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Unity Bank to raise N24bn via rights issue

Michael Eboh & Providence Obuh
Unity Bank Plc has  announced its plans to raise N24 billion from the Nigerian capital market through a rights issue that is scheduled to commenced within the next couple of weeks.

The bank, which was one of the banks found wanting by the Central Bank of Nigeria, was given until June 30 to shore up its allegedly depleted capital base.

According to the application to undertake the offer, presented to the Nigerian Stock Exchange (NSE), Tuesday, which was made available to the investing community, the bank plans to conduct a right issue of 23.928
billion ordinary shares of 50 kobo each at N1.00 per share, which is to be issued on the basis of three new shares for every two held by its shareholders as at April 27, 2010.

Meanwhile, the declining trend on the Nigerian Stock Exchange (NSE) worsened, Tuesday, as only fifteen stocks recorded price appreciation, forcing down the value of listed equities by N166.51 billion.

Market analysts have blamed the current decline on profit-taking activities of investors and panic over recent comments of the Central Bank of Nigeria (CBN) regarding usage of share certificates as collateral for loan facilities.
However, the CBN, Monday denied asking banks to stop accepting share certificates as collateral for loans.

Equities’ value, represented by the market capitalisation dropped by 2.6 per cent to close at N6.352 trillion from N6.519 trillion at which it opened.

The All-share index shed 688.43 basis points to close at 26,263.67 points from 26,952.10 points at which it commenced the day’s trading.

On the sideline of trading activities, Skye Bank Plc announced it first quarter financial results, recording a significant decline in its major financial indices.

According to its first quarter ended, March 31, 2010 financial statement presented to the NSE, its turnover dropped by 0.04 per cent to N23.77 billion from N23.78 billion recorded in the comparable period of 2009,  its profit before tax dropped by 47.66 per cent to N2.80 billion from N5.35 billion recorded in 2009, while its profit after tax depreciated by 47.62 per cent to N2.24 billion from N4.28 billion recorded in 2009.

Mobil Oil Nigeria, recorded a 65.37 per cent growth in its profit after tax in its fourth quarter ended, December 2009 to N2.84 billion. This was in spite of a drop in its turnover by 7.05 per cent to N62.03 billion.

Consequently, Mobil recorded the most share price gain, rising by N8.13 to close at N182.99 per share, CAP Plc followed with a gain of N1.48 to close at N31.15 per share and UAC Property Development Company Plc garnered N1.00 to close at N23.50 per share.

On the contrary Oando Oil Plc recorded the most share loss, dropping by N5.50 to close at N114.50 per share, Julius Berger Nigeria Plc followed with a loss of N3.08 to close at N58.61 per share and UAC Nigeria Plc shed N2.64 to close at N50.36 per share.

Other share price losers include: Dangote Flour Mills Plc N1.09, Okomu Oil Palm Plc N1.08, Ashaka Cement Plc N1.05, Cement Company of Northern Nigeria Plc N1.04, Glaxo Smithkline Consumer Plc N0.99, Ecobank Transnational Incorporation Plc N0.95, Guaranty Trust Bank Plc N0.87, among others.

Equities trading dropped by 29.71 per cent of the market turnover, while 387.54 million shares valued at N3.695 billion was recorded in 8,216 deals as against the previous day turnover of 551.36 million valued at N5.898 billion in 8,669 deal.

The Banking sub_sector led on the sectorial analysis accounting for 50.45 percent of the market turnover as 195.53 mi8llion shares valued at N1.803 billion was recorded in 3,977 deal.

Skye Bank Plc emerged as the most active in the sector trading 61.35 million shares valued at N45.92 million in 300 deal, followed by First Bank Plc with the exchange of 32.44 million shares valued at N51.53 million in 1,292 deal and Guaranty Trust Bank Plc with the exchange of 16.30 million shares valued at N27.57 million in 606 deal.

The Insurance sub_sector followed on the sectorial analysis accounting for 22.88 percent of the market turnover as 88.70 million shares valued at N67.70 million was recorded in 452 deal.

Mutual Benefit Assurance Plc emegerged the most active in the sector trading 14.63 million shares valued at N7.75 million in 26 deal, followed by Continental Reinsurance Plc with the exchange of 14.29 million shares valued at N16.47 million in 25 deal and Niger Insurance Company Plc with the exchange of 8.66 million shares valued at N12.38 million in 106 deal.
File name: Stock Monday, 27 April 2010


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