Contradictions as NSE denies Knowledge of Afroil and Capital Oil Suspension

The Nigerian Stock Exchange has said it is not aware of the indefinite suspension placed on trading in the shares of Afroil Plc and Capital Oil Plc by the Securities and Exchange Commission.

The Principal Manager, Corporate Affairs, NSE, Mr. Shola Oni, said on Thursday that the NSE was yet to receive any information from SEC on the suspension of the shares of the two oil companies.

Oni said, “We read the story on the pages of the newspapers just like every other person and I think that will not be the best for the system. The relationship between the stock exchange and SEC has always been cordial, but there should always be due process.”

SEC had, on Wednesday, announced an indefinite suspension of trading in the shares of Afroil and Capital Oil on the NSE. The commission said the decision was a fallout of an investigation into the activities of six companies, announced on February 15, 2008. According to the commission, the two companies were involved in insider dealings.

The commission had declared that the basis for the continued trading and rise in the prices of the shares on the exchange, no longer existed, adding that the decision was to protect stock market investors.

Prior to the commencement of the investigation, the Director-General, NSE, Prof. Ndi Okereke-Onyiuke, had flayed SEC for not informing the Exchange about the activity.

Our correspondent gathered that, despite the suspension, there was still trading in the shares of the companies.

Some stock brokers said that the shares of the companies were, largely, in offer on Thursday as investors were apprehensive over the announcement.

The stock brokers, who spoke on the condition of anonymity, berated SEC for not informing the NSE before carrying out any activity on the Exchange.
According to them, the perceived unhealthy relationship between both organisations can create tension in the capital market.

“We all agree that SEC is the regulator of the capital market, but there should be due process in everything. The commission has to understand that the NSE, to an extent, is also a regulatory body.

Without the stock exchange, I don’t think there will be anything for SEC to regulate,” a stockbroker said.

At the end of trading on Thursday, Afroil, which sold at N24.13, traded 4,424,117million shares, valued at N106.754m in 342 deals.

For capital oil, 3.414 million shares worth N55.006m were traded in 144 transactions. It sold at N16.11

Culled from The Punch

SEC Suspends Afroil and Capital Oil

The Securities and Exchange Commission (SEC) has suspended Indefinitely trading in shares of Afroil Plc and Capital Oil Plc across the floors of the Nigerian Stock Exchange (NSE).

A release by SEC's Head of Media, Mr. Lanre Oloyi in Lagos, said that the suspension was a fall-out of the investigation conducted by the Commission on the activities of the two companies.

It said that the action was to protect the investing publics and warned stockbrokers to avoid trading in the shares of the companies. SEC questioned what it called "illogical and astronomical rise in the share prices of the companies'' when they were not submitting statutory reports.

The Commission said its investigation revealed that during the period of the price growth, the two companies were basically out of business.

"The basis for continued trading and rise in the prices of their shares on the NSE no longer exists and the investing public must not be deceived,'' SEC said.

The News Agency of Nigeria (NAN) recalls that SEC had, on February 14, 2008, said it was conducting investigation into the activities of five companies, accusing some of them of insider trading and price manipulation.


Courtesy of Proshare

Dangote Sugar declares 50k dividend, 1 for 5 bonus

Leading producer of refined sugar in the country, Dangote Sugar Plc, has declared a turnover of N83.8 billion in its 2008 financial year end result.

In the company’s financial result made available by the Nigerian Stock Exchange on Monday, the company would, however, be giving a bonus issue of one for five to shareholders and a dividend of 50 kobo as its final year and last quarter payment.

The company had made a total of N12 billion payments in its dividend schedule which is on quarterly basis.

The result showed that the company’s turnover dropped from N83.8 billion in 2007 to N80.64 in 2008 while Profit After Tax which closed last year at N16.65 billion increased to N21.47 billion in 2008.

To view complete financial result click here



Courtesy of Nigerian Tribune and Proshare

Getaway Club Verification Scam Alert!!!

Fraudsters never give up. See the latest mail from Getaway Club Admin disclaiming their latest tricks. Please don't for any reason give your personal information out to anybody.

VERIFICATION SCAM ALERT (Urgent Verification Required!)

Dear Members,

We wish to advise that a recent email with subject "Urgent Verification Required!" has not come from GetawayClub Admin.

It is a fake email and should be ignored.

No accounts will be closed due to non-verification. We require photo ID only in the case of members wishing to withdraw funds, however the 3 day deadline written in the aforementioned email is false.

Management
GetawayClub

Latest on Treasureline Interlink

For Treasurelink Investors the end of the long wait might soon be over judging from information gathered from the Chairman/MD of the company, Dr Waliu Oyeniran Oyeleke last week in Lagos to imoisilis.com

The discussion covered several issues centering on the crises, formal registration of the organization with Security and Exchange Commission (SEC) (click on the image above), a peep into the future operation of the company and investors’ security.

More insight was given to the alternative investment plan for its current and new operators as mentioned earlier on this site: http://www.imoisilis.com/2008/01/sec-okays-treasureline-businessday.html

The new investment scheme called UNIT TRUST SCHEME (UTS) requires 50,000 Naira to start with a 28% annual Return on Investment (ROI).

The ROIs which will be paid quarterly i.e. four times in a year will be in the following order:

1st Quarter - 10%
2nd Quarter - 8%
3rd Quarter - 6%
4th Quarter - 4%

However this is likely to increase in subsequent years.

The new scheme will see investor’s slots changing into units in line with the company’s new position.

Current Treasurelink investors with investment less than the required start up capital have an option of either summing up the balance or withdrawing out rightly.

Investors whose current investment is above the start up capital will have their investment transferred into the new set up and issued a UTS Certificate that can be traded incase of a divestment.

The new company which is expected to take off soon have recently recruited a new management team to man its new operations and is also partnering with First Registrars, Revelation partners, Balogun Badejo Company (Chartered Accountants) and Osafemi, Soetan, Adeleke & Co (Auditors) amongst others to move its business to the next level.