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NSE: New Listings Yield N62.5bn in Three Months

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  • NSE: New Listings Yield N62.5bn in Three Months

The Nigerian Stock Exchange raked in N62.5bn from the fresh listing of five companies’ securities in the first quarter of this year.

The securities include Greenwich Asset Management Limited’s memorandum listing by introduction of 14,485,500 units of the Greenwich Plus Money Market Fund at N100 each; Forte Oil Plc’s N9bn series 1:5 year 17.50 per cent fixed rate unsecured bonds due in 2021 under a N50bn bond issuance programme; and Jaiz Bank Plc’s listing by introduction of 29,464,249,300 ordinary shares at N1.25 per share.

The other two are Med-View Airline Plc’s listing by introduction of 9,750,649,400 ordinary shares at N1.50 kobo per share; and SIAML Pension ETF 40’s listing of 5,970,000 units of the SIAML Pension ETF 40.

The securities were listed on March 7, February 21, February 9, January 31 and January 24, accordingly, with value/market capitalisation of N1,448,550,000; N9,000,000,000; N36,830,311,625, N14,625,974,100 and N597,000,000, respectively.

The quantities of securities admitted by the Exchange were 14,485,500; 9,000,000; 29,464,249,300; 9,750,649,400 and 5,970,000, respectively, with unit price of 100; 1,000; 1.25; 1.50 and 100, accordingly.

The delisting of 15 companies from the NSE in 2016 took away N24,075,418,729.61 capital from the market.

The 15 firms left the market for various reasons such as voluntary intent, regulatory directive, and mergers and acquisitions.

Those affected include G. Cappa Plc, IPWA Plc, West African Glass Industries Plc, Investment and Allied Insurance Plc, Alumaco Plc, Jos International Breweries Plc, Adswitch Plc, Rokana Plc and Vono Products Nigeria Plc.

Others are Lennards (Nigeria) Plc, P.S. Mandrides and Company Plc, Premier Breweries Plc, Costain West Africa Plc, Navitus Energy Plc and Nigerian Ropes Plc.

The market capitalisation of the respective firms as of the time of delisting was given as N1.717bn, N257.07m, N131.427m, N14bn, N557.201m, N809.280m, N203.758m, N30m, N484.74m, N210.492m, N214m, N2.888bn, N542.191m, N62.118m and N1.966bn, respectively.

Vono Products Plc was delisted after its merger with Vitafoam, while the others were delisted as a result of non-compliance with their post-listing obligations.

The NSE listed one firm throughout 2016. The firm listed was a Port Harcourt-based industrial cleaning, contamination and waste management company known as The Initiates Plc.

The company was listed by the introduction of 889,981,552 ordinary shares of 50 kobo each on the Alternative Securities Market Board at the price of N0.85 per share.

The outstanding shares for each of the delisted companies, according to the NSE, are 125,000,000; 514,140,713; 208,614,500; 28,000,000,000; 75,604,049; 562,000,000; 125,005,250; 50,000,000; 563,651,183; 70,164,062; 40,000,000; 979,211,412; 1,084,382,980; 98,600,000; and 263,668,295, respectively.

As part of efforts to further improve market transparency and integrity, provide timely information for investment decisions as well as enhance the protection of investors in the capital market, the NSE last year commenced the use of enhanced Compliance Status Indicator codes on the ticker tape for listed companies. This became effective on May 9, 2016.

Under the initiative, the Exchange tags all listed companies with a three-character code that indicates their compliance status at any particular point in time. This compliance code enables investors to make informed decisions, while ensuring a transparent market guided by timely information.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Finance

First Bank, GTBank, UBA, Others Generate N133.92 Billion from Electronic Payment in Nine Months

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Rising investment in financial technologies and the growing adoption of electronic payments have earned 12 Nigerian banks a total sum of N133.92 billion in the first nine months of the year.

Billions spent in ensuring that bank customers have access to their funds and can perform financial transactions 24 hours a day paid off during the COVID-19 lockdown as many customers were able to maintain social distancing by carrying out financial transactions on numerous digital platforms.

Some of the electronic platforms banks generated revenue from in the first nine months were Automated Teller Machine transactions, USSD, online transfer, electronic bills payments, Remita, Point of Sale payments and agency banking, among others.

While some of the twelve banks were Access Bank Plc, First Bank of Nigeria Plc, First City Monument Bank Plc, Fidelity Bank Plc, Guaranty Trust Bank Plc, United Bank for Africa Plc and Sterling Bank Plc.

The other five were Jaiz Bank Plc, Union Bank of Nigeria Plc, Wema Bank Plc, Unity Bank Plc and Stanbic IBTC Plc.

A breakdown of the banks’ unaudited financial statements showed Access Bank’s revenue from electronic payments rose by 105 percent to N38.80 billion in the period under review, up from N18.96 billion posted in the same period of 2019.

First Bank’s electronic payment revenue stood at N34.59 billion, representing an increase of 0.5 percent over the N34.42 billion recorded in the corresponding period of 2019.

Similarly, fees and commissions FCMB earned from digital payments in the first nine months amounted to N6.62 billion, a 17 percent contraction from the N7.98 billion earned in the same period of 2019.

Jaiz Bank posted a 24 percent contraction on its electronic payment earnings from N406.65 million in 2019 to N309.55 million in the same period in 2020.

Also, Stanbic IBTC’s electronic earnings dropped by 15 percent from N2.49 billion posted in 2019 to N2.12 billion in 2020.

Fidelity Bank’s e-payments revenue contracted by 34 percent in the first nine months of the year to N1.74 billion, down from N2.63 billion in 2019. While GTBank posted a 26 percent decline in electronic banking income to N8.21 billion in the period under review, below N11.04 billion earned in the same period of 2019.

Union Bank Plc realised N5.34 billion from electronic payments charges in the first three quarters of the year. Meaning, the bank’s electronic payments decline by 5 percent to N5.6 billion.

For Sterling Bank Plc, electronic products earned the bank N4.31 billion in the very first nine months of 2020, again a reduction of 16 percent from N5.11 billion posted in the same period of 2019.

UBA Plc, Unity Bank and Wema Bank Plc generated N26.71 billion, N1.74 billion and N2.02 billion from electronic payment income, respectively.

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Ghana/Kenya: Eurobonds to Decouple as Fiscal Challenges Come to Fore

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Ghana and Kenya, two of the sub-Saharan African sovereigns with the highest amount of outstanding Eurobonds, could see a widening of their risk premiums over 2021, according to a Senior Credit Analyst at Redd Intelligence, Mark Bohlund.

Faced with fiscal challenges, the two African nations are expected to return to the Eurobond market in the first quarter of 2021, but this time with bigger risk premiums as investors are expected to incorporate a higher likelihood of frontier-market issuers being pushed into debt restructuring.

Mark Bohlund said, “Ghana and Kenya are likely to return to the Eurobond market in 1Q21 but see a widening of their risk premiums over 2021 as investors incorporate a higher likelihood of frontier-market issuers being pushed into debt restructuring.”

With Ghana’s outstanding Eurobonds presently estimated at US$10.3 billion and Kenya’s outstanding Eurobonds put at US$6.1 billion, spreads on Ghana’s Eurobonds will increase over those of Kenya in 2021.

It is likely that spreads on Ghana’s eurobonds over those of Kenya will increase over 2021 as concerns rise over its weak fiscal position and high reliance on commercial overseas financing,” Bohlund stated.

Commenting on the countries’ fiscal positions, Bohlund said both countries are likely to post double-digit fiscal deficits this year, as contracting economies add to already faltering government revenue.

“With interest costs absorbing close to 50% of government revenue, Ghana will struggle to find sufficient cost- savings in other areas to reduce the fiscal deficit substantially in 2021.”

“In contrast to Kenya, Ghana has already cut back its capital expenditure to a bare minimum. The Bank of Ghana stepped up its purchases of government bonds sharply in September and we expect this to continue during 2021.

“In Kenya, part of the solution should be to encourage county governments to raise more revenue, but this will be challenging to implement before the August 2022 elections.

“Having shied away from bi- and multilateral creditors in favor of commercial borrowing, Ghana is likely to struggle to secure sufficient external financing in 2021. This makes increased central bank financing likely and poses downside risks to the cedi.

“Neither Ghana nor Kenya is likely to seek DSSI participation in 1H21 even if they deem that international bond issuance will not be possible.

“We have changed our view and now expect both Ghana and Kenya to issue Eurobonds in 1H21.

“Kenya is likely to continue to draw on funding from the IMF, the World Bank and other multilateral creditors, as well as bilateral financial support from China as the Standard Gauge Railway, continues to bleed funds.”

Bohlund added that the spreads between Ghana and Kenya Eurobonds are likely to widen further as a higher risk of a debt restructuring is priced into Ghanaian assets.

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Finance

Insider Dealing: Paul Miyonmide Gbededo Adds Another 612,326 Shares of Flour Mills to His Stake

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Paul Miyonmide Gbededo, the Group Managing Director, Flour Mills of Nigeria Plc bought an additional 612,326 shares of the company.

The management stated this in a disclosure statement sent to the Nigerian Stock Exchange on Monday.

The managing director purchased the shares at N27.75 per share on November 20, 2020 at the Nigerian Stock Exchange in Lagos, Nigeria. Meaning, Gbededo has invested another N16,992,046.5 into the company.

This was in addition to the 3,284,867 shares valued at N91,642,269 and 4,200,852 shares worth N117.62 million purchased by Gbededo earlier in the month of November. Bringing his recent purchases to 8,098,045 million shares worth N226,254,315.5. See the details of the latest transaction below.

 

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