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Rebalance Investment Portfolios for Second Half of ‘Bullish’ 2021: deVere CEO



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The bullish sentiment gripping global stock markets will hold, but investors should prepare to rebalance their portfolios in order to grow their wealth in the second half of 2021, affirms the CEO of one of the world’s largest independent financial advisory and fintech organisations.

The observation from Nigel Green, the chief executive and founder of deVere Group, comes as economies increasingly re-open and move into a phase of steadier growth.

Mr Green comments: “The first half of 2021 was all about recovery from the pandemic. It was an impressive rebound with investor confidence soaring following a challenging previous year.

“The bullish sentiment remains, yet investors now need to be looking ahead to a new phase: a move from recovery mode to sustained growth.

“As we move through this transition period, and the economic cycle continues moving rapidly, investors should prepare to review, and where necessary, rebalance their portfolios in order to grow their wealth and avoid risks in the second half of the year.”

With optimism still high due to the vaccine rollout, low interest rates, massive government spending and soaring consumer confidence, the deVere CEO says that investors must not get complacent and should avoid the ‘buy everything’ mindset.

“Global growth is expected to accelerate to 5.6% this year, with the global economy poised to stage its most robust post-recession recovery in 80 years in 2021, according to the World Bank. Against the backdrop, investors will be actively looking to top-up their portfolios,” says Mr Green.

“However, in this volatile and transitory phase, now more than ever, investors must be selective as there will be clear winners and losers.

“For instance, investors are likely to be interested in returning to those stock market sectors that benefit most from low bond yields, such as tech and other growth sectors, and ‘bond proxies’ such as utilities and insurance stocks.

“Meanwhile, the value sectors such as financials and industrials, seen as plays on economic recovery, are likely to have a little bit of their shine rubbed off.”

He continues: “Investors should also move to ensure that they mitigate the risks of policy shifts in regard to stimulus agendas and financial support mechanisms.  This is because such shifts could help drive divergences between sectors, assets and regions.”

Mr Green concludes: “In the second half of 2021, the overriding sentiment of global stock markets will remain bullish, but investors need to be aware that the landscape is quickly evolving from one half of the year to the other.

“In order to truly seize the opportunities over the two quarters, investors would be wise to review their portfolios with an independent financial adviser.

“As always, investors should be as diversified as possible in order to maximise returns relative to risk. This means geographical, sector and asset class diversification.”

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

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Capital Market

AELP Link to Boost Trading Between NGX and Other African Exchanges



capital market - Investors King

Cross-border trading from one African securities exchange to another comes a step closer today after the African Securities Exchanges Association (ASEA) signed a contract to procure an order-routing system. Seven of Africa’s leading securities Exchanges are working together in the African Exchanges Linkage Project (AELP) to boost pan-African investment flows and bring more liquidity to African markets.

The contract is for the design and rollout of the AELP Link technology platform for routing orders and trade confirmations between stockbrokers on the seven Exchanges participating in the pilot phase of the AELP. The Supplier is DirectFN, a global IT firm experienced in capital markets solutions across the Middle East and many emerging and frontier markets, which was awarded the contract after a competitive bidding process that attracted applications from top international suppliers in 18 countries.

The AELP is a joint initiative by ASEA and the African Development Bank (AfDB) aimed at unlocking Pan-African investment flows, promoting innovations that support diversification for investors, and addressing depth and liquidity in the markets. It is funded by a grant from the Korea-Africa Economic Cooperation (KOAFEC) Trust Fund managed by the African Development Bank.

Speaking on the development, Mr. Temi Popoola, Chief Executive Officer, Nigerian Exchange (NGX) Limited, said: “At NGX, we are optimistic that today’s milestone will further hasten efforts at capital market integration across Africa. The work of the AELP is significant, as it will serve to ultimately boost Pan-African investment flows, promote innovations that support the diversification needs of investors in Africa, and help address the lack of depth and liquidity in Africa’s financial markets. We, therefore, take this opportunity to commend the efforts of ASEA and AfDB, and reiterate our continuing support of the AELP.”

With the AELP Link, investor orders in one market will be channeled by a domestic stockbroker to a stockbroker on the foreign market where the security is listed, to enter into that market for execution in the foreign market. African Listed Securities to be accessed through the AELP Link include all securities that are available for cross-border investors.

Equity investments available include Africa’s most promising and profitable businesses as well as some global leaders among more than 1,050 companies listed. Investors will also buy or sell corporate and government bonds, Exchange Traded Funds (ETFs), and derivatives where these are listed on the participating exchanges and the sponsoring stockbroker provides access.

Commenting, Dr. Felix Edoh Kossi Amenounvé, President of ASEA and CEO of the BRVM, said: “We are excited with this big step towards free movement of investments across Africa and free flow of capital. Our aim is to open new opportunities for individual and institutional investors to invest productively into Africa’s growth story. The Exchanges continue to support African enterprises and governments to raise long-term capital for African jobs, business growth, infrastructure, and development.”

Dr. Walid Al Ballaa, the Managing Director, of DirectFN, said: “With innovative technology and focus to bring digital maturity in building digital relationships through the AELP-Link technology platform establishment, DirectFN feels equally excited to assist practically in realizing the goals across the participating African Exchanges and to enable the African capital market ecosystem digitally to create a positive impact on the overall economy.”

The AELP exchanges are Nigerian Exchange (NGX), Casablanca Stock Exchange, The Egyptian Exchange, Johannesburg Stock Exchange, Nairobi Securities Exchange, Stock Exchange of Mauritius and Bourse Régionale des Valeurs Mobilières (stock exchange for the West African Economic and Monetary Union’s eight West African countries).

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Capital Market

Seplat kicks off Capital Markets Day with NGX Closing Gong Ceremony



Seplat Energy Plc - Investors King

Nigerian Exchange (NGX) Limited hosted Seplat Energy to a digital Closing Gong ceremony to commemorate the first dual Capital Markets Day between Lagos and London on Thursday, 29 July 2021. The event marks an important milestone for Seplat marking its name change from Seplat Petroleum Development Company to Seplat Energy.

Speaking at the event, the Chief Executive Officer, NGX, Mr. Temi Popoola, CFA, commented: “We are delighted to host the Management Team of Seplat Energy led by the Chief Executive Officer, Mr. Roger Thompson Brown. Over the last decade, Seplat has established itself as a leading independent Nigerian energy company completing the first-ever dual listing on the Premium Board of NGX and Main Market of the London Stock Exchange (LSE), an arrangement facilitated by the capital markets agreement between NGX and LSE. In 2014, Seplat raised tier one capital via the Initial Public Offering of US$535Mn, ranking as the largest ever capital raise for a Nigerian company since 2008, and the second-largest ever for a Nigerian company. Certainly, NGX is proud to have been a trusted business partner to Seplat Energy over the years, and we assure its leadership of our support in achieving its strategic objectives.”

On his part, Mr. Brown stated, “This is indeed an exciting day for us and we are delighted to be speaking from the stage of the LSE. Given the delightful partnership we have with NGX beginning in the early days of getting ready for listing, and what was noteworthy was the way NGX linked up with LSE to permit the first-ever dual listed company with full fungibility of trading between Lagos and London. This collaboration has gone from strength to strength and it is therefore fitting that NGX opens this Capital Market Day. For us at Seplat, we see the critical need for energy transitions in Nigeria and we are here as the indigenous, independent energy with proud roots in Nigeria and the global reach that allows us to access the capital to fund these transitions.”

Following remarks from the Doyen of the capital market, Alhaji Rasheed Yusuff, Mr. Brown sounded the virtual closing gong to the applause of NGX and Seplat Executives, as well as capital market stakeholders officially kicking off its Capital Markets Day.

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Capital Market

FBNQuest Series 19 Commercial Paper Listed on FMDQ Securities Exchange Limited Platform



FBNquest - Investors King

FBNQuest, the investment banking and asset management business of FBN Holdings Plc, has announced the listing and acceptance of the FBNQuest Merchant Bank Series 19 Commercial Paper (CP) on the FMDQ Securities Exchange Limited platform. 

FBNQuest Merchant Bank acted as the Arranger, Dealer and Sponsor of the transaction. The issue was approved by the FMDQ Securities Exchange Limited and has been listed on its platform.

The offer was launched in June. The Series 19 CP, which is part of the bank’s N100 billion CP Program, will help the organisation meet its short-term liquidity needs and grant them access to alternative and cheaper source of funding.

The transaction adds to the organisation’s impressive portfolio and highlights its capabilities in the successful execution of sizeable capital market and commercial debt transactions. Speaking on the transaction Oluseun Olatidoye, Head Capital Markets, FBNQuest Merchant Bank, stated, “We are pleased to announce the listing and acceptance of the FBNQuest Merchant Bank Series 19 Commercial Paper on the FMDQ Securities Exchange Limited’s Platform.  The admission of the CP Offering on FMDQ’s platform reflects the potential and growth of the Nigerian Debt Capital market”.

He further stated that “The success recorded on this transaction also attests to the degree of confidence investors have in the business”.

As a full service investment bank, FBNQuest has advised on the issuance of several Bonds and Commercial Papers for organisations such as Interswitch; Mixta Real Estate plc, Dangote Cement Plc, Nigerian Breweries Plc (NB), Lafarge Africa Plc, Flour Mills of Nigeria Plc (FMN), Wema Bank Plc, and UACN Property Development Company Plc (UPDC) to mention a few.

The organisation, through its Leading Conversations with FBNQuest webinar series, recommended commercial papers and bonds to corporate issuers seeking to raise working capital, expand capital, refinance expensive debt and better match their cash obligations with revenues. The webinar was themed ‘Funding through Commercial Papers and Bonds’ and was designed to engage corporates and investors on the opportunities within issuing and investing in commercial papers and bonds.

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