Following the recent acquisition of billions of shares of the Transnational Corporation of Nigeria (Transcorp) by Heirs Holdings, an investment company, some investors are now “taking position” in the conglomerate’s stock.
Transcorp’s shares were the most traded stock at the Nigerian Stock Exchange (NSE) on Tuesday with over 54.208 million volume of shares traded, while the share price rose by 4.61 per cent to close at N1.59 per share.
Olugbenga Emmanuel, a finance analyst at WealthZone Company, a portfolio management firm, said, “The stock (Transcorp’s shares) is presently attractive because of the development in the company. A new board member is expected in the company to turn around activities,” adding that “retail investors are currently taking position in the stock for better reward.”
Market rebounds
The market capitalisation of equities at the close of trading session on Tuesday rebounded marginally by 0.03 per cent.
The NSE market capitalisation of the 194 First-Tier equities closed yesterday at N7.885 trillion after opening the day at N7.883 trillion, reflecting N2 billion gains. The market had lost over N19 billion after Monday’s transaction.
The number of gainers on Tuesday closed higher at 31 stocks compared to the 25 stocks recorded on Monday, while losers closed at 26 stocks; the same figure recorded the previous trading day.
May & Baker Nigeria and Airline Services & Logistics topped the price gainers’ table with an increase of five per cent each, to close at N4.20 and N1.89 per share, respectively. International Breweries and First Aluminium followed on the gainers’ table with an increase of 4.86 and 4.84 per cent, to close at N6.47 and 65 kobo per share.
On the losers’ side, UAC Property, Costain West Africa, and National Nigeria Flour Mill led the price losers’ chart with a loss of five per cent each, to close at N15.20, N5.32 and N19.97 per share. Glaxo Smithline Consumer followed with a loss of 4.98 per cent, to close at N27.08 per share.
The Exchange yesterday marked down the prices of Access Bank and Unilever stocks for final dividend of 30 kobo and N1.10 per share respectively, as proposed by the companies’ managements.
At the close of trading yesterday, the Banking subsector led the most active subsector’s chart with 199.381 million quantities of shares, valued at N1.903 billion. Volume in the subsector was largely driven by Zenith Bank, followed by Stanbic IBTC, Guaranty Trust, Skye, and Access Bank.
The Conglomerates subsector was second in the most active subsectors’ chart with 55.346 million volumes of shares, valued at over N119.432 million. Transcorp, the most traded stock for the day, largely boosted volume in the subsector, followed by UAC Nigeria and Unilever.
Trading activities in the Insurance subsector was third in the chart. Investors in the sector exchanged 6.885 million volumes of shares, valued at N6.795 million. Deals in shares of Aiico Insurance, Law Union & Rock Insurance, and Custodian & Allied Insurance boosted volume in the subsector.
Meanwhile, the management of the NSE yesterday reiterated its position on the execution of “large volume/block divestment transactions” by stockbroking firms.
The NSE, in a statement said, “Broker must write to seek approval in writing and explain the intention behind the transaction” while such application “must be supported with mandates from both the buyer(s) and the seller(s).”
This was in response to the controversy generated last week by the purchase of shares of Transcorp by Heirs Holdings.
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I believe all these bomb cases are not orcttserahed by boko haram, it is a much bigger conspiracy than we expect. It is done by people trying to gain access to Nigeria’s security and trying to infiltrate our intelligience system because to them Nigeria’s unity is their greatest fear, they don’t want to repeat the mistake they did in china of allowing a third world nation grow strong because eventually they will have a new rival and Nigeria has that potential and resources of being a very strong and rich country that’s why Nigeria is a threat to them. They now resort to capitalise on our differences because it is our greatest weakness. Most southerners assume all northerners are terrorist and voilent but that is not true. I am from Bauchi state, the state with the second highest Boko Haram cases. Please believe me if I tell you Boko Haram are not nearly as strong as they are assumed to be, the media has exaggerated the capabilities. They are a very small group consisting of mostly illetrates and very poor people. The media is the tool these people have used to rule the world. If they want to create a villain they use the media to do that therefore we should stop believing everything our media men tells us and believe Boko haram is a myth and then try to work together to acheive a United Nigeria.
Well written artilce but I do not totally agree with your views. I don’t believe that the GDP growth is a useless one. There is no gainsaying the fact that Nigerians are not happy seeing high growth rates that do not have any effect in their pockets but simply because majority of Nigerians are getting poorer and minority are getting richer does not mean that there is no growth. It just means that the rich are getting richer faster than the poor are getting poorer.I digress. Back to the point.Nigerians do not know that Nigeria is currently helpless including the government. The case of the government is like a poor parent watching his child accuse him of not providing food for him when he is hungry without giving thought to the fact that the parent is simply broke and cannot even feed himself.Nigeria has an infrastructure deficit of over N32 trillion that should be bridged in the next four years and if nothing is done, this deficit will balloon to N47 trillion by 2016 assuming an inflation rate of 10% per year. Nigeria has a budget of about N5 trillion with a budget deficit of 2.97%, meaning that Nigeria can only finance the budget in 2012 by borrowing roughly N1.1 trillion. So the country can only generate revenues of N3.9 trillion to finance the budget. How will a country that has an infrastructure deficit that is almost ten times of what it can finance per year impact the lives of common Nigerians?It stands to reason that the government is helpless and there is very little it can do about this directly. Casting aspersions about railway lines that were awarded and taken back or a N70 billion textile fund that did not work is not the problem. Our past leaders have wrecked Nigeria and there is very little anybody can do regardless of who is at the helm of affairs.Believe it or not, Nigeria is on the right path. We need to shout our GDP growth and our massive population from the mountain tops for the whole world to hear. We need the world to know that the country has a massive consuming power that can be tapped into. We need help and we need it fast. The only way out of the doldrums is for foreign investors to come in and help us. They will only invest if they know that they will make profits and our GDP growth is the only thing we have to offer to entice them.Nigeria is corrupt. Granted. But there is corruption the world over. There is no point believing that the Government can successfully sell any of its entities without some personal interests clamoring about the wrongful sale. That is why I am happy that Nigeria is encouraging massive private participation in the power sector. The PIB is going to be accelerated, given the crises inthe downstream sector. The PPP embarked upon for the development of roads and other infrastructure is a welcome idea. We can no longer wait for the Government to do everything for us.I have a dream that one day Nigerians will have world class companies in the mould of Apple that will have a market value that is as large as half of the Nigerian economy. If the Swiss Government cannot bail out UBS when the financial sector was crumbling because the company was richer than the Government, then I believe that one day, we will achieve it and all those rent seeking politicians will finally believe that hardwork can pay more than laziness.I still believe in Nigeria.
The way i see it, its more about quality and retatupion than colonial mentality. This so called foreign brands have built a retatupion over the years which local manufacturers have not done. Remember that Rome wasn’t built in a day. Japanese car manufacturers did not build there retatupion in one day, it took a while of sustained dominance to get to this stage. If local manufacturers can focus on quality, aesthetics and durability the customers would come. Let’s not forget that customers are fickle and can be easily swayed.