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NGX sustains bullish run as capitalisation surges by N41bn

By Helen Oji
15 October 2021   |   4:05 am
The Nigerian Exchange Limited (NGX), yesterday, sustained a rising profile as a result of increased investors' appetite in consumer and industrial goods stocks, as market capitalisation appreciated by N41 billion.

Nigerian Exchange Group (NGX)

•Onyema resigns as non-executive director
The Nigerian Exchange Limited (NGX), yesterday, sustained a rising profile as a result of increased investors’ appetite in consumer and industrial goods stocks, as market capitalisation appreciated by N41 billion.

The All Share Index (ASI), increased by 78.79 absolute points, representing a growth of 0.19 per cent to close at 41,129.98 points. Similarly, the market capitalisation gained N41 billion to close at N21.432 trillion.

The surge was impacted by gains recorded in medium and large capitalised stocks, among which are: Seplat Energy, FBN Holdings (FBNH), Stanbic IBTC Holding, Lafarge Africa and Nigerian Breweries.

Analysts at Afrinvest Limited said: “We expect the bullish performance to be sustained in the next trading session, driven by improved investor sentiment in anticipation of third quarter (Q3) earnings releases.”

Vetiva Dealings and Brokerage said: “We expect the market to close the week positively, given the bullish sentiment and sustained demand in some major counters. However, tomorrow being the last trading day for the week, we expect some profit taking on some recent gainers but do not see this changing the positive trajectory seen so far this week.”

Also, the market closed positive, recording 21 gainers and 14 losers. Champion Breweries recorded the highest price gain of 9.71 per cent to close at N3.0 kobo per share. Africa Prudential followed with a gain of 7.81 per cent to close at N6.90 kobo while FBNH appreciated by 7.31 per cent to close at N11.75 kobo.

Universal Insurance went up by 4.76 per cent to close at 22 kobo, while Chams appreciated by 4.35 per cent to close at 24 kobo. On the other hand, learn Africa led the losers’ chart by 10 per cent to close at N1.26 kobo.

Ecobank Transnational Incorporated (ETI), followed with a decline of 8.16 per cent to close at N6.75, while Wapic Insurance lost six per cent to close at 47 kobo.

Linkage Assurance shed five per cent to close at 57 kobo, while NEM Insurance depreciated by 4.46 per cent to close at N1.93 kobo.

The total volume traded increased by 61.04 per cent to 908.059 million shares, worth N10.971 billion, and traded in 5,151 deals.

Transactions in the shares of FBNH topped the activity chart with 602.769 million shares valued at N7.112 billion.

Guaranty Trust Holding Company (GTCO), followed with 63.749 million shares worth N1.811 billion, while Champion Breweries traded 37.684 million shares valued at N114.842 million.

Universal Insurance traded 21.910 million shares valued at N4.568 million, while United Bank for Africa (UBA) transacted 21.174 million shares worth N176.701 million.

Meanwhile the NGX, yesterday, announced the resignation of Oscar N. Onyema, as Non-Executive Director with immediate effect.

Onyema’s resignation is on the heels of the imminent listing of Nigerian Exchange Group Plc (NGX Group ), where he serves as the Group Managing Director/Chief Executive Officer on the main board of NGX.

With the development, NGX will uphold Rule 184(2)(a) of the Securities and Exchange Commission Consolidated Rules 2013 which states that “A securities exchange shall have a code of conduct for its council members or board, which shall be approved by the Commission, and shall contain amongst others the following provisions, to wit, that the council members or board shall: (a) not be a staff of a quoted company and its subsidiaries.”

Speaking on the development, the Chairman, NGX, Abubakar Mahmoud, stated, “On behalf of the Board and Management of The Exchange, I extend our heartfelt gratitude to Mr. Onyema for his selfless service to The Exchange. As he transitions into this new phase as the GMD/CEO of a listed company, we reiterate our commitment to act in the best interest of all Issuers to the benefit of all stakeholders in the capital market.”