Good morning and welcome to this week’s edition of 4 Customs Street, our weekly newsletter on the stock market. How was your weekend?
Green White Green Last Week
Last week was a red one as the NSE All-Share Index declined by 0.88%. The index measures the average performance of stocks on the exchange.
Some stocks will do better or outperform the index, while others will do worse or underperform the index.
Consolidated Hallmark Insurance was the best performing stock last week. It gained 25.64% to close at ₦0.49. Academy Press led this week’s losers. It declined by 10% to close at ₦0.40.
Airtel FY 2021 numbers
Airtel Africa released its results for the financial year ended March, 2021. There was a decent uptick in both revenue and profit. Revenue rose by 13.6% from $3.4 billion in 2020 to $3.8 billion in 2021.
Interestingly, mobile money was the fastest growing segment. It grew by 29% year-on-year from $311 million in 2020 to $401 million in 2021.
Data grew by 24.3% year-on-year from $930 million in 2020 to $1.1 billion in 2021.
Profit after tax rose minutely by 1.8% from $408 million in 2020 to $415 million in 2021.
This was due to a 48.5% increase in tax. The sharp increase in tax was due to a foreign exchange loss of $42 million
Earnings per share (restated) grew by 18.2% from 6.9 cents in 2020 to 8.2 cents in 2021.
A final dividend of 2.5 cents has been proposed. It will be paid on July 23, 2021, to all ordinary shareholders who are on the register of members at the close of business on June 25, 2021. That means a total of 4 cents will be paid as dividends for the 2021 financial year.
Green White Green This Week
The 20th of May is an extremely busy one in terms of Annual General Meetings (AGMs). Champion Breweries, Seplat Petroleum, Linkage Assurance, Infinity Trust Mortgage Bank, Capital Hotels, and Berger Paints all have their AGMs on that day.
AGM occurs once a year and it’s an opportunity for shareholders to query the management of companies on last year’s performance and their plans for the current financial year.
Shareholders also look towards AGMs as dividend payment occurs on or after the approval during the AGM.
Star-Spangled Banner Last Week
Last week was a negative one as the three major indices closed in the red. The Dow fell by 1.14%, the S&P 500 fell by 1.39% and the Nasdaq composite index declined by 2.34%.
The slide in stock prices was due to the sharp rise in inflation figures for the month of April, which were released during the week. Inflation rose by 4.3%, the highest rise since 2008.
The inflation figures sparked fears of an increase in the interest rate. A higher interest rate would make borrowing more expensive for companies, leading to a pull of funds from the equity market to the fixed income space.
Star-Spangled Banner This Week
Retail giants will be releasing their quarterly earnings during the week. They include Walmart, Home Depot, Target, Macy’s, Lowe’s, and Ross Stores.
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Have a great week.