• NGX all-share index gains by 2.5%

The battle for the control of the country’s premier and leading financial institution, FBN Holdings Plc persists as strong indications emerged yesterday that another majority shareholder is mopping up the shares of the leading bank.

At the close of trading yesterday, the market capitalisation of the bank rose from N656 billion with a share price of N18.35 kobo as at Monday, July 3, 2023 to N800 billion at yesterday’s market closure. The stock rose to N22.30 kobo in one week or by 18 per cent.

Transactions in the shares of FBN Holdings also led market activity with 198.221 million shares valued at N4.417 billion, higher than 131.7 million units, valued at ₦2.6 billion recorded last week Friday.

The development as the total volume of trades increased by 49.8 per cent to 1.839 billion units, valued at N22.033 billion, and exchanged in 14,584 deals yesterday.

Although the heavy-weight buyer behind the transactions has not been confirmed as of press time, yet sources close to The Guardian said it is likely that another majority shareholder who would not want the Honeywell Group Chairman to remain the largest shareholder in the bank is currently in a mop spree for the shares of the bank.

“It is likely that another majority shareholder is mopping up shares behind the scene but they will not want to disclose until they achieve their objectives. Also, some people are buying with the hopes that one of the major shareholders would move the stock higher,” a source said. Last week, the stock appreciated by N116.66 billion, with its market capitalisation hitting N728.67 billion and stock price settling at N20.3 per share.

Meanwhile, the Nigerian equities yesterday opened the week in an upbeat, as investors’ fortunes increased by N851 billion, amid positive sentiments in Dangote Cement Plc and 70 stocks.

The all-share index (ASI) gained 1,563.28 points, representing a gain of 2.5 per cent, the highest point since March 17, 2008, to close at 64,603.69 points. Also, market capitalisation rose by N851 billion to close at N35.177 trillion.

The upturn was driven by price depreciation in large and medium capitalised stocks amongst which are; Dangote Cement, Conoil, MRS Oil Nigeria, MTN Nigeria Communications (MTNN) and Stanbic IBTC Holdings.

This week, analysts at United Capital Plc said: “We expect the bullish sentiments in the equities market to persist on the back of the attractiveness of the market over the depressed rates in the fixed-income market.

“Also, we believe the positive sentiments around the new policies to continue to drive the rally in the market. Lastly, we expect investors to begin to take positions ahead of the upcoming Q2, 2023 earnings season.”

As measured by market breadth, market sentiment was positive, as 71 stocks gained relative to 19 losers. DAAR Communications, Dangote Cement, MRS Oil Nigeria, Neimeth International Pharmaceuticals and Jaiz Bank emerged as the highest price gainer of 10 per cent each to close at 22 kobo, N330.1, N109.45, N2.20 and N1.98 kobo respectively.

Transcorp Hotels followed with a gain of 9.98 per cent to close at N35.91, while Conoil advanced by 9.97 per cent to close at N112.50 kobo.

On the other side, Pharma Deko led others on the losers’ chart with 9.85 per cent to close at N1.83, per share. Union Dicon Salt followed with a decline of 9.50 per cent to close at N8.10, while Berger Paints Nigeria shed 9.09 per cent to close at N10.

Guinea Insurance lost 7.69 per cent to close at 24 kobo, while Champion Breweries depreciated by 5.43 per cent to close at N4.35 kobo.

The total volume of trades increased by 49.8 per cent to 1.839 billion units, valued at N22.033 billion, and exchanged in 14,584 deals.

Transactions in the shares of FBN Holdings (FBNH) led the activity with 198.222 million shares worth N4.418 billion, Universal Insurance followed with an account of 184.656 million shares valued at N53.465 million.

Sterling Financial Holdings Company traded 161.679 million shares valued at N724.332 million.

Transnational Corporation (Transcorp) traded 156.417 million shares worth N706.916 million, while AIICO Insurance traded 98.322 million shares worth N73.579 million.