The Nigerian Stock Exchange (NSE) yesterday placed the shares of the following companies on full suspension.
1) African Alliance Insurance Plc
2) Cornerstone Insurance Plc
3) R. T. Briscoe Plc
4) Royal Exchange Plc
5) STACO Insurance Plc
6) Standard Alliance Insurance Plc
7) Universal Insurance Company Plc
8) Veritas Kapital Assurance Plc
The NSE also stated that the suspension would only be lifted upon the submission of relevant accounts, which complied with all applicable rules of the Exchange.
Full suspension means there will be no trading in the company’s shares, and their share prices will be frozen.
Usual suspects abound
Some of the suspended firms are perennial offenders. African Alliance Insurance has been suspended several times in the last few years.
An X compliance report released in April this year, revealed the company was fined N46.1 million in 2017. The company in July 2013 was among several firms fined by the NSE for late submission of their audited results.
In July 2017, the company once more fell under the NSE hammer as it was suspended for non-submission of its audited results. It blamed the delay in the submission of results on a delay by a foreign subsidiary, which was yet to release its results.
Signs of a deeper issue
The non-release of their results are a sign some of the companies are struggling. Most recent results by R.T Briscoe for the 9 months ended September 2017 show the firm made a loss after tax of N1.7 billion.
The company also has negative retained earnings of N8.5 billion and negative cash flow. In essence, it is surviving on bank loans.
African Alliance Insurance ‘s most recent results for the 9 months ended September 2017 show it made a loss after tax of N2.1 billion and negative retained earnings of N24.8 billion.
Universal Insurance, a sister company to African Alliance has also performed poorly. The company made a loss after tax of N237 million for the half year ended June 2017. Universal also has negative retained earnings of N2.9 billion as at June 2017.
African Alliance Plc was incorporated as a private limited liability company in 1960. The company became a Public Liability Company following the successful completion of a private placement exercise in June 2008.
Investors are perhaps better off avoiding these companies pending when their suspension is lifted and they publish their most recent results. Being suspended also means you cannot purchase their stock and can’t sell either.
United Capital Plc CEO purchases additional 1.5 million shares worth N8.03 million
Mr. Ashade has spent the sum of N8.03 million on the purchase of additional 1.5 million shares United Capital Plc.
The CEO of United Capital Plc, Mr. Peter Ashade has maintained a 3-month buying streak, acquiring an additional 1.52 million units of the firm’s shares worth N8.03 million.
This is according to a recent notification signed by the firm’s secretary, Leo Okafor and forwarded to the Nigerian Stock Exchange market today, as seen by Nairametrics.
The recent transaction which took place on January 20, 2021 saw the United Capital boss purchase an additional 1,515,092 units of the firm’s share at N5.30 per unit, totalling N8,029,987.60.
Nairametrics gathered that the recent transaction will raise the total number of shares purchased by the CEO in the last three months by an additional 4,669,387 units.
What you should know:
- Nairametrics earlier reported the purchase of an additional 1.28 million units of United Capital Plc shares by its CEO, Peter Ashade and the CFO.
- Ashade had earlier purchased an additional one million units of the company’s shares, worth N5.17 million.
- As at the time of reporting this, United Capital Plc share price ended trading at N5.39, down by 0.19%.
- The report of the recent transaction is in line with NSE policy on insider transactions.
January 2021 FGN Bond records oversubscription of N88.3 billion
FGN bond offer has received a total bid of N238.28 billion across all tenors.
The January 2021 FGN bond offer has received a total bid of N238.28 billion across all tenors, indicating it was oversubscribed by approximately N88.3 billion.
This fact was implicitly revealed through a disclosure by the Debt Management Office (DMO), seen by Nairametrics.
Nairametrics had earlier reported the offering of N150 billion worth of FGN bonds by the Debt Management Office for January 2021. In line with the notice, the auction occurred on the 20th of January, 2021 (yesterday).
The following are the key highlights of the 2021 FGN bond auction;
- A total of N91.84 billion was submitted for the 10-Year tenor worth N50 billion, implying that it was oversubscribed by N41.84 billion.
- The 15-Year tenor recorded a total subscription of N106.37 billion, implying an oversubscription of N56.37
- On the other hand, the 25-Year tenor was undersubscribed by N9.93 billion, after it recorded a total subscription of N40.07 billion.
What you should know
- Recall that the December 2020 FGN bond offer was oversubscribed by more than N70 billion, as reported by Nairametrics.
- Nairametrics learnt that the oversubscription is sequel to higher rates across all tenors for January 2021, at 7.98%, 8.74% and 8.95% for the 10-Year, 15-Year and 25-Year period respectively, compared to the rates of 6.945% and 7.00% for the 10-Year and 15-Year tenors at the last auction in December 2020.
Lafarge gains N111.1 billion on NSE in 14 trading sessions
The cement manufacturer gained an additional N1.45, thus extending year-to-date gains on the NSE to N111.1 billion.
Lafarge Africa Plc continues the streak of gains on the Nigerian Stock Exchange (NSE) today, as shares of the cement manufacturer gained an additional N1.45, thus extending year-to-date gains on the NSE to N111.1 billion.
This was uncovered by Nairametrics after tracking the performance of the shares of the company on the floor of the Nigerian Stock Exchange, from the open of trade on the 4th of January 2021, till the close of trade today on The Exchange.
A preview of the performance of the cement manufacturer on NSE revealed that the shares of the company which opened trading activities this year at N21.05 per share have rallied by 32.78% at the back of renewed investors’ buying interests, to set a 52-week record high price N27.95 at the end of today’s trading session.
Checks by Nairametrics revealed that Lafarge has gained N111.1 billion on NSE this year, as investors continue to bid the shares of the company higher, owing to the robust valuations of the company and its fundamental strength which has made the company investors’ delight at the current price.
It is important to note that the buying interest in Lafarge shares saw the market capitalization of the company increase from N339.1 billion to N450.2 billion alone this year.
What you should know
- At the end of today’s trading session, Lafarge gained an additional N1.45 per share, which translates to 5.47% increase, thus driving the shares of the company to close at a record 52-Week high price of N27.95, with 22.65 million shares of the company worth over N620.53 million, exchanged in 439 deals.
- Nairametrics reported that the Board of Lafarge Africa Plc resolved to sell off its 35% shareholding in Continental Blue Investment Ghana Limited, in order to cut down on costs impacting the Group’s profitability.