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Nigeria: NSE Honours Amazon Energy CEO

nigeria nse honours amazon energy ceo
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In recognition of his contributions to the development of the engineering profession in Nigeria, the council of the Nigerian Society of Engineers (NSE) has honored the Chief Executive Officer of Amazon Energy Group, Engr. Olayinka Oluwatimehin with a fellowship award.

A statement from the company explained that the fellowship conferment was done at the NSE 2020 annual conference and AGM with the theme: “Engineering Education and Lifelong Learning Opportunities for Sustainable Development.”

Oluwatimehin was among other engineers inducted as fellows by NSE at the event which had practicing engineers gathered to discuss key issues related to engineering development.

The NSE President Babagana Mohammed, described Oluwatimehin and other new fellows as worthy members of the engineering body.

In his response, Oluwatimehin commended efforts of the NSE’s leadership in revamping the engineering sector, while promising to continue to contribute his quota to the profession and industry.

He said being an engineer has propelled him into developmental activities that are at the forefront of the country’s development, “and becoming a fellow of the prestigious engineering body will double his efforts in nation-building.”

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Kenya: NSE Extends Suspension of NBV From Trading On the Bourse Untill November 30

kenya nse extends suspension of nbv from trading on the bourse untill november 30
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Nairobi — The Nairobi Securities Exchange has extended the suspension of Nairobi Business Ventures from trading on the bourse until 30th November 2020.

The extension of suspension was approved and issued by the Capital Market Authority.

NSE through a statement said the extension is meant to give NBV time to complete its restricting exercise on some of its operations.

“Notice is hereby given on the extension of suspension from trading of Nairobi Business Ventures Limited shares,” reads the notice.

“The extension of the suspension is to allow for the completion of the company’s restructure exercise which includes a share split, allotment and issuance of shares to Delta International FZE (Delta) and subscription agreement between NBV and Delta,” it added.

NBV Limited deals in the sale of shoes and leather accessories.

The firm’s shareholders had recently approved a Sh83 million investment by Dubai-based Delta International FZE.

The shareholder approval of the Sh83 million investment will result in Delta International FZE owning an 84 percent stake in NBV, pending all regulatory approvals.

They also approved splitting the shares into two which should result in greater liquidity in the stock.

The shareholder approval now paves the way for NBV to venture into new businesses including trading and the manufacturing of sustainable products.

The investment will additionally result in the creation of 415 million new shares tradable on the Nairobi Securities Exchange (NSE).

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Tanzania: Dse Activities to Remain Firmer

tanzania dse activities to remain firmer
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Dar es Salaam Stock Exchange (DSE) activities will remain firmer as investors are likely to improve after the general election successful and safely ended.

Market analysts’ projection based on the fact that both local and foreign investors activities have increased after turnover and stock prices rose last week.

The DSE market turnover almost went up four times to 4.5bn/- for the week that ended Friday compared to 1.2bn/- of previous week.

Tanzania Securities said in their Weekly Market Blast that this week the bourse was expected to remain attractive with the coming back of foreigners amidst growing stock appetite for local investors.

“The market [will] remain firmer, investors’ partaking is likely to improve both local and foreign as the general election ended well.

“This indicates that the market will remain attractive with foreign investors going forward,” Tanzania Securities said in the report.

Foreign purchase jumped almost four times from 851.43m/- to 3.16bn/-.

For the week ending last Friday, EABL share price increased by 5.03 per cent to 3,340/- from 3,180/-, KCB rose by 5.33per cent to 790/- from 750/-, Nicol by 9.09per cent to 180/- from 165/- and NMG by 11.11per cent to 350/- from 315/-.

On the other hand, JHL share price decreased by 0.88per cent to 5,650/- from 5,700/-.

Zan Securities Chief Executive Officer Raphael Masumbuko said in Weekly Market Wrap-up that the equity market performance echoed their last week’s sentiments.

“We forecast further improvements in performance [this] week as we expect block trades to continue” Mr Masumbuko said.

Last week, TBL was a top market mover, taking 76.97 per cent of the total market share, followed by CRDB Bank with 19.33 per cent.

Total market capitalisation increased by 1.68 per cent to 15.049tri/-, while domestic market capitalisation increased by 0.01 per cent to 9.129tri/-.

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Tanzania: Domestic Share Index Records Bullish Trend in Second Consecutive Week

tanzania domestic share index records bullish trend in second consecutive week

THE Tanzania Share Index (TSI) recorded a bullish trend for yet another week as Twiga Cement maintains the rally. The price of Twiga gained 3.97 per cent while closing the week at a price of 2,620/- from previous week’s 2,520/- per share.

The counter closed at the highest of 2,640/- on Wednesday 04th November 2020 before partially retreating back to 2,620/- on Friday 06th November. Twiga Cement traded a total of 0.36m shares to generate a turnover of TZS 949.4m ($0.41m) to realise a weighted average price of 2,622/-.

About 83 per cent of the activities on the counter were through a prearranged block transaction executed on Wednesday. Twiga accounted for 76 per cent of the total equity turnover for the week, making the counter the top mover, toppling off CRDB from the spot.

As a result of the activities on the Twiga counter, the TSI went up by 6.85 points to close the week at TZS 3,476.02 points. Correspondingly, the domestic market capitalisation grew by 0.2 per cent to close the week at TZS 9,128.54bln ($3.95bln). The TSI is up 44.92 points since the beginning of the year, while the domestic market cap is up 1.31 per cent.

Apart from Twiga, another major mover was the NMB counter through a prearranged block transaction executed on Tuesday. The block was comprised of 172,541 shares traded at a price of 1,300/- per share, to realise a turnover of TZS 224mln ($0.97mln).

NMB accounted for 17.9 per cent of the total turnover generated during the week. NMB was followed CRDB and DSE which accounted for 4.9 per cent and 1.08 per cent of the total turnover respectively. The total equity turnover generated during the week was 52.2 per cent lower than the previous week despite having more trading sessions.

The total turnover during the week under review amounted to TZS 1.25bn ($0.54m) compared to TZS 2.61bn ($1.13m) for the previous week. The volume of shares traded during the week fell by 94 per cent week on week, to a total of 901,662 shares executed in 133 deals, up from 54 deals during the previous week.

The All Share Index (DSEI) on the other hand slightly fell by a 0.29 point to close the week at 1,782.64 points. The drop of the DSEI was caused by a fall in prices of National Media Group (NMG) and KCB Bank, by 10 per cent and 1.32 per cent respectively.

The drop of prices on the two counters neutralised the slight appreciation of East African Breweries (EABL) which gained 0.63 per cent. The total market capitalisation went down by a slight 0.02 per cent to close the week at TZS 14,799.78bn ($6.41bn).

Different from the previous week, foreign investors dominated the market while remaining net buyers. Foreign investors accounted for 68.13 per cent of the total investments during the week, and 63.4 per cent of the total divestments while locals accounted for the balance on both sides.

Market, bills and bonds Transaction value on the Interbank Cash Market (IBCM) went up more than three folds on a weekly basis. The accumulated value of transactions on the IBCM at the end of the week amounted to TZS 107.5bn ($46.56m) compared to TZS 30.4bn ($13.17m) traded during the previous week.

The interbank rates have been somewhat volatile since the end of quarter three, ranging between 3 per cent and 4 per cent. At the end of the week under review the interbank rate stood at 3 per cent which is 77bps down from the end of the previous week.

The 20 years Treasury bond was back during the week under review, on a Treasury auction held on 04th November 2020. The Bank of Tanzania offered the usual TZS 136bn ($58.87m) while the public tendered a total of 506 bids worth TZS 215.67bn ($93.36m).

The minimum successful price appreciated by 6.13bps to 100.00 per cent while the highest bid price lowered by 59bps to 103.41 per cent. The Bank of Tanzania accepted a total of 486 bids worth TZS 150.53bn ($65.17m) equivalent to 110.7 per cent of the offer size.

The weighted average price went up by 51.68bps and as a result the weighted average yield to maturity (WAYTM) lowered by 12.38bps to a WAYTM of 15.3874 per cent.

Currency market The value of transactions on the Interbank Foreign Exchange Market (IFEM) rose by 21.8 per cent to a total of $5.3m compared to $4.35m during the previous week.

The previous week had fewer trading days due to the elections and the Maulid. The shilling maintained stability with a slight appreciation of 3 pips to close the week at a weighted average exchange rate of TZS 2,309.09/USD.

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Ghana: Ghana Urged to Invest in Companies Listed On Stock Exchange

ghana ghana urged to invest in companies listed on stock

The Managing Director of the Ghana Stock Exchange (GSE), Mr Ekow Afedzie has called on Ghanaians to invest in companies listed on the exchange.

He said the only way for the economy to develop was for Ghanaians to invest in risk assets such as equities than treasury bills.

Speaking at the launch of the 30th anniversary celebration of the GSE in Accra yesterday, Mr Afedzie for example said the returns on equities were better than treasury bills, if the equities performed well.

The 30th anniversary of the GSE established in 1989 is on the theme “30 Years of Ghana Stock Exchange and National Development.”

He said some Ghanaians were risk averse and were interested in treasury bills instead of buying equities.

Mr Afedzie entreated pension fund companies to participate actively on the activities of the stock exchange.

He said so far the GSE had helped provide a market for the raising of long term capital, saying so far the market had raised more than GH¢5.41 million for expansion to meet the capital requirements of companies and improve their technology.

“The market capitalisation improved from GH¢3.05 million in 1990 to GH¢53, 11.38 million as of October 31, 2020,” he said.

Mr Afedzie said domestic market capitalisation as of October 31, 2020 stood at GH¢19, 296.94 million and the total volume of shares traded from November 1990 to October 2020 was 8,651,971 and valued at GH¢4, 638.89 million.

“Value traded on the Ghana Fixed Income Market has increased from GH¢5.2 billion in 2015 to GH¢85, 00.52 million at the end of October 2020,” he said.

Outlining measures to further position the GSE as a preferred choice of raising long term capital, Mr Afedzie said the demutualisation programme of the GSE had not been abandoned.

He said the demutualisation would change the GSE as company limited by guarantee to a company limited by shares and this will allow the GSE to have shareholders.

“The GSE next year will carry out a lot of strategic initiatives for the upliftment of the market to see more liquidity and listing on the market,” the Managing Director said.

Mrs Diana Okine, the Head of Marketing and Public Relations of the GSE said a lot programmes had been outlined for the 30th anniversary celebration.

“Today November 12, 2020 will be our anniversary trading day. This ceremony will be witnessed by the Minister of Finance and host of dignitaries, and the ringing of the bell to mark our 30th anniversary,” Mrs Okine said.

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Zimbabwe: Govt, Forex Interventions Buoys Afdis

zimbabwe govt forex interventions buoys afdis
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Zimbabwe Stock Exchange-listed alcoholic beverages and spirits manufacturer African Distillers Limited (Afdis) has commended government’s fiscal and monetary policy interventions which allow consumers to settle in foreign currency.

In its quarterly trading update for the period ended September, Afdis said there was a general improvement in the trading environment characterised by stability in exchange rates and prices of goods and services.

“The ability of customers to settle in foreign currency and the foreign currency auction system have brought the well needed relief to the industry and the economy at large.

“The company was able to meet all its demand and satisfy the market requirements owing to the improved foreign currency supply,” Afdis said, adding that the Covid-19 pandemic, however, negatively impacted the economy in the quarter under review as restrictions and prohibitions on travel and social gatherings affected overall demand.

Despite the Covid-19 pandemic, which saw most companies struggling, Afdis registered a volume growth of 28% for the quarter over the same period last year.

The company said spirits and ready-to-drink volumes grew 43% and 24% respectively and wines declined by 38% over the same quarter last year comparative.

Afdis said revenue for the first quarter at ZW$456million (US$5,630 million) increased by 15% in inflation adjusted terms, whilst in historic terms it grew ahead of inflation to 884% compared to the same period in the prior year.

“In addition to the growth in volume, a favourable sales mix which favoured higher valued spirits largely contributed to the good revenue performance,” the company said.

Going forward, Afdis said performance of the economy is largely dependent on the consistency of monetary and fiscal measures put in place by the authorities. The company said its management will continue to focus on protection of market share, innovation and cost management to enhance shareholder value. On the Covid-19 pandemic, Afdis said the extent of the impact of the pandemic on the company’s business performance will depend on many factors including the duration and spread of the outbreak, impact on customers, suppliers, employees, fiscus and government interventions all of which are uncertain, making it difficult to fully estimate its full impact.

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Zimbabwe: Stock Exchange Triggers Investor Interest

zimbabwe stock exchange triggers investor interest

Business Reporter

The recently launched Victoria Falls Stock Exchange (VFEX), is generating interest from potential investors after it officially opened its doors late last month.

The VFEX was launched on October 23, 2020 by Finance and Economic Development Minister Professor Mthuli Ncube in the resort town of Victoria Falls.

The exchange is operated by the Zimbabwe Stock Exchange (ZSE).

Currently, Seed Co International is the only counter now trading on the exchange but more companies are expected to start flocking the exchange that is a vehicle for raising capital in foreign currency. Mining firms and other export-oriented firms are tipped to be on the exchange.

ZSE head of business development Anymore Taruvinga said following the launch, the exchange has been preparing for listings by ensuring trading and settlement were in sync.

He indicated high growth prospects for the exchange.

“The interest has been huge and we look forward to the growth of the exchange.

“After the launch the VFEX has been preparing for trades through ensuring that the trading and settlement systems are in sync.

“Market participants and investors were also taken through the trading settlement modalities to ensure they fully understand the process,” said Taruvinga.

First trade on the exchange was recorded on November 6, with 1000 shares exchanging at 18 US cents a share.

By close of trade Wednesday, Seed Co International was flat at 18 US cents.

“Currently only Seed Co International has been listed on VFEX. Listing is not a one-day event, generally taking up to 9 months to get requisite internal and external approvals for potential issuers,” said Taruvinga.

Experts in the capital markets and mining sector say the exchange has potential to become a game changer in a country endowed with vast mineral resources.

The exchange trades in hard currency which makes it a good funding mechanism especially for the mining sector, which is seen as an enabler for economic growth. As such various incentives have been put in place to increase its allure among other African exchanges.

For instance, withholding tax for companies that list on the VFEX is less than others at 5 percent, while those on the ZSE is 10 percent. For non-listed companies, withholding tax is pegged at 15 percent.

The exchange takes away exchange rate risk as it trades in hard currency with listing rules and regulations that are in line with international best practice.

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Nigeria: NSE Activates Rule to Arrest Surge in Share Prices

nigeria nse activates rule to arrest surge in share prices

The Nigerian Stock Exchange (NSE) yesterday halted trading at the stock market for 30 minutes following an unprecedented spike in the prices of stocks that led to a jump of over 6.2 per cent in the NSE All-Share Index (ASI) as against the set 5.0 per cent threshold.

The NSE had to halt trading at 12.55 pm, using the circuit breaker when the NSE ASI rose beyond the set threshold of 5.0. This is the first time that the circuit breaker had been triggered since its introduction in 2016.

The exchange explained that the circuit breaker protocol was triggered by the increase of the NSE ASI from 33,268.36 to 34,959.39. The market reopened at exactly 1:25p.m, with a 10-minute intraday auction session, before resuming continuous trading till the close of the day at 2:30p.m. During the halt of trading, no order could be placed until trading resumed. However, existing orders could be withdrawn or cancelled but could not be modified. Trading halts did not affect the clearing, settlement, and depository operations for matched trades, as these functioned as normal.

Furthermore, all existing orders keyed in prior to the trading halt were re-activated and were matched upon resumption of trading.

Despite the halt in trading for 30 minutes, the NSE ASI rose 6.2 per cent to close at 35,342.46, from 33,268.36 while market capitalisation gained N1.085 trillion to close higher at N18.468 trillion, up from N17.384 trillion. This implies that the market has recorded a gain of N2.261 trillion or 7.3 per cent within four trading days due to sustained high demand for stocks.

The stock had gained N1.934 trillion in October to record its best monthly gain since 2018 on the continued inflow of funds searching for real returns and positive reactions to better-than-expected third quarter (Q3) and nine months earnings.

The positive trend has been sustained in the first eight days of November, gaining N1.425 trillion or 8.9 per cent as at the close trading on Wednesday. However, demand for stocks peaked yesterday sending the NSE ASI beyond the 5.0 per cent threshold. Hence, the NSE triggered the circuit breaker.

Circuit breaker was designed to give the market an opportunity to take a break and adjust to all available information before re-opening the market. It provides protection against excessive volatility during continuous trading sessions of the market.

Circuit breakers provide the opportunity for greater information dissemination and assimilation to all market participants, including investors, to facilitate better informed investment decision making during periods of high market volatility.

The NSE in 2016 amended its circuit breaker rule, saying it will be triggered during periods of extraordinary volatility in the equities market in order to maintain an orderly market and to allow liquidity to re-aggregate.

The NSE set the threshold at 5.0 per cent for the first trigger and a further 5.0 per cent for the second trigger in the same direction.

According to the exchange, the purpose is to dampen extraordinary volatility swings on market prices by providing time to restore equilibrium between buyers and sellers.

“It has the objective of dampening both market upswings and market downswings, and will complement the price limits on individual stocks already in place. “The exchange, through the Index Circuit Breaker Rule, seeks to promote just and equitable principles of trade, remove impediments to and improve the mechanism of a free and open market; and protect investors and the public interest,” the exchanged had explained.

It is still expected that the market will remain bullish as investors await the results of leading banks even as volume and value remain high.

Yesterday, for instance, investors traded 1.2 billion shares worth N17. 4 billion, up by 39 per cent in volume and 92 per cent in value terms compared to 858.157 million shares valued at N9.063 billion traded the previous day.

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Nigeria: NSE Facilitates N1 Trillion Capital Raise for Govts, Corporates in 10 Months

nigeria nse facilitates n1 trillion capital raise for govts corporates in 10 months

Governments and corporates have raised about N1 trillion across the various asset classes of the Nigerian Stock Exchange (NSE) between January and October, between January and October, the Divisional Head, Listings Business, NSE, Mr. Olumide Bolumole, has said.

He disclosed this at a webinar hosted by the exchange in collaboration with Odu’a Chambers of Commerce and Industry on Wednesday in Lagos.

The themed: “Capital Raising in a Pandemic,” the vent was held in furtherance of the NSE’s commitment to educating business promoters on the alternative funding opportunities available in the capital market to catalyse business growth. This comes on the back of the significant reduction in major sources of revenue for key sectors of the economy occasioned by the COVID-19 pandemic and other macroeconomic issues which have negatively impacted business across various industries and highlighted the need for capital raising opportunities.

According to Bolumole, the NSE as a platform for capital formation has products and services to support capital raising across economic sectors, adding that the NSE continues to deliver on its promise to provide a platform for issuers and investors to meet their financial objectives even in the most difficult times.

” For instance, despite the impact of COVID -19, the NSE has facilitated needed financing with about N1 trillion in capital raised by governments and corporates between January and October across various asset classes. With the All Share Index as at the 9th of November appreciating by over 20 per cent since the start of the year and the fixed Income market capitalisation currently over N17 trillion, the market has depth to accommodate required capital,” he said.

Also speaking, the Head of Department, Branch Network, NSE, Mr. Adeyemi Osoba, shed some more light on the NSE Growth Board as a viable option for capital raising, especially for Small and Medium Sized Enterprises.

“The Growth Board was launched in January 2020 as part of the NSE’s initiatives to elevate the Nigerian Capital market and meet the needs of businesses at every phase of their lifecycle. It provides a platform for fast-growing companies to access cost-effective, long-term capital while enjoying relaxed entry criteria, reduced post-listing obligations and a wide range of value added services,” he said.

In his keynote address, the National Vice President, The Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), Dele Oye, expressed the association’s support of the Growth Board and encouraged SMEs to take advantage of the exchange’s platform to access the right-sized capital required to scale their businesses.