NSE seeks listing of upstream oil companies, GSM operators'
By Vanguard
Published:Monday, July 21, 2008
The need for the Nigerian capital market to be a major barometer for the direction of the country’s economy has been brought to the fore once again, as the Nigerian Stock Exchange (NSE) called for the listing of companies operating in the upstream sector of the country's’ oil and gas industry and telecommunication operators.
Speaking last weekend in Lagos, the Director-General of the NSE, Professor (Mrs.) Ndi-Okereke Onyiuke represented by the Assistant Director-General, Mr. Musa Elakama disclosed that the listing of the upstream oil companies and mobile telecommunication operators would further boost the fortunes of the capital market and the country in general.
He explained that the listing of the companies would contribute to the much sought after deepening of the capital market and give Nigerians the opportunity to be owners in these companies.
She said: “There are two important sectors of the economy that we want listed on the NSE - telecommunication and companies in the upstream oil and gas industry. The listing of these companies would contribute immensely in growing the capital market and the economy in general. The capital market, as we all know, is a very important sector, as it helps in mobilising cheap funds for other sectors of the economy to grow.”
To this end, it applauded Starcomms Plc for its decision to list its entire share capital on the NSE, expressing confidence that other GSM operators and the upstream oil and gas companies would following suit.
Starcomms' entire share capital, represented by 6.9 billion ordinary shares of 50 kobo each were listed on the NSE at N13.65 per share. The shares were listed on the newly created telecommunications sub-sub-sector.
It was a different tale for shareholders of Cadbury Nigeria Plc, as the NSE, last week sanctioned the company for its financial mis-statement to the tune of N5 billion.
Announcing the suspension, Elakama disclosed that the NSE’s decision to suspend the company came after the ruling of the Investment and Securities Tribunal (IST), which dismissed the application of Cadbury, and upheld the decision of the Securities and Exchange Commission (SEC) to mete out sanctions to the company.
He said, “We are imposing full suspension on Cadbury Nigeria Plc, following its financial misrepresentation. The reason for our decision today is because of the ruling of the IST on the case. The ruling of the IST is binding on the NSE since it is a court of competent jurisdiction on investment matters. It will be recalled that on May 7, SEC asked us to suspend the shares of Cadbury, we refused then because Cadbury went to court challenging the decision of SEC’s Administrative Proceedings Committee (APC). The IST finally dismissed Cadbury’s application, so we decided to impose the suspension. The company remains suspended until further notice and until it complies with decisions of the APC.”
Meanwhile, equity trading on the NSE dropped last week by 41.4 per cent as a turnover of 3.4 billion shares valued at N40.83 billion was recorded in 71,899 deals in contrast to penultimate week’s turnover of 5.8 billion shares valued at N42.12 billion in 88,146 deals.
The Insurance sub-sector dominated the other sub-sectors, accounting for 44.12 per cent of the market turnover with 1.50 billion shares valued at N2.54 billion in 11,362 deals.
A bearish trend was recorded in the week under review as the performance indices, the All-share index and market capitalisation both depreciated by 4.35 per cent and 3.52 per cent respectively.
The index which opened the week at 54,662.06 points dropped by 2,375.18 basis points to close at 52,286.88 points while the capitalisation closed at N10.47 trillion from N10.85 trillion at which it opened.
The drop in the market indices was as a result of gains on the share prices of blue chip companies, led by Chevron Oil Nigeria Plc, Flour Mills Nigeria Plc, Guinness Nigeria Plc, Conoil Plc, Ashaka Cement Plc, Lafarge Cement WAPCO Plc, Costain (West Africa) Plc among others.
Analysis of trading activities in the week under review shows that on Monday, July 14, 2008, First Bank of Nigeria Plc recorded the highest share price gain, rising by N1.71 to close at N45.61 per share from N43.90 per share at which it opened, it recorded a turnover of 30.88 million shares valued at N1.42 billion, its Earnings Per Share (EPS) stood at N1.84 and its Price Earnings (PE) ratio stood at 24.79, Union Bank Nigeria Plc followed with a gain of N1.56 to close at N37.50 per share, it exchanged 2.52 million shares valued at N93.84 million, it recorded an EPS of N1.63 and a PE ratio of 23.01, Dangote Sugar Refinery Plc garnered N1.49 to close at N31.48 per share, it exchanged 5.1 million shares valued at N154.28 million, it posted an EPS of N1.90 and a PE ratio of 16.57.
United Bank for Africa Plc recorded a share price gain of N1.29 to close at N32.89 per share, it recorded a turnover of 5.46 million shares valued at N177.48 million, it posted an EPS of N1.92 and a PE ratio of 17.13, Oceanic Bank International Plc gained N1.11 to close at N23.43 per share, it posted a turnover of 7.53 million shares valued at N175.67 million, an EPS of N1.69 and a PE ratio of 13.86.
On Tuesday, July 15, 2008, Mobil Oil Nigeria Plc recorded the highest share price gain, rising by N10.85 to close at N227.89 per share, it recorded a turnover of 102,943 shares valued at N23.31 million, its PE ratio stood at 54.39 and its EPS stood at N4.19, UAC Nigeria Plc followed with a gain of N1.74 to close at N43.69 per share, it traded 400,443 shares valued at N17.41 million, it recorded an EPS of N3.22 and a PE ratio of 13.57, Afribank Nigeria Plc recorded a PE ratio of 15.12, an EPS of N1.65, a turnover of 2.86 million shares valued at N69.81 million, a share price gain of N0.75 to close at 24.95 per share.
Dangote Flour Mills Plc recorded a share price appreciation of N0.64 to close at N24.50 per share, it recorded a turnover of 816,894 shares valued at N19.65 million, an EPS of N0.14 and a PE ratio of 175.00, BOC Gases Plc gained N0.57 to close at N18.50 per share, it exchanged 288,224 shares valued at N5.28 million, its PE ratio stood at 31.90 and its EPS stood at N0.58.
On Wednesday, July 16, 2008, Mobil Oil Nigeria Plc recorded the highest share price gain, rising by N11.39 to close at N239.28 per share from N227.89 per share at which it opened, it recorded a turnover of 477,438 shares valued at N114.24 million, its PE ratio stood at 57.11 while its EPS stood at N4.19.
CAP Plc followed with a gain of N2.70 to close at N56.85 per share, it traded 273,396 shares valued at N14.44 million, its EPS stood at N4.40 while its PE ratio stood at 12.92, Lafarge Cement WAPCO Plc garnered N2.00 to close at N52.00 per share, it posted a turnover of 953,332 shares valued at N48.8 million, an EPS of N3.33 and a PE ratio of 15.62.
Union Bank Nigeria Plc recorded a share price appreciation of N1.83 to close at N38.59 per share, it exchanged 16.3 million shares valued at N616.93 million, it notched an EPS of N1.63 and a PE ratio of 23.37, UAC Property Development Company Plc gained N1.23 to close at N25.93 per share, it recorded a turnover of 311,243 shares valued at N7.79 million, its EPS stood at N1.12 and its PE ratio stood at 23.15.
On Thursday, July 17, 2008, Union Bank Nigeria Plc recorded the highest share price gain, rising by N1.92 to close at N40.51 per share, it recorded a turnover of 28.96 million shares valued at N1.17 billion, its EPS stood at N1.63 while its PE ratio stood at N24.85, it was followed by Ecobank Transnational Incorporated with a gain of N1.00 to close N39.00 per share, it exchanged 1.0 million shares valued at N38.30 million, its recorded an EPS of N2.76 and a PE ratio of 14.13, RT. Briscoe Plc garnered N0.99 to close at N21.50 per share, it recorded a turnover of N131,722 shares valued at N2.8 million, its PE ratio stood at 19.03 and its EPS stood at N1.13.
BOC Gases Plc recorded a share price appreciation of N0.58 to close at N20.00 per share, it posted an EPS of N0.58, a PE ratio of 34.48, a turnover of 347,800 shares valued at N6.87 million, Benue Cement Company Plc garnered N0.54 to close at N49.54 per share, it traded 478,570 shares valued at N23.19 million, it posted an EPS of N0.27 and a PE ratio of 183.48.
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