Markets
CORPORATE ACTIONS: Another Yhello Headache
Here is a rundown of corporate actions that took place at the @nsenigeria last week and those expected in the week ahead.
Corporate actions are decisions taken by companies’ boards of directors or management teams, that could have 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 rundown of corporate actions that took place last week and those expected this week.
Corporate Actions that held this week
Kapital losses
Omoluabi Mortgage Bank Plc and Veritas Kapital Assurance Plc released their results this week. Omoluabi released its audited full year 2018 and first quarter 2019 results. Veritas released its audited results for the 2018 financial year.
Omoluabi had a decline in its full year 2018 and first quarter 2019 profit.
Veritas (formerly known as Unity Kapital) incurred a loss after tax for the second year running. The N695 million loss, was largely due to a 45% spike in management expenses to N2.9 billion in 2018.
Annual General Meetings (AGMS) held
AIICO Insurance, Caverton Offshore Support Group Plc, Consolidated Hallmark Insurance Plc, NCR Nigeria Plc, Pharmadeko Plc , Glaxosmithkline Consumer Nigeria, and Berger Paint Nigeria Plc all held their Annual General Meetings.
Markdowns
Cadbury Nigeria Plc’s share price was marked down by N0.25 this week. Ex dividend price was N10.25.
UAC of Nigeria Plc’s share price was marked down by N0.64 this week. Ex dividend price was N6.61.
Another Yhello Headache
MTN Nigeria, in a notice sent yesterday, disclosed that it had received a letter from the Economic and Financial Crimes Commission (EFCC) requesting documentation pertaining to its listing on the Nigerian Stock Exchange (NSE). The company however denied any form of wrongdoing. There had been media reports of a raid by the agency on the company’s head office located in ikoyi.
The telco and the NSE had issued press releases earlier in the week, explaining the reasons behind the illiquidity in the trading of the company’s shares.
The move adds to the burden of an ongoing court case against the office of the Attorney General of the Federation (AGF). The OAGF has accused MTN Nigeria of tax evasion— a charge it has denied.
A New ED
Conoil Plc has appointed Ismail Salam as acting Executive Director (ED) Finance.
Corporate Actions taking place next week
Annual General Meetings
Courteville Business Solutions Plc, Nestle Nigeria Plc, Portland Paints and Products Plc, May & Baker Plc, and Livestock Feeds Plc will all be holding their Annual General Meetings (AGMs) this week.
Courteville Business Solutions Plc, and Nestle Nigeria will be holding their AGMS on the 28th of May, 2019.
Portland Paints and Products Plc, and May & Baker Plc will hold theirs on the 30th of May, 2019.
Livestock Feeds Plc will hold its AGM on the 31st of May, 2019.
Facts Behind the Figures
Ikeja Hotel Plc will hold a Facts Behind The Figures session at the Nigerian Stock Exchange on Tuesday May, 28, 2019.
Stock Market
NASD OTC market capitalization hits N538.12 billion, as investors gain N9.22 billion
On a weekly basis, the NSI gained 1.74% from 720.02 points last week to 732.57 points this week.
The market capitalization of NASD OTC Securities Exchange Market, gained about N9.22 billion in value, from N528.90 billion recorded in the previous week to N538.12 billion at the close of trading session, Friday September 25, 2020.
The index closed on a positive note YTD, gaining 5.02%, as the market recorded an increase in performance.
On a weekly basis, the NSI gained 1.74% from 720.02 points last week to 732.57 points this week.
The improved performance of the NSI over the week is partly attributable to the impressive performance of UBN Properties Plc, both in terms of trade volume and trade value.
There was an appreciation of the share price of Central Securities Clearing System Plc, which leaped by 9.63% from N13.5 in the previous week to N14.8 this week. CSCS Plc, currently holds a Market Capitalization of ₦74 Billion.
Source: NASD OTC Market report
In terms of Week-on-Week basis, mixed results were recorded, as the total value traded declined by -75.99%, from N108.40 million to N26.03 million in the period under review.
But trade volume appreciated by 275.69%, from about 3,246,505 units to 12,196,894 units. On a Year To Date (YTD) basis, a total of 7,838,995,186 units have been traded so far for the year.
Top traded securities by Value
In the top five position, UBN Properties Plc led the chart with N12.6 million, in terms of the trade value for the week, followed by NIPCO Plc with N8.13 million, Niger Delta Exploration and Production Plc with N1.91 million, WAMCO Plc with approximately N1.80 million, and Food Concept with N1.35 million
The summary of the top five securities by value is depicted in the chart below.
Source: Nairametrics’ computation
Top traded Securities by volume
UBN Properties Plc also led the chart, registering 10,000,000 units, followed by Food Concept Plc with 2,000,000 units. Also, in the top five position is NIPCO Plc with 125,091 units, while Afriland Plc recorded 23,650 units. Geo-Fluids Plc made it to the elite list with 15,000 units.
In summary, the chart below shows the top five securities in terms of volume.
Key Highlights
- Total volume traded Year-to-Date stands at 7,838,995,186 units in 1171 deals.
- Total Value traded is ₦10,881,948,526.39.
- Market capitalization current stands at N538.12 billion
For more information, click HERE.
Funds Management
Report any employer without Group Life Insurance for employees – PenCom
PenCom has ordered that employers without Group Life Insurance policy for their employees be reported to the agency.
The National Pension Commission says any employer not remitting pension contributions or does not have a Group Life Insurance policy should be reported to the Pension Commission.
This was announced in a statement by the National Pension Commission this week.
The statement said any citizens can report anonymously to the Commission, through a letter of complaint stating the name and address of the employer and also the months outstanding, which would enable PenCom recovery agents go after the employer.
PenCom also urged all employees working in organizations that have implemented the Contributory Pension Scheme, that it is their right under Section 4(5) of the PRA 2014 to have Life Insurance Policy taken on their behalf by their employers for an insured amount of no less than 3 times their annual emolument.
Nairametrics reported in February that PenCom announced effective from March 2020, companies, with no insurance covers for their staff, would no longer be allowed to do any government business.
According to PenCom’s annual report on the submission of group life insurance certificates for the year 2018, only 172 employers obtained the group life insurance policy for a total of 39,946 employees in compliance with the Pension Reform Act 2014.
It noted that the deadline was issued because of the low number of companies that have insurance covers for their staff. PenCom noted that the new regulation was to ensure that the companies open appropriate pension accounts for the workers.
Cryptocurrency
3 Tron investors transfer 719,000,000 cryptos
TRX price is up 9.4% in the last 24 hours.
Investors have been cashing in big time on Tron, a relatively popular digital asset in the crypto-verse. Data feed on Whale Alert, an advanced crypto tracker, revealed that three whales moved about 719,000,000 Trx worth over $20 million transferred from unknown wallets to other unknown wallets.
200,000,000 #TRX (5,627,410 USD) transferred from unknown wallet to unknown wallet
— Whale Alert (@whale_alert) September 26, 2020
220,000,000 #TRX (6,147,722 USD) transferred from unknown wallet to unknown wallet
— Whale Alert (@whale_alert) September 26, 2020
299,000,000 #TRX (8,400,678 USD) transferred from unknown wallet to unknown wallet
— Whale Alert (@whale_alert) September 26, 2020
READ: Buying signal, Bitcoin whales with 1000 BTC or more continue to rise
TRON, at the time this report was drafted, traded at $0.02817222 with a daily volume of $1,128 billion. TRX price is up 9.4% in the last 24 hours. It has a circulating supply of 72 Billion coins and a max supply of 101 billion coins.
TRON is a blockchain-based platform that is designed to ensure that its technology is suitable for daily use. Whereas Bitcoin can handle up to six transactions per second, and Ethereum up to 25, TRON states that its network has capacity for 2,000 TPS — 24/7.
This project is best described as a decentralized platform focused on content sharing and entertainment; to this end, one of its biggest acquisitions was the file-sharing service BitTorrent back in 2018.
READ: Binance offers DeFi coders $100,000; DeFi market value hits $8 billion
TRON was founded by Justin Sun, who now serves as CEO of BitTorrent. Educated at Peking University and the University of Pennsylvania, he was recognized by Forbes Asia in its 30 Under 30 series for entrepreneurs.
TRON is one the biggest and most popular blockchains globally, ranked fifteen by market value, has entered a strategic alliance with BitGo, the leader in digital asset financial services, to bring Wrapped Bitcoin (WBTC) and a newly minted Wrapped Ether to the TRON ecosystem as TRC20 tokens.
READ: U.S public listed company allocates $425 million into Bitcoin
Justin Sun says that TRON users will not encounter high fees like in the Ethereum ecosystem.
“Everyone may now use their BTC/ETH to enjoy all the benefits of the TRON DeFi ecosystem without the high gas fees on Ethereum! JustSwap, a Uniswap alike service on TRON, has achieved $100 million 24-hour volumes since its start and represents TRON’s strong and growing DeFi ecosystem.”
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