The Nigerian equities market Monday resumed the week on a positive note as the Nigerian Stock Exchange (NSE) All-Share Index (NSE ASI appreciated by 0.03 per cent to close at 26,231.37. The market had shed 0.39 percent last week as highly capitalised stocks fell under the high sell pressure. However, as trading resumed yesterday, the market went up marginally to close higher. Market analysts at Meristem Securities Limited, attributed the positive trading to gains by large capitalised stocks.
“We attribute the day’s performance to the positive sentiments in the market, specifically on some large cap stocks. We expect this trend to continue into the week, as we anticipate more bargain hunting activities on counters trading below their intrinsic values,” they said.
A total of 19 stocks appreciated compared with 15 that declined in value. UACN Property Development Company (UPDC) Plc led the price gainers’ chart, advancing by 4.86 percent to close at N3.02 per share.
UPDC is planning to raise about N5 billion from the capital market through a rights issue of 1.719 billion ordinary shares of 50 kobo each at N3.00 per share on the basis of one new share for every one share already held.
The Chairman of UPDC, Mr. Larry Ettah had last year given an indication for the raising of the funds to boost its operations.
Ettah had said the capital injection would be in form of rights issue, disposal of low performing assets and sell down of surplus stake in the real estate investment trust (REIT) among others.
“Our strategy for 2016 and beyond includes deleveraging the business through equity capital injection by way of rights issue, sell down of the surplus stake in the REIT and disposal of low-performing assets, as well as leveraging on partnerships and alliances that are in sync with the company’s long-term goals,” he said.
Cutix Plc closed as the second highest price gainer with 4.4 per cent, while Oando Plc appreciated by 3.9 per cent. Wema Bank Plc and Diamond Bank Plc garnered 3.8 percent.
Wema Bank last week announced the appointment of Mr. Ademola Adebise as the deputy managing director of the bank in a move seen as establishing a stable succession plan.
A stockbroker, Mr. Ayo Oguntayo had hailed development, saying it will bring to the bank a stable succession plan that is capable of boosting investors’ confidence in the financial institution.”