The downturn in the stock market has shown no signs of abating, as stocks across various sectors hit 52–week lows, or multi–year lows.
Chemical and Allied Products (CAP) Plc has been no exception. It hit a new low in yesterday’s trading session on the Nigerian Stock Exchange (NSE).
The stock opened at N27.50 and closed at N24.75, down N2.75 or 10%. Year to date, the stock is down 29%, underperforming the NSE All Share Index which is down 10.28% year to date.
The decline in the company’s share price is largely due to the negative sentiments in the entire market. Several stocks are either trading at 52 week lows or multi year lows. Investors have choosen to stay on the sidelines, till there is a clear macroeconomic direction.
Q1 2019 numbers
The company’s results for the first quarter ended March 2019, show marginal, but positive increase in both topline and bottom-line.
Revenue for the first quarter ended March 2019 increased by 8% from N1.9 billion in 2018 to N2.1 billion in 2019. Profit before tax rose from N679 million in 2018 to N733 million in 2019, also up by 8%. Profit after tax also rose from N462 million in 2018 to N498 million in 2019, appreciating by 8%.
Price movement from here
An appreciation or further decline in the stock’s price would be dependent on two factors: performance of the market as a whole, and the company’s half year 2019 results.
Barring any key macroeconomic news such as the appointment of ministers by President Muhammadu Buhari, the market is unlikely to show any significant upside anytime soon.
CAP Plc’s board is billed to meet next week to consider the company’s half year results. If the results are positive, the stock could trade within its current range, or witness negligible decline. If the performance is as uninspiring as the first quarter, new lows may be close by.
About the company
Chemical and Allied Products (CAP) Plc, a subsidiary of UAC of Nigeria (UACN) Plc, is into the manufacturing of paint and protective coatings.
The company was established originally as ICI investments limited in 1957, but later became ICI Nigeria Limited in 1965.
Following the promulgation of the Indigenization Decree in 1972 and 1977, ICI Nigeria Limited sold 40%, and then 60% of the company to the Nigerian public and changed its name to Chemical and Allied Products Limited.
In 1992, ICI Nigeria Limited finally disposed of its minority 40% shareholding in CAP Plc, when it sold 35.7% of its equity to UAC of Nigeria Plc and the rest to the Nigerian public on the floor of the Nigeria Stock Exchange (NSE). Currently, UAC of Nigeria Plc holds about 50.09% of the company’s issued share capital.
Covid-19: WHO approves China’s Sinopharm vaccine
WHO has announced the approval of China’s Sinopharm vaccine for Covid-19 vaccination.
The World Health Organization (WHO) has announced the approval of China’s Sinopharm vaccine for Covid-19 vaccination. The vaccine is reported to have 79% efficacy against covid.
This was disclosed today in a report by Reuters. The vaccine would also be the second Chinese-made vaccine after Sinovac vaccine and would be the first developed outside Europe and North America to receive WHO accreditation.
“This expands the list of COVID-19 vaccines that COVAX can buy, and gives countries confidence to expedite their own regulatory approval, and to import and administer a vaccine,” WHO Director-General, Tedros Adhanom Ghebreyesus said.
The WHO added that the easy storage requirements make it highly suitable for low-resource settings.
“Its easy storage requirements make it highly suitable for low-resource settings,” a WHO statement said while also disclosing that the vaccine has been approved for people above the age of 18 to receive two shots.
“On the basis of all available evidence, WHO recommends the vaccine for adults 18 years and older, in a two-dose schedule with a spacing of three to four weeks,” the statement added.
The vaccine was created by Beijing Biological Products Institute, a subsidiary of Sinopharm subsidiary China National Biotec Group, with an efficacy of 79% for all age groups.
The WHO however, admitted that few older adults (over 60 years) were enrolled in clinical trials, so efficacy could not be estimated in this age group.
In case you missed it
The quest for vaccine efficiency got a major boost earlier this week as Nairametrics reported that the United States government announced that it supports the waiver of Intellectual Property Protections on Covid-19 vaccine development, in a bid to boost the fight against the pandemic, and says it will participate in the Okonjo-Iweala-led WTO negotiation to make it happen.
“Mama Taraba”, Former minister and senator, Aisha Al-Hassan is dead
Ex-Women Affairs minister, Aisha Jummai Al-Hassan, popularly known as Mama Taraba is dead
A former Minister for Women Affairs and ex-Governorship Candidate in Taraba State, Aisha Jummai Al-Hassan, popularly known as Mama Taraba is dead.
According to media reports she died in a hospital on Friday in Cairo, Egypt at the age of 61.
Al-Hassan, who was a former senator of the Federal Republic of Nigeria from Taraba North Senatorial District, was the All Progressive Congress (APC) Governorship Candidate for Taraba in the 2015 general elections.
She later contested for the same seat on the platform of the United Democratic Party in the 2019 general elections after resigning from APC and as a minister in the administration of President Muhammadu Buhari on July 27, 2018.
The former senator was born on the 16th of September, 1959 in Jalingo, Taraba State, to Alhaji Abubakar Ibrahim, Sarkin Ayukan Muri.
Aisha Jummai Al-Hassan attended Muhammed Nya Primary School, Jalingo and LEA Primary School, Tudun Wada, Kaduna before proceeding to Saint Faith College (now GGSS) Kawo Kaduna where she studied between January 1973 and June 1977.
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