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Stock Exchange loophole leaves Investors out of earnings call and “fact behind the figures” notices

Retail investors who make the bulk of the investing community are often left out of these notices and neither are the presentations made available to them on the Exchange.



Retail investors in search of valuable information such as “Fact behind the figures” or excerpts of “investor calls” held between listed companies and analysts are not expected to find such information on the Nigerian Stock Exchange.

This is because there are no rules that mandate listed companies to publish such information on the stock exchange or even send notices of when such calls will be held. Instead, the companies send facts behind the figure’s information or notices on earnings calls to Pension Funds, Institutional Investors, and Fund Managers, giving them access to critical information required to make better investment decisions.

Retail investors who make the bulk of the investing community are often left out of these notices and neither are the presentations made available to them on the Exchange.

Findings by Nairametrics Analysts reveal several companies held their earnings calls since year-end results started flooding in March. However, none of this important information was published on the website of the Nigerian Stock Exchange or made available, and neither were notices published on the Investor Relations Page of the companies.

Nairametrics reached out to the Exchange to understand why information asymmetry is still a problem especially in a market where information is lacking. The Head, Listings Regulation, NGX Regulation (NGX RegCo), Godstime Iwenekhai, explained to Nairametrics that Rules of Nigerian Exchange does not require companies to publish earnings calls or investor presentations on their websites.

“The Rules of Nigerian Exchange (NGX) Limited do not require Listed Companies to publish dates of earnings calls and investor presentations. While it is not mandatory for Listed Companies to publish dates of earnings calls or investor presentations, we encourage frequent engagement with stakeholders. Where a Listed Company decides to hold such calls, they are required to comply with Nigerian Exchange Limited’s rules and ensure that they do not disclose price-sensitive information which has not earlier been published.”

The Investor Relations departments of listed companies are often charged with the responsibility of publishing critical information explaining their performance. This information should be published as a press release on the Investor Relations pages of the companies, the website of the Exchange, and via media outlets, for all investors to access. While some websites have a robust Investor Relations Page, most do not.

During earnings calls or investor presentations, the management of the companies often provides useful insights into their performance during the year. For example, the reason behind the rise or fall of revenues or profits; and also provide insights or outlook about the business performance. Whilst the information provided are not usually “price-sensitive” they provide analysts with enough detail to better value the stock.

Shutting our retail investors from this information gives undue advantage to Custom Street (stockbrokers and fund managers who trade on the Exchange) when it comes to investing and stock picking. For example, by reading excerpts of an investor presentation, analysts and fund managers can discern whether a company is doing badly offloading the stock to unbeknown retail investors who are not privy to the information.

Godstime, however, admitted there might be “gaps” as the Exchange considers who to plug the information asymmetry.

“However, we have noted there may be gaps that arise as a result of non-publication of the materials used during investors’ call, and we will carefully consider how best to address that situation, taking into account local nuances and best practice.”

For now, the only way to obtain this information is to visit the individual website of all the companies or visit sites such as or Proshare to find them.

Omokolade Ajayi is a graduate of Economics, and a certificate holder of the CFA Institute’s Investment Foundation Program. He is a business analyst, and equity market researcher, with wealth of experience as a retail investor.

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    Market Views

    US Stock markets unruffled about disappointing job report

    Wall Street was unshaken as it posted record gains at the end of the week despite a disappointing April job report.



    Apple, Microsoft gain over 1%, propels Nasdaq up

    The April unemployment survey in the United States was a puzzler by most accounts. The 266,000 additional payrolls were the largest shortfall in economists’ estimates for nonfarm payrolls since the 1990s when many expected 1 million workers to be added to payrolls last month. However, Wall Street was unshaken as it posted record gains at the end of the week.

    While analysts warn that the figure is poor, considering how many people have fallen out of the workforce in the past year, the unemployment rate in April remained remarkably stable at 6.1 percent and the market maintained its bullish pace. The Dow Jones Industrial Average (+0.66%) and the S&P 500 index (+0.74%) posted record closes on Friday, as the weak jobs report affirmed views that the Federal Reserve will keep financial conditions easy for longer.

    Despite Friday’s gains, large-cap technology stocks are also lagging behind the overall market. For the year, Apple Inc (AAPL.O) is down almost 2%, Inc (AMZN.O) is up less than 2%, and Netflix Inc (NFLX.O) is down 6.5 percent. Overall, the technology market is up 6.8% year to date, less than half of the S&P 500’s 12.6 percent increase (.SPX).

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    Furthermore, value stocks in cyclical sectors like financials, oil, and consumer sectors are soaring. The Russell 1000 Value index (.RLV) has gained 18 percent this year, including 0.7 percent on Friday, while the Russell 1000 Growth index (.RLG) has gained 6.3 percent this year, including 0.6 percent on Friday.

    Although some technology stocks rose on Friday after a lacklustre U.S. unemployment report, some portfolio managers believe that recent blowout profits from many major technology firms are insufficient to justify continuing to make large bets on the industry.

    The 266,000 new jobs added in April was a significant decrease from the 770,000 new jobs added in March. The rise in April was fueled by employment growth in the leisure and hospitality sector, which gained 330,000 jobs, with more than half of those in restaurants and bars. Overall, the industry employs 2.8 million fewer people than it did prior to the pandemic.

    Wide losses in temporary support providers and couriers and messaging services, as well as smaller drops in manufacturing and retail, reversed those gains. Construction employment remained largely stable.

    Because of the high liquidity created by the stimulus package and the FED’s decision to keep rates unchanged, the stock market appears to be immune for the time being. The biggest issue on most people’s mind is how long this positive mood will last in the economy.

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    Market Views

    Top 10 Stockbroking firms in Nigeria for April 2021

    The top ten Stockbrokers traded shares worth N111.8 billion in April 2021, accounting for 69.9% of the total amount of shares traded.



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    The Nigerian Stock market ended the month of March 2021 bullish as the All-Share Index grew by 2.02% from 39,045.13 points recorded as of March 31st, 2021 to close at 39,834.42 points at the end of April 2021.

    Meanwhile, the top-performing stockbroking firms in the Nigerian Exchange Group (NGX) traded about 4.89 billion units of shares with a value of N111.8 billion, accounting for 69.9% of the total value of shares traded in the month.

    This is according to the Broker performance Report, released by the Nigerian Stock Exchange for the month of April 2021.

    According to the report, Morgan Capital Securities led the list of stockbroking firms by volume of shares while Investment One Stockbrokers traded the highest in monetary terms for the period under review.

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    Stockbrokers by value

    The top ten Stockbrokers were responsible for 69.9% of the total amount of shares traded in April 2021, trading a total of N111.8 billion worth of shares.

    • Investment One Stockbrokers toppled Stanbic IBTC to top the list with trades valued at N60.91 billion in April 2021, representing 38.08% of the total value of shares traded during this period.
    • Rencap Securities stood at second on the list with trades in stocks valued at N15.59 billion, accounting for 9.75% of the total value of shares traded in the month of April.
    • Cardinalstone Securities followed with its total trades valued at N8.45 billion in the period under review. This represents 5.28% of the total value recorded in the Stock Exchange market.
    • EFG Hermes also traded in stocks worth N7.05 billion, to stand fourth on the list as it accounted for 4.41% of the recorded trades in monetary value.
    • Stanbic IBTC Stockbrokers traded a sum of N4.1 billion worth of stocks, which accounted for 2.57% of the total value for the period.
    • Others include Meristem Stockbrokers (N3.87 billion), Chapel Hill Denham (N3.66 billion), Stonex Financial (N3.36 billion), CSL Stockbrokers (N2.53 billion), and Cordros Securities (N2.27 billion).

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    Stockbrokers by volume

    The top ten stockbroking firms for the period under review traded in 4.89 billion units of shares, accounting for 45.01% of the total traded stocks.

    • Morgan Capital Securities tops the list of stockbroking firms in terms of volume of shares traded as it recorded trades in 859.82 million units of shares, representing 7.91% of the total volume traded in the bourse for the period.
    • Cardinal Securities followed, having traded in 835.49 million shares, accounting for 7.69% of the total volume of shares traded in April 2021.
    • Investment One Stockbrokers traded in 566.53 million units of shares in the month under review. This represents 5.21% of the total recorded.
    • Meristem Stockbrokers Limited stands fourth on the list with trades in 564.54 million units of shares in April 2021, accounting for 5.19% of the total volume recorded.
    • FBN Quest Securities traded in a total of 449.25 million units of shares accounting for 4.13% of the total volume recorded in the period under review.
    • Others on the list include EFG Hermes (422.23 million), Rencap Securities (406.6 million), Falcon Securities (312.13 million), Stanbic IBTC (248.43 million), and APT Securities (226.28 million).

    What you should know

    • The NSE ASI grew by 2.02% in the month of April 2021, bringing the year-to-date performance to a decline of 1.08%.
    • The NSE Banking Index however dipped by 4.76% in the month of April to close at 352.07 points, while the year-to-date growth stood at -10.42%
    • NSE Industrial Goods index grew by 3.06% in the review period.

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