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Nigerian Exchange Limited

NGX Market Cap Soars Beyond N40tn, ASI Hits 73,397.71 Points

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The Nigerian Exchange Limited (NGX) has achieved a historic milestone as its market capitalization surged beyond the N40 trillion mark.

This remarkable feat was complemented by the All-Share Index (ASI) crossing the impressive threshold of 73,397.71 points, indicating a substantial 1.28% increase.

The noteworthy development comes on the heels of increased activity in the banking sector, steering the exchange to record-breaking highs.

At the close of trading on Wednesday, both the market capitalization and the ASI closed at N40.164 trillion and 73,397.71 points, respectively.

The driving forces behind the bullish day were banking stocks like GTCO, AccessCorp, Transcorp, FCMB, and United Bank for Africa.

The collective performance of these key players propelled the exchange to achieve a noteworthy upswing, captivating the attention of market participants.

The value of trade on this pivotal day experienced a substantial surge rising by 84.62% to N12.829 billion.

Simultaneously, the volume of traded units grew by 34.88% to 554.64 million units.

The number of deals transacted stood at 7,910 at the close of trading, underscoring the heightened activity and investor participation during this monumental session.

This momentous achievement comes a mere 10 months after the market cap reached the N30 trillion milestone, a testament to the sustained interest of domestic investors.

The optimism surrounding the market’s capability to achieve even greater heights is palpable among capital market stakeholders.

Tunde Amolegbe, the Managing Director of Arthur Stevens Asset Management Limited, attributes the bullish sentiments to the forward-pricing nature of the stock market.

He highlights the market’s anticipation of positive outcomes from the policy reforms initiated by the current administration.

However, he emphasizes the potential for sharp corrections if these expectations fail to materialize.

Analyst Rotimi Fakayejo projects further upward movement, anticipating the ASI to hit 75,000 before the year concludes.

He cites positive expectations for the 2023 year-end results of listed companies, particularly in the banking sector.

Fakayejo envisions improved returns and heightened market performance in 2024, as foreign investors regain confidence in the market, ushering in a new era of prosperity.

The gainers’ chart on this historic day was led by Transcorp, Multiverse, Infinity Trust Mortgage Bank, ETranZact, and Caverton, with gains ranging from 9.66% to 10%.

Meanwhile, the top five losers included Tantalizers Plc, Thomas Wyatt, The Initiates Plc, Juli Plc, and Chams Plc, experiencing losses between 9.05% and 10%.

As the NGX celebrates this momentous achievement, market participants and stakeholders remain watchful, navigating the dynamic landscape of opportunities and challenges that lie ahead.

The record-breaking performance underscores the resilience and potential of the Nigerian capital market, setting the stage for continued growth and prosperity.

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Nigerian Exchange Limited

VFD Group Plc’s Rights Issue Listed on NGX’s Daily Official List

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The Nigerian Exchange Limited (NGX) has listed VFD Group Plc’s Rights Issue on its Daily Official List.

The move follows the approval by the Securities and Exchange Commission (SEC) and represents a crucial step in the company’s growth trajectory.

The Rights Issue comprises 63,342,455 ordinary shares of 50 kobo each priced at N197.33 per share, bringing the total value of the issue to N12.499 billion. With this listing, VFD Group Plc’s total issued and fully paid-up shares have surged from 190,027,365 to 253,369,820 ordinary shares.

According to a report by NGX, the additional shares listed arose from VFD’s Rights Issue on the basis of one ordinary share for every three ordinary shares held as of October 12, 2023.

This move underscores VFD Group Plc’s commitment to expanding its shareholder base and enhancing liquidity in the market.

The approval by SEC for the Rights Issue further solidifies VFD Group Plc’s position in the market. Gbeminiyi Shoda, the Group Company Secretary of VFD Group Plc, confirmed that the Qualification Date for the Rights Issue was October 12, 2023, with the application list opening on December 20, 2023, for a maximum period of 31 days.

VFD Group Plc’s Rights Issue comes on the heels of its recent listing on the Main Board of the Nigerian Exchange Limited (NGX). The listing of 190 million units of shares at N244.88 per share added N46.527 billion to NGX’s market capitalization, reflecting the company’s growing influence in the Nigerian capital market.

VFD Group Plc, known for its sector-agnostic proprietary investment approach, aims to create positive and socially conscious ecosystems by aggregating potentially viable businesses. The Rights Issue listing underscores the company’s strategic move to increase visibility, access capital, and enhance liquidity, ultimately benefiting its investors and stakeholders.

Investors and market analysts are closely watching the developments surrounding VFD Group Plc as it continues to expand its footprint in the Nigerian financial landscape. With the successful listing of its Rights Issue on NGX, the company is poised for further growth and value creation in the market.

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Nigerian Exchange Limited

Nigerian Exchange Sees Historic N18.203tn Gain in Q1, 2024

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The Nigerian Exchange (NGX) has kicked off 2024 with an unprecedented gain as stock investors pocketed N18.203 trillion gain in the first quarter alone.

Investors are reaping the rewards of a bullish trading pattern that has extended from the inauguration of President Bola Ahmed Tinubu in 2023 into the new year.

The Exchange All-Share Index closed at 74,773.77 index points in 2023, a 45.90% gain it carried into the new year while the market capitalization surged to N40.917 trillion by the end of the year.

The first quarter of 2024 witnessed the continuation of this bullish trend as many companies grew in market capital and profit.

In the first quarter, FBN Holdings joined the trillion-naira club while Dangote Cement emerged as the first entity to achieve a market cap of N10tn.

The listing of Transcorp Power Plc further fueled market capitalisation close to the historic N60 trillion mark by March’s end.

Oscar Onyema, the immediate past Managing Director/Chief Executive Officer of the Nigerian Exchange Group, likened the market’s boom to the pre-2008 global meltdown period, highlighting the parallels in euphoria and growth.

Despite challenges posed by escalating inflation, potential interest rate adjustments, and volatile exchange rates, investor confidence remained steadfast.

The NGX-Alternative Security Market recorded a 135.25% gain amid economic uncertainties.

Analysts dissecting the market’s performance emphasized the role of sentiment over fundamentals, indicating a surge driven by optimism rather than concrete economic improvements.

While profit-taking activities and market volatility punctuated the quarter, the overall trajectory remained upward.

Looking ahead, projections for the second quarter anticipate mixed performance, with factors like macroeconomic instabilities and corporate actions shaping investor sentiment.

Nevertheless, the NGX’s stellar performance in Q1 2024 stands as a testament to the resilience and potential of the Nigerian equities market, offering a beacon of hope amid global economic uncertainties.

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Nigerian Exchange Limited

Nigerian Equity Market Loses N289bn Amid Persistent Sell-Offs

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Amidst sustained sell-offs, the Nigerian equity market experienced a significant downturn, losing a whopping N289 billion in market capitalization on Monday.

The All-Share Index, a barometer of the market performance, declined by 0.49%, leading to a year-to-date return reduction of 39.27%.

This downturn brought the market capitalization down to N58.88 trillion.

Despite a few gainers, including Ellah Lakes, Morison Industries Plc, and SUNU Assurance, which recorded gains of 10%, 9.93%, and 9.48% respectively, the market was largely dominated by losers.

Dangote Sugar, International Energy Insurance, and Jaiz Bank led the pack of losers with declines of 10.00%, 10.00%, and 9.92% respectively.

The volume and value drivers for the day were the stocks of the National Infrastructure Development Fund, Jaiz Bank, and MTN Nigeria.

Investors traded a total of 306,821,620 shares valued at N11.38 billion in 9,343 deals.

Market analysts at Meristem Research projected a subdued performance for the week, citing anticipation of a rate hike by the Monetary Policy Committee (MPC).

This expected hike could lead to higher rates at the Treasury Bills auction scheduled for Wednesday, potentially driving investors towards higher yields in the fixed-income market.

Consequently, there might be minimal liquidity in the local bourse space, with investors possibly engaging in profit-taking activities on stocks that have experienced significant gains.

The persistent bearish trend in the Nigerian equity market underscores the cautious sentiment among investors amidst prevailing economic uncertainties and policy changes.

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