The Nigerian Stock Exchange has said it has won approval from members to become a listed company and has appointed a board of directors. It would now re-register as a profit-making entity owned by shareholders called the Nigerian Exchange Group Plc with a share capital of N1.25 billion, from being a not-for-profit entity. Meanwhile the board of directors of 11 Plc (formerly Mobil Oil Nigeria Plc) has approved the voluntary delisting of the multinational oil marketing from the Nigerian Stock Exchange (NSE) subject to the approval of the shareholders. This was disclosed in a notice sent by the company to the Nigerian Stock Exchange and signed by the Company Secretary Chris-Olumayowa Maseko. The decision was reached at the Board meeting, which was held on February 27, 2019.
During the meeting, some proposals were considered and approved by the directors which include among others, 11 Plc to voluntarily delist from the NSE. The proposal is to be considered for shareholders’ approval at the next Annual General Meeting slated for June 3, 2020. In line with NSE rules, the shareholders of the company will have a 90-day window on voluntary delisting to decide on the exit plan on offer to shareholders. 11 PLC also proposed to restructure the company’s business by transferring its real estate unit to 11 Hospitality Limited, the new subsidiary of the company, for optimum return on investment whilst 11 Plc will concentrate more on the downstream sector of its business. The board also appointed Senator Daniel O. Aluko as an Independent Non-Executive Director with effect from February 27, 2020.
Trading at the Stock Market rebounded as bargain hunting in bellwethers dominated the stock market. Consequently, the All-Share Index climbed 1.7% to 26,255.11 points on the back of gains in MTNN (+4.6%), GUARANTY (+7.9%) and NESTLE (+6.2%). Consequently, the YTD loss moderated to -2.2% while investors gained ₦231.9bn as market capitalisation increased to ₦13.7tn. Activity level was mixed as volume traded climbed 19.3% to 387.9m units while value traded fell 15.8% to ₦5.1bn. The most actively traded stocks by volume were GUARANTY (83.1m units), ZENITH (54.5m units) and UBA (37.8m units) while GUARANTY (₦2.0bn), ZENITH (₦1.0bn) and NIGERIAN BREWERIES (₦533.7m) led by value.
Performance across sectors was mixed as 3 sectors recorded gains, 2 lost while 1 closed flat. The Banking index led gainers, up 8.0% following price appreciation in GUARANTY (+7.9%), ZENITH (+8.6%) and ACCESS (+9.7%). The AFR-ICT (+2.5%) and Consumer Goods (+2.0%) indices trailed, on the back of gains in MTNN (+4.6%), NESTLE (+6.2%) and PZ (+9.9%). On the flip side, the Industrial Goods and Insurance indices lost 4.3% and 1.6% respectively due to sell-offs in BUACEMENT (-7.4%), MANSARD (-8.9%) and LINKASSURE (-5.0%). Lastly, the Oil & Gas index was flat.
Investor sentiment as measured by market breadth (advance/decline ratio) rose to 0.7x from the 0.4x recorded in the previous trading session as 20 stocks advanced relative to the 28 that declined. The best performers were PZ (+9.9%), ACCESS (+9.7%) and FBNH (+9.6%) while ABCTRANS (-10.0%), DANGSUGAR (-10.0%) and OKOMUOIL (-9.7%) led the laggards. We expect continued bargain hunting in the near term, given relative attractiveness of the local bourse.
Market Statistics for Tuesday, 3rd March 2020
| Market Cap (N’bn) | 13,681.2 |
| Market Cap (US$’bn) | 38.0 |
| NSE All-Share Index | 26,255.11 |
| Daily Performance % | 1.7 |
| WTD Performance % | (2.1) |
| MTD Performance % | (2.1) |
| QTD Performance % | (2.2) |
| YTD Performance % | (2.2) |
| Daily Volume (Million) | 387.9 |
| Daily Value (N’bn) | 5.1 |
| Daily Value (US$’m) | 14.1 |
