Flour Mills of Nigeria Plc and Consolidated Hallmark Insurance (CHI) Plc led the price gainers yesterday at the stock market as the Nigerian Stock Exchange All Share Index (NSE ASI) appreciated marginally by 0.05 per cent to close at 31,984.60 , compared with the depreciation of 0.78 per cent recorded the previous day. In all, 16 stocks appreciated compared with 13 stocks that declined.
Apart from Flour Mills of Nigeria and CHI Plc, other gainers that bolstered the trading included: GTBank, Zenith Bank, FBN Holdings and PZ Cussons Nigeria Plc.
Analysts at Cordros Capital Limited said the absence of a positive catalyst, as well as brewing political concerns, we guide investors to trade cautiously in the short-to-medium term.
“However, stable macroeconomic fundamentals remain supportive of recovery in the long-term,” they said.
Market operators said some investors are reacting to the nine months results of CHI Plc and plans to inject fresh capital into its operations.
CHI Plc will hold its extraordinary general meeting (EGM) on 28th November 2018 in Lagos where directors will get formal approval of shareholders
approve additional capital raise through private placement of 1.130 billion shares at the price of 65 Kobo per share. This private placement will bring in an additional N734.5 million to the coffers of the company.
The company said the private placement is next in the series of proactive efforts of the board and management to boost the working capital of the company and adequately position it as a leading player in the underwriting of big ticket insurance transactions.
The Managing Director of the company, Mr. Eddie Efekoha has already expressed optimism of a very successful outing at EGM as shareholders of the company have often been delighted with the regular dividend payments over the years.
Out of 10 financial years that the company has been quoted on the NSE, it has paid out dividends seven times amounting to a total of N1.22 billion.
The deployment of capital raised during the rights issue is impacting positively as shown in the nine months ended September 30, 2018.
Efekoha said future plans of the company includes broadening its product offerings to take advantage of the on-going market development initiatives of the industry regulator and strengthening its technology in order to deepen its footprints in the retail market whilst delighting its existing corporate customers.