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Nigerian Exchange Limited

Nigerian Stock Exchange Starts New Year on High Note: Market Capitalisation Soars by N666bn



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The Nigerian Stock Exchange (NSE) opened the new year on a high note as investors pocketed N666 billion.

The market recorded new milestones as both the market capitalization and the All-Share Index (ASI) reached unprecedented highs.

At the close of trading, the market capitalization stood tall at a fresh peak of N41.583 trillion, reflecting a notable 1.63% increase.

Simultaneously, the ASI marked a historic moment by crossing the 75,000 mark, closing the day at 75,990.88 points after gaining 1,217.11 points during trading.

Driving this remarkable upswing were key stocks, including Mutual Benefits Assurance Plc, Transcorp Plc (which rose by 9.93%), Unity Bank (up by 9.88%), United Bank for Africa (increasing by 1.36%), Access Holdings (up by 1.73%), Zenith Bank (with a 0.91% rise), and Airtel Africa (posting a 5.99% increase).

The positive market breadth, indicative of investors’ sentiment, was evident with 50 gainers and 18 losers during the trading session.

Leading the gainers were stocks such as AIICO, DaarCom, Sunu Assurance, Ikeja Hotel Plc, Linkage Assurance, and Infinity Trust Mortgage Bank Plc, each gaining 10% and closing at N0.88, N0.99, N1.21, N6.60, N0.88, and N6.60, respectively.

Other notable gainers included Multiverse (up by 9.96% to close at N20.42), Transcorp Plc (increasing by 9.93% to close at N9.52), Eterna Oil (gaining 9.75% to close at N14.10), and PZ Cussons (up by 8.61% to close at N29 per share).

However, some stocks experienced declines, with Cadbury Plc, Thomas Wyatt, and Mecure Industries leading the losers’ chart with a 10% decline to close at N17.10, N2.43, and N10.80 per unit, respectively.

Prestige and Consolidated Hallmark Holdings Plc also lost value, dropping 9.80% and 9.52%, respectively.

Mutual Benefits, Transcorp, Airtel Africa, and GTCO emerged as the volume and value drivers of the day, contributing to the overall positive market trend.

The traded volume of shares increased from 368.63 million units to 515.81 million, valued at N5.57 billion from 9,370 executed deals.

As analysts project continued bullish sentiment throughout the week, investors are positioning themselves for the New Year through sectoral portfolio rebalancing.

Profit-taking and bargain-hunting for dividend-paying stocks are also anticipated, aligning with the upcoming reporting and earnings season.

The NSE’s stellar start sets an optimistic tone for the year ahead, emphasizing the resilience and potential of the Nigerian equities market.

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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



Nigerian Exchange Limited - Investors King

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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