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Stocks Gain N517bn in One Day, 60 Firms Soar

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  • Stocks Gain N517bn in One Day, 60 Firms Soar

The Nigerian stock market appreciated by N517bn on Wednesday as the Nigerian Stock Exchange All- Share Index gained 3.6 per cent to settle at 41.816.11 basis points.

A total of 60 stocks appreciated as the year-to-date return expanded to 9.3 per cent.

The NSE market capitalisation rose to N14.88tn from N14.363tn. Similar to prior sessions, performance was buoyed by a rally across sectors, with Dangote Cement Plc, Guaranty Trust Bank Plc and Zenith Bank Plc appreciating respectively by four per cent, 5.1 per cent and 6.7 per cent, thus lifting the market for the third day in a row.

Activity level also improved as volume and value traded rose by 41.2 per cent and 68.5 per cent to 1.088 billion units and N13.296bn, respectively.

Sector Performance was positive as all indices closed on positive notes. The banking index led the gainers chart, up by 5.3 per cent following sustained buying interest in GTBank and Zenith Bank. The industrial goods index followed, appreciating by 3.9 per cent owing to price appreciation in Dangote Cement.

Similarly, the consumer goods and insurance indices soared by 2.4 per cent and two per cent, respectively, due to gains in Nigerian Breweries Plc, International Breweries Plc, Continental Reinsurance Plc and NEM Insurance Nigeria Plc, which appreciated respectively by 4.3 per cent, 5.3 per cent, 4.8 per cent and 4.6 per cent.

The oil/gas index also gained, rising by 0.9 per cent on the back of an appreciation of 10.2 per cent in Conoil Plc.

Investor sentiment surged, following 60 stocks’ advancement against three decliners.

The best performing stocks were Conoil, Eterna Plc and Champion Breweries Plc, which rose by 10.2 per cent, 10.2 per cent and 10 per cent, accordingly, while Guinness Nigeria Plc, UACN Property Development Company Plc and Fidelity Bank Plc emerged as the worst stocks, sliding by 1.8 per cent, one per cent and 0.7 per cent, respectively.

Thus, commenting on the state of the equities market, analysts at Afrinvest Securities, in a note, said, “Following the sustained rally in the equities market, we re-iterate our positive near-term outlook while anticipating the possibility of profit taking in subsequent sessions.”

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.

Banking Sector

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

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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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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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