Funke Osibodu


The core investors in Union Bank of Nigeria Plc, Union Global Partners Limited,   have   further increased their stake in the bank by acquiring more shares Tuesday. About 2.271 billion shares of Union Bank, representing 13.4 per cent of the paid-up shares of the bank,   exchanged ownership for N12.744 billion in 99 deals.

Although no official explanation was made regarding the transaction, market operators said Asset Management Corporation (AMCON) might have further reduced its stake, while Union Global might have increased their holding in the financial institution.

The core investors had last June increased their stake by acquiring 4.325 billion shares of the bank held by AMCON.  The shares represented about 25.5 per cent of the paid-up shares of the bank.
Prior to the June acquisition, Union Global controlled about 60 per cent of the Union Bank equity, while AMCON held 21 per cent.

Meanwhile, the Nigerian Stock Exchange (NSE) All-Share Index (ASI) hit a 14-month high yesterday following persistent bull-run that has lasted for eight consecutive days. Gains by blue chip stocks pushed up the ASI by 0.62 per cent to close at 24,012.57. 

Valuations of equities considered favourable by investors, given the recent impressive half-year results of most companies, have been attracting high patronage to the market lately. Also, declining yields on bonds   is said to be redirecting investors’ focus to equities market.

By  the close of trading yesterday, 34 equities added value, up from 30 that appreciated the previous day.

Mobil Oil Nigeria Plc   led the price gainers’ table with N2.99 to close at N114.50 per share. Guinness Nigeria Plc followed with a gain of N2.50 to close at N255.00 per share.

Flour Mills of Nigeria Plc, Okomu Oil Palm Plc and Julius Berger Nigeria Plc chalked up N2.27, N1.62 and N1.40 to be at N57.77, N34.12 and N29.40 respectively.
Conversely, 19 stocks depreciated led by GlaxoSmithKline Consumer Nigeria Plc with N1.00 to close at N30.80 per share.