Is Flour Mills Leaving the NGX?
4 Customs Street: 30 Sep 2024
Welcome to this week’s edition of 4 Customs Street, our weekly newsletter on the stock market.
The newsletter is divided into two parts:
Green White Green is focused on the Nigerian stock market.
Star-Spangled Banner is focused on the US stock market
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Green White Green Last Week
Is Flour Mills leaving the NGX?
Earlier this week, flour mills disclosed that Excelsior shipping, its majority shareholder, had proposed to buy out everyone else. Usually when this happens, the next thing that follows is a company delisting from the stock exchange.
There is some uncertainty around this, as market chatter had suggested that the company was doing so in order to list the holding company.
There has been no word as well pertaining to the other companies where flour mills have a dominant stake: Honeywell Flour and Northern Nigeria Flour Mills (NNFM).
BUA Foods to expand pasta production capacity
BUA Foods Plc plans to expand its pasta production capacity with the addition of 9 long cut pasta lines thereby increasing production from 400,000 tonnes to 900,000 metric tonnes per annum.
ETI Eurobond raise
Ecobank Transnational Incorporated has mandated Absa, Africa Finance Corporation, African Export-Import Bank, Mashreq and Standard Chartered Bank as Joint Lead Managers and Joint Bookrunners and Renaissance Capital Africa as Financial Adviser to organise a Global Investor Call, as well as a series of fixed investor calls and meetings commencing on Monday, September 30, 2024.
A 5-year dollar eurobond will follow subject to market conditions. A eurobond is debt issued in foreign currency, typically the US dollar.
PZ’s losses lessen
PZ Cussons Nigeria dropped its Q1 2024/2025 numbers. The firm is still loss making, but they have narrowed year-on-year.
Q1 2024 loss after tax was N4.6 billion. Same quarter prior year, loss after tax was N38.6 billion. The key driver behind the losses is the sharp swing in the exchange rate.
Julius Berger has a new MD
T Engr. Dr. Lars Richter, Managing Director of Julius Berger, will resign at the expiration of his contract of employment on October 15, 2024.
Engr. Dr. Peer Lubasch, in line with the succession plan for the Executive Management, was appointed as a Director and the Managing Director of the company with effect from October 16, 2024.
Lubasch, holds a doctorate degree in civil engineering from the University in Duisburg-Essen, Germany. He is registered with the Council for the Regulation of Engineering in Nigeria (“COREN”) and a member of the Nigerian Society of Engineers (“NSE”).
He joined Julius Berger in 2010 as Technical Manager and thereafter held various positions in the Julius Berger Group in Germany and Nigeria culminating in his appointment as Managing Director /CEO of Julius Berger International GmbH in 2022. He was reassigned to Julius Berger Nigeria Plc and appointed to the Board of the Julius Berger Nigeria Plc with effect from October 16, 2024, as the Managing Director.
Stanbic IBTC Holdings has a new chair
Olusola David-Borha has been appointed chair of the Board of Stanbic IBTC Holdings with effect from September 26, 2024. She succeeded Basil Omiyi as Chairman following his retirement as a Non-Executive Director and Chairman on May 16, 2024.
Sola David- Borha had previously served as Chief Executive Officer of Standard Bank, Africa Regions. Prior to that, she had also served as Chief Executive Officer of Stanbic IBTC Holdings and Stanbic IBTC Bank. Mrs. Sola David- Borha has had an extensive career in the financial services industry, spanning over 35 years.
FO adds to FBN Holdings stake
Femi Otedola dropped a few billions on FBN Holdings shares during the week (534,094,097 shares to be precise, at an average price of N30). FBN Holdings is the parent company of First Bank.
Green White Green This Week
We should have a bit more colour from ETI on its eurobond raise. The wait continues for some of the banking results.
Star-Spangled Banner Last Week
It was yet another positive week for US equities. The Dow Jones closed at a record high gaining 0.6%. The S&P 500 also gained 0.6%.
Commodities, too
It was also a good week for commodities. Gold crossed the $2,700 mark for the first time ever. Silver prices briefly touched a 12-year high of $32.75 an ounce.
What’s driving this?
The US Fed (central bank) cutting interest rates and the PBOC (Chinese central bank) taking measures to stimulate the Chinese economy is positive for high risk assets, as investors seek to earn better returns.
Commodities like gold also serve as a safe haven asset in times of uncertainty. The last few days have seen tension spike in the middle east with Israel launching attacks on parts of Lebanon.
Star-Spangled Banner This Week
It is a fairly quiet week in terms of earnings. Carnival corporation (if you love cruises, you should know them), Nike and Levi’s will drop their earnings. The focus will be on Nike. What are the new CEO’s action points?
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