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These 4 companies are now trading below 50 kobo per share

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The first day of the  newly adjusted par value rule seems to have gone on smoothly, as the All Share Index closed positive at 1.22%. The minimum value at which a stock trades has been moved from 50 kobo to 1 kobo per share.

While several stocks fell below the 50 kobo floor, 4 stocks closed at 48 kobo. Here is a brief breakdown of the stocks.

 

ABC Transport

ABC Transport closed at N0.48 kobo down by N0.02 or 4%. 101,000 shares were traded in 2 deals. ABC Transport was incorporated in April 1993, but became a public company in 2005. The company is into road passenger transportation, cargo business, haulage and hospitality services.

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Results for the half year ended June 2017 show revenue dipped from N3.7 billion in 2016 to N3.3 billion in 2017. The company swung from a loss of N333 million in 2016 to N330 million in 2017.

 

Lasaco Assurance

Lasaco Assurance closed at N0.48 kobo down N0.02 or 4%. 120,000 shares were traded in 3 deals.

Lasaco, then known as Lagos State Assurance Company Limited obtained a License as an Insurer on 7th July 1980 and commenced business operations on 1st of August 1980. It became a public limited liability company in 1991 when it was listed on the Nigerian Stock Exchange.

Results for the 9 months ended September 2017 show Gross Premium increased from N4.9 billion  in 2016 to N5.7 billion in 2017. Profit before tax fell from N917 million in 2016 to N553 million in 2017.

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Prestige Assurance

Prestige Assurance also closed at N0.48 down by N0.02 or 4%. 108,000 shares were traded in 2 deals.

Established in 1952 as a branch office of The New India Assurance Company Limited, Mumbai. Prestige Assurance was incorporated as a limited liability company on 6th January 1970 and licensed to write all classes of Non-life insurance in Nigeria

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The company’s name was changed to Prestige Assurance Plc on 24th September 1992, in line with the indigenization decree passed by government of Nigeria. After successful recapitalization in 2007 and subsequent Rights issue in 2015, Prestige Assurance Plc currently operates as a subsidiary Company of The New India Assurance Company Ltd, Mumbai with 69.5 percent shareholding.

Results for the 9 months ended September 2017 show Gross Premium Written increased from N1.8 billion in 2016 to N2.4 billion in 2017. Profit before tax also increased from N385 million in 2016 to N580 million in 2017.

Royal Exchange Assurance

Royal Exchange Assurance closed today’s trading session at N0.48 down N0.02 or 4%. 5.9 million shares changed hands in 22 deals.

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Royal Exchange commenced operations in Nigeria in 1918 represented by Barclays Bank DCO and in 1921 converted to a full branch of its then parent company, Royal Exchange Assurance, London.

The company was incorporated as a private limited liability company on 29 December 1969. It was converted to a public company on the 15th of July 1989, and listed on the Nigerian Stock Exchange on 3rd December 1990.

For the 9 months ended September 2017, Gross Premium increased from N10.8 billion in 2016 to N11.3 billion in 2017. Profit before tax also increased from N274 million in 2016 to N343 million in 2017.

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]

Commodities

Five oil majors reduce value of their assets by $50 billion in Q2

Energy demand at one point was down by more than 30% globally.

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Five oil majors reduce value of their assets by $50 billion in Q2

Five oil majors (including Exxon Mobil and British Petroleum) reduced the value of their assets by $50 billion in Q2, 2020. They also reduced their production rates as the COVID-19 pandemic caused a downward trend in energy demand.

What this means: The cut in asset valuations and reduction in crude oil production by these oil majors showed the depth of damage the COVID-19 pandemic caused on the global energy sector in Q2, 2020.

Energy demand at one point was down by more than 30% globally and still remains below pre-pandemic levels.

READ MORE: Respite for Nigeria as Exxon Mobil and Shell lose $1.8 billion arbitration award  

Some of these conpanies’ executives said they took these austerity measures because they expect demand to continue to be on the downward trend in the meantime. This is in view of the fact that people around the world are traveling less, even as many global industries are not in full capacity. The pandemic has already killed more than 700,000 people.

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Of those five oil majors, only Exxon Mobil (XOM.N) did not book sizeable impairments, Reuters reported. However, an ongoing re-evaluation of Exxon Mobil plans could lead to a reasonable amount of its assets being impaired, and signal the removal of 20% or 4.4 billion barrels of its oil and gas reserves.

READ ALSO: Oil prices drop to 21-year low as demand and storage crises persist

Oil major BP (BP.L) took a $17 billion hot. It said its plans in the coming years would be a focus on renewables and fewer fossils.

About two weeks ago, Nairametrics reported how Exxon Mobil and Chevron posted their worst losses in modern history, as the COVID-19 pandemic and a glut in crude oil reduced the demand for energy products in the second quarter of 2020.

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Currencies

Exchange Rate Unification: CBN devalues official rate to N380/$1

The CBN has devalued the official exchange rate for the second time this year.

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Exchange Rate Unification: CBN devalues official rate to N380/$1, Nigerian banks have written off N1.9 trillion impaired loans in past 4 years, CBN sandbox operations, Stirling Trust Company Limited

Information on the website of the central bank reveals the CBN has adjusted the official exchange rate to N380/$1 from N360.1/$1. The adjustment occurred on Thursday August 6th 2020.

This suggest the CBN may have unified the exchange rate in line with the promise made by Godwin Emefiele, the Governor of the Central Bank of Nigeria.

CBN: Devalues Exchange Rate.

In the data seen by Nairametrics, the Central Bank priced the official exchange rate as follows;

READ MORE: Exchange rate gains big at NAFEX as forex turnover pops 916%

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Current (Previous)

Buy- N379 (N360)

Central – N379.5 (N360.5)

Sell – N380 (N360.1)

There were no official press releases explaining the reason for the devaluation or adjustment as the central bank likes to call it. This is now the second devaluation of the official exchange rate after the rate was adjusted from N307 to N361 on the 20th of March 2020. The CBN has also adjusted the exchange rate for the SMIS window.

READ MORE: IMF list unpopular policies CBN must reverse

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Exchange Rate Unification?

In June, the CBN Governor Godwin Emefiele assured investors in June that the CBN will unify the exchange rate around the NAFEX rate in line with the conditions of the world bank.

“We will continue to pursue unification around the NAFEX Market”.  Emefiele

However, this has taken longer that required and may have resulted in the postponement of a planned world bank meeting where an approval of the initial $3 billion loan from the world bank would have been obtained in September and October for the Federal and State Governments respectively.

One of the conditions for the disbursement of the loan was a unification of the exchange rate which most analysts believe the CBN has dithered on for months.

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READ MORE: BOOM: Nigeria’s total debt portfolio hits at N27.4 Trillion

Nigeria’s exchange rate at the NAFEX closed at N386/$1 on Friday a N6 premium from the Central Bank’s buy rate. However, this is closer when compared to the N26 disparity when the exchange rate was N360/$1.

The latest adjustment however indicates this could be the CBN’s biggest move yet at exchange rate unification as the rate is closer to if not the same with the N380/$1 announced in July for the SMIS window.

READ ALSO: Bitcoin robbers are cashing in as they transfer $7 million worth of BTCs

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World Bank debacle

The World Bank committee working on the loan was meant to present to their board on August 6th 2020 but it appears this has now been moved to a latter date. Critics suggest this may have been due to the delay to meet conditions precedent to granting the initial $1.5 billion loan some of which incudes the $1.5 billion loan.

“The amount we are raising in the first instance is $1.5 billion for FG and around September October we are hoping to close out on the facility meant for states and the amount is meant to be $1-1.5 billion.” Ahmed

According to Zainab Ahmed, the Minister of Finance  Nigeria was raising “in the first instance is $1.5 billion for FG and around September October we are hoping to close out on the facility meant for states and the amount is meant to be $1-1.5 billion.” The implication of the delay in obtaining the loans suggest states banking on the world bank facility will not have to wait beyond October should the world bank refuse to reconvene next week.

 

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Cryptocurrency

CHAINLINK now sixth most valuable crypto, keeps setting new highs

Chainlink presently stands as the sixth most valuable crypto asset valued at $4.65 billion dollars.

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100% of Chainlink (LINK) wallets are now in profit

Chainlink (LINK) price continues to set new records as the DeFi-related token reaches a new all-time high close to the $13.5

Over the last 24-hours, LINK has surged as high as $13.46 on a leading crypto analytic tracker, Coingecko.

Chainlink presently stands as the sixth most valuable crypto asset valued at $4.65 billion dollars.

Recall that Nairametrics had previously given  an in-depth insight on how Chainlink (LINK), against all odds, joined the top 10 most valuable cryptocurrencies by market capitalization. This followed heightened interest by crypto traders and investors for the digital coin over the last several weeks.

READ MORE: LINK, most profitable crypto-asset in 6 months, gains 451%

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Time to sell?

A renowned crypto trader, Benjamin Blunts, posted on Twitter saying he would rather prefer to wait for LINK’s price to go up a bit higher before considering selling. He said:

“I actually would be inclined to start looking for shorts soon, however, it seems my entire feed is doing the same. so I will wait for another push higher I think, not really interested in standing in front of the strongest, fastest horse right now.”

READ ALSO: Bitcoin whale transfers 92,857 BTC worth $1.1 billion

READ MORE: Ripple has released 1 billion XRP; here’s what this means

Quick fact: Chainlink is a blockchain that is designed to bridge the space between blockchain technology-based smart contracts (created by ETH), and other user programs. Since blockchains by principle can’t have access to data outside their paths or networks, a defi instrument is needed to facilitate data feeds in smart contracts, and Chainlink helps to solve such needs.

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It should also be noted that about a year ago, Chainlink announced that Google was integrating Chainlink into their approach to smart contract adoption on how users could use Chainlink to connect to BigQuery, one of Google’s most popular cloud services.

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