The Nigerian Stock Exchange (NSE) ended Tuesday’s trading session in negative territory. The All-Share Index closed at 27,058.62 basis points, down 0.21%. Year to date, the index is down by 13.91%.
Top Gainers: Oando Plc was the best-performing stock today. The stock gained 10% to close at N3.85. Transnational Corporation of Nigeria Plc also gained 10% to close at N0.99. Chams Plc gained 9.52% to close at N0.23. Berger Paints Plc gained 9.49% to close at N7.50. UAC of Nigeria Plc rounded off the top five gainers for today. The stock gained 9.38% to close at N5.25.
Top Losers: On the flip side, Cutix Plc was the worst-performing stock, declining by 9.62% to close at N1.41. Pz Cussons Nigeria Plc fell by 8.33% to close at N5.50. Union Diagnostic & Clinical Service Plc fell by 8.33% to close at N0.22. May & Baker Nigeria Plc fell by 6.83% to close at N1.91. Honeywell Flour Mill Plc rounded off the top five losers for the day. The stock shed 6.06% to close at N0.93.
[READ MORE: Nigeria and the burden of debt]
Top Trades by Volume: Transnational Corp of Nigeria Plc was the most actively-traded stock today. 43.5 million shares valued at N42.7 million were traded in 152 deals. Guaranty Trust Bank Plc was next with 42.9 million shares valued at N1.1 billion traded in 304 deals, followed by Zenith Bank Plc with 34.1 million shares valued at N591 million traded in 589 deals.
Ecobank Transnational Inc was next with 24.2 million shares valued at N148 million traded in 139 deals. FBN Holdings Plc rounded off the top five most actively traded stocks today with 6.3 million shares valued at N31.3 million traded in 199 deals.
The Board of Directors of Total Nigeria Plc appointed Mrs Lesley Baxter-Green as a Director of the company. The appointment took effect from the 16th of August, 2019.
Etranzact has scheduled its 15th Annual General Meeting to hold at Colonades Hotel, 21, Alfred Rewane Road, Ikoyi, Lagos on Thursday, September 26, 2019, at 12 noon.
LASACO Assurance Plc also scheduled its Annual General Meeting to hold at City Hall, Catholic Mission Street, Lagos Island, Lagos on Thursday, 12th September 2019 at 11:00 am.
SAHCO suffers 92% decline in profit, as travel restrictions bite harder
Analysis of the company’s results indicates that revenues dipped as a result of COVID-19 travel restrictions.
Skyway Aviation Handling Company Plc (SAHCO), reported revenues of N3.1 billion in the second quarter of 2020 compared with N3.5 billion in the same period in 2019. This represents an 11.9% decrease relative to the same period last year.
SAHCO Plc, formerly known as Skypower Aviation Handling Company Plc, prior to its privatization, is 100% owned by the Sifax Group, and incorporated as an Aviation Ground Handling Service Provider under the Nigerian Company & Allied Matters Act of 1990. SAHCO Plc’s duties involve all the actions that take place from the time an aircraft touches down on the tarmac, to the time it is airborne. The company also ensures that the right assignment is carried out in an efficient, speedy, and safe manner, deploying the right tools.
A careful analysis of the latest results of the company indicates that revenues dipped as a result of COVID-19 travel restrictions. Travel restrictions affected SAHCO Plc’s operations, but an increase in revenues from domestic and foreign cargo handling gave the company a lifeline amidst business uncertainties.
SAHCO Plc has 10 revenue-generating segments: foreign handling, domestic handling, cargo handling – export, DCS/PAX handling, cargo handling – domestic, equipment rental, investment property, pilgrimage, haulage/crew bus services, and airport security services. Revenues from eight of these segments declined in Q2 2020, compared with the same period last year; however, revenues from cargo handling increased.
Revenues from cargo handling – income increased by 16.04% to N2.2 billion in the current period, compared with N1.9 billion in the same period last year. Revenues from cargo handling – export increased by 8.26% to N146.7 million in the period under review, relative to N135.5 million in the same period last year.
It is expected that performance would improve, following the lifting of foreign travel restrictions on the 5th of September 2020. However, things may not transform sooner, as there are one or two challenges facing the sector. For example, although travel restrictions have been lifted, the conditions passengers have to meet before travel, may be overwhelming for some people to go through; thus, the number of travelers is not expected to peak yet.
The Earnings Per Share (EPS) of the company declined by 92.11% in Q2 2020, from 12.67 kobo to 1 kobo, compared with the same period last year. The decline in distributable profit by 93.34% to N11.42 million in Q2 2020, relative to N171.50 million in Q2 2019, contributed to this decline.
SAHCO Plc’s shares were listed on the floor of the NSE on April 26th, 2019. The shares currently trade at N2.93 per unit. The highest price for a unit of share in 52 weeks was N4.19 and the lowest N1.42. A total of 20,391 units was sold in the last seven days trades. Shares outstanding is 1,353,580,000 units and its market capitalisation is N3,965,989,400 billion.
Nigerian Aviation Handling Company Plc (NAHCO), operates in the same sub-sector as SAHCO Plc – transport-related Services. NAHCO Plc’s share price is N2. The highest price for a unit of share in 52 weeks was N3.01 and the lowest is N1.90. A total of 8,162,828 units was sold in the last seven days trades. Shares outstanding is 1,624,218,750 units, and its market capitalisation is N3,248,437,500 billion.
With the surge in cargo revenues, SAHCO Plc recently received delivery of new Ground Support Equipment (GSE). This is expected to improve its ground power operations, in terms of cargo and passenger loading operations, as well as aircraft mobility. The newly acquired fleet of equipment consisted of 50 Cargo pallet dollies, 45 container dollies, 3 passengers step loaders, and 50 baggage tag machines. The company also recently introduced a branded Ankara uniform for its frontline operating staff. The MD of the company, Mr. Basil Agboarumi, noted that the reasoning behind the branded uniform is to showcase the Nigerian culture to the world.
Oil prices down, COVID-19 weighs hard on traders
Oil traders are concerned about the blurred demand outlook in the short term.
Oil prices dragged lower at Monday’s trading session in Asia. Traders are deeply worried over rising COVID-19 cases upsetting hopes for a smooth recovery in energy demand, with both main oil benchmarks on track for their first monthly declines in multiple months after last week’s plunge.
What we know: Brent crude (LCOc1) dropped by 0.69%, to trade at $41.63 a barrel by 05.54 GMT after losing 2.9% last week.
West Texas Intermediate (CLc1) was down, trading at $39.44 a barrel, losing about 0.77%, following a 2.1% decline last week.
Oil traders are concerned about the blurred demand outlook in the short term, as an unexpected build in oil production coupled with additional oil supplies by Libya, rattled the nerves of oil traders.
Still, OPEC Secretary-General, Mohammad Barkindo, disclosed yesterday that commercial oil inventories in OECD countries are expected to stand only slightly above the five-year average in the first quarter of 2021, before falling below that level for the rest of 2020.
Stephen Innes, Chief Global Market Strategist at AxiCorp, in a note to Nairametrics, spoke on political macro weighing down on oil prices at the moment. He said:
“Reports that ministers in the UK are preparing to enforce ‘total’ social lockdown across many Northern Britain and London could cap prices this morning. Sure, this could be an ‘overreaction’ in an attempt to clamp down on further anti-lockdown protests after the massive anti demonstration at Trafalgar square on the weekend, which could eventually prove to be a Covid-19 hot spot.”
The surge in the Covid-19 onslaught, marked by record numbers of cases in Western Europe and the United States, prompted the strengthening of various countries’ COVID-19 restrictions which continue to weigh heavily on demand for gasoline.
18,500,000 Bitcoins in circulation
This means there is less than 2.5 million BTCs left, or about 11.9% of the total Bitcoin to be generated.
There are now over 18,500,000 BTCs in circulation. A tweet, recently released by ChartBTC disclosed that the amount of BTC left is about 18.5 million.
This means that there is less than 2.5 million BTCs left, or about 11.9% of the total Bitcoin to be generated.
— ChartsBTC (@ChartsBtc) September 27, 2020
As the issuance of new BTCs is halved every 4 years, the last BTC is not expected to be mined until 2140. No new Bitcoin can be mined after that year.
Recall that about three months ago, Nairametrics wrote on how Bitcoin was becoming difficult, as about 60% of BTCs in circulation (18.5 million BTCs) were held by business entities or individuals that had never sold more than 25% of BTCs that they had been holding as long-term investments.
What you need to know: Only 21 million BTCs are ever going to be produced in total, and presently, there are about 18.5 million BTCs in circulation. This shows a differential of about 2.5 million BTCs that are left to be produced.
Chainalysis, a crypto analytic firm, wrote a report explaining how most BTCs are held by those who treat it as digital gold, stating;
“This digital gold is supported by an active trading market for those who prefer to buy and sell frequently. The 3.5 million Bitcoins used for trading supplies the market and in interaction with the level of demand, determines the price. With more people looking to trade Bitcoin, which is only becoming scarcer following the recent halving.”