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Nigerian Exchange Limited

All-Share Index Gains 1.92%, Closes at N84,640.89

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The Nigerian equities surged by 1.92% on Monday as the Exchange sustained its bullish run that has seen several bank stocks hit N1 trillion market capitalisation.

The All-share index grew by 1.92% to close at N84,640.89 index points while the market capitalisation rose by N874 billion. The year-to-date gains also strengthened to 13.20 per cent from 11.06 per cent from the previous trading session.

The most traded stocks and thus drivers of the day’s market were the stocks of Transcorp Plc, United Bank for Africa, Zenith Bank, Access Holdings and MTN Nigeria whose share price stayed flat despite 2,832,680 units worth N791.554m being exchanged in 419 deals.

Transaction volume for the day rose to 807.51 million, compared to the previous trading session’s 600.63 million units with the value of the traded stocks improving to N11.03bn from N9.097bn. The shares were traded in 13,647 deals executed. The number of stocks traded by the close of the session stood at 127.

Market Breadth improved to 68 gainers and eight losers.

The stocks of Chams Holdings, Daar Communications, Axa Mansard, PZ Cussons, Sovereign Insurance Plc and Tantalizer Plc appreciated by 10 per cent each to close at N2.53, N0.99, N6.49, N32.45, N0.66, and N0.55 per units, respectively.

Chams which led the gainers’ chart, over the weekend announced that its fintech subsidiary, Chams Switch, has partnered with Chinese digital payment solution, UnionPay, to boost international payments for UnionPay cards issued by banks in Nigeria.

According to a statement from Chams, the partnership will reinforce collaboration among businesses and traders, engaged in global commerce as it offers a cost-effective alternative for international trade, particularly with a focus on transactions involving China and the Southeast Asia region.

The losers include Abbey Mortgage Bank Plc, Julius Berger, Custodian, Africa Prudential, FBN Holdings, Champion, ABC Transport and United Capital which lost 9.52 per cent, 3.54 per cent, 3.45 per cent, 2.78 per cent, 1.79 per cent, 1.27 per cent, 1.05 per cent and 0.39 per cent, respectively.

Volume and Value drivers of the day’s trading were led by stocks of Transcorp, AIICO, Nascon Allied Industries and Zenith Bank.

On the bullish trend of the market, the Managing Director/Chief Executive Officer of Parthian Partners, Oluseye Olusoga, said that the sustained party was predicated on the inflow of foreign investment.

He said, “We haven’t seen a lot of foreign investors in the market.  A lot of our stocks are cheap now given the devaluation that has happened to the naira. If we can solve our FX problems, wherein foreign investors feel that they can take their money out easily, then I expect them to pile in because, in comparison to other emerging markets, we are relatively cheap but if you are just looking at it based on Nigerian and local factors, I think this rally is due for a significant pullback before we decide whether we are continuing on this trajectory or not.

“At this point, I’m cautiously optimistic except if our FX situation changes significantly. If the FX situation changes, I expect a significant rally because like I said earlier, we are relatively cheap compared to other emerging markets.”

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Nigerian Exchange Limited

Shares Reconstruction: Transcorp Lists Newly Reconstructed 10,161,997,574 Units of Ordinary Shares

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Transnational Corporation Plc (Transcorp) has delisted 40,647,990,293 shares from the Nigerian Exchange Limited on Monday and listed a newly reconstructed issued share capital of 10,161,997,574 ordinary shares.

In a statement seen by Investors King, the company said “We refer to our market bulletin with reference number NGXREG/IRD/MB73/24/10/10, dated 10 October 2024, wherein the Market was notified that trading in the shares of Transnational Corporation Plc (Transcorp or the Company) was placed on suspension effective, Thursday, 10 October 2024, in preparation for the share reconstruction of the Company’s Issued shares.

“The Market is hereby notified that the entire 40,647,990,293 issued shares of Transcorp were delisted from the Daily Official List of Nigerian Exchange Limited (NGX) on Monday, 28 October 2024, while the newly reconstructed issued share capital of 10,161,997,574 ordinary shares of 50 Kobo each were also today, listed on the Daily Official List of NGX at N44.2 per share.

“The delisting of 40,647,990,293 ordinary shares and listing of 10,161,997,574 ordinary shares on NGX is pursuant to the approval received from the Company’s shareholders at its Annual General Meeting of 27 May 2024 and the no-objection received from the Securities and Exchange Commission.

“Consequently, following the completion of the share reconstruction, the suspension placed on the securities of the Company has been lifted.”

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Nigerian Exchange Limited

Transcorp Gains 314.03% Last Week Despite NGX Closing the Red

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Transnational Corporation Plc (Transcorp), Nigeria’s largest listed conglomerate, gained N34.70 or 313.03% a share last week to close at N45.75 a unit after the company’s unaudited financial statement for the third quarter showed 352% year-on-year growth in profit before tax to N34.566 billion.

During the week, investors on the floor of the Nigerian Exchange Limited (NGX) transacted 2.717 billion shares worth N54.632 billion in 46,848 deals, against a total of 2.142 billion shares valued at N85.946 billion that exchanged hands in 41,217 deals in the previous week.

The Financial Services Industry led the activity chart with a combined 1.821 billion shares valued at N28.958 billion traded in 20,173 deals, therefore, contributing 67.01% and 53.01% to the total equity turnover volume and value, respectively.

The ICT Industry followed with 389.848 million shares worth N6.560 billion in 2,515 deals. In third place was the Conglomerates Industry with a turnover of 160.993 million shares worth N4.746 billion in 3,623 deals.

Fidelity Bank Plc, Chams Holding Company Plc and United Bank for Africa Plc accounted for 1.225 billion shares worth N17.721 billion in 4,912 deals and contributed 45.10% and 32.44% to the total equity turnover volume and value, respectively.

The NGX All-Share index closed the week in the red at 97,432.02 index points, a 2.03% decline from 99,448.91 index points recorded in the previous week. The Exchange year-to-date return moderated to 30.30%.

Also, the market capitalization of listed equities dipped by the same 2.03% from N60.261 trillion to N59.039 trillion.

Similarly, all other indices finished lower with the exception of NGX Banking, NGX AFR Bank Value, NGX AFR Div Yield, NGX MERI Growth, NGX MERI Value, NGX Oil & Gas and NGX Growth which appreciated by 0.19%, 1.76%, 1.52%, 0.16%, 0.48%, 1.15%, and 0.07% respectively while the NGX ASeM index closed flat.

Thirty-nine equities appreciated in price during the week lower than fifty-eight equities in the previous week. Forty-five equities depreciated in price higher than eighteen in the previous week, while sixty-eight equities remained unchanged, lower than seventy-six recorded in the previous week.

 

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Nigerian Exchange Limited

Naira Depreciation and High Interest Rates Force Market Slowdown, Experts Say

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Stockbrokers and investors have abandoned the equity market due to the Naira volatility, lack of market drive towards the end of the year,  and the high interest rate in Nigeria.

A long-time investor, David Adonri explained that the volume of trade usually drops towards the end of the year but the market normalises in January.

With the persistent drop in the value of the Nigerian Naira against foreign currencies, investors are wary of unfavourable currency conversion.

“The equity market reacts to so many things. The depreciation of the naira, which is around N1,700, of course, would impact the market. The foreign exchange position can make people exit the market and convert to hard currency, which is stronger, possibly to come back to the market when they see an improved currency level. That is what we call carry-over trade,” Adonri said.

“We also have the hike in the interest rate, which also causes financial assets to migrate away from the capital market,” Adonri added.

“Third, we are in the period of the year, where seasonally, the market is a little bit down because there is nothing specific to drive the market like full-year results or half-year dividends and so on. So we slide to a low tempo from September up to November until after Christmas the market starts trending up again,” he further stated.

According to a report by the Nigerian Exchange Group (NGX), equity investment transactions dropped in Q3, 2024 compared to the previous quarter of the year.

In the same vein, the National Bureau of Statistics (NBS) reported that capital importation showed that investors shifted from equity investment to portfolio investment.

The portfolio investment includes equity, bonds, and money market instruments.

With the recent shift, the portfolio investment made a 10.37 percent increase amounting to a $106.85 million gain from the N1.03 billion total capital inflow.

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