Economy
Stock Exchange Begins Process to Delist Tourist Company of Nigeria
By Dipo Olowookere
Tourist Company of Nigeria may soon become the next organisation to be delisted from the Nigerian Exchange (NGX) Limited, Business Post has learned.
Information reaching this newspaper authoritatively revealed that the NGX Regulations (NGX RegCo) Limited, a subsidiary of the NGX Group saddled with the responsibility of regulating the market, has been given the approval to begin the process of ejecting the firm from the exchange.
Tourist Company of Nigeria recently suspend
Recall that a few days ago, the Tourist Company of Nigeria was among the four companies suspended from the stock exchange for issues relating to poor corporate governance.
“Trading license holders and the investing public are hereby notified that pursuant to Rule 3.1, Rules for Filing of Accounts and Treatment of Default Filing, (Default Filing Rules), which provides that, ‘If an issuer fails to file the relevant accounts by the expiration of the cure period, the exchange will: a) send to the issuer a second filing deficiency notification within two business days after the end of the cure period; b) suspend trading in the issuer’s securities; and c) notify the Securities and Exchange Commission (SEC) and the market within 24 hours of the suspension,’ trading in the shares of the four companies has been suspended from the facilities of the Nigerian Exchange Limited effective Friday, July 2, 2021, having failed to file their audited financial statements for the year ended December 31, 2020.
“In accordance with the Default Filing Rules set forth above, the suspension of trading in the shares of the above-mentioned companies will only be lifted upon the submission of the relevant accounts, provided NGX Regulation Limited is satisfied that the accounts comply with all applicable rules of the exchange,” a statement from the NGX had read.
Delisting in Process
But the issue of the Tourist Company of Nigeria is not ending with suspension on trading of its stocks on the exchange like the other three.
The NGX is going further to remove the company from its platform and it has now placed it on its delisting in process category, with a Compliance Status Indicator (CSI) code of DIP, which means delisting in process.
Background to current issues
Tourist Company of Nigeria is one of the oldest firms on the exchange as it joined on January 1, 1970, according to its profile of the NGX.
Its nature of business is the operation of hotels, casinos and the provision of catering services. It operates the popular Federal Palace Hotel in Lagos. It has shares outstanding of 2,246,437,472 units and a market value of N6.4 billion and its last equity price was N2.84 each.
This is not the first time the firm is under the threat of being delisted on the exchange.
According to information gathered by Business Post, in 2015, the organisation was informed by the exchange of its intention to remove it from its platform as a result of free float deficiency issues and the board passed a resolution authorising the exchange to go ahead with this.
However, after about two years, the NGX said it was putting the delisting on hold because of corporate governance issues at Ikeja Hotel Plc, which is one of the key shareholders of the company.
Shareholding structure
Ikeja Hotel, another firm listed on the exchange, has a 12.2 per cent stake in the Tourist Company of Nigeria, according to its financial statements. Sun International Limited controls 49.3 per cent, Associated Ventures International Limited (a firm controlled by Goodie Ibru, a former Chairman of the company) has 18.7 per cent, while Oma Investments Limited (which is challenging the legality of the company’s operating management agreement currently in place for the management of TCN) has 18.1 per cent.
Financial performance
In its unaudited financial statements for 2020, Tourist Company of Nigeria reported a significant decline in revenue, especially from its gaming and hospitality business and this was mainly due to the restriction on movements and the shutting down of businesses in the year by the federal government to control the spread of COVID-19.
The company suffered a loss after tax of N6.5 billion in the year compared with the lost after tax of N1.2 billion reported in 2019.
Tourist Company of Nigeria has been making losses historically and has accumulated losses of N20.6 billion, higher than N14.1 billion in 2019.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange weakened by 0.22 per cent on Tuesday, April 28, with the market capitalisation down by N4.8 billion to N2.420 trillion from N2.425 trillion, and the NASD Unlisted Security Index (NSI) down by 9.01 points to 4,044.96 points from 4,053.97 points.
During the session, the price of Central Securities Clearing System (CSCS) Plc went down by N1.82 to N767.05 per share from N78.87 per share, while FrieslandCampina Wamco Nigeria Plc appreciated by N1.90 to N100.00 per unit from N98.10 per unit.
According to data, the value of trades increased by 265.7 per cent to N27.1 million from N7.4 million units, and the volume of transactions surged by 305.2 per cent to 1.3 million units from 319,831 units, while the number of deals decreased by 6.9 per cent to 27 deals from 29 deals.
Great Nigeria Insurance (GNI) Plc remained the most traded stock by value on a year-to-date basis, with the sale of 3.4 billion units valued at N8.4 billion, followed by CSCS Plc with 59.8 million units exchanged for N4.0 billion, and Okitipupa Plc with 27.8 million units traded for N1.9 billion.
GNI Plc also finished as the most traded stock by volume on a year-to-date basis, with a turnover of 3.4 billion units worth N8.4 billion, trailed by Resourcery Plc with 1.1 billion units transacted for N415.7 million, and Infrastructure Guarantee Credit Plc with 400 million units sold for N1.2 billion.
By Adedapo Adesanya
Pressure is beginning to mount on the Nigerian Naira in the different segments of the foreign exchange (FX) market despite an oil windfall triggered by the Middle East crisis.
On Monday, April 27, the domestic currency further weakened against the United States Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) by N16.47 or 1.2 per cent to N1,380.71/$1 from the previous day’s N1,364.24/$1.
It was not different against the Pound Sterling in the same market window, as it lost N16.04 to trade at N1,863.76/£1 versus Monday’s closing rate of N1,847.72/£1, and against the Euro, it slipped by N12.72 to close at N1,615.01/€1 versus N1,602.29/€1.
The Naira also depreciated against the Dollar at the black market yesterday by N5 to quote at N1,390/$1 compared with the previous price of N1,385, and at the GTBank forex counter, it further crashed by N9 to settle at N1,379/$1 compared with the preceding session’s N1,370/$1.
The continued decline of the Naira comes as traders increasingly seek other safe-haven currencies amid continued global disruptions.
The benefit awash in the global market is making foreign portfolio investors stay short in Nigerian markets. Despite this, the daily FX publication released showed that interbank turnover rose to $98.829 million across 78 deals, up from $76.65 million.
Meanwhile, the cryptocurrency market remained cautious, with Bitcoin (BTC) trading at $77,216.66 despite surging oil prices and geopolitical tensions over a potential extended US naval blockade of the Strait of Hormuz.
Analysts say the supply overhang has finally dried up, and the sellers who were spooked by macro shifts or quantum fears have already exited, leaving the market much thinner on the sell-side.
Investors will await decisions made by central banks this week. The US Federal Reserve will announce its rate decision later on Wednesday, while the European Central Bank (ECB) follows on Thursday.
Ethereum (ETH) gained 1.5 per cent to trade at $2,324.59, Dogecoin (DOGE) chalked up 1.4 per cent to sell for $0.1016, Solana (SOL) appreciated by 0.6 per cent to $84.85, Cardano (ADA) grew by 0.5 per cent to $0.2483, and Binance Coin (BNB) advanced by 0.2 per cent to $627.15.
However, TRON (TRX) depreciated by 0.6 per cent to $0.3224, and Ripple (XRP) lost 0.03 per cent to sell at $1.39, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) were unchanged at $1.00 each.
By Adedapo Adesanya
Oil was up by nearly 3 per cent on Tuesday as persistent worries about supply constraints from the closed Strait of Hormuz continued, with Brent futures for June rising by $3.03 or 2.8 per cent to $111.26 a barrel, and the US West Texas Intermediate (WTI) crude futures growing by $3.56 or 3.7 per cent to $99.93 a barrel.
An earlier round of negotiations between the United States and Iran collapsed last week after face-to-face talks failed.
Ship-tracking data showed significant disruptions in the region, with six Iranian oil tankers forced to turn back due to the US blockade, but some traffic is still moving.
Prices trimmed some of the advances after the United Arab Emirates (UAE), the fourth-largest producer in the Organisation of the Petroleum Exporting Countries (OPEC), said on Tuesday it would exit the group on this Friday, May 1, 2026.
This dealt a blow to the oil-exporting group and its de facto leader, Saudi Arabia.
The UAE could quickly add between 1 million and 1.5 million barrels per day of output. However, with the Strait of Hormuz effectively closed, analysts said that there’s nowhere for that supply to go.
The UAE joined OPEC in 1967, but tension with Saudi Arabia over production quotas has been building for years.
Under the OPEC+ deal, the country has been held to roughly 3 million barrels per day while sitting on capacity above 4 million. It has been pushing toward 5 million barrels per day by 2027, and that target is hard to achieve with quotas built around someone else’s view of the market.
The war in Yemen broke whatever was left of diplomatic patience.
President Donald Trump said he was unhappy with the latest Iranian proposal to end the war. The proposal would avoid addressing the nuclear programme until hostilities cease and Gulf shipping disputes are resolved.
The Idemitsu Maru, a Panama-flagged tanker carrying 2 million barrels of Saudi oil, and an LNG tanker managed by the Abu Dhabi National Oil Company (ADNOC) crossed the Strait on Tuesday, shipping data showed.
Vortexa data showed that the amount of crude oil held around the world on tankers that have been stationary for at least seven days rose to 153.11 million barrels as of April 24.
The American Petroleum Institute (API) estimated that crude oil inventories in the United States fell by 1.79 million barrels in the week ending April 24. The official data from the US Energy Information Administration (EIA) will be released later on Wednesday.
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