Thread by @quansimodo

Good Evening and welcome to this week’s edition of Bulls and Bears powered by @nairametrics .

Bulls and Bears is a weekly tweet thread where I look at happenings on the @nsecontact

Please retweet from the very first thread, so those on your timeline dont miss out. Thread starts here.

So how did the @NSEcontact fare this week ? Poorly ?

The bears remained firmly in charge, as the @nsenigeria All Share Index declined by 2.41% to close at 28,566.79 basis points.

Year to date, the index is down 9.11%.

A bear market by the way, is one in which the prices of stocks are constantly declining.

It also can be traced to the ways bears attack which is by swiping downwards.

A few stocks were marked down this week.

Presco Plc was marked down by N2 and its ex dividend price was N44.80.

NPF Microfinance Bank Plc was marked down by N0.05, and its ex dividend price was N1.08.

NAHCO Aviance Plc was marked down by N0.25, and its ex dividend price was N2.95.

A mark down is the subtraction of a declared dividend from a company’s share price.

Moving on to some of the key events that took place on the @nsenigeria this week.

Airtel Africa was listed on Tuesday 9th of July, 2019 .

The listing was earlier scheduled for Friday July 5, 2019 but got postponed.

3,758,151,504 ordinary shares were listed at N363.

@LetsFeelFree is the first dually listed telco on the @NSEcontact , and the third biggest company on the exchange by market capitalization

The biggest firm by market cap is
@DangoteCement with a market cap of N2.9 trillion.

@MTNNG is next with a market cap of N2.6 trillion

@LetsFeelFree takes third place with a market capitalization of N1.2 trillion

Quick rule of thumb. Whenever there's a sharp rise or fall of the index, one of these three firms is involved. Collectively, they comprise 48.2% of the entire @NSEcontact

Airtel has however done poorly since listing and is down 10.88%, closing Friday’s session at N323.50.

Moving on, @seplatpetroleum
had a ‘facts behind the figures’ session for analysts and investors.

The session was focused on the Assa North and Ohaji South (“ANOH”) gas project

Here are a few of the results that were released within the week.

Lasaco Assurance Plc released its results for the 2018 financial year.

Gross premium written increased by 35% from N6.6 billion in 2017 to N9 billion in 2018.

Underwriting income went up by 39% from N3.9 billion in 2017 to N5.2 billion in 2018.

Profit before tax increased by 12% from N854 million in 2017 to N958 million in 2018.

Profit after tax was up 11% year on year from N661 million in 2017 to N736 million in 2018.

The company declared a dividend of 5 kobo per share.

SAHCO Plc released its results for the 2018 financial year and first quarter ended March 2019.

For the 2018 financial year, revenue increased by 24.4% from N4.9 billion in 2017 to N6.1 billion in 2018.

The firm made a loss before tax of N302 million in 2018, as against a profit before tax of N125 million made in 2017.

Loss for the year stood at N665 million, as against a profit after tax of N217 million made in 2017.

For the first quarter ended March 2019, revenue increased from N1.3 billion in 2018 to N1.9 billion in 2019.
Profit before tax jumped from N22.6 million in 2018 to N313 million in 2019.

Flour Mills of Nigeria Plc released its results for the financial year ended March 2019, after trading hours.

Revenue dipped slightly from N542 billion in 2018 to N527 billion in 2019.

Profit before minimum tax fell from N16.5 billion in 2018 to N10.1 billion in 2019.

Profit after tax also dipped sharply from N13.6 billion in 2018 to N4 billion in 2019.

The company however increased its dividend payout from N1 to N1.20.

Earnings per share for the 2019 financial year was N1, indicating that the firm may have dipped into its retained earnings in a bid to increase its dividend payout.

Conoil Plc released its results for the first quarter ended March, 2019.

Revenue increased from N31.3 billion in 2018 to N35.6 billion in 2019.

Profit before tax rose by 53.9% from N310 million in 2018, to N478 million in 2019.

Profit after tax also rose by 53.9% from N211 million in 2018 to N325 million in 2019.

Austin Laz and Company Plc released its results for the half year ended June 2019. Revenue increased from N191 million in 2018 to N205 million in 2019.

The firm made a profit before tax of N10.7 million in 2019, as against a N24 million loss recorded in the comparative period of 2018.

Profit after tax stood at N10.6 million, as against a N24.8 million loss recorded in 2019.

Moving on to other corporate actions.

Access Bank Plc and Union Bank Plc both denied rumours that there were plans by the former to acquire the tier two lender.

Shareholders of Transnationwide Express Plc seem to be fed up with the company’s poor performance, as they sacked three of the company’s non Executive Directors:

Alhaji Umaru Jimada,
Mrs Aderonke Fatade
Mrs Nneka Ikejiani.

This took place at the firm’s Annual General Meeting (AGM) which held this week.

Another non Executive Director, Ms Oluwatoyin Adebayo subsequently resigned effective last Friday.

University Press Plc announced the resignation of Dr Lekan Are, its Chairman, effective 31st of July 2019.

Obafunso Ogunkeye, a sitting non Executive Director has been appointed Chairman effective 1st August 2019.

Olayinka Lawal has been appointed a non Executive Director effective 1st August, 2019.

Notore Chemical Industries Plc announced the resignation of two non Executive Directors Oluwaseyi Owodunni and Olusoji Emiola.

Omatek Plc seems to have woken up from its slumber.

The company sent a notice this week, informing the NSE and the investing public that a board meeting would hold on July 18, 2019.

Issues to be discussed at the meeting include the approval of the firm’s 2017 and 2018 audited financial statements, as well as issues relating to the regularization of the company’s listing status.

Stanbic IBTC Bank (a subsidiary of Stanbic IBTC Holdings which is the listed entity) provided an update pertaining to a 10 year legal tussle which was concluded at the Supreme Court.

The bank paid a judgement sum of N2.5 billion to Longterm Global Capital Limited & Mr. Patrick Akinkuotu,

A full provision for this judgment was made in 2013, and as such, the payment of the judgment sum will have no impact on the bank’s current liquidity position and profitability.

Ecobank Trans International announced the redemption of a $250 million Eurobond by its Nigerian subsidiary, Ecobank Nigeria.

The bond, which was issued in August 2014, will be redeemed in August 2019, two years ahead of its 2021 maturity.

Accrued interest will be paid.

So whats happening next week ?

Abbey Building Society Plc and Tourist Company of Nigeria Plc will be holding their Annual General Meetings on the 15th and 18th of July 2019 respectively.

Red Star Express Plc will be closing its shareholders register from 17th to 19th of July 2019.

Qualification date for the dividend payment is July 18, 2019.

Last, stocks worth watching in the coming week.

Flour Mills of Nigeria Plc takes the first spot, since it released its results after trading hours.

Traders may decide to take positions in view of the dividend declared.

The company could also release its first quarter results anytime from now.

LASACO Assurance Plc is next, as it could release its first quarter 2019 results, having dropped FY 2018 numbers last week.
.

Red Star Express Plc takes the third spot, since it will be closing its register next week. Traders may decide to take position in view of that.

Sovereign Trust Insurance Plc has a spot, as the stock was the best performing last week.

Forte Oil Plc was the worst performing stock last week, hence its place on this week’s watchlist

Abbey Building Society and Tourist Company of Nigeria Plc have a joint place, as they will be holding their Annual General Meetings next week.

Stocks to watch is not a Buy/Sell/Hold list.

On a technical note, Nestle Nigeria Plc NAHCO, and PZ are worth watching.

I dare say, the whole NSE because several stocks are hitting new lows.

That’s it for now.

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Have a productive week ahead.

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