INVESTORS DUMP 40% STOCKS OVER POOR CORPORATE GOVERNANCE
source : http://www.eyesoflagos.com/2017/12/investors-dump-40-stocks-over-poor.html

Amid domestic and global macro-economic challenges, investors on the Nigeria Stock Exchange (NSE) in 2017 deserted nearly 40 per cent stocks over poor corporate governance policy and poor performance on the bourse.
Eyes Of Lagos investigations revealed that, while some stocks deprecated in prices, these 40 per cent stocks were not traded, remaining at the same price for the second consecutive year.
‎It was learnt that Investors dumped stocks in the Information Processing companies, including Chams Plc, E-Tranzact International Plc, Courteville Investments Plc, Media/Entertainment, Daar Communications and Other Financial Institutions, Deap Capital Management & Trust Plc.
Since becoming moribund, investors have decided not to trade Dunlop (Nigeria) Plc and FTN Cocoa Processors Plc. Others are Evans Medical Plc, Omatek Ventures Plc, Premier Paints Plc and R. T. BRICOE (NIG.) Plc, among others.
Although NSE has over 170 stocks, investigation revealed that nearly 60 stocks remained flat between 2016 and 2017.
The banking stocks in 2017 benefited from the Central Bank of Nigeria (CBN) foreign exchange interventions and stable growth in global oil prices, while the Industrial companies also reaped earnings from federal government spending on infrastructures.
Investors on the Stock Market in 2017 gained 43.34 per cent of their investments given the growth in NSE All-Share Index (ASI) that has appreciated to 38,522.14 basis points in 2017 from 26,874.62 basis points it opened this year.
The market growth has been driven by surge trading on some blue chip companies, including Dangote Cement Plc, Nestle Nigeria Plc, Guaranty Trust Bank Plc, Zenith Bank Plc and Presco Plc.
For instance, the price of Dangote Cement appreciated by 37.9 per cent or N66.00 to close last week at N240, while Nestle Nigeria price has added 82 per cent or N665 to close at N1,475.00 per share.
Prices of the likes of Guaranty Trust Bank and Zenith Bank have gained 63 per cent or 72.9 per cent to close at N40.50 and N25.50 respectively.
A total of four, out of eight stocks on NSE ASeM Index, remained flat in 2017 as most companies struggled to grow earnings and expand businesses. The four companies whose prices remained unchanged are Afrik Pharmaceuticals Plc, Anino International Plc, Capital Oil Plc and Juli Plc.
The NSE Insurance Index might have gained 9.99 per cent this year but the growth has been driven by majorly two insurance companies out of the 20 listed insurance companies on the Exchange.
Two stocks that have been driven by the NSE Insurance Index are AxaMansard Insurance Plc and N.E.M Insurance Co. (Nig) Plc.
Over 18 Insurance stocks were dumped by investors, as their prices remained flat (N0.50) for the second consecutive year. Prices of companies like Cornerstone Insurance Plc, Equity Assurance Plc, Great Nigeria Insurance Plc, Goldlink Insurance Plc, Guinea Insurance Plc, Consolidated Hallmark Insurance Plc, Lasaco Assurance Plc, Mutual Benefit Assurance Plc, Niger Insurance Co. Plc., Prestige Assurance Plc, and Regency Alliance Insurance Company Plc remained flat.
Others are Royal Exchange Assurance Plc, Sovereign Trust Insurance Plc, Standard Trust Assurance Plc, Standard Alliance Insurance Plc, Unic Insurance Plc, Unity Kapital Assurance Plc and Universal Insurance Company Plc. They closed for the second consecutive year at N0.50 per share.
Weak earnings stocks thus witnessed profit-taking this year as investors continued to trade with caution not to lose their investment.
The Managing Director of APT Securities Limited, Mr. Garba Kurfi explained to LEADERSHIP that investors in the capital market are wiser with their investment, noting that investors are interested in performance of listed stocks.
He said, “The present growth in the capital market is driven by foreign investors that do not trade in penny stocks. Foreign investors’ trade stocks with impressive fundamentals but if a stock proves to have fundamental, they trade those stocks.
“Take for instance, C & I Leasing was trading as low as N0.50 but today, C & I has risen to N1.32. The company has delivered good turnover and good performance. Investors in the capital market are wiser now and it takes only one performance to grow a particular stock

B

Too bad

I rather go into website packing or bitcoin than going into NSE.

Plenty ways to make money online.

NSE is not one of them.

Except you are a crazy expert.

He said, “The present growth in the capital market is driven by foreign investors that do not trade in penny stocks. Foreign investors’ trade stocks with impressive fundamentals but if a stock proves to have fundamental, they trade those stocks."

Stocks are dropping?

Thought twas only fuel availability.

This country is giving up on itself.

I always tell people shares in nigeria are scams. My stint as an auditor years back was revealing . All they know is take loans, divert it or mismanage it and let shareholders bear the brunt when d burble burst.

The investors are wise. Nobody wants to loose money because of this clueless government.

For your mind you don win jackpot

Ikechuob:

Imagine people can't still manage their personal company very well.

BMC WHAT DID YOU GUYS HAVE TO SAY?

That's Nigeria for you, yet you see the CEO's of these companies living large after scamming investors.

Stock exchange market still remains one if the major intermediaries of long term funds...However more developments are needed in the Nigerian Stock Exchange Market to enhance inclusive growth in 2018, nice improvement though

#sighs

The height of ineptedness by this administration is a bit of a cliché.

Talking of corporate governance, it is easy.to make laws in Nigeria but compliance and enforcement is the issue.


In all NSE need to be more proactive in purging out bad companies, it's not enough to be listed but to also maintain the integrity of the exchange.

Fuel...300/letre....... Recharge card...+10/20......investors running....fulani idiots killing uppandan....president giving emotional speeches to attract pity......rochas statueing all his ancestors......atitu atikulating......pastors scaming....omo na to run commot fr dis kwantry na em remain.

could be an aftermath of our jerusalem vote

Buhari is not performing.
All promises cancelled by APC.
APC government is malfunctioning.
No wonder the investors are fleeing.

People still buy NSE stock?

yeyerolling:
I always tell people shares in nigeria are scams. My stint as an auditor years back was revealing . All they know is take loans, divert it or mismanage it and let shareholders bear the brunt when d burble burst.

that was the mistake some of us made some years ago,2m was gone with oceanic bank even zenith bank is silent on my dividends.......

yeyerolling:
I always tell people shares in nigeria are scams. My stint as an auditor years back was revealing . All they know is take loans, divert it or mismanage it and let shareholders bear the brunt when d burble burst.

According to some shallow nairalanders, it is about packaging in order to make people comfortable enough to trust you with their money so you can scam them.

jaychubi:
Well it's called packaging simple, not everyone will come to your house but everyone will see u with ur car

Believe you me u need a good car to succeed in some profession eg contractors as a contractor or even lawyer d kind of car u drive makes ur clients trust u more with big deals it works all d time jst make sure u appear rich even if u r poor.

U must package ur life to succeed in life where u live, the car u drive, the clothes u wear, ur spoken n written English, d caliber of frnds u roll with, d joints u hang out all na packaging.

U travelled to Abuja from PH via bus a day earlier and a client is waiting for u at transcorp hotel n u receive his call in ur hotel room n u tell him hw u will be in Abuja in 45min using ur private jet lol na packaging, once he hears private jet he can trust u with 10 billion contract na packaging.

Rich ppl only trust rich ppl, to roll with big dogs in town u must package ur life

bigeliot:
Fuel...300/letre....... Recharge card...+10/20......investors running....fulani idiots killing uppandan....president giving emotional speeches to attract pity......rochas statueing all his ancestors......atitu atikulating......pastors scaming....omo na to run commot fr dis kwantry na em remain.

at the rate things are going, Nigerians would soon flood countries like Benin, Togo, Ghana, Botswana, Angola, Uganda, South Africa etc in their millions as economic refugees.

I thought its Oando crisis that is causing the ''dumping''

Let me say this, before some people misrepresent what they've read.

Corporate Governance has to do with internal Management of these publicly quoted companies and not Federal Government.

I can see some silly comments attributing what was posted to buhari

That's what you get when you have an inspiring leadership. The Sai Baba adherents thinks that only fuel scarcity is the only challenge facing Nigeria, APC is more clueless than the former administration

seguno2:
Buhari is not performing.
All promises cancelled by APC.
APC government is malfunctioning.
No wonder the investors are fleeing.

Ignorance is a disease that has eaten dip into people's brains.
Did you comprehend what you read at all?

How's internal under performance and poor Management concern APC?

If Mike Adenuga decided to appoint his daughter to head Glo, cos he wants to run a family business and this daughter who's inexperienced decides to perform badly, how's that Buhari's fault?

Many of you read and can't even differentiate your right from left.

omowolewa:
Talking of corporate governance, it is easy.to make laws in Nigeria but compliance and enforcement is the issue.


In all NSE need to be more proactive in purging out bad companies, it's not enough to be listed but to also maintain the integrity of the exchange.

Yes. You're right.

When Jim ovia was leaving, he handed over to Emefiele. After Emefiele too left, they handed over to another my person.

That's what's killing the companies

dontbothermuch:
Too bad

I rather go into website packing or bitcoin than going into NSE.

Plenty ways to make money online.

NSE is not one of them.

Except you are a crazy expert.

You get brain

Coin market far better

@alphonsojaybaz, Good write-up. Kindly join us @ https://www.nairaland.com/1131485/nigerian-stock-exchange-market-pick/2712