Emmanuel OchayiFocus on Equities Market Action
Nigeria’s equity market rebounded strongly on Thursday, rising by 0.47 per cent or N263 billion.
This surge is attributed to corporate announcements, including interim dividends and bonus shares, which have bolstered investor confidence and buying activity.
Join our WhatsApp ChannelInterim Dividends Boost Equities Market
The recent interim dividend announcement from United Capital Plc, proposing a 90 kobo dividend and a bonus of two new shares for everyone held, significantly impacted the equity market.
“We are excited about the positive reaction from our investors,” said a representative from United Capital Plc.
Shares of United Capital rose sharply from N36.30 to N39.90, an increase of N3.60 or 9.92 per cent.
Other Major Gainers
Other companies also experienced notable gains. Oando’s shares moved from N16.90 to N18.55, adding N1.65 or 9.76 percent.
Africa Prudential saw its share price increase from N8.90 to N9.75, gaining 85 kobo or 9.55 percent. Learn Africa’s shares rose from N3.52 to N3.85, a 33 kobo or 9.38 percent increase.
ABC Transport increased from 77 kobo to 84 kobo, adding 7 kobo or 9.09 percent.
Trading Highlights on the Equity Market
At the close of trading on the Nigerian Exchange Limited (NGX), the All Share Index (ASI) rose from 100,032.32 points to 100,503.21 points, while the market capitalisation increased from N56.645 trillion to N56.908 trillion.
In total, 9,013 deals were executed, involving 392,795,396 shares valued at N8.333 billion. Actively traded stocks included GTCO, Veritas Kapital Assurance, FCMB Group, UBA, and Cutix.
Fidson Healthcare Targets N3bn from Series-11 Commercial Paper
Fidson Healthcare Plc announced the opening of its Series 11 Commercial Paper (CP) under its N25 billion Commercial Paper Programme, aiming to raise to N3 billion.
READ ALSO: Nigeria’s Equities Market Sees N62bn Gains As United Capital, UACN, Others Lead Charge
The offer is set to close on Tuesday, July 23, 2024. For the year ended 2023, Fidson reported sales of N53.1 billion, a 31 percent increase from the previous year’s N40.6 billion.
Fidson’s Continuous Engagement in the Equity Market
Fidson Healthcare has a consistent presence in the equity market, having accessed funding multiple times through the capital markets.
Their past issuances include a N5 billion 210 and 270-day Commercial Paper in December 2023, a N5 billion 181 & 269-day Commercial Paper in November 2023, and various other Commercial Papers and bonds dating back to 2014.
Market Outlook and Investor Sentiment
The positive performance in the equities market reflects growing investor confidence, bolstered by corporate actions and favourable economic indicators.
“The market’s upward trend is a testament to the resilience of our economy and the strategic decisions by key players,” noted a market analyst.
Equity Market and Corporate Announcements
The equity market is sensitive to corporate announcements, with interim dividends and bonus shares driving investor interest and market movements.
This trend underscores the importance of strategic corporate communications in influencing market dynamics.
The resurgence in Nigeria’s equity market, driven by investor interest in interim dividends and bonus shares, highlights the potential for growth and stability.
As companies like Fidson Healthcare continue to engage with the capital markets, the equity market is poised for further positive developments.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
Follow Us