Wednesday, October 5Inside Business Africa

Stock market ends November bullish as index

Exchange migrates four companies to growth board
Following gains recorded by most blue-chip stocks, the equity market ended trading for the month of November, bullish, as the All-Share Index (ASI) appreciated by N82 billion.

The ASI gained 156.63 absolute points, or 0.45 per cent to close at 35,042.14 points. Similarly, the market capitalisation also appreciated by N82 billion to close at N18.310 trillion.

Yesterday’s uptrend was driven by price appreciation in medium and large capital stocks, including Airtel Africa, MTN Nigeria Communications (MTNN), Aiico Insurance, and FCMB Group.

Analysts at United Capital Plc predicted mixed performance with a bearish bias in the equity market, as investors book profits and hunt for bargains.

However, sentiment, as measured by market breadth, was negative, as 17 stocks gained, relative to 29 losers.

Aiico Insurance, and Airtel Africa recorded the highest price gain of 10 per cent each to close at N1.10 and N588.50, respectively, and Tripple Gee & Company followed with 9.09 per cent to close at 60 kobo, per share.

Japaul Oil & Maritime Services rose 8.33 per cent to close at 26 kobo, while Union Diagnostic & Clinical Services and Unity Bank advanced eight per cent each, to close at 27 kobo and 81 kobo per share, respectively.

On the other hand, Cutix, and Northern Nigeria Flour Mills (NNFM) led the losers’ chart by 10 per cent each, to close at N1.53 and N6.93, respectively, while Fidson Healthcare followed with 9.87 per cent to close at N4.93, per share.

Neimeth International Pharmaceuticals lost 9.63 per cent to close at N2.44, and Learn Africa shed 9.57 per cent to close at N1.04 per share.

Total volume traded advanced by 118.38 per cent to 415.531 million shares worth N4.898 billion, and traded in 5,267 deals.

Transactions in the shares of Multiverse Mining and Exploration topped the activity chart with 84.009 million shares worth N16.802 million.

Zenith Bank followed with 47.022 million shares worth N1.134 billion, while Transnational Corporation of Nigeria (Transcorp) traded 34.072 million shares valued at N34.291 million.

Access Bank traded 29.904 million shares at N256.045 million, and Mutual Benefits Assurance transacted 21.567 million shares worth N4.660 million.

Meanwhile, the NSE announced the migration of Chellarams Plc, Living Trust Mortgage Plc, McNichols Plc, and The Initiates Plc from the Alternative Securities Market (ASeM) to the growth board, and the launch of the Associated Growth Board Index yesterday.

According to the Exchange, the migration followed the receipt of applications from the four companies requesting to be migrated from ASeM, and consequent screening and approval by the National Council of the Exchange.

The NSE Growth Board was launched to assist Small and Medium Scale Enterprises (SMEs) and growth-oriented companies looking to raise capital and promote liquidity in the trading of their shares.

It offers relaxed entry criteria with less-stringent listing requirements making it easier to attract capital flows along with reduced pre and post listing obligations.

The Chief Executive Officer, NSE, Oscar N. Onyema, said: “This migration affirms the notable efforts of the four companies to meet corporate governance standards and underpins the robustness of our market.

“We congratulate and are pleased to migrate Chellarams Plc, Living Trust Mortgage Plc, McNichols Plc, and The Initiates Plc to the Growth Board where they will have access to a suite of value added services that will give them a competitive edge beyond access to capital.

“We believe that the inclusion of these companies on the All Share Index and the Growth Board Index of the NSE will provide increased visibility that will attract global investors.”

Recall that the NSE Growth Board was launched on January 29, to encourage Start Ups, SMEs and the companies in the Fintech industry with high growth potential to seize the opportunity of raising long-term capital and promote liquidity in the trading of their shares.

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