Share Prices Surged as Investors Jumped on MTNN, BUA, Others
Stock prices surged on Monday as investors jumped on MTN Nigeria, BUA Cement and other fundamentally strong stocks.
The market capitalisation of listed stocks increased by N121 billion to N13.171 trillion on Monday, up from N13.050 trillion it closed on Friday.
While the NSE All-Share Index expanded by 0.93 percent from 25,016.30 basis points on Friday to settle at 25,249.96 bps on Monday.
Total shares of 230.492 million valued at N2.166 billion were traded in 4,621 transactions during the trading hours of Monday.
In terms of the volume traded, the FBNH led with 34.502 million shares worth N188.347 million. Guaranty Trust Bank came second with 22,881,532 shares valued at N550,138,397.90.
Japaul Oil, UBA and Zenith Bank did 21,213,872, 19,537,839 and 19,273,434 shares worth N6,367,955.12, N131,951,463.00 and N327,058,856.85, respectively.
MTN Nigeria led the top gainers’ table with N2 gain to close at N118 per share on Monday.
BUA Cement came second with N1.5 to settle at N41.5 per share following the release of its positive unaudited financial statements on Monday. UACN, NB and VITAfoam added 50 kobo, 50 kobo and 29 kobo to close at N8.25, N42.5 and N5.4 per share, respectively.
Dangote Sugar led the top losers’ table with 40 kobo loss to close at N14.55 per share. This was followed by Guinness’s 30 kobo, Eterna 12 kobo, Cornerst 5 kobo and Custodian 5 kobo.
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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