By : Afuwape Gbolabo
The sale of a stake in its cement business to foreign investors Dangote Cement, in a one-off stock market deal valued at N27billion as well as the Sovereign Trust Insurance company trading a part of its stake in 1.575 billion shares valued at N1.726 billion exchanging hands in 6 deals were the highpoints that made Nigeria Equities Market witness a unique week ended 17 November, 2017.
The bourse had a turbulent week as investors and traders despite the early submission of the 2018 Appropriation bill to the Joint session of the National Assembly the previous week, as well as the decline in the inflation level as released the National Bureau of Statistics (NBS) in the week, showed increased skepticism which saw the market lose 416.7 points and N73 billion to have the All Share Index close at 36,703.58 points and the Market Capitalization close at N12.774 trillion for the week.
The bourse’s main indexes closed mixed with Total deals declining by 7.18 percent, Aggregate volume turnover growing considerably by 113.07 percent while the Aggregate Value turnover also advanced considerably by 297.39 percent.
The bourse’s succumb to selling pressure, hence the huge loss in the week could be traced to the recent downgrade of the Nigerian sovereign and its financial institutions as a result of the increased total debt of the Federal Government, even as the nation’s upper legislative chamber, the Senate, during the week, approved plans for a new $5.5bn borrowing to reduce the high quantum of local debt.
Another trigger could be the skepticism in government’s budget implementation pattern as well as high volatility of oil price on the global market, which is a commodity that is a key determinant of Nigeria’s revenue at a time when its non-oil revenue lingers to underperform, made worse by the risk exposure of the banks to Eurobond and high Non-Performing-Loans.
Investors and traders largely picked up profits on various stocks in the thereby inspiring the market breadth to close ill as the stocks that declined in price outnumbered the stocks that advanced in price in the week.
Stocks with low capitalization dominated the price gainers list with A.G. Leventis recording the most percentage growth at 27.27 percent. That of Forte was next with 10.25 percent growth. Conversely, that of Caverton led the percentage price losers chat with 21.43 percent loss. It was followed by Linkage Assurance with 17.65 percent loss.
Traders and Investors picked up profits on bluechip stocks like Nigerian Breweries which recorded the most value turnover amounting to 23.19 percent of the bourse’s Aggregate value turnover for the week. Others like Nestle Nigeria which lost N38.97 equating to 3.02 percent decline to close at N1, 251.03, Guinness Nigeria which lost N1.75 equating to 1.72 percent to close at N100.25, Zenith Bank which lost 88kobo equating to 3.52 percent to close at 24.12 among others to see the market relapse for the week.
The growth in the prices of the stocks of Forte Oil and BOC Gas helped the Oil and Gas Industry to be the only industry to advance in the week as the Industry’s index grew by 0.85 percent.
Of the 172 stocks on the floor of the Exchange, 128 stocks were traded in the week, out of which 20 stocks advanced in prices, 30 decline in price while 78 retained their prices and 44 stocks were left untraded.
The NSE All-Share Index and Market Capitalization depreciated by 1.12% and 0.57% to close the week at 36,703.58 and N12.774 trillion respectively.
Similarly, all other indices finished lower during the week with the exception of the NSE Oil/Gas Index that appreciated by 0.85%.
A total turnover of 2.804 bIllion shares worth N54.776 billion in 17,792 deals were traded this week by investors on the floor of the Exchange in contrast to a total of 1.316 billion shares valued at N13.784 billion that exchanged hands last week in 19,169 deals.
The Financial Services Industry (measured by volume) led the activity chart with2.352 billion shares valued at N8.995 billion traded in 9,364 deals; thus contributing 83.88% and 16.42% to the total equity turnover volume and value respectively.
The Consumer Goods Industry followed with 178.982 million shares worth N16.849 billion in 4,297 deals.
The third place was occupied by Industrial Goods Industry with a turnover of 140.570 million shares worth N27.848 billion in 794 deals.
Trading in the Top Three Equities namely – Sovereign Trust Insurance Plc, FBN Holdings Plc and Dangote Cement Plc (measured by volume) accounted for 1.917 billion shares worth N29.875 billion in 2,130 deals, contributing 68.37% and 54.54% to the total equity turnover volume and value respectively
GAINERS AND LOSERS:
Twenty (20) equities appreciated in price during the week, lower than thirty (30) of the previous week. Forty-three (43) equities depreciated in price, higher than twenty-nine (29) equities of the previous week, while one hundred and eight (108) equities remained unchanged lower than one hundred and twelve (112) equities recorded in the preceding week.
DEALS, VOLUME AND VALUE:
The stocks of First bank of Nigeria Holdings, Zenith Bank and Guaranty Trust Bank recorded the most deals in the week. The stocks of Sovereign Insurance, First Bank of Nigeria Holding s and Zenith Bank recorded the most volume while those of Nigerian Breweries, Zenith Bank and Guinness recorded the most Value in the week.
A total of 5,950 units of Federal Government bonds valued at N6.247 million were traded in the week in 2 deals, compared with the total of 2,806 units valued at N2.623 million transacted last week in 16 deals.
There were no traded in Exchange Traded Products (ETPs) in the week compared with a total of 1,210 units valued at 13m467.70 transacted the previous week in 2 deals.
DISCLOSURES WITHIN THE WEEK
- The Nigerian Stock Exchange (NSE or Exchange) on Tuesday, upgraded its website. The Exchange did the upgrade to make the website mobile friendly with a cleaner layout and navigatio n befitting of the brand. The upgraded website will enable users to access infor mation quickly and easily on the various products and instruments that are listed and traded on the regulated market.
Commenting on the upgraded website, the CEO of the Exchange, Mr. Oscar N. Onyema, OON, noted that the upgrade is in line with the NSE’s drive to create more liquidity and improve p articipation in the market through greater access to market information and visibility for all securities listed on the Exchange. “Accessibility and usability are our watchwords in providing capital market information to existing and potential investors. We aim for an Exchange that is easily accessible and actively used by investors who now have greater thirst for more information and detailed disclosure information to make sound investment decisions.
“The explosion of online services and the rising popularity of the internet will continue to create new opportunities for the Exchange to utilize in its determination to constantly improve the level of services it provides to the market”, he added.
According to the Head, Corporate Communications, Olumide Orojimi, the NSE carried out this upgrade with the user experience firmly in mind. “We are excited about our newly upgraded website which has been fully optimized to be mobile friendly and contains robust information for diverse stakeholders in our ecosystem. The revamp was fuelled by feedback from users that wanted certain high demand pages easier to navigate and some key changes implemented. For example, using analytics from visits and usage of our website, we added filter functionality to the Corporate Disclosure page to enable users browse through results filed by listed companies easily. Our online visitors can now experience a more vibrant and seamless view of our offerings”.
The Acting Head of Technology, Tosin Beredugo remarked that users will experience improved page load performance with the website upgrade. He noted that with the upgrade, the NSE is laying a foundation for future technological enhancements which will enable the Exchange offer more services to its stakeholders.
- Following the approval of its shareholders, UAC of Nigeria Plc, on Wednesday 15 November, 2017 announced the commencement of sale of its right Issue.
In a statement signed by Godstime Iwenekhai, Head, Listings Regulation Department, the firm stated that “dealing Members are hereby notified that the Rights Issue of UAC of Nigeria Plc of 960,432,193 ordinary shares of 50 Kobo each at the offer price of N16 per share on the basis of one (1) new ordinary shares for every two (2) ordinary shares held as at 19 October 2017 will be opened for subscription from Wednesday, 15 November 2017 when the acceptance list opens till Friday 22, December, 2017 when the acceptance list closes.
Recall that the firm had on Thursday October 19, 2017, announced the submission of its application to The Nigerian Stock Exchange (NSE) for the approval and listing of a Rights Issue of 960,432,193 Ordinary Shares of 50 Kobo each at N16.00 per share on the basis of 1 new ordinary share for every 2 ordinary shares held, through its Stockbrokers; Stanbic IBTC Stockbrokers Limited and Afrinvest Securities Limited.
Nigeria’s oldest surviving business, UACN started business in Nigeria in 1879, well ahead of the 1914 amalgamation that created the current Nigerian nation. The UACN Group consists of several active companies spreading through manufacturing, services, logistics and real estate sectors of the Nigerian economy. These include four quoted subsidiaries-CAP Plc, UACN Property Development Company (UPDC) Plc, Livestock Feeds and Portland Paints and Products Nigeria Plc; in addition to the parent company, UACN. UPDC Real Estate Investment Trust, which is also quoted on the NSE, is a subsidiary of UPDC.
UACN acquired Livestock Feeds and Portland Paints in 2013. Other members of the group included UAC Foods Limited, UAC Restaurants Limited, MDS Logistics Plc, Warm Spring Waters Nigeria Limited, Grand Cereals Limited, and Unico CPFA Limited. Listed in 1974, UACN is owned by some 190,000 shareholders.
- Med-View Airline Plc announced its commencement of flight operations to three French speaking countries of West African including Abidjan, Ivory Coast; Conakry, Guinea Bissau and Dakar, Senegal.
The new flight services add to six the countries in the West Coast which the airline flies to including Accra, Ghana; Monrovia, Liberia and Freetown, Sierra Leone flagged off last year.
Amidst the wide gaps in trade relations among ECOWAS countries owing largely to poor connectivity, Med-View Airline assures its inroad into more west coast countries would close the gaps and boost trade among West African neighbours.
Managing Director of the airline, Alhaji Muneer Bankole said the dream of the founding fathers of ECOWAS to integrate member-states and engender economic prosperities in the sub-region may continue to be a mirage without fast and efficient transport system.
Senegalese Ambassador to Dakar, Ambassador Abubakar Samba said trade relations between Nigeria and Senegal is very poor largely because of poor connectivity, assuring that the new service would boost inter-state relations between the two countries.
Representatives of other Ivory Coast and Guinea Bissau also lauded the airline for working towards actualizing the Yammassoukro Declaration (YD) of 1987 to bridge connectivity gap in the region.
President Allan Quattara of Côte d voire, who was represented by General Manager of the country’s Civil Aviation Authority, Mr. Sinaly Silue, noted that the services would reduce the difficulty citizens of the country face in flight connectivity.
- Beta Glass Plc announced the appointment of Ms. Seun Oni as an Independent Non-Executive Director.
The company in a statement signed by Bola Adebisi, Deputy Company Secretary, stated that Ms. Seun Oni who is a Senior Finance Executive, with over 25 years professional experience Spanning Assurance & Business Advisory and leading Financial strategies and processes in multinational organizations, has her appointment effective from September 21, 2017.
- Chellarams Plc announced that the reason behind the late filing of its half year financial statement for the period ended 30 September, 2017.
The firm in a statement signed by Mrs Ezinwanne Nnoruka, Group Company Secretary/Legal Adviser, stated that the late filing of the Unaudited Financial Statement for the period was occasioned by some unexpected exigencies which the Company encountered in the course of preparing the accounts.
“However, the Company has put in place adequate measures, policies and accurate reporting procedures to forestall future occurrence and express its commitment to ensure timely submission of its financial statements and other post listing disclosure obligations” the company added.
- Scoa Nigeria Plc issued a notification of change of date of annual General Meeting. In statement signed by Olanrewaju Obadina, Company Secretary/ Legal Adviser, the firm stated that “we hereby notify the General Public that the Annual General Meeting of the Company which was to hold on Thursday 16 1h November, 2017 has been rescheduled due to unavoidable circumstances leading to a breakdown in logistics.
The 49th Annual General Meeting is now re-scheduled to hold on Thursday 14th December, 2017 at 12noon at the Nicon Luxury Hotel, Plot 903 Tafawa Balewa Way, Area 11, Garki, Abuja.
The Company deeply regrets any inconveniences this postponement may cause its esteemed shareholders and other stakeholders.”
- The Nigerian Stock Exchange (NSE) announced that Trans Nationwide Express Plc listed 270,027,370 Ordinary Shares on 16 November 2017 listed on the Daily Official List of The Exchange.
The Exchange in a statement signed by Godstime Iwenekhai, Head, Listings Regulation Department stated that “the additional shares listed arose from Tranex’s Rights Issue of 270,027,370 ordinary shares of 50 kobo at N0.80 per share in the Ratio of 3:2 ordinary shares held as at 25 January 2017.
With this listing of 270,027,370 ordinary shares, the total issued and fully paid up shares of Trans Nationwide Express Plc has now increased from 198,819,762 to 468,847,132 ordinary shares.:”
- The Nigerian Stock Exchange (NSE) announced that Unilever Nigeria Plc listed 1,961,709,167 Ordinary Shares on 16 November 2017 listed on the Daily Official List of The Exchange.
The Exchange in a statement signed by Godstime Iwenekhai, Head, Listings Regulation Department stated that “The additional shares arose from Unilever’s Rights Issue of 1,961,709,167 ordinary shares of 50 kobo at N30.00 per share in the Ratio of 14:27 ordinary shares held as at 28 June 2017.
With this listing of 1,961,709,167 ordinary shares, the total issued and fully paid up shares of Unilever Nigeria Plc has now increased from 3,783,296,250 to 5,745,005,417 ordinary shares.