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10 Stockbroking Firms Trade N1.1tn Shares on NSE in Eight Months

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  • 10 Stockbroking Firms Trade N1.1tn Shares on NSE in Eight Months

Stanbic IBTC Stockbrokers Limited, Cordros Securities Limited, RenCap Securities Limited, Meristem Stockbrokers Limited and CSL Stockbrokers Limited are the five stockbrokers among the top 10 brokers that accounted for N1.080 trillion traded at the stock market from January to August 2017. Data obtained from the Nigerian Stock Exchange (NSE) showed that the 10 stockbroking firms traded 70.71 per cent of the total value of stocks exchanged in the review period and 46.28 per cent in terms of volume.

Specifically, Stanbic IBTC Stockbrokers led in value terms trading N299.592 billion, which is 19.61 per cent. Cordros Securities Limited followed with N196.645 billion or 12.87 per cent. Recap Securities Nigeria Plc recorded N147.179 billion or 9.63 per cent, while Meristem Stockbrokers Limited and CSL Stockbrokers Limited facilitated N105.004 billion (6.8 per cent) and N81.429 billion (5.33 per cent) respectively.

ARMS Securities Limited traded N58.598 billion, which is 3.84 per cent, while FBN Securities Limited accounted for N52.636 billion or 3.45 per cent. Others among the to 10 are: United Capital Securities Limited-N47.019 billion(3.08 per cent); EFCP Limited-N46.566 billion (3.05 per cent); and Chapel Hill Denham Securities Limited-N45.537 billion (2.98 per cent).

Further analysis of the performance, in volume terms, showed that Stanbic IBTC Stockbrokers maintained the number one spot, trading 9.974 billion shares or 8.26 per cent. Capital Assets Limited accounted for 7.175 billion shares or 5.94 per cent. Rencap Securities Nigeria Limited recorded 6.683 billion shares which is 5.54 per cent, while CSL Stockbrokers Limited and United Capital Securities Limited accounted for 5.882 billion shares or 4.87 per cent and 5.701 billion shares or 4.72 per cent in that order.

Other top brokers are: Meristem Stockbrokers Limited-4.601 billion shares (3.81 per cent); ARM Securities Limited-4.492 billion shares (3.72 per cent); Cardinalstone Securities Limited-3.888 billion shares (3.22 per cent); FBN Securities Limited-3.765 billion shares (3.12 per cent) and Morgan Capital Securities Limited-3.791 billion shares(3.07 per cent).

The high value of trading was boosted by Mobil Oil Nigeria Plc and Dangote Cement that recorded a major transaction in the review period. While Nipco Investment Limited staked about N90 billion on 60 per cent stake in Mobil Oil Nigeria Plc, some foreign investors invested about N86.1 billion for 2.3 per cent stake in Dangote Cement Plc.

This was the third time foreign investors bought into Dangote Cement, where Africa’s richest man, Aliko Dangote has a controlling stake.

In 2013, South Africa’s Public Investment Corporation (PIC) bought 1.5 per cent for $289.3 million. Similarly, in 2014, Sovereign fund Investment Corp of Dubai (ICD) acquired 1.4 per cent for $300 million.

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.

Banking Sector

Peter Obaseki Retires as Chief Operating Officer of FCMB Group Plc

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The Board of Directors of FCMB Group Plc has announced the retirement of Mr. Peter Obaseki, the Chief Operating Officer of the financial institution, with effect from March 1, 2021. He was also an Executive Director of the Group.

His retirement was approved at a meeting of the Board of the Group on February 26, 2021. This has also been announced in a statement to the Nigerian Stock Exchange (NSE) by the financial institution.

The Chairman of FCMB Group Plc’s Board of Directors, Mr Oladipupo Jadesimi, thanked Mr. Obaseki for his valuable service and excellent support to the Board for many years.

FCMB Group Plc is a holding company divided along three business Groups; Commercial and Retail Banking (First City Monument Bank Limited, Credit Direct Limited, FCMB (UK) Limited and FCMB Microfinance Bank Limited); Investment Banking (FCMB Capital Markets Limited and CSL Stockbrokers Limited); as well as Asset & Wealth Management (FCMB Pensions Limited, FCMB Asset Management Limited and FCMB Trustees Limited).

The Group and its subsidiaries are leaders in their respective segments with strong fundamentals.

For more information about FCMB Group Plc, please visit www.fcmbgroup.com.

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Banking Sector

COVID-19: CBN Extends Loan Repayment by Another One Year

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Central Bank Extends One-Year Moratorium by 12 Months

The Central Bank of Nigeria (CBN) has extended the repayment of its discounted interest rate on intervention facility by another one-year following the expiration of the first 12 months moratorium approved on March 1, 2020.

The apex bank stated in a circular titled ‘Re: Regulatory forbearance for the restructuring of credit facilities of other financial institutions impacted by COVID-19’ and released on Wednesday to all financial institutions.

In the circular signed by Kelvin Amugo, the Director, Financial Policy and Regulation Department, CBN, the apex bank said the role-over of the moratorium on the facilities would be considered on a case by case basis.

The circular read, “The Central Bank of Nigeria reduced the interest rates on the CBN intervention facilities from nine per cent to five per cent per annum for one year effective March 1, 2020, as part of measures to mitigate the negative impact of COVID-19 pandemic on the Nigerian economy.

“Credit facilities, availed through participating banks and OFIs, were also granted a one-year moratorium on all principal payments with effect from March 1, 2020.

“Following the expiration of the above timelines, the CBN hereby approves as follows:

“The extension by another 12 months to February 28, 2022 of the discounted interest rate for the CBN intervention facilities.

“The role-over of the moratorium on the above facilities shall be considered on a case by case basis.”

It would be recalled that the apex bank reduced the interest rate on its intervention facility from nine percent to five percent and approved a 12-month moratorium in March 2020 to ease the negative impact of COVID-19 on businesses.

To further deepen economic recovery and stimulate growth, the apex bank has extended the one year-moratorium until February 28, 2022.

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Finance

MTN Nigeria Generates N1.35 Trillion in Revenue in 2020

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MTN Nigeria Grows Revenue by 15.1 Percent from N1.169 Trillion in 2019 to N1.35 Trillion in 2020

Despite the COVID-19 pandemic and challenging business environment, MTN Nigeria realised N1.346 trillion in revenue in the financial year ended December 31, 2020.

The leading telecommunications giant grew revenue by 15.1 percent from N1.169 trillion posted in the same period of 2019.

Operating profit surprisingly jumped by 8.5 percent from N393.225 billion in 2019 to N426.713 billion in 2020.

This, the telecom giant attributed to the surge in finance costs due to increased borrowings from N413 billion in 2019 to N521 billion in 2020.

MTN Nigeria further stated that the increase in finance costs was the reason for the decline in growth of profit before tax to 2.6 percent.

MTN Nigeria grew profit before tax by 2.6 percent to N298.874 billion, up from N291.277 billion filed in the corresponding period of 2019.

The company posted N205.214 billion profit for the year, a 0.9 percent increase from N203.283 billion recorded in the 2019 financial year.

Share capital remained unchanged at N407 million. While Total equity increased by 22.3 percent from N145.857 billion in 2019 to N178.386 billion in 2020.

MTN Nigeria’s market price per share increased by 61.8 percent from N105 to N169.90.

While market capitalisation as at year-end also expanded by 61.8 percent to N3.458 trillion, up from N2.137 trillion.

The number of shares issued and fully paid as at year-end stood at 20.354 million.

MTN Nigeria margins were affected by Naira devaluations and capital expenditure due to the new 4G network coverage roll-out.

Margins were adversely affected by the effect of naira devaluation and expenses associated with new sites’ roll-out to boost 4G network coverage in FY’20.

“On the former, we note that MTNN expanded the scope of its service agreement with IHS Holding Limited and changed the reference rate for converting USD tower expenses to NAFEX (vs CBN’s official rate previously). Thus, over the full-year period, the company’s operating margin contracted by 1.9 ppts YoY to 31.7%,” CardinalStone stated in its latest report.

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