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Alert: These 17 stocks have been suspended from trading on the NSE

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Oscar Onyema

In a sign that the Nigerian Stock Exchange (NSE) is waking up from its slumber, it on Friday issued a notice suspending trading in the shares of 17 companies for non submission of their results.

It claims the suspension is in line with its guidelines which gives it the powers to suspend any quoted company that did not release its results within a stipulated period.

The suspension is effective July 5th 2017 and includes a list of 17 companies out of which 7 are insurance firms. The NSE also reveals that the suspension will remain in place until the submission and approval of the required results by the exchange.

The suspended companies are listed below.

  1. African Alliance Insurance Plc
  2. Equity Assurance Plc
  3. Fortis Microfinance Bank Plc
  4. Guinea Insurance Plc
  5. Premier Paints Plc
  6. Resort Savings & Loans
  7. Sovereign Trust Insurance Plc
  8. African Paints (Nigeria) Plc
  9. Aso Savings & Loans Plc
  10. Ekocorp Plc
  11. Evans Medical Plc
  12. Goldlink Insurance Plc
  13. Great Nigeria Insurance Plc
  14. Omatek Ventures Plc
  15. Union Dicon Salt Plc
  16. Union Homes Savings & Loans Plc
  17. Universal Insurance Company Plc

On the suspension

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The NSE has been criticized by a section of investors (Nairametrics inclusive) for taking too long to wield the big stick on rogue listed companies who continue to flout listing rules, despite the obvious risk they pose to investor funds. The Nigerian Stock Exchange has had a history of seeing quoted companies that are yet to release any result embark on bullish runs leading to gains of over 100% in some cases. Union Dicon, which is included in this list, some mid 2016 rallied from about N10 t0 N17 despite not having released its results. It is often considered an anomaly for a listed company that has failed to produce any results or corporate action for years, suddenly see its share price mount a bullish run.

We now hope that this step in the right direction will be sustained.

Will the suspension be lifted ?

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Eventually after the companies have paid the required fines and submitted their results, the suspension will be lifted. Since some of the companies have their results pending before regulators, they may remain suspended on the exchange for a while.

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Can I buy or sell during suspension

Shares of any of these companies cannot be traded on the Nigerian Stock Exchange during the period of the suspension. If you own these shares and wish to sell, you will not be able to sell.

What if the companies never get to lift their suspension?

If this occurs the NSE will have no choice but to delist these companies from the exchange. Therefore, if you were to sell the shares, it will have to be either crossed or sold on the NASD (a market where unlisted shares are traded).

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Here is a copy of the press release.

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Onome Ohwovoriole has a degree in Economics and Statistics from the University of Benin and prior to joining Nairametrics in December 2016 as Lead Analyst had stints in Publishing, Automobile Services, Entertainment and Leadership Training.He covers companies in the Nigerian corporate space, especially those listed on the Nigerian Stock Exchange (NSE).He also has a keen interest in new frontiers like Cryptocurrencies and Fintech. In his spare time, he loves to read books on finance, fiction as well as keep up with happenings in the world of international diplomacy.You can contact him via [email protected]

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Companies

Neimeth Pharmaceuticals to raise N5 billion in additional equity

The Board of Neimeth is set to raise N5 billion additional equity upon the approval by shareholders of the company at the AGM.

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Neimeth Pharmaceuticals
The Board of Directors of Neimeth Pharmaceuticals has revealed plans to raise N5 billion in additional equity upon approval by shareholders of the company.
The information was contained in a press release published on the NSE and signed by the Company Secretary, Mrs. Florence Onhenekwe.

The disclosure is part of the resolutions reached at the Board of Directors meeting of 15th January 2021. At the end of the meeting, it was resolved that the company would raise additional equity to the tune of N5 billion.

In line with this development, a board resolution proposing to raise equity will be presented at the Annual General Meeting of the Company scheduled to hold on 9th March 2021.

What you should know

  • The Board of the Company is yet to disclose if the additional equity would be a rights issue or a private placement, as the details of the additional N5 billion equity set to be raised are yet to be finalized.
  • The fund will help the company’s management to execute key strategies that will reposition the company as a leader in the healthcare industry, with the hope to deliver better returns on investment to shareholders.
  • The additional equity financing will also increase Neimeth’s outstanding shares, which will dilute earnings and impact the Company’s stock value for existing shareholders.
  • The move has the potential to trigger a sell-off of the company shares on the Nigerian Stock Exchange.

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Companies

Cutix Plc forecasts N148 million profit in Q4 2021

Cutix Plc has projected that its revenue will double and profit will increase by 9% to N148 million.

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Cutix Plc, dividend

Cutix Plc has projected that in the fourth quarter of its financial year 2021, its revenue will double and profit will increase by 9% to N148 million.

These projections were made by the company in a recent earnings forecast issued by the Management, and signed by the Company’s CEO and CFO.

READ: Vitafoam shares gain 9.6%, as company reports N4.11 billion as profit in 2020

Key highlights of the earnings forecast for Q4 ended April 30, 2021

  • Revenue to increase to N1.66billion, 100% Q-o-Q.
  • Cost of Sales to increase to N1.16 billion, 70% Q-o-Q.
  • Distribution, Admin & Other expenses to increase to N232.89 million, 14%% Q-o-Q.
  • Other Income to remain unchanged at N2.50 million,
  • Finance Charges to increase slightly to N47.38 million, 3% Q-o-Q.
  • Operating income to increase to N227.83 million, 14% Q-o-Q.
  • Taxation is projected at N79.74 million.
  • While Profit attributable shareholders is projected at N148.10 million.

READ: Royal Exchange Plc forecasts N500.83 million PAT in Q1 2021

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Bottom line

The earnings forecast was made on the ground that the Nigerian economy will continue improve, as the country recovers from the impact of COVID-19. In this regard, revenue in the fourth quarter of 2021 will be slightly higher than the revenue projected in the third quarter of 2021.

READ: Okomu Oil Plc records 27.01% decline in 2020 Q3 revenues

However, the increase in the cost of sales driven by the input cost will pressure profitability to the tune of N148.10 million, which is 9% higher than the profit after tax made in the corresponding quarter of 2020.

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Companies

PZ Cussons proposes dividend payout of N397 million to the shareholders

The Board of Directors of PZ Cussons Nigeria Plc has proposed the payment of N397 million to the shareholders of the company.

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PZ Cussons Plc, PZ Cussons Nigeria Plc

The Board of Directors of PZ Cussons Nigeria Plc has proposed the payment of N397.047 million to the shareholders of the company who currently hold the 3,970,477,045 fully paid ordinary shares of the company.

This disclosure was made public by the company in a notification issued and signed by the Company Secretary, Jacqueline Ezeokwelume, today the 7 January 2021.

She explained further that if the dividend of ten (10) Kobo per share recommended by Directors is approved by members at the Annual 72nd General Meeting, the dividend payments will be made on Monday, 1 February 2021.

What you should know

  • The Register of Members and Transfer Books of the Company will be closed from Monday, 11 January 2021 to Friday, 15 January 2021 (both dates inclusive) for the purpose of preparing an up-to-date Register of Members.
  • However, only shareholders whose names appear in the Register of Members and Transfer Books at the close of business on 19th October 2020 will receive the dividend on Monday, 1 February 2021.

What they are saying

Mr. Gbenga Oyebode, MFR, the Chairman of PZ Cussons Nigeria Plc, in his address said:

  • “Fellow shareholders, the Board of Directors is recommending to the shareholders at this AGM, a dividend pay-out of N397,047,700 representing 10 Kobo per share (2019: 15 Kobo per share). If approved, the dividend will be paid to shareholders on Monday, 1 February 2021 after deducting the appropriate withholding tax.”

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