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The March 2020 Nigerian Capital Market Service Report - Proshare

Service Report	5260 VIEWS
Service Report
5260 VIEWS

Friday, April 03, 2020 03:00 PM / Research@proshareng.com / Header Image Credit: EcoGraphics

Nigerian Stock Market closed the month of March 2020 in red as market witnessed intense sell pressure during the month under review. The NSEASI dipped by -18.75% as against -9.11% loss recorded in the month of February 2020 while the NASD USI closed southwards with -1.10% loss recorded at the end of the month under review as against +0.26% loss in February 2020.

Furthermore, the NSEASI ended Q1 2020 in the negative territory with -20.65% loss recorded as against -1.24% loss in Q1 2019 while the NASD USI closed the quarter southwards with -0.69% loss recorded as against +2.31% gain in Q1 2019.

It is pertinent to state that the -20.65% loss recorded in Q1 2020 exceeds the -14.60% loss reported in 2019 and -17.81% loss in year 2018 respectively. The huge drop cannot be disconnected from the high level of uncertainty created by the outbreak of the COVID-19 which is now a global pandemic.

On market development, regulation and investors protection, the Securities and Exchange Commission issued an exposure of its proposed new rules on crowdfunding to the rules and regulations of the Commission. Comments and inputs are expected to be forwarded to the commission.

Also, the Nigerian Stock Exchange, due to the COVID-19 outbreak, has granted listed companies a sixty (60) day grace period for the submission of their Audited Financial Statements for the year ended 31 December 2019 (AFS), which are due to The Exchange on Monday, 30 March 2020. This become necessary due to the disruption by COVID-19

Data Breakdown

A review of the data on Gainers to Losers at the end of Q1 2020 reflected that eighteen (18) gainers to eighty-five (85) losers were recorded as against thirty-four (34) gainers to ninety-eight (98) losers at the end of year 2019. Fifty-nine (59) stocks were unchanged as at Q1 2020 as against thirty-two in 2019. See Appendix below

Out of the 18 gainers recorded, UBN is the only banking stock that made the list while three (3) insurance stocks made the list and they are;

X-Compliance: Early Filers of 2019 Audited Financial Statements

The Nigerian Stock Exchange in a circular to the market announcing the extension of Time to File Audited Financial Statement for the Year Ended 31 December 2019 stated thus:

'The Exchange understands that some of the internal governance, auditing and other procedures and processes of listed companies may have been disrupted by COVID-19. Therefore, The Exchange is granting listed companies a sixty (60) day grace period for the submission of their Audited Financial Statements for the year ended 31 December 2019 (AFS), which are due to The Exchange on Monday, 30 March 2020.'

A review of the NSE X-Compliance Report showed that only thirteen (13) listed entities with 31 December 2019 year end reporting date have filed their Audited Financial Statements. See table below

SN	Company	Year End	Due Date	Date Filed
1	Infinity Trust Mortgage Bank Plc	31-Dec-19	30-Mar-20	05-Feb-20
2	Nigerian Breweries Plc	31-Dec-19	30-Mar-20	13-Feb-20
3	United Capital Plc	31-Dec-19	31-Mar-20	18-Feb-20
4	Austin Laz & Company Plc	31-Dec-19	31-Mar-20	20-Feb-20
5	Zenith Bank Plc	31-Dec-19	31-Mar-20	21-Feb-20
6	Dangote Cement Plc	31-Dec-19	31-Mar-20	26-Feb-20
7	Tantalizers Plc	31-Dec-19	31-Mar-20	27-Feb-20
8	Custodian Investment Plc	31-Dec-19	31-Mar-20	28-Feb-20
9	Transcorp Hotels Plc	31-Dec-19	31-Mar-20	28-Feb-20
10	Transnational Corporation of Nigeria Plc	31-Dec-19	31-Mar-20	28-Feb-20
11	United Bank for Africa Plc	31-Dec-19	31-Mar-20	28-Feb-20
12	MTN Communications Plc	31-Dec-19	31-Mar-20	28-Feb-20
13	Ardova Plc	31-Dec-19	31-Mar-20	28-Feb-20
Source: NSE X-Compliance Report, Proshare Research

Listings by IPO and Introduction

The market has, so far, witnessed no IPO in year 2020 and 2019 while just one (1) IPO was witnessed all through the year 2018.

In total, only four (4) entities have been listed via IPO in the last eleven (11) years; all four (4) companies recorded negative returns as HONYFLOUR recorded the highest negative return with -88.47% decline recorded while SEPLAT recorded the least decline with -6.92% decline recorded. No positive traction has been achieved via IPO listing over an eleven (11) year period.

Table 1: Entities Listed by IPO on the NSE In The Last 11 Years

In the last eleven (11) years, eighteen (18) entities have taken advantage of the listing by introduction route, the latest being BUA Cement Plc.

Table 2: Entities Listed by Introduction on the NSE In The Last 11 Years

A review of the performance of the eighteen (18) companies listed in the last eleven (11) years reflected that 11% or two (2) of such companies recorded positive returns, 72% or thirteen (13) of such companies recorded negative returns while three (3) of such companies which were listed in 2019, 2018 and 2014 respectively remained flat (No Change in Price) at their listing prices as at March 31, 2020.

MEDVIEWAIR recorded the highest positive return of +8.00%, while AFRINSURE recorded the highest negative return of -94.55%. DANGCEM, the most capitalised listed stock as at March 31, 2020 has so far recorded -3.93% negative returns to date.

In this edition of The Nigerian Capital Market Service Report, we continue the updates of our data section with latest figures on Economic indicators & Upcoming Events in the market and economy. This is to ensure that we deliver a comprehensive capital market service report that helps cover and track innovations, developments as well as service issues in the market effectively.

In all, the March 2020 SSS Quality Report is a snapshot and aide memoire of developments in our market - tracking milestones that the investing public should be aware of. Do feel free to share your opinions/observations and feedback with us vide research@proshareng.com

Thank you.

For: Analyst Editorial Board

Reshu BAGGA

CEO, The Analyst

Appendix 1: Listed Companies Performance in Q1 2020

S/No	Symbol	31-Dec-19	31-Mar-20	% Chg
1	LAWUNION	0.50	0.95	90.00%
2	EKOCORP	4.25	6	41.18%
3	CORNERST	0.45	0.6	33.33%
4	BETAGLAS	53.80	70	30.11%
5	MORISON	0.50	0.6	20.00%
6	UNIONDAC	0.22	0.26	18.18%
7	LIVESTOCK	0.50	0.59	18.00%
8	MAYBAKER	1.93	2.14	10.88%
9	JBERGER	19.90	22.05	10.80%
10	UBN	6.00	6.6	10.00%
11	MOBIL	147.90	160.9	8.79%
12	FLOURMILL	19.70	21.25	7.87%
13	AIICO	0.72	0.76	5.56%
14	CUTIX	1.33	1.4	5.26%
15	CILEASING	5.90	6.2	5.08%
16	ABBEYBDS	1.00	1.05	5.00%
17	NAHCO	2.40	2.5	4.17%
18	BUACEMENT	35.00	35.3	0.86%
19	AFRINSURE	0.20	0.2	0.00%
20	AFROMEDIA	0.34	0.34	0.00%
21	AIRTELAFRI	298.90	298.9	0.00%
22	ALEX	8.10	8.1	0.00%
23	ANINO	0.25	0.25	0.00%
24	ASOSAVINGS	0.50	0.5	0.00%
25	CAPHOTEL	2.75	2.75	0.00%
26	CAPOIL	0.2	0.2	0.00%
27	CHELLARAM	2.78	2.78	0.00%
28	CWG	2.54	2.54	0.00%
29	DUNLOP	0.20	0.2	0.00%
30	ELLAHLAKES	4.25	4.25	0.00%
31	ENAMELWA	22.10	22.1	0.00%
32	ETRANZACT	2.61	2.61	0.00%
33	EVANSMED	0.50	0.5	0.00%
34	FTNCOCOA	0.20	0.2	0.00%
35	GOLDINSURE	0.20	0.2	0.00%
36	GSPECPLC	4.65	4.65	0.00%
37	GUINEAINS	0.20	0.2	0.00%
38	INITSPLC	0.7	0.7	0.00%
39	INTENEGINS	0.38	0.38	0.00%
40	JAPAULOIL	0.20	0.2	0.00%
41	JOHNHOLT	0.56	0.56	0.00%
42	JULI	1.51	1.51	0.00%
43	MBENEFIT	0.20	0.2	0.00%
44	MCNICHOLS	0.46	0.46	0.00%
45	MEDVIEWAIR	1.62	1.62	0.00%
46	MULTITREX	0.36	0.36	0.00%
47	MULTIVERSE	0.20	0.2	0.00%
48	NESF	552.20	552.2	0.00%
49	NIGERINS	0.20	0.2	0.00%
50	NIG-GERMAN	3.62	3.62	0.00%
51	NNFM	4.30	4.3	0.00%
52	NOTORE	62.50	62.5	0.00%
53	NPFMCRFBK	1.15	1.15	0.00%
54	NSLTECH	0.20	0.2	0.00%
55	OMOSAVBNK	0.55	0.55	0.00%
56	PHARMDEKO	1.50	1.5	0.00%
57	PORTPAINT	2.23	2.23	0.00%
58	PREMPAINTS	9.40	9.4	0.00%
59	PRESTIGE	0.55	0.55	0.00%
60	RAKUNITY	0.3	0.3	0.00%
61	REGALINS	0.20	0.2	0.00%
62	RESORTSAL	0.20	0.2	0.00%
63	ROADS	6.60	6.6	0.00%
64	SCOA	2.93	2.93	0.00%
65	SMURFIT	0.29	0.29	0.00%
66	SOVRENINS	0.20	0.2	0.00%
67	STACO	0.48	0.48	0.00%
68	STDINSURE	0.20	0.2	0.00%
69	STUDPRESS	1.99	1.99	0.00%
70	SUNUASSUR	0.20	0.2	0.00%
71	TANTALIZER	0.20	0.2	0.00%
72	UHOMREIT	40.70	40.7	0.00%
73	UNHOMES	3.02	3.02	0.00%
74	UNIC	0.20	0.2	0.00%
75	UNIVINSURE	0.20	0.2	0.00%
76	VANLEER	9.10	9.1	0.00%
77	VERITASKAP	0.20	0.2	0.00%
78	BERGER	6.75	6.7	-0.74%
79	OKOMUOIL	55.60	55.05	-0.99%
80	HONYFLOUR	0.99	0.98	-1.01%
81	CUSTODIAN	6.00	5.9	-1.67%
82	INFINITY	1.39	1.36	-2.16%
83	TRANSEXPR	0.92	0.9	-2.17%
84	AUSTINLAZ	2.09	2.03	-2.87%
85	CAP	24.00	23.2	-3.33%
86	VITAFOAM	4.40	4.25	-3.41%
87	RTBRISCOE	0.21	0.2	-4.76%
88	UAC-PROP	1.00	0.95	-5.00%
89	MEYER	0.54	0.5	-7.41%
90	AFRIPRUD	4.00	3.7	-7.50%
91	THOMASWY	0.38	0.35	-7.89%
92	ACADEMY	0.37	0.34	-8.11%
93	UCAP	2.40	2.2	-8.33%
94	DAARCOMM	0.36	0.33	-8.33%
95	DANGCEM	142.00	129.7	-8.66%
96	GOLDBREW	0.89	0.81	-8.99%
97	INTERLINK	3.20	2.91	-9.06%
98	TRIPPLEG	0.64	0.58	-9.38%
99	MRS	15.30	13.8	-9.80%
100	UNIONDICON	12.15	10.95	-9.88%
101	TOURIST	3.50	3.15	-10.00%
102	LEARNAFRCA	1.13	1	-11.50%
103	MANSARD	1.98	1.75	-11.62%
104	LASACO	0.25	0.22	-12.00%
105	COURTVILLE	0.23	0.2	-13.04%
106	TOTAL	110.90	96.3	-13.17%
107	FIDELITYBK	2.05	1.78	-13.17%
108	MTNN	105.00	90	-14.29%
109	NEM	2.42	2.07	-14.46%
110	CAVERTON	2.67	2.25	-15.73%
111	CHAMPION	0.95	0.8	-15.79%
112	GUINNESS	30.05	25.2	-16.14%
113	UACN	8.60	7.2	-16.28%
114	SEPLAT	657.80	544.5	-17.22%
115	DEAPCAP	0.40	0.33	-17.50%
116	FIDSON	3.10	2.54	-18.06%
117	TRANSCOHOT	4.90	4	-18.37%
118	ARBICO	3.51	2.85	-18.80%
119	FCMB	1.85	1.5	-18.92%
120	SKYESHELT	85.50	69.3	-18.95%
121	IKEJAHOTEL	1.12	0.9	-19.64%
122	PZ	5.65	4.4	-22.12%
123	ABCTRANS	0.45	0.35	-22.22%
124	JAIZBANK	0.62	0.48	-22.58%
125	NEIMETH	0.62	0.48	-22.58%
126	LINKASSURE	0.53	0.41	-22.64%
127	UPL	1.28	0.99	-22.66%
128	HMARKINS	0.39	0.3	-23.08%
129	PRESCO	47.50	36.45	-23.26%
130	FO	18.10	13.8	-23.76%
131	BOCGAS	5.50	4.05	-26.36%
132	WAPIC	0.34	0.25	-26.47%
133	GLAXOSMITH	6.10	4.4	-27.87%
134	CONOIL	18.50	13.15	-28.92%
135	UBA	7.15	5	-30.07%
136	ETI	6.50	4.45	-31.54%
137	OMATEK	0.50	0.34	-32.00%
138	WEMABANK	0.74	0.5	-32.43%
139	REDSTAREX	4.45	3	-32.58%
140	UPDCREIT	4.70	3.15	-32.98%
141	ROYALEX	0.30	0.2	-33.33%
142	TRANSCORP	0.99	0.66	-33.33%
143	CHAMS	0.33	0.22	-33.33%
144	ETERNA	3.60	2.39	-33.61%
145	DANGSUGAR	13.60	9	-33.82%
146	NASCON	12.95	8.5	-34.36%
147	UNITYBNK	0.64	0.42	-34.38%
148	CADBURY	10.55	6.8	-35.55%
149	FBNH	6.15	3.95	-35.77%
150	ZENITHBANK	18.60	11.7	-37.10%
151	SKYAVN	4.19	2.63	-37.23%
152	WAPCO	15.30	9.2	-39.87%
153	GUARANTY	29.70	17.7	-40.40%
154	ACCESS	10.00	5.95	-40.50%
155	STANBIC	41.00	24.3	-40.73%
156	STERLNBANK	1.99	1.15	-42.21%
157	NESTLE	1469.90	765	-47.96%
158	INTBREW	9.50	4.9	-48.42%
159	OANDO	3.99	2.05	-48.62%
160	UNILEVER	22.00	11	-50.00%
161	NCR	4.50	2	-55.56%
162	NB	59.00	25.26	-57.19%