NGX cap drops by N132bn as Union Bank delists shares



The delisting of the shares of Union Bank of Nigeria from the Official Daily List of the Nigerian Exchange Limited, on Monday, resulted in a N132bn loss from the market capitalisation.

In a notice to trading licence holders on Monday, the regulatory arm of the Nigerian Exchange Group, NGX Regulations Limited said, “Following the approval of the Bank’s application to delist its entire issued share capital from the Nigerian Exchange Limited, please be informed that the entire issued share capital of Union Bank was today, Monday, 27 November 2023, delisted from the Daily Official List of NGX.”

On November 14, trading in the shares of the company was suspended in the build-up to the delisting.

On its last day on the Daily Official List of the NGX on Friday, Union Bank had a market cap of N193.65bn while its shares closed trading at N6.65 per unit.  Titan Trust Bank Limited, the core investor in Union Bank, had announced its plans to acquire the shares of minority shareholders in the bank in May, after which it would delist from the market.

Meanwhile, the benchmark index of listed shares, the All-Share Index, closed in the green zone at the close of Monday’s trading, as it rose by 0.17 per cent or 123.33 points to 71,353.81. The market cap closed at N39.040tn, which was N132bn lower than N39.172tn recorded on Friday.

Also, the stocks of AccessCorp, United Bank for Africa, Zenith Bank Plc, and Universal Insurance Plc drove the performance of the market on Monday. Investors’ sentiments were positive resulting in 32 gainers and 20 losers.

The gainers chart was dominated by stocks of First Bank of Nigeria Holding, John Holt and Tantalizer who gained 10 per cent each to close trading N22, N1.87 and N0.55 per unit respectively. Other stocks on the gainers’ chart include Multiverse which gained 9.98 per cent to close at N6.39 and Sunu Assurance whose share price rose by 9.73 per cent to N1.24 per unit.

ETranZact led the losers’ chart with a 9.09 per cent dip in its stock to close at N6.70. Unity Bank, which is reported to be in a business combination talks with Providus Bank, landed on the losers chart with a 9.24 per cent loss to close at N1.67. Omatek stocks lost 9.09 per cent to close trading at N0.90, RT Briscoe lost 8.96 per cent of its share price to close at N0.61 per unit and Guinea Insurance lost 5.88 per cent to close at N0.32 per unit.

The volume of transactions on the NGX increased slightly to 746.67 million units from 582.77 million units traded on Friday. The stocks were valued at N5.94bn and exchanged in 9,267 deals. The number of stocks traded in Monday’s session stood at  124.

The volume and value drivers of the day’s trend were led majorly by banking stocks including AccessCorp, UBA and Zenith Bank.

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