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Stock Market

MTN Nigeria, Ecobank, Dangote tumble, Bears take a grip on Nigerian Stocks

The market was mostly bearish on profit-taking from retail investors, notably on ZENITHBK (-1.73%) and MTNN (-1.29%).

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Nigerian Breweries brings the Bears to party, Investors down N20.5 billion 

Nigerian bourse ended the week on a negative note with the benchmark index dipping by 1.46% to 34,136.82 points.

The market was mostly bearish on profit-taking from retail investors, notably on ZENITHBK (-1.73%) and MTNN (-1.29%). Consequently, year-to-date return and market capitalization settled at 27.60%, and N17.83 trillion, respectively.

A total volume of 344.9million units of shares, valued at N4.22billion exchanged hands in 6,565 deals. ZENITHBANK was the most traded shares by volume and value at 44.3million units and N1.13billion.

  • Market sentiment was negative as market breadth came in at 2.4x as there were 34 decliners and 14 advancers.
  • The sectorial performance was bearish as Industrial, Banking, Consumer Goods, Oil & Gas were down by 2.41%, 2.16%, 0.66%, and 0.31%, while the Insurance closed as the lone gainer, up by +1.59%.

Sector performance

  • NSE Industrial Index: Down by -2.41% due to the price decline in BUACEMENT (-4.55%) and WAPCO (-2.39%).
  • NSE Banking Index: Dipped by -2.16%, on sell-offs in ETI (-8.63%), FBNH (-5.23%), FIDELITY (-3.40%) and ZENITHBANK (-1.73%).
  • NSE Consumer Goods Index: Fell by -0.6%, due to sustained losses in GLAXOSMITHKLINE (-5.41%), DANGSUGAR (-3.30%), and UNILEVER (-3.45%).
  • NSE Oil & Gas Index: Shed -0.21%, as JAPAULOIL (-6.90%) and OANDO (-2.73%) declined in price.
  • NSE Insurance Index: Up by +1.53%, on price appreciation in LINKASSURE (+10.00%), NEM (+9.79%), and AIICO (+9.78%).

Top gainers

GTBank 728 x 90
  1. IKEJAHOTEL up 10.00% to close at N1.1
  2. AIICO up 9.78% to close at N1.01
  3. NEM up 9.79% to close at N2.58
  4. UPDCREIT up 9.21% to close at N4.15
  5. NAHCO up 5.50% to close at N2.3

Top Losers

  1. ETI down 8.63% to close at N6.35
  2. BUACEMENT down 4.55% to close at N53.45
  3. DANGSUGAR down 3.30% to close at N20.5
  4. MTNN  down 1.29% to close at N153
  5. DANGCEM down 0.92% to close at N193.2

Outlook

Nigerian Stocks dropped lower amid falling crude oil prices across the market spectrum.

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  • Nigerian Equities have been hit by relatively weak earning seen from Nigerian banks coupled with worsened fears that the COVID-19 outbreak hitting hard in Europe, one of Nigeria’s main trading partners.
  • Nairametrics envisage cautious buying, amid a significant amount of profit-taking seen across the market spectrum.

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

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.

GTBank 728 x 90

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.

GTBank 728 x 90

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.

Deal book 300 x 250
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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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Stock Market

GTBank, Nigerian Breweries, CAP drop, investors lose N42 billion

The market breadth closed negative as AIICO led 19 Gainers as against 22 Losers topped by NNFM at the end of today’s session.

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Nigerian Breweries brings the Bears to party, Investors down N20.5 billion 

Nigerian bourse ended Wednesday’s trading session on a bearish note.

The All Share Index dipped lower by 0.26% to close at 35,056.82 points as against the 0.30% gain recorded yesterday. Its Year-to-Date (YTD) returns currently stands at +30.60%.

READ: CUTIX Plc announces appointment of non-executive directors

  • Nigerian Stock Exchange market capitalization now stands at N18.323 trillion. Investors lost N42 billion in the mid-week trading session.
  • Nigerian trading turnover at Wednesday’s trading session, however, printed positive as volume ticked by 19.72%, as against the 25.83% drop recorded on Tuesday.
  • ACCESS, FBNH, and ZENITHBANK were the most active to boost market turnover.
  • The market breadth closed negative as AIICO led 19 Gainers as against 22 Losers topped by NNFM at the end of today’s session – an unimproved performance when compared with the previous outlook.
  • CAP leads the list of active stocks that recorded an impressive volume spike at the end of today’s session.

READ: Cryptos: Nigerian financial experts talk risks associated with trading digital assets

Top gainers

GTBank 728 x 90
  1. AIICO up 9.90% to close at N1.11
  2. CUTIX up 7.14% to close at N1.8
  3. UBA up 5.49% to close at N8.65
  4. STANBIC up 3.90% to close at N44
  5. MAYBAKER up 2.94% to close at N3.5

READ: Nigeria’s inflation rate jumps to 14.23% in October 2020

Top losers

  1. NNFM down 9.67% to close at N6.26
  2. NB down 7.05% to close at N56
  3. CAP down 6.98% to close at N20
  4. GUARANTY down 2.57% to close at N34.1
  5. FLOURMILL down 2.17% to close at N27

READ: Ethereum yearly gains up by 279%, nears $600

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Outlook
Nigerian Stocks ended the third trading session for the week on a bearish note.

  • Selling pressure was significantly seen in blue-chip stocks like GTBank, Nigerian Breweries, CAP, Flour mills, as investors began a significant amount of profit-taking across the market spectrum.
  • Nairametrics envisages cautious buying, as institutional investors reduce some of their long positions amid growing uncertainty playing out in Nigeria’s currency market.

Explore Data on the Nairametrics Research Website

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