The market
capitalisation of equities at the Nigerian Stock Exchange, on Monday,
rebounded to N8.086 trillion as investors scramble for Transcorp and
banks’ stocks.
The market
capitalisation had plunged middle of last month from the N8 trillion
region following low confidence in the market as a result of political
uncertainty.
However, the
Exchange’s capitalisation of the 194 First-Tier equities closed
yesterday at N8.086 trillion after opening the day at N7.999 trillion,
reflecting N87 billion gains or 1.09 per cent appreciation.
Transcorp’s shares
were the most traded stock on Monday with over 223.245 million volume of
shares traded, while Zenith Bank and Guaranty Bank followed with 25.612
million and 22.907 million volume of shares respectively.
Stockbrokers at GTI
Capital, a stockbroking firm, said the continuous rebound in the market
could be attributed to “a relative peaceful political terrain.” They
said that reports from the Stock Exchange revealed a continual modest
rally on indicators on the heel of recent successful elections.
“Recall that there
was heightened concerned on the stability of the country prior to the
aforementioned exercise. This led to a presumption that investors
(foreign and core local) were withholding their cash for a better lead
after the outcome of the election.
“Signals are strong
that the remaining elections may go the way of last Saturday. This is,
therefore, deduced to have created positive activities on the floor of
Nigerian bourse,” they said.
Companies’ results
The Exchange on
Monday marked down the price of Nestle Nigeria stock for a dividend of
N10.60 per share and a bonus of one for five as proposed by the
company’s management.
United Bank for
Africa (UBA) yesterday presented to the NSE its audited financial result
for the year ended December 31, 2010. The bank recorded a profit after
tax of N598 million in 2010 as against the profit after tax of N2.375
billion posted in the previous year, representing a decline of 75 per
cent.
UBA also recorded a
24.14 per cent decline in its gross earnings during the period in view,
from N244.110 billion in 2009 to N185.186 billion last year.
Meanwhile, the
company’s board of directors has proposed a dividend of five kobo and
bonus of one for every four units of shares owned by its shareholders.
The stock price of UBA appreciated yesterday by 1.49 per cent, from
N8.05 per share to N8.17 after the announcement.
The management of
the Nigerian Breweries (NB), on Monday, officially notified the Exchange
of its discussion with Heineken NV regarding the potential acquisition
of three of the five breweries recently acquired from the Sona group.
“The discussions
should lead to the transfer of majority equity interests in Sona Systems
Associates Business Management Limited (which owns breweries in Otta
and Kaduna) and Life Breweries Company Limited, Onitsha, to Nigerian
Breweries,” the company said.
However, the NB said
the proposed acquisition is subject to the approval of its Board and
Shareholders, as well as relevant regulatory authorities.
