Stocks to watch comprises companies that have corporate actions this week, as well as the best and worst performing stocks from the previous week.
Stocks to watch is not a Buy/Sell/Hold recommendation.
The three banks comprising Guaranty Trust Bank, Access Bank and Zenith Bank all have a joint first spot this week, having forwarded their half year results to the Central Bank of Nigeria (CBN) for approval.
From precedence, some of the banks in question have released their half year results in the second week of August.
Zenith Bank released its H1 2018 results on August 6, 2018. Its H1 2017 results were released on August 10, 2017.
Guaranty Trust Bank released its H1 2018 results on August 8, 2018. Its H1 2017 results were released on August 15, 2017.
Investors would have these stocks on their radar due to a tradition of paying interim dividends.
MTN Nigeria takes a spot this week as the qualification date for the company’s interim dividend will take place on August 8, 2019. The company’s shareholders register will be closed from August 9 to August 13, 2019
MRS Oil and Red Star Express Plc
The two firms have a joint place in this week’s watchlist, as they will be holding their Annual General Meetings on the 7th and 8th of August respectively.
AGMs are opportunities for shareholders to query poor company performance (in the case of MRS), and for management teams to roll out their plans for the rest of the year.
Unity Bank Plc and Eterna Plc
Unity Bank Plc and Eterna Plc take the last spot on this week’s watchlist, as they were the best and worst performing stocks for last week.
Unity Bank was the best performing stock last week. The stock gained 27.59% to close at N0.74. Speculators could decide to take profit this week, depending on sentiments in the larger market.
Eterna was the worst performing stock last week, declining by 19.40% to close at N2.70. Investors may continue to offload the stock, due to its poor H1 2019 results which saw profit after tax decline by 88% to N112 million.
Lagos reaffirms that schools should reopen on January 18
The Lagos State Government has reaffirmed that all public and private schools in the state will should resume next week.
The Lagos State Government has affirmed its earlier pronouncement that all public and private schools in the state below tertiary level should resume on Monday, January 18, 2021, for the second term 2020/2021 academic session.
This clarification by the state government is coming against the backdrop of opposition from some stakeholders and uncertainty amongst parents and students on the resumption of schools.
According to a statement by the Head, Public Affairs, Lagos State Ministry of Education, Kayode Abayomi, on Friday, January 15, 2021, this affirmation was made by the state’s Commissioner for Education, Mrs Folasade Adefisayo.
The Commissioner maintained that the resumption is in line with the Federal Government’s resolution after reaching a consensus with relevant stakeholders.
Adefisayo, while welcoming all to a happy and successful new academic term, urged students and members of staff to stay safe and adhere strictly to COVID-19 guidelines, adding that schools must provide soap, wash hand basin, alcoholic hand sanitisers, thermometers, and other essential items in public and private schools across the State.
She stressed the washing of hands, wearing of face masks, and maintenance of social distancing must be adhered to in order to avoid further spread of the virus.
She added that, “All schools must ensure strict compliance with subsisting COVID-19 requirements for school’s resumption. Administrators of both public and private schools are expected to ensure full compliance with the guidelines for school’s re-opening in their respective schools as the State’s Office of Education Quality Assurance Team will be on the ground to monitor situations in all schools across the State.’’
What you should know
- It can be recalled that the Lagos State Government had earlier announced that all public and private schools below the tertiary level in the State should resume for the second term 2020/21 academic session from Monday, January 18, 2021.
- The state government also advised all schools to come up with flexible plans where students and teachers who feel sick can teach or learn from home through available online platforms, adding that schools should also strive to prevent any COVID-19 infection among all students and staff.
FLASH: The Lagos State Government has affirmed its earlier pronouncement that all public and private schools in Lagos State below tertiary level should resume on Monday, 18th January, 2021 for the second term 2020/2021 academic session.#ForAGreaterLagos @jidesanwoolu pic.twitter.com/CkNI7GhXka
— Jubril A. Gawat (@Mr_JAGs) January 15, 2021
DMO offers N150 billion worth of FGN Bond for subscription in January 2021
The DMO has offered for subscription, FGN Bonds valued at N150 billion for January 2021.
The Debt Management Office (DMO) has announced the offer for subscription, Federal Government Bonds (FGN Bonds), valued at N150 billion for January 2021.
This is according to a notification released by the DMO and seen by Nairametrics. The latest offers come in three tranches:
- N50, 000,000,000 – 16.2884% FGN MARCH 2027 (10-Year Re-opening).
- N50, 000,000,000 – 12.50% FGN MARCH 2035 (15-Year Re-opening).
- N50, 000,000,000 – 9.80% FGN JULY 2045 (25-Year Re-opening).
Other key highlights of the recent offer
- Units of Sale: N1, 000 per unit subject to a minimum subscription of N50,001,000 and in multiples of N1,000 thereafter.
- Auction Date: January 20, 2021.
- Settlement Date: January 22, 2021.
- Interest Payment: Payable semi-annually.
What you should know
- Checks by Nairametrics revealed that the latest FGN Bond offer across three maturities is N90billion more than amount offered in the previous month (December 2020) at N60billion, indicating an increase of 150%.
- Interested investors were advised to contact offices of any of the listed 13 Primary Dealer Market Makers (PDMMs).
- The DMO reserves the right to alter the amount allotted in response to market conditions.
- FGN Bonds are debt securities (liabilities) of the Federal Government of Nigeria (FGN), issued by the Debt Management Office (DMO) for and on behalf of the Federal Government. The FGN has an obligation to pay the bondholder the principal and agreed interest as and when due.
CAC says defaulting lawyers to face 2 years imprisonment for filing false documents
The CAC has stated that accredited lawyers found culpable for filing false documents will be liable to 2 years imprisonment.
The Corporate Affairs Commission (CAC) has announced that any accredited lawyer found culpable for filing a false document in the course of company registration will be liable to 2 years imprisonment.
The new directive follows the relaxation of the strict requirements of the past where its officers need to compare signatures and looked at other documents to validate new filling.
According to a report from the News Agency of Nigeria (NAN), this disclosure was made by the Registrar-General of the Commission, Alhaji Garba Abubakar, at a forum with the Commerce and Industry Correspondents Association of Nigeria (CICAN) on Friday in Abuja.
What the Registrar General of CAC is saying
Abubakar in his statement said that once a document is submitted by accredited lawyers or certified secretaries (customers) on behalf of a company, the commission presumes that those documents are regular and the person that submitted has the authority to act in that capacity.
- “If anybody makes any mistake or false declaration or submit any information that is false, that person will be liable to two years imprisonment upon conviction. We advise our customers to ensure they have proper authority to make filings on behalf of companies that engage them. If there is any wrong information or any misstatement in the document submitted, they will be held responsible.’’
Abubakar also pointed out that, as part of new regulations to support the new Companies and Allied Matters Act 2020, (CAMA), the new system has placed a lot of responsibilities on the persons submitting documents on behalf of the companies.
What you should know
- In a bid to improve on the ease of doing business, attract investment and ensure economic growth, President Muhammadu Buhari signed into law the CAMA 2020 in August 2020, to replace the CAMA 1990.
- It should be noted that the new CAMA 2020 is not an amendment of the old act but rather a re-enactment.
- The Minister for Industry, Trade and Investment, Adeniyi Adebayo, approved a draft regulation to support the implementation of the new CAMA in December 2020.
- Also, CAC had given registered companies until April 1 to revalidate their various information and accounts or face sanctions.