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Profit taking: NSE records first loss in 2020

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Profit taking: NSE records first loss in 2020

The Nigerian Stock Exchange (NSE) posted first loss in 2020, dropping by 1.18 per cent after 11 days of consecutive uptrend.


The Nigeria News Agency reports that the All-Share Index (ASI) shed 350.43 points or 1.18 per cent to close at 29, 283.15 against 29,633.58 achieved on Monday.

In the same vein, the market capitalisation dipped N181 billion to close at N15.106 trillion compared with N15.287 trillion in the preceding trading session.

The downturn was impacted by the loses recorded in medium and large capitalised stocks, among which are, Nigerian Breweries, MTN Nigeria, Dangote Cement, United Bank for Africa and Zenith Bank.

Analysts at APT Securities and Funds Ltd., said, “We expect the uptrend to continue with correction days in between propelled by profit takers.”

While analysts at Afrinvest Ltd., also said, “We anticipate a mixed performance in the interim due to profit taking.”

Market breadth closed negative with 13 gainers and 23 laggards.

Tourist Company of Nigeria led the laggards’ table in percentage terms, dropping by 10 per cent to close at N3.15 per share.

NEM Insurance trailed with a loss of 9.69 per cent to close at N2.05, while NPF Micro Finance Bank dropped 9.56 per cent to close at N1.23 per share.

Consolidated Hallmark Insurance lost 9.52 per cent to close at 38k, while Nigerian Breweries shed 8.83 per cent to close at N51.10 per share.

Conversely, Beta Glass led the gainers’ table in percentage terms, growing by 9.67 per cent to close at N59 per share.

C & I Leasing came second with a gain of 8.89 per cent to close at N7.35, while Ekocorp rose by 7.22 per cent to close at N5.20, per share.

Forte Oil improved by 5.62 per cent to close at N17.85, while Cadbury Nigeria rose by 5.26 per cent to close at N10 per share.

The total volume of shares traded increased by 91.47 per cent with an exchange of 666.78 million shares valued N6.52 billion, exchanged in 5,711 deals in spite of the drop in market indices.

This was against a total of 348.24 million shares worth N8.55 billion transacted in 5,377 deals on Monday.

Transactions in the shares of Union Diagnostic & Clinical Services topped the activity chart with 340.21 million shares valued at N71.44 million.

Zenith Bank accounted for 69.72 million shares worth N1.51 billion, while UBA sold 38.79 million shares valued at N329.15 million.

Access Bank accounted for 37.33 million shares worth N393.94 million, while FBN Holdings traded 21.97 million shares valued at N157.61 million.

Edited by: Olawunmi Ashafa/Olagoke Olatoye

Chinyere Nwokeoma: is a graduate and a professionally trained journalist, with experience in national news reporting/editing and verification at the News Agency of Nigeria. NNN is a Nigerian online news portal that publishes breaking news in Nigeria, and across the world. Our journalists are honest, fair, accurate, thorough and courageous in gathering, reporting and interpreting news in the best interest of the public, because truth is the cornerstone of journalism and they strive diligently to ascertain the truth in every news report. Contact: editor[at]nnn.com.ng

Economy

Custodian Investment moves to purchase 51% equity stake in UPDC

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The Custodian Investment Plc has signed a binding agreement with UAC of Nigeria Plc to purchase 51 per cent equity interest in UACN Property Development Company (UPDC) Plc.


Mr Wole Oshin, Group Managing Director, Custodian Investment, made this known in a statement posted on the Nigerian Stock Exchange (NSE) on Monday in Lagos.

Oshin said the company had signed a binding agreement with UAC for Custodian to purchase a 51-per cent equity interest in UPDC from UAC.

He said the agreement marked the beginning of a partnership between Custodian and UAC that would achieve both companies’ respective objectives in the real estate industry.

“It also marks a significant milestone aligned with UAC’s strategy to focus on its core businesses,” he stated.

Oshin said a total of 9,465,584,668 UPDC Ordinary shares (Sale Shares) held by UAC, representing 51 per cent of UPDC’s issued share capital, would be sold to Custodian.

He said the sale shares would be in two tranches initial sale of 946,558,467 shares, representing 5.10 per cent of the issued share capital of UPDC, on execution of binding transaction agreements.

Oshin added that there would be subsequent sale of 8,519,026,201 shares, representing 45.90 per cent of the issued share capital of UPDC upon receipt of requisite approvals.

According to him, completion of the sale is subject to regulatory approvals from the NSE and the Federal Competition and Consumer Protection Commission.

Commenting on the transaction, Oshin said the partnership would provide multiple levers for value creation.

“We, at Custodian, are excited about the possibilities arising from this partnership with UAC, which provides multiple levers for value creation.

“The rationale for the transaction is that Custodian and UAC share the view that their ambitions for capturing opportunity in the real estate industry will be better achieved working in partnership,” he said.

Oshin, however, advised the shareholders to exercise caution when dealing in the securities of Custodian, UAC, and UPDC until requisite approvals are obtained.

Also, Mr Folasope Aiyesimoju, the Group Managing Director of UAC, said the transaction was a significant step in achieving its objectives for UPDC.

“The transaction is a significant step in achieving our objectives for UPDC.

“In 2018, the Board and Management of UAC embarked on a strategic review to evaluate the performance of the company and its subsidiaries.

“The objective is to achieve sustainable positive financial performance from our existing operations and enable management to focus on businesses that align with our strategy.

“In reviewing UPDC, the board weighed the long-term opportunities in the Nigerian real estate sector against the fundamental differences between the cash flow profile and capital needs of UPDC and those of the other entities in UAC’s portfolio.

“Following its review, the board concluded that it would be in the best interest of UAC to exit its interest in the real estate sector.

” It allows UPDC to operate as a stand alone legal entity, free to source appropriately structured capital and to unlock value for its shareholders,” Aiyesimoju said.

Edited By: Olagoke Olatoye (NAN)

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Economy

Flour Mills announces AGM attendance by proxy Sept. 10

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Flour Mills of Nigeria Plc has announced that its 60th Annual General Meeting (AGM) scheduled for Sept. 10, would be by proxy and live streaming.


Mr Joseph Umolu, the Company Secretary, disclosed in a notice posted on the website of the Nigerian Stock Exchange (NSE) on Monday in Lagos.

Umolu said: “In view of the COVID-19 pandemic, the restrictions on mass gathering and in line with the guidelines issued by the Corporate Affairs Commission on holding AGMs using proxies, attendance at the AGM shall be by proxy.

“Consequently, a member entitled to attend and vote at the AGM is advised to select from the listed proposed proxies to attend in his stead,” he said.

The listed proxies are, Mr John Coumantaris; Dr Emmanuel Ukpabi; Mr Paul Gbedebo; Dr Salamatu Suleiman; Sir Sunny Nwosu; Mr Adesina Oladepo; Mr Boniface Okezie; Mrs Esther Augustine; Mr Nonah Awoh and Chief Timothy Adesiyan.

Umolu informed shareholders that the proxy form was attached to the annual report of the company and also available on url:shorturl.at/mp349.

He disclosed that dividends, if approved, would be paid on Sept. 14 to shareholders.

The secretary also informed shareholders that some dividend warrants had been returned to the registrar as unclaimed.

He urged shareholders to open bank accounts, stockbroking accounts and CSCS accounts for the purpose of e-dividend and bonus.

Edited By: Tayo Ikujuni/Oluwole Sogunle (NAN)

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Economy

Nigerian Breweries earns N152bn revenue in 6 months

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Nigerian Breweries Plc  says it earned a revenue of N152 billion for the half-year (H1) ended June 30, 2020.


Mrs Sade Morgan, Corporate Affairs Director said this in a financial report on the company’s unaudited and provisional results sent to the Nigerian Stock Exchange (NSE) on Monday in Lagos.

A breakdown of the results showed that the revenue of N152 billion was a drop, compared to the N170 billion recorded in the corresponding period of 2019.

According to the report, the Company also made a N5.70 billion Profit after tax in the period under review.

“The half-year results for the 2020 financial year show a strong balance sheet for the Company despite several factors that negatively impacted on the Company’s operations, such as an increase in Excise Duty, a rise in inflation, an increase in VAT from 5 to 7.5 per cent, as well as the impact of the coronavirus (Covid-19) pandemic on businesses worldwide.

“Despite these challenges, the Company’s financial position shows stability and sustained profitability.

“To support the fight against the Covid-19 pandemic, the Company, during the period under review, made various donations in cash and kind valued at about N531 million out of a phased commitment of N600 million to the Federal and State Governments’ Covid-19 Relief Funds,” the statement said.

The Board of Directors commended the company’s management for its efforts to mitigate the impact of the pandemic on the business.

It also lauded the prudent management of its resources as reflected in a seven per cent reduction in expenses incurred on marketing, distribution, and administration.

“The Board expressed confidence that the Company is well-positioned to continue to deliver return on investment to Shareholders.

According to the Board, the Company’s priority during this period “remains ensuring the health, safety and welfare of employees, customers and partners”.

Edited By: Edith Bolokor/Oluwole Sogunle (NAN)

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Economy

NSE resumes trading for August with 0.30% growth

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The nation’s bourse commenced trading for August after Sallah break with a growth of 0.30 per cent on renewed bargain hunting.


Speficially, the All Share Index (ASI) rose by 72.39 points, to close at 24,766.12 against 24,693.73 achieved on Wednesday.

Also, the market capitalisation inched higher by N37 billion to close at N12.919 trillion compared with N12.881 trillion on Wednesday.

The uptrend was impacted by gains recorded in large and medium capitalised stocks, among which were Flour Mills, BUA Cement, GlaxoSmithkline, Guaranty Trust Bank and Neimeth International Pharmaceuticals.

Analysts at United Capital Plc anticipated that outcome of first half year earnings would continue to spur market reactions this week.

Also, analysts at Afrinvest Ltd believed the performance of the market this week would be majorly dictated by the trend in earnings releases.

Market breadth closed positive, with 19 gainers in contrast with 16 losers.

Neimeth International Pharmaceuticals dominated the gainers’ chart in percentage terms, gaining 10 per cent, to close at N1.65 per share.

Flour Mills followed with 9.97 per cent to close at N18.75, while University Press rose by 9.90 per cent to close at N1.11 per share.

GlaxoSmithkline improved by 8.16 per cent to close at N5.30, while Honeywell appreciated by five per cent to close at N1.05 per share.

On the other hand, UACN led the losers’ chart in percentage terms, losing 10 per cent to close at N6.30 per share.

AIICO Insurance came second with a loss of 9.57 per cent to close at 85k, while Sunu Assurances dipped 9.09 per cent to close at 20k per share.

Mutual Benefits Assurance lost 8.70 per cent to close at 21k, while Custodian Investment shed 7.27 per cent to close at N5.10 per share.

Also, the total volume of shares traded rose by 83.56 per cent as investors bought and sold 186.48 million shares worth N1.31 billion achieved in 4,718 deals.

This was in contrast with a turnover of 101.59 million shares valued at N973.64 million transacted in 3,685 deals on Wednesday.

Transcorp was the toast of investors, accounting for 23.39 million shares worth N14.35 million.

Custodian Investment trailed with 19.14 million shares valued at N97.72 million, while Guaranty Trust Bank traded 18.17 million shares worth N411.61 million.

FBN Holdings sold 13.54 million shares valued at N69.70 million, while United Bank for Africa sold 9.72 million shares worth N60.52 million.

Edited By: Edith Bolokor/Oluwole Sogunle (NAN)

 

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