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Nigerian Exchange Group Insiders Offload Almost N1 Billion Worth of Shares

Substantial Shareholders in the Nigerian Exchange Group (NGXGroup) offloaded almost N1 billion worth of shares at the exchange floor of the Nigerian stock market within two months.

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Nigerian Exchange Group- Investors King

Substantial Shareholders in the Nigerian Exchange Group (NGXGroup) offloaded almost N1 billion worth of shares at the exchange floor of the Nigerian stock market within two months.

This was announced via the Nigerian Exchange Limited (NGX) platform accessed by Investors King and signed by the company secretary, Mojisola Adeola.

Investors king gathered that Woodland Asset Management Company Ltd, an investment manager company sold its 200,000 shares at N21.90 a share at an estimated N4, 380,000 on the 2nd of September, 2022. The same company disposed another 240,000 shares at N19.94 per share worth N4,785,600 on the 4th of October, 2022.

On September 22nd 2022, Cardinal Stone Partners Ltd, an investment banking firm sold its 25,423,999 shares at a price of N18.00 a unit to divest a total sum of N457,631, 982.

Similarly, Equity Capital Solutions Ltd, a licensed capital market operator sold its 50,000 shares at N20.00 per share on the 8th of September, 2022. Amounting to N1,000,000 in divestment. Also, Equity Capital Solutions offloaded another 150,000 shares at a price of N19.90 per share (N2,985,000). To bring the company’s total divestment within the period under review to N3,985,000.

Miri Strategic Emerging Markets Fund LP, a Hedge Fund based in Massachusetts sold its 1,500,000 shares at N19.76 per share, amounting to N29,640,000 on the 16th of September, 2022, and sold another 23,500,000 shares at N16.77 per share at an estimated value of N394,095,000 on the 28th of September, 2022.

Bringing it all together, the amount of the total shares offloaded by the substantial shareholders of the Nigerian Exchange Group is 51.064 million valued at N894.5 million.

NGXGROUP was listed in October 2021 following demutualisation of the Nigerian Stock Exchange (NSE). NGXGROUP listed 1,964,115,918 at N16.15 a unit before the shares took off, gaining N7.4 within four days of its listing. Since then the stock has been on the decline following a series of weak economic fundamentals.

Insiders, the company’s top executive with a substantial stake in the firm, have now started selling off their holdings to avert further catastrophe ahead of the 2023 national elections.

Nigeria’s Security and Exchange Commission (SEC) instituted insider disclosure to enforce transparency across the Nigerian Exchange Limited (NGX) by alerting minority investors and stakeholders in general to the activities of companies’ executives.

Here is the logic, activities of executives can give clues as to happenings within an organisation. For instance, the aggressive selling of NGXGROUP shares indicated possible issues and challenges going forward or a lack of confidence in the company’s future considering that top executives with insider knowledge of the company’s financial position, deals and other vitals are the ones selling off their holdings.

Meanwhile, the Nigerian Exchange Group released its notice of Board Audit and Statutory Audit Meeting informing the Nigerian Exchange Limited and the investing public that an emergency meeting of the Board Risk and Audit Committee to consider the third quarter unaudited financial statement of the Nigerian Exchange will hold today, October 24, 2022.

Following its consideration and the board’s approval, the third quarter unaudited financial statement of the exchange group will be submitted to the Securities and Exchange Commission and the Nigerian Exchange on October 30, 2022.

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Nigerian Exchange Limited

Shares Reconstruction: Transcorp Lists Newly Reconstructed 10,161,997,574 Units of Ordinary Shares

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Transnational Corporation Plc (Transcorp) has delisted 40,647,990,293 shares from the Nigerian Exchange Limited on Monday and listed a newly reconstructed issued share capital of 10,161,997,574 ordinary shares.

In a statement seen by Investors King, the company said “We refer to our market bulletin with reference number NGXREG/IRD/MB73/24/10/10, dated 10 October 2024, wherein the Market was notified that trading in the shares of Transnational Corporation Plc (Transcorp or the Company) was placed on suspension effective, Thursday, 10 October 2024, in preparation for the share reconstruction of the Company’s Issued shares.

“The Market is hereby notified that the entire 40,647,990,293 issued shares of Transcorp were delisted from the Daily Official List of Nigerian Exchange Limited (NGX) on Monday, 28 October 2024, while the newly reconstructed issued share capital of 10,161,997,574 ordinary shares of 50 Kobo each were also today, listed on the Daily Official List of NGX at N44.2 per share.

“The delisting of 40,647,990,293 ordinary shares and listing of 10,161,997,574 ordinary shares on NGX is pursuant to the approval received from the Company’s shareholders at its Annual General Meeting of 27 May 2024 and the no-objection received from the Securities and Exchange Commission.

“Consequently, following the completion of the share reconstruction, the suspension placed on the securities of the Company has been lifted.”

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Nigerian Exchange Limited

Transcorp Gains 314.03% Last Week Despite NGX Closing the Red

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Transnational Corporation Plc (Transcorp), Nigeria’s largest listed conglomerate, gained N34.70 or 313.03% a share last week to close at N45.75 a unit after the company’s unaudited financial statement for the third quarter showed 352% year-on-year growth in profit before tax to N34.566 billion.

During the week, investors on the floor of the Nigerian Exchange Limited (NGX) transacted 2.717 billion shares worth N54.632 billion in 46,848 deals, against a total of 2.142 billion shares valued at N85.946 billion that exchanged hands in 41,217 deals in the previous week.

The Financial Services Industry led the activity chart with a combined 1.821 billion shares valued at N28.958 billion traded in 20,173 deals, therefore, contributing 67.01% and 53.01% to the total equity turnover volume and value, respectively.

The ICT Industry followed with 389.848 million shares worth N6.560 billion in 2,515 deals. In third place was the Conglomerates Industry with a turnover of 160.993 million shares worth N4.746 billion in 3,623 deals.

Fidelity Bank Plc, Chams Holding Company Plc and United Bank for Africa Plc accounted for 1.225 billion shares worth N17.721 billion in 4,912 deals and contributed 45.10% and 32.44% to the total equity turnover volume and value, respectively.

The NGX All-Share index closed the week in the red at 97,432.02 index points, a 2.03% decline from 99,448.91 index points recorded in the previous week. The Exchange year-to-date return moderated to 30.30%.

Also, the market capitalization of listed equities dipped by the same 2.03% from N60.261 trillion to N59.039 trillion.

Similarly, all other indices finished lower with the exception of NGX Banking, NGX AFR Bank Value, NGX AFR Div Yield, NGX MERI Growth, NGX MERI Value, NGX Oil & Gas and NGX Growth which appreciated by 0.19%, 1.76%, 1.52%, 0.16%, 0.48%, 1.15%, and 0.07% respectively while the NGX ASeM index closed flat.

Thirty-nine equities appreciated in price during the week lower than fifty-eight equities in the previous week. Forty-five equities depreciated in price higher than eighteen in the previous week, while sixty-eight equities remained unchanged, lower than seventy-six recorded in the previous week.

 

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Nigerian Exchange Limited

Naira Depreciation and High Interest Rates Force Market Slowdown, Experts Say

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Stockbrokers and investors have abandoned the equity market due to the Naira volatility, lack of market drive towards the end of the year,  and the high interest rate in Nigeria.

A long-time investor, David Adonri explained that the volume of trade usually drops towards the end of the year but the market normalises in January.

With the persistent drop in the value of the Nigerian Naira against foreign currencies, investors are wary of unfavourable currency conversion.

“The equity market reacts to so many things. The depreciation of the naira, which is around N1,700, of course, would impact the market. The foreign exchange position can make people exit the market and convert to hard currency, which is stronger, possibly to come back to the market when they see an improved currency level. That is what we call carry-over trade,” Adonri said.

“We also have the hike in the interest rate, which also causes financial assets to migrate away from the capital market,” Adonri added.

“Third, we are in the period of the year, where seasonally, the market is a little bit down because there is nothing specific to drive the market like full-year results or half-year dividends and so on. So we slide to a low tempo from September up to November until after Christmas the market starts trending up again,” he further stated.

According to a report by the Nigerian Exchange Group (NGX), equity investment transactions dropped in Q3, 2024 compared to the previous quarter of the year.

In the same vein, the National Bureau of Statistics (NBS) reported that capital importation showed that investors shifted from equity investment to portfolio investment.

The portfolio investment includes equity, bonds, and money market instruments.

With the recent shift, the portfolio investment made a 10.37 percent increase amounting to a $106.85 million gain from the N1.03 billion total capital inflow.

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