Tuesday, June 12, 2012 / The Analyst / Proshare Research

Companies in the NEWS Today – Dangote Cement, UBA Plc, AIICO Insurance Plc, NIGER Insurance Plc, Diamond Bank Plc  Oando Plc, Portland Paints & Products Nigeria Plc  and Sovereign Trust Insurance.

Oando Exploration and Production Limited, OEPL, a subsidiary of Oando Plc, has acquired 40 per cent participating interest in the Qua Iboe field located in Oil Mining Lease, OML 13, and is subject to approval by the regulatory authorities. This followed the recent signing of a farm-in agreement between Oando and Network Exploration & Production Nigeria Limited, NEPN.

The stock share recorded -0.16% in 2008 while it closed flat the following year. It further went down by -0.75% in 2010 while the stock recorded +4.76% gain in 2011 with +1.86% YTD gain witnessed so far in 2012.

United Bank for Africa Plc’s Ghana subsidiary has emerged as topmost player in the Ghanaian banking industry and was adjudged ‘Best Bank in Short term Loan Financing’ even as it scooped several awards at the recently held Banking Awards in Ghana.

In all, UBA Ghana hauled a total of seven awards, which incidentally happened to be the second highest number of awards won on the night to further manifest its enviable credentials among its peers in the industry.

The stock recorded +1.54% and +0.93% YoY gain in 2008 and 2009 respectively while it closed flat in 2010. It further recorded upwards movement in 2011 with +4.86% gains recorded with +0.54% YTD gain witnessed in 2011. The Bank was in the media yesterday but with adifferent news today on the awards given to Ghana subsidiary of the financial institution. 

AIICO Insurance Plc is planning to raise an additional N8 billion capital as part of efforts to remain financially strong and competitive in the country’s insurance market. As a proactive organization, the Insurance firm intends to voluntarily shore up its capital base because the company’s board does not believe they have to wait for statutory directive before it should to do so


 

The stock closed with -4.82% loss in 2009 while flat position was recorded in other periods of review as the additional capital the insurance outfit intends to raise might have positive impact on the stock’s share price. This news was in the media yesterday.

Niger Insurance Plc has promised to add more value to its customers as it at attains 50 years this year. The company’s Managing Director, Justus Uranta said that Niger Insurance has evolved over time to be one of the most sought after insurance providers in the country.

The stock recorded +4.30% YoY growths in 2009 while the stock closed unchanged in other periods of review. The company’s celebration of its golden jubilee is not expected to have any positive impact on the share price as it will eat into the company’s resources and the firm is yet to present its Audited 2011 result. Similar news was also in the media yesterday.

Sovereign Trust Insurance (STI) Plc’s shareholders would get 4 kobo dividend for every unit of share held if the shareholders at its forth coming 2011 Annual General Meeting (AGM) approve the recommendation of the board. The shareholders got 3 kobo in the 2010 financial year representing 1 kobo increase in 2011.

The insurance firm share price closed flat throughout the review periods while the company recorded positive growth in gross premium and PAT in its 2011 Audited result. The consistent payment of dividend by the stocks could lead to more patronage as investors prefer to earn more returns on investments.

Diamond Bank Plc has disbursed N34 billion to 20 entrepreneurs in Kaduna State to support Small and Medium Enterprises (SMEs) North-West Regional Manager of the bank, Mohammed Tsaibu disclosed this yesterday in Kaduna during an interaction with the bank’s customers.

The bank stock recorded -1.06% decline in share price while +0.68% and +0.13% gains were witnessed in 2009 and 2010 in that order. The share price went down by -1.03% in 2011 to erase previous years’ gains while the news on the fund disbursement will only help increase directly the bank’s interest income and earnings.

Alhaji Aliko Dangote has unveiled plans to transform the Dangote Cement Plant in Obajana, Kogi State to the world’s largest cement factory by 2015. With the completion of our 5.25 million metric tonnes per annum (mmtpa) Line 3 Plant, Obajana will become the single largest cement plant in the world with a combined capacity of 10.25 million mmtpa.



 

The stock share price has been closing flat YoY while it has recorded +3.42% gains in 2012. The company also recorded positive growth performance in its Q1 2012 financials while the plan by the cement outfit to transform into the world’s largest cement factory by 2015 will help and spurs some investors to take a long term position.

Portland Paints & Products Nigeria Plc, a fast growing company in the paints manufacturing industry, is delivering good returns on investment despite the challenging business environment due to access to low interest rates fund.

The stock recorded -4.87% loss in 2009 while unchanged position was observed in other periods of review. It also recorded positive growth in its Q1 2012 financials while the delivering of good returns on investment might encourage some investors to look towards the stock.

President of the Nigeria Olympians Association (NOA), Henry Amike, says he is thrilled by First Bank’s policy on sports development and youth empowerment, which has seen the company endorse Blessing Okagbare as its brand ambassador to the 30th Olympic Games holding in London next month.

The bank’s share price witnessed -1.86% loss in 2008 while it erased part of the losses in subsequent years with  +0.36%, +0.22% and +0.56% gains witnessed in 2009, 2010 and 2011 respectively. The stock currently records -1.76% loss in 2012 with positive growth also recorded in its Q1 2012 financials.

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