NSE admits Cornerstone Insurance 5.91m shares amidst dwindling indicators

By Chioma Obinagwam

The Nigerian Stock Exchange (NSE) has said that it admitted a total of 5,909,497,252 ordinary shares of 50 kobo to the outstanding shares of Cornerstone Insurance Plc to serve as Purchase Consideration for Acquiring 96.68 per cent Stake in FIN Insurance Plc Company Ltd, which translates in to a total outstanding shares of 14,729,507,615 for the company.

This development is coming despite the depressed appetite and negative sentiments by investors on the Exchange, which has dragged the major measurement indicators of the Nigerian Bourse – the NSE All-Share Index and the Market Capitalisation downward.

This waning sentiments is, however, not unconnected with current macro-economic challenges facing the country, which has actually spilled over to other sectors of the country apart from the capital market.

Recall that Nigeria has been battling with forex scarcity brought about by declining external reserves as a result of a sharp drop in the price of oil in the international market and has forced regulators and the government to ration the flow of forex, leading to untold hardship in the country.

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The weekly report of the NSE for the period ended February 26, 2016 showed that Nigerian equities market ended the week on a negative note as all-share index (ASI) and market capitalisation climbed down by 0.83 per cent and 0.80 per cent to close the week at  24,228.79 basis points and N8.336 trillion respectively.

Worse still, the report also indicated that NSE All-Share Index already recorded significant decline of 15.41 per cent year to date (ytd) .

Similarly, the report said all other Indices finished higher during the week, with the exception of NSE Premium Index, NSE 30 Index, NSE Banking Index, NSE Insurance Index and NSE Pension Index that depreciated by 0.83 percent, 3.01 percent, 0.35 percent, 2.45 percent, 1.25 percent and 1.25 percent respectively.

At the close of the week’s trading on the Nigerian bourse, the NSE update affirmed that a turnover of 4.476 billion shares worth N11.742 billion in 14,124 deals were traded this week by investors compared to a total of 1.202 billion shares valued at N9.641 billion that exchanged hands last week in 13,712 deals.

It reported that the Consumer Goods Industry measured by volume led the activity chart with 3.331 billion shares valued at N5.695 billion traded in 2,511 deals; thus contributing 74.42 percent and 48.50 percent to the total equity turnover volume and value respectively. The Financial Services Industry followed with 1.008 billion shares worth N3.752 billion in 8,730 deals. The third place was occupied by the Oil and Gas Industry with a turnover of 55.332 million shares worth N416.383 million in 1,024 deals.

According to the NSE, trading in the shares of Fast Moving Consumer Goods (FMCG) firm, Tiger Branded  Consumer Goods Plc, financial HoldCos, FCMB Group Plc and FBN Holdings Plc measured by volume accounted for 3.736 billion  shares worth N4.872 billion in 2,443 deals, contributing 83.47 percent and 41.49 percent to the total equity turnover volume and value respectively.

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Also traded during the week were a total of 14,844 units of Exchange Traded Products (ETPs) valued at N14.134 million executed in 29 deals, compared with a total of 93,518 units valued at N1.158million transacted last week in  48  deals.

In terms of bond, the NSE reported that a total of 4,990 units of Federal Government Bonds valued at N5.799 million were traded in 2 deals compared  to a total of 150,000 units of Federal Government Bonds  valued at N169.326 million  transacted last week in 2 deals.

In terms of price changes, 21 equities appreciated in price during the week, lower than 22 recorded the past week. On the contrary, 35 equities depreciated in price, lower than 37 reported the previous week, while 134 equities remained unchanged, 131 recorded in the previous week.