The Nigerian Stock Exchange said on Wednesday that it had lifted the suspension it placed on the trading in the shares of Standard Alliance Insurance Plc.
It said the firm was suspended on July 5, 2018, for non-compliance with rule 3.1 of the Exchange (Issuers’ Rules) − Rules for filing of accounts and treatment of default filing.
According to the NSE, if an issuer fails to file the relevant accounts by the expiration of the cure period, the Exchange will send to the issuer a second filing deficiency notification within two business days after the end of the cure period.
The bourse added that it would also suspend trading in the Issuer’s securities and notify the Securities and Exchange Commission and the market within 24 hours of the suspension.
It said Standard Alliance Insurance Plc had submitted its audited financial statement for the year ended December 31, 2017.
The Head, Listings Regulation Department, NSE, Godstime Iwenekhai, said, “In view of the submission of its accounts and pursuant to rule 3.3 of the Default Filing Rules, which provides that the suspension of trading in the issuer’s securities shall be lifted upon submission of the relevant accounts, provided the Exchange is satisfied that the accounts comply with all applicable rules of the Exchange.
“The Exchange shall thereafter also announce through the medium by which the public and the SEC was initially notified of the suspension. The general public is hereby notified that the suspension placed in the trading of the company’s shares has been lifted effective today, Wednesday, 29 August 2018.”
United Bank for Africa Plc has said its gross earnings rose by 16 per cent in the second quarter of 2018 financial period.
According to a statement from the bank on Wednesday, its second quarter performance showed strong growth across key performance metrics as well as a significant contribution from its African subsidiaries
It stated, “Despite declining yield environment in two core markets, Nigeria and Ghana, the pan African financial institution delivered double-digit growth in gross earnings, as it recorded a 16 per cent year-on-year rise in top-line to N258bn, compared to N223bn recorded in the corresponding period of 2017. This performance, according to analysts, underscores the capacity of the group to deliver strong performance through economic cycles, even in a challenging business environment.”
According to the report filed at the Nigerian Stock Exchange on Wednesday, UBA, reported strong growth in operating income at N168.5bn, compared to N161.8bn in the first half of 2017, an increase of 4.1 per cent.
It added that notwithstanding the inflation-induced cost pressure in the period, UBA finished the first half of the year strongly, with a profit before tax of N58.1bn.
The bank said the profit after tax also improved to N43.8bn, a 3.4 per cent growth compared to N42.3bn achieved in the corresponding period of 2017; the first half of the year profit, translated to pre-tax and post-tax return on average equity of 23 per cent and 17 per cent respectively.
The equities market rebounded last week with the Nigerian Stock Exchange (NSE) All-Share Index (NSE ASI) gaining 0.45 per cent after three weeks of decline. Although trading in the week was for only three days due to declaration of Tuesday and Wednesday as public holiday, price appreciation in Dangote Cement Plc lifted the positive performance for the week.
Consequently, the NSE ASI closed higher at 35,426,21, while market capitalisation ended higher at N12.933 trillion.
However, all other indices finished lower, save for the NSE Premium, NSE Insurance, NSE Lotus II and NSE Industrial Goods indices that rose by 3.15 per cent, 0.78 per cent, 1.10 per cent and 1.96 per cent respectively, while NSE ASeM Index closed flat.
At the start of the week, losses in Guaranty Trust Bank Plc, Zenith Bank Plc, Nigerian Breweries Plc and Unilever Nigeria Plc, had depressed the market by 1.7 per cent on Monday.
However, there was sustained bargaining hunting in Dangote Cement on Thursday and Friday. Hence, the market ended the week with a growth of 0.45 per cent.
Performance across sectors was bearish as three of the five indicators declined. Specifically, the NSE Industrial Goods Index and NSE Insurance Index appreciated 2.0 per cent and 0.8 per cent respectively, while the NSE Banking Index shed 3.0 per cent. In the same vein, the NSE Consumer Goods Index and NSE Oil & Gas Index went down by 2.2 per cent and 0.2 per cent in that order.
Meanwhile, investors traded 968.947 million shares worth N10.246 billion in 9,654 deals last week, compared with a total of 1.147 billion shares valued at N12.546 billion that exchanged hands in 16,649 deals the previous week.
The Financial Services Industry led the activity chart with 874.023 million shares valued at N7.671 billion traded in 6,029 deals, thus contributing 90.20 per cent and 74.87 to the total equity turnover volume and value respectively. The Consumer Goods Industry followed with 26.818 million shares worth N1.624 billion in 1,476 deals. The third place was occupied by Oil and Gas Industry with a turnover of 24.795 million shares worth N91.439 million in 752 deals.
The price movement chart showed that 15 stocks appreciated last week compared with 16 stocks of the previous week, while 45 equities shed value as against 56 stocks of the previous week.
Newrest ASL Nigeria Plc led the price gainers with 19.1 per cent, trailed by Skye Bank Plc with 18.7 per cent. Veritas Kapital Assurance Plc and FCMB Group Plc added 7.6 per cent each among others.
Conversely, Jaiz Bank Plc led the price losers with 11.1 per cent, followed by Union Diagnostic & Clinical Services Plc with 10.3 per cent.
Stanbic IBTC Holdings has said its profit after tax grew by 17 per cent to N43.08bn in the first half of the year from N24.11bn in the same period of 2017.
The firm’s gross earnings, which stood at N97.20bn last year, surged to N114.21bn this year.
Its profit before tax rose by 74 per cent to N50.73bn from N29.17bn in the corresponding period of 2017, while total assets stood at N1.37tn in June 2018 as against N1.39tn in December 2017.
The Chief Executive Officer, Stanbic IBTC Holdings Plc, Yinka Sanni, was quoted in a statement as saying, “The operating environment in the first half of the year was characterised by rising oil prices, stable oil production level leading to accretion to the country’s external reserves, improved foreign exchange liquidity with attendant interventions from the Central Bank of Nigeria and moderating inflation amid declining yields on money market securities.
“Stanbic IBTC continued to deliver stellar performance over the course of the first half of the year. Profit before tax grew to N50.73bn, representing a 74 per cent growth from prior year on the back of non-interest revenue growth and recoveries from delinquent assets previously impaired. Our credit impairment line has a write back of N5.5bn as at June 2018 as we continue to intensify recovery efforts on previously classified loans.”
He said the group’s interest income increased by six per cent to N59.9bn predominantly driven by loan growth.
Sanni said, “This was offset by increase in interest expense of 26 per cent as a result of interest paid on maturing term deposits and other borrowings. We are making good progress on our drive to reduce cost of funds which has reduced by more than 100 basis points, manifesting in a 15 per cent reduction in interest cost between Q1 2018 and Q2 2018.
“We have seen significant growth in transaction volumes across our digital platforms. The volume of transactions via our mobile banking, SME internet banking, USSD platforms and ATMs have increased by over 100 percent each year-on-year as we continued to drive non-interest income growth. Also, we kicked off the initial stage of implementing a virtual banking proposition.
“Our Africa-China Banking Centre was recently launched and it aims to provide bespoke solutions and address the needs of business communities in both Nigeria and China while leveraging our relationship with Standard Bank and the Industrial & Commercial Bank of China.”
Sanni said the group remained focused on driving long-term value for its clients and shareholders through its balanced and diversified business model, while thanking the various stakeholders for their contributions and support towards the achievement of the half-year results.
The market capitalisation of equities listed on the Nigerian Stock Exchange fell further last week as 56 firms recorded price depreciation.
The NSE All-Share Index and market capitalisation depreciated by 0.51 per cent to close the week at 35,266.29 basis points and N12.875tn respectively.
Similarly, all other indices finished lower with the exception of the NSE Premium, NSE Lotus II and NSE Industrial Goods indices that rose by 0.59 per cent, 0.23 per cent and 1.29 per cent respectively, while NSE ASeM Index closed flat.
Sixteen equities appreciated in price last week, lower than 20 in the previous week. Fifty-six equities depreciated in price, higher than 47 equities of the previous week, while 97 equities remained unchanged as against 103 in the preceding week.
A total turnover of 1.147 billion shares worth N12.546bn in 16,649 deals were traded last week by investors on the floor of the Exchange in contrast to a total of 925.630 million shares valued at N8.333bn that exchanged hands in 15,565 deals the week before.
The financial services industry (measured by volume) led the activity chart with 891.785 million shares valued at N8.251bn traded in 9,187 deals, thus contributing 77.78 per cent and 65.77 per cent to the total equity turnover volume and value respectively.
The consumer goods industry followed with 79.149 million shares worth N2.631bn in 2,931 deals, while the third place was occupied by conglomerates industry with a turnover of 60.294 million shares worth N93.993m in 694 deals.
Trading in the top three equities, namely Nem Insurance Plc, United Bank for Africa Plc and Mansard Insurance Plc (measured by volume), accounted for 360.623 million shares worth N1.967bn in 970 deals, contributing 31.45 per cent and 15.68 per cent to the total equity turnover volume and value respectively.
Also traded last week were a total of 1,793 units of Exchange Traded Products valued at N282,571.59 executed in nine deals, compared with a total of 1,727 units valued at N333,925.78 that was transacted in nine deals the previous week.
A total of 2,647 units of Federal Government Bond valued at N2.725m were traded last week in 17 deals, compared with a total of 7,787 units valued at N8.005m transacted the week before in 11 deals.
Zenith Bank Plc yesterday announced an interim dividend of N9.42 billion for the half year (H1) ended June 30, 2018, following the release of the bank’s results.
The dividend, which translates to 30 kobo per share, is higher than the N7.5 billion or 25 kobo paid in the corresponding period of 2017.
According to notification to the Nigerian Stock Exchange (NSE), the interim dividend would be paid to shareholders whose names appear on the bank’s register on August 17, while payment would be made on August 24, 2018.
The N9.42 billion interim dividends would be paid from a profit after tax (PAT) of N81.7 billion recorded by for the H1, up from N75.3 billion in 2017.
Zenith Bank Plc posted gross earnings of N322.2 billion in 2018, down from N380.4 billion in 2017. Net interest income stood at N154 billion compared with 139 billion in 2017.
Impairment charges fell from N42.4 billion to N9.7 billion, while non-interest income reduced from N118.2 billion to N93.5 billion.
Profit before tax improved from N92.2 billion to N107.4 billion, while PAT stood at N81.7 billion, compared with N75.3 billion in 2017.
Market operators said with higher interim dividend, shareholders should expect a higher final dividend at the end of the year. The bank had paid a total dividend of N2.70 per share for 2017.
The Chairman of the bank, Mr. Jim Ovia, had told shareholders at the annual general(AGM) last despite the challenging operating environment, the bank was able to achieve improved performance in its financial results in 2017.
He said profit before tax rose by 24 per cent from N140bn in 2016 to N174bn in 2017, while total assets of the bank grew by 13 per cent from N4.28tn in 2016 to N4.83tn in 2017.
“This translated into an excellent performance that stands as a testament to the durability and resilience of the brand. Clearly, the results are once again a reflection of the exceptional financial health of the bank and the group,” he said.
Speaking in the same vein, the Group Managing Director, Zenith Bank Plc, Mr. Peter Amangbo, said the management of the bank had made progress in its vision to entrench sustainability in its operations.
He had said the management of the bank would increase the quality of its engagement and be more proactive by anticipating fluctuations in the economy and markets.
Bargaining hunting in insurance stocks has made the Nigerian Stock Exchange (NSE) Insurance Index to emerge the best performing indicator year-to-date (YtD). The continuing bear run in the stock market caused by exit of foreign investors and low demand by domestic investors had left market indices bleeding YtD.
Apart from the benchmark NSE All-Share Index (NSE ASI) which recorded aYtDdecline of 4.5 per cent as at last Friday, 11 other indices have also recorded negative returns.
However, the only two market of the indices –the NSE Insurance Index and NSE Premium Index – recorded YtDgains.
The NSE Insurance Index lead with 4.2 per cent, while the NSE Premium Index followed with a gain of 3.1 per cent.
The worst YtD decline was by the NSE ASeMIndex, which was 25.5 per cent, followed by the NSE Industrial Goods Index with 13.1 per cent.
The NSE Industrial Goods Index declined by 10.2 per cent, while NSE Main Board Index shed 5.8 per cent.
Others that recorded YtD decline were the NSE 30 Index (5.8 per cent); NSE Oil &Gas Index (3.9 per cent); NSE Corporate Governance Index(3.1 per cent);NSE Banking Index(2.8 per cent);NSE Lotus 11 Index (2.3 per cent); and NSE Pension Index (1.2 per cent).
Meanwhile, a further analysis of the NSE Insurance Index showed the growth was propelled by six out of the 15 stocks that constitute the index.
The stocks that lifted the indicator were led by N.E.M Insurance Plc which posteda YtD jump of 77.7 per cent, followed by AXA Mansard Insurance Plc with 37.3 per cent. AIICO Insurance Plc has appreciated 34.6 per cent, while Law Union & Rock Insurance Plc, Linkage Assurance Plc and Continental Reinsurance Plc gained 29.8 per cent, 21.2 per cent, and 20 per cent respectively.
Market operators said the bargain hunting in insurance sector by some discerning investors was expected given the low prices of the most of the stocks.
Since the NSE introduced a new pricing methodology and par value rule on January 29, 2018, the share prices of insurance stocks have suffered significant value erosion.
According to operators, the low prices offer a very good opportunity to invest in some of the stocks that have strong fundamentals and bright future prospects.
In all, 16 of the 26 insurance stocks on the NSE are currently trading below 50 kobo par value since the new pricing methodology was introduced in January.
Although the lower prices offer new entry opportunities in some of stocks, investor apathy for insurance stocks are basically caused by two major factors.
“Investors’ low demand for insurance stocks stemmed mostly from their poor corporate performance, which often makes them to pay low dividends.
“Besides, low awareness about their operations equally discourages investors from the sector,” a stockbroker, Mr. Ayo Oguntayo had said.
According to him, while some insurance companies have strong fundamentals and have put in place strategies to deliver improved returns to shareholders, most potential investors are not aware of such prospects.
The market capitalisation of the Nigerian Stock Exchange (NSE) got a boost by N100.75 billion yesterday, following the historic listing of 1.612 billion ordinary shares of Notore Chemical Industries Plc (Notore) at N62.50 per share.
The company was listed on the industrial goods sector of the NSE. The listing was the first this year.
Notore, which is a vertically integrated agro-allied, chemical and power group based in Onne Rivers State, has six subsidiaries. They are Notore Supply & Trading Mauritius Limited, Notore Power Limited, Notore Seeds Limited, Notore Foods Limited and Notore Industrial City Limited.
Speaking on the reasons for the listing on the NSE, the Group Managing Director/Chief Executive Officer of Notore Plc, Mr. Onajite Okoloko, said it was to support the Nigerian government’s effort to deepen the capital markets, improve liquidity and tradability of the company’s shares. In addition, he said the move would increase the company’s visibility and credibility in the Nigerian market and beyond.
“The listing will also increase access to capital in order to fund the company’s future growth initiatives and grant Nigerians the opportunity to participate in the Notore’s growth history,” he said.
Giving a brief history of the company, Okoloko said, formerly O-Secul Fertilizer Company Limited, Notore was established in 2005 to acquire the core assets of the National Fertilizer Company of Nigeria (NAFCON).
“Our core business is the production and sale of fertilizer products, which is traded locally (within) Nigeria and exported to West Africa, Southern Africa and Europe. Our key strength lies in our huge potential to diversify our revenues due to our favourable location within a prolific gas hub and access to a jetty, which guarantees easy export of any products manufactured in the facility,” he said.
Disclosing the value proposition of the company, Okoloko said Notore remains the only urea producer in sub-Sahara Africa with control over gas supply and has vast distribution network in the local Nigerian market. According to him, it currently produces 1,000 metric tonnes of urea fertilizer on daily basis.
“Notore sells 75 per cent of its urea fertilizer locally and export 25 per cent to leading international traders such as Helm Ag, Ameropa and Yara. Notore is a licensed independent power producer, which generates electricity for use in the fertilizer plant and residential estate with excess capacity available for sale to nearby off-takers. Total capacity of 50 megawatts(MW) with own use requirements of between 8-13MW,” he said.
On the financial performance of the company, Okoloko said revenue grew from N21.285 billion in 2013 to N35.985 billion in 2017, while profit after tax rose from N1.694 billion to N8.652 billion the respective years.
Looking ahead, the GMD said Notore had secured approval for US37 million facility to fund its turnaround maintenance program, acquire and install back-up power supply and acquire critical plant spares.
“In the medium term, Notre will develop new compound fertilizer blends specifically for key growth crops, expand the company’s seed business and develop a crop protection business. We will also leverage the company’s free zone developer status to develop the proposed industrial complex into a gas hub and an integrated logistics service provider to the oil and gas sector,” he said.
The gains recorded by the equities market in the last four days have been eroded as the market returned to the control of the bears. The Nigerian Stock Exchange (NSE) All-Share Index fell by 1.09 per cent to close at 39,031.72, while market capitalisation shed N146.7 billion to close lower at N13.3 trillion.
Although companies are reporting their financial performance for the half year (H1) ended June 30, 2018, with some recording improved bottom-lines, investors moved in to lock in gains posted in the four-day rally.
Hence, the bearish start to the month of August. Depreciation in stocks such as Nestle Nigeria Plc, Dangote Cement Plc, Access Bank Plc and FBN Holdings Plc were responsible for the decline recorded.
In all, 24 stocks shed value led by CAP Plc and Royal Exchange Plc with 10 per cent apiece. International Breweries Plc followed with 9.7 per cent, while Unity Bank Plc and Sunu Assurance Plc went down by 9.3 per cent and 9.0 per cent in that order.
Other top price losers included: Fidelity Bank Plc (8.0 per cent); PZ Cussons Nigeria Plc (7.2 per cent); Regency Alliance Insurance Plc(4.0 per cent); Sovereign Trust Insurance Plc (3.7 per cent) and Custodian Investment Plc (3.6 per cent).
On the positive side, 21 stocks gained led by Neimeth International Pharmaceuticals Plc with 10 per cent. Jaiz Bank Plc trailed with 8.4 per cent, just as Okomu Oil Palm Plc and Mutual Benefits Assurance Plc chalked up 8.4 per cent and 8.3 per cent respectively.
Meanwhile, activity level was mixed as volume traded fell 2.0 per cent to 240.0 million shares whilst value traded increased 10.9 per cent to N5.0 billion. The most traded stocks by volume were Zenith Bank Plc (94.9 million shares ), UBA (28.7 million shares) and Nigerian Breweries (15.1 million) while Zenith Bank Plc (N2.2 billion),Nigerian Breweries Plc (N1.6 billion) and UBA (N271.9 million) were the top traded stocks by value.
In terms sectoral performance three sectors trended southwards led by the NSE Consumer Goods Index with led with a decline of 2.3 per cent. The NSE Banking Index went down by 0.7 per cent, just as NSE Industrial Goods Index 0.4 per cent.
On the hand, the NSE Oil & Gas Index rose 0.6 per cent, while NSE Insurance Index closed flat.