Investors Lose N52.35bn as NGXASI Dips by -0.19%; Debt Market Size Drops by 0.22%; IEFX Rate Appreciates by 0.18%
Equities
NGX
Nigerian Stock Market retracts to close negative at the end of today’s trading session.
The NGX All-Share index dipped by -0.19% to close at 51,805.41 basis points as against the +1.90% gain recorded at the end of the previous trading session. In Naira terms, the NGX Market CAP records N52.35bn loss
YTD, the NGXASI Stands at +21.28%
The total volume traded declined by -1.79% to close at 337.56mln, valued at N5.55bn and traded in 7,684 deals. GTCO was the most traded stock by volume with 51.96 million units traded, while GTCO was the most traded stock by value which is put at N1.23 billion.
Sectoral performance was broadly positive as eight (8) NGX sector indices closed northward, six (6) closed southward while our (4) closed flat. The NGX Insurance Index topped with +2.14% gain as against NGX Premium Index which dipped by -1.32%
Gote index closed green with +0.07% gain while Toni index also closed green with +0.52% gain recorded.
At the close of trading, market recorded 33 gainers to 13 losers and 55 unchanged. OKOMUOIL topped the list of gainers as NAHCO topped the list of losers.
Sectoral Indices
Volume and Value Contribution
GTCO led the volume chart with 15.67% contribution and closely followed by TRANSCORP and FBNH.
GTCO led the value chart with 24.39% contribution and closely followed by NB and MTNN.
NGX Earnings Summary
No Financial statement was released on the Nigerian Exchange today
NGX Corporate News
Honeywell Flour Mills Plc announced that its board meeting will now hold on May 10th 2022.
Veritas Kapital Assurance Plc has announced the appointment of Mr. Emmanuel Etuh as Non-Executive Director of the company.
May & Baker Nigeria Plc will hold its AGM on June 2nd 2022,
NASD OTC Exchange
The NASD market index inched up by +1.29% to close at 709.91 basis points as against the -0.25% loss recorded previously.
The total volume traded declined by -51.40% to close at 377,862 units valued at N28.87m and traded in 32 deals.
At the close of trading, NASD OTC market recorded 2 gainer (s) to 1 loser(s)
Volume and Value Contribution
SDFCWAMCO led the volume chart with 56.28% contribution
SDFCWAMCO led the value chart with 85.96% contribution
NASD Earnings Summary
No Financial statement was released on the NASD OTC Exchange today.
NASD Corporate News
No Corporate action/news was announced on the NASD OTC Exchange today.
Global Indices
On the global scene, the Mexican IPC Index leads the top five gainers with 1.35% gain while the Isreal TA-100 Index tops the top five losers with -2.60% loss as of 4pm Nigerian Time
Nigeria’s top banker Emefiele in eye of the storm
Godwin Emefiele, governor of the Central Bank of Nigeria, is increasingly in the spotlight as indications that he is eyeing the presidential ticket of the ruling All Progressives Congress (APC) has triggered more reactions.
FG’s growing appetite for debt ignores fiscal alarm bells
Nigeria is not heeding calls to cut compulsive spending and manage a ballooning debt service cost that the International Monetary Fund (IMF) predicts will gulp 92 percent of public revenues this year. Rising global interest rates has made it more expensive for frontier and
Airlines’ fuel imports plan stalled, NNPC intervenes
Airlines’ plans to start importing aviation fuel amid price hikes have been stalled by lack of infrastructure and logistic issues. Following the requests by airlines, the federal government had a month ago agreed to grant licences to airlines to import aviation fue
Biggest cement producers grow Q1 revenue to N600bn
Nigeria’s biggest cement producers, namely Dangote Cement Plc, BUA Cement Plc and Lafarge Africa Plc, raked in N600 billion in the first quarter (Q1) of this year, as their revenues rose despite the economic headwinds in the country.
2023: Goodluck Jonathan won’t contest, says spokesman
Goodluck Jonathan, a former president of Nigeria will not seek reelection on the All Progressives Congress (APC) platform in the 2023 elections, his spokesman has said. This puts an end to several months of speculation that he was planning to put up a battle for the presidential seat once again.
Political parties demand two months extension of primaries timeline
The 18 registered political parties in Nigeria have demanded the extension of the timelines for the conduct of primary election by two months to enable them carry out a credible and hitch-free exercise. Yabagi Sani, chairmanship of the Inter Party Advisory Council (IPAC) made the request at a consultative meeting
FG awards contract for dredging of Escravos channel to revival Warri Port
Determined to revive the port in Delta State, the Federal Government said it has awarded a contract for remedial dredging of Escravos channel. Mohammed Bello-Koko, managing director of the Nigerian Ports Authority (NPA), who disclosed this in Warri on Tuesday, said the dredging of the channel will help to expand the the channel and enable bigger vessels to visit the port in Delta State.
The dredging, he said, which has started and is about halfway done, will enable ports in Delta State to have a better draft, receive bigger vessels and record less incidents of vessels running aground when completed.
“We all know that the breakwaters collapsed about 10 years ago, and there has been high siltation resulting in reduction of the draft from 7 meters to 3 meters in some places,” Bello-Koko said..
Fuel scarcity looms as petrol marketers lament delay in N500bn claims
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has warned Nigerians of the looming fuel scarcity in the country on the back of the N500 billion claims the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) owes its members
Sovereign Trust Insurance Plc Declares N489.12m PAT in Q1’22 Results;(SP:N0.26K)
Sovereign Trust Insurance Plc released its Q1 2022 Unaudited results for the period ended March 31st, 2022.
Key Highlights
- Gross Premium grew by 36.83% from N5.38bn to N7.36bn
- Profit before tax stood at N609.52m
- Profit after tax stood at N489.12m
- Share Price Currently Stands at N0.26k
JPMorgan Cuts Nigeria from Overweight
Emerging market sovereign debt is at the “mercy” of the Federal Reserve’s interest rate decisions, JPMorgan analysts said in a note on Monday, as the U.S. central bank’s rate raises drain capital from developing markets.
JPMorgan removed Nigeria from its list of emerging market sovereign recommendations that investors should be ‘overweight’ in, saying the country had not taken advantage of high oil prices, while adding Serbia and Uzbekistan.
Last week, the Fed raised its benchmark overnight interest rate by half a percentage point, the biggest jump in 22 years, as it seeks to tame high inflation while its rate increases also buffet higher-yielding emerging markets.
Nestle Nigeria Plc Declares N17.98bn PAT in Q1 2022 Results,(SP:1400.00k)
Nestle Nigeria Plc released its Q1 2022 Unaudited results for the period ended March 31st, 2022.
Key Highlights
- Revenue grew by 26.32% from N87.26bn to N110.23bn
- Profit before tax stood at N27.85bn
- Profit after tax stood at N17.98bn
- Share Price Currently Stands at N1400.00k
UAC of Nigeria Plc Records N642.1m PAT in Q1 2022 Results,(SP:N12.20k)
UAC of Nigeria Plc released its Q1 2022 Unaudited results for the period ended March 31st, 2022.
Key Highlights
- Revenue grew by 25.63% from N22.02bn to N27.67bn
- Profit before tax stood at N979m
- Profit after tax stood at N642.1m
- Share Price Currently Stands at N12.20k
UAC of Nigeria PLC announced double digit growth in revenue, operating profit, and earnings per share for the first quarter ended 31 March 2022.
Highlights
- Revenue of ₦27.7 billion, 25.6% increase year on year. Topline growth across all business segments: Animal Feeds and Other Edibles (+18.0%), Paints (+81.2%), Packaged Food and Beverages (+9.9%), and Quick Service Restaurants (+30.1%).
- Gross profit 26.5% higher YoY at ₦5.1 billion; Gross margin of 18.3% is 13 bps higher as price increases and higher sales offset rising raw material costs.
- Operating profit 62.2% higher YoY at ₦1.9 billion, margin expansion of 152 bps to 6.8%, led by the Paints segment. Underlying operating profit of ₦1.5 billion, is 28.6% higher YoY, after adjusting for the profit of N386 million recognised on the sale of non-core investment property.
- Profit before tax 4.8% lower than Q1 2021 at ₦979 million. Profitability was impacted by higher finance costs YoY.
- Earnings per share 50.3% higher than Q1 2021 at 18 kobo. The increase reflects the benefit of recognising 100% of UAC Foods Limited’s earnings versus 51% in Q1 2021.
Commenting on the results, Group Managing Director, Fola Aiyesimoju, stated: “We delivered double-digit growth in revenue, operating profit, and earnings per share for the first quarter and continue to manage escalating raw material and energy costs. Working capital levels and short-term debt are elevated on account of the decision to increase inventory holding in the Animal Feeds and Other Edibles segment to mitigate the risk of supply chain disruptions. We are closely monitoring inventory levels and leverage and expect the negative impact of interest expense to unwind asinventory levels normalise. Earnings per share increased 50% year on year, reflective of the earnings accretive acquisition of the 49% stake in UAC Foods which we did not own in the first quarter of 2021.
For all our businesses, the impact of rising inflation is a key focus and our management teams remain focused on proactive pricing. We are mindful of the recent events in Russia and Ukraine and resultant supply disruptions of key commodity inputs including wheat, vegetable oil, maize and fertilizer. We remain committed to executing our key priorities to simplify our structure and processes, drive profitable growth across our core operating segments, and enhance shareholder value.”
Dangote Industries Funding Plc Series 1 Bond Issuance is Coming Soon
We are pleased to inform you of the imminent launch of the Dangote Industries Funding PLC (the “Issuer”) Series 1 Bond offer comprising of Tranche A – 7-year and Tranche B – 10-year, Fixed Rate Senior Unsecured Bonds, under its ₦300 billion Debt Issuance Programme (the “Offer”). The Issuer is a funding vehicle incorporated by Dangote Industries Limited (“Dangote Industries”, “DIL” or the “Group”) to access the domestic capital markets.
Dangote Industries is one of the leading, diversified and fully integrated conglomerate with operations in Nigeria and Africa across a wide range of industries, including cement, sugar, salt, condiments, packaging, energy, fertiliser and petrochemicals. Its core business focus is to provide local, value-added products and services that meet the “basic needs” of the African populace through the construction and operation of large-scale manufacturing facilities in Nigeria and across Africa. DIL is focused on building local manufacturing capacity to generate employment, reduce capital flight from Africa and increase local value additions.
The Group has 11 distinct business lines, with the cement, sugar and salt business currently contributing majority of the group earnings. These subsidiaries are industry leading players with strong brand values, underpinned by long operational track record, diverse customer base, ongoing investments in capacity expansion and control over their respective value chains. DIL also has two project companies, Dangote Oil Refinery Company Limited (“DORC”) and Dangote Fertilizer Limited (“DFL”), located at the Lekki Free Zone in Lagos State, who (together with DIL) will serve as co-obligors on the Offer. DORC is a 650,000 b/pd integrated crude oil refinery and petrochemical plant, which is expected to be Africa’s largest oil refinery, while DFL is expected to be Africa’s largest granulated urea fertiliser manufacturing facility, with a production capacity of up to 2.8 Mtpa.
DIL is currently rated AA+ by GCR and AA (ngr) by Fitch Ratings, and plans to utilise the net proceeds from the Series 1 bond issuance to finance the Dangote Petroleum Refinery Project which is currently scheduled to commence operations in the first half of 2023.
Other indicative terms of the Offer are as presented below:
| Issuer Dangote Industries Funding PLC Sponsor Dangote Industries Limited Co-Obligors Dangote Oil Refining Company Limited and Dangote Fertiliser Limited Programme Size ₦300 billion Issue Description Series 1 Fixed Rate Senior Unsecured Bonds Lead Issuing House Standard Chartered Capital and Advisory Nigeria Limited Joint Issuing Houses Afrinvest Capital Limited; Meristem Capital Limited; Stanbic IBTC Capital Limited; Vetiva Capital Management Limited; Absa Capital Markets Nigeria Limited; Coronation Merchant Bank Limited; Ecobank Development Company Limited; FBNQuest Merchant Bank Limited; FCMB Capital Markets Limited; Greenwich Merchant Bank Limited; Quantum Zenith Capital & Investments Limited; Rand Merchant Bank Nigeria Limited; and United Capital PLC |
| Issuer Rating AA+ (GCR); AA (ngr) (Fitch) Expected Issue Rating AA+ (GCR); AA (ngr) (Fitch) Tranche A B Tenors 7 Years 10 Years Pricing Range [●]% – [●]% [●]% – [●]% Maturity Date [●] 2029 [●] 2032 Par Value / Issue Price ₦1,000 per unit/100% of Par Value Offer Mode Offer for Subscription via Book Build Coupon Basis Semi-annual, Fixed Rate Units of Sale Minimum of ₦10,000,000 (10,000 units at ₦1,000/unit) and multiples of ₦1,000,000 thereafter Redemption / Payment Basis Bullet repayment Relationship between the Issuer and Sponsor The Issuer is incorporated as a wholly owned subsidiary of the Sponsor Listing FMDQ Securities Exchange and/or The Nigerian Exchange Limited Use of Proceeds Financing the Dangote Petroleum Refinery Project |
