DMO Lists $300m Diaspora Bonds and $3bn Eurobonds on NSE
The Debt Management Office (DMO) on Thursday, December 21, 2017, listed on The Nigerian Stock Exchange (NSE), the $300 million Diaspora Bond issued in June and the $3 billion Eurobonds issued in November at the International Capital Market (ICM).
The Nigerian Stock Exchange (“NSE” or “The Exchange”) held its 2017 Market Recap & Outlook for 2018 on Tuesday, January 16, 2018, at the Stock Exchange House, Lagos. This annual event is a forum for the Chief Executive Officer of NSE, Mr. Oscar N. Onyema, OON, to brief the stockbroking community, analysts, media and other stakeholders, on the performance of the market in the preceding year and give prognosis for the market for the new year, 2018.
Trading in securities listed on The Exchange are conducted through Dealing Members of The Nigerian Stock Exchange. To be eligible for membership on the NSE, Broker-dealers must meet specific requirements set by The Nigerian Stock Exchange. These requirements are stated in the Rules for Registration as a Dealing Member of The Nigerian Stock Exchange.
Upon approval of a Dealing Member’s application, the firm is required to satisfy other requirements detailed in the Post-License Requirements document. After these requirements are satisfied, the Dealing Member’s registered stockbrokers are issued a ‘unique identification code’ by The NSE which enables them trade on behalf of the firm.
As a provision of membership, each Dealing Member is charged annually and the fee covers (a) maintenance of trading terminals (b) rented “space” on the trading floor, (c) Dealing Member fees and (d) authorized clerkship for each stockbroker it employs.
Authorized Clerks (Stockbrokers)
Dealing Members rely on authorized clerks to service their clients (investors). These brokers act on behalf of Dealing Member to access the market and assist the investors in buying, selling or dealing in securities. The brokers can only execute trades on The NSE using the unique identification code assigned to them.
To be eligible for admission as an Authorized Clerk, the individual must:
- have passed the appropriate Chartered Institute of Stockbrokers professional examination as prescribed by law
- have undergone training recognized and prescribed by The Exchange
- be registered with The Nigerian Stock Exchange
- be of good character and integrity
- be recommended by a Dealing Member who will be liable for all transactions made on its behalf
- have agreed to comply with such other requirements for membership as Council may prescribe from time to time
The Nigerian Stock Exchange (“NSE” or “The Exchange”) is pleased to announce the recipients of the 2017 edition of its prestigious NSE CEO Awards. The winners were unveiled at the awards ceremony on Wednesday, December 13, 2017, at the Stock Exchange House, Lagos.
The Nigerian Stock Exchange (NSE) on Monday, November 27, 2017, listed by introduction, eight hundred million (800,000,000) ordinary shares of Global Spectrum Energy Services Plc at N5 Per Share on its Main Board. Global Spectrum Energy Services Plc is an integrated Oil & Gas Offshore Support Vessel Services Company operating in key oil and gas producing areas in West Africa.
Event: International Breweries reports Q2 2018 (end-Sep) results
Implications: Negative reaction expected by the market
Positives: Gross margin expanded by 39bps y/y and 133bps q/q
Negatives: Pre-tax and post-tax losses widened to –N1.2bn and –N1.4bn respectively
The NSE published International Breweries’ Q2 2018 (end-Jun) results today. They showed that sales of N8.0bn grew by 20% y/y. However, the company reported pre-tax and post-tax losses of –N1.2bn and –N1.4bn respectively compared with –N216m in Q2 2017. The sales growth and a 39bp y/y gross margin expansion was not enough to offset a 41% y/y rise in opex and a –N945m reported on the other gains/losses line, leading to the pre-tax loss. Stripping out the –N945m, pre-tax loss was –N279m. The after tax loss widened to –N1.4bn due to a tax figure of –N190m versus N0 in Q2 2017. On a sequential basis, sales declined by -16% q/q – the decline, we attribute to seasonality. The end-Sep quarter is typically one of the weaker quarters for the brewers. Despite a gross margin expansion of 133bps q/q, the company reported losses due to the q/q sales decline, 99% q/q and 25% q/q rises in finance costs and operating expenses respectively and the operating exchange loss of -N945m.
Compared with our estimates, Q2 sales were behind by 8%. We had forecast PBT and PAT of N1.4bn and N984m respectively. On an annualised basis, H1 sales are tracking behind consensus FY estimate by 9%. PBT and PAT are tracking significantly behind consensus’ forecasts of N6.7bn and N4.5bn respectively.
International Breweries’ Q2 2018 results makes the third poor set of end-Sept numbers reported by the brewers following Nigerian Breweries and Guinness Nigeria. Although all three companies managed to grow their topline y/y, their bottom lines surprised negatively. For International Breweries, operating expenses and the operating exchange loss weighed on earnings. We had been more positive on International Breweries because of the favorable segment (value segment) it operates in and its merger with Pabod Breweries and Intafact Breweries. We await comments from management on both the opex and other gains/losses lines.
Year to date, International Breweries shares have gained 170% (we attribute the rally partly to the merger news) and have significantly outperformed the broad index which is up 37% this year.
We rate International Breweries shares Underperform. Our estimates are under review.
International Breweries Q2 2018 (end-Sep) results: actual vs. FBNQuest Research estimates (N millions)
Heavy transactions in the shares of some banks, especially GTBank and Zenith Bank, last week, lifted the volume of shares traded as a turnover of 872.892 million shares worth N14.016 billion was recorded in 19,047 deals by investors on the floor of the Nigerian Stock Exchange (NSE).
This volume of shares traded, was however higher than a total of 1.555 billion shares valued at N13.504 billion that changed hands in 18,409 deals during the preceding week.
Specifically, at the close of transactions last week, the financial services industry led the activity chart with 692.380 million shares valued at N8.940 billion traded in 11,464 deals; thus contributing 79.32 per cent and 63.78 per cent to the total equity turnover volume and value respectively.
The conglomerates industry followed with 63.658 million shares worth N123.149 million in 896 deals.
The consumer goods industry with a turnover of 61.676 million shares worth N3.034 billion in 3,469 deals.
Trading in the top three equities namely – Guaranty Trust Bank Plc, Zenith International Bank Plc and United Bank for Africa Plc) accounted for 270.638 million shares worth N7.213 billion in 3,902 deals, contributing 31.01 per cent to the total equity turnover volume
Also traded during the week were a total of 34,573 units of Exchange Traded Products (ETPs) valued at N2.091 million executed in 14 deals compared with a total of 60 units valued at N2, 265.60 transacted last week in 6 deals.
A total of 7,279 units of Federal Government Bonds valued at N7.139 billion were traded this week in 12 deals, compared with a total of 1,041 units valued at N1.040 million transacted last week in 10 deals.
The NSE All-share index and market capitalisation depreciated by 0.71 per cent to close the week at 36,587.31and N12.594 trillion respectively.
Similarly, all other Indices finished lower during the week with the exception of the NSE Banking and NSE Pension Indices that appreciated by 0.03 per cent and 0.02 per cent respectively while the NSE ASeM Index closed flat
23 equities appreciated in price during the week, lower than 41 of the previous week. 34 equities depreciated in price, higher than 23 equities of the previous week, while 114 equities remained unchanged higher than 107 equities recorded in the preceding week.
Meanwhile the NSE has announced that the UAC of Nigeria Plc has through its stockbrokers; Stanbic IBTC Stockbrokers Limited and Afrinvest Securities Limited submitted an application to the Exchange for approval and listing of a rights issue of 960,432,193 ordinary shares of 50 Kobo each at N16.00 per share.
According to the Exchange, the rights issue is on the basis of one new ordinary share for every two ordinary shares held. The qualification date for the rights issue was, Thursday October19, 2017.
Nigerian Stock Exchange (NSE) market capitalisation of listed equities improved by N52billion
Mid-week equity transactions on the Nigerian Stock Exchange (NSE) closed upbeat yesterday, occasioned by price gains recorded by major blue-chip stocks especially Nestle and Dangote Cement, causing market capitalisation to appreciate by N52billion.
Specifically, at the close of transactions yesterday, market capitalisation of listed equities improved by N52billion or 0.43 per cent to N12.100trillion from N12.048trillion traded the previous day.
The All-Share index increased by 152.13 basis points to 35103.40 points from 34951.27 recorded on Tuesday. Also, investors traded 136.403 million shares worth N1.269billion in 2860 deals, higher than 500.299 million units valued at N3.620billion exchanged in 3120 deals during the previous day.
Further review of yesterday’s transactions showed that Nestle Nigeria Plc led the gainers’ table for the day, growing by N4.76 kobo to close at N1210.00.
Dangote Cement followed with a gain of N4.00 to close at N210.00, Zenith International Bank gained N0.39 kobo to close at N22.51 kobo, International Breweries also appreciated by N0.32 kobo to close at N36.00.
Stanbic IBTC increased by N0.25 kobo to close at N39.75 kobo. Champion Breweries appreciated by 0.18 kobo to close at N2.39 per share. Fidson added 0.14 kobo to close at N3.24 per share. C&I Leasing gained 0.06 kobo to close at N1.45 per share. African Prudential also added 0.05 kobo to close N3.36 per share.
Conversely, Mobil Oil (11 Plc) recorded the highest loss for the day, declining by N2.01 kobo to close at N167.99 kobo, Nigerian Breweries trailed behind shedding N1.50 kobo to close at N165.50 kobo. Guaranty Trust Bank fell by N0.40 kobo to close at N39.20 kobo, Lafarge WAPCO was down N0.24 kobo to close at N49.78 kobo.
PZ Industries depreciated by N0.22 kobo to close at N25.00. UACN shed 0.19 kobo to close at N15.00 per share. UAC-Properties lost 0.15 kobo to close at N2.85 per share.
United Bank for Africa dropped 0.14 kobo to close at N8.51 per share. May & Baker also lost 0.12 kobo to close at N2.64 per share.
The result showed that Jaiz Bank was the most active stock at the end of transactions, exchanging 35.853 million shares worth N26.064million, Meyer Paint followed with account of 20.887 million shares valued at N14.005million.
FBNHoldings traded 6.687 million shares at N36.775million, Diamond Bank sold 5.428 million shares worth N6.040million, while Access Bank Plc traded 4.878 million shares valued N46.201million.