Stock market starts week in green as investors buy GSK, others

Nigeria’s equities market opened the new week on a positive note as investors showed remarkable buy interests in stocks like GlaxoSmithKline Consumer Nigeria (GSK), Nigerian Enamelware, Wema Bank, University Press and Sunu Assurances.

While disclosing its plans to cease operations in Nigeria, GSK had said its Board is conscious that shareholders will have many questions, noting that the company has been working assiduously with its professional advisors “to agree on next steps and we will be shortly submitting to the Securities and Exchange Commission (SEC) a draft Scheme of Arrangement which may, if approved, see shareholders other than GSK UK, receive an accelerated cash distribution and return of capital”.
At the close of trading on Monday, August 7 the Nigerian Exchange Limited (NGX) All-Share Index (ASI) and its equities market capitalisation increased by 0.21percent or N75billion, from 65,198.08 points and N35.480 trillion respectively to 65,336.71 points and N35.555trillion.

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“This week, we expect the bullish sentiments in the equities market to persist on the back of the market’s attractiveness over the depressed rates in the fixed-income market. Also, we believe the positive sentiments around the new policy direction will continue to drive the rally in the market. Lastly, the recent S&P upgrading of Nigeria’s outlook from negative to stable would further drive positive sentiments,” said United Capital Research analysts in their August 7 note.

Sterling Financial Holdings, FCMB Group, Fidelity Bank, Japaul Gold and Access Corporation were most actively traded stocks as investors in 6,940 deals exchanged 334,333,242 shares valued at N3.891billion.

Nigerian Enamelware share price went up most on the Nigerian Bourse, from day-open low of N17.75 to N19.50, up N1.75 or 9.86percent. Wema Bank increased from N4.30 to N4.72, up 42kobo or 9.77percent. University Press rose from N2.26 to N2.48, up by 22kobo or 9.73percent. Sunu Assurances moved up from 93kobo to N1.02, up 9kobo or 9.68percent, while GSK Nigeria increased from N8.90 to N9.75, up 85kobo or 9.55percent.

In another development, the Debt Management Office (DMO) on Monday announced the August edition of the FGN Savings Bond (FGNSB). The savings bond offer which opened on August 7 for subscription of FGN Savings Bond due August 7, 2025 and August 7, 2026 closes on August 11. The saving bonds of 2 years and 3 years tenor are offered at interest rate 9.634percent and 10.634percent annually.