The volume of shares traded on the Nigerian Stock Exchange (NSE) on Wednesday improved by 148.13 per cent with an exchange of 383.29 million shares worth N3.89 billion in 3,860 deals.
This was in contrast with a total of 154.47 million shares valued at N1.46 billion transacted in 4,222 deals on Tuesday.
Transactions in the shares of UACN dominated the activity chart with 81.74 million shares valued at N471.54 million.
It was trailed by FBN Holdings with 66.44 million shares worth N334.16 million, while Access Bank sold 59.19 million shares valued at N378.76 million.
Zenith Bank accounted for 30.79 million shares worth N521.19 million, while Presco traded 26.16 million shares valued at N1.26 billion.
Also, the All-Share Index (ASI) increased by 40.10 points or 0.16 per cent to close at 24,882.04 compared with 24,841.94 recorded on Tuesday.
In the same vein, the market capitalisation appreciated further by N20 billion or 0.16 per cent to close at N12.979 trillion against N12.959 trillion on Tuesday.
The upturn was impacted by gains recorded in large and medium capitalised stocks, amongst which are: Mobil Oil, Stanbic IBTC Holdings, Chemical and Allied Products (CAP), Presco and Guaranty Trust Bank.
Analysts at Afrinvest Limited said, “For the rest of the week, we expect market performance to move in tandem with the trend in earnings releases.”
Market sentiment remained positive with 18 gainers in contrast with 12 losers.
A breakdown of the price movement chart shows that CAP recorded the highest price gain of 9.74 per cent to close at N16.90 per share.
UACN Property Development Company followed with 9.52 per cent to close at 92k, while GlaxoSmithKline rose by 6.19 per cent to close at N5.15 per share.
Neimeth International grew by 5.42 per cent to close at N1.75, while Transcorp appreciated by 5.08 per cent to close at 62k per share.
Conversely, Eterna led the losers’ chart in percentage terms, dropping by nine per cent to close at N1.82 per share.
Livestock Feeds came second with a loss of 4.62 per cent to close at 62k, while Mutual Benefits Assurance dipped 4.55 per cent to close at 21k per share.
Lasaco Assurance dipped four per cent to close at 24k, while May and Baker depreciated by 3.33 per cent to close at N2.90 per share.
Edited By: Olagoke Olatoye (NAN)https://nnn.ng/nse-investors-staked-n3-89bn-on-383-3m-shares-in-bullish-trading/
Recapitalisation: AIICO not resting in its drive — MD
Fajemirokun said that the firm’s current capital base was N11.6 billion and it hoped to increase this to N15.02 billion after the rights issue and bonus issue by the end of the year.
This, he said, would bring them closer to the NAICOM new capital requirement of N18 billion by 2021.
“Rationale for the rights issue is, NAICOM, last year, increased the regulatory capital requirements for insurance industry to N18 billion, from N9 billion.
“AIICO has not rested, we have been focused on three strategies, first is private placement, successfully executed in January which raised N5.3 billion and increased our capital base from N6.3 billion to N11.6 billion.
“Of course, we had a shortfall from this, which will be raised through the rights issue and bonus issue. We applied the private placement to the loan or convertible loan repayment to the IFC, which we are currently executing.
“Also, we have investment in technology, human capital, plant and equipment and we also launched the facts behind the offer and rights issue to raise N3.48 billion, which started on Sept. 2.
“It will increase our capital base from N11.6 billion to N15.1billion, which will be deployed to two ways, technology and PPE.
“The board recommended the bonus issue which will involve capitalising some of our retain earnings with the proposed term of one share for every five shares to shareholders as at third December 2020,” Fajemirokun said.
According to him, the new capital requirement of N18 billion is due in 2021, and after the bonus issue, AIICO will be at N16.02 billion.
“The key impact will ensure that we are able to underwrite big transactions, especially in aviation and oil and gas, earn market confidence and bring us closer to meet the new requirement.
“So, at the end of this rights issue, AIICO would have met the current capital requirement which is 50 per cent (N9 billion)
“Why stakeholders should invest in the rights issue is because AIICO’s current capitalisation as at Sept. 7 was about N10.2 billion, because we have got a diversified business with a life and non-life business with complimentary business in health, pensions, asset management and others.
“We have 9 to 10 per cent market share based on gross premiums as at 2018. We have shown solid growth in our compounded annual growth rate for our total asset, total equity, PAT as well as dividend per share,” he said.
Mr Oscar Onyema, Chief Executive Officer, NSE said that the rights issue presented shareholders an opportunity to support AIICO insurance with a balance sheet, increased efficiency and repositioning to increase market share.
He said that the ultimate aim of the rights issue was to improve shareholders’ returns.
Onyema, who was represented by Mr Olumide Bolumole, said that NSE would continue to position itself as the African exchange of choice.
He said it would continue to assist listed companies to achieve their business objectives.
Mr Dipo Williams, representing the Chartered Institute of Stockbrokers, said that AIICO had been one of the stock market’s good companies that had been listed since 1990.
Williams said that AIICO insurance had seen the benefits of the market and this was why it was back for more rights issue.
He assured the firm that the stockbroking community would always support them.
At the end of the webinar, Mr Oladeji Oluwatola, Chief Operating Officer of AIICO rang the closing gong to close the market.
Edited By: Oluwole Sogunle
NSE All-Share Index rebounds 0.16%
After three consecutive days of losses, the Nigerian Stock Exchange (NSE) All-Share Index on Friday rebounded by 0.16 per cent.
Specifically, the All Share Index which opened at 25,532.74 rose by 39.83 points or 0.16 per cent to close at 25,572.57.
Also, the market capitalisation inched higher by N20 billion to close at N13.364 trillion, compared with N13.344 trillion on Thursday.
Dangote Sugar topped the gainers’ chart, gaining 80k to close at N12 per share.
Guaranty Trust Bank followed with 35k to close at N25.35, while Custodian Investment added 30k to close at N4.85 per share.
Neimeth International Pharmaceutical garnered 15k to close at N1.95, while Caverton increased by 14k to close at N1.84 per share.
On the other hand, Cutix was up on the losers’ chart, dropping by 5k to close at N1.70 per share.
Cornerstone Insurance also lost 5k to close at 61k, while ABC dipped 3k to close at 30k per share.
Lasaco Insurance lost 2k to close at 25k, while Jaiz Bank dipped 1k to close at 59k per share.
FBN Holdings maintained its leadership as the most active stock, exchanging 35.79 million shares valued at N165.37 million.
FCMB Group followed with 29.27 million shares worth N60.29 million, while Zenith Bank traded 16.001 million shares valued at N267.28 million.
Access Bank sold 11.55 million shares worth N74.44 million, while Cornerstone Insurance exchanged 9.95 million shares valued at N6.09 million .
In all, investors bought and sold 193.49 million shares worth N1.85 billion in 2,934 deals.
This was in contrast with 231.20 million shares valued at N2.09 billion exchanged in 3,360 deals on Thursday.
Edited By: Oluwole Sogunle
Infrastructure: Firm optimistic of Nigeria’s cement market
Lafarge Africa Plc on Thursday expressed optimism of the country’s cement market in spite of the COVID-19 pandemic.
Mr Khaled El Dokani, the company’s Chief Executive Officer, said this at Lafarge Africa virtual ‘Facts behind the figures’, at the Nigerian Stock Exchange (NSE).
He said that Nigeria’s cement market was promising considering its teeming population of 200 million people.
El Dokani added that the country’s enhanced emphasis on infrastructure development would increase activities in the industry.
He said that the company would remain committed to the attainment of the Sustainability Development Goals (SDGs).
El Dokani noted that Lafarge Africa’s initiatives were designed to contribute to the attainment of the SDGs.
“The company is committed to best practices such as minimising the use of water and replacing sources of water in communities, adopting non-polluting forms of renewable energy and recycling materials,” he said.
He, however, assured all stakeholders of enhanced value creation in the years ahead.
Onyema also appreciated the company for its recent interventions and donations to support national efforts toward cushioning the effect of the pandemic on the Nigerian populace.
He said that NSE would continue to provide a platform to support listed companies in meeting their strategic business objectives.
“We will continue to position ourselves as the African Exchange of choice for issuers and investors by implementing policies aimed at strengthening the corporate governance of our listed companies,” he said.
“We also launched a revamped version of our X-Issuer platform to enhance the continuous flow of relevant and
reliable market information, and to enable stakeholders make informed investment decisions.
“To cushion the impact of the pandemic and restrictions on business activities, we made provisions for palliatives to market stakeholders.
“This includes granting a sixty-day extension to listed companies on the filing of audited and quarterly financial statements,” Onyema said.
Edited By: Kamal Tayo Oropo/Wale Ojetimi
Negative sentiment persists on NSE, market capitalisation down N8bn
Negative sentiment continued on the Nigerian Stock Exchange (NSE) on Thursday with the market capitalisation declining further by N8 billion.
The market capitalisation lost N8 billion to close at N13.344 trillion against N13.352 trillion achieved on Wednesday.
Also, the All-Share Index dipped 17.57 points or 0.07 per cent to close at 25,532.74 from 25,550.31 posted on Wednesday.
Accordingly, Month-to-Date gain moderated to 0.8 per cent while Year-to-Date loss increased to -4.9 per cent.
The downturn was impacted by losses recorded in large and medium capitalised stocks, amongst which are; Dangote Sugar, Custodian Investment, Caverton, Ecobank Transnational and Oando.
Capital market analysts attributed the decline to price adjustments for interim dividend declared by some banks and profit taking in insurance and manufacturing stocks.
They also noted that profit taking in insurance and manufacturing equities further depressed the key performance index for the third consecutive day.
Analysts at Afrinvest Limited said “Given the sustained bearish sentiment, we expect the equities market to close the week in the red.”
Tripple Gee led the decliners’ chart in percentage terms, losing 9.09 per cent to close at 40k per share.
Caverton came second with a loss of 8.60 per cent to close at N1.70, while Dangote Sugar dropped 5.88 per cent to close at N11.20 per share.
Custodian Investment lost 5.21 per cent to close at N4.55, while Livestock Feeds shed 4.92 per cent to close at 58k per share.
On the other hand, International Breweries topped the gainers’ table in percentage terms, growing by 10 per cent, to close at N3.30 per cent.
Wapic Insurance gained 9.09 per cent to close at 36k, while NPF Microfinance Bank improved by 8.33 per cent to close at N1.30 per share.
Academy Press and Royal Exchange appreciated by 7.41 per cent each, to close at 29k per share, respectively.
In spite of loss by the key market indicators, volume transacted rose by 9.15 per cent with 231.20 million shares worth N2.09 billion traded in 3,360 deals.
This was against a total of 211.82 million shares valued at N2.42 billion recorded in 3,651 deals on Wednesday.
Transactions in the shares of FBN Holdings topped the activity chart with 33.53 million shares worth N165.36 million.
Access Bank followed with 30.40 million shares worth N200.05 million, while Zenith Bank traded 25.08 million shares valued at N418.01 million.
FCMB Group traded 20.55 million shares valued at N42.14 million, while Guaranty Trust Bank sold 20.29 million shares worth N506.26 million.
Edited By: Oluwole Sogunle