Nigerian Exchange Limited

NSE Completes Demutualisation – SEC and CAC Approve

Published

4 years ago

March 10, 2021

The Nigerian Stock Exchange (NSE) has received final approvals of its demutualisation plan from the Securities and Exchange Commission (SEC) and Corporate Affairs Commission (CAC) respectively. With these approvals, The Exchange has now completed its demutualisation process.

Under the demutualisation plan, a new non-operating holding company, the Nigerian Exchange Group Plc (‘NGX Group’) has been created. The Group will have three operating subsidiaries, namely: Nigerian Exchange Limited (NGX Limited), the operating exchange; NGX Regulation Limited (NGX REGCO), the independent regulation company; and NGX Real Estate Limited (NGX RELCO), the real estate company. All the entities have been duly registered at the CAC.

Otunba Abimbola Ogunbanjo, NSE Council President, said: “Successful demutualisation was one of my fundamental objectives when I assumed the Presidency of The Exchange. The SEC’s decision today to approve the NSE’s demutualisation plans brings this aspiration to a successful conclusion in a process that included the passage of the Demutualisation Act through the National Assembly. We are elated that this milestone has been achieved as we celebrate the 60th anniversary of the commencement of trading at the Exchange and now look forward to the future public listing of its shares on NGX Limited. On behalf of the NSE, I would like to warmly thank all those that have worked assiduously to achieve this watershed event on our journey to make the NSE a multifaceted exchange that extends across various markets and geographical regions.”

The approvals by the SEC and CAC signify that the NSE can now activate its Transition Plan to a new operational structure and holding company. The extensive Transition Plan, taking the Group and its subsidiaries through to full Operational Launch, covers legal and practical changes to enable the functioning of the new corporate structure, with no loss of service and a seamless transition for market participants. The Transition Plan will also see the inauguration of Boards for each of the new entities, staff reallocation to their respective functions within the operating subsidiaries, operationalisation of business plans and budgets, technology systems transfer, and the requisite arm’s length agreements between the entities. Upon Operational Launch, the Group’s new brands, including a new website, will be unveiled and the Group will be in a position to execute on its strategic vision. Stakeholders, including our new valued shareholders, will benefit from The Group’s enhanced Corporate Governance framework, access to capital to fund strategic developments, and a more globally competitive Exchange.

The approvals also enable the shares of NGX Group Plc, which have been registered with the SEC, to be allotted to the membership pursuant to the Court-approved Scheme of Arrangement. Ahead of its listing on NGX Limited, the shares of NGX Group Plc will be available for bilateral trades to be executed in line with extant rules and regulations of the Nigerian capital market. Otunba Ogunbanjo will serve as the inaugural Chairman of NGX Group Plc’s Board of Directors.

Oscar N. Onyema, the new Group CEO of NGX Group Plc, said: “The Nigerian capital markets should play a role commensurate with Nigeria’s status as Africa’s largest economy. At the Nigerian Stock Exchange, we have a vision that the new group will become the premier exchange hub for Nigerian businesses and for the African economy. We are implementing a series of measures towards this goal, demutualisation being a critical milestone. The completion of demutualisation is a truly significant moment, and we welcome the new possibilities that have opened up for us today.”

Demutualisation of the NSE is pivotal in that it creates new strategic opportunities that will enable the Group realise its vision of becoming Africa’s leading capital market infrastructure provider. The creation of a holding company and a new capital structure will also enable NGX Group Plc to form new dynamic relationships, drive strategic partnerships and gain capital-raising flexibility. It will be recalled that NSE members approved at its last AGM, the listing by introduction of NGX Group Plc on NGX Limited.

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Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Nigerian Exchange Limited

NGX Loses N5.7bn as Market Indicators Drop 0.01%

Published

1 day ago

October 11, 2024

Iyanuoluwa Martins

The Nigerian Exchange Limited (NGX) declined by N5.7 billion on Thursday as a key performance indicator shed by 0.01%.

The All-Share Index (ASI) reduced by 9.95 basis points to close at 97,477.19 points from 97,487.14 points and the market capitalisation closed at N56.014 trillion compared with midweek’s N56.020 trillion.

Total volume and total value traded fell by 22.01% and 33.07% respectively.

Investors traded approximately 277.75 million units valued at N4.6 bullion were transacted across 7,091 deals.

Fidelity Bank was the most traded stock in terms of volume, accounting for 15.62% of the total volume of traded on the Nigerian Exchange. Other volume drivers include UBA (11.06%), Zenith Bank (9.21%), Lasaco (7.97%), and Access Corporation (6.65%) to complete the top 5 on the volume chart.

Zenith Bank emerged as the most traded stock in value terms, accounting for 20.59% of the total value of traded on the exchange.

Given the market direction, the market breadth closed par, recording 22 gainers and 22 losers.

Regency Alliance topped the advancers’ chart with a price appreciation of 10.00 percent, trailed by Caverton which gained +9.73%. Other gainers include Royal Exchange (+8.70%), ABC Transport (+8.20%), UPL (+7.14%), Guinness (+6.21%) and 16 others.

Daar Communication was the top loser, with a price depreciation of -10.00%. Other decliners include Livestock Feeds declining by 9.88%to N3.10. Sunu Assurances lost 9.7% to trade at N1.58, Fidson depreciated by 9.71% to N13.95, and Consolidated Hallmark Insurance crashed by 9.29% to N1.27 among 16 others.

The market sector performance was negative, as three of the five major market sectors were down, led by the banking sector, which dropped by 0.22%.

Also, the oil & gas sector dipped by -0.13% while the consumer goods sector fell by 0.05% and the industrial and insurance sectors closed flat.

The loss witnessed across these sectors can be tied to profit-taking by investors as the wider Nigerian macroeconomic environment became tougher due to inflationary pressures triggered by another hike in the price of petrol in the country, which will translate to denying investors’ pockets.

Nigerian Exchange Limited

Nigerian Stock Market Extends Losses By 0.1%, Investors Count N56bn Loss

Published

2 days ago

October 10, 2024

Iyanuoluwa Martins

The Nigerian Exchange Limited (NGX) sustained its bearish trend on Wednesday, October 9, as investors lost N56 billion after the equities market dropped 0.10%.

The equity capitalisation crashed to N56.02 trillion from N56.07 trillion recorded by the bourse on Tuesday.

The benchmark All-Share Index (ASI) decreased to 97,487.14 points from 97,584.81 recorded the previous trading day.

The market breadth was negative as 15 stocks advanced and 38 stocks declined, while 72 stocks remained unchanged in 8, 582 deals.

On the flip side, the top three losers were Ellah Lakes, ABC Transport and Eterna as they shed 9.84%, 9.63%, and 8.52% each to close at N4.40, N1.22 and N24.70 from the previous N4.88, N1.35, and N27.00 per share.

Lasaco, Mecure, and Julius Berger led other gainers with 10%, 9.47%, and 9.33% growth each in share prices to close at N2.53, N9.25, and N164.00 from the previous N2.30, N8.45, and N150.00 per share.

On the volume index, Fidelity Bank led trading with 66 million shares valued at N988 million in 279 deals followed by United Bank for Africa (UBA) which traded 38 million shares valued at N1 billion in 758 deals and Sterling Bank traded 33 million shares valued at N179 million in 156 deals.

On the value index, UBA recorded the highest value for the day trading stocks worth N1 billion in 758 deals followed by Fidelity Bank which traded equities worth N988 million in 279 deals and Oando traded shares valued at N934 million in 1,098 deals.

Nigerian Exchange Limited

Nigerian Exchange Dips as All-Share Index Falls 0.12%, Loses N70 Billion in Market Cap

Published

3 days ago

October 9, 2024

Iyanuoluwa Martins

The Nigerian Exchange Limited (NGX) closed in the red on Tuesday after the All-Share Index dropped 0.12 percent or 122 points to close at 97,584.81 index points, against the 97,706.70 index points reported on Monday.

Specifically, the market capitalisation, which opened at N56.146 trillion lost N70 billion to close at N56.076 trillion.

Market breadth closed negative with 29 losers and 26 gainers while 64 stocks remained unchanged.

Guinness led the losers’ chart by 10 percent followed by African Prudential, International Breweries, CWG, and UPDC after their share value declined by 9.86%, 9.0%, 6.98%, and 5.95%, respectively.

The top gainers included Regal Insurance, PZ Cussons Nigeria, Cutix, Deap Capital Management & Trust and The Initiates as their share prices advanced by 10.00%, 8.78%, 5.60%, 5.59%, and 5.26%, respectively.

Analysis of the market activities showed trade turnover settled higher relative to the previous session, with the value of transactions up by 39.92%

A total of 719.11 million shares valued at N8.34 billion were exchanged in 9,435 deals, compared to 1.31 billion shares valued at N5.96 billion traded in 10,424 deals recorded in the previous session.

On the volume index, Wapic Insurance led trading with 402 million shares valued at N321 million in 28 deals followed by Fidelity Bank which traded 49 million shares valued at N760 million in 706 deals and Access Corporation traded 25 million shares valued at N500 million in 379 deals.

On the value index, Seplat recorded the highest value for the day trading stocks worth N2.2 billion in 151 deals, Fidelity Bank traded equities worth N760 million in 706 deals, and Oando traded shares valued at N758 million in 708 deals.

As a result, the Year-To-Date (YTD) return decreased by 30.51%