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Tag: NGX

  • Equity market rebounds by 0.99%, market capitalisation gains N401bn

    Equity market rebounds by 0.99%, market capitalisation gains N401bn

    The nation’s bourse on Thursday rebounded with unprecedented profit, as the market capitalisation gained N401 billion or 0.99 per cent to close at N40.776 trillion, as against N40.375 trillion recorded on Wednesday.

    The All-Share Index (ASI) also grew by 733.94 or 0.99 per cent to settle at 74,502.58  points, as against 72,404.9 recorded previously.

    As a result, the Year-to-d Date (YTD) return rose to 43.94 per cent.

    The improved performance was driven by increase in the sale of stocks of Axa Mansard Insurance, Multiverse and Julius Berger.

    Access Holdings led the the traders chart in volume by N23.42 million, while MTN Nigeria led in value by N792.51 billion units.

    On the gainers chart, Ikeja Hotel led in percentage terms of 10 per cent to close at N5.50k, followed by Multiverse which closed by 9.96 per cent at N16.89 and Julius Berger which closed by 9.94 per cent at N39.80.

    Industrial and Medical Gas(IMG)gained N12.25 at 9.87 per cent, while Inifinity closed at N5.47 by 9.84 per cent.

    On the loosers chart, UACN led in percentage terms by 10 per cent to close at N12.15 per share, while Johnholt followed to close by 9.73 per cent at N2.32 and DeepCap closed at 9.38 per cent at 58k per share.

    RTBrisco lost 8.96 per cent to close at 61k, while UCAP shed 7.53 per cent to close at N22.10.

  • Investors’ worth lifted by N85 billion on NGX

    Investors’ worth lifted by N85 billion on NGX

    Increased buying interest in the shares of some banks, especially Zenith Bank and Access Holdings lifted investors’ worth on the Nigerian Exchange Ltd. (NGX) by N85 billion.

    Specifically, the market capitalisation closed at N39.649 trillion as against N39.564 trillion recorded on Wednesday, representing 0.22 per cent increase.

    Also, the All-Share Index(ASI) increased by 156.04 points or 0.22 per cent to close at 72,455.83 from 72,299.79 recorded on Tuesday.

    Consequently, the Year-to-Date(YtD) rose to 41.37 per cent.

    The upturn was also driven by other banking stocks  such as First City Monumental Bank(FCMB) United Bank of Africa(UBA) and Fidelity Bank among others.

    Market breadth closed positive with 27 gainers outnumbering 26 laggards.

    The gainers’ table was led by Infinity in percentage terms of 9.83 per cent to close at N2.57 per share, while Johnholt followed with a gain of 9.73 per cent to close at N2.03.

    Ikeja Hotel grew by 9.20 per cent to close at N4.75 per share, while Daar Communications rose by 7.69 per cent to close at N0.42 and E-Tranzact increased by 7.69 per cent to close at N7 per share.

    On the loosers chart, RTBriscoe led in percentage terms by 9.84 per cent to close at 55k per share, while UPDCreit followed by 9.78 per cent to close at N4.15 per share.

    Mutual Benefits Assurance lost 9.43 per cent to close at 48k, Omatek shed 7.79 per cent to close at 71k, while Sovereign Trust Insurance declined by 7.69 per cent to close at 36k per share.

    Also, the total volume traded declined by 10 per cent to 446.58 million units valued at N7.266 billion and exchanged in 6, 845 deals.

    Transactions in the shares of Access Holdings topped the activity chart with 77.26 million shares valued at N1.76 billion.

    FCMB followed with 45.24 million shares worth N318.61 million, while Zenith Bank traded 37.29 million shares valued at N1.38 billion.

    UBA traded 29.3 million shares valued at N724.07 million, while Fidelity Bank  transacted 27.51 million shares worth N257.28 million.

  • NGX: Market capitalisation plummets after delisting of Union Bank

    NGX: Market capitalisation plummets after delisting of Union Bank

    The domestic equities market kicked off the week with a growth 0.17 per cent due to bargain hunting in Guinness Nigeria and 31 others.

    Specifically, the All-Share Index (ASI) rose by 123.33 points or 0.17 per cent to close at 71,353.81 against 71,230.48 achieved on Friday.

    Consequently, the year-to-date (YTD) return rose to 39.22 per cent.

    However, the overall market capitalisation, which opened at N39.172 trillion shed N132 billion or 0.34 per cent to close at N39.040 trillion.

    The drop in the market capitalisation was due to the delisting of the shares of Union Bank of Nigeria from the narion’s stock market.

    Titan Trust Bank Ltd., the core investor in Union Bank, in May announced plans to acquire the shares of minority shareholders of the bank.

    It announced an increase in the price at which the stakes of minority shareholders would be acquired from N7 per unit to N7.70.

    In 2022, Titan Trust Bank Ltd. bought the controlling stake in Union Bank, which is the second-oldest bank in Nigeria.

    An analysis of the price movement chart showed that John Holt, Tantalizer and FBN Holdings led the gainers’ table in percentage terms with 10 per cent each to close at N1.87, 55k and N22 per share, respectively.

    Multiverse followed with 9.98 per cent to close at N6.39, while SUNU Assurance gained 9.73 per cent to close at N1.24 per share.

    Conversely, ETranzact topped the losers’ table in percentage terms, declining by 9.46 per cent to close at N6.70 per share.

    Unity Bank trailed with 9.24 per cent to close at N1.67 per share, Omatek lost 9.09 per cent to close at 90k per share.

    RTBriscoe lost 8.96 per cent to close at 61k, while Guinea Insurance declined by 5.88 per cent to close at 32k per share.

    Universal insurance led the activity chart with an exchange of 161.09 million shares valued at N46.83 million.

    AccessCorp followed with an account of 81.51 million shares valued at N1.47 billion, while Unity Bank traded 67.65 million shares worth N116.87 million.

    Veritas Kapital exchanged 45.91 million shares valued at N17.76 million, while Transcorp accounted for 44.47 million shares valued at N294.09 million.

    The volume of trades increased by 163.90 million, representing 28.12 per cent as investors traded 746.67 million valued at N5.945 billion in 9,267 deals.

    This was against 582.77 million shares worth N4.27 billion exchanged in 6,874 deals on Friday.

  • BREAKING: Union Bank delists from NGX 52 years after

    BREAKING: Union Bank delists from NGX 52 years after

    Union Bank of Nigeria Plc would be delisting from the Nigerian Exchange Group (NGX), 52 years after listing, TheNewsGuru.com (TNG) reports.

    Union Bank delisting from the NGX is contained in a corporate filing published on the website of the Nigerian stock exchange.

    As a result, trading in the shares of the bank has been suspended in preparation for the delisting of the securities of the bank in line with the approval obtained from Nigerian Exchange Limited.

    According to a statement by Godstime Iwenekhai, Head, Listings Regulation Department of NGX, trading in the shares of Union Bank was suspended today, Tuesday, 14 November 2023.

    “Trading License Holders and the investing public are hereby notified that trading in the shares of Union Bank of Nigeria Plc (the Bank) was suspended today, Tuesday, 14 November 2023.

    “The suspension is necessary to prevent trading in the shares of the Bank in preparation for the delisting of the securities of the Bank in line with the approval obtained from Nigerian Exchange Limited,” the statement by Iwenekhai reads.

    Meanwhile, the bank has announced it is considering a payout of N7.70 per share to its shareholders in its scheme of consideration.

    According to a filing, signed by Somuyiwa Sonubi, Union Bank’s Company Secretary, the Registrars will send the Scheme Consideration to all the Bank’s shareholders.

    It noted that this will follow the decision that will be made during the Court-Ordered Meeting as well as approval given by the Federal High Court.

    TNG recalls Union Bank had in 2022 announced completion of sale of majority stake to Titan Trust Bank. Following completion of the sale, Titan Trust Bank retired top management of Union Bank.

  • Why foreign investors should turn to Nigeria – VFD GMD

    Why foreign investors should turn to Nigeria – VFD GMD

    Mr Nonso Okpala, the Group Managing Director of VFD Group, an investment firm that focuses in the real sector, says the company plans to source for more capital beyond the shores of Nigeria.

    Okpala disclosed this in an interview on Sunday in Lagos, following the listing of VFD Group on the Main Board of Nigerian Exchange Ltd. (NGX) on October 6.

    According to him, the listing of the group on the NGX will provide the platform for the firm to achieve the target of sourcing for funding beyond Nigeria.

    Okpala said that the company’s current position on the exchange would also help it to build the requisite trends and reputation needed for such target.

    “It will assist the firm to enjoy more visibility, establish elaborate track-records and get more attention from the public investors,” he added.

    Recall that the listing of VFD Group’s shares added more than N45 billion to the market capitalisation of NGX, further boosting liquidity in the Nigerian capital market and providing opportunities for wealth creation.

    The management of VFD Group Plc had said it projected N300.61 billion in total assets by 2025 and N5.83 billion dividend payout to shareholders in the same period.

    Recalling how the company came into existence 14 years ago with 35 friends who came together as shareholders, Okpala said that the pioneers knew from the inception that the company would be listed on the stock exchange in no time.

    He said the group also recognises the positive impact of technology on business operations and believes in utilising these advantages to foster the growth of robust companies.

    According to him, access to capital is also a significant consideration for VFD Group which strives to capitalise on such opportunities.

    Okpala noted that the company’s strategic approach, commitment to innovation and alignment with young talents had made it an attractive investment option in Nigeria’s emerging market.

    He highlighted the importance of acquiring long-term funds for developmental purposes such as infrastructure building and nurturing companies from inception to maturity.

    These funds, he said, are considered relatively cheap and provide opportunities for growth and profitability, while emphasising the group’s track-record, skill sets, leadership and industry knowledge, making it capable of effectively utilising such funds.

    Okpala said the management of the company saw opportunities in the new ways of doing things, hence its listing on the exchange at a period that the Federal Government embarked on liberalisation of the currency and fuel subsidy removal which were considered as economic challenges.

    He added that the company was leveraging these changes and the potential of technology to build stronger companies.

    “We are not talking about bank debt, short-term loans, hot money, but long-term funds that are relatively cheap and can be directed towards developmental roles, be it in infrastructure building or a company from inception to maturity.

    “Those are the kind of funds that we want. We believe we have the track-records, skill sets, leadership and industry know-how to run such companies to profitability and access to long-term capital suited for developmental growth. This is what we thought we needed to address.

    “So, there is no better time to take the step than to do it now.

    “We have self-inflicted adherence to governance more that most companies. We have strong leadership levels, bench of very smart and strong proven leaders in our group as well as young professionals,” Okpala added.

    He, however, noted that the opportunities from such expansion would be subject to the kind of funding accessible.

    The chief executive officer said that with 14 years of existence, the group had remained bullish with market infrastructure through the use of technology and fintech, due to Nigeria’s population and the difficulties of navigating the business environments

    “From a logistical stand of point, technology is important and you can understand why someone will embrace digital banking if the option is for him to go through traffic.

    “So, we think from a lifestyle perspective; fintech and technology remain key areas for us to keep exploring.

    “Our model is that one can easily replicate whatever you do successfully in Nigeria and in many African countries. That’s why we are exploring the model we have in Ghana.

    “We are also bullish in real sector, hospitality and lifestyles.”

    He also said that one of the clear-point by the group was the plan to upgrade one of its investee companies, Abbey Mortagage, from a mortgage to commercial bank.

    Okpala explained that another step to be taken by VFG Group is to pay closer attention to the insurance sector, saying that it complements the other investments by the company, therefore leading to an ecosystem needed in place.

    “From a general standpoint, we have talked about an ecosystem being central to our plan as VFD Group, and that ecosystem is based on the fact that we are exposed to different companies which have cross-selling opportunities and collaborative potentials.

    Okpala, who said that having an ease of doing business remained imperative for the economy to continue to prosper, noted that conflict resolution was equally necessary.

    He said that the ease of resolving conflicts with respect to rule of law is important to any business and transactions.

    “We have a lending background as our core. We also have interest in lending space, mortgage and Vbank.

    “One of the things we have realised is that it is always difficult to close it on a transaction, especially when you give out to debt. It is also, by extention, difficult when there is a contract failure,” he said.

    On sustainable dividend policy and attracting more investors, the group managing director said the most central core value of the VDF is to always be empathetic to investors.

    “We treat investors the way we want to be treated. Our destiny is tied to the destiny of other investors, be it in retails, high-networth of individuals or institutional investors.

    The objective is to continue to work hard to make some sufficient funds and distribute returns and investment forward in the interest of the company.

    To ensure that corporate governance is adhered in managing the group, Okpala said a succession plan had been put in place since fives years ago.

  • Stocks: Investors gain N510bn as market hits 15-year high

    Stocks: Investors gain N510bn as market hits 15-year high

    The Nigerian capital market on Tuesday gained by N510 billion, closing at N39.69 trillion from N36.21 trillion recorded on Monday.

    Consequently, the market capitalisation increased by 0.51 per cent, making the market  to hit a 15-year high.

    Also, the All-Share Index (ASI) of Nigerian Exchange Ltd. (NGX) rose by 0.51 per cent to 66,490.34 points from 66,151.38 on Monday, surpassing the highest value of 66,371.20 recorded on the Exchange on March 5, 2008.

    This performance was in part, attributed to a surge in banking stocks as investors strategically positioned themselves, taking advantage of the recent record earnings posted by banks.

    Among the various sectoral indices, the NGX Banking Index experienced the most significant daily gain, rising by 1.63 per cent.

    Following closely were the NGX Consumer Goods Index, with a 0.99 per cent increase, and the NGX Industrial Index, which saw a 0.21 per cent uptick.

    Conversely, the NGX Oil and Gas Index dipped by 0.09 per cent, and the NGX Insurance Index recorded a substantial decline of 1.56 per cent, both attributable to investors reallocating their funds.

    An analysis of the day’s market activities revealed a substantial increase in trade turnover compared to the previous session, with transaction values surging by an impressive 79.18 per cent.

    Consequently, the total volume of stocks traded reached 436.95 million units, valued at N7.02 billion, across 7,933 deals.

    This marked a significant uptick from the 311.12 million units valued at N3.92 billion traded in 7,193 deals on Monday.

    FBN Holdings topped the activity chart with 55.15 million units valued at N911.21 million.

    Following closely was Japaul Gold with the sale of 33.11 million units worth N29.92 million, while UBA transacted 30.17 million units valued at N41.21 million.

    Market breadth closed positive, with 35 stocks appreciating in value while 32 stocks depreciated.

    Champion Breweries led the pack of gainers with a remarkable 10 per cent increase in stock value.

    Conversely, Linkage Assurance led the group of 32 declining securities, with a 10 per ent decrease in stock value.

    Reacting to the performance of the market, market experts attributed this strong performance to a combination of factors.

    The factors  include investor sentiment influenced by macroeconomic developments such as the formation and swearing-in of the economic cabinet by President Bola Tinubu.

    Additionally, movements in yields within the fixed income market played a role in shaping market dynamics.

    They emphasised the importance of strategically positioning investments in fundamentally strong stocks, given the ongoing challenges posed by the weak macroeconomic environment on corporate earnings.

  • Full year 2022: UBA delivers strong results as profit hits N201bn

    Full year 2022: UBA delivers strong results as profit hits N201bn

    Africa’s Global Bank, United Bank for Africa (UBA) Plc, has released its audited financial results for the full year ended December 31, 2022, showing impressive performance across major indices.

    The 2022 financials, filed by the Bank at Nigerian Exchange Limited (NGx) on Thursday, showed that gross earnings rose significantly to N853.2billion from N660.2billion recorded at the end of the 2021 financial year, representing a strong 29.2 percent growth.

    Total assets rose remarkably by 27.2 percent, crossing the N10trillion mark, to close at N10.9trillion in December 2022; up from N8.5trillion in 2021. This is a very significant achievement and milestone in the history of the powerhouse financial institution.

    Despite the highly challenging global economic and business environment, UBA recorded a laudable profit before tax, with a 31.2 percent growth, to close the year under review at N200.8 billion, rising from N153.01 billion recorded at the end of the 2021 financial year; while profit after tax (PAT) grew by 43.5 percent to N170.2billion in 2022, compared to N118.7 billion recorded the year before. Consequently, UBA Group Shareholders’ Funds rose to N922.1billion, as at December 2022, achieving an impressive growth by 14.6%, compared to prior year.

    In the year under consideration, UBA Group cost-to-income ratio dropped to 59.2%, from over 60% in prior year, pointing at the Group’s improving efficiency.

    In its usual tradition of rewarding shareholders, the Bank proposed a final dividend of 90 kobo for every ordinary share of 50 kobo, for the financial year ended December 31, 2022. The final dividend which is subject to the ratification of the shareholders during its upcoming Annual General Meeting (AGM) will bring the total dividend for the year to N1.10 per share, as the Bank had paid an interim dividend of 20 kobo, based on its audited 2022 half year results.

    Also worthy of note, UBA recorded a 21.4 percent growth in loans to customers, moving up to N3.4 trillion in 2022, whilst customer deposits improved by 22.9 percent to N7.8 trillion, compared to N6.4trillion recorded in the corresponding period of 2021, reflecting increased customer confidence, enhanced customer experience, successes from the ongoing business transformation programme and the deepening of its retail banking franchise.

    Commenting on the result, the Group Managing Director/CEO, Oliver Alawuba, said notwithstanding the tight and challenging operating environment, UBA continues to deliver significant performance.

    He said, “The Group delivered record headline earnings (+29.2%) and profitability (+31.2%) amid significant headwinds in markets where we are present and a heightened global risk environment. Our record earnings, growth, and robust capital levels supported higher returns for the shareholders. The Group is on course to achieve its strategic goals, and we are confident we will deliver our targets.

    “We have navigated unprecedented macroeconomic headwinds and made significant gains in our diversification strategy and Customer 1st philosophy as we build resilience in our operations across Africa and the Rest of the World to support the mission of providing superior value to our stakeholders. The Group’s Profit after Tax increased by 43.5% to N170.3billion, with underlying growth in our key income lines and moderation in our cost of fund, resulting in robust growth of 14.6% in the Group’s Shareholders’ Funds and stronger liquidity. We continued to sharpen our risk management structure and practices to align with evolving risks”, Alawuba said.

    On the outlook for the year 2023, Alawuba said, “we are strategically positioned to increase our market share in our countries of presence, with expansion to Dubai, United Arab Emirates and strong growth of our digital banking and payment businesses, which is pivotal to the evolving cashless economy in Nigeria. We strive to deliver increasingly attractive returns to our shareholders and continued positive impact in the geographies and economies in which we operate”.

    UBA’s Executive Director, Finance and Risk Management, Ugo Nwaghodoh, said going by this recent performance, UBA remains on strong footing and is comfortably positioned to take on more opportunities in Nigeria, Africa and beyond.

    “UBA Group’s 2022FY performance was buoyed by strong balance sheet growth and improvement in Net interest margin, as Group’s Total Assets and customer deposits grew 27.2% and 22.9% respectively, whilst NIM grew to 5.61% from 5.57%. The continuous rejigging of the Groups’ risk management approach resulted in moderation of the NPL ratio, from 3.6% to 3.1%. The Group continued to rely on lower cost funds, further reducing its cost funds to 2.1%.”

    “We are delighted with the strategic progress we have made in FY22 riding on our customers’ trust, the dedication of our people, and the support of our wider partners and stakeholders. The bank remains committed to its business development drive, prudent risk management practices, and we are optimistic to deliver best value for our stakeholders in the days ahead,” he noted.

    United Bank for Africa Plc is a leading Pan-African financial institution, offering banking services to more than twenty-five million customers, across over 1,000 business offices and customer touch points, in 20 African countries and across 4 continents.

    With presence in the United States of America, the United Kingdom and France and more recently the United Arab Emirates, UBA is connecting people and businesses across Africa through retail; commercial and corporate banking; innovative cross-border payments and remittances; trade finance and ancillary banking services.