The Nigerian Stock Exchange ended today’s trading on a negative note, continuing the bearish pattern from last week. The All Share Index closed at 30,3609.06 basis points, down 0.21%. Year to date, the index is down 19.96%
Top Gainers and Losers
Diamond Bank was the best performing stock today, appreciating 9.47% to close at ₦1.04. The uptick in price is largely due to news of its merger plans with Access Bank. Access Bank added 9.40%, to close at ₦8.15.
Cement Company of Northern Nigeria rounds the top 3 gainers for the day. The stock gained 9.24% to close at ₦17.15.
On the flip side, Forte Oil was the worst performing stock today. The stock shed 9.96% to close at ₦21.70. Ikeja Hotels was next with a 9.63% decline to close at ₦1.69. Wema Bank rounds up the top three losers for the day shedding 8.47% to close at ₦0.54.
Top Trades by Volume
Diamond Bank was the most actively traded stock today. 70.9 million shares valued at ₦72.6 million traded in 129 deals AXA Mansard was next with 20 million shares valued at ₦40 million traded in 8 deals. FBN Holdings rounds up the top three most actively traded stocks for the day with 16.5 million shares valued at ₦120 million traded in 175 deals.
Access and Diamond Bank confirm merger plans
Access Bank and Diamond Bank today confirmed merger talks between both banks.
The proposed merger would involve Access Bank acquiring the entire issued share capital of Diamond Bank in exchange for a combination of cash and shares in Access Bank via a Scheme of Merger.
Diamond Bank shareholders will receive a consideration of ₦3.13 per share, comprising of ₦1.00 per share in cash and the allotment of two (2) New Access Bank ordinary shares for every seven (7) Diamond Bank ordinary shares held as at the implementation date.
The offer represents a premium of 260% to the closing market price of ₦0.87 per share of Diamond Bank on the NSE as of December 13, 2018, the date of the final binding offer.
SAHCO extends IPO
Skyway Aviation Handling Company Plc has obtained the approval of the Securities and Exchange Commission (SEC) to extend the Offer period of its Initial Public Offering by way of an Offer for Sale of 406,074,000 ordinary shares of 50 kobo each at ₦4.65 per share by twelve (12) working days.
The Offer initially scheduled to close on Wednesday, 19 December 2018 will now close on Wednesday, 09 January 2019.
Union Bank, LINKASSURE push NGX ASI into recovery
The market breadth closed positive with the bulls as LINKASSURE led 25 Gainers, and 16 Losers topped by NEM.
Nigerian stock exchange market made a bullish recovery on the last day of the week’s trading session. This surge was bolstered by gains made by UBN and LINKASSURE amongst others. The All-Share Index increased by +0.21% to close at 39,198.75 from 39,114.73.
- Nigerian Stock Exchange market value currently stands at N20.48 trillion. Its Year-to-Date (YTD) returns currently stand at -2.66%.
- The market breadth closed positive with the bulls as LINKASSURE led 25 Gainers, and 16 Losers topped by NEM, showing a hint of consolation.
- LINKASSURE up +9.25% to close at N0.69
- JOHNHOLT up +9.26% to close at N59
- UBN up +9.09% to close at N5.40
- ROYALEX up +8.33% to close at N0.65
- CHIPLC up +8.33% to close at N0.39
- NEM down -9.50% to close at N1.81
- COURTVILLE down -9.09% to close at N0.20
- SUNUASSUR down -8.47% to close at N0.54
- INITSPLC down -6.98% to close at N0.40
- ETERNA down -6.89% to close at N5.81
The market recovered from a week-long loss as it posts profit at the end of the trading session.
- Market sentiments tend toward bullish momentum as the NGX ASI closes with 25 Gainers and 16 losers.
- Nairametrics however, advises cautious buying in this era of growing uncertainties.
SEC plans to monitor foreign stock brokers in Nigeria
SEC is proposing tighter and stricter regulatory oversight and requirements for foreign stockbrokers in the country.
In an attempt to reduce the demand for foreign stocks in Nigeria, the Securities and Exchange Commission (SEC) is proposing tighter and stricter regulatory oversight and requirements for foreign stockbrokers in the country.
In an interview monitored by Nairametrics, the executive commissioner for operations of the SEC, Dayo Obisan revealed the commission was planning to actively monitor the local facilitators of foreign stocks.
“At least 400,000 Nigerians have invested in foreign stocks through brokers in the past 18 months,” Obisan said, with Nigerians actively trading or holding foreign equities now exceeding those investing in the local market and about 70% of these participants being less than 40 years of age.
This is despite the Nigerian Stock Exchange being dubbed the best performing last year after it gained 50% YTD. Stocks are however down 5% YTD.
In contrast, the S&P 500 Index is currently trading 14.50% YTD, creating a new all-time high.
Also, the value of transactions is down YTD as demand shifts from the Nigerian stock exchange market to the Cryptocurrency and foreign stock market.
“There is an increasing interest among the younger population and this is of concern to the commission primarily because it creates an avenue for exploitation,” Obisan said.
The SEC intends to license firms offering foreign stocks under a “digital sub-broker” regulation, which Obisan says should provide a form of clarity to their activities.
He also stated the requirement will ensure “regulatory responsibilities in on-boarding clients, custody of assets, and compliance with reporting requirements are met”.
Nairametrics | Company Earnings
Access our Live Feed portal for the latest company earnings as they drop.
- Okomu Oil proposes dividend worth N6.7 billion for shareholders.
- Ardova Plc confirms appointment of Oladeinde Nelson-Cole as secretary.
- Cadbury Nigeria Plc set to hold 56th Annual General Meeting (AGM) on June 16.
- FCMB Group Plc appoints Muibat Ijaiya as Director.
- Afromedia Plc reports a loss after tax of N27.3 million in Q1 2021.