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NSE all-share index plunges to two-year low

By on December 16, 2014

The Nigerian equities market dipped to a two-year low last Friday as investors intensified dumping of shares causing the Nigerian Stock Exchange (NSE) to close at 30,763.38.  Also, market capitalisation ended at N10.156 trillion.  Bears have been having a field day at the stock market as a wave of negative sentiments swept across the market in the recent times.

Investors are said to be adopting cautious trading, watching the unfolding political scenario as the country prepares for general elections next February coupled with falling oil prices.

Market analysts at Afrinvest (West Africa) said in light of the falling oil price and the attendant risks around the foreign exchange, investor sentiments continually remain weak as most prices have falling below their year and 52-week lows.

“While this in itself presents opportunities, uncertainties around how further low prices can get in our view will further determine pricing in trading sessions ahead,” they said.
Meanwhile, the shares of Ecobank Transnational Incorporated appreciated by 3.5 per cent at the close of trading last week. According to market operators, in market that has been bearish, investors’ demand for the shares of ETI could be attributed to positive reaction to the $200 million loan facility the bank received from Deutsche Bank AG.

The Lome-based parent company of the Ecobank Group, got  $200 million  senior unsecured loan facility  from   Deutsche Bank AG for general purpose  lending.
According to ETI, had last month appointed Deutsche Bank to be initial lead arranger, book runner and facility agent to arrange the facility.

ETI said less than one month, Deutsche Bank successfully closed primary syndication with an oversubscribed order book of $230 million.

“The final size of the facility was maintained at $200 million. This transaction reflects Deutsche Bank’s strong distribution platform and rapid execution capabilities in challenging market conditions. The facility will be used for general corporate purposes,” ETI said.

Operators said some investors have seen the facility as a boost that is capable of boosting ETI’s operations going forward.

 

[ThisDay]