Stock Investors Gained N12 Billion Last Week
The Nigerian Stock Exchange managed to close in the green last week despite the series of negative economic reports released in August.
Investors exchanged a total of 950.414 million shares valued at N10.123 billion in 16,646 transactions last week, lower than the 1.327 billion shares worth N13.934 billion traded in 19,392 deals in the previous week.
The market capitalisation of listed equities expanded by 0.09 percent or N12 billion from N13.146 trillion it closed in the previous week to settle at N13.158 trillion.
While the NSE All-Share Index gained 0.09 percent or 22.03 basis points from 25,199.84 bps it closed in the previous week to settle at 25,221.87 bps.
The sectoral analysis showed the financial services sector led activity with 624.278 million shares worth N6.181 billion exchanged in 8,313 transactions. Therefore, the sector contributed 65.68 percent and 61.06 percent of the total equity turnover volume and value, respectively.
The consumer goods industry followed with 96.320 million shares valued at N2.199 billion but traded in 3,148 transactions. The conglomerates sector came third with a turnover of 89.376 million shares valued at N145.612 million shares in 757 deals.
In terms of volume traded, Zenith Bank Plc, Guaranty Trust Bank Plc and Transnational Corporation of Nigeria Plc led with a combined 298.901 million shares worth N4.761 billion in 3,056 deals. The three accounted for 31.45 percent and 47.03 percent of the total equity turnover volume and value, respectively.
The Exchange has gained 2.14 percent in August and 3.03 percent in the third quarter despite the high unemployment rate and escalating inflation rate. Indicating that local investors are still very much into one of the world’s most feared stock exchange. The bourse year-to-date return stood at -6.04 percent last week.
United Capital Lists N10Billion Senior Unsecured Fixed Rate Series I Bonds
United Capital N10Billion Senior Unsecured Fixed Rate Series I Bonds
United Capital Plc on Tuesday announced it has listed N10Billion 5 Year 12.5 per cent Senior Unsecured Fixed Rate Series I Bonds Due 2025 Under the N30,000,000,000 Debt Issuance Programme.
In a statement released through the Nigerian Stock Exchange, the company said “United Capital Plc – Listing of United Capital Plc’s N10Billion 5 Year 12.5% Senior Unsecured Fixed Rate Series I Bonds Due 2025 Under the N30,000,000,000 Debt Issuance Programme.”
“Dealing Members are hereby notified that United Capital Plc’s N10Billion 5 Year 12.5% Senior Unsecured Fixed Rate Series I Bonds Due 2025 under the N30,000,000,000 Debt Issuance Programme were today Tuesday, 22 September 2020 listed on Daily Official List of The Nigerian Stock Exchange.”
Nestlé S.A. Up Stake in Nestle Nigeria Plc to 66.3%
Nestlé S.A. Switzerland Increased Stake in Nestle Nigeria Plc to 66.3%
Despite growing economic uncertainties amid a decline in economic productivity, Nestlé S.A, Switzerland, the parent company of Nestlé Nigeria Plc, has continued to up its ownership percentage in Nestle Nigeria.
Nestlé S.A, Switzerland now owned 66.3 percent of the Nigerian subsidiary.
This was after the company purchased additional shares of 229,697 units in Nestle Nigeria to bring the company’s total purchase from August 20 to date to 977,744 units.
Nestlé S.A has now spent a total sum of N1.17 billion to buy shares in three transactions in its Nigerian subsidiary in 22 days.
A break down of the transactions revealed that the purchase consideration for the 229,697 additional units of Nestlé Nigeria shares at an average price of N1,249.65 per unit is put at N287 million.
Experts said Nigerian shareholders were willing to sell because of the ongoing economic hardships being witnessed in the country.
The National Coordinator, PSAN, Boniface Okezie, said, “It is expected for the foreigners to take the holdings since Nigerian shareholders are offering to sell and no domestic investor has the ability to purchase.
“I don’t see it as a mission to take over the company; I believe it is a morale booster to the Nigerian company. The regulators are watching and they will react if they are crossing the threshold.”
Nigerian Stock Exchange to Benefit From Low Valuations – Experts
Stock Market to Benefit From Low Valuations – Experts
Investment experts have said the Nigerian Stock Exchange would benefit from low stock valuations despite the present mixed performance following sell pressure in banking stocks.
The experts hinged their analysis on the usual investors’ search for undervalued yields with strong fundamentals.
The NSE market capitalisation expanded by N14 billion last week but the All Share Index declined by 0.08 percent 25,572.57 basis points, highlighting the mixed performance of the Exchange amid growing economic uncertainties.
The analysts at Cordros Capital, in the review of the week performance, said the bourse could see a positive performance in the long run over compelling valuations while advising investors to exercise cautions when buying given current uncertainties.
They stated: “In the absence of a positive catalyst, and given the still uninspiring macro story, we guide investors to trade cautiously in the short term.
“However, we expect the market might benefit over the longer term on compelling valuations and as investors seek alpha-yielding opportunities in the face of negative real returns in the fixed income market.”
Experts at Afrinvest Securities, another Lagos-based investment banking company, said the new week would see investors taking profit, a situation they said could weigh on the Exchange and plunge stock value.
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