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Market rebounds to N8 trillion

By on April 19, 2011

The market capitalisation of equities at the Nigerian Stock Exchange, on Monday, rebounded to N8.086 trillion as investors scramble for Transcorp and banks’ stocks.

 

The market capitalisation had plunged middle of last month from the N8 trillion region following low confidence in the market as a result of political uncertainty.

However, the Exchange’s capitalisation of the 194 First-Tier equities closed yesterday at N8.086 trillion after opening the day at N7.999 trillion, reflecting N87 billion gains or 1.09 per cent appreciation.

Transcorp’s shares were the most traded stock on Monday with over 223.245 million volume of shares traded, while Zenith Bank and Guaranty Bank followed with 25.612 million and 22.907 million volume of shares respectively.

Stockbrokers at GTI Capital, a stockbroking firm, said the continuous rebound in the market could be attributed to “a relative peaceful political terrain.” They said that reports from the Stock Exchange revealed a continual modest rally on indicators on the heel of recent successful elections.

“Recall that there was heightened concerned on the stability of the country prior to the aforementioned exercise. This led to a presumption that investors (foreign and core local) were withholding their cash for a better lead after the outcome of the election.

“Signals are strong that the remaining elections may go the way of last Saturday. This is, therefore, deduced to have created positive activities on the floor of Nigerian bourse,” they said.

Companies’ results

The Exchange on Monday marked down the price of Nestle Nigeria stock for a dividend of N10.60 per share and a bonus of one for five as proposed by the company’s management.

United Bank for Africa (UBA) yesterday presented to the NSE its audited financial result for the year ended December 31, 2010. The bank recorded a profit after tax of N598 million in 2010 as against the profit after tax of N2.375 billion posted in the previous year, representing a decline of 75 per cent.

UBA also recorded a 24.14 per cent decline in its gross earnings during the period in view, from N244.110 billion in 2009 to N185.186 billion last year.

Meanwhile, the company’s board of directors has proposed a dividend of five kobo and bonus of one for every four units of shares owned by its shareholders. The stock price of UBA appreciated yesterday by 1.49 per cent, from N8.05 per share to N8.17 after the announcement.

The management of the Nigerian Breweries (NB), on Monday, officially notified the Exchange of its discussion with Heineken NV regarding the potential acquisition of three of the five breweries recently acquired from the Sona group.

“The discussions should lead to the transfer of majority equity interests in Sona Systems Associates Business Management Limited (which owns breweries in Otta and Kaduna) and Life Breweries Company Limited, Onitsha, to Nigerian Breweries,” the company said.

However, the NB said the proposed acquisition is subject to the approval of its Board and Shareholders, as well as relevant regulatory authorities.

Source : 234next