The Nigerian Stock Exchange (NSE), in January this year, moved the minimum price floor from N0.50 to N0.10, and several penny stocks, mostly from the insurance space, soon fell to this price point. Perhaps in response to pressure from stakeholders, the floor has since been moved upwards to N0.20.
Here is a look at the lowest priced stocks currently on the exchange.
African Alliance Insurance Company Plc
The company was incorporated as a private limited liability company in 1960. It became a public liability company following the successful completion of the private placement exercise undertaken by the company in June 2008, and got listed on the NSE in September 2009.
African Alliance Insurance Company has a history of poor corporate governance. The company has consistently failed in submitting its annual reports on time and has thus been fined by the Nigerian Stock Exchange. In July 2017, the company was fined by the NSE for late submission of results.
In April 2018, the company was again fined by the NSE for late submission of reports.
The company’s most recent result, which are for the 9 months ended September 2017, shows that gross premium written fell from N12.9 billion in 2016 to N5.1 billion in 2017. The firm also made a loss after tax of N2.1 billion in 2017 as against a profit after tax of N1.3 billion made in 2017.
Shareholders in the company have suffered huge losses. From an initial listing price of N3.50, the company is currently trading at N0.20.
In essence, the shareholders have lost 94.2% of their original investment, if they had held since listing.
Yesterday, the stock closed at N0.20 on the Nigerian Stock Exchange session.
Courteville Business Solutions Plc
Courteville was incorporated as a private limited company on January 4, 2005 and commenced operations on that date. The company became a public one in 2008 and was quoted on the NSE in April 2009. On July 28, 2011, it changed its name from Courteville Investments Plc to Courteville Business Solutions Plc. The company’s activities include the development of business solutions and other e-commerce solutions.
Results for the 12 months ended December 2017 show that the company’s revenue dropped slightly from N1.13 billion in 2016 to N1.12 billion in 2017. Profit before tax, however, increased from N34 million in 2016 to N52 million in 2017. Profit after tax was largely flat at N36.8 million in 2017, compared to N36.8 million in 2017.
Courteville in 2009 listed 2.96 billion ordinary shares of 50 kobo each at N2.50 per share. At its current price of N0.20, shareholders have thus lost 92% of their value since listing.
FTN Cocoa Processors Plc
FTN Cocoa Processors was incorporated on August 26, 1991 in Nigeria as a private company limited by shares under the name Fantastic Abiola Nigeria Limited which later became Fantastic Traders Nigeria Limited on August 26, 1998. The company became a public limited liability company on February 29, 2008 and got listed on the NSE.
The principal activities of the company are the processing of cocoa beans and palm kernel into cocoa cakes, cocoa liquor, cocoa butter, palm kernel oil and palm kernel cakes for export and sales to local manufacturing companies.
Recent results for the 9 months ended September 2017 show that revenue fell sharply from N842 million in 2016 to N22.6 million in 2017. The company’s losses also widened from N263 million in 2016 to N463 million in 2017.
FTN Cocoa listed 2 billion ordinary shares of 50 kobo each at N2.50 per share.
At its current price of N0.20, investors have thus lost 92% of their investment since listing
Multiverse Mining & Exploration Plc
Multiverse Mining & Exploration Plc was incorporated as a Private Limited Liability Company, on June 20, 2002. It commenced business on April 1, 2005 and was converted to a Public Limited Liability Company on April 18, 2008. The company’s share was listed on the NSE on October 8, 2008.
The company is engaged in the business of exploring, extracting, prospecting, boring, refining, drilling, producing, and quarry mining of stones and other extractive solid minerals (mainly Lead and Zinc), into different configurations and classifications.
Results for the first quarter ended March 2018 show that revenue fell from N2.4 billion in 2017 to N1 billion in 2018. Losses however reduced from N174 million in 2017 to N53 million in 2018
For shareholders of the firm, investments made in the firm have to be one of the worst ever made. From a listing price of N1.80 per share, the company is currently trading at N0.20. In essence, investors have lost 88.8% of their investment since listing.
Unic Insurance Plc
Unic Diversified Holdings Plc is a new company that was incorporated on September 11, 2015, by the shareholders of the former Unic Insurance Plc (now Unic Insurance Ltd after being delisted) through the restructuring of Unic Insurance Group.
The restructuring arrangement involves the shareholders of the former Unic Insurance Ltd becoming the shareholders of Unic Diversified Holdings; they have thus become minority shareholders in the new firm.
Unic Insurance (formerly known as United Nigeria Insurance Company) was incorporated on April 1, 1965 and commenced operations on October 2, 1965. It became a public limited liability company on February 27, 1990.
Gold’s appeal up thanks to a weaker U.S dollar
More COVID-19 relief programs pushed the yellow metal’s appeal up as an inflation hedge.
Gold was up at Wednesday’s trading session, thanks to a weaker dollar coupled with statements from Janet Yellen, the incoming Secretary for the U.S Treasury, calling for more COVID-19 relief programs; these helped to push the yellow metal’s appeal up as an inflation hedge.
What you should know: At press time, Gold futures were up 0.51% at $1,849.60/ounce.
- The Secretary of the Treasury nominee made key statements during her Senate confirmation hearing held yesterday, where she discussed the economic gains of a large stimulus package that would far outweigh the risk of a higher debt burden.
- The greenback dropped for the third consecutive trading session after Janet Yellen said in her hearing that tax cuts enacted in 2017 for large companies should be reversed.
Stephen Innes, Chief Global Market Strategist at Axi, in a note to Nairametrics, spoke on the odds that the precious metal currently has amid a relatively strong greenback.
“Maximum stimulus overdrive, favorable to bullion turnaround in taper talk and slightly weaker dollar paint an encouraging backdrop for gold prices provided real rates oblige.
“Gold has been facing headwinds from a strong US dollar and higher real rates so far this year. The market is trying to hold the yellow metal above crucial support levels, which is encouraging,” Innes stated.
What to expect: However so far, gold has struggled to recover convincingly past the $1850 psychological level, and the 50dma around $1960 remains the ultimate target Q1 for gold bulls.
McCaleb, co-founder of Ripple sells 28.6 million XRP
McCaleb the co-founder of Ripple sold 28.6 million XRP — roughly $8.5 million
Crypto analyst, Leonidas Hadjiloizou, recently revealed via his Twitter handle that McCaleb, the co-founder of Ripple, sold 28.6 million XRP — roughly $8.5 million at the time of drafting this report — following 25 days of no sale activity after news broke of the Ripple SEC lawsuit.
Jed's Tacostand had paused XRP sales ever since the SEC lawsuit was announced. After 25 days of no sales, 28.6 million XRP was sold today. pic.twitter.com/XTMgmvDFZF
— Leonidas Hadjiloizou (@LeoHadjiloizou) January 18, 2021
At the time of writing this report, XRP traded at $0.288355 with a daily trading volume of $5.6 billion. XRP is down 1.09% for the day.
Recall that some days ago, Nairametrics revealed Ripple’s co-founder and one of the largest owners of XRP, Jed McCaleb, gained massively from selling XRP in 2020.
Despite Ripple’s legal troubles with the powerful American financial regulator, Jed McCaleb was able to gain $411 million in XRP sales throughout 2020, bringing his total gains from selling XRP to $546 million.
- It’s important to note that McCaleb left Ripple several years ago and went on to launch his own crypto company known as Stellar.
- As of the start of Q3 2020, he was selling an average of 1.74 million XRP daily which, at that time, was estimated to be worth $547,438.
According to Whale Alert’s research, the co-founder still owns 3.274 billion XRP.
Recently, XRP has been losing value at record levels since reports that the world’s most valuable crypto exchange, Coinbase, announced that it wouldn’t allow XRP trading, in response to the United States Securities and Exchange Commission taking legal action against Ripple.
Oil prices rally high on incoming COVID-19 relief program
Brent oil futures gained 0.68% to trade at $56.28 a barrel adding to yesterday’s 2.1% gain.
Oil prices were all fired up at mid-week trading session in London.
Holding on to their previous gains on reports that the incoming Joe Biden administration will offer more quantitative easing programs, boosted hopes for energy demand
What you should know: At press time, Brent oil futures gained 0.68% to trade at $56.28 a barrel adding to yesterday’s 2.1% gain. West Texas Intermediate futures rallied by 0.79% to trade at $53.40 a barrel, building on a 1.2% rise seen at the last trading session.
- Both major oil benchmarks stayed above the $50 mark.
- The Treasury Secretary nominee, Janet Yellen advised the U.S lawmakers in acting fast on COVID-19 support packages during her Senate confirmation hearing held yesterday.
Stephen Innes, Chief Global Market Strategist at Axi in a note to Nairametrics gave valuable insights on the mindset of energy traders in regards to Saudi’s recent cut and massive stimulus package on its way to financial markets stating;
“The energy markets are racing higher out of the gates in Asia aided by a lower dollar and hopes of a sizeable economic stimulus package from the Biden administration.
“Energy traders are packing in a chunky stimulus-response that might matter to investors from both a commodity and currency perspective where the US dollar could weaken to oil prices benefit since crude is priced in US dollars.
“The most favorable elixir of US stimulus and the imminent Saudi production cut bolstering efforts of OPEC+ to keep supply well below demand this year continue to help price action.”
What to expect: Ahead of presidential inauguration day, Oil traders offer up a Biden policy seal of approval on the agenda’s sequencing with vaccinations plus stimulus now and taxes later, to drive risk through the first half of 2021.