The Nigerian Stock Exchange shed some of the huge gains made on Monday’s trading session. The All Share Index closed at 31,692.63 basis points, down 0.86%. Year to date, the index is down 17.13%.
Top Gainers and Losers
Conoil was the best performing stock today. The stock gained 10% to close at N23.10. Mutual Benefits Assurance was next, also gaining 10% to close at N0.22. NPF Microfinance Bank rounds up the top three gainers, appreciating by 10% to close at N1.65
On the flip side, UAC of Nigeria was the worst performing stock today. The stock shed 10% to close at N10.18. NEM Insurance declined by 9.15% to close at N2.68. Niger Insurance fell by 8.33% to close at N0.22.
Large Trades by Volume
Medview Air was the most actively traded stock today. 146 million shares valued at N293 million were traded in 3 deals. NEM Insurance was next with 45.9 million shares valued at N135 million were traded in 12 deals. Transcorp Plc rounds up the top three trades with 37.5 million shares valued at N48.9 million traded in 182 deals.
Diamond Bank today announced the appointment of Dele Babade as Acting Chairman. Babade who was appointed to the board in 2017, represents the Carlyle group.
Notore Chemical Industries Plc
Notore Chemical Industries Plc released its results for the financial year ended September 30, 2018. Revenue dropped from N35.6 billion in 2017 to N26.8 billion in 2018. The firm made a loss before tax of N3.6 billion in 2018.
Continental Reinsurance obtains shareholder approval
Continental Reinsurance sent a notice pertaining to its court ordered meeting held on the 20th of December. At the conclusion of the Poll Voting, 92.66% of the votes cast were in favour of the Resolution approving the Scheme.
Furthermore, the Scheme Consideration was revised upwards from N2.04 (Two Naira Four Kobo) to N2.10 (Two Naira Ten kobo) per share.
The revised Scheme Consideration represents a 51.08% premium on the share price of CRe Nigeria as at the close of trading on October 5, 2018 which is N1.39; being the last business day prior to the date on which the proposal was received from CRe African Investments Limited.
An application has been submitted for the Final Approval of the Securities & Exchange Commission, subsequent to which an application will be submitted to the Federal High Court for the sanction of the Scheme.
The Effective Date of the Scheme is the date on which the Court Sanction is filed at the Corporate Affairs Commission; which, as stated in the Scheme Document, is scheduled to occur on January 4, 2019.
The company also stated that it would update the NSE as further events occour.
Nestle Nigeria’s parent company to earn N32 billion in dividend from subsidiary
Nestlé S.A, the parent company of Nestlé Nigeria looks set to earn a mega dividend.
The parent company of Nestlé Nigeria Plc, Nestlé S.A, is set to earn a whopping sum of N32 billion in dividend for the financial year ended December 2020.
The multinational food and drink processing conglomerate corporation, headquartered in Switzerland is the single majority shareholder of Nestlé Nigeria Plc, with 527,080,970 units of the total issued shares of its subsidiary.
This puts the ownership stake of the Swiss multinational at 66.5%, ahead of Stanbic IBTC Nominees Limited with 6.28% ownership stake.
Recall that the Board of Directors of Nestlé Nigeria in a statement released via the Nigerian Stock Exchange proposed a final dividend of N35.5 per share. This puts the total dividend payout of the company at N60.5 per share for the financial year 2020 (interim: N25.0).
When converted to dollars, the dividend amounts to about $78 million based on an exchange rate of N410/$1.
This proposal reflects the resilience of Nestlé despite the disruption occasioned by the pandemic. As the FMCG company was able to maintain its tradition of dividend payment to shareholders in 2020, despite taking a major shock in its profit during the year (-14%).
- Nestlé delivered a consistent result in terms of revenue, amidst the ongoing COVID-19 pandemic which disrupted supply chains globally.
- The revenue of the FMCG company increased by 1% in 2020 (N287 billion), compared to FY’19 figures (N284 billion).
- However, the increase in the prices of materials, foreign exchange restrictions, and a spike in finance costs placed pressure on the company’s profitability in 2020.
- At the back of these pressures, Nestlé’s PAT declined by 14% in 2020 (N39.2 billion) compared to FY’19 figures (N45.7 billion).
What you should know
Nestlé S.A is one of the largest food companies in the world in terms of revenue. The Switzerland-based consumer goods behemoth is the parent company of Nestlé Nigeria PLC – a leading food and beverage company in Africa.
Nestlé has grown its operation in Nigeria, as well as its presence in the Central and West Africa region over the years.
Its factory in Nigeria has grown from one – with the establishment of the Agbara Manufacturing Complex which commenced operation in 1981 – to three in recent times, following the inauguration of the Flowergate factory, a factory initially dedicated to the production of MAGGI products, and the set-up of the Abaji factory complex in 2016.
Bears take Nigerian stocks hostage, investors lose N82.4 billion
Investor sentiment as measured by the market breadth closed negative with 12 advancers and 47 decliners.
Nigeria’s all-share index fell further at the close of trading today, down by -0.40% to 39,364.67 points. Investors losses today stood at N82.35 billion.
- Year-to-date return and market capitalization settled at -2.26% and N20.5 trillion, respectively.
- Investor sentiment as measured by the market breadth closed negative with 12 advancers and 47 decliners.
- Across coverage sectors, the performance was bearish. The NSE insurance, banking, consumer goods, and oil & gas sectors dipped 4.04%, 1.54%, 1.47%, 64 basis points, and 0.65%, respectively.
- The flip side saw only the industrials improved marginally by 0.19%.
- UPL up 9.91% to close at N1.22
- MORISON up 9.09% to close at N0.6
- CAP up 5.26% to close at N20
- WAPCO up 3.59% to close at N20.2
- LIVESTOCK up 3.17% to close at N2.28
- FIDSON down 10.00% to close at N4.41
- NNFM down 9.97% to close at N6.32
- ENAMELWA down 9.95% to close at N19.9
- NEM down 9.95% to close at N1.72
- NCR down 9.91% to close at N3.09
Nigerian stocks ended the fourth trading session on a weaker note amid soaring oil prices prevailing at the U.S trading session.
- Today’s bearish trading session was inclined by sell pressure on consumer ticker, DANGSUGAR which lost -6.25%. JBERGER, ARDOVA, and UBA also declined by -7.88%, 9.85%, and -3.64%, respectively.
- Nairametrics expects intending buyers to seek the advice of certified stockbrokers.
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