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Thursday, May 26, 2022

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Union Bank share gains for 2nd consecutive day on Titan Trust takeover, NGX index up, Naira weakens

By Samuel Bankole 

Share in Union Bank Nigeria Plc gained for the second consecutive day after three year old Titan Trust Bank bought majority stake in the 104 year old lender.

Union Bank shares had rose 9.78 percent to close at N5.05 per share after the lender announced that its majority shareholders Global Partners Limited, Atlas Mara Limited and other existing shareholders agreed to divest 89.39 percent and sold to Titan Trust Bank, which was licensed in 2019 by the Central Bank of Nigeria (CBN) on Thursday.

The lender also gained 9.90 percent on the floor of the Nigerian Exchange during Friday’s trading session to close at N5.55 per share, helping to lift the market main index by 0.08 percent.

The All Share Index marginally increased by 0.08 percent to close at 42,262.85 points, driven by gains in Union Bank, Lafarge Africa, Fidelity Bank and Zenith Bank share gains.

Lafarge Africa gained 3.32 percent, Fidelity Bank ticks up 1.96 percent while Zenith Bank rose by 0.83 percent.

The market capitalisation of equities listed on the NGX increased to N22.06 trillion from N22.043 trillion the previous day.

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The total volume traded closed with an exchange of 111.843 million units valued at N0.91 billion traded in 2,072 deals. However, the market breadth was negative with 12 gainers as against 13 losers.

The NGX 30 Index increased by 0.13 percent to close at 1,700.61 points as against 1,698.44 points as on the previous close. Market turnover closed with traded volume of 52.28 million units.

Tunde Lemo, who is the board chairman of Titan Trust Bank had described the deal, which saw the three years old lender taking over the majority stake in the 104 year old Union Bank as a unique opportunity fot TTB.

“The deal represents a unique opportunity to combine Union Bank’s longstanding and
leading banking franchise with TTB’s innovation-led model which promises to enhance
the product and service offering for our combined valued customers,” Lemo said after the announcement of the deal that led to the takeover of the Union Bank.

Meanwhile, the local currency weakened on the Investors and Exporters’ (I&E) forex window by 0.09 percent to close at N415.10 against N414.73 to the dollar on the previous day.

Most participants at the official forex window maintained bids between N405.00 and N444.00 per dollar, traders said.

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