Nigeria’s Equities Market Witnesses 2.47% Decline as Investors Take Profit in FBN Holdings, Transcorp, and ETranzact

In a surprising turn of events, Nigeria’s equities market witnessed a decline of 2.47 percent or N883 billion on Wednesday, marking the first dip this week.

Investors seized the opportunity to take profits in prominent stocks such as FBN Holdings, Transcorp, and ETranzact, leading to a significant drop in market value.

The negative impact on the Bourse resulted in a decrease in the market’s year-to-date (YtD) positive return, now standing at 24.97 percent. FBN Holdings emerged as the biggest loser on Wednesday as its share price plummeted from N21.50 to N19.35, reflecting a decline of N2.15 or 10 percent while ETranzact closely followed, experiencing a drop from N9.50 to N8.55, shedding 95 kobo or 10 percent.

Similarly, Transcorp’s shares decreased from N4.70 to N4.23, representing a decrease of 47 kobo or 10 percent.

By the end of the trading day, the equities market’s All-Share Index (ASI) and capitalization had fallen from the previous day’s highs of 65,669.29 points and N35.757 trillion, respectively, to 64,046.93 points and N34.874 trillion.

Among the most actively traded stocks, UBA, Japaul Gold, Transcorp, FCMB Group, and Access Corporation took the lead, with investors participating in 13,878 deals that exchanged 1,163,228,654 shares valued at N12.694 billion.

Dangote Cement Launches Series 8 and 9 Commercial Paper Program

Dangote Cement Plc has commenced its Series 8 and 9 Commercial Paper (CP) offer under its Commercial Paper Issuance Programme, with a total value of up to N100 billion. The subscription period for this offering is currently open and is scheduled to close on or before Friday, July 14.

Renowned as Sub-Saharan Africa’s leading cement producer, Dangote Cement operates in ten African countries, boasting a combined capacity of 51.55 million metric tons per annum (35.25 million metric tons in Nigeria). The company maintains a fully integrated business model, overseeing activities ranging from quarrying to manufacturing, sales, and distribution of cement.

Investor Interest Boosts Dangote Cement’s Share Price ahead of Share Buy-Back Program

The announcement of Dangote Cement’s share buy-back program has generated a positive reaction in the market. Analysts from Lagos-based Vetiva Research anticipated this outcome, predicting its impact on Wednesday’s trading session, especially considering the substantial capital gains recorded this year. As a result, investor interest in Dangote Cement shares has pushed the price to N326 per share.

Prior to this surge, Dangote Cement’s share price had experienced significant growth, climbing from a 52-week low of N220 to a 52-week high of N360.7. However, the stock saw a slight decline on Wednesday, reaching N326. As of Friday, July 7, when the commencement date for the share buy-back was announced, the share price stood at N300.1.