The equities market recorded a marginal growth last week as the Nigerian Stock Exchange (NSE) All-Share Index (ASI) rose by 0.03 per cent to close at 29,628.84, while market capitalisation ended at N15.262 trillion.
The marginal growth compares with 0.69 per cent rise of the previous week. However, the year-to-date gain rose to 10.4 per cent last week.
All other indices finished lower with the exception of NSE Premium, NSE Pension, NSE Insurance, NSE Oil/Gas, NSE Lotus ll and NSE Industrial Goods index which appreciated by 0.61 per cent, 0.65 per cent, 3.05 per cent, 2.54 per cent, 0.02 per cent, and 5.10 per cent respectively.
An analysis of the performances by sectors, the NSE Industrial Goods Index appreciated by 5.1 per cent to record the highest sectoral performance. The growth followed that investors’ interest in Dangote Cement Plc, BUA Cement Plc and Lafarge Africa Plc. Similarly, gains were recorded by the NSE Insurance Index which rose 3.0 per cent and NSE Oil & Gas Index that appreciated by 2.5 per cent. However, the NSE Consumer Goods Index fell 3.6 per cent, while the NSE Banking Index shed 2.6 per cent.
The renewed investors’ interest in Dangote Cement Plc last week was boosted by the approval of the company’s plan to buy back 10 per cent of its shares.
In line with its corporate strategy to improve its return on equity and shareholder value, the board of Dangote Cement Plc proposed the share buy-back programme that will allow for the purchase of 1.70 billion shares out of the 17.04 billion fully paid up ordinary shares of 50 kobo each.
The shareholders unanimously approved the proposal at an extra-ordinary general meeting (EGM) held in Lagos and commended the board and management, saying it would enhance their value in the company.
The founding National Coordinator of the Independent Shareholders Association, Sir. Sunny Nwosu said Nigerian shareholders would forever appreciate the share buy-back plan of the company especially at this time of the year.
“I think Alhaji Aliko Dangote is learning from Microsoft, where Bill Gates also buy back shares of Microsoft. I want to sincerely congratulate Aliko on this noble idea. In 2008, ISAN sponsored a seminar on share buy-back because of its value and importance. As shareholders, we have been clamouring for share-back for so many years and today Aliko Dangote has given us hope. This is very good as against the practice of share reconstruction that is being practiced by some Nigerian companies which never gave back anything positive to the shareholders. The share buy- back was practiced in Ghana with just few companies listed on its exchange . We are indeed very happy with this and we are also quite sure that with this that you have done today, you have proved yourself to be the best chairman of all the corporate companies in Nigeria. We will not disappoint you.We are very delighted because we know that this arrangement will lead to share price increase and more dividend for the shareholders,” he said.
Another shareholder, Alhaji Mohammed Audu described Dangote as a God-send and expressed hope that the money realised from the share buy-back by the shareholders will be used for investment purposes.
He said: “Aliko Dangote does not need this money. He is taking this decision because of the shareholders. The share buy-back will ensure that the value of our share will go up and we are also sure of getting better dividend. So, as you can see, all the shareholders here today voted unanimously in support of the motion. We voted for it and also thank Aliko Dangote for making us richer.”
Meanwhile, a total of 1.237 billion shares worth N22.762 billion in 21,156 deals were traded last week by investors on the floor of the exchange, in contrast to a total of 2.087 billion shares valued at N26.470 billion that exchanged hands the previous week in 24,262 deals. The Financial Services industry led the activity chart with 837.345 million shares valued at N10.511 billion traded in 12,041 deals, thus contributing 67.6 per cent and 46.2 per cent to the total equity turnover volume and value respectively.
The Industrial Goods followed with 154.540 million shares worth N2.998 billion in 2,862 deals. The third place was occupied by the ICT industry with a turnover of 52.709 million shares worth N1.262 billion in 709 deals.
Trading in the top three equities namely, Access Bank Plc, Zenith Bank Plc and Guaranty Trust Bank Plc accounted for 421.765 million shares worth N8.769 billion in 5,886 deals, contributing 34.1 per cent and 38.5 per cent to the total equity turnover volume and value respectively.
In terms of bonds, a total of 141 units valued at N520,511.70 were traded last week in six deals, compared with a total of 8,871 units valued at N36.909 million transacted the previous week in 20 deals.
The bond sector recorded total of 59,632 units of Federal Government Bonds valued at N71.501 million in 24 deals, compared with a total of 53,219 units valued at N58.147 million transacted two weeks ago in 16 deals
Top price gainers and losers
The price movement chart showed 32 price gainers higher than 21 equities in the previous week, while 28 equities depreciated in price, lower than 42 equities in the previous week. Law Union & Rock Insurance Plc led the price gainers with 38 per cent, trailed by Honeywell Flour Mills Plc with 14.5 per cent, trailed by NEM Insurance Plc with 12.2 per cent. Lafarge Africa Plc and Caverton Offshore Support Group Plc with 10.6 per cent. CAP Plc appreciated by 10 per cent, just as Beta Glass Plc chalked up 9.5 per cent.
Total Nigeria Plc gained 9.3 per cent while Cadbury Nigeria Plc and WAPIC Insurance Plc garnered 8.5 per cent and 5.7 per cent respectively.
Conversely, NCR Nigeria Plc led the losers with 18.2 per cent trailed by Eterna Plc with 12.5 per cent, just as Arbico Plc shedding 9.9 per cent.
Associated Bus Company Plc went down by 8.8 per cent, while Unity Bank Plc and Courtville Business Solutions Plc losing 8.7 per cent and 8.3 per cent in that order.
Other top price losers included: Champion Breweries Plc, NPF Microfinance Bank Plc (8.1 per cent each); Neimeth International Pharmaceuticals Plc (7.8 per cent) and Cornerstone Insurance Plc (6.9 per cent).