Equity market sustains sliding profile, ASI declines by 1.08%
The equities market closed yesterday on a negative note, as Nigerian Stock Exchange [NSE] All Share Index [ASI] depreciated by 1.08 per cent to close at 32,031.73 basis points, compared with the 0.20 per cent depreciation recorded previously. Its Year-to-Date (YTD) returns currently stands at 7.58 per cent.
Market breadth also closed negative as Ashaka Cement led 13 gainers against 31 losers topped by Beta Glass at the end of yesterday’s session- an unimproved performance when compared with previous outlook.
Market turnover equally closed negative as volume moved down by 10.67 per cent against 39.31 per cent uptick recorded in the previous session. Zenith Bank, Access and FCMB were the most active to boost market turnover. Zenith Bank and Forte Oil topped market value list.
On sectoral indices, insurance recorded 0.14 per cent gain to emerge the most supportive sectoral index among others while LII emerged as worst hit to close with 2.32 per cent.
Meanwhile, the integrated energy company, Oando Plc, has entered an agreement with HV Investments II B.V. (HVI) and the Vitol Group to secure 51 per cent of the voting rights and 60 per cent of the economic rights in Oando’s downstream businesses. The HVI syndicate emanated from a joint venture between Helios Investment Partners (a private equity company) and the Vitol Group, an international energy and commodities trading group.
The total consideration of $461.3 million will be funded by a $276.8 million cash contribution from HVI, and $184.5 million in preference shares issued to Oando Plc, depending on all customary purchase price adjustments, working capital and long-term debt. Upon the successful facilitation of this deal, HVI will have a 60 per cent stake in this venture while Oando Plc will possess a 40 per cent stake.