NGX Places Sanctions on PZ, Presco, African Alliance Insurance Plc, and Others

Recently, the NGX Regulation Limited placed sanctions on firms like Presco Plc, eTranzact International Plc, NCR (Nigeria) Plc, African Alliance Insurance Plc, ABC Transport Plc, and PZ Cussons Nigeria Plc for failing to file audited and interim accounts for years 2023 and 2024.

According to the Nigerian Exchange Limited (NGX), all listed companies must provide accurate data to maintain an orderly market.

This comes after the local stock market experienced a bearish trend, leading to a poor start to the week. Selloffs on Airtel Africa Plc and 17 others lowered the overall capitalization by N500 billion.

ABC Transport Plc paid N3.2 million of shareholders' money as a penalty for failing to file audited accounts. The company filed its full-year 2023 results on May 1, 2024. Presco Plc was fined N3.2 million for neglecting to submit its 2023 Annual Financial Statement for the year that concluded on December 31, 2023.

According to the NGX RegCo, it has imposed sanctions on these businesses and others that abide by the Issuers' Rules and the NGX Rulebook's Rules for Accounts Filing and Default Filing Treatment.

Companies listed on the NGX must file their quarterly accounts within 30 days of the end of the quarter per the Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of NGX (Issuers' Rules).

Presco submitted its report on May 1, 2024, while eTranzact International Plc did not file its 2023 AFS for December 31, 2023, until April 8, 2024. NGX Regulation said in its May 3 X-Compliance Report that it paid N700,000 as a penalty.

On April 3, 2024, NCR (Nigeria) Plc filed its 2023 AFS for the year that concluded on December 31, 2023. The company paid a penalty of N200,000.

African Alliance Insurance Plc paid an N48.6 million fine after submitting its 2022 AFS December on November 22, 2023. PZ Cussons Nigeria Plc paid an N4 million fine for submitting its 2024 second quarter (Q2) unaudited financial statement after the deadline.

Monday Overview

The NGX All-Share Index (ASI) fell by 883.57 points, representing a loss of 0.89%, to close at 98,703.68 points. Market capitalisation dropped by N500 billion to close at N55.823 trillion.

Price depreciation in large and medium-capitalised stocks, such as Airtel Africa, Nigerian Aviation Handling Company (NAHCO), Stanbic IBTC Holdings, Berger Paints and Nigeria, and Industrial & Medical Gases Nigeria (IMG), was the primary cause of the decline.

As measured by market breadth, investor sentiment closed positive as 38 stocks advanced and 18 declined. 

Top Gainers: Cornerstone Insurance and Guinea Insurance led the chart with 10% each to close at N1.98 and 33 kobo, respectively, per share. NASCON Allied Industries and Oando followed, with a gain of 9.94% each to close at N47.00 and N9.95, respectively. While Wema Bank gained by 9.42% to close at N7.55 per share.

Top Losers: Airtel Africa led the chart with a 10% decline to close at N1,980.00 per share. Berger Paints followed with a 9.85% decline to close at N12.40, while IMG shed 9.82% to close at N12.40 per share. International Energy Insurance went down by 9.35% to close at N1.26, while International Breweries depreciated by 9.00% to close at N4.35 per share.

The total trade volume decreased 5.6% to 421.728 billion units, valued at N8.954 billion, exchanged in 10,624 deals. Transactions in the shares of Access Holdings led the activity, with 98.237 million shares worth N1.761 billion. United Bank for Africa (UBA) followed with an account of 40.396 million shares valued at N1.071 billion, while Guaranty Trust Holding Company (GTCO) traded 35.906 million shares valued at N1.494 billion.

Universal Insurance traded 30.398 million shares worth N11.399 million, while Zenith Bank traded 26.904 million shares worth N982.146 million.