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Good Evening. Welcome to this week's edition of Bulls and Bears powered by @Nairametrics
Bulls and Bears is a weekly thread where I look at happenings on the @NSEcontact
Please retweet from the very first thread, so everyone on your timeline can see.
Thread starts here.
Thread starts here.
First a look at how the equities market performed this week.
Trading for the second week in July, was rather lacklustre.
Trading for the second week in July, was rather lacklustre.
The @nsecontact All Share Index declined by 2.32% to close at 29,270.25 basis points.
Year to date, the index is down 6.87%.
Year to date, the index is down 6.87%.
Academy Press was the best performing stock this week, appreciating by 48.15% to close at N0.40.
On the flip side, Smart Products Plc was the worst performing stock, declining by 34.09% to close at N0.29.
On the flip side, Smart Products Plc was the worst performing stock, declining by 34.09% to close at N0.29.
In terms of appointments, this week was also a relatively quiet one.
Standard Alliance Insurance Plc announced the appointment of a new Managing Director, Richard Ododo.
He replaces Bode Akinboye who resigned from his second stint as MD, after a four year term.
He replaces Bode Akinboye who resigned from his second stint as MD, after a four year term.
There was no word on whether Akinboye, who is also a key shareholder, would be staying on the board as a non Executive Director.
The company also announced the appointment of Oduniyi Odusi as Executive Director.
NAHCO Aviance Plc held a Facts Behind the Figures presentation at the@nsenigeria
The company’s Group Managing Director, Mrs Olatokunbo Fagbemi, stated that the firm plans to grow its profit before tax to N2.13 billion in 2019.
As ambitious as this sounds, the company had several one off hits last year. So i dont see the big deal about the target.
As ambitious as this sounds, the company had several one off hits last year. So i dont see the big deal about the target.
The firm also plans to acquire more ground handling equipment this year.
The air handling industry is a duopoly between NAHCO and Skyway Aviation Handling.
I will be waiting for H1 2019 results from both firms.
The air handling industry is a duopoly between NAHCO and Skyway Aviation Handling.
I will be waiting for H1 2019 results from both firms.
MRS Oil Plc’s board approved a slight change in the brand of the company from a predominately white background with burgundy and yellow, to a predominantly grey background with burgundy and yellow.
The change will also apply to the company's brand of lubricants.
The change will also apply to the company's brand of lubricants.
The best form of rebranding however, is from profits to losses.
The much awaited listing of Airtel Africa, which was to take place yesterday was postponed.
While the@nsecontact gave no reason for the delay, it appears that the @secnigeria granted it's approval on Friday.
While the@nsecontact gave no reason for the delay, it appears that the @secnigeria granted it's approval on Friday.
@SECNigeria Barring any other delays, the company should list next week and will add N1.36 trillion to the NSE’s market capitalization.
Market capitalization is the sum of all shares listed on the exchange and their value.
Market capitalization is the sum of all shares listed on the exchange and their value.
@SECNigeria The @nsenigeria placed a full suspension on 11 companies.
A full suspension means that there will be no trading, as well as price movement on the affected stocks.
A full suspension means that there will be no trading, as well as price movement on the affected stocks.
@SECNigeria @nsenigeria The companies suspended include: Conoil Plc, FTN Cocoa Processors Plc Goldlink Insurance Plc Guinea Insurance Plc, Lasaco Assurance Plc, Niger Insurance Plc
@SECNigeria @nsenigeria Others are R.T. Briscoe (Nigeria) Plc, Resort Savings & Loans Plc, Royal Exchange Plc , Standard Alliance Insurance Plc, and Universal Insurance Plc.
@SECNigeria @nsenigeria For anyone who's familiar with this market, you would know that the companies affected are usual suspects.
They also have poor fundamentals, so there isnt much to be missed or expect.
They also have poor fundamentals, so there isnt much to be missed or expect.
@SECNigeria @nsenigeria Insurance firms tend to submit results late on the premise of waiting for their subsidiaries to submit their financial statements.
Conoil Plc released its audited results for the 2018 financial year the next day.
The same thing happened last year. So I'm wondering if it's pure coincidence or laxity on someone's part.
The same thing happened last year. So I'm wondering if it's pure coincidence or laxity on someone's part.
Revenue increased by 5.8% from N115 billion in 2017 to N122 billion in 2018.
Profit before tax rose by 11.4% from N2.3 billion in 2017 to N2.5 billion in 2018.
Profit after tax rose by 13.8% from N1.5 billion in 2017 to N1.7 billion in 2018.
Profit before tax rose by 11.4% from N2.3 billion in 2017 to N2.5 billion in 2018.
Profit after tax rose by 13.8% from N1.5 billion in 2017 to N1.7 billion in 2018.
The company declared a dividend of N2 per share, unchanged from the previous year.
Following the release of the results, the suspension was lifted.
Following the release of the results, the suspension was lifted.
Still on results, International Breweries dropped its full year 2018 and Q1 2019 results within the week.
Both were ugly, but understandably so, since the company is aiming for a bigger slice of the market.
Both were ugly, but understandably so, since the company is aiming for a bigger slice of the market.
For the 2018 financial year, revenue increased from N36.5 billion in 2017 to N120 billion in 2018.
Loss before tax jumped by 150% from N3.2 billion in 2017 to N8 billion in 2018.
Loss before tax jumped by 150% from N3.2 billion in 2017 to N8 billion in 2018.
Due to a N4.1 billion tax credit, loss after tax was N3.8 billion in 2018 as against a N1.3 billion profit after tax recorded in 2017.
The results are for the enlarged entity comprising the legacy international breweries, Intafact Beverages Limited and Pabod Breweries.
Q1 2019 results were equally rough.
While revenue was up from N25.9 billion in 2018 to N35 billion in 2019, loss before tax jumped from N2.5 billion in 2018 to N5.3 billion in 2019
The firm made a loss after tax of N3.9 billion in 2019, as against a N2.2 billion loss in 2018
While revenue was up from N25.9 billion in 2018 to N35 billion in 2019, loss before tax jumped from N2.5 billion in 2018 to N5.3 billion in 2019
The firm made a loss after tax of N3.9 billion in 2019, as against a N2.2 billion loss in 2018
The company may need a rights issue to pay down some of its loans.
Term loans were N152 billion, as at Q1 2019.
Term loans were N152 billion, as at Q1 2019.
Still in the brewery space, Golden Guinea Breweries Plc released its results for the financial year ended March 2019.
The company recorded a loss after tax of N275 million.
The company recorded a loss after tax of N275 million.
A few H1 2019 results are already trickling in.
Infinity Trust Mortgage Bank released its results for the half year ended June 2019.
Revenue increased by 44.6% from N461 million in 2018 to N667 million in 2019.
Infinity Trust Mortgage Bank released its results for the half year ended June 2019.
Revenue increased by 44.6% from N461 million in 2018 to N667 million in 2019.
Profit before tax rose by 49.3% from N150 million in 2018 to N224 million in 2019.
Profit after tax rose by 49.6% from N141 million in 2018 to N211 million in 2019.
Profit after tax rose by 49.6% from N141 million in 2018 to N211 million in 2019.
Secure Electronic Technology Plc released its results for the half year ended June 2019.
Loss after tax rose from N19.3 million in 2018 to N39.8 million in 2019.
Loss after tax rose from N19.3 million in 2018 to N39.8 million in 2019.
The company remains stuck in a low margin cycle as it made N2.1 billion in winnings and paid out N1.2 billion as winnings, and N774 million as dealers commission.
The much awaited listing of Airtel Africa, which was to take place yesterday was postponed.
While the NSE gave no reason for the delay, it appears that the Securities and Exchange Commission granted it's approval on Friday.
While the NSE gave no reason for the delay, it appears that the Securities and Exchange Commission granted it's approval on Friday.
Barring any other delays, the company should list next week and will add N1.36 trillion to the NSE’s market capitalization.
Market capitalization is the sum of all shares listed on the exchange and their value.
Market cap is currently N12.9 trillion.
Market capitalization is the sum of all shares listed on the exchange and their value.
Market cap is currently N12.9 trillion.
On the regulatory side, the Securities and Exchange Commission (SEC) released several draft rules.
For retail investors, the following rules, if passed, would be of great benefit:
For retail investors, the following rules, if passed, would be of great benefit:
Rules on Transmission of shares
The Registrar shall transmit the Letter of Administration to the Probate Registry within 24 hours of receipt of same for verification.
The Registrar shall transmit the Letter of Administration to the Probate Registry within 24 hours of receipt of same for verification.
The Registrar shall ensure that shares of a deceased are transmitted within one week of receiving the request from the Administrators/Executors subject to the availability of the following:
Letter of Introduction from the Administrators/Executors, introducing themselves as the legal representatives of the Estate.
The letter should also indicate the names, addresses, signatures and BVNs of the individual Administrators/Executors.
The letter should also indicate the names, addresses, signatures and BVNs of the individual Administrators/Executors.
Original Death Certificate from the National Population Commission (NPC) for sighting.
Original probate letter or Letter of Administration for sighting or the Certified True Copy (CTC) from a Notary Public.
Copy of newspaper advert placed by the Court or Gazette.
Original probate letter or Letter of Administration for sighting or the Certified True Copy (CTC) from a Notary Public.
Copy of newspaper advert placed by the Court or Gazette.
Any evidence of ownership of the investment i.e. CSCS statement(s) of the deceased, original share certificates, dividend stub or dividend warrants or bank statement(s) showing receipt of dividend(s) into the account(s) of the deceased.
SEC also released draft rules for the Central CounterParty (CCP), a key component of any derivatives exchange.
Derivative trading could thus take root sometime this year.
Derivative trading could thus take root sometime this year.
So whats happening at the @NSEcontact next week ?
Airtel Africa will most likely list.
Seplat will hold a capital markets day where it will discuss details of the ANOH project.
Airtel Africa will most likely list.
Seplat will hold a capital markets day where it will discuss details of the ANOH project.
@NSEcontact Omoluabi Mortgage Bank, Trans Nationwide Express Plc, and Secure Electronic Technology will be holding their Annual General Meetings.
@NSEcontact Last, stocks to keep an eye on next week.
Academy Press and Smart Products Plc take the first spot, since they were the best and worst performing stocks for last week.
Academy Press and Smart Products Plc take the first spot, since they were the best and worst performing stocks for last week.
@NSEcontact All the companies having AGMs and other events at the @nsenigeria automatically have spots in @Nairametrics watchlist for the week.
The results of my poll from last week indicate 40% of respondents would like @AdewaleTinubu and @2babaofficial to have a collabo.
No polls for this week.
No polls for this week.
@AdewaleTinubu @2babaofficial That’s it for the week. if you would like to receive this as a newsletter, please send an email to outreach@nairametrics.com
If you have any questions, please tweet at me or @Nairametrics
Have a productive week ahead.
If you have any questions, please tweet at me or @Nairametrics
Have a productive week ahead.
@AdewaleTinubu @2babaofficial @Nairametrics PS: Oando vs SEC court case was to have held last week, but no word yet.
If any info comes out, I will add to the bottom of this thread.
END.
If any info comes out, I will add to the bottom of this thread.
END.
