The biggest shareholders of Nigeria’s 30 largest firms lost a whopping sum of N939 billion combined in the first half of 2020 as the COVID-19 pandemic took a toll on the equities market.
The shareholders used in the analysis are individuals with the single largest shares in the top 30 companies listed on the Nigeria Stock Exchange, otherwise called the NSE 30.
The shareholders information was sourced from the annual reports of the companies as at December 2019.
This analysis considered the value of the shareholdings of these shareholders as at June 2020 compared to June 2019 and also examined which of these shareholders have recovered from the pandemic blow. The data shows a recovery is truly on.
Shareholders’ performance H1 2020
As at the end of June 2020, the shareholders of the biggest companies had a combined wealth of N3.0 trillion, a 23 percent decline from N3.9 trillion as at June 2019.
While most shareholders suffered the impact of the pandemic on the stock market, some shareholders gained during this period.
The worst hit shareholders are Olugbenga Awomolo (International Breweries), B.A Savage (Guinness Nigeria), Ayeyemi Ademola (Ecobank), Atedo Peterside (Unilever Nigeria) and Kolawole Jamodu (Nigerian Breweries) as their wealth plunged 76 percent, 70%, 55%, 54% and 44% respectively during this period.
While several NSE 30 top shareholders have seen their wealth dip during this period, others have experienced a surge.
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John G. Coumantaros, the biggest individual shareholder at Flour Mills Nigeria saw a 40 percent increase in the value of his shareholdings in Flour Mills to N50.4 billion from N36.1 billion as at June 2020 compared to N14.3 billion as at June 2019.
Gbenga Oyebode, the chairman of Okomu Oil Palm also saw a 23 percent boost in wealth to N3.2 billion as at June 2020 compared to N2.6 billion recorded in the same period last year.
H.O Wigwe of Access Bank, Aliko Dangote the largest shareholders of Dangote Sugar, Delinda Ajoke of Julius Berger Nigeria plc and Adetunji Oyebanji of Mobil Nigeria all saw their wealth surge by 2%, 6%, 9% and 13% respectively.
Source: NSE, Businessday
The shareholder had a combined wealth of N3.2 trillion as at January 1st 2020 but the discovery of the virus in Nigeria sent share prices falling and affected their wealth.
As at March 31st 2020, the combined wealth had dipped 10 percent to N2.9 trillion eroding about N357 billion off the wealth of these shareholders, all within 3 months.
Half-year sectoral analysis
Industrial goods
The shareholders in the industrial goods sector recorded the biggest loss among the sectors as they lost N916 billion combined in H1 2020.
The shareholders were worth N2.5 trillion in H1 2020, a decline from N3.5 trillion in H1 2019.
Aliko Dangote (Dangote Cement) was the biggest loser in the sector as his wealth slumped by 31 percent to N1.8 trillion in H1 2020 from N2.6 trillion in H1 2019. This loss was as a result of a crash in the company’s share price from N184 to N127 in the period.
Mobolaji Balogun also experienced a 17 percent crash in his shareholdings in Lafarge Africa to N100 million in H1 2020 from N127 million in H1 2019 as share price dipped from N12 to N10 within the period.
Rabiu Abdusamad also had his shareholding in BUA Cement slump by 10 percent to N737bn in H1 2020 from N818 bn in H1 2019.
Consumer goods
Shareholders in the consumer goods sector gained N18.5 billion combined in the first half of the year.
The shareholders combined were worth N156 billion combined in the first half of the year, up from their total worth of N138 billion as at June 2019.
John G. Coumantaros (Flour mills Nigeria), and Aliko Dangote (Dangote Sugar) top this sector, as their wealth increased by 40 percent and 9 percent respectively.
It’s a different story for top shareholders of beer making companies who lost N1.3 billion combined in the first half of the year.
Kolawole Jamodu (Nigerian Breweries), B.A. Savage (Guinness Nigeria) and Olugbenga Awomolo (International Breweries) have seen their wealth dip by 44%, 70% and 77% respectively.
David Ifeduike (Nestle), Olakunle Alake (NASCON), Atedo Peterside (Unilever) have all also lost 10%, 29% and 54% of their wealth respectively in this sector.
Agriculture
The top shareholders in the Agricultural sectors gained N554 million combined in the first half of the year.
James B. Erhuero, the largest single shareholder in palm oil company, Presco, saw a 13 percent dip in his wealth to N28 million from N32 million as Presco’s share price fell from N52 in June 2019 to N45 in the first half of the year.
Gbenga Oyebode’s Okomu Oil stake rose by 23 percent to N3.2 billion from N2.6 billion as Okomu Oil Palm saw its share price surge to N77 in the first half of the year from N64 as at June 2019.
Financial services
The top shareholders of the Nigerian biggest banks shed N22.4 billion combined in the first half of 2020.
The shareholders had a total worth of N123.1 billion in H1 2020, down from N145.6bn in H1 2019.
The biggest losers were Mike Adenuga (Sterling Bank) and Ayeyemi Ademola (EcoBank) as their worth crashed by 43% and 55% respectively during this period.
Jim Ovia (Zenith Bank) and Oba A. Otudeko (First Bank) also had a 19% and 20% decline respectively during this period.
Not all the shareholders experienced a loss as Nnamdi Okonkwo (Fidelity Bank) and H.O Wigwe (Access Bank) each had a 2 percent increase in their shareholdings during the period.
Tony Elumelu (United Bank of Africa) and Emeka Emuwa (Union Bank of Nigeria) both saw their worth rise by 1% during this period.
Oil and gas
Shareholders in the oil and gas sector were also not spared as they lost N10.3bn combined in the first half of the year.
Austin Avuru (Seplat) witnessed a 27% decline in wealth to N27.6 bn in HI 2020 from N38 bn in H2 2020 as Seplat’s share price fell from N530 to N386 during the period.
Ms T. Ibru and Adetunji Oyebanji also saw their shareholdings in Total Nigeria and 11plc decline 35% and 13% respectively.
ICT
Victor Odili, the largest shareholder at MTN Nigeria lost N9.4bn in the first half of 2020.
Odili was worth N105bn in H1 2019 but his wealth slumped to N95bn in H1 2020 as the pandemic sent MTN shares crashing from N129 to N117 within the period.
Construction and real estate
Delinda Ajoke, one of the largest shareholders at Julius Berger Nigeria had her worth rise 9 percent in the first half of the year despite the pandemic.
Share price at Julius Berger rose to N19.85 in H1 2020 from N18.25 as at June 2019, this increased her worth from N5.2bn to N5.7bn in the period.
Recovery on the cards
As Nigeria and large parts of the world move away from the worst of the pandemic, some of these shareholders have seen a recovery in their wealth.
The shareholders combined were worth N3.36 trillion as at market close on Oct 5, 2020, from N3.0 trillion as at June 2020. This means the shareholders combined have gained N360 billion since the end of June. The improvement reflects the overall stock market which hit a five year high on Wednesday as the country’s low interest rate environment pushes investors seek higher return in the stock market.
Between March and October, most of the worst hit shareholders who saw their wealth plunge have begun to recover, however some are still trying to find their feet as the pandemic continues to take a toll on them. For most shareholders the month of March was when their wealth plunged the most.
Kolawole Jamodu of Nigerian Breweries (NB) who had his wealth decline by 40% between January and March 2020 has seen a 90% recovery as NB’s share price which stood at N25 in March has skyrocketed to N48.8 today. This increased his worth from N19 million as at March to N37 million as at October 5th 2020.
Mobolaji Balogun of Lafarge Africa has also seen a recovery in wealth from the impact of the pandemic. Balogun has recovered by 74% from the 40% crash as at March 2020.
The share price of Lafarge Africa has increased from N6 to N16, sending his worth to N160 million today from the N92 million as at March and higher than his worth at the beginning of the year which was N153 million.
The share price of GT bank has risen from N17.7 as at March to N27 today resulting in a 68% rise in Segun Agbaje’s worth from N736 million as at March to N1.2bn today.
H.O Wigwe of Access bank also gained N1bn between March and October, taking his worth to N10.7bn from the N9bn recorded as at March 2020. Although, Wigwe is yet to recover fully as he was worth N15.1bn at the start of the year. Access bank has also seen share price recover from N5.9 to N7.1 during the period.
Others like Atedo Peterside (Unilever), Olakunle Alake (Nascon), Dangote Aliko (Dangote Cement), Ms Ibru (Total Nigeria) and Mike Adenuga (Sterling Bank) seen their wealth recover by 30%, 29%, 8%, 1% and 12%.
The shares of beer making companies such as Guinness Nigeria and International Breweries have not recovered and are even worth lesser than what was recorded in March.
Guinness Nigeria has seen share price fall to N15 today down from N25 in March 2020. B.A. Savage’s worth plunged to N9 million, down from N16 Million in March 2020.
Olugbenga Awomolo of International Breweries, the worst hit shareholder also had his wealth plunge further to N416 million in October from N523 million in March 2020. INTBREW’s share price plunged from N4.9 to N3.9 between the period mentioned.
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