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Lafarge, 17 Others Lift Stock Market by 2.21%



Stock Investors
  • Lafarge, 17 Others Lift Stock Market by 2.21%

The Nigerian Stock Exchange on Monday saw the market capitalisation of listed equities rise by N193bn as 18 stocks led by Lafarge Africa Plc recorded price appreciation.

Eight banking stocks posted gains, with Diamond Bank, Stanbic IBTC Holdings Plc, Ecobank Transnational Incorporated and Union Bank of Nigeria Plc among the top five gainers at the end of trading.

The NSE All-Share Index rose by 2.21 per cent on Monday, the first trading day after the Central Bank of Nigeria introduced a new policy to allow foreign investors to engage in foreign exchange trading at rates set by the buyers and sellers.

The CBN on Friday established a forex widow for investors and exporters to boost liquidity in the forex market and ensure timely execution and settlement for eligible transactions.

Industry analysts and other stakeholders have said the low level of liquidity and currency curbs in the country had kept foreign investors on the sidelines in recent times.

The NSE ASI closed at 25,747.05 basis points on Monday from 25,189.37 bps on Friday while the market capitalisation increased to N8.909tn from N8.716tn.

The share price of Lafarge jumped by 10.24 per cent to close at N50.71, while that of Diamond Bank rose by 5.56 per cent to close at N0.95.

Stanbic gained 4.98 per cent to close at N21.49 per share; ETI appreciated by 4.93 per cent to close at N7.45 per share, and Union Bank increased by 4.84 per cent to N4.98 per share.

Other gainers on Monday included 7UP Bottling Company Plc, United Bank for Africa Plc, Dangote Cement Plc, Guaranty Trust Bank Plc and Nigerian Breweries Plc.

Eleven stocks recorded price losses, with Nascon Allied Industries Plc leading the pack with a decline of 4.91 per cent to close at N7.36 per share.

Nestle Nigeria Plc shed 4.9 per cent to close at N713.5 per share, while NPF Microfinance Bank Plc fell by 4.27 per cent to close at N1.12 per share.

Fidson Healthcare Plc dropped by four per cent to close at N0.96 per share, while Portland Paints and Products Nigeria Plc lost 3.7 per cent to close at N1.82 per share.

A total of 211.757 million shares worth N1.409bn in 3,054 deals were traded on Monday by investors on the floor of the Exchange.

Lafarge Africa, which released its Q1 2017 results on Monday, said its profit after tax grew to N9.4bn compared with a pre-tax loss of N2.2bn in the corresponding quarter of 2016.

An analyst at FBN Capital Limited, Mr. Tunde Abidoye, said the robust PBT growth was driven by stellar sales growth of 55 per cent year-on-year and a significant gross margin expansion of 1,085 basis points y-o-y to 25.7 per cent.

“Further down the Profit and Loss account, PAT accelerated by 272 per cent y-o-y to N14.1bn, thanks to a positive result of N9.3bn (related to forex gains) on the other comprehensive income line,” he said.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and, with over a decade experience in the global financial markets.

Banking Sector

COVID-19: CBN Extends Loan Repayment by Another One Year




Central Bank Extends One-Year Moratorium by 12 Months

The Central Bank of Nigeria (CBN) has extended the repayment of its discounted interest rate on intervention facility by another one-year following the expiration of the first 12 months moratorium approved on March 1, 2020.

The apex bank stated in a circular titled ‘Re: Regulatory forbearance for the restructuring of credit facilities of other financial institutions impacted by COVID-19’ and released on Wednesday to all financial institutions.

In the circular signed by Kelvin Amugo, the Director, Financial Policy and Regulation Department, CBN, the apex bank said the role-over of the moratorium on the facilities would be considered on a case by case basis.

The circular read, “The Central Bank of Nigeria reduced the interest rates on the CBN intervention facilities from nine per cent to five per cent per annum for one year effective March 1, 2020, as part of measures to mitigate the negative impact of COVID-19 pandemic on the Nigerian economy.

“Credit facilities, availed through participating banks and OFIs, were also granted a one-year moratorium on all principal payments with effect from March 1, 2020.

“Following the expiration of the above timelines, the CBN hereby approves as follows:

“The extension by another 12 months to February 28, 2022 of the discounted interest rate for the CBN intervention facilities.

“The role-over of the moratorium on the above facilities shall be considered on a case by case basis.”

It would be recalled that the apex bank reduced the interest rate on its intervention facility from nine percent to five percent and approved a 12-month moratorium in March 2020 to ease the negative impact of COVID-19 on businesses.

To further deepen economic recovery and stimulate growth, the apex bank has extended the one year-moratorium until February 28, 2022.

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MTN Nigeria Generates N1.35 Trillion in Revenue in 2020




MTN Nigeria Grows Revenue by 15.1 Percent from N1.169 Trillion in 2019 to N1.35 Trillion in 2020

Despite the COVID-19 pandemic and challenging business environment, MTN Nigeria realised N1.346 trillion in revenue in the financial year ended December 31, 2020.

The leading telecommunications giant grew revenue by 15.1 percent from N1.169 trillion posted in the same period of 2019.

Operating profit surprisingly jumped by 8.5 percent from N393.225 billion in 2019 to N426.713 billion in 2020.

This, the telecom giant attributed to the surge in finance costs due to increased borrowings from N413 billion in 2019 to N521 billion in 2020.

MTN Nigeria further stated that the increase in finance costs was the reason for the decline in growth of profit before tax to 2.6 percent.

MTN Nigeria grew profit before tax by 2.6 percent to N298.874 billion, up from N291.277 billion filed in the corresponding period of 2019.

The company posted N205.214 billion profit for the year, a 0.9 percent increase from N203.283 billion recorded in the 2019 financial year.

Share capital remained unchanged at N407 million. While Total equity increased by 22.3 percent from N145.857 billion in 2019 to N178.386 billion in 2020.

MTN Nigeria’s market price per share increased by 61.8 percent from N105 to N169.90.

While market capitalisation as at year-end also expanded by 61.8 percent to N3.458 trillion, up from N2.137 trillion.

The number of shares issued and fully paid as at year-end stood at 20.354 million.

MTN Nigeria margins were affected by Naira devaluations and capital expenditure due to the new 4G network coverage roll-out.

Margins were adversely affected by the effect of naira devaluation and expenses associated with new sites’ roll-out to boost 4G network coverage in FY’20.

“On the former, we note that MTNN expanded the scope of its service agreement with IHS Holding Limited and changed the reference rate for converting USD tower expenses to NAFEX (vs CBN’s official rate previously). Thus, over the full-year period, the company’s operating margin contracted by 1.9 ppts YoY to 31.7%,” CardinalStone stated in its latest report.

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Nestle Nigeria Approves Final Dividend of N35.50k per 50 Kobo Ordinary Share for 2020




Nestle Nigeria Approves Final Dividend of N35.50k per 50 Kobo Ordinary Share for 2020

Nestle Nigeria, a leading food and beverage company, has declared a final dividend of N35.50k per 50 kobo ordinary share for the year ended December 31, 2020.

The beverage company said N24.50k of the amount declared was from the after-tax profit of 2020 and N5 and N6 were from the after-tax retained earnings of the years ended December 2019 and 2018, respectively.

Nestle Nigeria stated that the amount declared is subject to appropriate withholding tax and approval at the Annual General Meeting of shareholders.

It also noted that payment will be made only to shareholders whose names appear in the Register of Members as at the close of business on 21 May 2021.

Dividends will be paid electronically to shareholders whose names appear on the Register of Members as at 21 May 2021, and who have completed the e-dividend registration and mandated the Registrar to pay their dividends directly into their Bank accounts.

Shareholders who are yet to complete the e-dividend registration are advised to download the Registrar’s E-Dividend Mandate Activation Form, which is also available on their website:, complete and submit to the Registrar or their respective Banks.

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