By Modupe Gbadeyanka
The board of Prestige Assurance Plc has made an application to the Nigerian Stock Exchange (NSE) that its shareholders have given their approval for its planned reduction in the company’s share capital.
On Friday, August 18, 2017, at the company’s 47th Annual General Meeting (AGM) held in Lagos, shareholders of the firm gave their approval to the board’s proposal for the share capital reduction.
Consequently, the board has filed an application to the NSE, notifying the stock market regulator that it was ready to go on with the proposal.
A statement issued on Wednesday, August 30, 2017 by NSE’s Acting Head of Listings Regulation Department, Mr Godstime Iwenekhai, disclosed that Prestige Assurance Plc is seeking to reduce its share capital from N2,685,216,000 being 5,370,432,000 ordinary shares of 50 kobo each to N1,908,705,000 being 3,817,410,000 ordinary shares of 50 kobo each in the issued and fully paid up ordinary shares of the firm.
The statement explained that, “The share capital so reduced will be applied in writing off the capital of the company which is lost or unrepresented by available assets.”
Prestige Assurance Plc explained that the essence of the capital reconstruction was to enable it wipe out its accumulated retained losses of N776.5 million.
It stated further, that the reconstruction will reposition the company on a trajectory for subsequent accumulated retained profit, create more value to its shareholders, allow it declare dividend and improve its perception in the market thereby making it more competitive.
Business Post gathered that the share capital reconstruction will mean each shareholder will have to surrender about 11 shares for every 38 held in the firm.
At the company’s AGM about two weeks ago, Prestige Assurance Plc said it has successfully paid the Dana Air claims which occurred in June 3, 2012.
Managing Director of the firm, Dr Balla Swamy, while commenting on this, stated that “being a major calamity, we acknowledge the big role played by our parent company The New India Assurance Company Ltd in supporting Prestige Assurance in achieving this feat.
Naira Tumbles at I&E, P2P, Stable at Parallel Market
By Adedapo Adesanya
The Naira weakened against the American Dollar at the Peer-to-Peer (P2P) and the Investors and Exporters (I&E) segments of the foreign exchange market (FX) on Monday, February 6, as the country continues to face a cash crunch but maintained stability in the parallel market window.
At the P2P arm of the forex market, the Nigerian currency tumbled against the greenback by N1 yesterday to close at N761/$1 versus the N760/$1 it was sold last Friday.
Also, at the I&E wing of the FX market, the local currency lost 67 Kobo or 0.15 per cent against the US currency to end the first session of the week at N462.17/$1, in contrast to the preceding session’s value of N461.50/$1.
The weakening of the Nigerian Naira happened despite the value of FX transactions going down by $3.00 million or 2.51 per cent to $122.43 million from N119.43 million.
However, in the interbank segment, the Naira appreciated against the Pound Sterling by N12.92 to close at N555.40£1 compared with N568.32/£1 as the Bank of England and the European Central Bank raised interest rates last Thursday and provided guidance suggesting it was nearing the end of its rate hiking cycle.
In the same vein, the domestic currency gained N12.92 N10.82 on the Euro to settle at N496.32/€1 compared with the previous trading session’s value of N507.14/€1.
In the black market, the Naira maintained stability against the United States Dollar, remaining unchanged at N753/$1.
Meanwhile, the crypto space was bearish yesterday as the bullish momentum witnessed last week begin to wear off after last Friday’s stronger-than-expected US non-farm payrolls report, which made investors question the US Federal Reserve’s view that inflation has peaked.
Cardano (ADA) went down by 1.9 per cent to trade at $0.3865, Solana (SOL) depreciated by 1.6 per cent to $23.03, Dogecoin (DOGE) fell by 1.3 per cent to $0.0905, Ripple (XRP) lost 0.8 per cent to trade at $0.3947, Bitcoin (BTC) slid by 0.3 per cent to $22,865.03, and Ethereum (ETH) declined by 0.02 per cent to sell at $1,627.56.
But Litecoin (LTC) went up by 2.8 per cent to $98.69, as Binance Coin (BNB) climbed higher by 0.1 per cent to $326.28, while Binance USD (BUSD) and the US Dollar Tether (USDT) closed flat at $1.00 each.
Oil Prices Rise as Earthquakes Hit Turkey, Syria
By Adedapo Adesanya
Oil prices rose on Monday, buoyed by supply concerns following earthquakes in Turkey and Syria.
Brent crude futures rose 46 cents or 0.6 per cent to $80.40 a barrel, as the United States West Texas Intermediate (WTI) crude futures jumped by 20 cents or 0.3 per cent to $73.59 a barrel.
Massive earthquakes that struck Turkey and Syria on Monday halted operations at Turkey’s major oil export hub in Ceyhan and stopped key crude oil flows from Iraq and Azerbaijan, officials said.
It has been regarded as the worst tremor to strike Turkey this century and was followed in the early afternoon by another large quake of magnitude 7.7.
The Tribeca shipping agency said in a notice that the BTC terminal at Ceyhan that exports Azeri crude oil will be closed through Wednesday pending damage assessments. Azerbaijan uses the Turkish port of Ceyhan as its main crude export hub, with a flow of about 650,000 barrels per day.
According to Reuters, following Monday’s earthquake, Iraq’s Kurdistan Regional Government (KRG) also halted flows through the pipeline it operates that runs from Iraq’s northern Kirkuk fields to Ceyhan, the region’s ministry of natural resources (MNR) said.
The KRG had been pumping 400,000 barrels per day, and Iraq’s federal government was pumping 75,000 barrels per day through the pipeline.
It was also reported that oil exports would resume after a “careful inspection of the pipelines is finalised,” the MNR said in a statement.
Also supporting prices was the prospect for China’s recovery after the relaxation of COVID-19 restrictions continued to drive the value of the commodity.
The International Energy Agency (IEA) expects half of this year’s global oil demand growth to come from China. The agency’s chief, Mr Fatih Birol, disclosed this on Sunday, adding that jet fuel demand was surging.
“If demand goes up very strongly, if the Chinese economy rebounds, then there will be a need, in my view, for the OPEC+ countries to look at their (output) policies,” Mr Birol said, referring to a call of action for the Organisation of the Petroleum Exporting Countries (OPEC) and its allies, OPEC+.
The 23-man group decided to cut output by 2 million barrels a day from November through 2023 instead of pumping more to cut fuel prices and help the global economy, as the US advised.
Also, price caps on Russian products took effect on Sunday, with Group of Seven (G7) nations, the European Union and Australia agreeing on price limits of $100 a barrel on diesel and other products that trade at a premium to crude and $45 a barrel for products that trade at a discount, such as fuel oil.
The price ceilings, together with an EU ban on Russian oil product imports, are part of a broader agreement among the Group of Seven (G7) countries. It follows a $60 per barrel cap on Russian crude that G7 countries imposed on December 5 as the G7, the EU and Australia seek to limit the country’s ability to fund its war in Ukraine.
Both caps prohibit Western insurance, shipping and other companies from financing, insuring, trading, brokering or carrying cargoes of Russian crude and oil products unless they were bought at or below the set price caps.
NGX Upgrades Price Stock Group of Eterna
By Dipo Olowookere
The price stock group of Eterna Plc has been moved upward by the Nigerian Exchange (NGX) Limited, Business Post reports.
In a regulatory notice on Monday, the bourse noted that it upgraded the stock category of the energy company from a low-price stock group to a medium-price stock group.
This action, according to the exchange, was necessitated after the stability in the price of the company’s equities within four of the last six months in the new price category, in line with its price methodology framework.
“Equity securities of quoted companies on the exchange (NGX) are classified into three stock price groups or categories; high-priced, medium-priced, and low-priced stocks, based on their market price.
“In this regard, securities must have traded for at least four out of the most recent six-month period within a stock price group’s specified price band to be classified into the category.
“Accordingly, a review of Eternal Plc stock price and trade activities over the most recent six-month period provides the basis for reclassifying the security from the low-priced stock group to the medium-priced stock group.
“This reclassification also necessitates the attendant change in the tick size change from N0.01 kobo to N0.05 kobo, in line with Rule 15.29: Pricing Methodology, Rulebook of the exchange, 2015 (trading license holders’ rules),” the statement from the platform stated.
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