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Learn Africa, Cadbury, FCMB Lead N181bn Stocks’ Appreciation

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  • Learn Africa, Cadbury, FCMB Lead N181bn Stocks’ Appreciation

Learn Africa Plc, Cadbury Nigeria Plc and FCMB Group Plc outperformed others stocks traded on the Nigerian Stock Exchange on Tuesday as the bourse’s market capitalization rose by N181bn.

Learn Africa, Cadbury and FCMB appreciated respectively by 8.2 per cent, 7.4 per cent and 7.1 per cent as equities hit 37-month high.

A total of 522.357 million shares valued at N7.521bn exchanged hands in 5,120 deals.

The All-Share Index closed in the green for the fifth consecutive day, rising by 1.4 per cent to settle at 38,494.43 basis points – a level last seen in October 2014.

Thus, the year-to-date return of the benchmark index expanded to 43.2 per cent while market capitalisation rose by N181bn to close at N13.4bn.

Although the rally was broad-based, the day’s positive close can be largely attributed to gains in Dangote Cement Plc, Nigerian Breweries Plc, Guaranty Trust Bank Plc and Zenith Bank Plc, which appreciated by 1.7 per cent, 3.4 per cent, 0.7 per cent and 0.6 per cent, accordingly.

Similarly, the activity level improved as volume and value traded increased 4.4 per cent and 18.3 per cent to 522.354 million units and N7.521bn. respectively.

Sector performance remained mixed despite the markedly positive market performance as three out of the NSE five major indices closed higher with the other two indices declining.

The consumer goods index led the three gainers, up by 1.7 per cent following sustained buying interest in Nigerian Breweries, Dangote Sugar Refinery Plc and Unilever Nigeria Plc.

The other two gainers – banking and industrial goods indices – advanced by 1.3 per cent and 1.1 per cent on the back of price appreciations in United Bank of Nigeria Plc, GTBank, Zenith Bank and Dangote Cement, which appreciated by four per cent, 0.7 per cent, 0.6 per cent and 1.7 per cent.

On the other hand, the insurance index was dragged 0.6 per cent lower by declines in Aiico Insurance Plc and Continental Reinsurance Plc by 3.6 per cent and five per cent, accordingly, while the oil/gas index shed 0.4 per cent due to profit-taking in Forte Oil Plc, which declined by 3.9 per cent.

Investor sentiment as measured by market breadth strengthened compared to previous close with 31 stocks advancing versus 11 decliners.

“While we maintain a positive near-term outlook for market due to year-end portfolio re-balancing by portfolio managers, we do not rule out profit-taking in Wednesday’s (today) session by traders,” Afrinvest analysts said.

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

Finance

MTN Nigeria Generates N1.35 Trillion in Revenue in 2020

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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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Finance

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

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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: www.gtlregistrars.com, complete and submit to the Registrar or their respective Banks.

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Banking Sector

Dennis Olisa Invests N53.6 Million in Zenith Bank

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Executive Director of Zenith Bank Plc Buys 2 Million Shares of Zenith Bank at N53.6 Million

Executive Director of Zenith Bank Plc, Dennis Olisa, has invested a combined N53.58 million in shares of Zenith Bank.

The leading financial institution stated in a disclosure statement filed with the Nigerian Stock Exchange (NSE) on Monday.

Olisa carried out the purchase in two different transactions on February 24, 2021 at the Nigerian Stock Exchange in Lagos, Nigeria.

He purchased 1 million units of Zenith Bank at N26.60 each and another 1 million shares at N26.50 per share.

On aggregate, Olisa purchased 2 million shares of Zenith Bank at N26.79 per share or N53.58 million. See the details below.

Dennis Olisa was appointed as Zenith Bank’s executive director three years ago.

Prior to his appointment, Mr. Olisa was the Chief Inspector at Zenith Bank Plc and served as its Director from March 3, 2017 until March 16, 2017.

He also served as General Manager and Heads of the Energy Oil & Gas Group at Zenith Bank Plc and served as its Deputy General Manager. He served as Head of Internal Control & Audit Group at Zenith Bank Plc

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