Economy
Merger News Triggers 32.20% Rise in Portland Paints Stocks
By Dipo Olowookere
The news last Monday of a merger between Chemical and Allied Products (CAP) Plc and Portland Paints and Products Nigeria Plc pushed the stocks of the latter higher by 32.20 per cent last week.
In the four-day trading week, shares of the paint maker moved from N2.05 per unit to N2.71 per unit, closer to the N2.90 CAP is offering holders of Portland Paints equities.
The proposed consideration represents a 45 per cent premium to the last traded share price of Portland Paints on October 16, 2020, being the last business day prior to the date on which CAP sent its merger proposal to the board of Portland Paints and a 41 per cent premium on the trading price as at close of trading on October 23, 2020.
This news triggered investors to buy the company’s stocks and resulted in the price appreciation it achieved last week at the Nigerian Stock Exchange (NSE).
In the week also, FCMB grew by 28.28 per cent to settle at N3.13 per share, Tripple Gee and Company gained 27.78 per cent to end at 46 kobo per share, Sterling Bank appreciated by 26.43 per cent to close at N1.77 per share, while Fidelity Bank rose by 24.26 per cent to finish at N2.51 per unit.
At the close of the trading week, 68 equities appreciated in price, higher than 28 equities in the previous week.
However, there were six price losers, lower than 35 of the previous week and they were led by Morison Industries and Prestige Assurance, which went down by 10 per cent each to close at 54 kobo apiece.
Cutix depreciated by 8.95 per cent to settle at N1.73 per share, NASCON reduced by 8.39 per cent to N13.10 per share, Omatex Ventures lost 7.69 per cent to trade at 24 kobo per unit, while Cornerstone Insurance dropped 3.33 per cent to 58 kobo per unit.
In the week, prices of 94 stocks remained flat, lower than 99 recorded in the previous week.
On the activity chart, 1.9 billion shares worth N23.6 billion were traded in 23,578 deals as against the 1.5 billion shares valued at N19.7 billion transacted the previous week in 20,552 deals, Business Post learnt.
About 1.5 billion shares worth N15. 6 billion of these transactions executed in 12,546 deals were from the financial services sector, which contributed 77.41 per cent and 65.97 per cent to the total equity turnover volume and value respectively.
The consumer goods industry followed with 131.8 million shares worth N2.6 billion in 4,112 deals, while the third place was the industrial goods space, with a turnover of 83.5 million units worth N3.6 billion carried out in 1,818 deals.
FBN Holding, Zenith Bank and Access Bank accounted for 576.5 million units worth N6.791 billion in 4,652 deals, contributing 30.19 per cent and 28.76 per cent to the total equity turnover volume and value respectively.
These increase in the level of activity contributed to the 6.39 per cent growth recorded by both the All-Share Index (ASI) and market capitalisation, which closed the week at 30,530.69 points and N15.958 trillion respectively. Similarly, all other indices finished higher with the exception of the NSE ASeM index that closed flat.
By Adedapo Adesanya
The duo of Geo-Fluids Plc and Afriland Properties Plc propelled the NASD Over-the-Counter (OTC) Securities Exchange up 0.13 per cent on Friday, January 10.
Investors gained N1.4 billion during the trading session after the market capitalisation of the bourse ended at N1.053 trillion compared with the previous day’s N1.052 trillion, and the NASD Unlisted Security Index (NSI) increased at the close of business by 4.07 points to wrap the session at 3,073.93 points compared with 3,069.86 points recorded at the previous session.
Geo-Fluids added 25 Kobo to its value to close at N4.85 per unit compared with the previous session’s N4.60 per unit, and Afriland Properties Plc gained 24 Kobo to close at N16.25 per share versus Thursday’s closing price of N16.01 per share.
There was a 35.4 per cent fall in the volume of securities traded in the session as investors exchanged 4.3 million units compared to 6.6 million units traded in the preceding session, the value of shares traded yesterday went down by 37.4 per cent to N17.2 million from the N27.5 million recorded a day earlier, and the number of deals decreased by 47.2 per cent to 19 deals from the 36 deals recorded in the preceding day.
FrieslandCampina Wamco Nigeria Plc remained the most active stock by value (year-to-date) with 1.9 million units worth N74.2 million, followed by 11 Plc with 12,963 units valued at N3.2 million, and Industrial and General Insurance (IGI )Plc with 10.7 million units sold for N2.1 million.
IGI Plc closed the day as the most active stock by volume (year-to-date) with 10.6 million units sold for N2.1 million, trailed by FrieslandCampina Wamco Nigeria Plc with 1.9 million units valued at N74.2 million, and Acorn Petroleum Plc with 1.2 million units worth N1.9 million.
By Adedapo Adesanya
The Naira witnessed a depreciation on the US Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Friday, January 10.
According to data from the FMDQ Exchange, the local currency weakened against the greenback yesterday by 0.12 per cent or N1.80 to sell for N1,543.03/$1 compared with the preceding day’s N1,541.23/$1.
The pressure on the domestic currency came as the access granted to the Bureaux de Change (BDC) operators by the Central Bank of Nigeria (CBN) to purchase FX from the official market through the Electronic Foreign Exchange Matching System (EFEMS) platform prepares to end next week, precisely on January 19.
The CBN had given a 42-day window to the operators to access the platform to help stabilise the Naira in December, and this expires next week.
On Friday, the Nigerian currency tumbled against the Pound Sterling in the official market by N30.78 to sell for N1,889.29/£1 compared with the previous day’s N1,858.51/£1, but gained N5.48 against the Euro to finish at N1,583.81/€1, in contrast to Thursday’s rate of N1,589.29/€1.
As for the parallel market, the Nigerian Naira remained stable against the US Dollar during the trading session at N1,650/$1, according to data obtained by Business Post.
In the cryptocurrency market, it was bearish as the US economy added 256,000 jobs last month, the Bureau of Labor Statistics reported on Friday, topping forecasts for 160,000 and up from 212,000 in November (revised from an originally reported 227,000).
However, the readings came after a number of recent economic reports triggered a broad-market pullback across asset classes such as crypto as investors quickly scaled back the idea of a continued series of Federal Reserve rate cuts in 2025.
Cardano (ADA) fell by 3.6 per cent to trade at $0.921, Solana (SOL) slumped by 2.8 per cent to $185.93, Ethereum (ETH) depreciated by 1.4 per cent to $3,233.27, Litecoin (LTC) lost 1.3 per cent to finish at $103.62, Dogecoin (DOGE) shed 0.5 per cent to sell at $0.3315, Bitcoin (BTC), waned by 0.2 per cent to $94,154.43, and Binance Coin (BNB) went south by 0.1 per cent to $693.30.
On the flip side, Ripple (XRP) jumped by 1.5 per cent to settle at $2.34, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) sold flat at $1.00 each.
By Dipo Olowookere
Profit-takers took control of Customs Street on Friday, plunging it by 0.08 per cent at the close of trading activities.
The sell-offs were across all the key sectors of the Nigerian Exchange (NGX) Limited on last trading session of the week.
The insurance space went down by 1.53 per cent, the banking index depreciated by 0.41 per cent, the consumer goods sector weakened by 0.16 per cent, and the energy counter slumped by 0.08 per cent, while the industrial goods sector closed flat.
At the close of business, the All-Share Index (ASI) tumbled by 79.68 points to 105,451.06 points from 105,530.74 points and the market capitalisation retreated by N48 billion to N64.303 trillion from N64.351 trillion.
Yesterday, investors traded 1.5 billion shares worth N19.4 billion in 12,877 deals compared with the 489.5 million shares worth N13.1 billion transacted in 13,010 deals in the preceding day, indicating a decline in the number of deals by 1.02 deals and a rise in the trading volume and value by 203.14 per cent and 48.09 per cent, respectively.
Wema Bank was the busiest stock with 976.2 million units valued at N9.8 billion, Tantalizers traded 53.0 million units worth 129.6 million, Universal Insurance sold 34.8 million units for N26.8 million, Access Holdings exchanged 33.9 million units valued at N843.8 million, and Nigerian Breweries traded 27.3 million units worth N873.3 million.
The heaviest loss was suffered by Sunu Assurances with a decline of 9.99 per cent to trade at N7.30, Eunisell shed 9.96 per cent to N17.35, SAHCO crumbled by 9.87 per cent to N30.15, DAAR Communications plunged by 9.28 per cent to 88 Kobo, and Sovereign Trust Insurance went down by 7.04 per cent to N1.32.
On the flip side, C&I Leasing gained 10.00 per cent to close at N4.51, Honeywell Flour appreciated by 9.99 per cent to N10.02, Trans Nationwide Express jumped by 9.89 per cent to N2.00, RT Briscoe rose by 9.83 per cent to N2.57, and Secure Electronic Technology grew by 9.46 per cent to 81 Kobo.
Business Post reports that the bourse ended with 33 price gainers and 25 price losers, indicating a positive market breadth index and strong investor sentiment.
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