Market up 41.39% year-to-date as stocks gain N2.1trn in one week

…UPDC, Neimeth get till 2026 to meet free float requirement

Nigeria’s equities market garnered about N2.114trillion in the trading week ended Friday, February 16. Increased buy-side activity in the 5-day trading week pushed the stock market’s year-to-date (YtD) return to 41.39 percent – thanks to stocks like Airtel Africa, Honeywell Flour Mills, BUA Foods, Geregu Power and PZ Cussons.

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The market defied another disappointing inflation report which was released in the review week by the National Bureau of Statistics (NBS).

The NBS report shows January inflation rate reached new high of 29.90 percent in January 2024, compared with 28.92 percent in December.

While the nation’s inflation rate inches closer to 30percent, its new 27-year high, analysts attribute it to lingering effects of past reforms and more importantly, the security challenges in food-producing states.

This month, the stock market has risen by 4.52 percent despite depreciating naira as against the US dollar.

The Nigerian Exchange Limited (NGX) All-Share Index (ASI) and Market Capitalisation increased week-on-week (WoW) by 3.79percent, from preceding week’s 101,858.37 points and N55.735 trillion respectively to 105,722.78 points and N57.849trillion on Friday, February 16.

In a related market development, the Board of Directors of UPDC Plc notified its shareholders that NGX Regulation Limited (NGX RegCo) has approved the Company’s request for extension of time to achieve the required free float threshold within two years (2024-2026).

Also, the Board of Directors of Neimeth International Pharmaceuticals notified its esteemed shareholders that NGX Regulation Limited (NGX RegCo) approved the Company’s request for extension of time to achieve the required free float threshold within two years (2024-2026).

This is to enable both companies comply with Nigerian Exchange Limited’s free float requirements of 20percent issued and fully paid share capital or N20billion free-float market capitalisation for companies listed on its Main Board and to ensure that the Company returns to its post-listing obligations.

This is in line with Rule 3.1.4 of The Exchange’s Rules Governing Free Float Requirements, which states that “The Exchange may suspend trading in the company’s securities if the company does not achieve the required free float within the stipulated timeframe”.

Read also: Stock market defies inflation report to sustain rally

“The Board and majority shareholders of the Company remain committed to good corporate governance practices and will ensure that the free float deficiency of the Company is cured within the stipulated timeline given by NGX RegCo, failing which NGX RegCo may suspend trading in its securities,” the company noted in its February 16 statement signed by Folake Kalaro, Company Secretary.