Markets
Corporate Actions: A fire quenched and a change of guards
Corporate actions are decisions taken by companies’ boards of directors, or management teams, that could have an impact on the firms themselves or shareholders.
Examples of corporate actions include the payment of dividends, closing of shareholders’ registers, announcing qualification dates and Annual General Meeting (AGM) dates.
Here is a review of corporate actions that took place last week, and those scheduled for this week.
Corporate Actions for last week
A Fire quenched
AIICO Insurance Plc held an Extraordinary General Meeting (EGM) on Friday. After a heated start (in part due to shoddy seating arrangements), shareholders approved a N5.28 billion private placement. The company took the step in a bid to meet tier one status for the now-suspended tier based recapitalization programme.
PZ Cussons Nigeria
PZ Cussons Nigeria held its Annual General Meeting (AGM) on the 4th of October, 2018. The company is yet to release resolutions agreed at the meeting.
Change of guards at Union Bank
Union Bank Plc announced the retirement of its Chief Financial Officer (CFO) Oyinkansade Adewale. Her retirement took effect from the 30th of September, 2018.
The company also announced Joseph Mbulu as her replacement effective October 1, 2018. His appointment is, however, subject to the approval of the Central Bank of Nigeria (CBN).
Wema Bank Plc
Wema Bank Plc announced that Johnson Lebile had been appointed as the new Company Secretary/Legal Adviser of Wema Bank Plc, following the redeployment of the incumbent, to head the Lagos Business Group.
Johnson Lebile assumes the new role effective, October 2, 2018. Prior to this appointment, Johnson was the Head, Legal Services Department of Wema Bank Plc, a role he held since 2009.
Morrison Industries Plc
Morrison Industries Plc held its Annual General Meeting (AGM) on the 4th of October, 2018.
Berger Paints Plc
Berger Paints Plc will hold a board meeting on October 25, 2018 to consider its results for the third quarter ended September 30, 2018.
The company has also commenced a closed period from October 20, 2018 till October 26, 2018.
Seplat Petroleum Development Company Plc
Seplat Petroleum commenced a closed period from 2nd October 2018 to end on 31st October 2018 after the release of the Q3 2018 Financial Results for the period ended 30th September 2018.
Dangote Cement Plc
Dangote Cement Plc announced its intentions to hold a board meeting on October 19, 2018. On its agenda, is the consideration of its results for the quarter ended September 2018.
It has also commenced a closed period on October 4, 2018, until a day after it releases its results.
Access Bank Plc
Access Bank Plc sent a notice to the NSE this week, regarding a board meeting to hold on October 30, 2018. Agenda isto consider the bank’s results for the quarter ended September 2018.
The bank also commenced a closed period on October 5, 2018. During a closed period, insiders with access to sensitive information cannot trade their shares.
CAP Plc
CAP Plc will hold a board meeting on October 19, 2018, to consider the company’s results for the quarter ended September 2018. The company has also commenced a closed period from October 4, 2018, to October 31, 2018.
Diamond Bank Plc
Diamond Bank Plc will hold a board meeting on October 18, 2018, to consider its results for the quarter ended September 30, 2018. The bank also commenced a closed period from October 3, 2018, till the results are released.
STACO Insurance gives an update on its results
STACO Insurance Plc sent a notice to the NSE regarding a delay in the filing of its 2017 full year results. According to the firm, industry regulator, NAICOM, had flagged certain issues with the results and the company was resolving them.
Corporate Actions taking place this week
LASACO Assurance Plc
LASACO Assurance Plc will be holding an Extraordinary General Meeting (EGM) on the 10th of October.
Manufacturing
Industrial Index loses -12.39 points, as BUA and Lafarge Cement shares top losers list
The NSE Industrials index lost 12.39 index points in the first trading week in the month of April.
The Nigerian Stock Exchange Industrial Index at the close of trading activities for the first week in the month of April closed on a bearish note, following a 0.66% decrease in the shares of BUA CEMENT and Lafarge.
At the close of trading activities on the Nigerian Stock Exchange on the 9th of April 2021, the industrial index depreciated by 55.01 index points, to close lower at 1,928.18 index points for the week.
When compared to the overall performance of the market, the NSE Industrial index underperformed, noting that the NSE All-Share Index and Market Capitalization depreciated by 0.66% to close the week at 38,866.39 and N20.3350 trillion respectively.
READ: COVID-19, VAT, FX scarcity adversely impacted our operations in 2020 – Nigerian Breweries boss says
What you should know
The NSE Industrial Index was designed to provide an investable benchmark to capture the performance of the Industrial Sector. It comprises the most capitalized and liquid companies in the industrial sector and is based on the market capitalization methodology.
The index tracks the performance of ten industrial companies on the Nigerian Stock Exchange which includes Dangote, BUA, and Lafarge Cement.
The overall performance of the companies for the week was bearish, as the index closed on a negative note driven by the decrease in the share price of BUA Cement and Lafarge.
MEYER (19.51) was the only gainer for the week, while BUACEMENT (-1.09%) and LAFARGE WAPCO (-3.00%) were the only losers for the week.
GAINER
- MEYER up by19.51% to close at N0.49.
LOSER
- WAPCO down by -3.00% to close at N21.00.
- BUACEMENT down by -1.09% to close at N72.70.
Consumer Goods
Consumer goods index gains 6.16 points, driven by gains in Nestle, Flourmills and Honeywell shares
The NSE Consumer goods index gained 6.16 index points following gains in the share prices of Nestle, Flourmills and Honeywell.
The Nigerian Stock Exchange Consumer Goods Index (CGI), a market index that tracks the performance of consumer goods companies, gained a total of 6.16 index points, to close the first week of active trading in April at 556.03 index points following the gains in the shares of Nestle, Flour Mills of Nigeria and Honeywell Flour Mills.
A preview of the index performance for the week revealed that at the close of trading activities on Friday 9th of April 2021, the NSECG index appreciated by 1.12% to close the week higher at 556.03 index points, from 549.87 index points at the open of trade for the week.
In line with this, the index gained a total of 6.16 index points at the close of trade for the week.
READ: Three consumer goods stocks that beat Nigeria’s 17.33% inflation rate
The index performed better when compared to the market index, noting that the All-Share Index and the market capitalization depreciated by 0.13%, to close the week at 38,866.39 and N20.335 trillion respectively.
READ: Flour Mills shares surge by 6.9%, lifting the miller’s capitalization by N8.2 billion
What you should know
- The NSE Consumer goods Index was designed to provide an investable benchmark to capture the performance of companies in the consumer goods sector. The index comprises the most capitalized and liquid companies in food, beverage, and tobacco.
- The index is based on the market capitalization methodology, as it tracks the performance of fifteen consumer goods companies on the Nigerian Stock Exchange which includes, Nestle, Nigerian Breweries (NB), Dangote Sugar, and International Breweries.
- The overall performance of the companies was relatively bullish, as the index closed on a positive note, 6.16 index points higher.
- FLOURMILLS (6.90%) led the gainers’ chart, followed by HONYFLOUR (4.24%), while GUINNESS (-17.27%) topped the losers list, followed by CADBURY (-3.03%).
READ: PZ Cussons shares lose N3 billion in three sessions on NSE
Top gainers
- FLOURMILLS up by 6.90% to close at N31.00.
- HONYFLOUR up by 4.24% to close at N1.23.
- NESTLE up by 3.27% to close at N1420.
Top losers
- GUINNESS down by -17.27% to close at N29.70.
- CADBURY down by -3.03% to close at N8.00.
- INTBREW down by -1.72% to close at N5.70.
- CHAMPION down by -1.33% to close at N2.22.
