2019 CLOSURE OF REGISTER – DIVIDENDS AND BONUSES

CompanyDividend/ShareBonusClosure of RegisterAGM DatePayment Date
Neimeth Pharmaceutical Int’l PlcNil1 for 1018th – 23rd January 20196th February 2019N/A
Vitafoam Nigeria Plc                                          N0.25k1 for 518th – 22nd February 20197th March 20198th March 2019
SIAML Pension ETF 40N1.17Nil25th January 2019N/A28th January 2019
Newrest ASL Nigeria Plc20kNil29th  April –  3rd May 201916th May 201917th  May 2019
Transcorp Hotels Plc15kNil28th February – 1 March 201915th March 201919th March 2019
Nigerian Breweries PlcN1.83kNil7th -13th March 201917th May 201920th May 2019
Transnational Corporation of Nig. Plc3kNil1st – 5th March 201915th March 201919th March 2019
Zenith Bank PlcN2.50Nil11th – 15th March 201918th March 201918th March 2019
United Capital Plc30koboNil14th – 20th March 201928th March 20192nd April 2019

Courtsey : NSE

Stockbrokers knock FG for not reconstituting SEC board

Chartered Institute of Stockbrokers (CIS) has faulted the Federal Government’s failure to reconstitute the Securities and Exchange Commission (SEC) board, after almost five years that the previous board had been dissolved.

Past president of the institute, Michael Itegboje, at the Institute of Stockbrokers’ Interactive Forum with Vice President Yemi Osinbajo in Lagos, noted that such regulatory lapses threaten efforts to restore confidence in the market. Itegboje said: “Since 2015, SEC does not have a board. We do not think that SEC is vital to Nigeria’s economy. There is more emphasis on money market.

“It is high time the SEC board was put in place. If the capital market must play its role in the economy, SEC must be accorded same respect as the Central bank of Nigeria (CBN).”

In the financial sector, the money market is regulated by CBN, while SEC takes care of the capital market.Acting director-general, SEC, Ms Mary Uduk, advocated privatisation of moribund government enterprises by using the capital market as a platform.

This, she said, will not only ensure revival of the companies, but also boost to the stock market capitalisation. Uduk also underscored the essence of the commission’s Ten-Year Development Plan designed to make the Nigerian capital market more competitive. Osinbajo, at the forum, assured market participants that SEC would be respected as the apex capital market regulator.

The vice president, who was represented by the Minister for Trade and Investment, Dr. Okechukwu Enelama, said: “The vice president is presently involved in an active campaign and would have loved to be here.“I assure you that the SEC must be given the respect it deserves, and we will ensure that all capital market issues are consolidated in the next level. The government will look into it. I will communicate this to the vice president for action to be taken.” He emphasised the need for more collaboration between the government and capital market stakeholders, adding that government was ready to partner with the market to grow the economy.

Government cannot finance its huge infrastructure deficit without the instrumentality of the capital market, he added.“The government has done well in moving the economy forward, considering where it met it in 2015. Nevertheless, there are still a lot more to do. It is obvious that there are important matters we cannot solve without the help of the capital market, especially in infrastructure.

“We have used goodwill and relationship to try and bridge the gap in infrastructure deficit, but the capital market can be a very important part in this aspect; that is why we are having this session,” the vice president said.


Source: The Guardian

Regulators approve CCNN’s merger with Kalambiana

CCNN

Regulators approve CCNN’s merger with Kalambiana

By Emmanuel Abara Benson -October 16, 2018

Nigeria’s capital market regulators – the Nigerian Stock Exchange and the Securities and Exchange Commission – have given approval to the proposed merger between the Cement Company of Northern Nigeria (CCNN) and Kalambiana Cement Company Limited.

CCNN’s Company Secretary, Mr Ahmed Aliyu, disclosed this recently via a statement. According to him, CCNN will, under the arrangement, take over control of all assets, licenses, undertakings, and liabilities belonging to Kalambiana. Note that these include landed properties, intellectual property, employees, etc. This will, however, take effect once the merger process is finalised.

Kalambiana Cement shareholders to get consideration

Meanwhile, the shareholders of Kalambiana Cement Company Limited will be considered for new ordinary shares under an arrangement that will see every 100,000 Kalambiana Cement shares exchanged at a ratio of 19,811,273.

More details of this arrangement are contained in a merger document that will be shared among shareholders of both companies at a yet-to-be-scheduled court-ordered meeting that is anticipated from the Federal High Court.

In the meantime, both companies have intimated their respective shareholders of the development and will be seeking their approval at the anticipated court-ordered meetings.

“The respective board of directors of CCNN and Kalambaina Cement recommend the proposed merger to shareholders and will be seeking their support and approval at the respective court-ordered meetings.

“The completion of the proposed merger is subject to the approval of the respective shareholders of the CCNN and Kalambaina Cement and the final regulatory approvals from SEC, the NSE, Federal Inland Revenue Service, as well as the sanction by the FHC.” -Aliyu

Recall that the Cement Company of Northern Nigeria (CCNN) announced the proposed merger with Kalambiana Cement earlier in June with hopes of increasing the company’s production capacity and market share.

The company was incorporated in 1962 and became listed on the Nigerian Stock Exchange in 1993. Its shares are currently trading at N25.

Investors are still playing defensive

16 October 2018

The start of this trading week can best be characterized as a confused and cautious one for investors. Asian equity markets fell on Monday and continued to be dragged lower on Tuesday, despite at a slower pace. European stocks recovered slightly but appetite to risk remained limited as a cautious mood continued to dominate U.S. markets flipping between gains and losses throughout most of Monday’s session to end the day in red as Technology sell-offs dominated the overnight trading session.

There still seems to be lot of uncertainty in global financial markets after last week’s steep selling. The S&P 500 closed below its 200-days moving average on Monday, a signal that won’t be liked by trend-following investors. A failure to return above this average today may encourage further bears to join the crowd. 

Big U.S. banks have delivered better than expected results for Q3. Bank of America, Citi Group, and JP Morgan Chase all managed to rally on EPS. However, all three banks are in negative territory year-to-date, not even the higher and steeper yield curve is helping them, and this should be considered a warning sign. Despite the risk off mode, U.S. Treasury yields remained close to their seven-years high. 

Treasuries’ next move from here will be very important, as it’s becoming more evident that valuations are becoming a major concern. Higher interest rates mean higher required return on equity, so valuations either need to drop further from current levels or earnings should be robust enough to encourage investors to keep taking risk. 

Investors are also struggling with the ongoing U.S.-China trade war, Brexit talks, Italy’s budget clash with Brussels, EM slow down, and the most recent geopolitical tensions between Saudi Arabia and the U.S. However, given the limited reaction in oil prices and the Saudi bond market, investors seem to believe the Saudi-U.S. political conflict will be sorted without incurring further damage to an already struggling global economy.

Source: Hussein Sayed, Chief Market Strategist at FXTM

Reporting for EasyKobo on Tuesday ,16 October 2018 in Lagos, Nigeria

Corporate Actions: 6 red cards and an exit from sugarland

Corporate actions are decisions taken by companies’ boards of directors or management teams, that could have an impact on the firms themselves or shareholders.

Examples of corporate actions include the payment of dividends, closing of shareholders’ registers, announcing qualification dates and Annual General Meeting (AGM) dates.

Here is a review of corporate actions that took place last week and those scheduled for this week.

Corporate Actions that took place last week

LASACO Assurance Plc

LASACO Assurance Plc held an Extraordinary General Meeting (EGM) on the 10th of October. Shareholders approved an increase in the company’s share capital.

An exit from Sugarland

Dangote Sugar Refinery Plc announced the resignation of its Group Managing Director, Abdullahi Sule. Few weeks ago, Nairametrics had reported that Sule might step down following his clinching the APC gubernatorial ticket for Nassarawa State.

Six red cards

The Nigerian Stock Exchange (NSE) placed the shares of DN Tyre & Rubber Plc, FTN Cocoa Processors, International Energy Insurance Plc, Thomas Wyatt Nigeria Plc, Union Dicon Salt Plc and Unic Diversified Holdings Plc on suspension.

The companies were suspended for failure to submit their results as at when required. Union Dicon and Thomas Wyatt have since responded with the release of most recent results.

A N10 billion raise

Eterna Oil Plc this week announced the proposed issuance of a N10 Billion 270 – day Commercial Paper (CP). Funds raised in the CP will be used for working capital and general corporate purposes.

Corporate Actions taking place this week

PZ Cussons Nigeria and Royal Exchange Plc will be holding their Annual General Meetings (AGMs) on the 18th of October 2018.

A week full of board meetings

RT Briscoe, Transcorp Hotels Plc will be holding their board meetings on October 16, 2018.

Guaranty Trust Bank and Royal Exchange Plc will be holding board meetings on October 17, 2018.

Diamond Bank and Africa Prudential Plc will hold board meetings on October 18 2018.

Chemical and Allied Products Plc and Dangote Cement Plc will hold their board meetings on October 19 2018.

Main agenda is to consider Q3 2018 results.

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Banks Performance for the 2017 full year results

      

As more banks release their financial results for 2017 full year, the disappointment is growing among investors. However there is also encouragement from at least banks from what we have seen in the results so far. We have been quietly observing and its now its time to break silence on banking sector.

First City Monument Bank Plc ( FCMB )  – FCMB released full year results that showed a significant spike in loan loss provisions. Non-interest income declined so sharply for FCMB that on a full year basis, PBT  of 11.46 billion declined by 30% y/y. The bank still proposed a dividend of 10 Kobo per unit, but given the current high stock price, that is not very exciting. Many would question the sharp increase in the stock price over the past 6 months given the disappointing result.
Diamond Bank Plc ( DIAMONDBNK ) – Another mid-tier bank, DIAMONDBNK delayed filing of their annual results. This again disappointed investors who wonder about the reason for such a delay.
On the other banks two banks that did excite this earnings season are UBA & ACCESS Bank Plc. We believe these two stocks are to be considered if one is thinking about investing in the Banking sector.
United Bank for Africa Plc ( UBA ). Gross earnings grew 20% to N 461 billion. Net interest income grew 26% to N 207 billion while non-interest income grew 13% to n 118 billion. Profit after tax grew 9% to N 78.59 billion in 2017. Loans and deposits grew 10% as well. The bank showed resilience in spite of increased loan loss provisions. The bank also showed a solid FX trading business in the fourth quarter particularly boosting NIM.
Access Bank Plc ( ACCESS ) – Nigeria’s 5th largest Bank, Access Bank Plc ( ACCESS ) posted Top line earnings growth of 20% to N 459 billion. Net interest income grew 17% to N 163 billion. Non-Interest income grew 4% to N 139 billion. Loans grew by 10% while deposits grew by 7% during the year. Profit after tax declined 13% to N 61.99 billion for full year 2017.
However ACCESS bank was very positive about 2018 on its conference call, management was confident that a reduction in funding cost via the re-pricing and gradual winding down of expensive structured funds would translate to a 70bp expansion in NIM, and that any ‘lost’ revenue on derivative income as its fx swaps mature could be replaced by funding income.
So Stock market can be irrational at times and disappointing Companies can have a better stock performance due to reasons one cannot explain. For example stock price of Unity Bank Plc ( UNITYBNK ) rose 3 times over the past 6 months just because of rumors of investment from a US based private equity firm. The stock market forgot the number of times these rumors have risen regarding this bank and foreign investment in the past. Hopefully this time the rumors are true for the same of shareholders of that bank.
But a rational investor must focus on financial performance as the most important yardstick to evaluate a Company before putting hard earned capital at risk.
The biggest banks of Nigeria are GUARANTY & ZENITHBANK and financial results from both those banks were below expectations and we have seen their stocks recede from recent highs. That does not mean we should not consider these stocks to bounce bank in 2018 after falling to more acceptable levels first. Overall these banks are still not performing banking actions and a big portion of their income is coming from risk free T-bills, FGN Bonds and from forex trading which is just not banking in international terms.