Market indices soar higher with N1.377 trillion on BUA listing, others
Market capitalisation of the Nigerian Stock Exchange (NSE), soared significantly by N1.377trillion, as the total equities capitalisation rose to N15.164 trillion, following yesterday’s listing of BUA Cement Plc’s on the floor of the Exchange.
The upturn was also impacted by gains recorded in medium and large capitalised stocks, amongst which were; Dangote Cement, MTN Nigeria, Presco, Guaranty Trust Bank, and Lafarge Africa.
NSE, Thursday, admitted 33.864 billion ordinary shares of 50 kobo each of BUA Cement at N35 per share on its daily official list, adding N1.18 trillion to the Exchange capitalisation.
This makes BUA Cement the third largest company on the NSE.
Speaking at the listing ceremony the Chief Executive Officer, NSE, Oscar Onyema, said it is exciting for the Exchange to record such a major listing at the beginning of the year, noting that it is another opportunity for investors to have access to a company with a good track record.
He added that the company has plans to move to the Premium Board of the NSE in a very short period.
The Managing Director/CEO, BUA Cement, Yusuf Binji, said it was a major fulfillment for the group to have its shares listed after a merger of two companies – Cement Company of Northern Nigeria (CCNN) Plc, and Obu Cement Company Limited, that control significant markets in Southern and Northern parts of the country.
Binji explained that while CCNN was the listed company before now, its merger with Obu Cement, both of members of the BUA Group, gave birth to BUA Cement Plc, an enlarged firm with total installed capacity of 8.0 metric tonnes per annum (mtpa).
He said with the listing, shareholders should expect better returns because the company will become one of the top best dividend-paying companies, and hopes to raise installed capacity to 11mtpa.
Binji said: “In addition to meeting the demand from customers in our core regions in the country, the enlarged company would be positioned to distribute its products in new geographical markets, creating the potential for additional shareholder value creation.
“The merger of the two companies to become BUA Cement would provide opportunities for significant cost savings and improved operational efficiencies by streamlining operations and optimising the use of combined resources.”
He said it has also provided a platform where the enlarged company benefits from economies of scale in procurement, distribution, and manufacturing of the products offered to our customers.
Further breakdown of yesterday’s transactions showed that the All-Share Index (ASI) increased by 833.09 absolute points, representing a growth of 2.92 per cent, sustaining nine consecutive days of bullish activity to close at 29,395.57 points. Also, market capitalisation rose by N1.377 trillion, to close at N15.164 trillion.
Analysts at Afrinvest Limited, said: “Following the recent trend, we maintain our bullish outlook on the market this week.”
Market breadth closed positive as 22 stocks posted gains while 21 declined. Champion Breweries and Sovereign Trust Insurance recorded the highest price gain of 10 per cent each, to close at 99 kobo and 22 kobo, respectively.
Presco followed with 9.71 per cent to close at N57.05 per share.
Wapic insurance rose 8.57per cent to close at 38 kobo, and Consolidated Hallmark Insurance 7.69 per cent, to close at 42 kobo, per share.
On the other hand, Unity Bank led the losers’ chart with 10 per cent to close at 72 kobo, while UPDC Real Estate Investment Trust (UPDCREIT), and Union Dicon Salt followed with 9.88 per cent each, to close at N3.65, and N10.95, per share, respectively.
Cornerstone Insurance lost 8.70 per cent to close at 63 kobo, while DN Meyer shed 8.41 per cent to close at 50 kobo, per share.
However, total volume traded fell 6.56 per cent to 693.19 million shares worth N7.45 billion, traded in 6,634 deals.
Transactions in the shares of Wapic Insurance topped the activity chart with 190.10 million shares valued at N68.48 million.
Transnational Corporation of Nigeria (Transcorp) followed with 82.82 million shares worth N89.81 million, while Zenith Bank traded 80.78 million shares at N1.77 billion.
FBN Holdings traded 41.62 million shares valued at N315.60 million, while United Bank for Africa (UBA) transacted 39.73 million shares worth N336.999 million.