Yesterday, Nigerian Breweries (NB) was taken down its cachet by the Nigerian Stock Exchange (NSE). They were degraded from their previous status of high-priced stock to medium-priced stock.
According to the NSE, Nigeria Breweries’ stock price dropped below the N100 paradigm on August 31, 2018 and traded below N100 up till close of business on December 31, 2018. This implied that Nigerian Breweries’ stock price traded below N100 in the past four months.
What the rules say
Stock market rules set down by the NSE, classify stocks into three price categories.
Group A (high-priced stocks) for stocks priced at N100 and above.
Group B (medium-priced stocks) for stocks priced more than N5 but less than N100.
Group C (low-priced stocks) for stocks priced between N0.01 to N5.00.
Going by the rules, Nigerian Breweries can be categorized under group B, hence their new status of a medium-priced stock.
Effect of the category change
An implication of the shift could be a relative stickiness in terms of price. Medium priced stocks require a minimum of 50,000 units for a movement in price. Stocks in the Group A category, on the other hand, require a minimum of 10,000 units for the price to move.
Drivers of the decline
The decline in the company’s share may be largely due to the negative sentiment in the markets as a whole, as well as the company’s poor performance.
Competition from other brewers (notably International Breweries) firms, a weak macroeconomic environment, and higher excise duties kicking in, could lead to the firm recording a dip in profit for the 2018 financial year.
Nigerian Breweries is currently trading at N75.35 in today’s trading session on the Nigerian Stock Exchange, down N4.50, from the prior day. Year to date, the index is down
Results for the nine months ended September 30, 2018 show that revenue fell from ₦270 billion in 2017 to ₦254 billion in 2018. Profit before tax also dropped from ₦34.4 billion in 2017 to ₦22.4 billion in 2018. Profit after tax also dropped from ₦24 billion in 2017 to ₦14.7 billion in 2018.
Update: Health Minister states side effects of COVID-19 vaccines
Dr. Osagie Ehanire has disclosed the side effect of the COVID-19 vaccines.
Minister of Health, Dr. Osagie Ehanire has stated the side effects of the COVID-19 vaccines, which he said is mild.
The minister disclosed this during the live broadcast when President Muhammadu Buhari took his vaccine shot on Saturday.
According to the Minister, the reactions are usually mild and only few people had complained of mild pain in the part of the body they got the shot.
He said, “It is not everybody that complained of reactions/side effects but few had complained of mild pain at the part of the body they got the shot.
”Usually manufacturing vaccines take not less than 4 years but this only took about 1 year, which is the reason some people are apprehensive about the vaccines. This was manufactured in the United Kingdom and has been certified.”
Ehanire, explained that the jab is painless as a narrow gauge syringe was used with a small quantity injected in the upper arm.
He added that the after-effects are mild but accompanied by little discomfort in the area that was injected.
Present at the brief ceremony were the Secretary to the Government of the Federation (SGF) Mr Boss Mustapha; Minister of Information and Culture, Alhaji Lai Mohammed; the Chief of Staff to the President, Professor Ibrahim Gambari and other members of the Presidential Task Force (PTF) on COVID-19, senior government officials and journalists.
Update: President Buhari, VP Osinbajo get COVID-19 vaccine shots
President Buhari and VP Osinbajo have been vaccinated against COVID-19 on Saturday at the State House, Abuja.
President Muhammadu Buhari and Vice President Yemi Osinbajo have been vaccinated against COVID-19 on Saturday at the State House, Abuja.
President Buhari and VP, who received his COVID-19 vaccine shot on Live TV broadcast, urged Nigerians to emulate him and do the same to curb the pandemic in the most populous black nation.
Both were administered their jabs, on Saturday morning, at the Banquet Hall of the presidential villa, Abuja at a ceremony broadcast live on national television.
Their inoculation followed their e-registration and filling out of their vaccination cards by the Executive Director of the National Primary Health Care Development Agency (NPHCDA), Faisal Shuaib.
Vaccination of Buhari was done by Chief Personal Physician to the President, Dr Suhayb Rafindadi.
Osinbajo was also vaccinated by his personal physician, Dr Nicholas Audifferen.
Nairametrics | Company Earnings
Access our Live Feed portal for the latest company earnings as they drop.
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- 2020 FY Results: Cornerstone Insurance Plc reports a 61.1% decline in profit
- Ellah Lakes increases operating expenses by 33.36% in HY 2020
- 2020 FY Results: Nigerian Breweries reports a 54.3% decline in profits in 2020
- Abbey Mortgage Bank projects N51.08 million profit in Q2 2020.