Stocks extend three-day gaining streak amid waning bargains momentum

THE equities market closed yesterday on a positive note, as Nigerian Stock Exchange [NSE] All Share Index [ASI] appreciated by 0.36 per cent to close at 29,282.04 basis points, compared with the 2.55 per cent appreciation recorded previously. Its Year-to-Date (YTD) returns currently stands at 15.51 per cent.

  Market breadth also closed positive as Okomu Oil led 25 gainers against 13 losers topped by Julius Berger at the end of yesterday’s session- an improved performance when compared with previous outlook.

  Market turnover closed positive as volume moved northwards by 32.98 per cent against 15.17 per cent uptick recorded in the previous session. CWG, Guaranty and Access were the most active to boost market turnover. Guaranty and Nigerian Breweries topped market value list.

 On sectoral indices,  LII recorded 2.40 per cent gain to emerge the most supportive sectoral index among others while NSE BANKING emerged as worst hit to close with 0.08 per cent.

Volume shockers included International Breweries which led the list of active stocks that recorded impressive volume spike at the end of yesterday’s session. 

 Meanwhile, the Securities and Exchange Commission (SEC) Nigeria has stated that its directive that unclaimed dividend be returned to the companies after 15 months of declaration was in compliance with the existing law on dividend declaration and aimed at protecting the investing public.

  Acting Director General of SEC, Mounir Gwarzo made this clarification  when the leadership of the major shareholders’ associations in Nigeria paid him a courtesy call. 

  According to Gwarzo, the Companies and Allied Matter Act (CAMA) states that unclaimed dividend should revert to the companies after 15 months and that the companies should not invest the monies in their operations.

   He also disclosed that the Commission has directed Registrars to make e-dividend payment directly into the bank accounts of investors. In this regard, he encouraged shareholders to have their bank accounts ready and make them available to the registrars to facilitate e-dividend payment to reduce the mounting unclaimed dividend.

On the legacy issue, Gwarzo said a committee has already been set up between the SEC, the Nigerian Stock Exchange (NSE) and the Central Securities Clearing System (CSCS) Plc to find solution to it.

   According to him, the Commission has finalized the Investor Protection Fund to boost investor confidence while there is collaboration with the Central Bank of Nigeria (CBN) for direct payment of dividends to bank accounts of shareholders. 

He also informed the shareholders that the Commission would soon embark on massive public enlightenment programme to educate the public at the grass root level towards reaping better returns on their investment in the capital market.

  The public enlightenment, according to him will not be limited to dividend payment alone but also on other recent issues in the market like dematerialization, straight through processing and Complaints Management Framework. He therefore called for collaboration with the various associations of shareholders.

  The leadership of shareholders associations that came to SEC included Sir Sunny Nwosu, Elder Goodluck Akpore, Dr. Faruk Umar, Eng. Francis Orji, Barr. Boniface Okezie, Chief Timothy Adesiyan and Chief Sola Abodunrin.

They all commended the new leadership of the Commission, saying it is now under a person who understands the market because Gwarzo has been in the market for more than 20 years. 

  They also expressed willingness to come together under one umbrella body like what operates in the labour union in which many associations are under the Nigerian Labour Congress (NLC).

  The shareholders leaders also commended the Commission on the funding of the Investments and Securities Tribunal (IST) as according to them, this will strengthen the tribunal to undertake its activities effectively.

   Speaking to company secretaries and legal advisers of manufacturing companies in a separate meeting, Gwarzo urged them to be in the vanguard of supporting the directive to registrars to return unclaimed dividends to the companies after 15 months.