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Telecommunications giant- MTN plans to list its Nigerian unit worth $5.23bn by July in a debut Initial Public Offering (IPO) on the Nigerian Stock Exchange (NSE), just as it will raise fresh funds to reduce debt, according to pre-IPO presentation seen by Reuters. The listing of up to 20bn shares of MTN through a split of an existing unit into 50 units, is believed to be part of an agreement reached following the sanctions by the industry regulator- the Nigerian Communications Commission (NCC). MTN Nigeria, which is 70% owned by South African parent company, aims to raise at least $400 million from the IPO to pay preference shareholders and is preparing to file application to the Securities and Exchange Commission (SEC) to launch the offer after getting approvals from existing investors last week, sources with knowledge of the matter said. Ahead of this, a roadshow is planned for between May and June this year, while listing on Nigeria’s bourse is slated for between June and...

NIGERIA’S INDEX TURNS GREEN ON REALIGNMENTS INHEAVY WEIGHT, FINANCIAL SECTOR STOCKS Nigeria’s stock market had a spectacular Tuesday and a fantastic run up from the opening point of the session to continue its volatility on the strength of positive sentiments as market and economic fundamentals improved on the strength of the recently released corporate earnings and macro-economic data, which taken together tell a fantastic story. As we mentioned in our update for Monday, funds will continue to seek opportunities for better returns without losing sight of safety, especially when calculated risk are taken in the hope of higher returns. The inflow from retail foreign exchange by the CBN has in one way or the other improved money flow in the financial market.  The market opened on Tuesday with a little pullback that continued to move front and back in the mid-morning and then charged forward by midday to attain an afternoon peak of 37,541.88 after touching intrada...

INVESTORS, TRADERS RETURN AHEAD Q3, YEAR-END POSITIONING, ECONOMIC DATA INFLOW The nation’s stock market had a positive, even if volatile Monday to start the week in consolidation of the three trading sessions of up market as earnings speculation trading which had commenced earlier entered top gear with hope of more numbers hitting the bourse in the coming days. The first banking sector earnings report was made available by the directors of United Bank for Africa Plc during the session, giving an insight into the kind of third quarter reports that traders and investors should expect from its peers, especially the first tier stocks. The day opened slightly up before having back and forth movement by the mid-morning trading as it searched for intraday direction until midday when highly capitalized stocks appreciated in value amidst continued positioning ahead of their nine-month numbers. As a result of this, there was an increased demand for banking, consumer goods, agribu...

MARKET UPDATE FOR AUGUST 23, 2017 Nigeria’s stock market continued its volatility on Wednesday but closed positive, as technicals remained mix. The day began with a big gap up and then a pullback to support, which could not pull through, before bouncing back up to break through the resistance level again at the 37,000 psychological line after more than triple test of this level in the previous trading days as the market searched for direction. The index tried to rebound in the afternoon and indeed achieved a new nominal-session high above resistance at 37,059.21. Market sentiment at the mid-week trading session was mixed as revealed by the volume traded index of 0.51. Buying position for the day stood at 68%,while selling volume was 32% of total transaction to maintain positive trend from previous day’s position as Access Bank released its half year earnings report with a 25 kobo interim dividend (just like last year) that met investing public expectation, as UBA, Stanbic...

VOLATILITY LINGERS, AMID PROFIT TAKING, PORTFOLIO REALIGNMENT ON Q2 NUMBERS, ECONOMIC DATA Nigeria’s stock market got a hit on Tuesday to continue its volatility with all the indices gapping down sharply as investorsintensified profit booking and late reaction to the global political tensions with North Korea withdrawing its threat to drop missile inUS territory. The market was up slightly in the first hour, but came down sharply by midday and afternoon, looking likean intra-day bottom was in view. An important resistance could not be taken out, while the intraday pullback was held near the trading session lows to close the day lower on high volume. The intraday high and low of the index were 37,954.43 and 37,007.13 respectively.  Going by these realities, INVESTDATA Research believes investors and traders should play the market with knowledge to protect funds and maximize profit, even as we note that doing this entails good money management when trading and investing...