Corporate actions are decisions taken by companies’ boards of directors or management teams, that could have impacts on the firms themselves or shareholders.
Examples of corporate actions include the release of quarterly and full year results, 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 expected in the week ahead.
Corporate actions from last week
Aluminum Extrusion Plc was marked down by 8.5 kobo this week.
Beta Glass Plc was also marked down by N1.30.
A mark down means that the proposed dividend is subtracted from the stock’s share price.
Annual General Meetings (AGMs) held
Dangote Cement, Dangote Sugar Refinery, Regency Alliance Insurance, Greif Nigeria, Veritas Kapital Assurance, and Japaul Oil and Maritime all held their AGMs last week.
Stanbic IBTC Holdings, Linkage Assurance Plc, Julius Berger Nigeria Plc, CAP Plc, BOC Gases, Meyer Plc, CWG Plc, and Cadbury Nigeria Plc also held their AGMs.
FBN Heritage Fund held an Extraordinary General Meet (EGM) as well.
Japaul Oil and Maritime Services Plc has appointed two new Executive Directors, Mrs Funmilola Omodamori and Engr Kingsley Uyokpeyi. Omodamori was appointed Executive Director in charge of Finance and Operations, while Uyokpeyi will head operations.
Julius Berger Plc has appointed Musa Goni as a Non Executive Director.
Dangote Sugar Refinery Plc has appointed Ravindra Singh Singhvi, as the company’s Acting Managing Director. Prior to this, he was Chief Operating Officer.
Neimeth International Pharmaceuticals Plc has approved the appointment of Mrs Temitayo Nelson, as Executive Director Finance. She replaces Chris Ume.
Florence Onyenekwe, the firm’s Company Secretary, will also take on the role of Chief Compliance Officer.
Oando vs SEC continued
Oando Plc, issued a press release countering a statement by the Securities and Exchange Commission that it had been granted a fair hearing.
The company is accusing the SEC of circumventing its own rules and procedures, as it failed to invite Oando to appear before the administrative proceedings committee and hear its position.
Rather, the SEC approached the media to publish its purported findings and punitive directives against the company.
The Administrative Proceedings Committee of the Commission is a body established pursuant to the Investments and Securities Act for the purpose of resolving disputes in the capital market and giving opportunities for fair hearings to capital market operators and other institutions in the market who are perceived to have violated, actually violated, or threatened to violate the provisions of the act.
The company also stated that it had no access to the audit report by Deloitte. Deloitte, in its response, stated that Oando’s claims were inaccurate, and it would respond at a later date if necessary.
Behind the Listing
The management of Ellah Lakes Plc held a Facts Behind the Listing Session at the Nigerian Stock Exchange. The company recently listed 1.8 billion shares which were issued to shareholders of Telluria Limited, which it acquired.
The company disclosed that it would face palm oil production in the Edo/Delta region fully, as militant activities had prevented the firm from operating its fish farm in Rivers State.
The International Finance Corporation will be selling its 14.1% stake In Ecobank Trans International (ETI) to Arise BV, a Dutch private equity firm.
Lafarge Africa Plc released its full year 2018 and Q 1 2019 results this week. The cement giant made a N9.1 billion loss after tax for the 2018 financial year, and a N3.1 billion profit after tax for the first quarter ended March 2019.
In addition, it had redeemed its N26.4 billion bond which was due on the 15th of June, 2019. The company will be seeking shareholders approval.
Baba Ijebu moves
Unconfirmed reports suggest that Sir Kessington Adebutu may have taken a stake in Wema Bank Plc . Adebutu made his fortune from the pools business, popularly known as Baba Ijebu.
The stock moved unusually large volumes last week, with 12.7% or 4.9 billion of the company’s shares traded.
Billions in a pocket
Last week, Femi Otedola formally concluded the sale of his 74% stake in Forte Oil Plc, in a deal valued at N64 billon to Ignite Investments and Commodities Limited led by Prudent Energy Services Limited. The two firms are controlled by Abdulwasiu Sowami.
The company also announced the resignation of the Chief Executive Officer (CEO) Mr Akin Akinfemiwa and the Chief Financial Officer Julius Omodayo-Owotuga following the take over by Ignite.
After the Bell
Mutual Benefits Assurance Plc released its results for the 2018 financial year, on Saturday after trading hours.
Gross earnings rose by 12.8% to N15.8 billion. The increase in bottom-line was however marginal. Profit before tax rose by 3.7% to N1.38 billion. Profit after tax was up by 9% to N1.1 billion.
No dividend was declared.
Corporate Actions taking place next week
Annual General Meetings
Law Union and Rock Insurance Plc, NEM Insurance Plc and Notore Industries Plc will be holding their Annual General Meetings on the 25th of June, 2019.
UAC of Nigeria, Jaiz Bank and Union Diagnostics will hold their Annual General Meetings on the 26th of June.
Total Nigeria Plc, Tantalizers Plc, and Medview Airline Plc will hold theirs on the 27th of June.
A visit to the NSE
Ikeja Hotels Plc will be holding a Facts Behind the Figure session at the Nigerian Stock Exchange on Wednesday the 26th of June.
Oando vs SEC rolls on
Further hearing in the case between Oando Plc vs the Securities and Exchange Commission (SEC) will continue this week.
Sell-offs resume in Nigerian stock market, catalyzed by Ecobank, Fidson
Investor sentiment as measured by market breadth was negative with 24 decliners and 14 advancers.
Nigerian bourse ended the fourth trading session on a negative note. Nigeria’s All-share index depreciated by 0.31% today to 40,095.49 index points.
Year-to-date return and market capitalization settled at -0.43% and N20.97 trillion respectively.
- A total volume of 326.0 million units of shares, valued at N3.7 1billion exchanged hands in 4,567 deals.
- Across coverage sectors, the performance was mostly negative as most tracked indices finished south. The NSE banking, consumer goods, and oil & gas fell by 1.44%, 0.79%, and 0.15% respectively.
- On the flip side, the NSE insurance improved by 0.24%, while the industrial index closed flat.
- Investor sentiment as measured by market breadth was negative with 24 decliners and 14 advancers. LASACO (-9.68%) led the laggards today, while CHAMS (+9.09%) finished top gainer.
- CHAMS up 9.09% to close at N0.24
- ROYALEX up 8.00% to close at N0.27
- WEMABANK up 7.69% to close at N0.7
- REDSTAREX up 5.77% to close at N3.3
- PRESTIGE up 4.55% to close at N0.46
- LASACO down 9.68% to close at N1.24
- FIDSON down 8.41% to close at N4.9
- ETI down 6.31% to close at N5.2
- MBENEFIT down 5.13% to close at N0.37
- UACN down 5.03% to close at N7.55
Nigerian stocks ended the second trading session of the week on a bearish note amid profit-taking across the market spectrum.
- Downtrend was driven by price depreciation medium and large capitalized stocks amongst which are; ETI, FIDSON, UACN.
- That being said, Nairametrics envisages cautious buying on the account that certain market indicators reveal investors are taking some of their gains across the market spectrum.
Nigeria’s pension asset under management hits N12.3trillion in December 2020
Nigeria’s pension asset under management hits N12.3trillion in December 2020.
Nigeria’s pension asset under management, as of December 2020, stands at N12.3trillion which represents a modest growth of 20% year-on-year and 0.003% month-on-month (no significant change), according to the monthly report by National Pension Commission (Pencom).
According to the report, total RSA funds increased by 20% year-on-year while the funds under both existing schemes and Closed Pension Fund Administrator (CPFA) as well, grew by 21% year-on-year.
Other Key highlights
- As of December 2019, investments in FGN Securities accounted for 72% of the total pensions assets fund, out of which 73% was invested in Bonds and 26% in Treasury Bills.
- As of December 2020, investments in FGN Securities accounted for 66% of the total pensions assets fund, out of which 84% was invested in Bonds and a paltry 8% in Treasury Bills, which is not unrelated to the subsisting very low yield of TB in the money market.
- The investments in FG Bonds represent 56% of the total pension assets fund under management. The renewed and increased investments in FG Bonds can be attributed to the attractiveness of the yields of FG bonds over the Treasury Bills.
- RSA Fund II and III accounted for 89% of the total RSA funds and 69% of the total pension assets under management as of December 2020, while others – Funds I, IV and V accounted for 31%
- All the RSA funds, including existing scheme and CPFA recorded year-on-year growth as follows: Existing scheme (13%), CPFA(28%), Fund I (49%), Fund II(19%), Fund III(21%), Fund IV(18%).
- As of December 2020, only N80.54million was invested under the newest RSA fund (Fund V) – specifically created for micro pensions.
What you should know
There are 4 pension fund types, with the newest recently introduced for the micro pension scheme.
The Multi-Fund structure is a framework that aims to align the age and risk profile of RSA holders, as follows:
- Fund I – This is an optional fund. Contributors must write formally to opt for this Fund.
- Fund II – This is the default fund for contributors aged 49 and below.
- Fund III – This is the default fund for contributors aged 50 and above.
- Fund IV – This is the Retiree Fund.
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