Stock Market
NSE announces the migration of four companies to the NSE Growth Board
The NSE has announced the migration of four qualified companies from the ASeM to the NSE Growth Board.
The Nigerian Stock Exchange has announced the migration of four qualified companies from the Alternative Securities Market (ASeM) to the NSE Growth Board.
According to the tweet via the official Twitter handle of the Nigerian Stock Exchange, the companies migrated after being carefully reviewed in line with the listing requirements of the Growth Board and have demonstrated adherence to high corporate governance standards.
As a way of confirmation, the migration was commemorated with a virtual closing gong, spearheaded by the chairmen of the concerned companies.
What you should know
- The four firms that migrated are: Chellarams Plc, Living Trust Mortgage Plc, McNichols Plc, and The Initiates Plc.
- The migration was officially announced by the Nigerian Stock Exchange market today.
What they are saying
Commenting on the recent development, the Chairman of the Nigerian Stock Exchange, Mr. Oscar Onyema said:
“I am pleased to welcome you all to this migration ceremony. Today’s event has been designed to recognize 4 companies that have satisfied the requirements for migration from the Alternative Securities Market (ASeM) to the #NSEGrowthBoard.
“Upon careful evaluation of applications received from eligible ASeM companies, the National Council & Management of NSE approved the migration of Chellarams Plc, Living Trust Mortgage Plc, McNichols Plc and The Initiates Plc.
“The #NSEGrowthBoard also provides visibility for listed growth companies, with the creation of a Growth Board Index and the inclusion to the NSE All Share Index.
“I applaud the boards and management of these 4 companies on their successful migration and I urge you not to relent in your efforts to sustain the high level of corporate governance that has brought you thus far.
“I must also thank our strategic business partners & value-added service providers for their commitment to deepening the capital market. Our partnership affords listed companies a competitive edge, while stimulating investors’ interest.
“We believe that the inclusion of these companies on the All Share Index and the Growth Board Index of the NSE will provide increased visibility that will attract global investors.”
What this means
The migration to the NSEGrowthBoard provides visibility for listed growth companies, with the creation of a Growth Board Index and the inclusion to the NSE All Share Index
In addition, the firm will also have access to a suite of value-added services that will provide a competitive edge beyond access to capital.
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United Capital Plc CEO purchases additional 1.3 million shares worth N7.19 million
United Capital Plc CEO has purchased an additional 1.3 million units of the firm’s shares worth N7.19 million.
Spotlight Stories
Airtel, WAPCO, MRS rally up, investors gain N46 billion
The All Share Index gained 0.21% to close at 41,088.96 index points. Year to date return and market capitalization settled at 2.03%, and N21.49 trillion respectively
Nigerian Stocks ended the first trading session on a bullish note.
The All Share Index gained 0.21% to close at 41,088.96 index points. Year-to-date return and market capitalization settled at 2.03%, and N21.49 trillion respectively. Investors gain N45.49 billion.
- A total volume of 333 million units of shares, valued at N2.64billion exchanged hands in 5,640 deals. TRANSCORP (-5.26%) finished the most traded shares by volume at 48.9million, while ZENITHBANK (0.00%) topped by value at N418 million.
- Market breadth was however inverse of the broad index with 30 losers against 19 gainers. MRS (+9.82%) led the gainer’s chart today, while CILEASING (-10.00%) was the top loser.
- Performance across sectors was mixed; like Oil & Gas (-0.80%), Consumer Goods (-0.72%) and Insurance (-0.58%) closed in red, while the Industrial and Banking indexes improved by +0.54 and 0.49% respectively.
Top gainers
- MRS up 9.82% to close at N12.3
- JBERGER up 3.17% to close at N19.5
- WAPCO up 1.92% to close at N26.5
- DANGCEM up 0.85% to close at N236
- AIRTELAFRI up 0.38% to close at N855
Top losers
- CILEASING down 10.00% to close at N5.13
- ARDOVA down 9.78% to close at N18.45
- INTBREW down 6.53% to close at N6.16
- NASCON down 5.81% to close at N16.2
- UNILEVER down 2.22% to close at N13.2
Outlook
Nigerian Bourse recorded an impressive winning streak this week as some NSE30 stocks including, AIRTELAFRI, DANGCEM, WAPCO triggered the upward run on Monday’s trading session.
- The Nigerian Stock market advance to close in positive territory as buying interest was seen on stocks across the board.
- Nairametrics however, envisages cautious buying, amid improved market conditions in Nigeria’s financial market.
Spotlight Stories
Champion Breweries shares increase by a whopping 58% in six trading sessions
Champion Breweries stocks are up by more than 58% in just six trading sessions amid expectations of MTO and by Heineken.
Champion Breweries stocks are up by more than 58% in just six trading sessions as buying interests by investors continue to prop the shares of the company upon the expectation of a mandatory takeover by Heineken.
Findings by Nairametrics at the close of trading today, 25th of January 2021, revealed that the share price of Champion Breweries has increased from N1.35 to N2.14 in just six trading sessions on the NSE.
This indicates that the shares of Champion Breweries Plc increased by 58.52% between the close of trade on Friday 15th of January, and Monday 25th January 2021.
It is essential to understand that buyers dominated trading activities on the company’s shares on the floor of the Nigerian Stock Exchange as the market price of the company’s shares went up by 9.74%, less than 20 minutes after the NSE opened, as buying pressure by investors continue to push the shares of the company higher.
The drive behind the increase in Champion Breweries shares
Investors’ buying interests in Champion Breweries Plc shares, was said to have been triggered by the expectation of a mandatory takeover by Heineken through its Special Purpose Entity, Raysun Nigeria Limited, which investors believe would birth a potential merger with the largest Brewer in the country, Nigerian Breweries Plc.
Recall that Nairametrics reported that, Raysun Nigeria Limited, a Special Purpose Entity (SPE) wholly-owned by Heineken Brouwerijen B.V., acquired 1,903,609,538 additional shares of the brewery company, worth N4.95 billion on 7 January 2021, at a price of N2.60 per share.
The acquisition took Heineken’s total stake in Champion Breweries to 6,633,043,538 or 84.72% (indirectly).
What you should know
- Since the news of Heineken’s indirect acquisition of additional shares in Champion Breweries through Raysun Nigeria Limited was disclosed on the 8th of January 2021, shares of the company have appreciated by 110%.
- The YTD gains of the shares of Champion Breweries on NSE, at the close of trading activities today currently stands at 148.84%.
