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Investors’ Hopes Rise, As New SEC DG Takes Over

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Two key events took place last week at the Nigerian capital market which could as well serve as a pointer to what 2010 holds in stock for various players in the market.

The first event was the formal resumption of Arunma Oteh, the new director-general of the Securities and Exchange Commission (SEC), albeit after a long wait since her appointment was approved by the National Assembly.

The other good news happened to be the positive growth that was recorded in the equities sector (surprisingly in the first week of the year) with the market capitalisation closing at a high. Market operators are more optimistic about the Nigerian capital market improving than the previous year.

The performance of stocks in the top ten gainers class in the period were in the region of 22 per cent and 27 per cent price appreciation. In the banking sector, Oceanic Bank Plc, Bank PHB Plc and Afribank Plc, made the list of the top ten gainers with 25.99 per cent, 25.36 per cent and 24.28 per cent, respectively. The market trend shows that most of the stocks in the period outperformed the All-Share Index.

According to analysts at Proshare, “the surge recorded in the market performance in the last seven trading days might not be unconnected with the pronouncement from the CBN on the moves toward increasing liquidity situations in the economy, the fact that tension in the banking sector is being doused, the change in SEC leadership with the resumption of the new DG, promise from the regulators to lead a more transparent and more efficient capital market, US Export-Import Bank $1 billion loan support guarantees to 14 lenders bailed out by CBN, and most importantly, the present status of most of the value stocks which are trading at discount.”

As an investor, what would you rather have: a good year or a good decade? Forget the good year. Of course, you’d much prefer the good decade. The lesson? It’s better to think in terms of decades than single years (or, worse, quarters and months).

As we start a new decade, expectations are high and investors would like to put their money where their mouth is. For the new SEC DG, it is expected that she would work to bring confidence to the market.

“The shortlist of what she must do, according to Victor Ogiemwonyi, would include the quick and immediate implementation of the Dotun Sulaiman committee report, the sustained effort to cleanse the market, by quickly completing the efforts already started by Daisy Ekineh who was acting DG before she resumed.” It has also been suggested that Oteh should investigate and decide all cases of market manipulation of the recent past.

“This way, we can rid the market of bad news quickly and learn from the mistakes by making new rules that will ensure the infractions do not happen again. She should also work to strengthen industry trade groups that will act as market monitors and allow her to focus on the big picture,” Ogiemwonyi said.

Finally, stakeholders want the new DG to also learn quickly that regulators do not talk like politicians. They speak only when necessary

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NSE Begins Week On Negative Note, Loses N19.49bn

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The Nigerian stock market began the week on a negative note as banking and consumer goods stocks, among others, triggered a N19.49bn loss.
At the end of trading on the floor of the Nigerian  Exchange Limited , the NGX All-Share Index dropped by 0.09 per cent to end at 43,270.94 basis points, while the market capitalisation declined to N22.58tn.
Market activities were mixed as the total volume of shares traded decreased by 30.19 per cent while the value traded rose by 34.05 per cent.
A total of 213.13 million shares valued at N2.36bn were exchanged in 4,105 deals, compared to 305.32 million shares worth N3.58bn in 4,450 deals last Friday.
FCMB Group Plc topped the traded stocks in terms of volume, accounting for 27.43 per cent of the total volume of trades while Airtel Africa Plc emerged as the most traded stock by value, representing 28.81 per cent of the total value of trades on the exchange.
14 firms gained compared to 21 losers.
AIICO Insurance Plc was the biggest gainer for the day, topping the gainers’ chart with a price appreciation of 8.57 per cent to N0.76 per share.
It was followed by LivingTrust Mortgage Bank Plc with a rise of 7.95 per cent, ending the day at N0.95 per share.
Analysing by sectors, three of the five major indices closed lower, led by NGX Oil & Gas (-0.56 per cent), NGX Consumer Goods (-0.23 per cent) and NGX Banking (0.18 per cent).
But the insurance (0.82 per cent) and industrial goods (0.002 per cent) indices gained at the end of trading.

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… Introduces TIES To Boost  Business Loan

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The Central Bank of Nigeria (CBN) has introduced the Tertiary Institutions Entrepreneurship Scheme (TIES), which provides undergraduates and graduates with a platform to access loans.
The TIES’ underlying aim is to provide access to capital for Nigerian undergraduates and graduates with innovative entrepreneurial and technological ideas from polytechnics and universities.
TIES intends to shift undergraduates and graduates away from white-collar job pursuits and towards a culture of entrepreneurship development for economic development and job creation.
In a national biennial entrepreneurship competition, the Developmental Component would be distributed in the form of awards to Nigerian polytechnics and universities.
The competition aims to increase undergraduates’ awareness and visibility of high-impact entrepreneurial/technological concepts, foster entrepreneurial talent hunts in Nigerian polytechnics and universities, and encourage commercially viable and transformative technologies.
Interested Nigerian polytechnics and universities shall apply to participate in the national biennial entrepreneurship competition on a dedicated online portal.
Outlining brief details of the project, potential impact and evidence of originality of project, CBN said it is an innovation for students entrepreneurs.

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CITN Applauds FG, Tax Authorities On Fiscal Policy Decisions

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The Chartered Institute of Taxation of Nigeria (CITN) has lauded the Federal Government and tax authorities on the giant strides made on fiscal policy decisions and tax administration measures initiated this year in the area of Finance Act 2021 and the introduction of TaxPromax solution.
President of the institute, Adesina Adedayo, who gave the commendation at the institute’s yearly award ceremony at the weekend in Lagos, assured the government and tax authorities of aligning with the measures and promised to provide professional thoughts and insights on ways through which they could achieve an efficient and effective Nigerian tax system.
Adedayo emphasised the need to address the database, adding that without knowing who the tax-payers are, there is no way they can take money from unknown tax-payers.
Database is the aspect we have been emphasising on as an institute and in doing this, there are so many of pockets of data we have. All the data must be harmonised to have a simple unique tax-payers identification number,” he said.

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