NGX Group set to list shares at Exchange

Nigerian Exchange Group (NGX Group) Plc is set to list its shares on the Nigerian Exchange (NGX) Limited at an indicative price of ₦17.17 per share as NGX Regulation Limited has approved its listing by introduction of 1.96 billion ordinary shares of 50 kobo each on the NGX Ltd. Meanwhile, NASD stated last week that NGX Group would no longer be traded on the OTC market, in preparation for NGX Group’s listing on NGX. Today, the domestic equities market halted its 7-session bullish run due to sell-pressure on BUACEMENT (-2.5%), NIGERIAN BREWERIES (-6.1%), and GTCO (-2.1%) as the All-Share Index slid 38bps to 40,714.00 points. Accordingly, YTD return weakened to 1.1% while market capitalisation fell by ₦80.4bn to ₦21.2tn. Trading activity declined as volume and value traded fell 42.2% and 11.3% respectively to 191.2m units and ₦2.6bn. The most traded stocks by volume were FBNH (24.1m units), ETI (19.3m units), and CHAMS (17.7m units) while BUACEMENT (₦359.3m), GTCO (₦343.6m), and ZENITH (₦300.7m) led by value.

Performance across the sectors under our coverage was mixed as 2 indices gained, 2 lost, while the AFR-ICT and Oil & Gas indices closed flat. The Banking and Insurance indices gained 0.7% and 0.4% respectively due to buying interest in ETI (+9.5%), ACCESS (+0.5%), NEM (+9.9%), and ROYALEX (+8.8%). On the flip side, the Consumer and Industrial Goods indices declined 1.0% and 0.6% respectively on account of sell-pressure on NIGERIAN BREWERIES (-6.1%), GUINNESS (-1.9%), and BUACEMENT (-2.5%). 

Investor sentiment, as measured by market breadth (advance/decline ratio), waned to 0.9x from 1.2x as 16 stocks advanced while 17 stocks declined. NEM (+9.9%), ETI (+9.5%), and CHAMPION (+9.5%) led the gainers while SOVRENINS (-8.3%), NIGERIAN BREWERIES (-6.1%), and AIICO (-5.3%) led the losers. In the coming trading session, we expect the local bourse to sustain this bearish momentum in the absence of any positive catalyst.

Market Statistics for Monday, 11th October 2021