Heavy trades at NSE jack value

A block sale of 3.171 billion shares of Dangote Flour plc , worth N30.1 billion jacked the value of transactions at the Nigeria Stock Exchange today to N32.48 billion. There was also a block sale of 222.9 million shares of Livestock Feeds Plc, worth N397million, outstripping, trades on GTB shares, the highest in the financial services sector, at N380.7 million.

In all 3.64 billion shares were traded in 4,733 deals on the Nigerian Stock Exchange on Thursday.

This was in contrast to the 326.07 million shares valued at N2.4 billion traded in 5,302 deals on Wednesday.

The block purchase of Dangote Flour was expectedly made by South African Tiger Brands Ltd, which has the approval of the Nigerian authorities to purchase a majority stake in Dangote Flour Mills PLC.

Tiger Brands Ltd will acquire just over 63% of Dangote Flour Mills PLC for USD 181.98 million, while Dangote Industries Limited will retain a 10 per cent stake in Dangote Flour Mills PLC after the purchase and keep Mr. Aliko Dangote as Chairman of Dangote Flour Mills PLC.

As a result of the high volume activities on some shares, the All-Share Index closed higher by 261 points or 0.99 per cent to close at 26,448.61 from 26,187.61 recorded on Wednesday.

Similarly, the market capitalisation, which opened at N8.338 trillion, grew by N83 billion or 0.99 per cent to close at N8.421 trillion.

NewGold topped the gainers’ chart with a gain of N5 to close at N2, 729 per unit.

Julius Berger trailed with a gain of N1.37 to close at N28.87 per share, while Cadbury grew by N1.25 to close at N26.26 per share.

PZ Cusson appreciated by N1 to close at N25 per share, while Nigerian Breweries rose by 85k to close at N139.05 per share.

On the other hand, Dangote Cement led the losers’ chart with a loss of 53k to close at N118.50 per share.

OkomuOil followed with a loss of 51k to close at N36.50 per share, while Arbico shed 46k to close at N8.93 per share.

Presco lost 29k to close at N15.28 per share, while Custody Insurance dipped by 12k to close at N1.38 per share. (NAN)

Meanwhile at the end of September, investors on the Nigerian Stock Exchange (NSE) gained 9.73 per cent, up from 1.77 per cent in August.

Statistics from the NSE for the period under review showed that the All-Share Index closed higher at 26,011.64 from the 23,704.34 achieved in August.

The market capitalisation also appreciated by N737 billion to close at N8.282 trillion against N135 billion growth in August to close at N7.545 trillion.

Investors exchanged 10.1 billion shares worth N68.5 billion in 94,569 deals in September.

This was against 6.1 billion shares valued at N48.8 billion exchanged in 88,094 deals in August.

Some stakeholders attributed the market gains in September to the commencement of market making, introduction of securities lending, short selling and improved fundamental of quoted companies.

Alhaji Rasheed Yussuf, a former President of Association of Stock broking Houses of Nigeria, said that the market growth was as a result of positive financial returns of some companies.

He also said that this was an indication of the return of investor confidence in the market.

Yussuf said that the presence of market markers had provided more liquidity to the market.

The former president said that it was also the consensus that the confidence level across frontier markets contributed to the growth in September.

He said that the growth was also as a result of increased activities of foreign investors and impressive quarterly results released during the period under review.

Yussuf called on the Federal Government, particularly the market regulators, to embark on sensitisation programme to restore the confidence of local investors.

Malam Garba Kurfi, Managing Director of APT Securities and Funds Ltd., said that the increase in new funds and market sentiments favoured the market.

Kurfi said that the trend would likely continue with the expectation of impressive third quarter results by some companies.

He said that local investors should be encouraged to come back to the market, stressing that the dominance of foreign investors was not good.

Kurfi said that many investors, who lost billions of naira during the market crash, still shunned the market.

Mr Eugene Ezenwa, the Managing Director of Pac Securities Ltd., urged the Federal Government to address the issue brokers’ debts promptly.

He said that quick resolution of the problem would encourage the stockbrokers to be active again in the market and also improve liquidity.