Nigerian Stock Exchange Sustains Growth
The Nigerian Stock Exchange extended its bullish run this week as investors’ confidence grew on the back of international flights resumption and forex sale by the Central Bank of Nigeria to the bureau de change operators across the nation.
Investors traded a total of 2.209 billion shares valued at N10.957 billion in 18,013 transactions during the week, more than the 1.072 billion shares worth N7.384 billion traded in 16,684 transactions in the previous week.
A sectoral analysis showed that for the first time in a long time, the construction/real estate sector led in terms of volume traded with 954.529 million shares valued at N681.392 million in 218 deals. Therefore, contributed 43.21 percent and 6.22 percent to the total equity turnover volume and value, respectively.
The financial services sector came second for the first time in recent months with 889.888 million shares worth N6.538 billion traded in 10,107 transactions.
The conglomerates sector came third with a turnover of 209.437 million shares worth N579.990 million in 677 deals.
The top three traded equities in terms of volume traded were UACN- Property Development Company Plc, Zenith Bank Plc and LASACO Assurance Plc, the accounted for 1.229 billion shares worth N3.243 billion in 2,148 deals, contributing 55.61 per cent and 29.60 per cent to the total equity turnover volume and value, respectively.
The market capitalisation of listed equities rose by N155 billion from N13.203 trillion in the previous week to N13.358 trillion. While the NSE All-Share Index gained 296.27 basis points or 1.17 percent from 25,309.37 bps last week to 25,605.64 bps.
The bourse total year-to-date decline moderated to -4.61 percent. Also, the quarter to date gains expanded to 4.60 percent while September profit stood at 1.10 percent.
Royal Exchange Plc, Cornerstone Insurance, Union Diagnostic and Clinical Services led the week with 26.92 percent, 17.86 percent and 12.50 percent gain, respectively.
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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