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Nigerian Stock Exchange

Stock Market: NEM Insurance Closed 2020 With 31.62 Percent Gain

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Nigerian Stock Exchange

Stock Market: NEM Insurance Closed 2020 With 31.62 Percent Gain – NEM Insurance Plc led the top gainers’ chart in the last week of 2020 with a 31.62 percent gain as the Nigerian Stock Exchange closed the year with a 50.3 percent gain.

During the four days trading week, investors traded total shares of 1.806 billion valued at N25.966 billion in 14,634 transactions, against a total of 2.756 billion shares worth N40.311 billion exchanged in 17,459 deals in the previous week.

In terms of volume traded, the financial services industry led the activity chart with 1.266 billion shares estimated at N7.630 billion but exchanged hands in 7,251 transactions. The financial services industry contributed 70.07 percent and 29.38 percent to the total equity turnover volume and value traded, respectively.

This was followed by the oil and gas industry with 193.541 million shares valued at N783.214 million carried out in 1,093 transactions. The consumer goods industry came third with a turnover of 117.755 million shares estimated at N1.050 billion shares in 2,116 transactions.

AIICO Insurance Plc, Access Bank Plc and United Bank for Africa Plc were the three most traded equities during the week with a combined 763.173 million shares worth N3.029 billion in 1,764 deals and accounted for 42.25 percent and 11.67 percent of the total equity turnover volume and value, respectively.

The Nigerian Stock Exchange All-Share Index gained 3.79 percent to close the week at 40,270.72 index points while the market value of the Exchange expanded by 3.83 percent to N21.057 trillion.

Accordingly, all other indices finished higher with the exception of NSE Banking, AFR Bank Value, and Consumer Goods which declined by 0.56 percent, 0.02 percent and 0.50 percent while the NSE ASeM and NSE Growth Indices closed flat.

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

Vitafoam Expands Net Asset per share by 54.3 Percent in 2020

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Vitafoam Plc

Vitafoam Expands Net Asset per share by 54.3 Percent in 2020

Despite COVID-19 and challenging business environment, Vitafoam Nigeria Plc grew net asset per share by 54.3 percent from N4.70 achieved in 2019 to N7.25 in 2020.

The company attributed the strong performance to improved innovation and expansion.

Vitafoam reported a 5.2 percent surge in total sales during the period, 8.1 percent decline in cost of sales and 11.4 percent reduction in finance.

Profit After Tax increased by 72 percent to N4.11 billion from N2.39 billion while basic earnings per share increased to N3.05 from N1.82.

Speaking on the company’s performance, Mr Taiwo Adeniyi, Group Managing Director and Chief Executive, said: “Innovation is the drive. As a matter of corporate policy, we do continuous improvement on our products.

“We sell high margin products. We are highly connected with our customers. We know their different needs and as such our products always gain acceptance in the market. Our foams and other products meet specific needs.

“Last year, we launched Buy Rights when our research revealed that different weights require different types of foams. We do not just sell to customers, we offer health counselling to advise on the specific foam for individual customers. This has greatly endeared us to our customers.

“Our investment in the subsidiaries as a growth strategy is beginning to pay off. All of them have turned profitable. We are not insulated from the tough operating environment as all the indices that should drive growth in the manufacturing sector are weak.”

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Nigerian Stock Exchange

Fixed Income N5 Trillion Maturing Security to Sustain Nigerian Stock Exchange

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Interbank rate

Fixed Income N5 Trillion Maturing Security to Sustain Nigerian Stock Exchange

Experts have said the N5 trillion from maturing securities in the fixed income market would sustain the Nigerian Stock Exchange (NSE) momentum in the near-term.

The experts also added that the decision of the Central Bank of Nigeria’s led Monetary Policy Committee (MPC) to maintain the current policy rate would help maintain balance in the market, even with last week’s bearish trend.

Analysts at Atlass Portfolio, who commented in the company’s 2021 economic outlook, said most of the funds from the maturing securities would be invested in the nation’s equities but called for caution as any uptick in yields in fixed income could cut the rally short.

They said: “We expect the rally to continue in the short term, with over N5 trillion in fixed income expected to mature in 2021; some of which will be divested into the equities market.

“Also, with the re-opening of the economy and many businesses returning to full operation in 2021, the potential of listed companies recording profit will improve. Many of the top tier banks and large cap stocks posted good results in third quarter 2020. This shows that they were able to manage the impact of the pandemic well.

“However, we note that the current rally in the market is not backed by strong fundamentals and any possible increase in yields of fixed income instruments could pose a threat to the rally.”

The experts advised investors to pay attention to highly liquid stocks and stocks with good fundamentals and dividend paying history.

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Nigerian Stock Exchange

Transcorp Hotel Lists Additional Shares of 2,642,124,511

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Transcorp hotel

Transcorp Hotel Lists Additional Shares of 2,642,124,511

Transcorp Hotel Plc listed additional 2,642,124,511 ordinary shares on the Nigerian Stock Exchange (NSE) last week.

The additional shares listed on The Exchange arose from the Company’s Rights Issue of 2,659,574,468 ordinary shares of 50 kobo each at N3.76 Kobo per share on the basis of seven (7) new ordinary shares for every twenty (20) ordinary shares held as at Monday, 13 July 2020.

The Rights Issue was 99.34% subscribed. With this listing of the additional 2,642,124,511 ordinary shares, the total issued and fully paid up shares of Transcorp Hotel Plc has now increased from 7,600,403,900 to 10,242,528,411 ordinary shares of 50 kobo each.

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