Access Bank acquires majority stake in Botswana bank, as Raysun plans to take over Champion breweries

Access Bank Plc has said on the floor of Nigeria Stock that it has completed the acquisition of 78.15 per cent shareholding in African Banking Corporation of Botswana Limited (BancABC Botswana). The new acquisition is expected to form part of the Bank’s nexus for trade and payments in Southern Africa and COMESA trade region. Also the management of Champion Breweries notified the exchange and the investing public on the proposed mandatory takeover of the company by RAYSUN Nigeria Limited in a transaction that will see RAYSUN acquire 1,196,799,164 units (15.3%) of the total issued and fully paid-up share capital of  Champion Breweries

After retreating 38bps in the prior trading session, the local bourse today gained 44bps, as investors cherry-picked on BUACEMENT (+1.8%), GTCO (+0.7%), FBNH (+9.8%), and ACCESS (+1.6%). Accordingly, the All-Share Index advanced to 40,896.96 points while market capitalisation and YTD return gained ₦95.5bn and 50bps respectively to settle at ₦21.3tn and 1.6%. Trading activity strengthened as volume and value traded rose 194.8% and 96.7% respectively to 563.9m units and ₦5.1bn. The most traded stocks by volume were FBNH (317.3m units), CHAMPION (49.9m units), and ETI (38.1m units) while FBNH (₦3.3bn), GTCO (₦274.2m), and ETI (₦269.2m) led by value.

Performance across the sectors under our coverage was bullish as 4 indices gained, 1 index lost while the AFR-ICT index remained flat. The Banking and Insurance indices topped with a gain of 1.0% apiece due to buying interest in GTCO (+0.7%), FBNH (+9.8%), WAPIC (+4.2%), and AIICO (+2.2%). Trailing, the Industrial and Consumer Goods indices advanced 0.5% and 0.1% respectively on the back of price appreciation in BUACEMENT (+1.8%) and DANGSUGAR (+1.1%). Conversely, the Oil & Gas index shed 0.7% as investors sold-off OANDO (-3.5%). 

Investor sentiment, as measured by market breadth (advance/decline ratio), strengthened to 2.0x from 0.9x as 26 stocks advanced while 13 stocks declined. CHAMPION (+10.0%), CORNERST (+9.8%), and FBNH (+9.8%) led the gainers while CHIPLC (-6.8%), JAPAULGOLD (-6.2%), and NEM (-3.8%) led the losers. We expect the positive momentum to be sustained in the next trading session as investors continue to rebalance their portfolio ahead of Q3 earnings season.

Market Statistics for Tuesday, 12th October 2021