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Stock Market

NEM Insurance Plc distributes 4.7 billion bonus shares worth N2.36 billion

NEM Insurance Plc has announced the distribution of bonus shares of 4.7 billion at N0.50k worth N2.36 billion.

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NEM Insurance

The Management of NEM Insurance Plc has announced the distribution of bonus shares of 4.7 billion at N0.50k worth N2.36 billion.

The disclosure is part of the resolutions passed at the Extra-Ordinary General Meeting of the firm, which was sent to the Nigerian Stock Exchange market, and seen by Nairametrics.

Nairametrics gathered that the bonus shares will be issued to existing members of the Company, subject to the filing of the increase in Authorized Share Capital of the Company at the Corporate Affairs Commission, as approved at the AGM held on 18th of June 2020.

  • According to the notice, the 4.7 billion ordinary shares of N0.50k will be distributed among members, whose names are found in the Company’s Register at the close of business on 16th of December, 2020, in the proportion of nine (9) new shares of 50 kobo each for every ten (10) existing shares of 50 kobo each, held by them.
  • The shares distributed shall rank pari pasu with the existing shares in all respect and will be treated for all purposes as capital and not as income

The breakdown on how the bonus share was arrived at, showed that the total sum of N2,359,748,543.5 (approximately N2.36 billion) was transferred from the company’s share premium account and retained earnings account to the share capital account, wherein the bonus shares (fully paid) will be distributed from. The breakdown of individual contribution shows that;

  • N2,087,197,543 was distributed from the firm’s retained earnings account
  • N272, 551,000 was distributed from the firm’s share premium account.

What you should know

  • Nairametrics had earlier reported a 482% increase revenue projection by NEM Insurance Plc for Q1 2021.
  • Nairametrics gathered that the register of members and transfer books of the company will be closed from 17th-18th of December, 2020. In accordance to this, bonus shares will be distributed to shareholders whose names are on the register before the date of closure.
  • According to Investopedia, a bonus share, also known as a scrip issue or a capitalization issue is an offer of free additional shares to existing shareholders. Shareholders can sell their shares to meet their liquidity needs. In addition, Bonus shares increase a company’s share capital but not its net assets.

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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