The Nation Newspaper

Category: Equities

  • Court seals Access Bank, Diamond Bank merger

    The Federal High Court (FHC) has sanctioned the approved scheme of merger between Access Bank Plc and Diamond Bank Plc, the final seal that effectively brings the merger of the two commercial banks into effect.

    Consequently, the Nigerian Stock Exchange (NSE) yesterday suspended trading on the shares of Diamond Bank Plc, which will be dissolved without being wound up and subsequently delisted from the Exchange.

    The court sanction, statutorily the final phase of a pre-merger process, which was filed at the NSE, affirmed all the key headlines of the transactions, which had earlier been approved by shareholders of the two banks, the Central Bank of Nigeria (CBN) and Securities and Exchange Commission (SEC).

    The Nation had on Monday reported that financial regulatory authorities had given final approvals to the scheme of merger, paving the way for submission to a Federal High Court for the final court sanction.

    Under the terms of the merger, Diamond Bank will transfer all its assets, liabilities and undertakings to Access Bank and the entire issued share capital of Diamond Bank shall be cancelled and Diamond Bank shall be dissolved without being wound up. In exchange, Diamond Bank’s shareholders shall receive a cash consideration of N1 per share and two ordinary shares of the enlarged Access Bank for every seven ordinary shares of Diamond Bank held as at the effective date.

    Access Bank will be the post-merger entity while its Group Managing Director, Herbert Wigwe will continue to lead the post-merger management as chief executive. The business combination is expected to leapfrog post-merger Access Bank as Nigeria’s largest bank by total assets and one of Africa’s largest retail banks.

    The NSE explained that the full suspension on Diamond Bank, which took effect yesterday March 20, 2019, was sequel to the court sanction, which brought the business combination into effect on Tuesday March 19, 2019.

    “The suspension is required to prevent trading in the shares of the bank in order to determine the bank’s shareholders who will qualify to receive the Scheme consideration,” NSE stated.

    The NSE noted that the scheme of merger will result in the delisting of Diamond Bank Plc from the Daily Official List of the Exchange.

    Directors and management of the banks said the merger will create significant values for all stakeholders, underlining the inherent synergies and value accretion in the business combination.

    The business combination is expected to form a leading Tier 1 Nigerian bank and the largest bank in Africa by number of customers, spanning three continents, 12 countries, 3,100 Automated Teller Machine (ATM), more than 33,000 Point of Sales (PoS) terminals, 27 million clients and more than 10 million mobile customers.

    Diamond Bank and Access Bank share many of the same areas of focus, including women, youth, entrepreneurs and the financially excluded and will be able to further develop their positioning and market leadership in these growth sectors. Diamond Bank’s corporate customers will also be able to benefit directly from Access Bank’s corporate expertise in trade finance, cash management, treasury and corporate finance.

    Group Managing Director, Access Bank Plc, Mr Herbert Wigwe, said the two banks share several common values and technologies that make the business combination a seamless one.

    According to him, the merger of the banks will create significant opportunities and benefits to customers, shareholders, staff and other stakeholders.

    He noted that the combination of Diamond Bank’s strong retail customer franchise and Access Bank’s proven risk and capital management expertise will create a post-merger bank with strong value creation potential.

    He pointed out that while the merger will lead to 19 per cent shareholding dilution, the business combination accelerates Access Bank’s plan to become a leading bank in Nigeria and gateway to Africa.

  • Lagos “ponzi” firm shut

    Securities and Exchange Commission (SEC) has sealed up the premises of an Ikeja, Lagos-based firm, Growing Circle International (G-Circle) for allegedly engaging in ponzi scheme.

    In a circular, SEC stated that it conducted surveillance on the activities of G-Circle after it received complaint from a member of the public.

    According to the Commission, investigation revealed that G-Circle was operating a pyramid scheme and soliciting funds from unsuspecting members of the public through various means including its website www.growingscircle.com.

    SEC stated that it sealed up the premises of G-Circle in Lagos in line with its commitment to protect the investing public.

    “The Commission wishes to inform the general public that Growing Circle International and any individual representing the company are not registered by the Commission and therefore not permitted to engage in any capital market-related activity in Nigeria,” SEC stated.

    The apex capital market regulator advised investing public to confirm the registration status of any company, individual and the products they offer before entering into any transaction with such persons. Such confirmation can be done on the SEC’s website.

  • ‘Govt should make capital market pivot for national budget‘

    Nigerian governments should make capital market the pivotal point for the development and implementation of national budget and development plans.

    Capital market regulators, operators, financial experts and other stakeholders yesterday agreed that the Nigerian capital market has important roles to play in the industrialisation and economic development of the country.

    They spoke at the 3rd annual budget seminar  organised by the Securities and Exchange Commission ( SEC ).

    Acting Director General, Securities and Exchange Commission ( SEC) Ms Mary Uduk said there is a mutually revolving relationship between government policies and economic development and the capital market, noting that government  budget affects the economy and the economy  in turn affects the capital Market.

    She pointed out that both local and foreign stakeholders are interested in the budget and try to analyse how it affects them.

    According to her, investors also sit down and analyse the budget and that is why the capital market is looking at the impact of the budget and how the market can aid its implementation.

    “The capital market is very important in funding a lot of projects in the economy. The capital market is important in raising these money to fund the budget. We want to be in the driver seat and contribute to the budget if the Federal Government,” Uduk said.

    She added that capital market stakeholders are interested in driving and contributing to the economy as there are a lot of opportunities for the capital market in the 2019 budget.

    In his Lead presentation, Head Economic Research, Securities and Exchange Commission ( SEC), Dr. Afolabi Olowookere said that opportunities exist for equities and sub- national issuances and urged state governments to explore the capital market for funding of their project.

    Olowookere said that opportunities exist for equities and sub- national issuances as a means to fund the budget while urging a lower domestic borrowing by the federal government to make room for private issuances.

    He listed some of the ways the budget can be funded to include creation of money market-based instruments and trading, commodity trading and derivatives, investing in eligible companies under tax credit scheme as well as attracting restructured oil assets to list.

    Discussants on the panel opined that infrastructure development is of optimal importance for the achievement of development of sustainable prosperity adding that all sectors are dependent on infrastructure to attract investment and ensure the active participation of the private sector.

    Experts noted that in the areas of infrastructure, housing sector, and issuance of mortgages, the capital market may participate through securitization.

    They said there were great potential for pension fund administrators to invest in the real estate sector.

    The seminar suggested that increase in allocation to the health and education sectors is necessary for development. This is because, people, and not just infrastructure, build and develop a nation.

    According to them, the nation requires that the government should come up with policies that improve access to capital for small and medium scale enterprises (SMEs). SMEs currently employ a large proportion of the Nigerian workforce, thus they should be empowered through access to capital.

    They urged governments to look towards the capital market as commercially viable infrastructure projects exist adding that enabling legal framework should be developed to enable the private sector participate.

    The seminar also urged the government to enforce executive order No.2, which aims to promote local content in public procurement as this would be beneficial for listed companies.

    The moderator at the event was Mr. Mobolaji Balogun of Chapel Hill Denham while Panelists include Hajara Adeola of Lotus Capital Limited, Toyin Sanni of Emerging Africa Capital Group, Prof. Olu Ajakaiye of Africa Centre for Shared Capacity Development Building, Prof. Uche Uwaleke of Nasarawa State University and Johnson Chukwu of Cowry Assets Management Limited.

  • Our results show exceptional financial health, says Zenith Bank

    Steady and sustained growth in key performance indicators despite challenging operating environment show the exceptionally good financial health of Zenith Bank Plc, directors of the bank have said.

    At the annual general meeting yesterday in Lagos, Chairman, Zenith Bank Plc, Mr Jim Ovia, said the 2018 business year was a challenging year for all operators in the Nigerian banking industry.

    He said the bank was able to fully explore opportunities within the environment to record a performance that attested to its durability and resilience as a brand.

    According to him, the 2018 performance was again a reflection of the exceptional financial health of the bank and the group.

    He assured that the bank remained committed to delivering superior returns to shareholders by ensuring that a good chunk of its profits is set aside for shareholders.

    Shareholders approved a final dividend per share of N2 .50 in addition to the interim dividend per share of 30 kobo, bringing total dividend for the 2018 business year to N2.80, as against N2.70 paid for the 2017 business year. Shareholders received N 87.91 billion as total dividend in 2018 compared with N84 .77 billion paid in 2017.

    Key extracts of the audited report and accounts of the bank for the year ended December 31, 2018 showed that the bank’s gross earnings slipped from N 674 billion in 2017 to N538 billion in 2018. Meanwhile, profit before tax rose by 13 .6 per cent from N169 billion in 2017 to N192 billion in 2018. Profit after tax also rose by 7.8 per cent from N153 billion in 2017 to N165 billion in 2018.

    The balance sheet showed that total deposit rose by 2.9 per cent from N2.74 trillion to N2.82 trillion. Total assets increased marginally by 2.7 per cent from N 4.83 trillion to N 4 .96 trillion. Shareholders ’ fund however dropped from N698 billion to N675 billion.

    Group audited report showed that group profit before tax rose by 16 .6 per cent from N199 billion to N232 billion. Group profit after tax improved by 10 .9 per cent from N174 billion to N193 billion.

    In his remarks, Managing Director, Zenith Bank Plc, Mr Peter Amangbo, said the bank would continue to place a high premium on developing a robust risk management framework which had helped in promoting the soundness of the financial institution in protecting its assets and ensuring its growth.

    “We are committed to entrenching a robust enterprise risk management, global best practices in corporate governance and sustainability in the coming year,” Amangbo said.

     

  • Access Bank raises N15b in Africa’s first corporate green bond

    Access Bank Plc yesterday achieved a landmark with the issuance of a N15 billion green bond, the first corporate green bond to be issued in Africa to be fully certified to have met global climate bonds standard.

    The Five-Year Fixed Rate Senior Unsecured N15 billion Green Bond was awarded an Aa- rating by Agusto & Co, the underlying framework verified by PwC (UK) and the bond was certified by the Climate Bonds Initiative as having met the global climate bonds standard.

    The offer for the green bonds was achieved by way of a book build which was fully subscribed. The bonds priced at a coupon of 15.5 per cent, with participation from a wide range of asset managers and pension fund administrators.

    Group Managing Director, Access Bank Plc, Mr. Herbert Wigwe said the net proceeds from the green bond issue would be directed towards financing new loans and refinancing existing loans in accordance with the bank’s green bond framework.

    He added that the fund would also be used to support projects directed at Flood defense, solar generation facilities and agriculture.

    “With our pace-setting experience in the mainstreaming of sustainability in our business operations, we are confident that this issue with further help in supporting environmentally friendly investors to meet their investment objectives whilst simultaneously supporting the bank’s customer towards realizing growth opportunities in fast-developing low carbon economy,” Wigwe said.

    According to him, Access Bank supports the global climate change mitigation and adaptation agenda and seeks to promote responsible green lending globally. The green bond issuance demonstrates the bank’s commitment to sustainable operational practices.

    He noted that as a pioneer operator, both in domestic and international capital markets, Access Bank views the global drive for responsible and sustainable green financing as an opportunity to raise capital for the creation of assets through climate change financing.

    “The bank has a strong track record in deploying environmental and social risk management tools, partnering with local and international agencies to deliver a greener outcome from investing activities. Over the last five years, the bank has pioneered various resource conservation programmes in water usage, energy consumption and waste recycling, aimed at reducing carbon emissions,” Wigwe stated.

    The bank noted that all its sustainability efforts are well aligned with the Federal Government’s Nationally Determined Contributions (NDCs), the UN Sustainable Development Goals (SDGs), the Economic Recovery and Growth Plan (ERGP) and Vision 2020:20.

    The management of the bank noted that the quality of the bank’s contributions to sustainable financial practices is also evident in the increasing local and international awards and accolades received, which include – Karlsruhe Sustainable Finance Award for Outstanding Business Sustainability & Outstanding Sustainability Leader (2018); Euromoney Award for Africa’s Best Bank for Corporate Social Responsibility (2018); Global Finance Awards for Most Sustainable Bank in Nigeria (2018) and Central Bank of Nigeria Sustainability Award(s) for Sustainable Bank of the Year (2017).

    The management of Access Bank had, in anticipation of the issuance, launched the Nigerian Green Bond Market Development Programme in June 2018, in partnership with FMDQ OTC Securities Exchange and the Securities and Exchange Commission (SEC).

  • Stanbic IBTC, Eland Oil and Gas in N18b deal

    Stanbic IBTC Holdings and its parent company, Standard Bank Group of South Africa, have partnered with Eland Oil & Gas, on a new accordion facility and increased borrowing base of $50 million (about N18 billion).

    The facility is being underwritten by Stanbic IBTC Bank and Standard Bank while Stanbic IBTC Capital Limited will act as a joint bookrunner. An accordion facility is essentially an incremental facility, which allows a borrower to take an additional facility over and above what was originally agreed with the financier on the same terms as the original facility for expansion purposes.

    In November 2018, Eland Oil & Gas, an oil and gas production and development company operating in West Africa with an initial focus on Nigeria, had announced that it had successfully refinanced its existing reserve-based lending facility with a new five-year syndicated RBL facility in an amount of $75 million, with the option to increase it to up to $200 million via an accordion, subject to incremental production and reserves.

    Stanbic IBTC stated that the deal was an opportunity to support Eland Oil & Gas’ business expansion drive in the oil and gas industry.

    Stanbic IBTC stated that it would continue to leverage its excellent investment banking pedigree as well as the strength of its franchise in the Standard Bank Group, the largest financial institution in Africa, to consummate such big ticket deals that will not only help businesses grow but also help deepen key industries.

    Stanbic IBTC reiterated its commitment, in line with the Stanbic IBTC Group’s value proposition and investment banking pedigree, to continue to assist businesses with high quality advisory and arranging services that will enhance their growth and expansion prospects by providing access to a diverse range of financing options.

    The oil and gas company announced that following a redetermination, the borrowing base amount increased from $103 million to $134 million and an initial accordion increase of $50 million is being underwritten by Standard Bank of South Africa and Stanbic IBTC Bank PLC, resulting in the commitments under the facility increasing from $75 million to $125 million. Of the commitments, $50 million is currently drawn.

    Chief Financial Officer, Eland Oil & Gas, Ron Bain, who spoke on the deal, said the large increase in borrowing base on the company’s RBL facility, demonstrates the hugely accretive quality of the new wells drilled on the OML 40 asset and the growth in value they bring to shareholders.

    “Since refinancing the RBL in 2018 into a longer-term facility, we have the flexibility to diversify the capital structure of the company leveraging our position comfortably within our debt parameters and lowering the overall cost of capital,” Bain said.

    Standard Advisory London Limited and Stanbic IBTC Capital Limited, as bookrunners, have been mandated to manage the primary syndication of the initial accordion increase. Principal repayments are expected to commence in the fourth quarter of 2019. This is consistent with the statement in the November RNS that there is a one-year grace period on principal repayments from execution of the facility, which occurred last November.

  • Nigeria mulls no bank account, no stock trading policy

    Capital market authorities are considering major amendments to the securities market trading rules in a shift that will disallow trading on shares and other securities of investors that did not provide bank account for direct payment of the net proceeds from their transactions.

    A draft on amendments to new rules under consideration obtained at the weekend indicated that Nigeria’s apex capital market regulator, Securities and Exchange Commission (SEC), has further amended proposed rules on direct cash settlement (DCS) to include additional review by the Commission’s rules committee and other stakeholders.

    Under the direct cash settlement, the stock market will transit from the current dealer-mediated payment system under which proceeds of shares sales are remitted to the dealer for onward remittance to the investor to a new system under which payment will be made directly to the investor’s account.

    The new payment system will become the mandatory payment process for the securities market as against the current dealer-mediated payment system. While the previously exposed rules allowed any investor to apply for specific or continuing remittance of his net proceeds to his stockbroker, the amended provisions disallows trading without bank account.

    According to the draft, all dealing members shall provide their clients’ bank account details, including Bank Verification Number (BVN) to an approved clearing and settlement entity for purpose of direct cash settlement.

    “Where a client does not provide account details, the dealing member shall not execute any sell trade on behalf of the client. Where a dealing member execute a sale trade without account details of the client, the clearing and settlement entity shall ensure that such trade is cancelled prior to the settlement day,” the draft stated.

    The rules indicated that settlement of all sale exchange-traded securities shall be made by direct payment into the client’s account within the clearing and settlement entity’s stipulated settlement cycle.

    The draft stipulated that settlement of exchange-traded securities carried out on a securities exchange shall be done by direct payment into the client’s account by an approved clearing and settlement entity. Where a client seeks to opt out, the client will write a letter and the dealing member shall notify the clearing and settlement entity of such letter not less than three business days prior to executing any sale trade on behalf of the client.

    All clearing and settlement entities and the dealing members of registered exchanges are mandated to ensure compliance with the rules.

    Where any clearing and settlement entity violates the provisions of the rules, such entity shall be liable to a penalty of not less than N10 million in addition to any other sanction which the Commission may impose.

    Also, where a dealing member violates the provisions of the rules, it shall be liable to a penalty of not less than N1 million and a fine of not less than three times the value of the amount settled, in addition to any other sanction the Commission may impose.

    The proposed rules are expected to further strengthen capital market’s campaign against identity theft and shares fraud. The rules are also expected to forestall the use of securities market for money laundering and other illicit financial transactions.

    While infraction rate has reduced drastically, fraudulent sale of client’s shares remains a major concern at the securities market.

    Authorities at the Nigerian capital market and law enforcement agencies have stepped up efforts to tackle the problem of shares fraud and identity theft, otherwise known as unauthorised sale of client’s shares. The Nigerian Stock Exchange (NSE) recently launched an amendment to existing rules and regulations, which enables it to henceforth maintain a record to be known as “Blacklist” in which it will keep records of all corrupt persons and indicted officials who are deemed unfit to engage in stock market activities.

    In the new amendment, the NSE has now been mandated to formally open a “blacklist” for the purpose of records of corrupt persons. The amendment, approved by the SEC, strengthened the Exchange’s zero tolerance for infractions and places greater responsibility on all capital market operators.

    Those to be included in the “blacklist” included any person that the Exchange determines that he or she no longer entitled to privileges, services, recognition or access to the Exchange and its facilities as well as those not permitted to deal or transact with or be employed by a dealing member or person.

    The rule applies to dealing member, an authorized clerk, an employee or director of a dealing member, a sub-broker, or any other capital market operator.

    A check indicated that about 90 per cent of the existing blacklisted persons were due to unauthorised sales of client’s shares. Other ranking crime was manipulation of the market or share prices.

    The Nation had recently reported that the Economic and Financial Crimes Commission (EFCC) was investigating about 35 fraud cases at the Nigerian capital market.

    Although the full details of the cases could not be disclosed due to legal confidentiality and ongoing investigations, a review of the preliminary findings indicated that most cases relate to fraudulent sale of clients’ shares and diversion of clients’ funds, impersonation and false representation of products and services.

  • Access Bank grows profit by 32 per cent to N103.2b

    Access Bank Plc recorded significant growth in profitability in 2018 as the first-tier commercial banking group rode on the back of improved operating efficiency and risk management to cross the N100 billion profit mark.

    Key extracts of the audited report and accounts of Access Bank for the year ended December 31, 2018 released at the weekend showed that the bank grew pre and post tax profits by 32 per cent and 58 per cent. Gross earnings had risen by 15 per cent. Total assets increased by 21 per cent while customers’ deposit grew by 14 per cent.

    The board of the bank has recommended payment of a final dividend per share of 25 kobo to shareholders, bringing the total dividend pr share for the 2018 business year to 50 kobo. The bank had paid an interim dividend of 25 kobo per share.

    The report indicated that gross earnings rose to N528.7 billion in 2018 compared with N459.1billion in 2017. Interest and non-interest incomes contributed 72 per cent and 26 per cent respectively to the top-line. Profit before tax rose from N78.2 billion to N103.2 billion while profit after tax increased to N95.0 billion in 2018 as against N60.1 billion in 2017. With these, earnings per share rose from N2.11 in 2017 to N3.31 in 2018. Return on average equity (ROAE) stood at 19.0 per cent while return on asset closed 2018 at 2.1 per cent.

    The bank’s balance sheet remained strong and diversified with total assets rising to N4.95 trillion in 2018 as against N4.10 trillion in 2017. Loans and advances increased from N2.06 trillion to N2.14 trillion. Customer’s deposits improved to N2.57 trillion from N2.25 trillion. Capital adequacy ratio (CAR) remained adequate at 20.8 per cent, taking into consideration the regulatory transitional arrangement of IFRS 9 implementation. On a full impact basis, CAR stood at 19.9 per cent. Also, Liquidity ratios improved from 47.2 per cent to 50.9 per cent, well above regulatory requirements.

    Group Managing Director, Access Bank Plc, Mr. Herbert Wigwe said the banking group made significant progress in 2018 despite the challenges in the operating environment.

    According to him, the bank made solid progress throughout 2018 in line with its 2018-2022 five-year strategy, and it remains committed to the achievement of its strategic imperatives going forward.

    He assured that the banking group will continue to invest in its people and technology in order to improve operational efficiency and service touch points with earnings growth in 2019.

    He pointed out that the contribution of the bank’s subsidiaries to group profits grew by 116 per cent to N27.9 billion, due to effective implementation of overall strategy.

    “In pursuit of our vision to be one of the leading banks in Nigeria, we took accelerated strides in the last quarter of the year towards achieving our overall retail strategy. The merger with Diamond Bank will enable us to fully entrench ourselves in the retail market with a view to lowering our funding cost. This transaction is anticipated to be completed by April 2019, resulting in the creation of an enlarged, efficient and digitally led tier 1 retail banking franchise,” Wigwe said.

    Shareholders of Access Bank and Diamond Bank recently approved the merger between the two commercial banks, in a transaction that will leapfrog post-merger Access Bank as Nigeria’s largest bank by total assets and one of Africa’s largest retail banks.

    At separate court-ordered meeting in Lagos, shareholders overwhelmingly approved the scheme of merger for the business combination and authorised the directors of the banks to take such actions as may be necessary to give effect to the scheme including listing of the scheme shares on the Nigerian Stock Exchange (NSE).

    Under the terms of the merger, Diamond Bank will transfer all its assets, liabilities and undertakings to Access Bank and the entire issued share capital of Diamond Bank shall be cancelled and Diamond Bank shall be dissolved without being wound up. In exchange, Diamond Bank’s shareholders shall receive a cash consideration of N1 per share and two ordinary shares of the enlarged Access Bank for every seven ordinary shares of Diamond Bank held as at the effective date.

    Directors and management of the banks said the merger will create significant values for all stakeholders, underlining the inherent synergies and value accretion in the business combination.

    The business combination is expected to form a leading Tier 1 Nigerian bank and the largest bank in Africa by number of customers, spanning three continents, 12 countries, 3,100 Automated Teller Machine (ATM), more than 33,000 Point of Sales (PoS) terminals, 27 million clients and more than 10 million mobile customers. Access Bank will be the post-merger entity while its Managing Director, Herbert Wigwe will continue to lead the post-merger management as chief executive.

    Diamond Bank and Access Bank share many of the same areas of focus, including women, youths, entrepreneurs and the financially excluded.

  • Equities relapse as selloff resumes

    Nigerian equities lost N56 billion in net capital depreciation yesterday as sell pressure across major stocks overshadowed earnings expectations.

    Benchmark indices at the Nigerian Stock Exchange (NSE) showed average decline of 0.48 per cent, equivalent to net capital depreciation of N56 billion.

    With more than two decliners for every advancer, aggregate market value of all quoted equities at the NSE dropped from its opening value of N11.695 trillion to close at N11.639 trillion. The All Share Index (ASI)- the main value-based index, dropped from its opening index of 31,360.28 points to close at 31,210.79 points. Average year-to-date return worsened to -0.70 per cent.

    Sectoral indices showed mixed performance. The NSE Oil and Gas Index appreciated by 0.13 per cent. The NSE Insurance Index rose by 0.49 per cent while the NSE Consumer Goods Index closed flat. However, the NSE Banking Index declined by 0.37 per cent while the NSE Industrial Index dipped by 0.52 per cent.

    “Despite today (Thursday)’s sell offs, we expect positive corporate earnings releases to drive the performance of the equities market in the near term,” Afrinvest Securities stated.

    There were 20 decliners to nine advancers. Nestle Nigeria led the losers with a drop of N4.90 to close at N1,545. Dangote Cement followed with a loss of N2 to close at N190. Transcorp Hotels declined by 55n kobo to close at N5.40. Eterna dropped by 40 kobo to close at N4.40. Guaranty Trust Bank lost 30 kobo to close at N35.40 while Zenith Bank declined by 20 kobo to close at N22.20 per share.

    On the upside, Dangote Flour Mills led the gainers with a gain of N2.80 to close at N10.30. Ikeja Hotels followed with a gain of 35 kobo to close at N2.30. Sterling Bank rose by 9.0 kobo to close at N2.50 while NEM Insurance and United Bank for Africa added 5.0 kobo each to close at N2.50 and N7.65 respectively.

    Total turnover stood at 177.63 million shares valued at N2.56 billion in 2,635 deals. Banking stocks dominated activities chart. Zenith Bank was the most active stock with a turnover of 80.78 million shares valued at N1.80 billion. Sterling Bank followed with 16.80 million shares worth N41.87 million while FCMB Group placed third with 12.13 million shares worth N23.82 million.

    Analysts at Cordros Capital advised investors to trade cautiously in the short term, although stable macroeconomic fundamentals and compelling valuation remain supportive of recovery in the mid-to-long term.

     

  • Equities rebound with N18b gain

    After five days of consecutive negative session, Nigerian equities witnessed marginal recovery yesterday as bargain-hunters increased buy orders for value stocks. While there were more decliners than advancers, gains by large and mid-cap stocks roused the market to its first gain in six days.

    Benchmark indices at the Nigerian Stock Exchange (NSE) indicated average gain of 0.15 per cent, equivalent to net capital gain of N18 billion. Average year-to-date return, though still negative, improved to -0.22 per cent.

    The All Share Index (ASI)- the common value-based index that tracks share prices at the Exchange, inched up to 31,360.28 points as against its opening index of 31,313.36 points. Aggregate market value of all quoted equities rose from its opening value of N11.677 trillion to close at N11.695 trillion.

    Sectoral indices showed mixed performance across the sectors. The NSE Banking Index rose by 0.04 per cent. The NSE Consumer Goods Index appreciated by 1.60 per cent while the NSE Oil and Gas Index closed flat. However, the NSE Industrial Goods Index declined by 0.35 per cent while the NSE Insurance Index dipped by 0.02 per cent.

    There were 13 advancers against 18 decliners. Nestle Nigeria, NSE’s highest-priced stock, led the rally with a gain of N69.90 to close at N1,549.90. CAP followed with a gain of N3.40 to close at N37.40. Okomu Oil Palm added N1 to close at N80. Eterna rose by 40 kobo to close at N4.80. Sterling Bank chalked up 21 kobo to close at N2.36 while Guaranty Trust Bank added 20 kobo to close at N35.70 per share.

    On the negative side, Guinness Nigeria led the losers with a loss of N3.15 to close at N64. Dangote Cement lost N2 to close at N192. Dangote Flour Mills declined by 50 kobo to close at N9.50. Africa Prudential dropped by 37 kobo to close at N4.55 while UAC of Nigeria lost 20 kobo to close at N7.80.

    “Today’s rebound in the domestic equities market was in line with our expectations, and in our view, sustained bargain hunting will further buoy market performance over the near term,” Afrinvest Securities stated.

    Total turnover stood at 377.49 million shares valued at N2.26 billion in 3,273 deals. Diamond Bank led the activities chart with a turnover of 113.6 million shares worth N283.36 million. Chams followed with 72.15 million shares worth N14.43 million while FBN Holdings placed third with 71.53 million shares worth N586.23 million.

    Analysts at Cordros Capital remained cautious, urging investors “to trade cautiously in the short term” while reiterating optimism that “stable macroeconomic fundamentals and compelling valuation remain supportive of recovery in the mid-to-long term”.