2020 is here. That doesn’t mean we cannot look back to see some unique trends that shaped the market last year.
-66.03%
International Breweries shed 66 percent in the year and was the worst-performing stock.
-14.6%
The stock market declined by nearly 15 percent in 2019 extending a decline that started in 2018. Nigeria’s bourse is one of the worst-performing among emerging and frontier markets.
-2.33%
The biggest daily decline in the market last year was 2.33 percent on January 9 2019.
1
Only one tier-one lender closed the year in positive region. Access Bank which concluded its merger with Diamond Bank in the year gained 43.38 percent making it the only big lender that returned capital gain to investors in 2019.
2
Two Telcos joined Lagos’ bourse in the year; MTN and Airtel both listed on the stock exchange although MTN Nigeria in May listed by Introduction while Airtel Africa in July had an Initial Public Offering (IPO).
3
According to information in the NSE’s X-Compliance, M&A announced in 2019 include the followings:
The merger between Access Bank Plc and Diamond Bank Plc.
The merger between the Cement Company of Northern Nigeria Plc and Obu Cement.
Ellah Lakes acquisition of shares in Telluria Limited.
3.68%
The stock market’s biggest daily gain last year was 3.68 percent on May 28, 2019, a day before President Muhammadu Buhari’s inauguration for a second term.
7
Seven Rights Issue took place in the year and they include:
UACN Property Development Company Plc:
Application for the Proposed Rights Issue of 15,961,574,145 Ordinary Shares of 50 Kobo Each at N1.00 Per Share on the Basis of Forty Three (43) New Ordinary Shares for Every Seven (7) Ordinary Shares held as at 30 September 2019
Red Star Express Plc
Proposed Rights Issue of 336,855,291 Ordinary Shares of 50 Kobo Each at N4.00 per Share on the Basis of Four (4) New Ordinary Share for Every Seven (7) Shares held as at 21 August 2019
Sovereign Trust Insurance Plc
Rights Issue of 4,170,411,648 ordinary shares of N0.50 each at N0.50 per share on the basis of 1 new ordinary share for every 2 ordinary shares held as at 15 January 2019
Wapic Insurance Plc
Application for approval of a Rights Issue of 15,613,194,623 ordinary shares of 50 Kobo each at N0.38 Kobo per share on the basis of seven (7) new ordinary shares for every six (6) ordinary shares held as at the close of business on 19 September 2019
C & I Leasing Plc
Proposed Rights Issue of 539,003,333 ordinary shares of N0.50 each at N6 per share on the basis of 4 new ordinary shares for every 3 ordinary shares held as at 4 September 2019.
Fidson Healthcare Plc
Rights Issue of 750,000,000 ordinary shares of N0.50 each at N4.00 per share on the basis of 1 new ordinary shares for every 2 ordinary shares held as at 28 December 2018
International Breweries Plc
on 14 November 2019 Proposed Rights Issue Of 18,266,206,614 Ordinary Shares Of 0.50 Kobo Each At N9.00 Per Share On The Basis Of 17 New Ordinary Share For Every 8 Ordinary Shares Held
8
The market’s best run was eight trading days which started from February 1 through February 12. This was in the build-up to February 16, the initial general elections date.
9
The longest losing streak was nine trading sessions from September 30 to October 11.
224.82%
Dangote Flour’s share price rose the most in the year. The stock rose by more than 200 percent to N22.25 per share. Dangote Flour has delisted following its acquisition by Olam’s Crown Flour Mills.
Olufikayo Owoeye & Segun Adams
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