E-Financial
FBN Holdings Urges Investors to Patronise Stocks with Strong Fundamentals
FBN Holdings Plc has called on retail investors to invest in companies with strong fundamentals, sustainable growth and profitability to ensure enhanced returns on investment.
Mr. Tolulope Oluwole, Head, Investor Relations at FBN Holdings, gave the advice at the Capital Market Correspondents Association of Nigeria (CAMCAN) virtual forum on in Lagos.
According to him, the COVID-19 pandemic and downturn in the stock market provide an opportunity for investors, therefore, urging them to go beyond speculation and invest in stocks with strong fundamentals, sound management and potentials for growth.
He said understanding to invest in good companies such as FBN Holdings, for instance, was key at this time for investors not to have their fingers burnt again.
“At this time of economic challenge, we have seen an increase in the domestic retail and institutional investors participation in the market. There was an opportunity in any market downturn and investors should key into the present opportunities in the equities market, “ he stated.
On the exit of foreign investors, Oluwole said they would soon find their way back to the market in a matter of time with strong business fundamentals.
In his presentation titled, ‘Financial media and engagement with retail investors’, he said there were a number of different investors with varied levels of interest in a company’s investment story.
Oluwole noted that while the majority of the audience has broadly similar requirements, there are subtle differences and it is critically important to ensure consistency in the messages to avoid misinterpretation.
He described retail investors as non-professional market participants who generally invest smaller amounts than larger institutional investors.
He also noted that individual investors were thought to be less knowledgeable, less disciplined, less skillful, and prone to behavioral and emotional decisions, noting that despite their lack of knowledge, the retail investment space was enormous with individuals.
According to him, knowing and understanding potential investors is very crucial when presenting the equity story and consider having a fair balance of investor type, adding that investor relations (IR) plays a pivotal role in providing detail about the health of an organisation to a wide range of interested parties.
“The increase in stakeholder interest from optimal IR will ultimately result in an increase in the market value of the organisation, as long as the company delivers on its operational performance, noting the environment.
“Company’s day-to-day interface include institutional and retail shareholders, bondholders, credit and equity analysts, the exchange, and the financial media. The principal role is to manage interest from these audiences and ensure they are fully informed about the performance of the business as well as identifying potential issues to address proactively,” he said.
Titan Trust Bank has selected Oracle FSS for its core and digital banking technology, it is understood.
The start-up bank recently obtained its license by the Central Bank of Nigeria (CBN).
It’s understood that Temenos and Infosys also competed for the deal.
The shortlist came down to the two most widely installed international core systems in Nigeria, Infosys’ Finacle and Oracle FSS’s Flexcube.
The Nigerian banking sector has seen a great deal of upheaval over the years, with many mergers, start-ups and closures. Flexcube is a well respected name since the late 1990s (the pioneer was Access Bank, now one of the country’s top five banks) and has been a commonly selected platform since then.
The new bank is believed to be one of five to have gained regulatory approval of late (Globus Bank is another).
Local media sources say the new licences stem from the Central Bank’s desire to attract new investments into the sector and better serve the country’s 50 million+ unbanked and under-banked citizens.
Titan Bank is said to be headed by a former executive director of Heritage Bank (which is a Finacle user).
Oracle FSS did not respond to request for comment.
International Monetary Fund (IMF), has appointed Tony Elumelu, Nigerian billionaire and group chairman of Heirs Holdings, owners of United Bank of Africa, to its advisory council on entrepreneurship and growth, convened by Kristalina Georgieva, the fund managing director.
The announcement was disclosed in a statement on Friday.
According to the statement, the IMF advisory council comprises global business leaders, policymakers, and academics dedicated to identifying and addressing regulatory barriers to entrepreneurship.
The IMF said Elumelu will be instrumental in ensuring that Africa’s entrepreneurship is central in policy making.
“Elumelu, Africa’s leading advocate of entrepreneurship and whose Foundation has funded, mentored, and trained over 25,000 African entrepreneurs since 2015, champions entrepreneurship as the engine for the economic transformation of Africa,” the statement reads.
“A self-made entrepreneur, Elumelu’s embracing of entrepreneurship is fundamental to his concept of Africapitalism, his belief that Africa’s private sector can and must play a leading role in the continent’s development, making long-term investments that deliver social and economic value.
“Elumelu will be instrumental in ensuring that Africa’s entrepreneurial potential is central to global economic policy making.”
Speaking at the inaugural meeting of the advisory council on March 26, Georgieva said the appointees would share their experiences on how macroeconomic and financial policies “can provide a supportive environment for innovation, entrepreneurship, and productivity — key ingredients for a thriving private sector and strong economic growth”.
Africa’s Micro, Small, and Medium Enterprises, fintech industry, scaling remittances, and cross-border payments will be the driving forces behind the continent’s digital ballooning payments system, which is estimated to reach $1.5 trillion by 2030.
This is according to a MasterCard-commissioned study by Genesis Analytics, which states that the digital payments economy is growing faster on the continent.
This comes as the World Bank says Sub-Saharan Africa has shown significant growth in financial inclusion over the past decade, much of it driven by mobile money account adoption.
Dimitrios Dosis, president, Eastern Europe, Middle East and Africa at MasterCard, comments: “Africa is filled with immense possibilities, and its people have the potential to shape the global economy in the decades ahead.
“MasterCard remains deeply committed to driving digital transformation across the continent, working closely with entrepreneurs, merchants, banks, start-ups, telcos, and governments. By increasing our investments, expanding innovation, and fostering inclusion, we are helping build a more connected and accessible digital future.”
The payment technology company went on to say as a longstanding technology partner to Africa, its continues to strengthen its commitment to the continent’s digital growth through strategic investments, public-private partnerships, and innovation initiatives that drive financial health and economic growth.
In addition, it says trends in Africa signal a strong shift towards digital transactions, with businesses and consumers increasingly embracing contactless solutions, further accelerating economic participation and financial accessibility across the region.
“For over five decades, MasterCard has worked alongside African governments, businesses, and communities to advance financial inclusion and economic development.
“With Africa projected to host nine of the world’s 20 fastest-growing economies, we are focused on leveraging our expertise and a technology to support the continent’s continued digital transformation.
“Our investments today will help build a more resilient economy for the future,” says Mark Elliott, division president, Africa, MasterCard
By fostering collaboration with key stakeholders, MasterCard says it aims to enhance digital connectivity, expand economic opportunities, and enable millions of people and businesses to thrive in the digital economy.
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