CSCS shares are in investors’ good books

by Iheanyi Nwachukwu

March 1, 2018 | 12:37 am
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The shares of Central Securities Clearing System Plc (CSCS) have soared this year with a record gain of about 48percent.

CSCS Plc shares are among the 36 admitted securities traded on the NASD OTC platform by 233 registered brokers.

Increased demand for the shares of CSCS Plc this year pushed the price to record high of N10.50 as at trading week to February 23, from year open level of N7.50.

Total market capitalisation of CSCS grew from its year-open level of N53.7 billion to N79 billion as at the review period.

Shareholding structure of CSCS Plc shows 65.04percent of the 3.252billion total holdings are in 6 shareholders while the remaining 34.96percent or 1.748billion units are in the hands of ‘others’ (which include corporates and individuals).

The shareholders that have above 5 percent equity in CSCS Plc are: The Nigerian Stock Exchange (1.362billion units or 27.24percent); Artemis Limited {Verod Capital} (621.371million units or 12.34percent); Access Bank Plc (375million units or 7.50percent); Ecobank Plc (375million or 7.50percent); United Bank for Africa Plc (268.5million units or 5.37percent); and Ess-Ay Investments Limited (250million units of 5percent).

“The sharp year-to-date (YtD) rise reflects investors’ strong earnings growth expectations to further improve the fundamentals of the Company,” according to NASD Plc research analysts.

In its earnings forecast, CSCS Plc had targeted Profit After Tax (PAT) of N4.666billion at the end of 2017 and N929.755million in fourth-quarter (Q4). It had also forecasted total fee income of N859.619million in Q4 and N3.780billion at the end of the full year 2017.

CSCS facilitates the delivery (transfer of securities from seller to buyer) and settlement (payment of bought shares) of securities transacted on the approved Nigerian Exchanges.

It enables securities to be processed in an electronic book-entry form thereby substantially reducing the period it takes a transaction to commence and end.

From N13.052trillion as at December 31, 2017, the assets under CSCS Plc custody rose to N14.737trillion as at January 31, 2018.

Haruna Jalo-Waziri-led management of CSCS Plc had earlier this year unveiled its three-year strategy plan (2018-2020). This new growth plan is predicated on five (5) key pillars which include: focus on technology, customer centricity, process optimisation, forging strategic alliances to expand the capital market ecosystem and revenue growth.

Jalo-Waziri disclosed to stakeholders in Lagos at the unveiling of CSCS new three-year strategy  that, “Based on our culture of continuous improvement, the technology pillar will focus on necessary technological improvements to ensure that the company delivers on its corporate goals and is proactive in embracing new and disruptive technologies, optimizing the use of innovative technology, instituting Straight Through Processes (STP) across all touch points and establishing e-learning platforms. We will leverage innovative technology in skilling and reskilling human resources for optimum service delivery.”

…NASD continues to play role in growth of Nigerian enterprises

NASD Plc is the promoter of a Trading Network that eases secondary market trading of all securities of unquoted public companies. At the NASD OTC Securities Exchange, there are also 127 Participating Institutions (PI).

The platform has continued to play its role in the growth of Nigerian enterprises by providing a transparent platform where investors can unlock hidden value in their investments.

The NASD OTC market had extended its week-on-week (wow) momentum in the review period, as the NASD Unlisted Securities Index (USI) advanced by 1.34percent to close at 664.76 points (as against 655.96 points last Friday).

Consequently, total market capitalisation increased by 1.34percent last week to close higher at N449.86 billion compared to N443.90 billion the preceding Friday.

Iheanyi Nwachukwu

by Iheanyi Nwachukwu

March 1, 2018 | 12:37 am
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