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Aiico, Flour Mills, Nestle Top Losers, Market Sheds N63bn



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  • Aiico, Flour Mills, Nestle Top Losers, Market Sheds N63bn

Aiico Insurance Plc, Flour Mills Nigeria Plc, Nestle Nigeria Plc, Continental Reinsurance Plc and Linkage Assurance Plc emerged the top five losers at the close of trading on the floor of the Nigerian Stock Exchange on Tuesday, as equities depreciated by N63bn.

The Nigerian equities market extended losses as the All-Share Index slid by 0.7 per cent to close at 35,397.52 basis points from 35,664.94 basis points, further trimming year-to-date gain to 31.7 per cent.

A total of 373.498 million shares worth N5.766bn exchanged hands in 4,193 deals as the NSE market capitalisation dropped to N12.2tn from N12.263tn.

The share price of Aiico closed at N0.55 from N0.59, shedding 6.78 per cent (N0.04), while Flourmill shares depreciated by five per cent (N1.45) to close at N27.55 from N29.

Similarly, Nestle shares plunged by 4.94 per cent (N59.80) to close at N1,150 from N1,210, while Continental Reinsurance recorded a 4.83 per cent (N0.07)drop in its share price to close at N1.38 from N1.45.

In the same vein, Linkage Assurance share price depreciated by 4.69 per cent (N0.03) to close at N0.61 from N0.64.

Commenting on the market’s performance, analysts at Afrinvest Securities said, “Tuesday’s performance was dragged by declines in large cap stocks such as Nestle, Nigerian Breweries Plc, Dangote Cement Plc and Lafarge Africa Plc, which depreciated by 4.9 per cent, 2.4 per cent, 0.5 per cent and 3.8 per cent, accordingly.

“Consequently, investors lost N92.2bn as market capitalisation fell to N12.2tn. However, activity level surged as volume and value traded rose by 225.4 per cent and 165.4 per cent to 373.5 million units and N5.8bn, respectively.”

Performance across sectors was broadly bearish as all indices declined save for the oil/gas index which added 2.1 per cent owing to bargain hunting in Seplat Petroleum Development Company Plc, which gained by five per cent.

On the other hand, losses in Nestle and Nigerian Breweries dragged the consumer goods index by 2.2 per cent lower, while the industrial goods index dipped by 1.9 per cent on account of declines in Dangote Cement and Lafarge.

Likewise, the insurance and banking indices depreciated by 1.5 per cent and 0.6 per cent due to negative sentiment towards Continental Reinsurance and Guaranty Trust Bank Plc, which plunged by 0.7 per cent.

Investor sentiment as measured by the market breadth weakened as 17 stocks advanced against 28, which declined.

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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