, 2014
THE NATION FRIDAY, MARCH 7, 2014
55
EQUITIES
NSE’s index slips below 39,000 mark as bears bite harder T
HE benchmark index for the Nigerian stock market slipped below the 39,000 points yesterday as the downtrend at the Nigerian Stock Exchange (NSE) deepened. The All Share Index (ASI), which tracks prices of all quoted equities and as such doubles as Nigeria’s country index, slipped to 38,944.62 points yesterday from its opening index of 39,127.41 points. The 0.47 per cent decline in the benchmark index depressed the average year-to-date return to -5.77 per cent. With nearly two losers for every gainer, aggregate market value of all quoted companies dropped from N12.568 trillion to N12.509 trillion. Most stocks closed flat. A total of 121 stocks were traded, with 32 gainers and 18 losers.
Stories by Taofik Salako Capital Market Editor
Declines across the sectors underlined the overt negative market situation. Besides the widespread bearishness, the negative overall market situation was orchestrated by losses by highly capitalised stocks such as fast moving consumer goods sector. The NSE 30 Index, which tracks the 30 most capitalised stocks, declined by 0.51 per cent. The NSE Consumer Index dropped by 1.0 per cent. The NSE Insurance Index declined by 0.6 per cent. The NSE Banking Index slipped by 0.4 per cent. Meanwhile, the NSE Industrial Index closed al-
most flat while the NSE Oil & Gas Index played the contrarian with a gain of 1.5 per cent. Flour Mills of Nigeria led the losers with a drop of N5.30 to close at N76. Nigerian Breweries followed with a loss of N2.47 to close at N146.42. Presco trailed with a loss of N2 to close at N44. Dangote Cement declined by N1 to close at N237. UACN Property Development Company lost 89 kobo to close at N21.06. PZ Cussons Nigeria slipped by 50 kobo to close at N34.80. Access Bank dropped by 38 kobo to close at N7.31. Union Bank of Nigeria and University Press lost 21 kobo each to close at N9.75 and N4.08 respectively. Jos International Breweries declined by 19
kobo to close at N3.77 while United Bank for Africa (UBA) and Red Star Express lost 17 kobo each to close at N7.56 and N4.48 respectively. On the other hand, Forte Oil recorded the highest gain of N5.99 to close at N94.39. Lafarge Cement Wapco Nigeria followed with a gain of 71 kobo to close at N110.01. Guaranty Trust Bank added 35 kobo to close at N25. Eterna rallied 16 kobo to close at N4.10 while May & Baker Nigeria rose by 10 kobo to close at N2.14. Investors staked a total of N3.51 billion on 337.46 million shares through 4,259 deals. Financial services sector accounted for 260.9 million shares valued at N2.48 billion in 2,410 deals. Zenith Bank was the most active stock with a turnover of 47.13 million shares worth N1.01 billion in 221 deals.
Buffet eyes new takeovers, acquisitions
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ARREN Buffett has assured shareholders of his Berkshire Hathaway Inc that he has plenty of ways to deploy cash after posting record earnings in 2013. In his annual letter, Buffett highlighted how Berkshire’s energy unit will seek another takeover after a $5.6 billion acquisition, and he explained why a $12.3 billion investment to help take HJ Heinz Co. private was a template for future deals. The Berkshire chairman and chief executive officer also discussed subsidiaries’ appetite to spend billions of dollars on smaller transactions, as well as equipment and plants. “Though we invest abroad as well, the mother lode of opportunity resides in America,” Buffett wrote in the letter posted March 1, referring to his company’s capital spending, which climbed to a record $11.1 billion last year. Berkshire’s ability to deploy the gusher of cash produced by dozens of subsidiaries is a top concern for Buffett, 83, almost five decades after he took control of the company. Buffet’s stock picks and acquisitions created a business that generates more than $1 billion of profit a month. Omaha, Nebraska-based Berkshire doesn’t pay a dividend and seldom buys back its own stock, which means Buffett and his deputies need to find other uses for the capital.
Stockbrokers to undergo training
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SEC enforces electronic filing system for market operators S ECURITIES and Exchange Commission (SEC) has commenced implementation of an electronic filing system for all capital market operators. In a circular to all capital market operators titled “Notice: Introduction of electronic filing of quarterly returns by capital market operators” obtained by The Nation, SEC indicated that all market operators are expected to file their quarterly returns to the apex capital market’s regulator electronically starting from the three-month period ending March 31, 2014. Under the new system, market operators will essentially be re-
quired to complete an excel-based template which will be submitted alongside relevant schedules and documentary evidence to dedicated email addresses. Market operators include stockbroking firms, issuing houses, fund managers, custodians, trustees, and investment advisory firms, share registration companies, corporate secretaries, depository, securities exchange, venture capital, receiving bankers and underwriters among others. According to the directive, SEC
will enforce strict compliance with the e-filing system as the apex capital market regulator will not receive hard copies of quarterly returns from market operators as from the end of first quarter of 2014. The circular noted that the SEC’s quarterly return forms have been re-engineered to make it amenable to the new electronic system. Also, all capital market operators that have provided their official email addresses to the Commission will be sent an information update form by December 31, 2013,
which they are expected to complete and submit before January 31, 2014. The circular provided a link to the new quarterly returns template with an instruction manual to guide users through the e-filing process. The Commission also providse telephone helpline to assist operators in adapting to the new system. The apex capital market regulator however noted that the stipulated guidelines on submission of quarterly returns will still apply, thus market operators are expected to submit their returns within the stipulated deadline under SEC’s Rule 51, subsection 1, part a and b.
HE Nigerian Stock Exchange (NSE) is organising a one-day workshop to train dealing clerks on the new systems and functions in the new trading engine-XGen, recently launched by the NSE. Acting head, market operations, Nigerian Stock Exchange (NSE), Mr. Ade Ewuosho said that the objective of the workshop was to provide practising stockbrokers with a strong grounding in the advanced functionalities of the X-Gen. According to him, the workshop will also provide a detailed understanding of the new market structure recently introduced by the NSE as well as offer brokers an insight into how to reach the retail market using new technology implemented with X-GEN. “The broad-based programme will also provide the participants with an opportunity to hone in their existing skills as well as interact with other stockbrokers to deepen their knowledge of the new system. This will be the first continuous professional development programme since the Exchange went live on their new platform in September 2013. Emphasis will focus on the market participants, minimum operating requirements amongst other new developments in the capital market,” Ewuosho said. He added that the programme was aimed at keeping participants current with up to date information and trends relevant to their field noting that it would help to build operators’ confidence and professionalism. According to him, continuing education programmes benefit both businesses and workers; businesses encourage continuing education in order to sustain a highly skilled and specialized workforce –one with the skills to perform a variety of tasks or workers with “cross-functional” skills. Dealing Clerks, on the other hand, may receive promotions, gain more power in the job market, or become more valuable employees by enrolling for continuing-education programmes.