The nation’s bourse commenced trading for August after Sallah break with a growth of 0.30 per cent on renewed bargain hunting.
Speficially, the All Share Index (ASI) rose by 72.39 points, to close at 24,766.12 against 24,693.73 achieved on Wednesday.
Also, the market capitalisation inched higher by N37 billion to close at N12.919 trillion compared with N12.881 trillion on Wednesday.
The uptrend was impacted by gains recorded in large and medium capitalised stocks, among which were Flour Mills, BUA Cement, GlaxoSmithkline, Guaranty Trust Bank and Neimeth International Pharmaceuticals.
Analysts at United Capital Plc anticipated that outcome of first half year earnings would continue to spur market reactions this week.
Also, analysts at Afrinvest Ltd believed the performance of the market this week would be majorly dictated by the trend in earnings releases.
Market breadth closed positive, with 19 gainers in contrast with 16 losers.
Neimeth International Pharmaceuticals dominated the gainers’ chart in percentage terms, gaining 10 per cent, to close at N1.65 per share.
Flour Mills followed with 9.97 per cent to close at N18.75, while University Press rose by 9.90 per cent to close at N1.11 per share.
GlaxoSmithkline improved by 8.16 per cent to close at N5.30, while Honeywell appreciated by five per cent to close at N1.05 per share.
On the other hand, UACN led the losers’ chart in percentage terms, losing 10 per cent to close at N6.30 per share.
AIICO Insurance came second with a loss of 9.57 per cent to close at 85k, while Sunu Assurances dipped 9.09 per cent to close at 20k per share.
Mutual Benefits Assurance lost 8.70 per cent to close at 21k, while Custodian Investment shed 7.27 per cent to close at N5.10 per share.
Also, the total volume of shares traded rose by 83.56 per cent as investors bought and sold 186.48 million shares worth N1.31 billion achieved in 4,718 deals.
This was in contrast with a turnover of 101.59 million shares valued at N973.64 million transacted in 3,685 deals on Wednesday.
Transcorp was the toast of investors, accounting for 23.39 million shares worth N14.35 million.
Custodian Investment trailed with 19.14 million shares valued at N97.72 million, while Guaranty Trust Bank traded 18.17 million shares worth N411.61 million.
FBN Holdings sold 13.54 million shares valued at N69.70 million, while United Bank for Africa sold 9.72 million shares worth N60.52 million.
Edited By: Edith Bolokor/Oluwole Sogunle (NAN)
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
AIICO Insurance partners NGO to provide relief packages to indigents
AIICO Insurance Plc, in partnership with “We Stand Foundation” has organised a relief programme to provide a variety of food items and reusable nose masks to 300 underprivileged families in Lagos.
Mr Abimbola Shobanjo, Manager, AIICO Corporate Responsibility and Sustainability Unit, on Thursday said the beneficiaries were people living within the Iwaya Community area of Yaba.
“It was indeed a great delight to bring smiles to the faces of these people.
“Besides solving hunger, we also considered their wellbeing a high priority in view of the need to continue to keep safe.
“We leveraged on key partners to spot opportunities and drive these initiatives,” he said in a statement.
In addition, Mr Babatunde Fajemirokun, Managing Director/Chief Executive Officer of AIICO, said that the endeavour was reflective of the company’s corporate culture of touching lives and impacting communities.
“These are challenging times and we are mindful of the impact. We have a long-term plan in place to ensure the sustainability of these efforts,” Fajemirokun said.
He recalled that the firm organised a similar programme during the COVID-19 induced lockdown by distributing food and other health and safety packages to people in different communities to mitigate the impact of the pandemic.
Edited By: Kamal Tayo Oropo/Peter Ejiofor)