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Nigerian Stock Exchange Hits N14trn Market Cap on Rising Optimism




Nigerian Stock Exchange Rises to N14trn on Rising Optimism

The Nigerian Stock Exchange rose to N14.039 on Wednesday to sustain its bullish trend since the Central Bank of Nigeria lowered the interest rate by 100 basis points to 11.5 percent.

On Wednesday before Thursday’s independence day holiday, the market capitalisation of listed stocks rose by N116.7 billion to close at N14.039 trillion while the NSE All-Share Index expanded to 26,831.76 percent.

On Friday morning, the NSE All-Share Index gained 0.34 percent to 26,923.15 basis points as investors remained optimistic with the recent adjustment in the nation’s economic policy.

While macro fundamentals remained generally weak, stock traders are looking to take advantage of low stock valuations and the expected surge in economic productivity due to the lower interest rate to up their stock portfolio in the near-term.

Analysts at Cordros Research said “We expect the market might continue to benefit as domestic investors seek alpha-yielding opportunities in the face of increasingly negative real returns in the fixed income market. However, we advise investors to trade in only fundamentally justified stocks as the weak macro environment remains a significant headwind for listed companies.”

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.

Stock Market

Guinness Nigeria Profit After Tax Dipped by N841.65 Million in the Quarter Ended September 2020




Guinness Nigeria Declares N841.65 Million Decline Profit After Tax  in the Quarter Ended September 2020

Guinness Nigeria Plc gross profit declined slightly in the first quarter (Q1) ended September 30, 2020 to N7.01 billion, down from N7.94 billion achieved in the same period of 2019.

In the financial statements released through the Nigerian Stock Exchange (NSE), the company’s revenue rose from N26.89 billion posted in the corresponding period of 2019 to N30.02 billion in the first quarter of 2020. While the cost of sales increased from N18.95 billion in Q1 2019 to N23.01 billion in Q1 2020.

The surge in the cost of sales weighed on the company’s operating profit as it declined from N681.57 million in Q1 2019 to N586.3 million in the period under review.

The company’s net finance cost was negative at -N903.79 million due to N1.37 billion that was spent as finance cost during the period while generating finance income of N462.25 million. Still, this was better than the N1.05 billion posted in the corresponding period.

Profit before tax declined by N841.65 million during the period under review, worst than the N370.4 million decline posted in the corresponding period of 2019.

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CAP Profit After Tax Declined by 24.4 Percent in First Nine Months of the Year



CAP Posted N928 Million Profit After Tax in First Nine Months of the Year

Chemical and Allied Products Plc (CAP), one of Nigeria’s leading paints manufacturers, reported a 24.4 percent decline in profit after tax in the nine months ended September 30, 2020.

In the financial results signed by Chinwe Okpala, Head, Corporate Affairs and Communications, CAP Plc, the paints manufacturer grew revenue by 3.7 percent year-on-year to N6 billion during the period under review. This represents a 10.8 percent increase when compared to the same period of 2019 when there was no COVID-19 pandemic.

This, the company said was due to 33.7 percent growth recorded in the third quarter when the Federal Government eased lockdown and opened up the economy.

However, the company’s gross profit declined by 2.1 percent year-on-year during the period to N2.7 billion. Largely due to surge in operating cost because of the disruption of global supply chain, rising inflation and double currency devaluation.

Also, profit before tax declined to N1.4 billion, “reflecting a decline of 850 basis points on Profit Before Tax margin due to the decline in operating profit; and a 40.6% decline in net finance income due to lower investment income yields compared to prior year,” the report reads.

Profit after tax declined by 24.4 percent from N1.2 billion achieved in the same period of 2019 to N928 million in the period under review.

Accordingly, earnings per share dipped by 24 percent from 175 kobo posted in corresponding period of 2019 to 133 kobo in the first nine months of 2020.

Speaking on the company’s performance, David Wright, Managing Director, David Wright, said: “In the last quarter of 2019, CAP embarked on a new growth strategy focused on creating value for our shareholders and we are encouraged by the top line growth thus far. CAP’s performance in 2020 has been affected by COVID-19, particularly in April and May as a result of the stringent movement restrictions which constrained production and led to supply chain disruptions.

“Despite the challenging operating environment, we achieved strong revenue and volume growth of 34% and 34.6% respectively in the third quarter of the year. Going forward, we expect to continue to see the positive effects of our growth strategy on our sales and remain focused on managing operating costs to deliver on profit ambitions in the fourth quarter.”

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Nigerian Breweries Declare Open Series 9 and 10 Commercial Paper Programme



Nigerian Breweries PLC

Nigerian Breweries Open Series 9 and 10 Commercial Paper Programme for Subscription Today

Nigerian Breweries has declared open its series 9 and 10 commercial programme paper for subscription by investors.

The company disclosed this in a statement released through the Nigerian Stock Exchange.

In the statement signed by Uaboi G. Agbebaku, Nigerian Breweries said: “Nigerian Breweries Plc (“the Company”) is pleased to inform The Nigerian Stock Exchange and the investing public of the continuation of its Commercial Paper (“CP”) programme with the launch of Series 9 and 10 of the programme which opens on 23rd October, 2020. While Series 9 would be for a tenor of 180 days, Series 10 would be for 270 days. The CP Programme aims to raise up to N20 billion to support the Company’s short-term funding needs.

“The CP Programme continues to provide the opportunity for non-equity investors to invest in the Company, support the Company’s cost management initiatives and serve as an additional source of funding for the Company.”

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