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Stock Market

AXA Mansard Plc increase authorized share capital to N18 billion

AXA Mansard shareholders have approved a 242.9% rise in its authorized share capital to N18 billion.

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AXA Mansard Insurance Plc

AXA Mansard Insurance Plc has announced an increase in its authorized share capital from N5.25 billion to N18 billion, indicating a massive rise of 242.9%.

The recent development is part of the resolutions of the Extra-Ordinary General Meeting of AXA Mansard Insurance Plc, sent to the Nigerian Stock Exchange Market and seen by Nairametrics.

On how the additional N12.75 million authorized share capital will be created, the firm proposed the creation of 25,500,000,000 (Twenty Five Billion, Five Hundred Million) ordinary shares of N0.50K each.

Key highlights of the resolutions

  • The newly created 25.5 billion ordinary shares of N0.50k were resolved to be issued and allotted as fully paid bonus shares, to registered company’s shareholders as at December 14, 2020 (the Relevant Date); in the proportion of Seventeen (17) new ordinary shares for every Seven (7) ordinary shares held as at the Relevant Date (“the Bonus shares”).
  • The capitalization of funds standing to the credit of any of the company’s reserve accounts or to the credit of the profit and loss account or otherwise available for distribution, up to the sum of N12.75 billion. The capitalization is for the purpose of issuing Bonus Shares as fully paid shares to the shareholder
  • To round to the nearest whole share or zero in situations where the issuance of the Bonus Shares results in a fraction of a share being held.
  • To alter the nominal value of the issued ordinary shares of the Company from 50 kobo to N2.00K each through the consolidation of every four (4) shares held by each shareholder into one (1) share.
  • A decision to grant consolidated shares equal rights and restrictions as the existing shares of the Company was reached.
  • Finally, the consolidation exercise was fixed for December 31, 2020

What you should know

  • Nairametrics had earlier reported that the Nigerian House of Representatives directed NAICOM to suspend the recapitalization of insurance firms.
  • According to Investopedia, Authorized share capital, also known as Authorized stock, is the maximum number of stock units (shares) that a company is legally allowed to issue or offer based on its corporate charter. An increase to the Authorized share capital is only possible through shareholder’s approval, after satisfying regulatory requirement.
  • Therefore in lieu of this, AXA Mansard Insurance Plc in accordance with Section 102 of CAMA, and Article 40 of the company’s Articles of Association, reported the necessary changes.
  • Nairametrics gathered that AXA Mansard Insurance Plc market capitalization is about N23.54 billion, and last closed with share price of N2.28.

Chidi Emenike is a graduate of economics, a Young African Leadership Initiative Fellow and an Investment Foundations certificate holder. He worked as a graduate Teaching Assistant in the Federal College of Education Kano and is also a trained National Peer Group Educator on Financial Inclusion

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Stock Market

Dangote Cement loses N92 billion on NGX, as investors digest Q1 2021 financial results

The NGX All-Share Index and market capitalization declined by 0.92%, as shares of Dangote Cement and MTN declined.

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Dangote powers cement plant in Tanzania with gas turbines, Dangote Cement Plc records 34.20% increase in 2020 Q3 revenues, Dangote Cement market capitalization increased by 28% to cross N3 trillion mark in November

The stocks of top cement companies on Wednesday closed in the downline as investors sold off stakes in the shares of Dangote Cement despite impressive Q1 2021 results.

Data tracked on the Nigerian Stock Exchange revealed that the shares of Nigeria’s most capitalized company lost a whopping N92 billion in market value, at the back of a 2.49% decline in the share price of the leading cement producer.

On the flip side, shares of BUA Cement, another key producer in the Nigerian cement industry closed flat on the exchange today, while Lafarge Africa lost a meagre N1.6 billion of its market capitalization, triggered by a 0.47% decline in its share price.

The impact of this decline on the NSE Industrial Index

The 2.49% decline in the shares of Dangote Cement weighed heavily on the Industrial index, an index that tracks the performance of industrial companies listed on the Nigerian Stock Exchange.

At the end of the market today, the industrial index closed lower at 1918.94 index points, driven by the N92 billion market value loss which Dangote Cement suffered today on the exchange.

The index depreciated by 1.19% to print its biggest loss in a day since the 3oth of March when it depreciated by 1.90%.

Decline in Dangote Cement and MTN Nigeria shares weighed on the Nigerian Stock Exchange

The Nigerian Stock Exchange NGX, closed on a negative note today largely occasioned by the decline in the shares of MTN Nigeria and Dangote Cement.

The shares of MTN Nigeria suffered a market value decline of 4.65%, to close the day lower at N162 per share as investors continue to price in the impact of regulatory restrictions on new SIM sales and activations on the revenue and earning power of the company. Mobile subscribers on the MTN’s network declined by 5 million to 71.5 million in the first quarter of 2021.

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This bearish sentiments in the shares of MTN and Dangote Cement both led to the NGX All-Share Index and market capitalization decline of 0.92%, to close lower at 39,111.30 index points and N20.468 trillion respectively.

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Stock Market

Conoil, Courtville soar as NGX ASI plummets

The All-Share Index decreased by -0.81% to close at 39,114.73 from 39,433.81.

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CONOIL consolidates success despite industry worries

The Nigerian Stock Exchange market maintained the bearish momentum speculated by analysts. The All-Share Index decreased by -0.81% to close at 39,114.73 from 39,433.81.

• Nigerian Stock Exchange market value currently stands at N20.64 Trillion. Its Year-to-Date (YTD) returns currently stand at -2.87%.
• The market breadth closed negative with the bears as CONOIL led 25 Gainers, and 20 Losers topped by BOCGAS showing a hint of consolation.

Top gainers

1. CONOIL up +10.00% to close at N18.70
2. COURTVILLE up +10.00% to close at N0.22
3. SEPLAT up +9.99% to close at N604.40
4. LINKASSURE up +8.62% to close at N0.63
5. ACCESS up +5.19% to close at N8.10

Top losers

1. BOCGAS down -9.99% to close at N12.25
2. LIVESTOCK down -9.90% to close at N1.73
3. SCOA down -9.66% to close at N2.15
4. REDSTAREX down -9.59% to close at N3.11
5. REGALINS down -9.38% to close at N0.29

Outlook

The Nigerian stock market continued the bearish run held yesterday as it posted losses once again at the end of the trading session today.

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• Market sentiments tend toward consolidations as the NGX ASI closes with 25 Gainers and 20 Losers.
• Nairametrics advises cautious buying in this era of growing uncertainties.

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