Thread by @quansimodo

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

Bulls and Bears, a weekly thread where I look at happenings on the @nsecontact in the previous week.

The term Bulls and Bears refers to the market sentiments symbolized by the animals. Bulls attack by swiping upwards, This represents positive sentiments.

Bears on the other hand, attack opponents by swiping downwards.

First a look at how the markets performed this week.

The losses on the @nsenigeria showed no sign of abating as this week’s trading session ended in the red.

The All Share Index closed at 27,630.46 basis points, down 1.03%. Year to date, the index is down 12.09%.

@nsenigeria Unity Bank Plc was the best performing stock this week appreciating by 27.59% to close at N0.74.

On the flip side, Eterna Plc was the worst performing stock this week. The stock declined by 19.40% to close at N2.70.

@nsenigeria Zenith Bank was the most actively traded stock by volume this week, with 93.9 million shares traded in 1642 deals.

MTN Nigeria was the most actively traded stock by value, as N4.7 billion worth of shares were traded this week.

@nsenigeria Moving on to corporate actions. A corporate action is any announcement made by a firm.

It could be as simple as a change in management or the closure date of a dividend.

@nsenigeria In a notice to the NSE this week, Access Bank Plc disclosed that it had concluded the process of issuing a N30 billion tier 2 bond due in 2026.

@nsenigeria Lafarge Africa has concluded the sale of its South African subsidiary for $316 million.

Proceeds were used to settle an intercompany loan taken from Caricem BV.

@nsenigeria The company currently has no foreign currency debt in its books.

Local debt amounts to N49 billion, comprising a N33.6 billion bond due in June 2021 and a N16 billion CBN intervention loan through the Bank of Industry.

@nsenigeria On to Alexit.

First Aluminium Plc was delisted from the @NSEcontact on Wednesday 31st of July, 2019.

Management of the firm had stated during the company was exiting to enable it raise funds, without diluting minority shareholders.

@nsenigeria @NSEcontact The share price at a time declined to as low as N0.25, so an equity raise would have massively diluted shareholders.

@nsenigeria @NSEcontact Ellah Lakes Plc has obtained the approval of shareholders to raise its authorized shareholders capital from N1 billion to N1.5 billion by the creation of 1 billion ordinary shares.

@nsenigeria @NSEcontact This is a prequel to the company’s plans to raise more capital either through debt, equity, or a combination of both.

Ellah Lakes by the way is a company into the cultivation of palm oil.

@nsenigeria @NSEcontact RAK Unity Plc, a small petroleum marketing company, has declared an interim dividend of N0.10 per share.

I could be wrong, but i think this is the first time this company is paying an interim dividend,

RAK is a small firm operating in the downstream oil space.

@nsenigeria @NSEcontact Moving on to appointments and board changes.

Ecobank Trans International has announced the appointment of Ayo Adepoju as Group Chief Financial Officer (CFO) with immediate effect. Adepoju had been in acting capacity, since April 2019.

@nsenigeria @NSEcontact CWG Plc has confirmed the appointment of Adewale Adeyipo as substantive Managing Director/Chief Executive Officer effective 1st of August 2019.

Adeyipo had been in acting capacity since December last year.

@nsenigeria @NSEcontact Livestock Feeds Plc has appointed Adegboyega Adedeji as Acting Managing Director, following the resignation of Solomon Aigbavboa.

Prior to his appointment, Adegboyega was General Manager Sales and Operations.

@nsenigeria @NSEcontact UAC of Nigeria Plc had a slight reshuffle of its board and that of sister company CAP Plc.

Awuneba Sotonye Ajumogobia, an independent non Executive Director, resigned from the board effective August 1, 2019. Ajumogobia has been appointed Chair of CAP Plc.

@nsenigeria @NSEcontact Suzanne Olufunke Iroche has been appointed Independent non Executive Director effective 1st of August, 2019.

@nsenigeria @NSEcontact David Wright has been appointed Managing Director of CAP Plc.

Udu Okonjo has been appointed a non Executive Director.

@nsenigeria @NSEcontact Solomon Aigbavboa and Omolara Elemide have resigned from the board.

Elemide however continues to serve on the board of Grand Cereals Limited, Livestock Feeds Plc, and UAC Foods Limited.

@nsenigeria @NSEcontact Moving on to results that were released during the week. Quite a few, because its earnings season.

Every 3 months, companies are mandated to release their results. Being a half year, a few will pay interim dividends.

@nsenigeria @NSEcontact FBN Holdings, one of Nigeria’s five biggest banks by capitalization (going by the acronym FUGAZ), released its results for the half year ended June 2019.

@nsenigeria @NSEcontact Gross earnings rose minutely by 0.3% from N293.3 billion in 2018 to N294.2 billion in 2019.

Profit before tax increased by 2.6% year on year, from ₦38.9 billion in 2018 to N39.9 billion in 2019.

@nsenigeria @NSEcontact Profit after tax declined marginally from N33.5 billion in 2018 to N31.7 billion in 2019.

@nsenigeria @NSEcontact John Holt Plc’s H1 2019 results show a sharp decline in topline, but decent increase in bottom-line, due to lower operating expenses.

@nsenigeria @NSEcontact Revenue fell by 34.3% from N2.2 billion in 2018 to N1.5 billion in 2019. Operating expenses fell from N1.8 billion in 2018 to N1.1 billion in 2019, down 39.6%.

@nsenigeria @NSEcontact Profit after tax rose by 72.8% from N38 million in 2018 to N66 million in 2019.

The company's results were quite brief, so im curious as to if its back from the dead. Or a zombie.

@nsenigeria @NSEcontact Medview airlines recorded a N1.7 billion loss after tax for the half year ended June 2019, largely due to a drop in revenue.

The company however failed to provide a half year 2019 breakdown of revenue earned.

@nsenigeria @NSEcontact Global Spectrum had a significant dip in profit after tax due to a 50% increase in direct cost from N288 million in H1 2018 to N433 million in H1 2019.

Profit after tax fell by 31.4% from N121 million in 2018 to N83 million in 2019.

@nsenigeria @NSEcontact Revenue growth was however positive, as revenue grew by 31.7% from N429 million in 2018 to N565 million in 2019.

Biz development expenses also grew, indicating that the company had doubled efforts in finding new contracts. They grew from N962,000 in 2018 to N5.2 million in 2019

@nsenigeria @NSEcontact Tantalizers Plc recorded lower losses year on year, as loss after tax for the 2019 financial year was N126 million as against a N222 million loss recorded in the comparative period of 2018.

@nsenigeria @NSEcontact C and I Leasing had increased topline and bottom-line growths for the first half of 2019. Revenue increased by 27.5% from N12.7 billion in 2018 to N16.2 billion in 2019.

@nsenigeria @NSEcontact Profit after tax also rose by 85% from N468 million in 2018, to N866 million in 2019.

The company has also stated its intentions to raise capital.

@nsenigeria @NSEcontact Presco Plc’s H1 2019 results took a similar pattern as its peer Okomu Oil. Topline and bottom-line dropped sharply.

Revenue dipped by 9.4% from N11.6 billion in 2018 to N10.5 billion in 2019.

@nsenigeria @NSEcontact Profit after tax also declined from N3.9 billion in 2018 to N3 billion in 2019, down 23% year on year.

@nsenigeria @NSEcontact AXA Mansard Insurance Plc had a slight decline in profit due to lower investment income.

Gross premium written increased from N23.5 billion in 2018 to N29.3 billion in 2019 up 24.6%.

@nsenigeria @NSEcontact Profit after tax however fell slightly from N1.5 billion in 2018 to N1.4 billion in 2019, down 6.6%.

@nsenigeria @NSEcontact Custodian Investment Plc released its results for the 2019 half year with decent increase in both top and bottom lines.

Revenue rose by 27.8% from N23.7 billion in 2018 to N30.3 billion in 2019

Profit after tax increased by 8.1% from N3.7 billion in 2018 to N4 billion in 2019

@nsenigeria @NSEcontact The firm declared an interim dividend of N0.10.

@nsenigeria @NSEcontact NEM Insurance Plc had a higher topline growth than bottom-line.

Gross premium written rose by 28.5% from N9.1 billion in 2018 to N11.7 billion in 2019.

Profit after tax rose marginally from N1.5 billion in 2018 to N1.6 billion in 2019, up 6.6%.

@nsenigeria @NSEcontact Dangote Sugar Refinery Plc had a slight drop in both top and bottom lines, largely due to a sharp drop in investment income.

Revenue declined by 4.76% from N84 billion in 2018 to N80 billion in 2019.

@nsenigeria @NSEcontact Profit after tax also dipped marginally from N12.7 billion in 2018 to N10.9 billion in 2019, down 14.1% year on year

@nsenigeria @NSEcontact Sister company, NASCON Allied Industries Plc, had a minute increase in revenue, but significant decline in profit.

Revenue rose from N12.8 billion in 2018 to N12.9 billion in 2019, up 0.7%.

@nsenigeria @NSEcontact Profit after tax fell however from N2.2 billion in 2018 to N1.4 billion in 2019, down 36.3% year on year.

@nsenigeria @NSEcontact Dangote Flour Mills had a decline in revenue, and incurred a loss in the first half of 2019. Revenue declined from N56.3 billion in 2018 to N47.3 billion in 2019, down 13.4%.

The firm recorded a loss after tax of N6.1 billion in H1 2019.

@nsenigeria @NSEcontact Forte Oil Plc seems to have bucked the trend of poor results in the downstream space, as the firm had significant increases in both topline and bottomline.

@nsenigeria @NSEcontact The improved performance was due to an increase in other income, as well as finance income (due to a devaluation of interest on subsidy).

@nsenigeria @NSEcontact Revenue rose from N61.8 billion in 2018 to N82.7 billion in 2019, up 33% year on year.

Profit after tax rose N366 million in 2018 to N5.4 billion in 2019.

@nsenigeria @NSEcontact Seplat had a marginal increase in revenue and profit before tax, but a much larger increase in profit after tax, due to lower tax payments.

@nsenigeria @NSEcontact Revenue increased from N104 billion in 2018 to N108 billion in 2019, up 3.84%.
Profit before tax declined marginally (due to N12.3 billion in impairments) from N37 billion in 2018 to N36 billion in 2019, down 0.2% year on year.

@nsenigeria @NSEcontact Profit after tax however surged by 152% from N14.4 billion in 2018 to N37.4 billion in 2019.

@nsenigeria @NSEcontact Conoil had a massive increase in both top and bottom lines for the first half of 2019. Revenue rose by 33% from N54.4 billion in 2018 to N72.2 billion in 2019.

@nsenigeria @NSEcontact Profit before tax jumped by 88% from N809 million in 2018 to N1.5 billion in 2019.

Profit after tax also increased by the same margin from N550 million in 2018 to N1 billion in 2019.

@nsenigeria @NSEcontact Champion Breweries, International Breweries and Nigerian Breweries all released their H1 2019 numbers.

Champion Breweries had a massive increase in bottom-line. Nigerian Breweries had a year on year decline. International Breweries remains loss making.

@nsenigeria @NSEcontact Champion Breweries revenue rose by 61% from N2.1 billion in 2018 to N3.4 billion in 2019, up N1.3 billion.
Profit after tax increased by over 200% from N80.5 million in 2018 to N208 million in 2019.

@nsenigeria @NSEcontact Nigerian Breweries had a drop in both topline and bottom-line.
Revenue dipped by 1.1% from N172 billion in 2018 to N170 billion in 2019.
Profit after tax declined by 27.7% from N18.4 billion in 2018 to N13.3 billion in 2019.

@nsenigeria @NSEcontact International Breweries’ revenue rose by 28.1% from N53.1 billion in 2018 to N68.1 billion in 2019.
Loss after tax stood at N10.5 billion in 2019.

@nsenigeria @NSEcontact UAC had an uptick in both topline and bottom line in H1 2019.
Revenue increased by 12.4% from N36.9 billion in 2018 to N41.5 billion in 2019.

Profit after tax jumped from N1.2 billion in 2018 to N2.5 billion in 2019, up 108% year on year.

@nsenigeria @NSEcontact Sterling Bank Plc had a slight drop in both topline and bottom line for the first half of 2019.
Gross earnings fell by 4.12% from N77.6 billion in 2018 to N74.4 billion in 2019.

Profit after tax declined by 3.2% from N6.2 billion in 2018 to N5.6 billion in 2019.

@nsenigeria @NSEcontact Union Bank had a slight decrease in both top and bottom lines for the 2019 half year.

Gross earnings declined slightly from N83.3 billion in 2018 to N76 billion in 2019.

@nsenigeria @NSEcontact Profit after tax however rose marginally from N11.4 billion in 2018 to N11.8 billion in 2019, up 3.5% year on year.

@nsenigeria @NSEcontact FCMB’s H1 2019 numbers show increases in both topline and bottom-line.
Gross earnings increased by 6.9% from N83.9 billion in 2018 to N89.7 billion in 2019.

@nsenigeria @NSEcontact Profit after tax however rose much more robustly, driven by lower impairment charges and other operating expenses.
Profit after tax rose from N5.7 billion in 2018 to N7.5 billion in 2019 up 31.5% year on year.

@nsenigeria @NSEcontact These are a handful of results that were released during the week.

I cant tweet all so the thread doesnt go on till forever. If you have questions on any company, you can tweet at me or @Nairametrics

@nsenigeria @NSEcontact @Nairametrics Moving on to after hours, MTN Nigeria sent in a notice today to shed more light on the tax situation pertaining to the fine it paid to the Federal Government.

@nsenigeria @NSEcontact @Nairametrics According to the firm, t there is a technical disagreement between it and the Federal Inland Revenue Service (FIRS) as to how the
fine should be treated for tax purposes.

@nsenigeria @NSEcontact @Nairametrics However, while the monies have
been paid to FIRS, it has taken the disagreement to the Tax Tribunal set
up by FIRS Chairman and Minister of Finance, and is awaiting a decision

@nsenigeria @NSEcontact @Nairametrics So whats happening next week ?

MRS Oil Holdings Plc and Red Star Express Plc will be holding their Annual General Meetings (AGMs) on the 7th and 8th of August 2019 respectively.

@nsenigeria @NSEcontact @Nairametrics MTN Nigeria has August 8 as the qualification date for its dividend.

The shareholders register will also be closed from August 9 to August 13.

@nsenigeria @NSEcontact @Nairametrics Last, stocks to watch this week. Its mostly banks.

UBA, Guaranty Trust Bank, Access Bank and Zenith Bank top next week’s watchlist as the boards of the banks have forwarded their H1 2019 results to the CBN.

Results could be released anytime within the month.

@nsenigeria @NSEcontact @Nairametrics Thats it for now.

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You can also tweet at me or @nairametrics if you have any questions.

@nsenigeria @NSEcontact @Nairametrics Thank you for taking the time to go through this thread.

Have a great evening.