The Nigerian Exchange (NGX) Limited last Friday placed full trading suspension on the shares of Guaranty Trust Bank(GTBank) Plc. According to the NGX, the suspension was necessary to prevent trading in the shares of the bank in preparation for the eventual delisting of GTBank to pave way for the listing of the holding company(Holdco), Guaranty Trust Holding Company Plc on NGX.
Shareholders of the GTBank had ratified the plan to adopt a holdco structure and the Group Managing Director of the bank, Mr. Segun Agbaje, had told them the development would see a new corporate entity, Guaranty Trust Holding Plc, take the place of GTBank on the London and Nigerian stock Exchanges.
He explained that change would entail a 1:1 share transfer while the holdco would serve as the parent company and corporate centre for GTBank Nigeria, all GTBank African subsidiaries and all other new businesses that will be created following the transition.
He noted that as a holdco, they will compete more effectively with non-banks in the new competitive landscape; pairing their strength in financial services with an aggressive focus on creating value in every aspect of their customers’ lives.
Meanwhile, Investors traded four days last week as the Federal Government of Nigeria declared Monday 14th June 2021 as Public Holiday to mark the Democracy Day celebrations. A total turnover of 981.147 million shares worth N10.384 billion in recorded in 15,001 transactions were traded on the floor of the Exchange, in contrast to a total of 1.058 billion shares valued at N12.831 billion that exchanged hands previous week in 17,854 deals.
The Financial Services Industry (measured by volume) led the activity chart with 695.803 million shares valued at N5.178 billion traded in 8,616 deals; thus contributing 70.92% and 49.86% to the total equity turnover volume and value respectively.
The Consumer Goods Industry followed with 75.879 million shares worth N1.227 billion in 2,263 deals. The third place was Conglomerates Industry, with a turnover of 67,430 million shares worth N367.306 million in 612 deals. Trading in the top three equities namely Zenith Bank Plc, Sterling Bank Plc and Wema Bank Plc (measured by volume) accounted for 265.649 million shares worth N2.450 billion in 2,742 deals, contributing 27.08% and 23.60% to the total equity turnover volume and value respectively.
The NSE All-Share Index and Market Capitalization depreciated by 1.30% to close the week at 38,648.91 and N20.143 trillion respectively. All other indices finished higher with the exception of NSE ASI, NSE-Main Board, NSE MERI Growth and NSE Industrial Goods, which depreciated by 1.30%, 3.26%, 1.33% and 0.05% respectively, while the NSE Growth and NSE ASeM Indices closed flat
