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Investors lose N12.22bn as equities market open week on profit-taking



By Kayode Tokede

The equities market of The Nigerian Stock Exchange (NSE) started the week southwards as the market capitalization dropped by N12.22billion, ending the five days bullish streak.

Accordingly, market capitalisation went down to N13.346 trillion from N13.358trillion it opened for trading on Monday.

The All Share Index (ASI) shed 23.41 basis points or 0.09 per cent to 25,582.23 basis points.

Across sectors, the Insurance (+0.7 per cent) and Oil & Gas (+0.2 per cent) indices recorded gains, while the Banking (-0.7 per cent) and Consumer Goods (-0.4 per cent) indices recorded losses. The Industrial Goods index was flat.

The downturn was impacted by losses recorded in medium and large capitalised stocks, amongst which are; Guaranty Trust Bank, Dangote Sugar Refinery, Red Star Express, United Bank for Africa (UBA) and Zenith Bank.

This week, analysts at United Capital Plc expected to see some profit-taking given the bullish performance seen across the board last week.

It also said that the resumption of FX sales at the I&E window might provide previously locked-in foreign investors the long-waited opportunity to exit their stakes or limit exposure to Nigerian equities.

Analysts at Afrinvest Limited also expected profit-taking to persist in the next trading session.

Market sentiment, as measured by the market breadth, was positive, as 16 stocks gained relative to 15 losers. Eterna recorded the highest price gain of 9.13 per cent to close at N2.27, per share. NEM Insurance followed with a gain 8.70 per cent to close at N2.25, while C&I Leasing rose by 8.33 per cent to close at N3.90, per share.

UACN Property Development Company went up by 7.61 per cent to close at 99 kobo, while Academy Press appreciated by 7.41 per cent  to close at 29 kobo,  per share. On the other hand, Honeywell Flour Mill led the losers’ chart by 6.25 per cent, to close at 90 kobo, per share. Chams followed with a decline of 4.55 per cent to close at 21 kobo, while Red Star Express declined by 4.37 per cent to close at N3.72, per share.

Neimeth International Pharmaceuticals lost 3.74 per cent to close at N1.80, while Union Diagnostic & Clinical Services shed 3.70 per cent to close at 26 kobo, per share.

Also, the total volume  traded decreased by 39.24 per cent to 254.974 million shares, worth N2 billion, and traded in 4,699 deals. Transactions in the shares of UBA topped the activity chart with 44.349 million shares valued at N291.992 million. Zenith Bank followed with 30.821 million shares worth N536.111 million, while Access Bank traded 29.115 million shares valued at N196.625 million.

Custodian Investment traded 19.828 million shares valued at N126.688 million, while FBN Holdings (FBNH) transacted 19.828 million shares worth N98.633 million.

“The equities market closed down today on the back of the losses recorded in the Banking and Consumer Goods sectors.

“While we expect that investor sentiments would largely be driven by reactions to H1 2020 results in the near term, we reiterate that this may be one of the best periods to pick up some quality names with a medium to long term investment horizon,” analysts at InvestmentOne research said.

capital market

Naira depreciates to N1,170/$ in parallel market



The Naira on Monday depreciated to N1,170 per dollar in the parallel market from N1,166 per dollar last week Friday.

Data from FMDQ showed that the indicative exchange rate for NAFEM fell to N837.77 per dollar from N927.19 per dollar last week Friday, indicating N89.42 kobo appreciation for the naira.

The Naira appreciated to N837.77 per dollar in the Nigerian Foreign Exchange Market (NAFEM) yesterday.

The volume of dollars traded (turnover) on NAFEM fell by 32.8 percent to $73.93 million from $110.14 million last week Friday.

As a result, the gap between the official and parallel market exchange rates widened to N332.23 per dollar yesterday from N238.81 per dollar last week Friday.

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Stock market plummets with investors losing N258.85bn



Trading yester day at the Nigerian equities market closed negatively for the new week. This is as the NGX Market CAP also recorded a loss of N258.85bn in Naira terms.

UNIVINSURE had the highest volume contribution with 16.42 percent, while TRANSCORP and GTCO followed closely.

According to the value chart, AIRTELAFRICA is at the top with a 46.04 percent contribution while GTCO and ZENITHBANK followed closely behind

The NGX All-Share Index (ASI) declined by 0.66 percent, closing at 70,946.83 basis points, compared to the previous day’s gain of 0.08 percent, which closed at 71,419.87 basis points.

The NGXASI now stands at 38.43 percent.

Meanwhile, the total volume traded declined by 0.72 percent to close at N358.53m, valued at N7.10bn and traded in 6,433 deals. UNIVINSURE was the most traded stock by volume with N58.85m, while AIRTELAFRI was the most traded stock by value with N3.27bn units traded.

The Gate Index declined by 0.04 percent to close at 183.36, while the Toni index advanced by 0.38 percent to close at 374.27 basis points.

At the close of trading, the market recorded 33 gainers, 26 losers, and 58 unchanged. THOMASWY topped the gainers list, while BUACEMENT topped the list of losers.

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Flour Mills of Nigeria completes repayment of N51.64bn Series 2 Commercial Paper



Flour Mills of Nigeria Plc (FMN), a Nigerian food and agro-allied company, has repaid its N51.64 billion Series 2 Commercial Paper (CP) on November 17, 2023.

This repayment follows the earlier completion of the N13.33 billion Series 1 payment on August 22, 2023.

The successful repayment of these Commercial Paper Programs highlights FMN’s robust financial position and the trust it commands within the market, according to Anders Kristiansson, FMN’s Group Chief Finance Officer. He also noted the company’s commitment using the Debt Capital Market to fulfill its operational financial needs in a statement shared with Businessday.

“We are delighted to confirm the prompt and successful repayment of our Series 2 Commercial Paper. This accomplishment mirrors FMN’s dedication to sound financial management and the faith vested in our organization by the investing community. “We extend our appreciation to our stakeholders for their unwavering support and affirm our dedication to delivering sustainable value while upholding the highest standards of corporate governance,” Kristiansson said.

The Series 1 CP and Series 2 CP, totaling N64.97 billion, were initially issued on February 22, 2023, as part of FMN’s N200 billion Commercial Paper Programme introduced earlier that month.

The company also initiated its N200 billion Commercial Paper Programme on February 10, 2023, launching Series 1 and Series 2 on February 22. Series 1, raising N13.33 billion with a yield of 13.0 percent, and Series 2, raising N51.64 billion with a yield of 14.0 percent.

Following the successful issuance of Series 1 and 2, FMN made strategic strides by introducing its Series 3 Commercial Paper in June 2023. The subscriptions from banks and Pension Fund Administrators contributed to the success, with banks at 39.7 percent and Pension Fund Administrators at 40.8 percent.

The management of this transaction was led by FBNQuest Merchant Bank Limited as the Lead Arranger, supported by ChapelHill Denham Advisory Limited, FCMB Capital Limited, and United Capital PLC serving as Joint Arrangers.

Established in September 1960 and listed on the Nigerian Stock Exchange since 1978, Flour Mills of Nigeria (FMN) Plc, known for the Golden Penny Food brand, has emerged as a frontrunner in Nigeria’s food and agro-allied industry.

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