Investors Stake N7.4 Billion on 693.2m Shares at Stock Market

Goddy Egene

Investors staked N7.444 billion on 693.188 million shares in 6,634 deals yesterday, as the market remained bullish. Although the volume and value of trading were lower than the previous day’s performance, the Nigerian Stock Exchange (NSE) All-Share Index rose by 2.92 per cent to hit 29,395.57. This performance brought the year-to-date growth of NSE ASI 6.4 per cent.

The shares of United Bank for Africa Plc continued to lead the activity for the third consecutive day. The stock traded 156 million shares, trailed by Zenith Bank Plc with 86.1 million, while Access Bank Plc recorded 82.1 million shares. In terms of value, Zenith Bank Plc led with N1.9 billion, followed by UBA with N1.1 billion. MTN Nigeria Communications Plc occupied the third place.

Sectorally, the NSE Industrial Goods Index was the only gainer with 8.0 per cent. Conversely, the NSE Banking Index led the losers with 0.4 per cent, trailed by the NSE Oil & Gas Index with 0.07 per cent, while the NSE Insurance Plc closed flat.

A total of 22 stocks appreciated led by Champion Breweries Plc and Sovereign Trust Insurance Plc with 10 per cent apiece. Presco Plc appreciated by 9.7 per cent, while WAPIC Insurance Plc went up by 8.5 per cent.

The insurance firm, which is currently in the market shopping for about N5.9 billion through a right issue, extended the issue to close today.

WAPIC is making a rights issue of 15,613,194,623 ordinary shares of 50 kobo each at N0.38 per share on the basis of seven new share ordinary shares for every six ordinary shares held.

The offer ought to have closed on December 31, 2019 but the company got approval of the Securities and Exchange Commission (SEC) for an extension till today. The shareholders of WAPIC Insurance Plc had last June approved that the authorised capital base be increased to N15 billion in the light of ongoing recapitalisation exercise in insurance industry.

According to the shareholders, the new capital base would ensure that the company continues to exist and waxing stronger after the recapitalisation exercise.

May & Baker Nigeria Plc chalked up 8.5 per cent, just as Livestock Feeds Plc and Consolidated Hallmark Insurance Plc garnered 8.0 per cent and 7.6 per cent respectively among others.

Conversely, Unity Bank Plc led the price losers with 10 per cent, followed by Union Dicon Diagnostic and Clinical Services Plc with 8.7 per cent. Cornerstone Insurance Plc and Meyer Plc shed 7.4 per cent in that order.