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THE WEEK AHEAD: Dividends, marked downs, results
This is a recap of stocks that were marked down the previous week, and an outlook on stocks to be marked down this week.
The following companies were marked down for dividend payments last week.
Julius Berger Plc
Julius Berger Plc was marked down by N1 following a dividend payment. Previous dividend payment price was N26.55.
LASACO Assurance Plc
LASACO Assurance was marked down by N0.04. Ex-dividend price was N0.34.
NPF Microfinance Bank Plc
Nigerian Police Force Microfinance Plc was marked down by N0.17. Ex-dividend price was N1.76.
B.O.C. Gases Plc
B.O.C Gases was marked down by N0.20. Ex-dividend price was N4.43.
N.E.M Insurance Plc
N.E.M Insurance was marked down by N0.10 following a dividend payment. Ex-dividend price was N2.46.
Companies having corporate actions this week
Cadbury Plc
Cadbury Nigeria Plc will be closing its register from Monday, the 11th of June to Friday, the 15th of June, 2018.
The stock may not witness much traffic, despite a proposed dividend of N0.16 per share. 74% of the company’s issued share capital is held by Cadbury Schweppes Overseas Limited, which is ultimately controlled by Mondelez International.
CAP Plc
Paint maker, CAP Plc, which is a subsidiary of UAC of Nigeria Plc, will be holding its Annual General Meeting (AGM) on the 13th of June, 2018. Dividend payment, if approved by shareholders, will take place on the 14th of June, 2018.
AGMs provide an opportunity for management to inform investors of the company’s outlook for the rest of the year and any other pertinent information.
50% of CAP’s issued share capital, amounting to 350,652,700 shares, is held by the parent company, UACN.
The stock is a favourite for PFAs and other institutional investors, hence, not much volatility in trading is expected. The stock is up 8.24% year-to-date, showing little price appreciation.
Beta Glass Plc
Beta Glass Plc has its qualification date on the 15th of June, 2018. Investors who buy the stock 3 days before the specified date will qualify for dividends. The company is up 70.24% year-to-date. Significant upside at current market sentiments are unlikely.
Beta Glass is on Nairametrics’ list of stocks to watch in June.
Okomu Oil Palm Company Plc
Okomu Oil will be holding its Annual General Meeting (AGM) on the 13th of June, 2018. Payment, if approved, will take place on the 25th of June.
Capital Hotels Plc
Capital Hotels Plc will be closing its shareholders register from Monday, the 11th to Friday, the 15th of June, 2018.
Mutual Benefit Assurance Plc
Mutual Benefits Assurance has Wednesday, the 13th of June, 2018, as its qualification date. Closure of its register will take place between, Thursday, the 14th of June to Wednesday, the 20th of June, 2018.
The stock has topped the gainers’ chart in the past few weeks on the back of the dividend being its first in nearly a decade. Gains have since tapered down.
Conoil Plc
Conoil Plc has the 14th of June, 2018, as its qualification date. Investors holding the stock on this date will qualify for dividends.
The stock tends to witness significant appreciation once dividends are declared. Year-to-date, the stock is up 14.29%.
FEATURED
Official: Nigerian Treasury bills calendar for Q3 2020
Official: Nigerian Treasury bills calendar for June – August 2020
The Central Bank of Nigeria (CBN) Published its Treasury Bills program for June to August 2020, indicating that it plans to raise about ₦821.8 billion in cash.
Check out: CBN says commercial banks can invest in Treasury Bills for now(Opens in a new browser tab)
The Central Bank sells treasury bills on a bi-weekly basis to investors and is one of the safest investments available. Interests are paid upfront and the principal paid in full upon maturity.
Learn to invest in treasury bills here
3rd quarter of 2020
READ ALSO: Manufacturing PMI slide into recession territory
2nd quarter of 2020
READ ALSO: $14 billion Dangote Refinery: uncertainty surrounds take-off
1st quarter of 2020
READ MORE: UPDATED: Nigeria received $5.85 billion capital inflows in Q1 2020 –NBS
4th quarter of 2019
Business News
Precious metals slump, investors focus on Central Bank’s intervention
Gold fell on Friday morning to $1,717.10. as global investors await the release of Friday’s U.S non-farm payrolls data for May
Spot gold went slightly lower, trading at $1,711.57 per ounce by 4 am local time on Friday morning and gold futures was down to $1,717.10.
“Gold collapsed like a house of cards as investors overlooked civil unrest in the United States and heavily focused on hopes around central bank intervention and economic recovery,” said Lukman Otunuga, senior research analyst at FXTM.
READ MORE: Why the NNPC wants $5 billion advance payments for Nigeria’s crude
Gold fall on Friday morning also came as global investors await the release of Friday’s U.S (United States.) non-farm payrolls data for May, scheduled to be released at 1.30 pm Nigerian local time.
“There are quite a few market participants still bargain-hunting gold given the fundamental backdrop of the coronavirus crisis and ongoing recession,” Julius Baer analyst Carsten Menke said.
(READ MORE: Gold prices surge by 17.4% in 2 months due to global economic crisis)
However, investors are still waiting to see whether the easing of restrictions will lead to a second wave of infections, supporting demand for gold, Menke added.
What you need to know about Precious metals: Precious metals include gold, silver, and platinum. Gold and silver are the most popular metals, and have been used by jewelers, and as wealth status symbols since ancient times. Global investors use precious metals to hedge against inflation.
READ ALSO: Global oil market to re-balance in 2 months’ time
Meanwhile, palladium gained 0.34% to $1,947 an ounce, while platinum lost 0.31% to $833.91. Silver was down 0.63% to $17.9 4am local time, having hit a more than three-month high of $18.36 on Monday.
“Some people are buying silver just because it’s much cheaper than gold (or) platinum,” a trader from Tokyo-based retailer Tokuriki Honten said.
Billionaire Watch
The rich get richer in May
The gradual easing of the lockdown, which started on May 1, appears to have brought some relief to these men, giving them room to recover some of the earlier losses.
The news of the lockdown hit raw nerves across all sectors in Nigeria. One thing that was obvious from the onset was that everyone was going to be hit somehow, but what no one could say for sure, was how.
Nairametrics had earlier examined the first 12 weeks of COVID-19 in Nigeria, and found that Nigeria’s billionaires lost billions between February and April. However, the gradual easing of the lockdown which started on May 1, appears to have brought some relief to these men, giving them room to recover some of the earlier losses.
Jim Ovia
Zenith bank founder Jim Ovia is the largest individual shareholder with 3,546,199,395 direct shares and 1,513,137,010 indirect shares.
Zenith bank closed April at N14.3, putting the value of Ovia’s total 5,059,336,405 shares at N72,348,510,591.5 (N72.35 billion).
During the month of May, the share appreciated by 18.2%, and was worth N16.9 at the end of trading on May 29.
With this, the worth of Ovia’s 5,059,336,405 shares increased by N13.15 billion to N85,502,785,244.50.
The volatility of the shares in the previous quarter had seen the billionaire lose about N21.2 billion, but May 2020 sure gave him a chance to recover some of this.
READ ALSO: Forbes 2020 world’s richest rankings: Only 4 Nigerians make exclusive billionaires list
Herbert Wigwe
Group MD/CEO of Access Bank, Herbert Wigwe, has 201,231,713 direct shares and 1,184,680,195.5 indirect shares with the bank, totalling to 1.39 billion shares.
At N6.60 per unit, the total shares were worth N9.15 billion (N9,147,018,596.1) on April 30.
Access bank stocks moved upwards to N7.1, bringing the worth of the stocks to N9.84 billion (N9,839,974,550.35).
Wigwe’s stock value gained N692.96 million, a mild compensation for losing N2.22 billion in the first 12 weeks of COVID-19 presence in Nigeria.
READ MORE: Herbert Wigwe sells 28.8 million Access Bank shares
Aliko Dangote
Dangote Cement shares were worth N130 at the end of April, having had a rough first quarter. However, the price improved over the next four weeks and ended May 29 at N139 per unit.
Aliko Dangote directly owns 14,500,315,501 shares in Dangote Cement Plc, as well as 27,642,637 shares which he controls through Dangote Industries Limited.
All 14,527,958,138 shares were worth N1.88 trillion (N1,888,634,557,940) on April 30, and the value increased to N2 trillion (N2,019,386,181,182) by May 29, an increase of N130 billion (N130,751,623,242).
A similar trend is also seen in Dangote Sugar where share price increased from N12.45 on April 30 to N12.90 at the close of trading on May 29.
The billionaire directly owns 653,095,014 shares and indirectly owns 8,122,446,281 shares through the Dangote Industries Limited in Dangote Sugar, summing up to 8.77 billion shares.
All shares were worth N109 billion (N109,255,489,123) on April 30, and appreciated through the month of May to close at N113 billion on May 29.
From the increase in the market share price of Dangote Sugar, Aliko Dangote became N3.9 billion (N3,948,993,583) richer.
Summing up the gains in Dangote Cement and Dangote Sugar, we can see that the billionaire added another N134.7 billion (N134,700,616,825) to his worth.
This article does not include calculations for NASCON. Aliko Dangote is not listed on the board, hence, there is no way to confirm the exact amount of stocks he owns in the company.
However, NASCON allied shares were worth N10.05 on April 30 and made a 10.4% increase to N11.10 by May 29.
READ MORE: Dangote: The King cement maker moving against all odds
Tony Elumelu
The popular TOE, as he is called, controls a total of 2,304,211,118 units of shares – 190,100,234 direct and 2,114,110,884 indirect shares.
UBA’s shares tried to regain losses from earlier months, and moved from N6.05 on April 30 to N6.65 on May 29.
The total worth of Elumelu’s 2.3 billion shares appreciated from N13,940,477,263 on April 30 to N15,323,003,934 on May 29, giving the billionaire an additional N1.38 billion (N1,382,526,670.8).
Compared to the N1.49 billion lost in the preceding 12 weeks, Elumelu clearly recovered most of the earlier losses.
Abdulsamad Rabiu
The merger of CCNN and Obu cement gave birth to BUA cement. The 2019 financials from the company shows that Rabiu owns 19 billion (19,044,995,225) direct shares.
He also has indirect shareholdings through 3 companies, totalling to 12.2 billion (12,225,657,346) units.
BUA cement stocks ended April 30 at N32.60 and appreciated by 28% to N42 per unit at the close of trading on May 29.
By April 30, Rabiu’s 31.27 billion shares (direct and indirect) were worth N1.01 trillion (N1,019,423,273,814.60) at N32.6 per unit, and by the end of trading on May 29, the market value of the same shares had risen to N1.31 trillion (N 1,313,367,407,982.00).
The billionaire’s worth added N293.94 billion (N 293,944,134,167.40) representing a 28% gain, and making him the highest billionaire gainer in the period under review.
Mike Adenuga
As Chairman of Conoil Nigeria Plc, Mike Adenuga directly controls 516,298,603 units of shares, as well as 103,259,720 units of shares controlled through Conpetro Limited, making for about 74.4% of Conoil’s issued share capital.
Conoil’s stock prices closed at N17.4 on April 30, putting the value of Adenuga’s indirect shares at N1.79 billion (N1,796,719,128), and his direct shares at N8.9 billion (N8,983,595,692.2), totalling to N10.78 billion.
Conoil gained 20.7% in May, and ended at N21 per unit share at the end of trading on May 29.
With this, the total shares were worth N13 billion; direct – N10,842,270,663 and indirect – N 2,168,454,120.
After losing N371 million in the preceding 12 weeks, it must have been refreshing to gain some N2.23 billion in four weeks.
Austin Avuru
However, the month of May was not profitable for the co-founder of Seplat, Austin Avuru, who indirectly owns about 58,970,463 indirect shares in the oil and gas company.
A stock price of N494.4 as at April 30 showed that these stocks were worth N29.15 billion (N29,154,996,907.2).
At the share price of N476.4 on May 29, Austin Avuru’s shares were worth N28,093,528,573.20.
He lost another N1.06 billion, after an earlier loss of N6.5 billion between February to April.
In all, Seplat stocks have fallen some 28% from January till May 29. Sad loss for Avuru.
|
Billionaire
|
Gain (N’billions)
|
% gains
|
|---|---|---|
|
Aliko Dangote
|
134.7
|
6.74%
|
|
Tony Elumelu
|
1.38
|
9.9%
|
|
Jim Ovia
|
13.15
|
18.2%
|
|
Herbert Wigwe
|
0.69
|
7.6%
|
|
Austin Avuru
|
-1.06
|
-3.6%
|
|
Mike Adenuga
|
2.23
|
20.7%
|
|
Abdulsamad Rabiu
|
293.94
|
28%
|
kingsley
June 12, 2018 at 9:32 am
Why does NSE mark down share price after dividend? ..And what informs how much a share is marked down?