Business
THE Nigerian stock market kicked off the week on a positive note, supported by gains in Seplat Energy following the Federal Government’s approval of its acquisition of ExxonMobil’s onshore assets.
The deal, valued at $1.28 billion, added a significant N376 billion to the market’s capitalisation.
Mr Gbenga Komolafe, the Chief Executive Officer of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), confirmed the approval during the agency’s third anniversary on Monday.
Komolafe stated that the necessary ministerial approval had been obtained and with the approval, Seplat Energy would secure 40 per cent stake in four oil mining leases.
He noted that the company would also gain access to essential infrastructure, including the Qua Iboe export terminal and 51 per cent stake in the Bonny River natural gas liquids recovery plant.
Both facilities were previously operated by Exxon’s local subsidiary, Mobil Producing Nigeria Unlimited.
On trading, the Nigerian Exchange Ltd. (NGX) market capitalisation, which opened at N59.425 trillion, gained N376 billion or 0.63 per cent to close at N59.801 trillion.
The All-Share Index also advanced by 0.63 per cent or 620.33 points to close at 98,690.61, against
98,070.28 recorded on Friday.
Consequently, the Year-To-Date (YTD) return increased to 31.99 per cent.
Investors interest in Guaranty Trust Holding Company Plc(GTCO), Zenith Bank, United Bank For Africa(UBA) and Oando Plc, among other equities also contributed to the market’s surge.
Meanwhile, market breadth closed positive with 32 losers and 18 gainers.
Daar Communications and Ikeja Hotel led the gainers’ table by 10 per cent each to close at 66k and N 7.70 per share respectively.
On the losers’ table, Regency Alliance Insurance led by 8.20 per cent to close at 56k per share.
Analysis of the market activities showed trade turnover settled higher relative to the previous session, with the value of transactions up by 130.46 per cent.
A total of 405.02 million shares valued at N27.57 billion were exchanged in 8,281 deals, compared with 358.85 million shares valued at N11.96 billion traded in 6,719 deals posted in the previous session.
UBA led the activity chart in volume with 138.15 million shares, while Seplat in value of deals worth N18.35 billion. (NAN)
A.I
Oct. 22, 2024
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