Investors in Nigeria’s equity market are displaying reduced interest in banking stocks as they await the half-year scorecards of tier-1 lenders.
The sustained selling pressure on banking and oil & gas stocks has hindered significant market advancement recently.
For instance, as Wednesday’s trading session concluded, the market recorded a marginal increase of just 0.01 percent or N2 billion. The year-to-date (YtD) return for the market remains at an impressive +27.79 percent.
In the current week, the market has seen a rise of 1.19 percent, while this month, it has gained 1.80 percent.
Steady Naira Exchange Rate at 900/$
In the parallel segment of Nigeria’s foreign exchange (FX) market, the Naira to Dollar exchange rate continues to remain stable.
According to available data FX dealers sold dollars at N900/$ to willing buyers and bought from willing sellers at N890/$.
Nigerian Exchange Limited Sees Marginal Gains
The Nigerian Exchange Limited All-Share Index (ASI) and the total equities market capitalization showed slight increases from the previous day’s figures of 65,488.67 points and N35.842 trillion, respectively, to 65,492.92 points and N35.844 trillion.
Transcorp Hotels led the top advancers’ list, with its stock price rising from N36.70 to N40, marking a gain of N3.30 or 8.99 percent. It was closely followed by Transnational Corporation, which saw its share price increase from N4.48 to N4.80, reflecting a gain of 32 kobo or 7.14 percent.
The most actively traded stocks on the Bourse included Transcorp, Universal Insurance, Dangote Sugar, Fidelity Bank, and CHI Plc.
Ikeja Hotel Pursues Additional Capital
At the recently held Annual General Meeting of Ikeja Hotel Plc, shareholders approved a dividend payment of 7.5 kobo per ordinary share, totaling N155.909 million.
Also, shareholders gave the green light for a bonus issue of 1 (one) share for every 3 (three) shares held in the company, amounting to 692,932,133 units at 50 kobo each. This bonus issue will be financed from the Company’s retained earnings as of the 2022 audited accounts.
Furthermore, shareholders authorized the company to raise additional capital by issuing 1,133,888,945 units of unissued shares through a rights issue at a rate to be determined by the board of directors.
This offering will be extended to existing shareholders at a ratio of 6 (six) new ordinary shares for every 11 (eleven) ordinary shares held in the company. Eligible shareholders are those listed on the register of members as of December 13, 2022, based on the 2022 audited accounts of the Company.
