Tag Archives: NSE

United Capital Posts N4bn Gross Earnings, N2bn Profit in Six Months




United Capital Plc, a pan-African investment banking group listed on the Nigerian Stock Exchange (NSE) yesterday announced its results for the half year (H1) ended June 30, 2018. The results are for a period when average yield in the fixed income market moderated to 13.4 per cent in July 2018, thereby lowering yields for most financial services outfits. Also, the equities market closed flattish as the euphoria which greeted the beginning of the year fizzled out in the later part as investors took flight to safety.

However, an analysis of the performance of United Capital Plc showed improved performance. Gross earnings was N3.881 billion in H1 2018, up from N3.876 billion in the corresponding period of 2017. Net operating income stood at N3.1 billion compared with N3.3 billion.

The company adopted cost reduction strategies that saw personnel expenses fall from N636 million to N633 million, while other operating expenses reduced from N809 million to N726 million in 2018.

Consequently, profit before tax improved from N3.378 billion to N3.394 billion, while profit after tax increased from N1.997 billion to N2.010 billion in 2018.

Commenting on the results, the Group Chief Executive Officer of United Capital Plc, Mr. Peter Ashade said the company would continue to pursue a clear and consisted strategy, which will always deliver a strong performance for shareholders.

“And we remain positive about our future opportunities within the Nigerian and African market notwithstanding the challenging macro-economic environment,” he declared.

Ashade took over the running of United Capital July 2018, following the exit of Mrs. Olutoyin Sanni after 12 years in the group.

Until this appointment, Ashade was the Chief Executive Officer of Africa Prudential Plc, a pure play registrar company.

“Ashade’s appointment is an exciting milestone for United Capital Plc. He is a transformative leader with a sterling record of industry leadership, and a deserved reputation for innovation and meticulous execution with customers as the unwavering focal point. He possesses an instinctive understanding of the distinct ethos of United Capital and its performance culture. He has the resolute support of the board of directors at United Capital to cement the heritage of his illustrious predecessors and accelerate the pursuit of our pan-African goals, superior stakeholder value, and client collaborative intensity,’ Chairman, United Capital Plc, Chika Mordi had said.

Ashade had said he was honoured to accept this new appointment , saying United Capital Plc had been at the forefront of product innovation and the development of the capital markets in Africa.

“I look forward to embarking on this new journey and working with the company’s leadership and its many committed employees,” he said.

Great Nigeria Insurance to Delist Shares over Free Float Deficiency



The board of directors of Great Nigeria Insurance (GNI) Plc has opted to delist the shares of the company from the Nigerian Stock Exchange (NSE).

According to the board, the voluntary delisting was as a result of inability to meet the 20 per cent free float requirement of the NSE.

Explaining the factors that informed the decision, GNI said over the last five years, there had been little or no trading activity on the shares held by the minority shareholders.

“There has also been a considerable fall in trading volumes over the last 12 months with an average daily volume of 1, 200 units during the period March 2017 to March 2018.

Shareholders are not benefiting from the continued listing as shareholders are not getting any exit opportunity and their investments have been locked up and they find it difficult to dispose of their shareholding.

Neither the company has benefitted as the company’s shares continue to trade at a significant discount to the intrinsic value,” the company added.

Also, GNI’s free float currently stands at 16.03 per cent, significantly below the NSE’s minimum free float of 20 per cent. With this Free Float deficiency, the NSE could take enforcement action even though

The Quotations Committee of the  National Council of The Exchange has extended the curing period to May 2020. We do not expect that this deficiency will be cured during that period and we expect the NSE to initiate a regulatory delisting,” it said.

GNI noted that through the voluntary delisting, the directors would be exercising a regulatory provision that will shield the company from any enforcement action that the exchange may effect, which may arise as a result of the outstanding free float deficiency.

“Furthermore, through the voluntary delisting process, the company will be providing an exit consideration to minority shareholders who do not wish to remain in an unlisted company,” it added.

GNI added that the delisting will afford the company to carry an imminent corporate restructuring exercise to take advantage of emerging opportunities and may consider re-listing the company in the future if the market conditions are favourable.

“The voluntary delisting will not occasion loss of business opportunities as there are similar unlisted insurance companies who are commanding significant share of the insurance market. Also, minority shareholders will not lose their shares because of the voluntary delisting and such shareholders may retain their membership in the unlisted company,” it said.

NSE market cap closes on a positive note





The Nigerian Stock Exchange has closed this week’s trading activities on a positive.

The exchange recorded its first gain this week when the market capitalisation and the All Share Index closed on Friday at 13,260 trillion Naira and 36,603.44 basis points respectively.

Both the Market capitalisation and the All Share Index gained 0.37 per cent. While the market capitalisation gained 49 billion Naira, the All Share Index gained 133.39 basis points.

Investors exchanged 680 million shares worth 3.9 billion Naira in 3,677.00 deals.

Weekly summary

A total turnover of 1.665 billion shares worth N14.834 billion in 18,795 deals were traded this week by investors on the floor of the Exchange in contrast to a total of 1.219 billion shares valued at N17.333 billion that exchanged hands last week in 17,362 deals.

The Financial Services Industry (measured by volume) led the activity chart with 1.056 billion shares valued at N10.224 billion traded in 10,056 deals; thus contributing 63.45% and 68.93% to the total equity turnover volume and value respectively.

The Services Industry followed with 264.289 million shares worth N549.693 million in 592 deals. The third place was occupied by Conglomerates Industry with a turnover of 134.374 million shares worth N199.566 million in 1,286 deals.

Trading in the Top Three Equities namely – Sterlng Bank Plc, Medview Airline Plc and Zenith International Bank Plc (measured by volume) accounted for 719.386 million shares worth N4.209 billion in 1,961 deals, contributing 43.20% and 28.38% to the total equity turnover volume and value respectively.

Also traded during the week were a total of 340 units of Exchange Traded Products (ETPs) valued at N33,660.20 executed in 6 deals, compared with a total of 79,304 units valued at N1.491 million that was transacted last week in 18 deals.

A total of 17,251 units of Federal Government Bond valued at N17.943 million were traded this week in 18 deals compared with a total of 13,517 units valued at N14.899 million transacted last week in 30 deals.

Index movement

The NSE All-Share Index and Market Capitalization depreciated by 2.11% to close the week at 36,603.44 and N13.260 trillion respectively.

Similarly, all other indices finished lower with the exception of the NSE Insurance Index that appreciated by 0.08%

Sixteen (16) equities appreciated in price during the week, lower than twenty-one (21) in the previous week. Fifty-nine (59) equities depreciated in price, higher than fifty-five (55) equities of the previous week, while ninety-four (94) equities remained unchanged higher than ninety-three (93) equities recorded in the preceding week.

New Listing; Listing of the FGN Green Bond

A total volume of 10,690,000 units of 13.48% FGN DEC 2022 was admitted to trade at the Exchange today Friday, July 20, 2018.

Suspension lifted

Meanwhile, the NSE has lifted the suspension it had placed on Royal Exchange Plc.

Royal Exchange Plc, which was one of the eight (8) companies suspended, has submitted its Audited Financial Statement for the year ended 31 December 2017.

In view of the submission of its accounts and pursuant to Rule 3.3 of the Default Filing Rules, which provides that: “The suspension of the trading in the issuer’s securities shall be lifted upon submission of the relevant accounts provided The Exchange is satisfied that the accounts comply with all applicable rules of The Exchange.

“The Exchange shall thereafter also announce through the medium by which the public and the SEC was initially notified of the suspension”; the general public is hereby notified that the suspension placed in the trading of the Company’s shares has been lifted effective today, 20 July 2018.

Royal Exchange Plc, along with the eight (8) other listed companies were suspended for non-compliance with Rule 3.1, Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of The Exchange (Issuers’ Rules) (“Default Filing Rules”), which provides that; “If an Issuer fails to file the relevant accounts by the expiration of the Cure Period, The Exchange will:

(a) Send to the Issuer a “Second Filing Deficiency Notification” within two (2) business days after the end of the Cure Period;

(b) Suspend trading in the Issuer’s securities; and

(c) Notify the Securities and Exchange Commission (SEC) and the Market within twenty- four (24) hours of the suspension.”