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Nigerian Stock Exchange

Substantial Shareholders Plan to Divest from Eterna Plc

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Stock Investors

Large Shareholders Planning to Sell their Holdings in Eterna Plc

Large investors in Eterna Plc are planning to divest from the company, according to the latest details from the board of the company.

In a disclosure statement titled “Disclosure on Prospective Shareholder Divestment”, the management said it has approved the requests of some substantial shareholders to sell their holdings of the company’s shares.

It said “some of our substantial shareholders have formally informed the Board of Eterna Plc (the Company) that they are in negotiations to sell equity holdings in the Company to a ‘New Investor’.

“As part of the process of the prospective sale, the proposed New Investor intends to undertake due diligence exercise on the Company.

“The Board has reviewed the request for due diligence and approved same at its meeting held today (21st December 2020).

“We notify the Exchange in fulfilment of our obligation to report such matters and will continue to do so in line with the guidelines. However, as a shareholder driven transaction, the Company is yet to have full details of the transaction.”

 

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Nigerian Stock Exchange

Stock Investors Lose for Second Consecutive Day This Week

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Stock Investors Lose for Second Consecutive Day This Week

Nigerian equities market declined on Tuesday to extend its bearish trend by another 0.07 percent this week.

During the trading hours of Tuesday, Transcorp led the most traded stocks with 42,940,581 shares valued at N50,240,479.77 while this was followed by Japaul Gold’s 39,588,880 shares worth N50,871,840.63.

Japaul Gold remained Nigeria’s most traded stock in 2021 so far and closed with a 56.70 percent gain last week with stock investors projecting around N5 per share once the company and H&H Mines Limited closed its ongoing deal.

Stock investors traded a total of 525,006,911 shares valued at N5.337 billion in 5,965 deals on Tuesday.

The market value of listed stocks declined by N16 billion from N21.491 trillion recorded on Monday to N21.475 trillion on Tuesday.

The Nigerian Stock Exchange All Share Index declined by 0.07 percent to 41,051.63 index points, down from 41,082.38 index points on Tuesday.

Top Trades in the Nigerian Stock Exchange Tuesday, January 19, 2021

Symbols Volume Value
TRANSCORP 42,940,581 N50,240,479.77
JAPAULGOLD 39,588,880 N50,871,840.63
ZENITHBANK 28,524,941 N745,993,748.10
BUACEMENT 25,699,145 N2,048,857,020.90
COURTVILLE 21,974,395 N5,327,275.31

Top Gainers in the Nigerian Stock Exchange Tuesday, January 20, 2021

Symbols Last Close Current Change %Change
NB N60 N61 1 1.67%
FLOURMILL N31 N32 1 3.23%
NNFM N7.41 N8 0.59 7.96%
PRESCO N74 N74.5 0.5 0.68%
WAPCO N24 N24.5 0.5 2.08%

Top Losers in the Nigerian Stock Exchange Tuesday, January 20, 2021

Symbols Last Close Current Change %Change
ARDOVA N19.7 N18 -1.7 -8.63%
BUACEMENT N79.9 N79 -0.9 -1.13%
UACN N8.35 N7.9 -0.45 -5.39%
ACCESS N9.6 N9.25 -0.35 -3.65%
UBA N9.1 N8.9 -0.2 -2.20%

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Nigerian Stock Exchange

Low Fixed Income Yields, Improved Economic Conditions and Renewed Optimism Propelled 2020 Bullish Run – Onyema

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CEO of the Nigerian Stock Exchange (NSE), Mr

Low Fixed Income Yields, Improved Economic Conditions and Renewed Optimism Propelled 2020 Bullish Run – Onyema

Mr. Oscar N. Onyema, OON, the Chief Executive Officer, Nigerian Stock Exchange (NSE), on Tuesday, identified some of the factors responsible for 2020 end of the year bullish run during his presentation at the annual 2020 Market Recap and 2021 Outlook.

The CEO explained that while COVID-19 plunged stock prices due to huge sell-off in the first quarter, renewed investor optimism following series of adjustments made by the Federal Government to arrest the situation in the second half of the year bolstered economic conditions and stimulate the 50.3 percent gain recorded for the year 2020 by the Nigerian Stock Exchange.

Mr. Onyema stated, “The year 2020 was indeed a historic one for global capital markets. Facing buffeting headwinds, world markets saw sharp swings and steep losses but largely remained resilient and orderly amid rising uncertainty. For The Exchange, renewed investor optimism coupled with improved economic conditions and low fixed income yields propelled a year-end bull run. Of 93 global equity indices tracked by Bloomberg, the NSE All-Share Index (ASI) emerged as the best-performing index in the world, surpassing the S&P 500 (+16.26%), Dow Jones Industrial Index (+7.25%), and other global and African market indexes, to post a one-year return of +50.03%.”

Explaining the negative impact of the COVID-19 pandemic, he said the global capital market lost USD 18 trillion between February and March 2020 alone. However, global markets rebounded to the pre-pandemic level in June 2020, largely due to stimulus packages, monetary policy actions and public health responses from the world governments and economic actors.

On product performance, he said the Nigerian equities market recovered following the “formal declaration of the U.S president-elect, unattractive fixed income yields, and better-than-expected corporate earnings, the NSE ASI recovered from Q1’20, to close the year at 40,270.72 (+50.03%) and erase losses of -14.90% recorded in 2019. During its remarkable year-end run, the ASI gained 6.23% in a single trading session which triggered a 30-minute halt of trading on all stocks for the first time since the NSE Circuit Breaker was introduced in 2016 to safeguard market integrity in periods of extraordinary volatility.”

“At the close of the year, the NSE’s equity market capitalization was up by 62.42%, from N12.97 trillion in 2019 to N21.06 trillion in 2020 while market turnover saw an uptick of 7.25%, from N0.96Tn in 2019 to N1.03Tn in 2020. Although Initial Public Offering activity was mute, the value of supplementary issues increased dramatically from 2019, rising by 851.37% to N1.42 trillion, from N148.77 billion. Also noteworthy is that for the second consecutive year, equity market transactions were dominated by domestic investors who accounted for 65.28% of market turnover by value (Retail: 44.98%; Institutional: 55.02%) while foreign portfolio investors accounted for 34.72%.

“Capital-raising activities in the fixed income market increased significantly in 2020. The NSE’s bond market capitalization rose by 35.52% from N12.92 trillion in 2019 to N17.50 trillion. Continuing the trend in recent years, the Federal Government of Nigeria dominated issuances, raising over N2.36 trillion which comprised ~92% of total bond issuances. Corporates also leveraged the low yield environment to fund expansion objectives and pursue debt refinancing, raising a total of N192 billion.”

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Nigerian Stock Exchange

Japaul Gold and Ventures Extends Gains by 56.70 Percent Last Week Despite Uncertain Mining Deal

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Japaul Gold and Ventures Extends Gains by 56.70 Percent Last Week Despite Uncertain Mining Deal

Investors don’t seem to be slowing down on Japaul Gold and Ventures Plc after the company announced it was investing in H&H Mines Limited in November 2020 and even changed its name from Japaul Oil and Maritime Services Plc to Japaul Gold & Ventures Plc.

The price of the company’s share gained 55 kobo or 56.70 percent from 97 kobo in the previous week to N1.52 per share last week. The largest gain per single stock on the Nigerian Stock Exchange last week.

Mutual Benefits Assurance Plc followed with 50 percent gain or 14 kobo from 28 kobo per share to 42 kobo per share.

Japaul Gold and Ventures Plc Uncertainties and Risks

Despite a series of complications highlighted by Japaul Gold and Ventures Plc concerning the deal in November, investors seem to be blinded to the level of uncertainties attached to a deal that depends on the success of proposed fundraising to be closed.

The company had announced that it has gotten approval to invest or acquire shares in H&H Mines Limited after its fundraising exercise. Meaning, a failure or suspension of fundraising due to COVID-19 second phase could derail or delay Japaul’s plans to acquire or invest in the company.

Another shocking statement made by Japaul was that the last lap of exploration works will allow the company to know the degree of minerals reserve contained in the mine, meaning it does not know precisely before seeking approval from H&H Mines Limited.

Also, Japaul is not certain it would be carried along, according to an excerpt from the company’s December statement.

“Since Japaul will eventually be part of H&H Mines Limited, it was necessary that Japaul is carried along on the kind of Contract of Drilling to be entered into, and that was why the signing of the Drilling Contract between the Chinese Company and H&H Mines Limited was concluded at Japaul’s Head Office,” the company stated.

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