• Friday, December 01, 2023
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Market sustains rally by 0.23% as investors buy Mecure, Japaul, others

Equities market opens week on negative note

Nigeria’s equities market rose further by 0.23 percent on Wednesday, its third consecutive gain this week.

Shares of recently listed Mecure Industries Plc rallied most from N2.96 to N3.25, adding 29kobo or 9.80 percent.

Mecure, a leading human pharmaceuticals and nutraceuticals manufacturing company had this week listed 4 billion ordinary shares on Nigerian Exchange Limited (NGX) by introduction at N2.96 per share.

This was another major listing for NGX in the pharmaceuticals industry as the company added about N11.84billion to the market capitalisation of the Exchange upon its addition to the Main Board.

CardinalStone Research analysts said in their recent note that they expect sustained optimism in the market in November 2023, “driven by continued reactions to earnings releases and potential dividends, the ongoing clearing of outstanding FX backlogs, positional plays ahead of likely Santa rally and expected mergers, acquisitions, and delistings (example Dangote Sugar, NASCON, PZ and GSK)”.

Read also: Equities market drops by 0.42% in week ended October 20

The stock market’s positive return year-to-date (YtD) has reached 38.09 percent. This week, the market has increased by 0.82 percent while this month it has risen by 2.22 percent.

At the close of trading session, the Nigerian Exchange Limited (NGX) All-Share Index (ASI) and equities Market Capitalisation increased further from preceding trading day’s lows of 70,613.6 points and N38.797trillion respectively to 70,773.31 points and N38.885trillion.

Another major advancer is Japaul Gold which increased from N1.52 to N1.67, adding 15kobo or 9.87 percent.

Japaul Gold and Ventures Plc have filed application with the Securities and Exchange Commission (SEC) to raise additional capital in the sum of N20 billion through special placements with identified investors.

The transaction is aimed at reinforcing the primary business of the company as a mining-focused enterprise and repositioning it as a market leader in the mining sector.

Read also: Investors trade equities worth N2.154trn in 7 months

The company had informed the Nigerian Exchange Limited (NGX) and the investing public that the proceeds of the placement would be applied primarily to finance the expansion of the company’s minefields.

Cornerstone Insurance also made the top gainers list after rising from a day-open low of N1.44 to N1.58, up by 14kobo or 9.72 percent.

Stock investors gained about N88 billion at the close of trading on Wednesday as investors in 6,401 deals exchanged
558,344,682 shares worth N9.794billion.

FBN Holdings, UBA, Universal Insurance, Fidelity Bank and Unity Bank shares were mostly traded by investors.

Read also: Equities market fails to sustain gain

“To the last point, we note that GSK has announced an exit price of N17.40 (a 16.5 percent upside to its close price as of November 7, 2023), already driving interest in the ticker.

“Similar declarations by the other companies are likely to have an even stronger impact on the market, given their market capitalisations.
“However, potential downsides to market performance include the possible uptick in yields as reflected in the OMO auctions conducted, where average stop rates expanded by 2.8 percentage points (ppts) versus the last auction in August,” CardinalStone Research analysts further noted.