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Stock Market

High sell-offs from BUACEMENT, CADBURY, WAPCO, investors lose N198.05 billion

The Consumer Goods sector closed as the lone gainer at 0.18%, saved by OKOMUOIL and NB.

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Nigerian Stock Exchange, Nigerian Stocks, Daily market summary, NSE, Bourse bows to bears as ASI dip 0.55% on Friday, NSE: Bears dominant reign continues as ASI shed 4.91% on Tuesday, Bearish trend persists at Nigerian Stock Exchange, as investors lose N456 billion, Bears return, Nigeria’s local bourse drops 0.12%, Bears return Nigeria's ASI index down 3.12% Investors lose N370 billion, Bulls lift Nigerian bourse up 0.10%, as trading volume picks up,  BUACEMENT, CADBURY, WAPCO Bring the Bears to Party, Investors Lose N198.05 Billion

Trading activities on the floor of the Nigerian bourse closed on a bearish route to reverse all the previous day gain. 

The All-Share-Index plunged by 1.53% to close at 24,479.22 index point. Consequently, investors lost N198.05 billion as market capitalization declined to N12.952 trillion 

However, the market witnessed improved turnover as both volume and value traded rose significantly by 76.83% and 91.89% respectively. 

FBNH was the most traded stock by volume at 68.2 million units while NIGERIAN BREWERIES was the most traded stock by value at N805.42 million. 

Market sentiment, as measured by market breadth, was negative as 34 tickers declined, relative to 10 gainers. 

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CADBURY and BUACEMENT were the top losers of the day with -10.00% apiece decline, while NEMEITH and OKOMUOIL recorded the largest gains with +10.00% and +9.94% appreciation in share value. 

Sector performance mirrored the broad index as bearish sentiment characterized the sectors. We highlight sell-offs in BUACEMENT (-10.00%), WAPCO (-7.41%) and DANGCEM (-0.78%), which placed the industrial index as the worst performer, fell by 7.50%.  

READ MORE: Nigerian Breweries, MTN dominate as Nigerian stocks close lower

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The Banking index trailed to slump by 1.32%, as a result of a decline in UBN (-6.35%), GUARANTY(-1.34%) and FBN (-0.94%), the NSE Oil & Gas and Insurance indexes followed suit, shedding 0.43% and 0.04% respectively.  

The Consumer Goods sector closed as the lone gainer at 0.18%, saved by OKOMUOIL (+9.94%) and NB (+3.14%)  

Top gainers 

NEIMETH up 10.00% to close at N1.65, OKOMUOIL up  9.94% to close at N77.4, LAWUNION up 6.19% to close at N1.03, VITAFOAM up 5.47% to close at N5.59, NB up 3.14% to close at N5.59 

Top losers 

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BUACEMENT down 10.00% to close at N38.7, CADBURY down 10.00% to close at N6.75, BERGER down 9.40% to close at N6.75, WAPCO down7.41% to close at N10, DANGCEM down 0.78% to close at N127 

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Outlook  

Nigerian bourse finished on a negative note as bears regained grip on the local bourse following losses recorded by blue-chip firms. Nairametrics envisages cautious buying, as geopolitical uncertainty lingers.

 

Olumide Adesina is a France-born Nigerian. He is a Certified Investment Trader, with more than 15 years of working expertise in Investment Trading. Featured Financial Market Analysis for a Fortune Global 500 Company. Member of the Chartered Financial Analyst Society. Follow Olumide on Twitter @tokunboadesina or email [email protected]

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Stock Market

UBA, GTBank, Zenith Bank tumble, Bears take a grip on Nigerian Stocks

The market breadth index was negative with 25 losers against 13 gainers.

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Nigerian bourse closed negative on Thursday. The All Share index declined further by -0.25% to close at 34,968.94 from 35,056.82 points.

  • Year-to-date and market capitalization similarly dropped by -0.25% to settle at 30.40% and N18.27 trillion respectively.
  • A total volume of 289.3 million units of shares, valued at N7.34billion exchanged hands in 4,878 deals. UBA was the most traded shares by volume at 34.4 million units, while MTNN topped by value at N4.37billion.
  • The market breadth index was negative with 25 losers against 13 gainers. CADBURY (-5.43%) led the laggards today, while ARDOVA (+7.69%) was the top gainer.
  • The sectorial performance was mixed as the Banking, Insurance, and Consumer Goods indexes dipped -2.07%, -0.82%, and -0.20%, while the Oil & Gas gained +0.35%. The Industrial sector closed flat.

Top Gainers

  1. MTNN up 0.77% to close at N156.2
  2. ARDOVA up 7.69% to close at N14
  3. REDSTAREX up 4.00% to close at N3.38
  4. CUTIX up 5.56% to close at N1.9
  5. UPL up 4.26% to close at N1.47

Top Losers

  1. CADBURY down 5.43% to close at N8.7
  2. UBA down 5.20% to close at N8.2
  3. ZENITHBANK down 1.88% to close at N23.55
  4. FLOURMILL down 1.85% to close at N26.5
  5. GUARANTY down 1.47% to close at N33.6

Outlook

Nigerian stocks drifted lower at the fourth trading session of the week, as significant sell-offs seen in Nigerian tier -1 banks added pressure on the Nigerian All-Share Index.

  • Stock experts anticipate more consolidation now as investors become more choosy on stocks to buy taking into consideration that experts don’t see any new highs now till next year.
  • That said, Nairametrics envisages cautious buying on the bias that stock traders are expected to be a bit cautious amid recent macros prevailing at the Nigerian currency market.

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Stock Market

Camey & Rock executes N4.3 billion worth of share purchase agreement with Resort Savings and Loans

Camey & Rock Business Consulting executes a share purchase agreement with Resort Savings and Loans Plc, worth N4.3 billion.

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Rock savings raises N4.3 billion, as Camey and Rock acquire majority shares  

Camey & Rock Business Consulting Limited has finally executed its share purchase agreement with the board of Resort Savings and Loans Plc, worth N4.3 billion.

This is according to a notification sent by the latter to the Nigerian Stock Exchange market yesterday and seen by Nairametrics.

The cash involved in the deal is scheduled to be injected in tranches. Also, activities related to the transactions are still ongoing.

In order to resolve some administrative and basic regulatory issues, Camey & Rock called for an extension from CBN to enable it conclude the recapitalization exercise of the bank outside the deadline of 31 December 2020 to 30 June 2021.

The call comes at a time when the investors plan to inject the next tranche of cash into the bank.

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The notification also revealed that the investors (Camey & Rock) have so far, assisted in motivating staff resolution and arrangement of some critical financial obligations, towards the filing of outstanding financial statements and relocation of the bank’s head office to 12, Boyle Street, Lagos.

What they are saying: A part of the recent disclosure reads: “The Board of Resort Savings and Loans Plc (the bank) wishes to notify the Nigerian Stock Exchange and investing public on the updates on the Bank’s recapitalization exercise.

“The Bank has executed a Share Purchase Agreement with Camey & Rock Business Consulting Limited (Camey & Rock or the investor) to the tune of N4.3billion, following Camey & Rock’s strategic equity investment in the Bank. The cash will be injected into the Bank in tranches.”

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Why it matters: The recent announcement will help recapitalize the bank. In addition, the board and management firmly believe that the strategic investment will change the face of the bank, repositioning it in the committee of financial services providers in Nigeria, and grow its capacity with consequent effect in increasing the wealth of stakeholders.

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Companies

ABC Transport to raise N1.4 billion through rights issue

ABC Transport Plc has secured the approval of its shareholders to raise additional capital through a rights issue.

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The Board of Directors of ABC Transport Plc has secured the approval of its shareholders to raise additional capital through a rights issue from existing shareholders.

This disclosure was made by the board of ABC Transport in a notification issued by the Company’s Secretary, Onyekachukwu C. Chigbo, after announcing shareholders’ resolutions at its 27th Annual General Meeting (AGM), held on Friday 27th November 2020.

READ: Prestige Assurance could be a good opportunity if it gets its recapitalization right

According to the information contained in the notification, the rights issue is N1.4billion, which could be raised via the issuance of shares and debt securities as determined by the Directors of the firm.

However, the rights issue is subject to the approval of regulatory authorities.

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READ: Another Fidelity Bank Non-Executive Director purchases 1 million shares worth N2.75million

What this means

A rights issue is an invitation to existing shareholders to purchase additional new shares in the company. This type of issue gives existing shareholders the “rights” to purchase new shares at a discount to the market price on a stated future date.

However, shareholders are not obligated to exercise this right.

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In this regard, the company may decide to use the additional capital raised from these offerings to existing shareholders to acquire assets, make a take-over, repay debts or save itself from bankruptcy.

This is expected to strengthen the company’s balance sheet, free up capital for the management to execute revenue, and profit optimizing projects, plans, and strategies.

READ: International Breweries Plc raises N165 billion, Rights Issue fully subscribed

What you should know

  • It is important to know that the board decided to raise additional capital after it had secured shareholders’ approval to increase the company’s authorized share capital from N1billion to N2.5billion by the creation of 3billion additional shares of 50 kobo each, ranking pari-passu in all respects with the existing shares in the Company’s equity.
  • In this regard, clause 6 of the Company’s Memorandum of Association and clause 5 of the Articles of Association respectively, will be amended to reflect the increase in the Authorized Share Capital.
  • This amendment will be done by deleting the words, “the authorized Share Capital of the Company is N1billion divided into 2billion ordinary shares of 50 kobo each,” and substituting therewith the words “the authorized Share Capital of the Company is N2.5billion divided into 5billion ordinary shares of 50 kobo each.”

READ: Federal High Court directs meeting to consider the transfer of GTBank into a Holding Company

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