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NGX, NG Clearing Hold Engagement Session With PFAs on Derivatives

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Nigerian Exchange Limited Derivatives - Investors King

Nigerian Exchange (NGX) Limited continues to drive understanding of derivatives ahead of the launch of Exchange Traded Derivatives in the Nigerian capital market. On Thursday, 8 July 2021, NGX in collaboration with NG Clearing hosted a virtual engagement with Pension Fund Administrators (PFAs).

Speaking at the event, the Divisional Head, Trading Business, NGX, Mr. Jude Chiemeka stated, “In line with our committment to deepen the Nigerian capital market, NGX will introduce derivatives as a new asset class to the benefit of stakeholders, including PFAs. We are confident that derivatives will provide a greater pool of liquidity and the participation of PFAs in NGX derivatives market will not only allow PFAs to protect their positions but also benefit from various opportunities. That said, being the first line of contact for investors in the capital market, NGX is focused on educating market participants through workshops, webinar and conferences which will continue pre and post-product launch.

Mr. Chiemeka also highlighted three main elements which are critical to the success of any derivatives market and expounded on the efforts of NGX in ensuring these are in place. The areas are: market efficiency and integrity, financial safety and integrity, and customer protection (fair treatment of customers). He further stated, “Ahead of the launch of derivatives, The Exchange trading system, X-GEN, has been configured to trade derivatives products and there are rules governing order priority. Also, The Exchange has a robust market surveillance system – SMART – to monitor the market on a regular basis for any potentially manipulative behaviour of market participants.”

It would be recalled that NGX received approval for seven derivatives contracts from the Securities and Exchange Commission (SEC) on 28 June 2021. The approved contracts are: Access Bank Plc Stock Futures, Dangote Cement Plc Stock Futures, Guaranty Trust Bank Plc Stock Futures, MTN Nigeria Communications Plc Stock Futures, Zenith Bank Plc Stock Futures, NGX 30 Index Futures, and NGX Pension Index Futures.

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.

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Capital Market

NGX Lifts African Alliance, Royal Exchange Trading Suspension

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African Alliance insurance - Investors King

The Nigerian Exchange Limited (NGX) has lifted the suspension placed on trading in shares of African Alliance Insurance Plc and Royal Exchange Plc following their failures to filed their audited financial statements for the year ended 31 December 2020 and unaudited financial statements for the quarter ended 31 March 2021.

The companies were among the four companies suspended on 2 July 2021. However, the suspension was lifted after the two companies filed their audited financial statements and unaudited financial statements as required. The other two companies are the Niger Insurance Plc and the Tourist Company of Nigeria Plc.

NGX disclosed in a statement published on its website.

The statement reads, “African Alliance Insurance Plc and Royal Exchange Plc, two (2) of the four (4) listed companies that were suspended on 2 July 2021, have now filed their Audited Financial Statements for the year ended 31 December 2020 and Unaudited Financial Statements for the quarter ended 31 March 2021.

“In view of the companies’ submission of these financial statements, and pursuant to Rule 3.3 of the Default Filing Rules, which states that; “The suspension of trading in the issuer’s securities shall be lifted upon submission of the relevant accounts provided The Exchange is satisfied that the accounts comply with all applicable rules of The Exchange. The Exchange shall thereafter also announce through the medium by which the public and the SEC was initially notified of the suspension, that the suspension has been lifted”, Trading License Holders and the Investing Public are hereby notified that the suspension placed on trading on the shares of African Alliance Insurance Plc and Royal Exchange Plc was lifted on Monday, 4 October 2021.”

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Capital Market

Insider Dealing: Indimi Acquires an Additional 5.1 Billion Ordinary Shares Worth N3.3 Billion in Jaiz Bank Plc

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Alhaji Indimi - Investors King

Alhaji (Dr.) Muhammadu Indimi, the billionaire founder of Oriental Energy Resources, purchased additional shares of 5,076,923,077 in Jaiz Bank Plc, according to the statement published on the Nigerian Exchange Limited.

Indimi acquired the 5,076,923,077 ordinary shares at N0.65 per share, representing an investment of N3.3 billion or $8 million in the bank. The declaration is in line with the Nigerian Exchange Limited insider dealing disclosure instituted to enforce transparency across the Exchange.

The statement reads “Trading License Holders and the Investing Public are hereby notified that additional 5,076,923,077 ordinary shares of 50 kobo each of Jaiz Bank Plc (Jaiz Bank) were on Monday, 4 October 2021, listed on the Daily Official List of the Nigerian Exchange Limited (NGX).

“The additional shares listed on NGX arose from Jaiz Bank’s private placement of 5,076,923,077 ordinary shares of 50 kobo each to Alhaji (Dr.) Muhammadu Indimi at N0.65 per share.”

The billionaire previously owned 3,233,813,044 ordinary shares in the bank. He now holds 8,310,736,121 shares, representing 24.06 percent in the bank. Alhaji Indimi is Jaiz Bank’sAlhaji (Dr.) Muhammadu Indimi, the billionaire founder of Oriental Energy Resources, purchased additional shares of 5,076,923,077 in Jaiz Bank Plc, according to the statement published on the Nigerian Exchange Limited. largest shareholder.

On Monday 4, October 2021, Jaiz Bank listed the 5,076,923,077 on the Nigerian Exchange Limited (NGX). With the listing, the bank’s total issued and fully paid-up shares has now increased to 34,541,172,377 ordinary shares of 50 kobo each, up from 29,464,249,300.

Indimi is the founder and chairman of Oriental Energy Resources, a Nigerian oil exploration and production firm established in 1990.

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Airtel Nigeria to BuyBack N61.24 Billion Worth of Shares

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Airtel Financial Results - Investors King

Airtel Africa, a leading provider of telecommunications and mobile money services, with offices in 14 nations across Africa, on Monday announced that its subsidiary Airtel Networks Limited (‘Airtel Nigeria’), a leading provider of telecommunications services in Nigeria, has initiated a process under which it seeks to buy back the 8.27 percent minority shareholdings at an offer price of N55.81 per share.

The company disclosed in a statement filed with the Nigerian Exchange Limited and seen by Investors King.

According to the statement if all holders agreed to sell their shares, the total buy back is estimated at N61.24 billion  (c$148.1mn using an exchange rate of 413.38 NGN/USD).

Therefore, the telecommunication giant, disclosed that this represents an open offer to all shareholders.

A share buyback or repurchase is the re-acquisition by a company of its own shares. It represents an alternate and more flexible way of returning money to shareholders.

Share buyback sends a positive signal as the company is investing in its own shares because it is positive about its own future prospects.

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