Amid sector rotation and portfolio rebalancing activities by investors, trading activities on the Nigerian Exchange rebounded in the week ended November 15, 2024, from the previous week’s decline as the All-Share Index rose by 0.50 percent to close at 97,722.28 points.
The positive performance has been attributed to reflection optimism from Q3 earnings releases and the undervalued nature of many stocks with strong upside potential.
Market participants also digested the October inflation numbers, considering their implications for the broader market.
As the ASI performed positively, the market capitalisation followed suit, increasing by 0.50 percent to settle at N59.22 trillion, and further adding N295 billion in gains to investors’ portfolios.
Year-to-date, however, the ASI still delivered a 30.69 percent return while the broader market saw more decliners than gainers, with 45 stocks losing value compared to 39 gainers.
This reflects the broader sentiment of caution among investors in light of economic uncertainties.
On the other hand, the level of market activities during the week was lackluster in the face of low traded volumes and value, revealing the absence of smart money in the market.
Thus, the total traded volume and value for the week decreased by 77.1 percent week on week and 48.7 percent week on week respectively to 1.48 billion units valued at N38.88 billion. These deals were executed in 44,795 trades which also tanked by 8.2 percent week on week.
Across the sectoral front, performance was largely positive as three out of the five sectors under purview moved in the northward direction reflecting strong investors’ sentiment across the sectors.
Consequently, the NGX-Insurance, NGX-Banking and NGX-Consumer Goods indices were the toast of investors this week with gains of 2.84 percent, 2.32 percent and 0.60 percent due to buying interest in stocks such as FLOUR MILLS, UBA, MANSARD, GTCO, CORNERSTONE, and CHAMPION respectively.
On the contrary, the NGX-Oil & Gas and NGX-Industrial recorded marginal losses by 0.29 percent and 0.20 percent on the back of adverse price movements seen in tickers like OANDO, BUACEMENT and BERGER.
At the close of the week, stocks such as JOHNHOLT gained 61 percent, EUNISELL 46 percent, TANTALIZER 34 percent, SUNUASSUR 32 percent and FLOURMILL 23 percent were the best performing securities in the week.
However, DAARCOMM which declined by 12 percent, OANDO 10 percent, VFDGROUP 10 percent, ABBEYBDS 10 percent and ELLAHLAKES 7 percent emerged as the worst performing stocks this week due to adverse price movement.
MTN Nigeria raises N75bn via commercial papers
MTN Nigeria Communications Plc has announced the successful completion of its Series 11 & 12 Commercial Paper recording a 150 percent subscription amounting to N75.18 billion issued.
According to the communications giant the funds would be used to meet the company’s short-term working capital needs.
The fresh fund is part of an ongoing N250 billion Commercial Paper Issuance Programme, the Company Secretary, Uto Ukpanah, disclosed in a notice to the NGX on Friday.
The Statement reads, “MTN Nigeria Communications Plc (MTN Nigeria (the Company) hereby notifies Nigerian Exchange Limited and the investing public of the successful completion of its Series 11 & 12 Commercial Paper (CP) issuance under the Company’s N250 billion Commercial Paper Issuance Programme (the “Issuance”). We sought to raise N50 billion in the issuance, however, the offer recorded a 150% subscription with N75.18 billion issued.
“This represents a well-timed transaction for the Company, as interest rates are expected to rise further following the outcome of the auction as monetary policy authorities continue to address interest and exchange rate pressures.
“The success of the transaction is further demonstrated by the level of oversubscription despite the absence of pension funds following the recent suspension of their participation in a commercial paper by the National Pension Commission. The offer recorded participation from asset managers, banks, insurance companies and other qualified institutional investors.
“The proceeds of the issuance will be applied towards the Company’s short-term working capital requirements.”
Flour Mills Nigeria Plc secures shareholders’ approval to exit NGX
Flour Mills of Nigeria Plc on Thursday got its shareholders’ approval through a court ordered meeting to perfect the processes of delisting from the Nigerian Exchange Limited.
The company secretary, Joseph Umolu, in a notice to the NGX on Friday, disclosed that resolution on the scheme to delist the company’s shares and transfer them to Excelsior Shipping Company Limited and its wholly owned Nigerian subsidiary, Greywise Investment Solution Limited was approval at the Court ordered Meeting, held on Thursday, November 14, 2024.
According to the notice, shareholders also agreed to exchange their shares for N86 per share.
The notice reads; “Flour Mills of Nigeria Plc (the Company) wishes to notify Nigerian Exchange Limited, and its shareholders that below sub-joined resolutions were presented to the Shareholders for approval at the Court ordered Meeting of the Company which held on Thursday, 14th November, 2024 and were duly passed as a special resolution.
“That the Scheme of Arrangement as contained in the Scheme Document dated September 23, 2024 with or subject to such modification, addition agreed at the Meeting and/or approved or imposed by the Securities and Exchange Commission (“SEC”) and/or the Court, a print of which has been submitted at the Meeting and, for the purposes of identification, endorsed by the Chairman, be and is hereby approved.
“For the purpose of giving effect to the Scheme subject to such modification, addition and condition agreed between the Company and Holders of its Ordinary Shares and/or approved or imposed by the Court or any regulatory authorities, with effect from the Effective Date (as defined in the Scheme Document).
“The legal and beneficial ownership of the Scheme Shares (as defined in the Scheme Document) be transferred to Excelsior Shipping Company Limited and its wholly owned Nigerian subsidiary, Greywise Investment Solution Limited without further act or deed.
“The holders of the Scheme Shares be paid the Scheme Consideration (as defined in the Scheme Document) by Excelsior Shipping Company Limited for the transfer of the said Scheme Shares.
“That as consideration for the transfer of the Scheme Shares, each holder of the Scheme Shares shall receive N86 (Eighty Six Naira) per share for the shares transferred.
“That Nigerian Exchange Limited (“NGX”) and Central Securities Clearing System Plc (“CSCS”) shall be notified and required to terminate trading in the shares with effect from the Eligibility Date and no trading or transfer of the Company’s share shall be registered after that date;
“That conditional upon the Scheme becoming effective, the Company’s share shall be delisted from the NGX on the Eligibility Date and following that date, all the share certificates representing the interest of the Scheme Shareholders (as defined in the Scheme Document) shall be deemed to be dematerialized and in the case of dematerialised shares, all the shares of the Company that were lodged with the CSCS in the names of the Scheme Shareholders shall be transferred to Excelsior Shipping Company Limited and Greywise Investment Solutions Limited.
“That the Board of Directors of the Company be and are hereby authorised to take all necessary steps and to consent to any modifications of the Scheme of Arrangement that the Federal High Court or the Securities & Exchange Commission may deem fit to impose or approve, or that may otherwise be required; and
“That the Solicitors of the Company be directed to seek orders of the Court sanctioning the Scheme and the foregoing resolutions, as well as such incidental, consequential and supplemental orders as are necessary or required to give full effect to the Scheme.
“The above sub-joined resolutions presented at the meeting were passed as one special resolution by poll.”
