MAR 12, 2018: ZENITH OFFLOAD AT NIGERIAN STOCK EXCHANGE

Despite prospects of N2.45 per share dividend per share for 2017 financial year, Zenith Bank witnessed offload of 78.96m shares today March 12, at the Nigerian Stock Exchange that resulted in a scramble of sorts.

Mopping up the rare offers resulted in day high 889 deals which for the first time in weeks paced number of deals and pushed FBN Holdings to second place with 376 deals.

The Zenith offload too led trades value for the day too as it came to N2.45bn or about 24% of the total traded value of N10.56bn for the day.

Zenith had gained N0.1 per share within the day as it opened at N30.95, hit day high of N31.9 and low of N30.0 before closing at N31 per share, up on Friday's N30.9 per share.

The proposed dividend for 2017 compares well with N2.02 per share in 2016 but in spite of this, 203.6% increase in loan provision to N98.23bn gives course for concern even though being allowed by the Central Bank to propose dividend implies no trouble with capital adequacy and non performing loans.

The scramble had quite an impact because while traded volume and value dropped by 45.9% and 46.4% respectively to 831.38m shares and N10.56bn, number of deals struck rose by 22.9% to 5651 from Friday's 4599.

And aside from FBN Holdings, Ja Paul oil & Maritime, recording 2nd place volume of  64.76m worth N64m chipped in 312 deals.

The All share index headed down once again after Friday's rally dropping by 0.26% to 43056.1 as 34 price drops and 19 gains were recorded.

It looks like the no more bottom for prices new rule introduced earlier in the year is beginning to have impact.

Hitherto, based on the old rule, most insurance companies closed at par which was the bottom but today, of the 19 gainers and 34 price drops 5 and 7 respectively were insurance companies.

Indeed, in % terms Regal Insurance led drops by going down 5.71% or N0.02 per share while witnessing 129 deals involving sector leading 41.6m shares worth N13.8m and UNIC, up 9.52% or N0.02 per share, led gainers while recording 64 deals for 15.94m shares worth N3.62m.

In Naira terms though, NEM Insurance paced the sector with N0.08 per share for 54 deals for 4.84m shares worth N12.1m followed by AXA Mansard with N0.07 per share gain while recording 11 deals for 0.38m shares worth N1.05m. Both NEM and Mansard though were not among listed companies hitherto stuck at par.


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