The FBN Holdings Plc has appointed Mr. Femi Otedola as its new chairman.
This was as the Nigerian stock market ended the first month of the year 2024 on a strong positive note as investors’ investment went up by N14.440 trillion, despite the market’s closing-day loss of N1.068 trillion.
In a statement signed by the acting company secretary, FBNH, Adewale Arogundade, FBNH said: “Otedola succeeds the outgoing chairman of the Board, Alhaji Ahmad Abdullahi. Otedola was appointed to the Board of FBNH on August 15, 2023 as a non-executive director. He is a visionary entrepreneur with a track record of pioneering businesses, growing and transforming corporations.
“Otedola’s first foray into the downstream sector of the oil and gas industry began with Zenon Petroleum and Gas Limited thus disrupting and redefining standards in the industry. He thereafter initiated the purchase of majority shareholding in the then African Petroleum Pic in May 2007 and became the chairman of the Board on May 25, 2007.”
“His vision transformed African Petroleum Plc into Forte Oil Plc. The company grew in leaps and bounds to become a model of the possibilities inherent in Nigeria, winning numerous accolades in recognition of the successful business turnaround, diversified portfolio, prompt financial reporting, strong corporate governance, and investment of choice within the oil and gas industry.”
It added that, “in December 2018, Otedola divested from the company by selling his shareholdings to the Ignite Consortium led by Prudent Energy Services Limited and handed over In June 2019 after completing the transaction.
“The divestment from Forte Oil and his acquisition of FO shares in Amperion Power Distribution Company Limited, the SPV for the acquisition of controlling shares in Geregu Power Plc, provided the ample opportunity to focus on the Power Sector as the Company’s executive chairman.
“This is a demonstration of his long-term interest in the Power sector dating back to 2007, when he took a strategic decision to participate in the Privatization Programme of the Nigerian government.”
It further said, Otedola has investments spread across various other interests including storage, shipping, and insurance brokerage in addition to port agency and petroleum retail outlets and he has built a formidable, value driven presence along the downstream value chain, saying, Otedola has a rich experience in corporate boards having held several board memberships, including president of the Nigerian Chamber of Shipping.
“He also served as the chairman of Transcorp Hilton Hotel, Abuja. He was appointed a member of the Governing Council of the Nigerian Investment Promotion Council (NIPC) in January 2004 and in December of the same year, he became a member of the committee saddled with the task of fostering business relationships between the Nigerian and South African Private sectors,” the firm stressed.
Meanwhile, a review of the stock market activities in January showed that the basic indicators of the Nigerian Stock Exchange (NSE), All-Share Index gained 36.11 per cent to close on January 31, 2024 at 101,154.46 basis points, from 74,773.77 points at which it opened for the year. Market capitalisation for the period rose by N14.440 trillion to close at N55.358 trillion as at January 31, 2023 from N40.918 trillion.
The sectoral performance closed positive as at January 26, 2024. The NGX Industrial Goods recorded the highest rise during the month with a gain of 96.43 per cent. The NGX Premium Board index followed with a monthly gain of 49.71 per cent, while NGX Lotus II index rose by 38.18 per cent in the month of January.
NGX 30 index recorded a monthly gain of 38.08 per cent, while NGX Insurance index achieved 35.35 per cent monthly gain. Others are NGX Consumer Goods, NGX Pension, NX Oil & Gas and NGX Banking indices recorded a monthly gain of 30.33 per cent, 23.66 per cent, 23.03 per cent and 13.89 per cent, respectively.
Capital market analysts said that January was a great month as the Nigerian stock market started the year 2023 on a bullish note, driven by positive sentiment from corporate earnings expectations.
Reviewing market performance for January, the chief executive officer, Sofunix Investment and Communications, Mr. Olusola Oni said that “2024 started with strong interest from Pension Fund Administrators (PFAs), especially in the banks stocks and this triggered a rally.
“The valuation of banks is believed to be sustainable. The sector is said to be undervalued. There are whispers that banks’ capital base would go up significantly and their shares would not trade below N100 per unit. By this assumption, there is a possibility of sustained upswing in the sector.”
Oni noted that with their renewed interest in equity investment on NGX, investors should seek professional advice from stockbrokers on how to make informed decisions to enhance their life cycle cash flow.
The chief operating officer of InvestData Consulting Limited, Ambrose Omordion said trading on the Nigerian Exchange started for the year on a bullish note, with indexes stock prices hitting new highs in the midst strong volatility, increasing economic headwinds and expectation of numbers such as the December Consumer Price Index and quarterly unaudited corporate earnings reports.
On market outlook for February, Omordion said “we expect mixed sentiments and profit taking to continue on bargain hunting and reactions to earnings reports, as market players digest these numbers in the face of volatility and coming Monetary Policy Committee (MPC) meeting, while pullback at this point will add more strength to upside potential. As such, investors should take advantage of price correction. Also looking at the trends and events across the globe and domestically.”
Speaking with LEADERSHIP, vice president, Highcap securities Limited, David Adnori said the anticipation for end-of-the-year dividend distribution lifted the stock market in January 2024, saying “the performance of the stock market in January is driven by shareholders’ expectation for the end of the year earnings and distribution of dividends.”
The All Share Index (ASI) lost by 1,955.69 points, yesterday, representing a loss of 1 90 per cent to close at 101,154.46 points. Also, market capitalisation declined by N1.068 tillion to close at N55.358 trillion.
The downturn was impacted by losses recorded in medium and large capitalised stocks, amongst which are; MTNN, Conoil, NASCON Allied Industries, Dangote Sugar Refinery and Guaranty Trust Holding Company (GTCO).
As measured by market breadth, market sentiment was negative, as 11 stocks gained relative to 57 losers. PZ Cussons Nigeria and Tripple Gee and Company recorded the highest price gain of 9.97 per cent each to close at N33.10 and N3.42 respectively, while Geregu Power followed with a gain of 9.69 per cent to close at N568.00, per share.
McNichols went up by 9.66 per cent to close at N1.59, while Veritas Kapital Assurance appreciated by 9.09 per cent to close at 60 kobo, per share. On the other hand, Lafarge Africa, May & Baker Nigeria, Royal Exchange, Transnational Corporations (Transcorp), UPDC, Zenith Bank and Sterling Financial Holdings Company led the losers’ chart by 10 per cent each to close at N36.00, N6.21, 72 kobo, N12.96, N1.80, N35.10 and N5.67 respectively, per share.
Conoil followed with a decline of 9.98 per cent to close at N101.00, while Japaul Gold & Ventures depreciated by 9.97 per cent to close at N2.62, per share.
The total volume traded increased by 15.44 per cent to 749.128 million units, valued at N22.492 billion, and exchanged in 14,288 deals. Transactions in the shares of Transcorp topped the activity chart with 79.679 million shares valued at N1.062 billion. United Bank for Africa (UBA) followed with 61.336 million shares worth N1.551 billion, while Zenith Bank traded 61.176 million shares valued at N2.257 billion.
Guaranty Trust Holding Company (GTCO) traded 47.913 million shares valued at N1.839 billion, while Access Holdings sold 43.489 million shares worth N1.044 billion.
