The Nation Newspaper

Category: Equities

  • Red Star Express reiterates commitment to value creation

    The management of Red Star Express Plc has expressed its commitment to creating wealth for shareholders.

    Its board of directors recently announced payment of N236 million to shareholders of the company as cash dividend for the immediate past year. Shareholders will receive a dividend per share of 40 kobo.

    Key extracts of the audited report and accounts of Red Star Express for the year ended March 31, 2018 showed decline in the bottom-line. Group turnover rose from N7.3 billion in 2017 to N8.41 billion in 2018. Profit before tax however, declined from N653.2 million in 2017 to N610.59 million in 2018. After taxes, net profit dropped from N426.76 million to N347.56 million.

    Group Managing Director, Red Star Express Plc, Mr. Sola Obabori, said the company is committed to ensuring sustained and steady growth of its operations and return on investments.

    According to him, regardless of the volatile economy, the company will continually invest in its resilient employees, optimise its processes, refine its strategies, engage in cost efficiency, focus on new initiatives and increase its market share across the emerging economic sectors.

     

     

  • Stock Exchange approves Fidson Healthcare’s N4.5b rights issue

    Authorities at the Nigerian Stock Exchange (NSE) have approved the plan by Fidson Healthcare Plc to raise N4.5 billion new equity capital through rights issue to existing shareholders of the healthcare company.

    A regulatory filing at the Exchange at the weekend indicated that the Quotation Committee of the NSE approved the issuance of 900 million ordinary shares of 50 kobo each to existing shareholders of Fidson Healthcare at N5 per share.

    The rights issue will be pre-allotted on the basis of three new ordinary shares for every five ordinary shares held as at the close of business on July 5, 2018.

    Shareholders of Fidson Healthcare had in 2017 approved a plan by the company to raise N6 billion in new capital to boost its working capital and support its expansion plan. At the annual general meeting in 2017, shareholders had authorised the board of directors of Fidson Healthcare to “raise further capital of up to N6 billion through an offer whether by way of public offering, rights issue, private and special placement of shares”.

    The meeting also authorised the directors to absorb oversubscription and to convert existing loans due to any person from the company towards payment for any rights or shares subscribed for. Shareholders also increased the authorised share capital of the company from N1.2 billion to N1.5 billion by the creation of additional 600 million shares of 50 kobo each.

    Chairman, Fidson Healthcare Plc, Mr. Felix Ohiwerei, said the new capital would be used to boost working capital that had been negatively impacted by the depreciation of Naira.

    He noted that the company’s new factory had come on stream at the tail end of 2016 and the company needs additional capital to realise the full potential and utilise the new factory to full capacity.

    Key extracts of the audited report and accounts of Fidson Healthcare for the year ended December 31, 2017 showed that turnover grew by 84 per cent N7.6 billion in 2016 to N14 billion in 2017. Cost of sales increased by 91 per cent from N3.6 billion in 2016 to N6.9 billion in 2017. Pfelix-chairmanbefore tax rose from N443 million in 2016 to N1.57 billion in 2017. With this, earnings per share increased from 21 kobo in 2016 to 71 kobo in 2017.

    The financial reports showed a 53 per cent increase in total overhead including administrative and selling and distribution expenses, from N3.1 billion in 2016 to N4.7 billion in 2017, which was due to an increase in the marketing and distribution expenses.  Finance cost also increased by 45 per cent from N690 million in 2016 to N1 billion in 2017. The increase in finance cost was mainly due to increased working capital to drive growth and a hike in interest rates from financial institutions. Despite the increase in total cost, the company recorded a 127 per cent increase in operating profit which grew from N1.1 billion in 2016 to N2.5 billion in 2017.

    The board of directors of Fidson Healthcare however approved a 300 per cent increase in dividend payout for the 2017 business year. Shareholders will receive a dividend per share of 20 kobo for the 2017 business year, representing an increase of 300 per cent on 5.0 kobo dividend per share paid for the 2016 business year. The company had distributed N75 million as cash dividends to shareholders for the 2016 business year.

     

  • Equities rally N29b gain amid bargain-hunting

    Nigerian equities yes-terday broke a two-day downtrend with a net capital gain of N29 billion as investors sought to take advantage of low share prices. With more companies releasing their half-year results, investors traded on a tit-for-tat to moderate the downtrend that had shaped transactions in the previous trading sessions.

    Average gain yesterday stood at 0.22 per cent, equivalent to net capital gain of N29 billion. Average year-to-date return, though still negative, improved marginally to -4.75 per cent.

    The All Share Index (ASI)-the value-based index that tracks share prices at the Nigerian Stock Exchange (NSE), increased from its opening index of 36,346.80 points to close at 36,427.22 points. Aggregate market value of all quoted equities improved from N13.167 trillion to close at N13.196 trillion. With 20 gainers and losers each, the positive overall market position was driven by gains recorded by large-cap stocks.

    Sectoral indices showed considerable underlying positive trend as all indices closed on the upside. The NSE Banking Index and NSE Insurance Index rose by 0.8 per cent each. The NSE Consumer Index and NSE Industrial Goods Index appreciated by 0.2 per cent while the NSE Oil and Gas Index inched up by 0.1 per cent.

    Nestle Nigeria led the gainers with a gain of N51 to close at N1,501. Cement Company of Northern Nigeria appreciated by N2.30 to close at N28.50. NASCON Allied Industries rose by 50 kobo to close at N20.50. Zenith Bank increased by 45 kobo to close at N23.70. Cutix gathered 39 kobo to close at N4.38 while FBN Holdings rose to 25 kobo to close at N9.65 per share.

    On the downside, International Breweries led the losers with a drop of N2 to close at N35.50. Flour Mills of Nigeria followed with a loss of N1.50 to close at N27.20. Dangote Cement declined by N1 to close at N234. Custodian Investment lost 54 kobo to close at N5.56 while Dangote Sugar Refinery and Nigerian Breweries dipped by 50 kobo each to close at N15 and N104 respectively.

    Total turnover stood at 171.22 million shares valued at N2.98 billion in 3,595 deals. Zenith Bank was the most active stock with a turnover of 30.29 million shares worth N717.23 million. United Bank for Africa followed with a turnover of 21.71 million shares worth N205.71 million while FCMB Group placed third with 19.01 million shares worth N35.97 million.

    “We expect the market to close the week in the green, supported by bargain hunting in fundamentally sound stocks as observed in today (Thursday)’s trading session,” Afrinvest Securities stated.

     

     

  • Union Bank grows half year profit by 25% to N11.5b

    Union Bank of Nigeria (UBN) Plc recorded double-digit growths across key performance indices in the first half with net profit rising by 25 per cent to N11.5 billion within the six-month period.

    Key extracts of the interim report and accounts of UBN for the period ended June 30, 2018 released yesterday at the Nigerian Stock Exchange (NSE) showed that gross earnings rose by 16 per cent to N83.3 billion in first half 2018 as against N72.1 billion recorded in first half 2017. Interest income had risen by 10 per cent from N56.6 billion in 2017 to N62.2 billion in 2018. Non-interest income grew by 37 per cent from N15.4 billion to N21.1 billion. Net operating income increased by 22 per cent from N41.9 billion to N50.9 billion. Profit before tax rose by 23 per cent to N11.7 billion in first half 2018 as against N9.5 billion recorded in comparable period of 2017. After taxes, net profit rose from N9.2 billion in first half 2017 to N11.5 billion in first half 2018.

    Chief Executive Officer, Union Bank of Nigeria (UBN) Plc, Mr. Emeka Emuwa, said the first half performance showed that the bank has continued to see positive results from its efficiency and productivity drive.

    According to him, across all its business lines, the bank witnessed strong underlying performance, translating into improved earnings as it also continued to focus on the recovery of non-performing loans.

    He noted that with the resolution of the large real estate exposure which was impaired in December 2017 in second quarter of this year, the group’s non-performing loan ratio came down to 10.8 per cent from 14.9 per cent and 19.8 per cent recorded by March 31, 2018 and December 31, 2017 respectively.

    “The group continues to demonstrate its ability to deliver strong results notwithstanding a competitive and challenging operating environment,” Emuwa said.

    He outlined that the group would in the second half of the year, continue to focus on productivity, leveraging its enhanced platform to deliver best-in-class services to its customers and taking advantage of targeted opportunities across business lines and geographies.

    Chief Financial Officer, Union Bank of Nigeria (UBN) Plc, Oyinkan Adewale pointed out that with low-cost deposits now accounting for 70 per cent of total deposits as against 67 per cent as at December 2017, group’s cost of funds fell in first half of 2018.

    “We are pleased that for the first time since 2012, the group’s retained earnings moved from a negative to a positive position, thus eliminating a major technical impediment to the payment of dividends,” Adewale said.

    Adewale noted that operating expenses in the first half were affected by some one-off items, as well as a combined 25 per cent increase in NDIC premium and AMCON levy, assuring that the group would intensify its cost rationalization initiatives in the remaining part of the year.

  • Dangote Cement invests $3bn to drive Pan-African growth

    Nigeria’s most capitalised quoted company, Dangote Cement Plc, has invested $3 billion in its Pan-African operations as the cement group continues to invest in expansion of its plants and terminals across the continent.

    Group Chief Executive Officer, Dangote Cement Plc, Engr. Joseph Makoju, said the cement group has invested $3 billion to build manufacturing plants and import and grinding terminals across Africa.

    The group’s operations include Cameroon, 1.5 Mta clinker grinding; Congo, 1.5 Mta; Ghana 1.5 Mta import; Ethiopia, 2.5 Mta; Senegal, 1.5 Mta; Sierra Leone, 0.7 Mta import; South Africa, 2.8 Mta; Tanzania, 3.0 Mta and Zambia, which has a 1.5 Mta plant.

    Makoju said total Nigeria sales volumes went up by 13.9 per cent to 7.8Mt in the second quarter ended June 30, 2018, although Pan-African volumes reduced by 3.9 per cent, mainly due to shutdown in Tanzania.

    According to him, the group, which employed 27,952 workers in Nigeria in 2017 had its revenue increased by 16.9 per cent from N412.68 billion in 2017 to N482.44 billion in 2018 while its earning per share also increased by three per cent to N6.60 kobo per share by the end of second quarter.

    “Our first-half performance was very strong and driven by an excellent recovery in Nigeria, where our sales volumes increased by nearly 14 per cent and revenues rose by more than 18 per cent. Pan-African operations saw a slight fall in volumes but both revenues and EBITDA increased because of better pricing and currency conversion effects,” Makoju said.

    He noted that the group achieved the largest-ever issuance of Commercial Paper by a Nigerian company when it issued N50 billion Series 1 & 2 Notes at the end of the quarter, noting that the discount rate reflected the strength of the company and its excellent credit ratings.

    “Of course, our strong performance has been overshadowed by the tragic and heartbreaking events in Ethiopia. I would like to pay tribute to my colleagues- Deep Kamra, Beakal Alelign and Tsegaye Gidey and offer our sincere condolences to their families.”

    Key extracts of the six-month report for the period ended June 30, 2018 showed that profit before tax rose from N155.58 billion in first half 2017 to N185.54 billion in first half 2018. Profit after tax increased from N109.71 billion to N113.16 billion while earnings per share rose from N6.41 to N6.60 per share.

    At the annual general meeting of the cement group last month, Chairman, Dangote Cement Plc, Alhaji Aliko Dangote had attributed the 31 per cent increase in the group’s turnover of N805.6 billion in 2017 to its pan African operations growth which also recorded a significant increase in revenue from N195 billion in 2016 to N258.4 billion in 2017.

    He had noted that Pan African operations increased volumes by 8.4 per cent, with Ethiopia, Senegal, Cameroon and South Africa all performing strongly and close to their operating capacity.

    Makoju had noted that growth was driven by the decision to increase use of local coal in Nigeria, helped to improve fuel security, maintain production uptime and reduce need for foreign currency.

    “We source coal from our parent company, Dangote Industries and from another Nigerian supplier, and we are very happy with the way this has worked out for us because it has enabled us to phase out the use of expensive low pour fuel oil in our kilns and also to reduce our use of imported coal,” Makoju said.

    On the future growth plans, Makoju said the group will focus on building new grinding plants along the coast of West Africa, and ensure it has clinker export facilities in Nigeria.

    “We are looking at the possibility of two new lines in Nigeria, perhaps by the end of 2020 and it is likely these will be in Edo state and Obajana, with a combined capacity of 6.0 Mta,” Makoju said.

  • NAHCO assures higher return on business diversification drive

    Nigerian Aviation Handling Company (Nahco) Plc would take advantage of Nigerian economic diversification and government policies to boost its business diversification and increase returns to shareholders.

    Addressing shareholders at the annual general meeting in Abuja, Chairman, Nigerian Aviation Handling Company (Nahco) Plc, Arc. Usman Bello said the company would take advantage of expected higher agricultural yield to boost its cargo export division.

    He assured shareholders that the company’s business diversification ventures were on track noting that NAHCO Free Trade Zone has moved to the second phase of its development.

    He noted that despite the tough operating environment, the company has been able to improve on its profitability, which enables it to increase dividend to shareholders.

    He pointed out that the company started the current business year on a strong footing citing the first quarter 2018 results which showed improvements in key indicators.

    Managing Director, Nigerian Aviation Handling Company (Nahco) Plc, Mr. Idris Yakubu, who was appointed in 2017, said the company remained strong and more focused in 2018.

    According to him, besides new acquisitions and the facility upgrade undertaken in the export warehouse to facilitate export of perishables and other goods, there has been huge improvement in the services of the company across the country to the delight of the airlines.

    He assured shareholders that the company’s subsidiaries should begin to contribute significantly to the company’s performance in 2018 and beyond.

    Yakubu added that the launching of the Nigeria Air will provide an opportunity to increase the revenue of Nahco, noting that the group’s diversification and pan-Africanisation plans would be revisited later in the year.

    The meeting confirmed the appointment of Engr Mohammed Umar and Mr Akinwunmi Fanimokun as non-executive directors of the company.  The two new non-executive directors represent the interest of, Godsmart Nigeria Limited, which recently purchased 16.7 per cent equity stake in the company through acquisition of shares from some divesting shareholders through the NSE. With 16.7 per cent equity stake, Godsmart Nigeria Limited is the single largest shareholder in the ground handling company.

    Shareholders who spoke at the meeting commended the increase in dividend payout noting that Nahco has shown resilience despite macroeconomic challenges.

    Representative of the Independent Shareholders Association of Nigeria (ISAN), Mr. Moses Igbrude noted that within a short period, the chairman and the new managing director have been able to stabilise the company and place it on the diversification trajectory.

    President, Progressive Shareholders Association of Nigeria (PSAN), Mr. Boniface Okezie, urged the board and management of the company to renew the company’s diversification drive as well as strengthening its subsidiaries to further boost performance.

    President, Association for the Advancement of Rights of Nigerian Shareholders (AARNS), Dr Faruk Umar commended the new managing director for his efforts on the free trade zone diversification.

    Shareholders at the meeting approved 13.6 per cent increase in dividend payout to N406 million, representing a dividend per share of 25 kobo for the 2017 business year as against 22 kobo paid for the previous year.

    Key extracts of the audited report and accounts of Nahco for the year ended December 31, 2017 showed that the company improved its margins, despite a lull in the top-line. Turnover stood at N7.926 billion in 2017 compared with N7.956 billion in 2016. Finance cost reduced from N545 million in 2016 to N213 million in 2017. Profit after tax increased by 33.6 per cent to N776 million in 2017 as against N581 million in 2016. Earnings per share improved from 36 kobo to 48 kobo.

  • Equities continue slide with N101b loss

    Nigerian equities continued on the downside yesterday as investors lost N101 billion to capital depreciation. Benchmark indices at the Nigerian Stock Exchange (NSE) declined by an average of 0.76 per cent, depressing further the negative average year-to-date return to -4.64 per cent.

    The All Share Index (ASI)-the main index for the equities market, dropped by 278.13 absolute points, representing a decline of 0.76 per cent to close at 36,470.05 points as against its opening index of 36,748.18 points. Total market capitalisation of quoted equities declined correspondingly by N101 billion to close at N13.211 trillion compared with its opening value of N13.312 trillion.

    With 27 losers to 20 gainers, the market appeared to show increased bargain-hunting despite the negative overall market position. Most sectoral indices closed positive. The NSE Oil & Gas Index rose by 1.2 per cent. The NSE Banking Index and NSE Insurance Index appreciated by 0.2 per cent each while the NSE Industrial Goods Index closed flat. However, the NSE Consumer Goods Index declined by 2.5 per cent.

    Nestle Nigeria led the losers with a drop of N84.70 to close at N1,442.30. Nigerian Breweries followed with a loss of N2.40 to close at N105.60. International Breweries lost N1.80 to close at N39.20. Zenith bank dropped by N1 to close at N22.95 while UAC of Nigeria declined by 75 kobo to close at N13.25 per share.

    On the positive side, Guaranty Trust Bank led the gainers with a gain of N1.45 to close at N38. Dangote Sugar Refinery followed with a gain of N1.20 to close at N19.50. Oando rose by 45 kobo to close at N5.20. Eterna added 40 kobo to close at N6.90 while NASCON Allied Industries gathered 25 kobo to close at N20.25 per share.

    Total turnover stood at 296.59 million shares valued at N4.86 billion in 3,684 deals. Guaranty Trust Bank topped the activity chart with 78.36 million shares valued at N2.98 billion. Med-View Airline followed with 50 million shares worth N102.25 million while Zenith Bank placed third with 26.51 million shares valued at N608.97 million.

    Analysts at Cordros Capital noted that continued sell-offs and the absence of a near term one-off positive catalyst continues to dampen the outlook for equities in the short-to-medium term.

    “However, strengthened macro-economic fundamentals remain supportive of gains in the long term,” Cordros Capital stated.

    “We maintain that the current sentiment will persist tomorrow. Looking ahead, position taking in fundamentally sound stock remains the only bullish trigger,” SCM Capital stated.

    Analysts at Afrinvest Securities however noted that the Relative Strength Index (RSI) yesterday further fell to 27.5 points below the oversold benchmark, thus cautious optimism on the possibility of a rebound over the near term, buoyed by positive first half 2018 earnings results.

     

  • Egyptian firm eyes Nigerian capital market

    •Acquires stockbroking firm

    EFG Hermes, a leading financial services corporation in frontier and emerging markets, plans to set up operations in Nigeria to further drive its global expansion. EFG Hermes has entered into a definitive sale and purchase agreement (SPA) to acquire 100 per cent stake in Primera Africa, a top-ranked stockbroking firm in Nigeria. EFG Hermes expects to complete the acquisition of Primera Africa by August 31, 2018.

    EFG Hermes will use its Nigerian base as a hub for expansion into West Africa. EFG Hermes recently received FCA license to operate in the United Kingdom.

    Based in Lagos, Primera Africa already offers a comprehensive suite of brokerage and research services to domestic and international investors. Upon completion of the acquisition, Primera Africa will operate under EFG Hermes’ brand name, bringing to the Nigerian market a large network of investors who consistently seek compelling opportunities in high growth markets.

    Group Chief Executive Officer, EFG Hermes Holding, Karim Awad noted that Nigeria is the fourth direct entry as the firm continues its strategy of expanding geographic footprint in high-potential, frontier emerging markets.

    “At the close of this transaction, we will have a direct presence in 12 jurisdictions on four continents to serve our global institutional investors, regional high-net-worth individuals, and local retail investors,” Awad said.

    Co-Chief Executive Officer, Investment Banking, EFG Hermes, Mohamed Ebeid noted that Nigeria is Africa’s largest consumer market and is consistently among the three largest economies on the continent alongside Egypt and South Africa.

    He noted that Nigerian capital market accounted for the largest share of the firm’s brokerage executions and revenue among all frontier markets in which it indirectly executed during 2017.

    “We are entering a market that has a compelling story to tell investors. It is not just one of the largest and most economically diverse frontier markets globally; it is a growth story that has years to run after a series of structural reforms and a devaluation of the national currency. With oil prices now recovering, with significant portfolio inflows, and with the demonstrated ability to tap global debt markets, Nigeria will benefit from broad currency stability, we expect, remaining attractive in valuation terms at the same time,” said Ali Khalpey, the London-based CEO of EFG Hermes Frontier.

    Khalpey noted that given that the firm expects a ramp up in equity market transactions to drive global interest in Nigeria over the upcoming 12 to 18 months; EFG Hermes is well positioned to utilize its global network of clients to capture local market opportunities, capitalizing on its award-winning team’s experience in exploring frontier emerging market opportunities.

    With a current footprint spanning eleven countries across four continents, EFG Hermes started in Egypt and has grown over 30 years of success to become a leading financial services corporation with access to emerging and frontier markets.

     

  • Royal Exchange grosses N12.8b premium in 2017

    Royal Exchange Plc yesterday released its audited report for the 2017 business year, showing modest increase in gross premium written from N12.5 billion in 2016 to N12.8 billion in 2017.

    Key extracts of the audited report and accounts for the year ended December 31, 2017 showed that net premium income stood at N7.1 billion while underwriting profit amounted to N7.6 billion. Total assets grew marginally by five per cent from N31.7 billion in 2016 to N33.3 billion in 2017. Net claims paid in 2017 stood at N3.4 billion, a reduction of four per cent N3.6 billion paid in 2016. Net income before management expenses totaled N2.4 billion in 2017 as against N2.7 billion in 2016.

    Group Managing Director, Royal Exchange Plc, Alhaji Auwalu Muktari, said that despite the very harsh operating environment, the group was able to grow its figures by participating in large-ticket financial transactions, as well as playing in the retail insurance market, which shall be a key growth driver in the years ahead.

    According to him, Royal Exchange Plc envisions a situation where the retail insurance market should be able to contribute between 50 and 60 per cent of its revenues in the future, as the retail market is the future of insurance in Nigeria, considering the population of the country.

    He added that with the recent approval from the National Insurance Commission to undertake agricultural insurance, the company has entered into strategic alliances with various stakeholders in the agricultural space to drive insurance with that sector of the economy and in the couple of months, revenues will start coming in from there.

    “Royal Exchange Plc, will in the years to come, continue to be an aggressive player in the retail market in Nigeria and will be looking at different strategies to increase its product offering and visibility in the marketplace, while not losing track of the corporate market, where the returns and margins, are getting thinner, yearly,” Muktari said.

    He noted that the bottom-line result of the group did not turn out as projected, due to increase in cost of doing business in the country, especially in the area of power generation and the general lull in the economic activities within the corporate markets.

    He pointed out that the company has implemented various cost optimization strategies and business process re-engineering measures which shall guarantee profitability in both the current financial year and the years ahead.

    “Our re-engineering process will center on three main pillars, namely Digital Transformation; Efficient Distribution Channels and Business Process Remodeling. As a group holding company with five subsidiaries across the insurance and financial services landscape, it has become of vital importance that we seek to improve our efficiency across the group by leveraging on cost discipline, astute capital allocation and investments and deployment of operational know-how to make Royal Exchange Plc a leaner, faster, smarter and customer-centric organization,” Muktari said.

    He said the company has repositioned itself to meet the ever-changing needs of the clients, wherever they are, offering them products and services they want, when they want it and how they want it.

    “For the future that we behold, our goal is to continuously redefine, reinvent and differentiate ourselves in the marketplace. The focus of the Board and Management of the Group is to achieve sustainable growth for the company through deepening our revenue base, improving service delivery and its support systems and at the same time, keeping costs in check,” Muktari said.

  • Nahco confirms new major investors own 16.7% stake

    The board of directors of Nigerian Aviation Handling Company (Nahco) Plc yesterday confirmed that a new major investor has acquired 16.7 per cent equity stake in the ground handling company, confirming an exclusive report by The Nation.

    In a regulatory filing at the Nigerian Stock Exchange (NSE), the board of Nahco stated that Godsmart Nigeria Limited had recently purchased 16.7 per cent equity stake in the company through acquisition of shares from some divesting shareholders through the NSE.

    With 16.7 per cent equity stake, Godsmart Nigeria Limited is the single largest shareholder in the ground handling company. Consequent upon the consummation of the transaction, the directors representing the divesting shareholders-Mr Femi Olubanwo and Mr Christopher Oshiafi have tendered their resignation from the board while the new investor has nominated Engr Mohammed Umar and Mr Akinwumi Fanimokun for appointment as non-executive directors.

    The board of directors will hold an emergency meeting today, July 19, 2018, to consider the resignations and appointments.

    “The board wishes to assure the shareholders that the share transfer and related board changes will not adversely affect the company. The board and management will continue improving on the growth and profitability of the company,” the board stated.

    The Nation had reported that three deals were struck penultimate weekend to complete major transfers that started with a cross deal earlier on Thursday, bringing total transactions through the negotiated window of the NSE to 271.848 million shares valued at N1.787 billion in four deals.

    All the deals were cross deals and were consummated through the negotiated window of the Exchange. Penultimate weekend, a total of 119.92 million shares valued at N875.42 million were swapped at N7.30 per share. Also, a total of 5.62 million shares valued at N33.73 million were also crossed at N6 while another 22.69 million shares worth N136.134 million were exchanged in a deal at N6 per share. A deal had been struck for 123.64 million shares valued at N741.83 million at N6 per share earlier on Thursday.

    As off-market, negotiated cross deals, it means that the deals were not subjected to the dynamics of price discovery for the particular period. Off-market trade implied that the deal was sealed outside the floor of the NSE.

    The negotiated cross deal platform of the Exchange is a special-purpose trading platform that is meant for voluminous transaction. By the cross deal, it implies that the buyer and the seller had been prearranged and the transfer at the stock market was a mere perfection of the agreement between the two. The negotiated cross deal allows the parties to the deal to close the deal at reduced cost.