NSE Demutualization

GTB Others Crash NSE Banking Index By 3.12%

by with No Comment Businessfinance

Zenith Bank, GTB, Access Bank Others Crash NSE Banking Index By 3.12%

The banking Index fell 3.12 percent Wednesday, ranking the biggest losing sector on the Nigerian Stock Exchange (NSE).

READ ALSO: Shoprite’s exit, like 10 others, signals more job crisis for Nigerians

The index which measures performance of the banking sector closed at 339.43 index point down from 350.36 index point of the previous day.

All of Guaranty Trust Bank (GTB), Zenith Bank, Access Bank, Fidelity Bank and Sterling Bank Plc.contributed to the poor performance of the banking index

A cursory look into the trading activities of these banks on Wednesday reveals that Sterling Bank Plc was the biggest decliner in terms of percentage, when the lender dropped 9.47 percent in the value of its share price. The share value declined from N1. 69 Kobo per share to close a N1. 53 Kobo per share.

Zenith Bank Plc followed in second place losing 4.11 percent, as its share price fell to N21 per share from N21.90 Kobo per share it posted the previous trading session.

Fidelity Bank Plc was also in the negative territory on the Bourse, dropping 3.47 percent, from N2.59  Kobo per share to N2.50 Kobo per share.

Guaranty Trust Bank was also among the losers on the NSE, as its share price shed 3.28 percent to stand at N28 per share down from N28. 95 Kobo per share, while

Access Bank Plc completed the top five losers, to dip by 2.47 percent. The value of its share stands at N7. 9 Kobo per share from N8. 10 Kobo per share.

Overall, the Nigerian Stock Exchange recorded a marginal growth on Wednesday as the All-Share Index and Market Capitalization rose by 0.02 percent.

The ASI appreciated by 7.42 index point to close at 38,774.03 basis point up from 38,766. 61 basis point, while the market capitalisation jumped by N3.878 billion to close at N20.286 trillion up from the N20.282  trillion it commenced trading with on Wednesday.

A total turnover of 356.461 million shares valued at N4.193 billion in 6,130 deals exchanged hands, while the market breadth was positive, with 27 advanced stocks and 12 laggards.

On the market activity chart, Zenith Bank returned as both the most active and valuable equity on the exchange, trading at 55.030 million worth of shares valued at N1.156 billion.

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NSE

Stock: Equity Market Rallies N109bn Rally

by with No Comment BusinessNews

The Nigerian Stock Exchange (NSE) Thursday sustained the bullish trend as trading rallied to a N109 billion gain

READ ALSO: Liquidity rises, external reserves grow but naira falls

The All-Share Index and Market Capitalization rose by 0.53 percent to close at 39,293.14 basis point and N20. 558 trillion, up from 39,085.78 basis point and N20. 449 trillion respectively.

The ASI and market capitalisation appreciated by 207.36 index point and N109 billion respectively.

The market turnover decreased by 36.6 percent, as investors bought and sold 229.417 million shares worth N3.780 billion in 4,016 deals as against the 361.903 million shares valued at N5.701 billion in 4,018 deals that exchanged hands on Wednesday.

The market breadth was positive with 23 stocks appreciating, while 12 declined.


The top gainers was led in percentage parameters by Coronation Insurance Plc, rising by 10 percent to close transaction at N0. 55 Kobo per share.

UPDC Real Estate Investment Plc appreciated by 9.80 percent to close at N5. 6 Kobo per share, while Pharma – Deko Plc climbed by 9.63 percent to close at N1. 48 Kobo per share.

Neimeth Pharmaceutical and GlaxoSmithKline surged by 9.55 and 9.45 per cent to close at N1. 95 Kobo and N6.95 per share respectively.

Conversely, Sovereign Trust Insurance led the losers’ chart, losing 8.33 percent to close at N0. 22 Kobo per share.

PF Micro Finance Bank shed 7.22 percent to close at N1.8 Kobo per share, while Prestige Assurance Plc declined by 6.82 percent to close at N0. 41 Kobo per share.

Japaul Gold and Dangote Sugar Refinery Plc fell by 4.44 and 2.67 percent to close at N0. 43 Kobo and N16. 4 Kobo per share respectively.

For the second consecutive trading sessions, Union Bank of Nigeria was the most active stock at 79. 566 million shares valued at N421.699 million.

While Communication giant, MTN Nigeria finished trading as the most valuable equity at N1.613 billion.

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56449-proshare

Demutualization of NSE: Innovative Products Key to Deepening Capital Market

by with No Comment Business

With the Demutualization of the Nigeria Stock Exchange (NSE) concluded, innovative products that appeal to millennials and attract retail investors will go a long way in deepening the capital market.

READ ALSO: FG Set To Give N30,000 Loan To 330,000 Artisans

Mr. Patrick Ezeagu the Chairman of the Association of Securities Dealing Houses of Nigeria (ASHON) made this point in a conversation on the “Post-Demutualization of NSE: Opportunities for the Capital Market”.

Ezeagu noted that the process for demutualization took over 7 years before actualization and commended all the stakeholders involved for their resilience.

He said Nigeria now joins the ranks of South Africa with demutualized exchanges and opens opportunities for the growth of a more integrated African capital market.

According to him demutualized exchanges especially in Africa, could collaborate and operate as a single hub to attract capital and investments.

Speaking further he said brokers have to be innovative and strategic in developing products that appeal to all classes of investors and can improve the capitalization of the exchange.

The Chairman of ASHON agreed that the “Demutualization of the NSE” will improve the market in areas like technology, human capital, and processes.

“The three subsidiaries formed as a result of the demutualization of the Exchange are the Nigerian Exchange Limited (NGX), NGX Regulation Limited (NGX REGCO), and NGX Real Estate Limited  (RELCO), would bring efficiency to the market and make the exchange focus on its core mandate,” he said.

He added that Africa needs a connected capital market that can compete globally with the dispensation of the AFCFTA (African Continental Free Trade Agreement).

Looking at the sub-region he pointed out that there has been an existing model of the West Africa Market Integration, WAMI which can be expanded to the entire continent.

The capital market trade group leader said with the demutualization of the Exchange it was possible to achieve a market capitalization of about $200bn by 2022.

He advised the Federal Government to leverage the capital market to raise funds, liberalize state assets and corporations to be profitable ventures.

The Nigerian Stock Exchange (Formerly Lagos Stock Exchange) was founded on 15 September 1960 and began operations on 25 August 1961.

In a bid to catch up with the needed efficiency to take its place as the leading Exchange on the African continent, members had agreed at an Extraordinary General Meeting in 2017 to demutualize the Exchange. A decision that became more pronounced as the demutualization bill became law in August 2018. Demutualizing the Exchange changed it from its earlier status as a non-profit organization limited by guarantee into a public company.

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NSE

Zenith Bank, GTB, Union Bank Lift NSE Banking Index By 2.09%

by with No Comment BusinessNews

Growth in the share price of Zenith Bank Plc, Guaranty Trust Bank (GTB) and Union Bank of Nigeria Plc lifted the banking index of the Nigerian Stock Exchange (NSE) by 2.09 percent during trading for the past week.

READ ALSO: Nigerians rise against $1.5bn Port Harcourt refinery repair bill

The Banking Index which measures the performance of Nigerian banks on the NSE closed at 361.13 index point on Friday, March 19th from the 353.75 index point it commenced trading with on Monday, March 15th, surging by 7.38 index point, representing 2.09 percent appreciation. The banking index, however, fell by 8.11 per cent Year- till – Date (YTD)

The Financial Services Industry which includes the banking sector (measured by volume) led the activity chart with 1.888 billion shares valued at N12.446 billion traded in 12,019 deals, while a total turnover of 2.342 billion shares worth N19.272 billion in 20,173 deals were traded this week by investors on the floor of the Exchange, in contrast to a total of 1.675 billion shares valued at N23.541 billion that exchanged hands last week in 21,732 deals.

The NSE All-Share Index and Market Capitalization depreciated by 0.69% to close the week at 38,382.39 and N20.082 trillion respectively.

Checks by InsideBusiness shows that Zenith Bank led the gainers in the banking sector during the week in review in terms of market capitalisation.

The tier-1 financial institution rose by 6.13 percent in value of its market capitalisation and share price, rising from N665.605 billion and N21.20 Kobo per share to N706.421 billion and N22.50 Kobo per share respectively.

The appreciation saw Zenith Bank gaining N40.815 billion and its outstanding shares remain at 31,396,493,786.

GTB followed with a N30.902 billion growth in the bank’s market share, climbing from N881.463 billion to N912.366 billion, representing 3.50 percent appreciation.

The Orange brand also recorded soared share price, moving from N29.95 Kobo per share to N31 per share.

Union Bank completed the biggest gainers’ table for the week when its share price and market capitalisation jumped by 4.95 percent, indicating a N7.280 billion surge.

The first generation bank saw its market capitalisation currently standing at N154.339 billion up from N147.059 billion, while the value of its share price rose from N5.05 Kobo per share to N5.30 Kobo per share.


Ecobank Transnational Corporation (ETI) dominated the losers for the week, losing N5.504 billion representing 5.8 percent to close at N94.500 billion in market capitalisation down from N88. 995 billion.


The share price which opened at N5.15 Kobo per share on Monday, March 15th fell to N4.85 Kobo per share on Friday Friday, March 19th.

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Nigerian Stocks

Guinness, other stocks drive NSE ASI high by 0.41%

by with No Comment Businessfinance

Nigeria’s stocks market defied earlier negative predictions to close in the green zone on Tuesday, March 16 as investors showed interest in Guinness Nigeria Plc and other value counters.

READ ALSO: Inflation rate quickens to 48-month high…

Market watchers had predicted earlier bearish performance to filter into Tuesday trading session due to lack of positive news capable of lifting investors’ sentiment.

The National Bureau of Statistics (NBS) released the February inflation report with headline inflation jumping to a 4-year high at 17.33percent year-on-year (y/y) from 16.47 percent in January 2021.

At the Nigerian stock market, Guinness led the league of advancers after its share price moved up by N2.3 or 10 percent, from N23 to N25.3. Also, Vitafoam rallied from by 40kobo or 5.44percent, from N7.35 to N7.75; while Livestock Feeds made the top advancers after its share price increased by 7kobo or 3.83percent, from N1.83 to N1.9.

At the close of the trading session on Tuesday, March 16, the Nigerian Stock Exchange (NSE) All-Share Index (ASI) increased by 0.41 percent, from 38,561.84 points to 38,720.81 points while the value of listed stocks on the Nigerian Bourse increased by N83billion, from N20.175 trillion to N20.258trillion.

Despite the record positive close of equities trading on Custom Street, more investors chose to sell stocks like Wapic (-9.09percent), Africa Prudential (-8.26percent), Fidelity Bank (-6.69percent), ETI (-5.83percent), and GTBank (-4.84percent).

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NSE Demutualization

NSE completes demutualisation

by with No Comment Business

The Nigerian Stock Exchange (NSE) has received final approvals of its demutualisation plan from the Securities and Exchange Commission (SEC) and Corporate Affairs Commission (CAC) respectively.

READ ALSO: Investors Lose N371.33bn as NSEASI Dips…

With these approvals, The Exchange has now completed its demutualisation process.

Under the demutualisation plan, a new non-operating holding company, the Nigerian Exchange Group Plc (‘NGX Group’) has been created.

The Group will have three operating subsidiaries, namely: Nigerian Exchange Limited (NGX Limited), the operating exchange; NGX Regulation Limited (NGX REGCO), the independent regulation company; and NGX Real Estate Limited (NGX RELCO), the real estate company.

All the entities have been duly registered at the CAC.

Abimbola Ogunbanjo, NSE Council President, said: “Successful demutualisation was one of my fundamental objectives when I assumed the Presidency of The Exchange.

The SEC’s decision today to approve the NSE’s demutualisation plans brings this aspiration to a successful conclusion in a process that included the passage of the Demutualisation Act through the National Assembly.

We are elated that this milestone has been achieved as we celebrate the 60th anniversary of the commencement of trading at the Exchange and now look forward to the future public listing of its shares on NGX Limited.

On behalf of the NSE, I would like to warmly thank all those that have worked assiduously to achieve this watershed event on our journey to make the NSE a multifaceted exchange that extends across various markets and geographical regions.”

The approvals by the SEC and CAC signify that the NSE can now activate its Transition Plan to a new operational structure and holding company.

The extensive Transition Plan, taking the Group and its subsidiaries through to full Operational Launch, covers legal and practical changes to enable the functioning of the new corporate structure, with no loss of service and a seamless transition for market participants.

The Transition Plan will also see the inauguration of Boards for each of the new entities, staff reallocation to their respective functions within the operating subsidiaries, operationalisation of business plans and budgets, technology systems transfer, and the requisite arm’s length agreements between the entities.

Upon Operational Launch, the Group’s new brands, including a new website, will be unveiled and the Group will be in a position to execute on its strategic vision.

Stakeholders, including our new valued shareholders, will benefit from The Group’s enhanced Corporate Governance framework, access to capital to fund strategic developments and a more globally competitive Exchange.

The approvals also enable the shares of NGX Group Plc, which have been registered with the SEC, to be allotted to the membership pursuant to the Court approved Scheme of Arrangement.

Ahead of its listing on NGX Limited, the shares of NGX Group Plc will be available for bilateral trades to be executed in line with extant rules and regulations of the Nigerian capital market.

Otunba Ogunbanjo will serve as the inaugural Chairman of NGX Group Plc’s Board of Directors.

Oscar N. Onyema, the new Group CEO of NGX Group Plc, said: “The Nigerian capital markets should play a role commensurate with Nigeria’s status as Africa’s largest economy.

At the Nigerian Stock Exchange, we have a vision that the new group will become the premier exchange hub for Nigerian businesses and for the African economy.

We are implementing a series of measures towards this goal, demutualisation being a critical milestone.

The completion of demutualisation is a truly significant moment, and we welcome the new possibilities that have opened up for us today.”

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