channel more funds to the market.
“The expected additional fund allocation to the equity market may change the current downward trend in the equity market as the market receives more liquidity. Stocks that have strong fundamentals and that pay interim dividend may attract the expected investment from the PFAs,” they said.
PenCom Investment Supervision Personnel, Mr. Ibrahim Kangiwa, had explained that the main objective of the RSA multi-fund investment structure is to resolve the challenge of asset-liability risk management experienced by pension funds.
According to him, this would be achieved by: better aligning the risk and return expectations of contributors; better matching of pension assets and liabilities; as well as diversification of pension fund portfolios, as minimum limits are set for aggregate investments in variable income securities for each fund.
The Managing Director and Chief Executive Officer of Stanbic IBTC Pension Managers, Mr. Eric Fajemisin, had said that the company was ready to key into the implementation of new structure.
According to him, the new structure would help in deepening asset accumulation in the country, and provide the crucial capital required for investment in critical sectors of the economy.
Sustained bargain hunting in heavy weight counters saw the equities market extend its gains for the second day yesterday. The market had on Monday recovered from a spell of bearish trading that lasted 11 days.
But the bulls consolidated their control yesterday as 39 stocks appreciated in value compared with 15 that declined. Consequently the Nigerian Stock Exchange All-Share Index (ASI) jumped 2.5 per cent to close at 37,854.92, while market capitalisation added N328.8 billion to close higher at N13.7 trillion.
According to analysts at Meristem Securities Limited, the mood in the market was upbeat as investor appetite showed encouraging signs of improvement.
“Bargain hunting on bellwether stocks such as Dangote Cement, Nigerian Breweries , GTBank drove the positive performance of the market. We expect this trend to persist in the days ahead as investors continue to take advantage of the relatively low prices across the sectors,” they said.
Oando Plc led the price gainers with 9.8 per cent followed by International Breweries Plc that garnered 7.6 per cent. Dangote Sugar Refinery Plc chalked up 6.3 per cent just as Honeywell Flour Mills Plc, Okomu Oil Palm Plc and Nigerian Breweries Plc gained 5.0 apiece.
Similarly, Lafarge Africa Plc, Diamond Bank Plc and Fidelity Bank Plc appreciated by 4.9 per cent each, while FCMB Group Plc went up by 4.8 per cent.
Conversely, Consolidated Hallmark Insurance Plc led the price losers with 6.6 per cent, trailed by Royal Exchange Plc with 5.8 per cent. UAC of Nigeria Plc shed 4.5 per cent, while First Aluminium Nigeria Plc, Total Nigeria Plc and Sovereign Trust Insurance Plc went down by 4.5 per cent, 4.3 per cent and 3.7 per cent in that order.
Meanwhile, activity level was mixed as volume traded rose 8.0 per cent to 339.7 million shares while value traded fell 15.2 per cent to N6.0 billion. The top traded stocks by volume were Access Bank (133.1 million shares), GTBank (39.3 million shares) and UBA (23.2 million shares) while GTBank (N1.6 billion), Access Bank (N1.4 billion) and Dangote Cement (N911.2 million) were the top traded stocks by value.
Sector performance was mostly bullish as four of the five indices higher. The NSE Industrial Goods Index and NSE Banking Index led with 3.2 per cent apiece.
The NSE Consumer Goods Index followed with 2.7 per cent while the NSE Insurance Index gained 0.2 per cent. On the negative side, the NSE Oil & Gas Index emerged the lone loser shedding 0.6 per cent.
The Nigerian Stock Exchange (NSE) All-Share Index (ASI) recorded its first gain rising by 0.36 per cent to close at 36,947.10 yesterday after several days of a bear run. The market had hit a five-month low last week as rampaging bears took control and pulled the market into negative territory with a year-to-date decline of 3.38 per cent as at Friday.
However, some of the losses were pared yesterday on bargain hunting in banking sector. Although the market recorded 21 gainers and losers apiece, heavy weighted counters such as Guaranty Trust Bank Plc, Zenith Bank Plc and Nigerian Breweries Plc, FBN Holdings Plc made the bulls to have an upper hand.
Market analysts at Cordros Capital Limited had last Friday said the bear run that lasted for about 11 days would be followed by bargain hunting.
“While acknowledging potential bargain hunting in the short term, in what follows relatively lower stock prices, we guide investors to trade cautiously and focus primarily on fundamentally sound stocks,” they had said.
And when trading resumed for the week yesterday, 21 stocks added value led by Japaul Oil and Maritime Services Plc with 9.0 per cent, trailed by Custodian and Allied Plc and Eterna Plc that gained 4.9 per cent each. GTBank Plc garnered 4.5 per cent, just as AIICO Insurance Plc, FBN Holdings Plc and FCMB Holdings Plc appreciated by 3.5 per cent, 3.4 per cent and 3.2 per cent in that order. LASACO Assurance Plc and Nigerian Breweries Plc equally advanced, adding 2.9 per cent apiece.
Conversely, Oando Plc led the bears, sliding by 8.9 per cent, followed by Cadbury Nigeria Plc with 8.0 per cent. Presco Plc shed 5.0 per cent, while PZ Cussons Nigeria Plc and Sterling Bank Plc went down by 4.8 per cent and 4.6 per cent respectively. Jaiz Bank Plc and Law Union and Rock Insurance Plc got hair cuts of 4.4 per cent each.
However, activity level weakened as volume and value traded dipped 39.2 per cent and 2.3 per cent to 314.5 million shares and N7.0 billion respectively compared with Friday’s figures.
Commenting on the market performance, analysts at Meristem Securities Limited said: Positive sentiment prevailed in the equities market following buying pressure on counters which have lost significantly in previous weeks, particularly heavily weighted stocks in the banking sector like GTBank and Zenith Bank. This was enough to offset the impact of continued sell-offs in the consumer goods space.”
The Securities and Exchange Commission (SEC) has advocated some measure of fiscal incentives for listed companies on the Nigeria Stock Exchange (NSE) to mitigate their cost burden and encourage more entities to list shares on the bourse.
Warning that if companies failed to list their stocks on the stock exchange, it might be out of business with no one to regulate, the SEC saidapart from the reduction of costs, the incentives could translate to huge investment benefits to shareholders.
It added that this could equally position the quoted companies to contribute more to national development through improved capacities and job creation potential.
A statement from the commission yesterday in Abuja, quoted its acting Director General, Ms. Mary Uduk, to have made this proposal on the sidelines of an event organised by the Alliance Law Firm in Lagos.
Uduk, the statement explained, also believes that the creation of some form of fiscal incentives for listed entities would add further mileage to ongoing efforts to improve corporate governance in the country.
She was however represented at the event by the Director Zonal Offices Coordinating Department, (ZOCD) of the commission, Mr. Edward Okolo.
She reportedly cited the experiences with some investors in the manufacturing sector who claimed that despite fulfilling their fiscal obligations, Nigeria’s public procurement and contractual processes had continued to favour foreign companies to their disadvantage.
“Our case for fiscal incentives for listed companies on the NSE is actually based on experience. What we are saying is that Nigerian companies doing the same business these foreign companies are doing if they are listed should be encouraged in terms of public procurement or whatever government is doing,” she said.
Uduk noted: “We don’t want to keep taking from them because they incur a lot of costs and you cannot reduce the costs more than a limited amount of percentage. The best is to begin to give them some incentives and with that you have more companies coming to the market, you have more jobs and then people will have dividends of investing. You must have companies to regulate and if people are not coming to the market, then who are you going to regulate?
“The market will create jobs. If you go to Brazil, you go to Asia you see small-scale companies coming to the market. You see fund managers and others playing the roles they are supposed to play. So, we need those incentives to encourage them to come to the market.”
She explained that Nigerians would eventually get the value in terms of dividend payout if the company were listed.
Uduk also said there should be incentives for companies coming to get listed as alternatives to savings by Nigerians.
Uduk equally said the level of compliance with SEC’s Code 2011 on corporate governance has remained low even as provisions relating to independent directors’ roles in companies were being violated by some listed companies.
The Central Securities Clearing System (CSCS) Plc, the financial market infrastructure (FMI) arm for the Nigerian capital market, has announced a dividend of 70 kobo per share to shareholders for the year ended December 31, 2017.
The dividend, which amounts to N3.5 billion, was 233 per cent higher than the N1.05 billion paid out in 2016. Shareholders of the company approved the dividend at the 24th annual general meeting (AGM) in Lagos yesterday and commended the board and management for the improved performance.
Speaking on the 2017 financial results, chairman of CSCS Plc, Mr. Oscar Onyema, said despite the headwinds at the beginning of 2017, CSCS emerged with a strong performance for the year across all metrics.
According to him, at the end of the year, profit-before tax stood at N5.6 billion, from N3.72 billion in 2016, while profit after tax rose from N3.5 billion to N4.9 billion. Total assets stood at N32 billion compared with N27 billion in 2016.
“We attribute our performance to better economic macro story, the Investors’ and Exporters’ FX Window, our sound corporate governance model, focus on implementing strategic initiatives, skilled workforce and technology,” he said.
Onyema said in order to ensure competitiveness in the capital market and remain the foremost Central Securities Depository (CSD) in Africa, the company made significant investment in infrastructure by changing its core CSD platform, the Equator, to a more technologically advanced and state-of-the-art CSD platform, the TCS BaNCS .
Also speaking, the Managing Director/Chief Executive Officer, CSCS Plc, Mr. Haruna Jalo-Waziri, said though 2017 was considered the year of hope, CSCS adapted very quickly to ensure attainment of decent financial results and other achievements in the course of the year.
“CSCS had a profit before tax budget of N3.86 billion but surpassed this target to finish the year with a profit before tax of N5.66billion (a 46.63 favourable variance). This was driven by the confidence which returned to the capital market. Hence, actual earnings from our depository, clearing and settlement services, which constituted 49.63 (2016: 42.48 per cent) of our total revenue increased by 64.49 per cent in the current year.”
According to him, working with the Securities and Exchange Commission (SEC) and registrars of companies, CSCS successfully achieved 100 per cent dematerialisation of securities of quoted companies.
“The importance of this achievement is that it brings into effect the existence of a unified and comprehensive record of issued shares and the aforementioned companies’ shareholders. As is applicable in other markets, this puts CSCS in the position of bona fide Custodian of the golden record of securities and a sub registry for all quoted companies” Mr. Jalo-Waziri added.
As the bears continue to ravage the stock market, depressing prices of many stocks at the nation’s equities market, investment analysts have said the low prices are presenting opportunities for investors to invest in the market.
The dominance of the bears for three consecutive weeks has driven the market to new low with the Nigerian Stock Exchange (NSE) declining below the 40,000 mark. Also, the year-to-date growth of the market has contracted to below three per cent. The bear run has been attributed by some analysts to foreign investors who are reducing their holdings in emerging and frontier markets.
Although the development has left many domestic investors to be skeptical and confused over the potential near term upsides, analysts at Afrinvest said investors should rather take advantage of the current cheaper valuation presents.
THISDAY checks showed that the stocks of some companies that either recently declared improved financial results or are have put strategies in place to deliver good returns to investors are trading significantly lower than their opening prices.
In the banking sector, instance, Fidelity Bank Plc is trading 26 per cent lower than the price at which it opened for the year. The bank reported a growth of 93.7 per cent in profit after tax (PAT) to N18.9 billion for the year ended December 31, 2017, up from N9.7 billion recorded in 2016.
Only last Friday, the Managing Director/Chief Executive Officer of Fidelity Bank Plc, Mr. Nnamdi Okonkwo, said the bank would take advantage of growing opportunities in the nation’s economy to deliver quality services to customer and good returns to shareholders.
“Clearly, our success in 2017 financial year has set a strong pedestal for sustained growth in revenue. We are optimistic about a favourable operating environment and we look forward to delivering decent set of numbers at the end of 2018 financial year, ” Okonkwo said.
Similarly, Union Bank of Nigeria Plc is 25.6 per cent cheaper than its price at the beginning of the year, just as Zenith Bank Plc, which delivered one of the best results in 2017, is trading just 1.7 per cent above its 2018 opening price. The price of Dangote Flour Mills Plc, as at Monday, was 29 per cent cheaper than its year’s opening price. Two oil stocks, that also posted improved financial performances, Double 11 Plc and Total Nigeria Plc, are trading 15 per cent and 7.8 per cent lower.
However, the insurance sector has many stocks trading between 20 per cent and 60 per cent lower. UNIC Diversified Holdings Plc is 60 per cent cheaper, Niger Insurance Plc, 52 per cent; Regency Alliance Insurance Plc, 48 per cent; Sovereign Trust Insurance Plc,46 per cent; Veritas Kapital Assurance Plc,32 per cent; Mutual Benefits Assurance Plc, 30 per cent; LASACO Assurance Plc, 24 per cent and Guinea Insurance Plc, 20 per cent among others.
The continuing bear run made the Nigerian equities market to record its third consecutive decline last week. The Nigerian Stock Exchange (NSE) All-Share Index fell by 1.3 per cent to close at 40,472.45, while market capitalisation shed N199.2 billion to close at N14.66 trillion. The sustained bearish run had reduced the year-to-date growth of NSE ASI to 5.8 per cent.
Apart from the NSE ASI that declined, all other indices finished lower with the exception of the NSE Consumer Goods Index which appreciated by 0.03 per cent, while the NSE ASeM Index closed flat.
However, market analysts said despite continued selloffs in the equities market, still-strengthening macroeconomic fundamentals remain suggestive of gains on the exchange.
Daily Performance
On the first day of trading, equities market capitalisation went down by N124.9 billion as bearish trading continued on the Nigerian bourse. The index declined by 0.84 per cent to close lower at 40,677.61. However, activity level was mixed as volume of shares traded grew 2.0 per cent to 218.8 million shares while value of shares traded dipped by 47.3 per cent to N2.2 billion.
In all, 32 stocks lost value while only 11 stocks appreciated. C & I Leasing Plc led the laggards with 9.3 per cent trailed by First Aluminium Nigeria Plc with 8.8 per cent. Japaul Oil & Maritime Services Plc shed 7.5 per cent, just as Okomu Oil Palm Plc, Oando Plc, AXA Mansard Insurance Plc and Diamond Bank Plc depreciated by 5.0 per cent, 4.9 per cent, 4.8 per cent and 4.7 per cent respectively.
Diamond Bank Plc last Friday recorded a loss of N9.011 billion for the year 2017 financial year while its PAT for first quarter in 2018 fell by 82 per cent to N784 million, from N5.049 billion in the corresponding period of 2017.
On the positive side, Caverton Offshore Support Group Plc led the price gainers with 4.9 per cent, followed by Sterling Bank Plc with 3.8 per cent. Mutual Benefits Assurance Plc chalked up 3.5 per cent, while FCMB Group Plc and Cutix Plc went up by 3.5 per cent, and 3,2 per cent in that order.
Analysts at SCM Capital Limited said: In the interim, we see a mixed sentiment albeit with a bearish bias. However, we maintain that the current valuation provides attractive entry opportunity.”
Meanwhile, on sectoral basis, four sectors closed lower while only the NSE Oil & Gas Index flat. The NSE Insurance Index led laggards, down 1.7 per cent, trailed by the NSE Consumer Goods Index with 1.6 per cent. The NSE Banking Index and NSE Industrial Goods Index shed 0.4 per cent and 0.2 per cent in that order.
On the second trading day, the bears tightened their grip on the market as the index depreciated by 0.15 per cent to close at 40,615.42, on losses recorded in the share prices of FBN Holdings, Zenith Bank, UBA, GTBank, and UAC of Nigeria. Similarly, the market capitalisation depreciated by same margin to close at N14.71 trillion.
Activity level, however, was mixed as volume of shares traded contracted by 7.0 per cent to 203.4 million shares while value of shares traded rose by 98.5 per cent to N4.4 billion. The top traded stocks by volume were GTBank (37.2 million shares), UBA (31.5 million shares) and Fidelity Bank (14.5 million) while the top traded stocks by value were GTBank (N1.6 billion), Nigerian Breweries (N735.2 million) and Nestle Nigeria (N510.7 million).
Also, in terms of sectoral performance was largely bullish as three of five indices tracked closed in the green. The Banking Index was the lone loser, shedding 1.3 per cent. Positively, the NSE Consumer Goods Index led gainers, up 1.4 per cent, while the NSE Insurance Index rose by 0.95 per cent. The NSE Industrial Goods Index appreciated by 0.08 per cent, while the NSE Oil & Gas Index closed flat.
However, on Wednesday the losing streak was halted on as bargain hunters entered the market. Consequently, the benchmark index rose by 0.93 per cent to close at 40,992.97, while market capitalisation added N136.8 billion to close at N14.85 trillion.
The appreciation recorded in the share prices of Dangote Cement, Nigeria Breweries, Zenith Bank, Ecobank Transnational, and Nestle drove the growth. Trading activity was mixed as the volume traded rose 27.6 per cent to 259.5 million shares while the value traded declined by 1.5 per cent to N4.4 billion. The top traded stocks by volume were Diamond Bank (68.6 million shares), Zenith Bank (33.8 million shares) and GTBank (31.4 million shares) while the top traded stocks by value were GTBank (N1.4 billion), Nestle (N1.1 billion) and Zenith Bank (N943.1 million).
The recovery in the market on Wednesday was not sustained as the index depreciated by 0.83 per cent to close at 40,651.41. The market capitalisation depreciated by 0.83 per cent to close at N14.73 trillion.
The depreciation recorded in the share prices of Dangote Cement, Nigeria Breweries, UBA, Access Bank, and Lafarge Africa were mainly responsible for the decline.
However, activity level strengthened as volume and value traded rose 63.5 per cent and 73.4 per cent to 424.4 million shares and N7.6 billion respectively. Zenith Bank (170.6 million shares), Access Bank (44.2 million shares) and FCMB (25.9 million shares)
Performance across sectors was bearish as four of the five indices closed in the red. Only the NSE Oil & Gas Index closed positive, rising marginally by 0.01 per cent. The Industrial Goods Index was the highest decliner, shedding 1.6 per cent.
The NSE Consumer Goods Index shed 1.1 per cent, while the NSE Banking Index went down by 0.4 percent just as the NSE Insurance Index fell by 0.04 per cent.
Market Turnover
Meanwhile, a total turnover of 1.457 billion shares worth N23.666 billion in 19,674 deals was traded last week by investors on the floor of the exchange in contrast to a total of 1.586 billion shares valued at N25.992 billion that exchanged hands two weeks ago in 21,115 deals.
The Financial Services Industry remained the most active with 1.223 billion shares valued at N16.825 billion traded in 11,092 deals, thus contributing 83.9 per cent and 71.1 per cent to the total equity turnover volume and value respectively. The Consumer Goods Industry followed with 76.430 million shares worth N5.188 billion in 3,425 deals. The third place was occupied by Oil and Gas Industry with a turnover of 57.193 million shares worth N527.880 million in 2,237 deals.
Trading in the top three equities namely: Zenith Bank Plc, GTBank and United Bank for Africa Plc, accounted for 491.649 million shares worth N14.159 billion in 3,265 deals.
Price Gainers and Losers
The price movement chart displayed that 20 equities appreciated in price during the week, higher than 35 in the previous week, while 54 equities depreciated in price, higher than 49 equities of the previous week. Sovereign Trust Insurance Plc led the price gainers with 30 per cent, followed by Mutual Benefits Assurance Plc and NPF Microfinance Bank Plc that chalked up 10.2 per cent. Fidson Healthcare Plc and Beta Glass Plc went down by 7.0 per cent and 4.9 per cent respectively.
Other top price gainers included: Continental Reinsurance Plc (4.9 per cent); UACN Property Development Company Plc (4.6 per cent); Prestige Assurance Plc (4.3 per cent); Cutix Plc (3.2 per cent) and CAP Plc garnered 3.2 per cent and 2.8 per cent respectively.
Conversely, Japaul Oil & Maritime Services Plc led the price losers with 25 per cent, trailed by Skye Bank Plc with a growth of 19.2 per cent. Diamond Bank Plc also went by 18.4 per cent, just as Cement Company of Northern Nigeria Plc declined by 17.2 per cent in that order.
Other top loser included: Fidelity Bank Plc14.8 per cent; Veritas Kapital Assurance Plc (14.2 per cent); Equity Assurance Plc (13.7 per cent);Okomu Oil Plc (12.8 per cent); C & I Leasing Plc (12.8 per cent) and Nigeria Insurance Plc (12.5 per cent).
Neimeth International Pharmaceuticals Plc has reported a profit after tax (PAT) of N30 million for the half year ended March 31, 2018, compared with a loss of N195 million in the corresponding period of 2017. This is just as the company has appointed Mrs. Bashirat Odunewu as an independent director in compliance with the statutory requirement for good corporate governance.
An analysis of the results showed that Neimeth posted revenue of N877.317 million in 2018, up from N601.427 million in 2016. Cost of sale stood at N399.7 million compared with N259 million, while it ended the period with gross profit of N477.6 million, up from N342.3 million in 2016.
In line with its cost saving strategies, the company reduced its marketing and distribution expenses to N149 million, down from N188 million in 2016. Similarly, administrative expenses declined from N304 million to N256 million. Consequently, profit before tax stood at N30 million in 2018 as against loss of N195 million in 2016.
Meanwhile, the new independent director is a chemistry graduate of the University of Manchester Institute of Science and Technology. She also holds a Master of Science degree from the University of London. She is a fellow of the Institute of Chartered Accountants of Nigeria (ICAN), and a member Chartered Institute of Arbitrators (MCIArb).
Odunewu has over 20 years experience in the financial services sector. She is currently the Group Executive – International Banking at First Bank Nigeria Limited.
The company said it was positioned for a rapid recovery having overcome the consequences of the fire that occurred in March, 2017.
Neimeth which had a rough patch in recent times following the challenging operating environment. However, the Chairman of the company, Dr. ABC Orjiako, had announced plans to overhaul the corporate structure of the company in such a way that it will refocus it for a meaningful and sustainable growth.
Going by the 2016 performance of the company, the restructuring efforts have started to yield fruits as the company has returned to profitability for the full year.
This led to the company coming up with a three strategic imperatives to revitalise sales and generate more revenue, reduce costs and optimise efficiency and transform the organisational culture towards a new Neimeth.
According to the company, new practices were adopted which contributed to better inventory management, production planning and coordination between manufacturing and sales activities most importantly.
Following the refusal of investors that used fictitious names to buy shares during public offerings in boom days of stock market, the Securities and Exchange Commission (SEC) is considering new strategies to ensure compliance by investors, findings by THISDAY have revealed.
The 2006-2008 boom years of the capital market saw a jump in public offerings as many banks, insurance companies and other non-financial quoted and unquoted companies issued shares to raise funds through the stock market.
Several investors resorted to the use of various means to push through multiple allocations so as to succeed with their applications. However, it has been discovered that some of those investors have forgotten their names and details used to buy those shares, others have failed to come forward to claim the shares, a development that has contributed to the high level of unclaimed dividends in the market. It has been reported that about three-quarter of the outstanding unclaimed dividends (N80 billion) and millions of shares belong to such investors who used fictitious names.
As part of the efforts to encourage the investors to come and claim their dividends and shares, SEC last year set up a committee after which it issued a deadline of September 1, 2017 for the regularisation of the multiple and fictitious accounts. It was later extended to March 31, 2018 before another recent extension to September 30, 2018.
But the managing director of a share registration firm, told THISDAY that many investors had been staying away from regularising their accounts because of the way SEC had handled the report of the Committee, which he said is perceived as criminalising the investors. According to market the operator, another Committee has been set to review that report of the first committee.
“A committee has been set up to review it again, the way it is now, like you are criminalising those investors. And most people are not coming out because of the criminal tone of the pronouncement by SEC. If you say I apply with a different name and I cannot claim my money, I will not want to come out. We know the way people applied for shares in those years of boom was an aberration but how do we address the issue now. The report of the Committee that was adopted before is trying to criminalise those who do not want come out but SEC is making it in a way that will make people to come forward. All you need to do is show evidence that you paid. If the records show that you paid for the shares, you get your dividends or shares,” the MD said.
The acting Director General of SEC, Ms. Mary Uduk disclosed last month that the fictitious shareholders had been given up till September 30, 2018 to provide proof to claim and regularise their shareholdings. According to her, the extension was part of the highpoints of the meeting of the Capital Market Committee (CMC).
Although she said that registrars had acknowledged that investors with fictitious accounts had started coming forward to claim their shares, there were challenges in the process, hence the CMC deliberated and recommended the appropriate technical committee to seek input and come up with recommendations to address the challenges. “Therefore, we encourage all affected investors to come forward and take advantage of the window before the new deadline,” Uduk said.
