Friday,April 03, 2020 03:00 PM / [email protected] / Header Image Credit: EcoGraphics

Nigerian StockMarket closed the month of March 2020 in red as marketwitnessed intense sell pressure during the month under review. The NSEASIdipped by -18.75% as against -9.11% loss recorded in the month of February2020 while the NASD USI closed southwards with -1.10% loss recordedat the end of the month under review as against +0.26% loss inFebruary 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 disconnectedfrom the high level of uncertainty created by the outbreak of the COVID-19which is now a global pandemic.

On market development, regulation and investorsprotection, the Securities and Exchange Commission  issued an exposureof 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, hasgranted listed companies a sixty (60) day grace period for the submission oftheir Audited Financial Statements for the year ended 31 December 2019 (AFS),which are due to The Exchange onMonday, 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 2020reflected that eighteen (18) gainers to eighty-five (85) losers were recordedas against thirty-four (34) gainers to ninety-eight (98) losers at the end ofyear 2019. Fifty-nine (59) stocks were unchanged as at Q1 2020 as againstthirty-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) insurancestocks made the list and they are;

1. LAWUNION
2. CORNERST; and
3. AIICO

X-Compliance: Early Filers of 2019 Audited FinancialStatements

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

'The Exchange understands that some of the internalgovernance, auditing and other procedures and processes of listed companies mayhave been disrupted by COVID-19. Therefore, The Exchange is granting listedcompanies a sixty (60) day grace period for the submission of their AuditedFinancial Statements for the year ended 31 December 2019 (AFS), which are dueto 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 theirAudited Financial Statements. See table below

Listings by IPO and Introduction

The markethas, so far, witnessed no IPO in year 2020 and 2019 while just one (1) IPO waswitnessed 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% declinerecorded. 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 TheLast 11 Years

In the last eleven (11) years, eighteen (18) entitieshave taken advantage of the listing by introduction route, the latest being BUACement Plc.

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

A review ofthe performance of the eighteen (18) companies listed in the last eleven (11)years reflected that 11% or two (2) of such companies recorded positivereturns, 72% or thirteen (13) of such companies recorded negativereturns while three (3) of such companies which were listed in 2019, 2018 and2014 respectively remained flat (No Change in Price) at their listing prices asat March 31, 2020.

MEDVIEWAIR recordedthe highest positive return of +8.00%, while AFRINSURE recordedthe 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 thisedition of The Nigerian CapitalMarket Service Report, we continuethe updates of our data section with latest figures on Economic indicators& Upcoming Events in the market and economy. This is to ensure that wedeliver a comprehensive capital market service report that helps cover andtrack innovations, developments as well as service issues in the marketeffectively.

In all,the March 2020 SSS Quality Report is a snapshot and aidememoire of developments in our market - tracking milestones that the investingpublic should be aware of. Do feel free to share your opinions/observations andfeedback with us vide [email protected]

Thank you.

For: Analyst Editorial Board

Reshu BAGGA

CEO, The Analyst

Appendix 1: Listed Companies Performance in Q1 2020

Source: NSE, Proshare Research

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