Economy

Equity transactions resume on bearish trend, index down 0.81%

Profit taking: NSE opens trading, shedding off N28Bn
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Written by Maritime First
  • As Arik share value already eroded – AMCON

Trading activities on the Nigerian Stock Exchange (NSE) on Monday resumed for the week on a negative trend, with the market indices dropping by 0.81 per cent.

The market capitalisation shed N101 billion or 0.81 per cent to close at N12.292 trillion against N12.393 trillion posted on Friday.

Also, the All-Share Index, which opened at 35,957.24, lost 292.3 points or 0.81 per cent to close at 35,664.94.

An analysis of the price movement indicated that Nestle led the losers’ table with a loss of N10 to close at N121 per share.

Dangote Cement trailed with N5 to close at N210 and Okomu Oil dipped N3.1 to N59.9, while Flour Mill declined by N1 to N29 per share.

GTBank also lost 74k to close at N37.8 per share.

Conversely, Total Oil led the gainers’ table during the day, gaining N2.02 to close at N235 per share.

UACN came second with a gain of 4k to close at N15 and ETI appreciated by 32k to close at N18 per share.

NASCON increased by 3k to close at N13.3, while Airservice added 29k to close at N6.25 per share.

Similarly, the volume of shares dropped by 24.73 per cent with an exchange of 114.77 million shares worth N2.17 billion transacted by investors in 3,232 deals.

This was in contrast with 152.47 million shares worth N3.08 billion exchanged in 4,079 deals on Friday.

Zenith Bank was the most active, exchanging 19.83 million shares valued at N463.52 million.

Access Bank followed with an account of 12.06 million shares worth N117.03 million, while UAC-Prop traded 10.38 million shares valued at N30.59 million.

Diamond Bank sold 6.80 million shares worth N7.95 million and Cileasing traded 6.31 million shares valued at N6.72 million.

In the meantime, the Asset Management Corporation of Nigeria has laughed off the suit instituted by shareholders of Arik Air against the Federal Government and Ethiopian Airlines over purported talks to rescue the troubled carrier.

According to AMCON, the fact that the Arik is hugely indebted to various creditors to the tune of over N300bn, and has been taken over by the corporation has eroded the share value of the airline, hence the shareholders have nothing to hold on to again.

AMCON spokesperson, Jude Nwauzor, told our correspondent on the telephone that if the erstwhile owners of the airline come forward and settle the indebtedness, the corporation would immediately call a press conference and hand the company over back to them.

He also reiterated AMCON’s earlier position that it was not in any current discussion with the management of Ethiopian Airlines for the takeover of Arik.

According to Nwauzor, KPMG, the audit firm appointed to carry out a forensic audit of the airline’s books has not completed its assignment, hence a decision cannot be taken yet on the future of the carrier.

Arik Air shareholders have filed a court case against the government and Ethiopian Airlines in an attempt to halt any talk over the sale of the airline, which controlled around 55 per cent of the domestic market.

The shareholders are also challenging in court the takeover of the airline by AMCON.

Nwauzor had told Reuters on Monday that AMCON was not in negotiation with Ethiopian Airlines and would want to resolve all court cases in addition to receiving the report of the receiver manager before taking any action.

AMCON took over the day-to-day running of Arik Air in February in an attempt to rescue the airline after it was unable to pay workers or creditors.

“They have not completed their assignment; they are still having meetings with some creditors,” Nwauzor said, adding that the airline had improved, with some creditors now willing to do business with it and staff being paid.

Additional report from Punch

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Maritime First