Stock Market
Is this why UBA Capital gained 9% today?
UBA Capital out of the blues topped gainers list with a 9% pop as investors continued with profit seeking. The stock that was N1.29 just under a month ago closed trading today at N1.73 gaining 34% within the period. Today’s gain was however more remarkable as the 9% gain was perhaps its biggest one day gain this month if not this year. The volume was also high topping the list of most traded stock with over 64million units exchanging hands today. So what exactly is going on? We have a thesis
Domino Effect
Recent results released by Zenith Bank and GTB has impressed the market providing a morale booster for equities. Most investors now believe things may not be as bad as previously thought. They also realise how undervalued some of these stocks currently are and so are taking positions in anticipation of another good result. Ironically, UBA Capital’s most recent results (9months) showed EPS dropped 34.8% to 28kobo.
Family effect
UBA Capital, Africa Prudential, UBA and Transcorp all have common majority ownership in Hiers Holdings and Tony Elumelu. The quartet of stocks have all been posting gains in the last one week as investors take position in anticipation of any major announcements. Africa Prudential for example announced results yesterday followed by dividend announcement today. This must have sweetened the taste buds of investors, creating an appetite for other sister stocks.
Dividend announcement
UBA Capital last year declared dividend of 25kobo per share. That amount at yesterdays price represents an indicative gross dividend yield of 15.8%!! That is an astonishing return by dividend standards. So if by any means it repeats the same dividend then the current price of N1.73 still represents a 10% Gross yield. Rumors circulating suggest the company may pay between 20 kobo and 25 kobo which probably is what is driving the share price higher.
Buy, sell or hold?
In terms of Fundamentals, UBA Capital doesn’t just cut it for this writer. However, the dividend proposition being rumored makes the stock difficult to resist. Any entry below N1.9 probably has a short term upside of 15% as we do not see this stock rising above N2.2 in the next one month.
Stock Market
CitiTrust Financial Services Limited invests N395.9 million in additional LivingTrust Mortgage shares
CitiTrust has invested an additional N395.9 million for the purchase of an additional 659.8 million units of Living Trust Mortgage Bank.
Stock Market
UBA, WAPCO, NEM drop amid profit-taking
Market sentiment, as measured by the market breadth, closed negative as 33 stocks lost, relative to 21 gainers.
Nigerian stocks ended the week on a bearish note as the All Share Index declined further by -0.24% today to close at 41,001.99 from 41,099.15 index points.
- Year-to-date and market capitalization similarly fell by -0.24% to settle at 1.82%, and N21.44 trillion respectively.
- A total volume of 591.4 million units of shares, valued at N5.07 billion exchanged hands in 5,767 deals. TRANSCORP (-1.72%) was the most traded shares by volume at 169.2 million units, while ZENITHBANK topped by value at N681 million.
- Market sentiment, as measured by the market breadth, closed negative as 33 stocks lost, relative to 21 gainers. LIVESTOCK (-10.00%) led the laggards today, while NCR (+9.86%) topped the gainers’ list.
- With losses recorded in all sectors, except for the consumer goods sector which advanced by +0.06%, the NSE banking, oil & gas, industrials, and insurance sectors fell by 0.17%, 0.29%, 0.50%, and 7.93%, respectively.
READ: Bargain hunters propel Nigerian stocks up, investors gain N50 billion
Top gainers
- NCR up 9.86% to close at N3.12
- CUTIX up 9.71% to close at N2.26
- CHAMPION up 9.55% to close at N1.95
- REDSTAREX up 3.03% to close at N3.4
- FLOURMILL up 1.27% to close at N32
READ: Race to recapitalization catapult Insurance stocks to best performing asset class in Nigeria
Top losers
- LIVESTOCK down 10.00% to close at N2.52
- MRS down 9.68% to close at N11.2
- NEM down 9.67% to close at N2.43
- WAPCO down 6.98% to close at N26
- UBA down 2.79% to close at N8.7
READ: Unilever Overseas Holdings acquires N352 million worth of shares of Nigerian subsidiary
Outlook
Nigerian stocks ended the last trading session on a bearish note amid profit-taking across the market spectrum.
- Downtrend was driven by price depreciation in large and medium capitalized stocks amongst which are; MRS Oil Nigeria, WAPCO, Lafarge, NEM, and UBA.
- That said, Nairametrics envisages cautious buying on the account that certain market indicators reveal investors are taking some of their gains across the market spectrum
Stock Market
Unilever Overseas Holdings acquires N352 million worth of shares of Nigerian subsidiary
Over 27 million shares of Unilever Nigeria Plc has been acquired by Unilever Overseas Holdings.
Unilever Overseas Holdings, the parent company of Unilever Nigeria Plc, has acquired over 27 million shares of its Nigerian Subsidiary, worth N352,036,698.
This is according to a “Notification of Share Dealing by an Insider” signed by the Company Secretary, Abidemi Ademola, and published on the NSE website.
It is important to note that the notification is compliant with The Exchange’s policy on insider dealing.
The statement revealed that the parent company increased stakes in its Nigerian subsidiary with the acquisition of 27,079,746 additional units of the company’s shares, in a single transaction, at an average share price of N13 per share.
This puts the total consideration for the shares purchased by Unilever Overseas Holdings on the 11th of January 2021 at N352,036,698.
Why this matters
- Dealings by insiders of listed companies are corporate actions to be disclosed by the management of the company, this is in compliance with NSE’s policy on insider dealing, as the disclosure is key in the effort to ensure transparency and reinforce the trust of the investing public.
- The purchase of the shares of Unilever Nigeria Plc further cements Unilever Overseas Holdings’ position as a substantial shareholder of the company.
What you should know
- It is important to note that as of 30th September 2020, Unilever Overseas directly owned 74.03% of the 5,745,005,417 issued and fully paid shares of Unilever Nigeria Plc.
- However, with the recent purchase, Uniliver Nigeria Plc is still compliant with the Free float requirement for the Main Board of the Nigerian Stock Exchange.
Ogus
March 13, 2015 at 1:23 pm
hold