• Monday, June 24, 2024
businessday logo

BusinessDay

FBNH, Transcorp, others cause stock market’s first dip this week

Stock market extends rally by 0.53%

Nigeria’s equities market on Wednesday saw its first decline this week by 2.47percent or N883billion as investors took profit in stocks like FBN Holdings, Transcorp and ETranzact.

The record decline on the Bourse pushed the market’s positive return year-to-date (YtD) lower to 24.97percent.

FBN Holdings topped the league of Wednesday’s laggards after its share price dropped from N21.50 to N19.35, shedding N2.15 or 10percent.

It was followed by ETranzact which dropped from a high of N9.50 to N8.55, shedding 95kobo or 10percent. Also, Transcorp decreased from N4.70 to N4.23, down by 47kobo or 10percent.

At the close of trading, the equities market’s All-Share Index (ASI) and its capitalisation decreased from preceding day’s highs of 65,669.29 points and N35.757trillion respectively to 64,046.93 points and N34.874trillion.

UBA, Japaul Gold, Transcorp, FCMB Group and Access Corporation were top traded stocks as investors in 13,878 deals exchanged 1,163,228,654 shares valued at N12.694billion.

Dangote Cement series 8 and 9 Commercial Paper programme opens

Dangote Cement Plc Series 8 and 9 Commercial Paper (CP) offer of up to N100 billion under its Commercial Paper Issuance Programme is now open and scheduled to close on or before Friday July 14.

Dangote Cement is Sub-Saharan Africa’s leading cement producer, with a combined capacity of 51.55Mta (35.25Mta in Nigeria) across its operations in 10 African countries. It operates a fully integrated “quarry-to-customer” business with activities covering manufacturing, sales, and distribution of cement.

Meanwhile, ahead of the commencement of the first tranche (Tranche I) of its newly established share buy-back programme, investors interest in the shares of Dangote Cement Plc has pushed the price to N326 per share.

Positive reaction trails share buy-back programme
“As expected, reaction to Dangote Cement share buy-back programme has been positive for the market,” according to Lagos-based Vetiva Research analysts who had expected this to filter into Wednesday’s trading session, “while profit taking persists in some names, given the capital gains that have been recorded this year.”

From a 52-week low of N220, Dangote Cement Plc share price had reached 52-week high of N360.7 before its Wednesday’s dip to N326. As at Friday July 7 when the commencement date was disclosed for the share buy-back, the price was N300.1 per share.

A share buyback is a form of shareholder remuneration where a company buys back its own shares to reduce its capital by cancelling the repurchased stock.

The commencement date is Monday July 17, 2023 while the completion date is Tuesday July 18, 2023, or when the entire Tranche I size has been purchased; whichever is earlier. The duration of the tranche I of the share buy-back programme is two trading days and it will be done at the open market of the Nigerian Exchange Limited (NGX).