Good morning and welcome to this week’s edition of ON THE RUN, our weekly newsletter on financial news and the stock market.
The Local Stock Market
The NGX All-Share Index increased by 0.87%, reflecting the overall performance of stocks on the exchange. United Capital was the top gainer, surging 42.78% to close at N40.55. This spike was fueled by the announcement of a 90 kobo interim dividend and a bonus of 2 new shares for every one share held as of July 31, 2024, with the dividend payment date set for August 9, 2024.
United Capital also reported its half-year results for June 2024, showing a 38% increase in gross earnings from N11.1 billion in HY 2023 to N15.1 billion in 2024. Profit after tax climbed by 65%, from N4.6 billion in 2023 to N7.7 billion in 2024.
On another note, shares of Niger Insurance Plc, Resort Savings and Loans Plc, and RAK Unity Petroleum Plc were delisted from the NGX on Thursday, July 18, 2024. These companies were removed due to failing to meet the listing standards, making them unsuitable for continued listing and trading in the market.
https://doclib.ngxgroup.com/market_data-site/other-market-information-site/Week%20Market%20Report/Weekly%20Market%20Report%20for%20the%20Week%20Ended%2019-07-2024.pdf
The Local Economy News
This week is particularly busy with board meetings scheduled to approve H1 2024 financial results for several companies, including Okomu Oil, Nestle Nigeria, Dangote Cement, BUA Cement, and Lafarge Cement.
Airtel Africa is set to announce its results for the three months ending June 30, 2024, on Thursday, July 25, 2024. The management will hold a conference call for analysts and investors at 1:00 PM UK time (BST) on the same day.
The Central Bank of Nigeria’s Monetary Policy Committee is meeting today and tomorrow, with a press conference scheduled at the end of the discussions. Anticipated topics include the FX gains tax and progress on banking recapitalization.
There is speculation on whether MPC members, led by CBN Governor Wale Cardoso (nicknamed Cardi B by the financial media), will increase interest rates further in response to inflation or leave them unchanged.
Fidelity Bank will hold an extraordinary general meeting (EGM) virtually at 10:00 AM on Friday, July 26, 2024. The meeting aims to obtain shareholders' approval to accommodate potential oversubscription of the public offer, covering 5 billion shares under the public offer and 3.2 billion shares under the rights issue.
The Global Stock Market
Last week was challenging for the markets. The Nasdaq composite index dropped by 3.65%, and the S&P 500 fell by 1.96%. In contrast, the Dow Jones was an outlier, rising by 0.72% as investors shifted from tech stocks to other sectors.
Amazon had a successful Prime Day, breaking the previous year's record. Adobe Analytics estimated that shoppers spent $14.2 billion, an 11% increase from the previous year.
CrowdStrike shares took a hit last Friday after an update left many Windows systems inoperable, causing widespread disruption.
https://seekingalpha.com/article/4705278-wall-street-breakfast-what-moved-markets
The Global Economy News
The major news headline after the market closed was President Joe Biden's announcement that he will not run in the upcoming presidential race. The impact on the equity market is uncertain, though stock market futures saw a slight uptick yesterday evening.
Aside from politics, this week is busy with earnings reports. Google, Tesla, Coca-Cola, and Chipotle are set to release their latest earnings. Other companies reporting include Verizon, Spotify, UPS, General Motors, American Airlines, and AbbVie.
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