Nigerian Exchange Limited

Financial Services Stocks Plunge, Dragging Local Bourse by N257bn Last Week

Ecobank Nigeria and FBN Holdings Engaged in Dispute Over Acquisition as Market Capitalization Shrinks

Published

1 year ago

July 17, 2023

The Nigerian Exchange Limited (NGX) closed in the red last week as stocks of FBN Holdings Plc, Ecobank Transnational Incorporated, and other financial services stocks plummeted.

The market capitalisation of all the listed equities declined by N257 billion to N34.069 trillion while the All-Share Index shed 470.68 base points or 0.75 percent settled at 62,569.73.

The spotlight of the week fell on Ecobank Nigeria Limited and FBN Holdings, who found themselves entangled in a dispute over the recent acquisition of FBN Holdings shares by an entity associated with renowned businessman Oba Otudeko, the former chairman of FBN Holdings.

The disagreement reportedly revolves around an alleged unsettled debt of N13.5 billion. This confrontation added to the existing market uncertainties and cast a shadow over the financial sector’s future.

Unfortunately, last week’s performance showcased a downward trend in most indices, with the NGX Oil and Gas, NGX Lotus II, and NGX Industrial Goods Indices being the only exceptions as they appreciated by 1.43 percent, 0.72 percent, and an impressive 9.01 percent, respectively.

On the other hand, the NGX ASeM and NGX Sovereign Bond Indices ended the week unchanged.

The volume of stocks traded witnessed a significant decline of 46.64 percent, as investors navigated a total of 5.246 billion shares valued at N63.417 billion in 57,234 deals, compared to the previous week’s figures of 9.831 billion shares valued at N145.408 billion in 54,478 deals.

This substantial drop in trading activity further emphasized the cautious approach adopted by market participants.

Analyzing the equity turnover by industry, the Financial Services Industry dominated both the volume and value categories. With 3.494 billion shares worth N38.032 billion traded in 28,633 deals, this sector contributed 66.60 percent and 59.97 percent to the total equity turnover volume and value, respectively.

The Conglomerates Industry followed with 451.410 million shares worth N2.186 billion in 3,147 deals, while the ICT Industry recorded a turnover of 332.705 million shares worth N5.638 billion in 4,207 deals.

The top three equities by volume were United Bank for Africa, Transnational Corporation Plc, and FBN Holdings Plc. The three accounted for a combined 1.222 billion shares worth N15.523 billion in 8,260 deals and contributed 23.28 percent and 24.48 percent to the total equity turnover volume and value, respectively.

The gainers’ table during the week was topped by Daar Communications, whose shares surged by an impressive 50 percent to close at N0.30. This was followed closely by John Holt with a gain of 44.80 percent to close the week at N1.81.

Nascon Allied Industries Plc witnessed a rise of 22.49 percent, closing at N28.05, driven by the anticipation of an impending merger with Dangote Sugar Refinery and Dangote Rice.

However, the financial services sector dominated the losers’ table, with FBN Holdings experiencing a significant dip of 22.17 percent, closing at N15.80.

Ecobank’s stocks followed suit, losing 23.03 percent to close at N12.70. Wema Bank saw its share value decline by 25.55 percent, closing at N4.05, while Sterling Holdco dropped by 25.42 percent to close at N3.11.

Fidelity Bank also suffered, with its stocks witnessing a dip of 24.97 percent, closing at N6.70. In addition, Access Holdings saw its shares depreciate by 20.27 percent, closing at N14.95, despite reports of expansion plans across several African countries.

With last week’s market performance leaving investors concerned, market participants will closely monitor the resolution of the Ecobank Nigeria and FBN Holdings dispute, as well as the overall stability and resilience of the financial services sector in the coming weeks.

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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

Nigerian Exchange Recovers from Early Week Losses, Market Value Hits N55.6 Trillion

Published

12 hours ago

September 11, 2024

Samed Olukoya

Nigerian Exchange Limited - Investors King

The Nigerian Exchange Limited (NGX) rebounded on Tuesday after opening the week in the red.

The NGX All-Share Index appreciated by 0.62 percent to 96,802.8 points while the market value of listed equities stood at N55.626 trillion.

Investors traded 406,194,548 shares valued at N13.313 billion in 12,241 transactions during Tuesday’s trading session.

Investors continued to show interest in Oando, which emerged as the most traded equity in both volume and value.

A total of 58,485,705 shares worth N5.521 billion were exchanged, with Oando’s stock appreciating by N6, or 6.7 percent, from N89.5 to N95.5 per share.

The second most traded stock on Tuesday was Access Holdings Plc with 30,379,481 shares valued at N557.65 million transacted.

However, Access Holdings’ shares lost 55 kobo, or 2.96 percent, declining from N18.95 to N18 per share.

The Exchange’s year-to-date (YtD) return improved to 29.46 percent.

SFS REIT led the gainers’ chart, increasing by N14.80, or 9.98 percent, from N148.35 to N163.15 per share. This was followed by Custodian Investment, which gained N1.10, or 8.87 percent, rising from N12.40 to N13.50, while RT Briscoe moved from N2.82 to N3.10 per share.

Nigerian Exchange Limited

Investors Lose N112 Billion as Equities Market Declines on Monday

Published

1 day ago

September 10, 2024

Samed Olukoya

The Nigerian equities market opened the week in the red as the Exchange shed N112 billion on Monday.

Investors traded 774,377,516 shares worth N14.65 billion in 10,412 transactions during the trading session.

The market value of listed stocks and the all-share index rose by 0.24 percent to settle at N55.28 trillion and 96,205.85 points, respectively.

Eterna led the gainers with a 10 percent increase, closing the day at N33.00 per share. This was followed by Tantalizers, which also saw a 10 percent rise to N89.50. Oando and FTN Cocoa Processors appreciated by 9.95 percent and 9.93 percent, respectively, closing at N89.50 and N1.66.

On the other hand, Learn Africa led the losers with an 11.18 percent decline, dropping to N4.13 per share.

Julius Berger Nigeria followed, losing 10 percent to close at N153.45. Transcorp Power shed 9.99 percent to settle at N301.70, while McNichols dropped 9.4 percent to close at N1.35.

Further analysis showed that Jaiz Bank was the most traded stock in terms of volume, with investors transacting 247 million shares. Zenith Bank, FBN Holdings, and Guaranty Trust Holding followed with 173 million shares, 41.5 million shares, and 33.9 million shares, respectively.

Last week, the Exchange lost N83 billion as the All-Share Index and market capitalisation dipped by 0.15 percent due to sell-offs in big stocks.

Nigerian Exchange Limited

Transcorp Power Extends Decline, Market Value Dips to N2.26 Trillion

Published

1 day ago

September 10, 2024

Samed Olukoya

Transcorp Power Plc on Monday extended its decline as the company’s directors offloaded their shares to increase liquidity.

The share dipped by 9.99% from N335.2 per share it opened the day to close at N301.7 a share.

Transcorp Power has been trading at about a 22% discount to its highest share price since listing, prompting investors to take profits before further potential market corrections.

The NGX now values Transcorp Power’s outstanding 7.5 billion shares at N2.262 trillion, down from its previous highs.

Market analysts believe this correction was inevitable, given the thin trading activity compared to the company’s substantial market value.

The drop is being viewed as a natural market adjustment, but the scale of the decline has left many investors and market watchers concerned about future movements in Transcorp Power’s stock price.

Despite the decline, Transcorp Power remains viable in the utilities sector, and the current market shake-up may present a buying opportunity for investors looking to capitalize on the lower price.

The company has yet to release an official statement addressing the stock decline, but market participants will be watching closely to see how Transcorp Power navigates this period of volatility.

Investors will also be keen to understand whether the company’s fundamentals can support a rebound in the near future, especially as the broader market faces challenges related to economic uncertainty and profit-taking activities.