The Nigerian Exchange (NGX) Limited last Friday placed a full trading suspension on the shares of Guaranty Trust Bank(GTBank) Plc.
According to the NGX, the suspension was necessary to prevent trading in the shares of the bank in preparation for the eventual delisting of GTBank to pave way for the listing of the holding company(Holdco), Guaranty Trust Holding Company Plc on NGX.
Shareholders of the GTBank had ratified the plan to adopt a Holdco structure and the Group Managing Director of the bank, Mr. Segun Agbaje, had told them the development would see a new corporate entity, Guaranty Trust Holding Plc, take the place of GTBank on the London and Nigerian Stock Exchanges.
He explained that change would entail a 1:1 share transfer while the Holdco would serve as the parent company and corporate center for GTBank Nigeria, all GTBank African subsidiaries and all other new businesses that will be created following the transition.
“Our transition into a Holdco is a necessary step to future-proofing our leadership position, sustainably growing our earnings and achieving our long-term goal of becoming one of the top five financial institutions in Africa. It is also a critical part of our response to the seismic shifts in customer expectations and changes in business models,” Agbaje had said.
He noted that as a Holdco, they will compete more effectively with non-banks in the new competitive landscape; pairing their strength in financial services with an aggressive focus on creating value in every aspect of their customers’ lives.
“We will create a new payments business to deliver the innovative solutions that will deepen and extend digital financial services across Africa. We also believe that we are in a better position to drive an asset management business and a pension fund business, given our strong retail base and digital-first approach to financial services, which we have honed over the past decade. Taken together, our entry into these new growth areas will allow us to maximize our potential in a way that banks were restricted from and enhance the value we create as a platform for enriching lives,” he said.
According to him, following a decade of birthing innovative ideas and nurturing them into businesses, the Holdco structure would he bank to unleash the power within, in ways that allow us to thrive in spaces banks were excluded, build out the full value of the innovations they have nurtured over the years and deepen the value we can create stakeholders.
Investors Lose N720bn in Midweek Sell-Offs
Investors at the Nigerian Exchange Group lost N720 billion on Wednesday, the third consecutive day of bearish activity on the exchange.
The Exchange has now lost a combined N1.54 trillion in the last three days.
On Wednesday, the All-Share Index plummeted by 1.31% to 99,302.37 points while market capitalization dropped to N54.32 trillion. This downward spiral brought the year-to-date returns to 32.80%.
Market breadth remained negative with only five gainers compared to 52 decliners.
Notable gainers included PZ Cussons, Juli Plc, and Axa Mansard, while FCMB Group, Lafarge Africa, and Nigerian Breweries led the decliners with losses of 10% each.
Bearish sentiments spread across various sectors, particularly Banking, Insurance, and Consumer Goods, experiencing declines of 6.90%, 3.72%, and 1.20%, respectively.
The negative trend was fueled by sell-offs in prominent stocks like Sterling Financial Holdings, Wema Bank, and AccessCorp.
Despite improved trading volume and total deals, which rose by 41.28% and 15.40% respectively, the total traded value fell by 4.80% to N5.83 billion.
Transcorp Plc emerged as the most traded security by volume, while Zenith Bank led in traded value at N1 billion, indicating mixed sentiments among investors amidst market uncertainties.
FBN Holdings, Multiverse, MTN Nigeria Lead Losers on Nigerian Exchange
FBN Holdings, Multiverse, and MTN Nigeria emerged as the top losers on the Nigerian Exchange Limited (NGX) on Tuesday as market capitalisation dipped by N773 billion.
FBN Holdings, one of the most capitalized financial firms, declined by 10% to close at N30.60 per share.
This drop comes after the company had recently risen to prominence in the financial sector.
Multiverse, an active player in the industrial goods sector, also shed 10% to settle at N15.30 per share while MTN Nigeria saw its shares dip by 9.94% to N222.90 per share.
The downward trend in these key stocks contributed to the overall bearish performance of the Nigerian Exchange as the All-Share Index dipped by 1.39% and market capitalisation moderated to N55.04 trillion.
Market sentiment remained negative, with 27 losers outweighing 10 gainers, indicating widespread sell-offs across various sectors. Africa Prudential Plc, Omatek, and Juli Plc were among the few gainers.
Despite the challenges faced by these companies, market analysts remain cautiously optimistic about the prospects of the Nigerian Exchange.
They emphasize the importance of monitoring market dynamics and making informed investment decisions amidst the prevailing volatility.
As the Nigerian Exchange navigates through turbulent waters, investors are advised to exercise prudence and diligence in their investment strategies to mitigate risks and capitalize on potential opportunities that may arise in the market.
Nestle, Eterna, Fidson Drag Nigerian Exchange Down, Wiping Out N51bn
The Nigerian Exchange (NGX) opened the week in the red as Nestle Plc, Eterna, and Fidson Healthcare Plc closed lower to wipe out a combined N51 billion from the market capitalization.
Nestle Plc shed 10 percent to close at N990 per share while Eterna and Fidson Healthcare Plc plummeted by 9.97 percent and 9.82 percent to settle at N15.80 and N15.15 per share, respectively.
At the close of trading, the All-Share Index (ASI) dipped by 0.09 per cent to 101,995.53 points and the NGX market capitalization fell to N55.81 trillion.
This downturn reflects investors’ concerns about the stability of these key companies amidst broader economic uncertainties.
Analysts had anticipated a bearish sentiment as investors sought guidance from economic policymakers and corporate earnings reports.
With the NGX struggling to find solid footing, investors remain cautious about their portfolio allocations, especially with rising fixed-income yields and impending monetary policy decisions.
The trading session saw a marginal increase in transaction volume, rising by 1.14 percent to 294.32 million units.
However, the value of transactions surged by 12 per cent to N6.72 billion, indicating intensified trading activity despite the overall market decline.
Also, the number of deals rose by 29 percent to 9,957, showcasing heightened market participation.
While the banking sector recorded a modest 1.35 percent gain, driven by increased interest in FBN Holdings, JaizBank, and Sterling Financial Holdings Plc, other sectors faced challenges.
The consumer goods and oil/gas sectors experienced notable declines, contributing to the overall negative sentiment.
As market participants await corporate earnings reports and the outcome of the Monetary Policy Committee meeting, the NGX remains susceptible to volatility, highlighting the need for cautious investment strategies in the current economic landscape.
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