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Nigerian Stock Market Extends Losing Streak to Five Days

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  • Stock Market Extends Losing Streak to Five Days

The nation’s stock market declined for the fifth straight day on Monday as 19 companies recorded price losses at the end of trading.

The All-Share Index of the Nigerian Stock Exchange fell to 34,837.50 basis points from 34,848.45bps on Friday while the market capitalisation of listed equities dipped to N12.718tn from N12.722tn.

The market capitalisation rose from N12.891tn on August 27 to N12.966tn on August 28, but has been declining since then.

Jaiz Bank Plc led the losers’ table at end of trading on Monday, followed by Flour Mills of Nigeria Plc, Transnational Corporation of Nigeria Plc, Prestige Assurance Plc and Veritas Kapital Assurance Plc.

Eighteen stocks appreciated on Monday, with Consolidated Hallmark Insurance Plc leading the pack.

Last week, the NSE ASI and market capitalisation depreciated by 1.63 per cent to close at 34,848.45bps and N12.722tn respectively.

Similarly, all other indices finished lower with the exception of the NSE Consumer Goods and NSE Oil and Gas indices that rose by 0.34 per cent and 0.97 per cent respectively, while NSE ASeM Index closed flat.

A total turnover of 1.533 billion shares worth N23.026bn in 17,009 deals were traded last week by investors on the floor of the Exchange in contrast to a total of 968.947 million shares valued at N10.246bn that exchanged hands in 9,654 deals the previous week.

The financial services industry (measured by volume) led the activity chart with 1.218 billion shares valued at N12.634bn traded in 10,132 deals, thus contributing 79.42 per cent and 54.87 per cent to the total equity turnover volume and value respectively.

The conglomerates industry followed with 70.807 million shares worth N120.611m in 803 deals, while the third place was occupied by consumer goods industry with a turnover of 58.505 million shares worth N3.422bn in 2,624 deals.

Trading in the top three equities, namely Nem Insurance Plc, Diamond Bank Plc and United Bank for Africa Plc (measured by volume), accounted for 512.615 million shares worth N1.928bn in 1,818 deals, contributing 33.44 per cent and 8.38 per cent to the total equity turnover volume and value, respectively.

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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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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