The Nation Newspaper

Category: Equities

  • Lagos Commodities Exchange gets regulatory approval

    The Lagos Commodities and Futures Exchange (LCFE) has received the approval of the Securities and Exchange Commission (SEC), paving the way for the new Exchange to commence operation in the months ahead.

    The LCFE is being promoted by the Lagos State Government and Association of Stockbroking Houses of Nigeria (ASHON). The LCFE is expected to trade in currency, commodities, oil and gas and solid minerals and it is expected to open up a vast new vista for Nigerian agricultural and economic development.

    With this “approval in principle”, the new Exchange is expected to commence operation immediately,  after the ongoing installation of its state of the art technology which is at the concluding phase.

    Commenting on the recent development, ASHON’s Chairman, Chief Patrick Ezeagu expressed gratitude to SEC for the opportunity. He assured the commission that ASHON had been working very hard to complete the installation of the technology in order to commence trading.

    Corroborating him, LCFE’s Acting Managing Director and Chief Executive Officer, Mr Akin Akeredolu-Ale described the approval as a welcome development.

    According to him, it shows the level of dynamic capacity of the apex regulator to empower capital market operators to play pivotal role in capital formation and wealth creation. Akeredolu-Ale underscored the essence of capacity building in order to improve efficiency and service delivery.

    He explained that the trading floor of the new corporate office of LCFE at Niger House, Broad Street, Lagos was already wearing a new look as trading technologies, including control room and servers are being installed.

    There are strong indications that  capital market professionals, including the capital market correspondents shall undergo a new phase of strategic training model by the LCFE as part of the preparations to go

    Chief Ezeagu had at a training session last year explained that the core objective was to develop the much-needed capacity that would  operate in the coming Commodity and Futures Exchange which ASHON is leading the establishment.

    Ezeagu noted that every aspect of the capital market had been undergoing changes, hence , the human capital that would operate in the new environment must have the skills and competittwncowa

    “The market is expanding and  the various kinds of market we are operating  are equally changing as           well.  From the purely equities market,  we are moving into bonds and from bonds we are thinking about commodities and Derivatives.  There is lack of capacity by members of ASHON and we have decided upon ourselves that the best approach is to build capacity from within. We must key into these changes that are taking place to play our role as intermediaries within the market space. Therefore, this training which  focuses on derivatives and commodities is to ensure that we sharpen the skills of our members to trade derivatives as well as commodities, futures, options and the rest of them,” Ezeagu said.

    Corroborating Ezeagu, one of ASHON’s technical partners, Mr Subbiah Rajagopa of Chella Private Limited explained that  as ASHON would soon commence a specialised exchange, it is necessary to expose its members to the rudiments of Commodity and Derivatives market.

  • Investors scramble for Access Bank, Diamond Bank as merger draws near

    Access Bank Plc and Diamond Bank Plc are the two most-sought-after stocks in the Nigerian stock market as investors scramble to meet the closing date for the merger between the two commercial banks.

    Access Bank and Diamond Bank accounted for more than one-quarter of total turnover at the Nigerian equities market last week. The two commercial banks emerged the two most active stocks at the Nigerian Stock Exchange (NSE) with a turnover of 832.55 million shares valued at N3.26 billion shares in 2,569 deals, representing 29.4 per cent of the total turnover at the equities market.

    Diamond Bank, which was believed to have more valuation premium, was the most active stock with a turnover of 548.21 million shares valued at N1.32 billion in 713 deals. Access Bank, the post-merger entity, followed with a turnover of 284.34 million shares worth N1.94 billion in 1,856 deals. Total turnover at the NSE stood at 2.83 billion shares worth N28.14 billion in 28,739 deals.

    Both Access Bank and Diamond Bank had fixed tomorrow, Tuesday February 19, 2019 as the deadline for determining shareholders that will attend the crucial court-ordered meeting scheduled for March 5, 2019.

    At the March 5, 2019 meeting, shareholders are expected to consider and approve the scheme of merger for the combination of the two banks. The approval of the scheme by the shareholders is the final major hurdle in a series of approvals needed to consummate the merger.

    The Central Bank of Nigeria (CBN) and Securities and Exchange Commission (SEC) had earlier approved the scheme. Both CBN and SEC granted “Approval-in-Principle” to the proposed scheme of merger after consideration of reports by parties to the transaction, leaving the decision to accept or reject the proposals to owners of the banks

    The regulatory approvals had allowed the bank to proceed to the next stages of the business combination including obtaining an order of a Federal High Court to convene an extraordinary general meeting of shareholders for consideration of the proposed scheme, holding the court-ordered meeting of shareholders by each bank and the presentation of the approved scheme of merger to the Federal High Court for its sanction among others.

    The Memorandum of Agreement and announcement of headline terms announced earlier by the banks had valued Diamond Bank at approximately NGN72.5 billion, about $200 million. The business combination will see Diamond Bank shareholders receiving N3.13 per share in cash and shares. Diamond Bank shareholders will receive a consideration comprising of N1.00 per share in cash and the allotment of two new Access Bank ordinary shares for every seven Diamond Bank ordinary shares held as at the implementation date.

    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 and 29 million clients. 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.

    Access Bank plans to leverage the best talent of both banks and combine them to create a leading banking franchise in Nigeria. However, while the post-merger entity will retain the Access Bank name, it is intended that the brand will be redesigned to include strong elements of Diamond Bank’s digital and retail brand.

    According to the banks, cost synergies conservatively estimated at N30 billion per annum, pre-tax, will be fully realised within three years post-completion while further revenue and balance sheet synergies will be evaluated by joint implementation committee.

    The two banks outlined the competitive advantages of the merger. Diamond Bank will benefit from Access Bank’s strong culture of risk and capital management expertise and a clear strategy for sustainable growth. Access Bank will take advantage of Diamond Bank’s unparalleled retail banking expertise and strong digital offering. Together, the two companies would create one of Nigeria’s leading banks, with 29 million customers, including more than 13 million mobile customers, as well as 3,100 ATMs and around 32,000 PoS terminals.

    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.

    Diamond Bank currently has 19 million customers, including 10 million mobile users. The combined operation will have relationships with both MTN and Airtel, ensuring that customers of the merged bank will continue to access a strong mobile banking proposition. Access Bank and Diamond Bank also operate from the same technology platform, which the Boards believe will enable them to complete the integration with minimal disruption or impact on customers, in addition to generating significant synergies.

  • Global securities regulators move to enhance commodities market

    The International Organisation of Securities Commissions (IOSCO) has published a report that sets out good or sound practices to assist relevant storage infrastructures and their oversight bodies to identify and address issues that could influence the pricing of commodity derivatives and in turn affect market integrity and efficiency.

    In its final report, Commodity Storage and Delivery Infrastructures: Good or Sound Practices, IOSCO identifies a number of issues that may apply to storage infrastructures and sets forth a range of possible actions to mitigate them.

    The practices are intended to benefit the activities of market participants regarding physical commodities, which are the tangible or cash market goods which underlie derivative contracts that are subject to financial regulation and commodity derivatives, which are financial instruments whose price is derived from the underlying physical or cash market commodities.

    The overarching objective of the good or sound practices is to create a framework that incentivises the market to adopt best practices and self-correction, rather than one that prohibits certain behaviours.

    IOSCO advocated the adoption of these good or sound practices by all relevant storage infrastructures, their oversight bodies, and financial regulators in IOSCO member jurisdictions, as appropriate to their role and activities.

    IOSCO believed that the implementation of these practices will lead to a more transparent and robust environment for the physical storage and delivery of commodities, producing benefits for all commodity market participants.

    IOSCO noted the existence of global or regional codes of conduct for certain commodities, as well as specific regulation in some jurisdictions for commodities such as gas and power. IOSCO does not intend the practices to conflict with or duplicate existing codes and encourages market participants to seek to identify and follow best practice where overlaps exist.

  • Mergers & acquisitions: SEC to realign rules as new Commission takes off

    Nigeria’s apex capital market regulator, Securities and Exchange Commission (SEC), will now restrict regulatory activities on mergers and acquisitions to public companies and change of shareholding of capital market operators.

    The modification of the regulatory purview of SEC comes on the heels of the February 5, 2019 signing into law of the Federal Competition and Consumer Protection Act by President Muhammadu Buhari. The law provides for the establishment of the Federal Competition and Consumer Protection Commission and the Competition and Consumer Protection Tribunal. The new law repeals sections 118, 119, 120, 121 (excluding S. 121(i) (d)), 122, 123, 124, 125, 126, 127 and 128 of the Investments and Securities Act (ISA), 2007, the enabling law for SEC.

    In a circular, SEC indicated it would undertake a review of its regulatory oversight on mergers and acquisitions as well as applicable fees and guidelines.

    With the Federal Competition and Consumer Protection Act, the role of SEC in relation to mergers will be restricted to mergers and acquisitions by or involving public companies as well as transactions involving a change of shareholding of capital market operators.

    However, if a private company is to be merged with or acquired by a public company, the public company still has a duty to obtain the “No Objection” approval of SEC.

    The review and approval by SEC on mergers will be restricted to primary objective of determining “whether all shareholders are fairly, equitably and similarly treated and given sufficient information regarding the merger”. The Federal Competition and Consumer Protection Commission on the other hand will consider the anti-competitive effects of a transaction in a relevant market.

    SEC will meanwhile continue to enforce compliance with the takeover provisions and monitor acquisition of shares of public companies as enshrined in the ISA, 2007.

    SEC will also continue to oversee corporate restructurings. Every public company undertaking a proposal, scheme, transaction, arrangement, or activity or issue of securities or offer for subscription or purchase of securities in relation to conversion of a public company or the reconstruction of it shares; a carve-out, spin-off, split-off or other form of restructuring of its operations; acquisition or disposal of asset which results in a significant change in the business direction or policy of a public company or any other listed entity whether or not in relation to any proposal, scheme, transaction, arrangement or activity; shall obtain the “No Objection” approval of the Commission.

    However, all completed applications currently filed with SEC prior to the effective date of the Federal Competition and Consumer Protection Act and for which appropriate processing fees had been paid would be continued and completed by SEC.

     

  • Equities halt 8-day rally with N18b loss

    After eight consecutive days of rising share prices, Nigerian equities took a breather yesterday as profit-taking transactions in many large-cap stocks tripped the balance to negative. With 22 decliners to 19 advancers, the market closed with a marginal average decline of 0.15 per cent, equivalent to net capital depreciation of N18 billion.

    The All Share Index (ASI)- the benchmark index at the Nigerian Stock Exchange (NSE), declined from its opening index of 32,462.31 points to close at 32,413.92 points. Aggregate market value of all quoted equities also declined from the opening value of N12.106 trillion to close at N12.088 trillion. These moderated the average year-to-date return to 3.13 per cent.

    As investors sought to monetise and lock in capital gains that accrued over the past eight trading sessions, several stocks across the sectors came under sell pressure. Consequently, most sectoral indices closed in the negative. The NSE Banking Index led with a drop of 1.79 per cent. The NSE Oil & Gas Index dropped by 2.24 per cent while the NSE Insurance Index dipped by 0.73 per cent. However, the NSE Industrial Goods Index appreciated by 1.61 per cent while the NSE Consumer Goods Index rose by 0.89 per cent.

    “We expect to see sustained profit taking in previous advancers in the last two sessions before the elections,” Afrinvest Securities stated.

    Seplat Petroleum Development Company led the losers with a loss of N20 to close at N580. Forte Oil followed with a drop of N1.70 to close at N28. PZ Cussons Nigeria lost N1.25 to close at N12. Guaranty Trust Bank declined by N1 to close at N37.95. C & I Leasing dropped by 81 kobo to close at N7.33. Access Bank lost 45 kobo to close at N6.65. United Capital dropped by 32 kobo to close at N3.20 while Custodian Investment and United Bank for Africa declined by 20 kobo each to close at N6 and N7.75 per share respectively.

    On the positive side, Unilever Nigeria led the gainers with a gain of N4 to close at N44. Okomu Oil Palm followed with a gain of N2.80 to close at N85. Nigerian Breweries and Cement Company of Northern Nigeria rose by 95 kobo each to close at N81 and N21.95. Berger Paints added 75 kobo to close at N8.25. Dangote Cement chalked up 70 kobo to close at N190 while Dangote Flour Mills garnered 50 kobo to close at N8.75 per share.

    Total turnover stood at 470.40 million shares valued at N4.24 billion in 5,858 deals. Diamond Bank was the most active stock with a turnover of 131 million shares valued at N314.36 million. Zenith Bank followed with 44.09 million shares worth N1.1 billion while United Bank for Africa placed third with 40.61 million shares worth N319.49 million.

    “In the absence of a positive catalyst, as well as brewing political concerns, we guide investors to trade cautiously in the short-to-medium term. However, stable macroeconomic fundamentals remain supportive of recovery in the long-term,” Cordros Capital stated.

     

  • Eterna celebrates 30 years, lays out new strategic plan

    •Mulls new capital raising

    Eterna Plc yesterday marked its 30th year anniversary with an assurance of continued growth and expansion in the years ahead. Incorporated as a limited liability company in 1989, Eterna became a public limited liability company in 1997 and had its shares listed on the Nigerian Stock Exchange (NSE) in August 1998.

    Eterna, which has been listed for 21 years, was honoured yesterday with the ceremonial beating of the closing gong for the NSE, the highest honour at the stock market. The equities market continued on the upswing, with the market capitalisation rising by N254 billion to close at N12.106 trillion as against its opening value of N11.852 trillion.

    Speaking at the trading closing ceremony at the Exchange, Managing Director, Eterna Plc, Mr. Mahmud Tukur, said the company has grown over the past three decades through thick and thin and it is now in better position to create greater values for all stakeholders.

    He assured the investing public that the company would build on its impressive track records and deliver better values to shareholders.

    “We are focused on creating additional value for you, 2019 should be an excellent year,” Tukur assured.

    Chairman, Eterna Plc, Mr Lamis Shehu Dikko, commended the investing public for their trust in the company over the past three decades.

    He also assured that the company has been positioned to outperform its previous years and deliver better values to stakeholders.

    Doyen of Stockbrokers, Mr Sam Ndata, described Eterna as one of the good stocks at the stock market noting that the investing public has confidence in the company.

    He said the stockbrokers were happy with the performance of the company over the past 30 years, assuring it of continuing support of the stockbrokers.

    Ndata, the oldest trading stockbroker on the trading floor yesterday, urged the company to continue to provide the investing public with continuous insights into its operations by engaging with the stockbrokers.

    Other members of the board and management of Eterna at the ceremony yesterday included Ms. Kudi Badmus, Chief Finance Officer; Mrs. Afolake Lawal, Non Executive Director; Mr. Oluwole Abegunde, Non Executive Director and Mr Olutola Mobolurin.

    Earlier at a press briefing on the 3oth anniversary, Tukur outlined the company’s five-year strategic plan aimed at expanding the operations of the company and extend its reach within and outside Nigeria.

    According to him, the company plans to build a more diversified business with consolidation of its existing niche market of lubricant and expansion into other new businesses.

    He said the company plans to open some 200 petrol stations during the period of the five-year plan as it seeks to build a robust downstream business.

    He outlined that the company will leverage on franchising, leasing and acquisition while focusing on strategic locations that deliver value for money.

    Tukur said the company plans to raise new capital to support its business expansion, including its expansion into West African and ECOWAS sub region.

    He noted that the company has a stronger balance sheet to support new capital raising having settled its N14 billion debt and completed strategic business enhancement that places it in good stead to pursue new investment opportunities and expansion.

    “Eterna has not raise any fresh equity since 2009 and the market has not been fantastic for raising of equity, but between 2009 and 2018, we have been able to pay over N14 billion in debt and we have grown shareholders fund from N4 billion to N13 billion, All that have been done from internally generated working capital. We have generated profit, we have paid down our debt, and we have improved shareholders value, and now it is time for us to go back to the capital market to raise money to help us continue in our expansion because we are clean, we are debt free, our balance sheet is clean so let us take advantage of it and raise fresh capital to enable us meet our expansion objective, either debt or equity from our shareholders and that is what our current strategy is,” Tukur said.

    He said the company has stronger underlying value than as reflected in the current pricing at the stock market.

    He attributed the undervaluation of the company’s shares to information gap noting that people do not know what the company is all about, its internal restructuring, innovations, capacity building, its businesses and structure among others.

    “Everybody that looks into our share price knows that the company is undervalued relative to its performance, so it is a very good share, we have paid dividend in a very challenging environment,” Tukur said.

     

     

  • Investors jostle for banks as equities sustain rally

    Banking stocks were the most active stocks yesterday as Nigerian equities reopened with continuing rally. With more than four advancers to every decliner, the market extended its sustained rally to seven consecutive trading sessions.

    The All Share Index (ASI)- the main index that tracks share prices at the Nigerian Stock Exchange (NSE), rose by 0.81 per cent to close at 31,781.87 points as against its opening index of 31,529.92 points. Aggregate market value of all quoted equities also increased by N94 billion from its opening value of N11.758 trillion to close at N11.852 trillion. Average year-to-date return improved to 1.12 per cent.

    The positive overall market situation was driven by widespread bargain-hunting across the sectors. All sectoral indices closed on the upside. The NSE Banking Index rose by 1.90 per cent. The NSE Insurance Index followed with a gain of 1.20 per cent. The NSE Oil and Gas Index appreciated by 0.58 per cent. The NSE Consumer Goods Index rose by 0.42 per cent while the NSE Industrial Goods Index inched up by 0.31 per cent.

    Banking stocks dominated the activities chart as investors await the release of the audited reports and dividend of leading banks. Access Bank was the most active stock with 101.62 million shares valued at N700.19 million. United Bank for Africa followed with 69.9 million shares valued at N547.13 million while Diamond Bank placed third with 52.61 million shares worth N125.72 million. Total turnover stood at 551.59 million shares valued at N5.65 billion in 5,229 deals.

    There were 41 gainers against 10 losers. Beta Glass led the gainers with a gain of N6.30 to close at N72.30. Seplat Petroleum Development Company followed with a gain of N5 to close at N565.50. Unilever Nigeria rose by N2 to close at N39. Cadbury Nigeria and Stanbic IBTC Holdings added N1 each to close at N11 and N48 respectively. Dangote Flour Mills chalked up 65 kobo to close at N7.50 while Zenith Bank garnered 55 kobo to close at N24.95 per share.

    On the negative side, Total Nigeria led the losers with a drop of N15.90 to close at N205. International Breweries declined by N1 to close at N29. C & I Leasing dropped by 90 kobo to close at N8.14. Dangote Cement lost 50 kobo to close at N185 while Medview Airlines slipped by 15 kobo to close at N1.70 per share.

    Most analysts expected profit-taking transactions to moderate the rally at the market as investors seek to monetise and lock in capital gains garnered in recent days.

    “Although the domestic bourse posted a positive performance, we believe this may be short-lived as today’s slowdown in gains indicates profit-taking activities may begin in subsequent sessions,” Afrinvest Securities stated.

    Cordros Capital remained cautious, urging investors to trade carefully.

    “Our outlook for equities in the near-to-medium term remain conservative, and we guide investors to trade cautiously, amidst absence of a near term catalyst and political jitters ahead of the upcoming 2019 elections. However, macroeconomic fundamentals remain stable and supportive of recovery in the long term,” Cordros Securities stated.

  • Govt, stockbrokers hold parley on economy

    Stockbrokers and top economic management team of the Federal Government led by Vice President Yemi Osinbajo will this Sunday hold a top-level meeting aimed at enhancing Nigeria’s economic growth.

    The meeting, under the auspices of the Chartered Institute of Stockbrokers (CIS), is expected to chart the course for accelerated economic growth and development. The event scheduled for Lagos has the theme: “Strategies to Achieve Double Digit Growth for Nigeria: The Capital Market Option”.

    Registrar and Chief Executive, Chartered Institute of Stockbrokers (CIS), Mr Adedeji Ajadi said that the meeting would enhance government’s implementation of the 2019 fiscal budget.

    He said that the institute has always provided fora for critical analysis of issues that could bring about economic growth, noting the link between the national economy and the capital market, which is currently under pressure as foreign portfolio investors and their Nigeria’s counterparts dump shares over macroeconomic uncertainties and political risks.

    According to him, the meeting shall provide a veritable platform for some of the best minds in the financial market to dissect the current challenges facing the economy and propose concrete areas where government at all tiers can leverage investment opportunities in the capital market to mobilize medium and long term funds to finance the embattled economy.

    The event is believed to be part of the outcome of a recent retreat by the institute on the way forward for Nigerian economy and the capital market.  The Council of CIS has consistently urged that stockbrokers should be involved in all spheres of economic issues as they play pivotal role in the financial market.

    President and Chairman of Governing Council, Chartered Institute of Stockbrokers (CIS), Mr Adedapo Adekoje had upon assumption of office last year reiterated the essence of government’s cordial relationship with the capital market operators in order to build investor confidence.

    According to him, there is a linear relationship between the growth and development of any economy and that of its capital market.

    He explained that the stock market had always been a barometer that mirrors the true position of the economy as the economy remains the underlying asset for the market.

    Adekoje underscored the need for the government to always consider the implications of every political and economic decision on the capital market.

  • Investors up stakes as equities sustain rally

    The momentum of activities at the Nigerian stock market increased considerably yesterday as quoted equities sustained a third consecutive day of price appreciation. Turnover volume and value rose by 88.3 per cent and 65 per cent respectively, underlining the bargain-hunting that had marked transactions in recent days.

    Benchmark price indices indicated average gain of 0.16 per cent, equivalent to net capital gain of N18 billion. Average year-to-date return, though still negative, improved to -1.94 per cent.

    Investors staked N4.83 billion on 359.09 million shares in 3,319 deals yesterday as against total turnover of 190.32 million shares valued at N2.93 billion traded in 3,183 deals on Tuesday.  The All Share Index (ASI)- the main value-based index that tracks share prices at the Nigerian Stock Exchange (NSE), rose from its opening index of 30,773.57 points to close at 30,821.80 points, an increase of 0.16 per cent and almost a double of 0.09 per cent recorded in the previous day.

    Aggregate market value of all quoted equities also increased from its opening value of N11.476 trillion to close at N11.494 trillion. There were 19 gainers to 17 losers. The overall market position was boosted largely by gains recorded by large-cap banking and manufacturing stocks.

    Most sectoral indices also closed on the positive. The NSE Consumer Goods Index rose by 1.2 per cent. The NSE Banking Index appreciated by 0.6 per cent while the NSE Insurance Index rose by 0.5 per cent. On the downside, the NSE Industrial Goods Index declined by 0.6 per cent while the NSE Oil & Gas Index slipped by 0.1 per cent.

    Nestle Nigeria, NSE’s highest-priced and second most capitalised company, led the gainers with a gain of N40 to close at N1,460. Guaranty Trust Bank, Nigeria’s most capitalised financial institution, followed with a gain of 60 kobo to close at N34.70. Flour Mills of Nigeria appreciated by 45 kobo to close at N19. Berger Paints Nigeria added 40 kobo to close at N7.40. Dangote Flour Mills rose by 30 kobo to close at N6.35 while Learn Africa chalked up 13 kobo to close at N1.50 per share.

    On the negative side, Dangote Cement, NSE’s most capitalised company, led the losers with a drop of N1.50 to close at N188. Custodian Investment followed with a loss of 60 kobo to close at N6.20. International Breweries and Lafarge Africa lost 25 kobo each to close at N30 and N12.15 while May & Baker Nigeria slipped by 11 kobo to close at N2.34 per share.

    Banking stocks dominated the top activities chart. FBN Holdings was the most active stock with a turnover of 88.57 million shares valued at N659.97 million. Zenith Bank followed with a turnover of 55.74 million shares worth N1.27 billion while Japaul Oil and Maritime Services placed third with 36.16 million shares worth N7.23 million.

    “Following the positive performance of the market since the start of the week, we anticipate profit taking in counters that have enjoyed buying interest till the close of the week,” Afrinvest Securities stated.

  • Equities sustain modest rally with N11b gain

    Nigerian equities continued on the upswing yesterday as investors sustained bargain-hunting for value stocks across the market. Benchmark indices at the Nigerian Stock Exchange (NSE) indicated modest gain of 0.09 per cent, equivalent to net capital appreciation of N11 billion.

    With nearly two advancers to every decliner, the overall market position was driven by widespread bargain-hunting across the sectors and stocks’ groups. The All Share Index (ASI)- the benchmark index at the NSE, rose by 0.09 per cent from its opening index of 30,745.05 points to close at 30,773.57 points. Aggregate market value of all quoted equities also increased from its opening value of N11.465 trillion to close at N11.476 trillion.

    Total market value of quoted equities was meanwhile boosted with the listing of additional 1.13 billion ordinary shares of 50 kobo each valued at N734.5 million by Consolidated Hallmark Insurance. The negative average year-to-date return improved marginally to -2.09 per cent.

    All sectoral indices closed on the upside with the exception of the NSE Consumer Goods Index, which slipped by 0.14 per cent. The NSE Insurance Index rose by 1.03 per cent. The NSE Oil and Gas Index appreciated by 0.39 per cent. The NSE Industrial Goods Index rose by 0.22 per cent while the NSE Banking Index inched up by 0.21 per cent.

    “We expect bargain hunting to further persist but do not rule out the possibility of sell-offs in subsequent trading sessions as we approach the general elections,” Afrinvest Securities stated in a post-trading note.

    Beta Glass led the 21-stock gainers’ list with a gain of N6 to close at N66. Stanbic IBTC Holdings followed with a gain of 90 kobo to close at N46.90. NASCON Allied Industries appreciated by 40 kobo to close at N17.90. Guaranty Trust Bank rose by 25 kobo to close at N34.10. Oando added 15 kobo to close at N5 while Access Bank, FBN Holdings, United Capital and Nigerian Breweries rose by 10 kobo each to close at N6.30, N7.50, N3.28 and N78 respectively.

    On the negative side, Dangote Cement led the 12-stock losers’ list with a drop of 50 kobo to close at N189.50. Dangote Sugar Refinery followed with a loss of 45 kobo to close at N13.50. Zenith Bank declined by 15 kobo to close at N22.75. Nigerian Aviation Handling Company dropped by 13 kobo to close at N3.32 while Nestle Nigeria lost 10 kobo to close at N1,420 per share.

    Total turnover stood at 190.32 million shares valued at N2.93 billion in 3,183 deals. Guaranty Trust Bank was the most active stock with a turnover of 49.24 million shares valued at N1.67 billion. Zenith Bank followed with a turnover of 20.74 million shares worth N473.25 million while FBN Holdings placed third with 18.87 million shares valued at N140.87 million.

    Most pundits remained cautious about the outlook for the market, especially as the February 16, 2019 general elections draw near.

    “We reiterate our negative outlook for the equities market in the short to medium term, amidst political concerns ahead of the 2019 elections, and the absence of a positive market trigger. However, positive macroeconomic fundamentals remain supportive of recovery in the long term,” Cordros Capital stated.