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Insurance, Energy Stocks Boost Market by N80bn



insurance stocks

By Dipo Olowookere

The bullish trend at the Nigerian Stock Exchange (NSE) was sustained at the last trading session of the month of April 2020.

Gains posted by equities in the insurance and energy sectors further strengthened the market last Thursday by 0.67 percent.

The 1.22 percent and 1.04 percent growth printed by the insurance and oil/gas sector respectively erased the losses recorded by the industrial goods (0.47 percent), banking (0.37) and consumer goods (0.23).

At the close of transactions, the All-Share Index (ASI) increased by 152.61 points to 23,021.01 points from 22,868.40 points. Also, the market capitalisation increased by N80 billion to N11.998 trillion from N11.918 trillion.

Business Post reports that the bulls dominated the market at the session through 21 stocks, which appreciated in value. There were only 13 price losers.

MTN Nigeria led the gainers’ chart with a price appreciation of N4.60 to settle at N112 per unit. Ardova was second on the log with a price growth of N1.05 to finish at N11.55 per unit.

Lafarge Africa gained 30 kobo to sell at N11.80 per share, Access Bank appreciated by 25 kobo to trade at N6.60 per share, while International Breweries garnered 20 kobo to quote at N5 per share.

On the losers’ table, Nigerian Breweries dominated with a price depreciation of N1.05 to trade at N30 per unit.

BUA Cement depreciated by 40 kobo to sell at N32.60 per unit, Zenith Bank declined by 40 kobo to close at N14.30 per share, Guinness Nigeria lost 10 kobo to trade at N18.40 per share, while GTBank shed 10 kobo to sell at N21 per unit.

The level of activity improved last Thursday as the total number of trades increased by 29.57 percent to 359.5 million from 277.4 million, while the value of transactions rose by 27.87 percent to 3.3 billion from N2.6 billion, with the number of deals growing by 10.80 percent to 4,946 from 4,464.

A breakdown of the transactions showed that Access Bank was investors’ delight as the bank’s stocks sold 64.6 million units worth N421.5 million.

FBN Holdings exchanged 62.9 million shares valued at N289.5 million, GTBank transacted 36.1 million units for N759.5 million, FCMB transacted 35.2 million stocks worth N61.8 million, while Zenith Bank traded 25.6 million equities valued at N372.0 million.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via

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Mobil (11 Plc) to List Shares on NASD OTC Exchange After NSE Exit



mobil oil Nigeria

By Dipo Olowookere

Shares of 11 Plc (formerly Mobil Oil Nigeria) would be listed on the trading platform of the NASD over-the-counter (OTC) Exchange after being delisted on the Nigerian Stock Exchange (NSE), the company has confirmed.

The energy company is planning to leave the exchange after decades and one of the reasons is because of the tough listing requirements of the NSE.

At the Annual General Meeting (AGM) of the firm held on October 14, 2020, the shareholders had approved the delisting of the organisation from the exchange.

But for those who opposed the action, they were offered N213.90 per share, being the highest price the company’s stocks have traded six months before the notice of the AGM, where the decision to leave the NSE was approved by investors.

Some days ago, the management of Mobil issued a statement to explain the reason for the action, but in some sections of the media (Business Post not included), it was reported that the delisting was to make the firm private and evict the minority investors.

Mobil has again released another statement to refute this, emphasising that after delisting from the NSE, its equities would still be tradable on the NASD.

“The delisting of 11 Plc’s shares from the NSE is not meant to make the company private. It is only a cessation of trading of the company’s shares on the NSE platform. Hence, there is no forceful acquisition of shares from minority shareholders.

“The company’s shares will be listed on the NASD OTC, thus still making its shares tradable. Shareholders will have a choice of selling their shares now at the price indicated by the company or at the NSE platform price before the delisting cut-off date or to sell on the NASD platform after delisting or to hold on to their shares and continue to receive their dividend.

“The company could choose to return to the NSE platform sometime in the future. The minority shareholders have nothing to fear or worry about in connection with the delisting,” a part of the new statement explained.

The statement further said, “Since the delisting is not intended to make the company private, and there was no dissent at the AGM in which the special resolution was passed, the unit price for the delisting was not in issue.

“It is pertinent to note that a the time of the AGM, the share price of 11 Plc shares was N186.90 but the delisting price was put at N213.90 being the highest price the stock has traded in the six months preceding the AGM. The fact that the price got higher than now cannot override the resolution.

“In any case, shareholders who want to sell but do not want to sell at the proposed price can also sell at the NSE platform before the delisting date.

“Minority shareholders are not bound to sell all their shares but may decide to keep their shares (which will still be freely tradable on the NASD OTC platform) in view of the company’s track record and dividend payouts.”

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Court Flings Oando Suit Against SEC



Oando SEC crisis

By Dipo Olowookere

A suit filed by Oando Plc against the Securities and Exchange Commission (SEC) has been thrown out by Justice Folashade Giwa-Ogunbanjo of the Federal High Court sitting in Abuja.

The judge, while delivering a judgement on the matter on Thursday, said her court lacks the jurisdiction to entertain the suit and directed the company to file its case before the Investment Securities Tribunal (IST), which she said was the appropriate court to hear the matter.

Oando had gone to the court to argue that its fundamental rights were trampled upon by the apex regulatory agency in the Nigerian capital market.

SEC had on May 31, 2019, directed a few members on the board of Oando to resign following the outcome of its investigations into allegations of ‘serious infractions by the company.’

The affected board members were Group Chief Executive, Mr Adewale Tinubu; the Deputy Group Chief Executive, Mr Omamofe Boyo; and the Group Chief Financial Officer, Mr Olufemi Adeyemo.

Oando, which was of the opinion that these alleged infractions and penalties meted out by the regulator were unsubstantiated, ultra vires, invalid and calculated to prejudice the business of the company, challenged the decisions in court.

But the court said the matter should be heard by IST and again, Oando is of the view that the judgement was misconceived and as such has appealed the decision on the grounds that the powers conferred by the Constitution of Nigeria on its citizens to enforce their fundamental rights supersede the provisions of the Investment and Securities Act 2007.

As a result, the energy firm has filed applications for stay of execution as well as an injunction pending appeal in respect of the judgement of Justice Giwa-Ogunbanjo in relation to SEC’s May 31, 2019, letter to Oando.

In view of this, Oando believes SEC is restrained from acting on its findings and carrying out any of the sanctions specified in its May 31, 2019, letter as the status quo that existed before Thursday’s ruling remains unchanged and its current management team remains in place.

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Wema Bank, Champion Breweries Weaken Stock Market by 0.74%




By Dipo Olowookere

Another loss was recorded at the Nigerian Stock Exchange (NSE) on Friday as a sell-off in financial, consumer goods and industrial goods equities weakened the market by 0.74 per cent.

As a result, the All-Share Index (ASI) decreased by 295.60 points to 39,799.89 points from 40,095.49 points, while the market capitalisation reduced by N154 billion to N20.824 trillion from N20.978 trillion.

Business Post reports that the insurance sector depreciated yesterday by 2.32 per cent, the banking index lost 0.48 per cent, the consumer goods space fell by 0.40 per cent, while the industrial goods counter depreciated by 0.19 per cent, with the energy sector rising by 0.25 per cent.

It was observed that the investor sentiment, which is measured by the market breadth, was negative at the last trading session of the week due to the 24 declining stocks and 17 advancing equities.

Wema Bank and Champion Breweries depreciated by 10 per cent each on Friday to settle at 63 kobo per share and N2.52 per unit respectively.

Sunu Assurances depleted by 9.59 per cent to 66 kobo per share, Africa Prudential lost 5.74 per cent to N5.75 per unit, Axa Mansard Insurance dropped 5.36 per cent to settle at N1.06 per share.

After recording losses for a few days after its share reconstruction, Lasaco Assurance gained 9.82 per cent yesterday to top the risers chart, closing at N1.23 per share.

Mutual Benefits appreciated by 8.11 per cent to 40 kobo per unit, Courtville grew by 5.00 per cent to 21 kobo per share, Oando improved by 2.99 per cent to N3.45 per unit, while NAHCO gained 2.70 per cent to settle at N2.28 per share.

Wema Bank witnessed a significant trading volume on Friday, emerging as the most traded stock after it sold 304.5 million shares worth N197.3 million.

FBN Holdings exchanged 30.8 million shares for N226.1 million, Zenith Bank traded 26.6 million stocks valued at N677.4 million, Transcorp transacted 22.9 million equities worth N20.7 million, while United Capital exchanged 17.2 million stocks for N104.6 million.

At the close of transactions, the trading volume rose by 55.58 per cent to 507.3 million from 326.0 million, while the trading value reduced by 34.22 per cent to N2.4 billion from N3.7 billion, with the number of deals declining by 2.23 per cent to 4,465 deals from 4,567 deals.

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NASD Exchange Extends Stay in Flat Domain Friday



NASD Exchange bullish

By Adedapo Adesanya

Unlisted securities admitted on the trading platform of the NASD Over-the-Counter (OTC) Securities Exchange extended their stay in the flat territory on Friday, February 26.

On the preceding trading day, stocks on the exchange closed flat and yesterday, they remained unchanged as none of them recorded any price movement.

As a result, the total value of securities at the OTC market, which is measured by the market capitalisation, remained static at N512.24 billion, while the NASD Unlisted Security Index (NSI) ended at 713.91 points, the same level it was at the previous trading session.

However, there were movements on the activity chart as the volume of securities transacted by investors at the bourse dropped again by 15.6 per cent to 4,220 units on Friday from the 4,998 units recorded on Thursday.

Equally, the value of transactions dropped by 51.5 per cent as the market participants to traded securities worth N321,600 compared to N662,700 of the previous day.

But the number of deals executed by the traders increased by 200 per cent to six deals in contrast to the two deals carried out a day earlier.

These deals were executed on FrieslandCampina WAMCO Nigeria Plc (five deals) and Central Securities Clearing Systems (CSCS) Plc (one deal).

By the time the market closed for the day and week, the company with the highest number of shares traded by investors on a year-to-date basis was UBN Property Plc with the sale of 15.5 million units valued at N16.8 billion. CSCS Plc was in second place with 4.7 million units worth N73.2 million, while FrieslandCampina held the third position with 2.3 million units worth N285.1 million.

On the other hand, FrieslandCampina ended the session as the most traded stock by value (year-to-date) with 2.3 million units valued at N285.1 million. Niger Delta Exploration and Production (NDEP) Plc trailed with 604,249 units of its securities valued at N196 million, while CSCS Plc has traded 4.7 million units worth N73.2 million.

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Naira Crashes to N410.25/$1 at I&E, N482/$1 at Black Market



Black Market

By Adedapo Adesanya

It was an unfavourable outcome for the Naira at both the Investors and Exporters (I&E) and parallel market segments of the foreign exchange market on Friday, February 26.

Yesterday, the local currency was further weakened against the United States Dollar at the two opposite market segments.

At the specialised market, the I&E, the Naira lost N1.58 or 0.39 per cent to finish at N410.25/$1 compared to N408.67/$1 of the previous day.

The depreciation came despite less pressure on the domestic currency as the turnover at the window reduced by 14.7 per cent or $6.48 million to $37.49 million from $43.97 million of the preceding session.

A looking at the performance of the local currency at the black market showed that it shed N2 or 0.42 per cent to close at N482/$1 in contrast to N480/$1 it traded on Thursday.

Also, at the same window, the local currency suffered a N2 loss against the Pound Sterling to close at N672/£1 versus the previous day’s N670/£1, while against the Euro, the Naira lost N3 to close at N583/€1 compared with the preceding day’s N580/€1.

However, at the interbank segment of the market, the domestic currency still remained flat against the US Dollar at N379/$1 and at the Bureaux De Change (BDC) window, the value of the Nigerian currency against the greenback remained at N395/$.

At the cryptocurrency market, most of the tokens tracked by Business Post on Friday closed bearish as only one finished stronger, based on data obtained from Quidax.

The Bitcoin (BTC) lost 0.3 per cent to trade at N32,100,018, Ethereum (ETH) depreciated by 3.6 per cent to sell at N1,015,000, while Litecoin (LTC) declined by 1.8 per cent to trade at N123,997.

Furthermore, the Dash (DASH) dropped 4.3 per cent to sell at N152,093.10, Ripple (XRP) fell by 2.1 per cent to trade at N300.62, while Tron (TRX) declined by 1.01 per cent to sell at N31.32.

The only coin which closed stronger was the US Dollar Tether (USDT) as its value went up by 5.7 per cent to quote at N721.88.

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Oil Dips on Stronger Dollar, Fear of Supply Increase



oil weak dollar

By Adedapo Adesanya

Oil prices fell on Friday as gains in the U.S. Dollar and expectations that more supply will likely to come back to the market depressed the market environment.

Consequently, the Brent crude dropped 1.1 per cent or 75 cents sell at $66.13 per barrel, while the West Texas Intermediate (WTI) crude dipped  $2.01 or 3.2 per cent to sell at $61.52 per barrel.

A stronger greenback makes US-Dollar priced oil more expensive for those buying crude in other currencies and this saw prices drop.

Despite the decline in prices on Friday, both Brent and WTI are on track for gains of about 20 per cent this month, as markets have grappled with supply disruptions in the United States, while optimism has built for demand to improve with vaccine rollouts.

Investors are betting that next week’s meeting of the Organization of the Petroleum Exporting Countries (OPEC) and allies, together called OPEC+, will result in more supply coming back to the market.

Oil prices have more than recovered to levels before the COVID-19 pandemic with global inventories trending down amid accelerating vaccine rollouts.

US crude prices on Friday faced a larger headwind due to the loss of refinery demand after several Gulf Coast facilities were shuttered during the winter storm last week.

Estimates show that this is about 4 million barrels per day of capacity still shut and it may take until March 5 for all of the shut capacity to resume though there is the risk of delays.

In other oil-related news, the OPEC+ group of producers complied at 103 per cent with the oil output cuts in January, higher than the estimated compliance in December, according to the sources with the cartel.

According to reports, in January 2021, the 10 OPEC members bound by the pact achieved 108 per cent compliance, while the non-OPEC group of producers, led by Russia, complied with the cuts by 95 per cent, up from 93 per cent in December.

The compliance figures will be reviewed by the OPEC+ panels next week, before the monthly meeting of the group’s ministers, expected to decide how the group will proceed with the supply management from April onwards

The leaders of the OPEC+ alliance, Saudi Arabia and Russia, are reportedly once again at odds over oil production policies, especially in light of the oil price rally so far this year.

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