Partnership deal buoys Nico Holdings share price

Nico Holdings Limited’s 5.6 percent jump in share price could be attributed to a ‘successful’ equity partnership deal with Sanlam, a South African-based life insurer, and strong half year results, according to FDH Stockbrokers Limited weekly market wrap.

Sanlam is expected to buy 49 percent stake in each of the financial services group’s general insurance businesses in Malawi, Zambia, Uganda and Tanzania, in a deal expected for approval on November 4 2013.

“Nico’s upward shift of 85 tambala [from K15.15 to K16 per share] is somewhat justifiable in the face of successful equity partnership with Sanlam and notable half year results,” said FDH Stockbrokers Limited in a weekly commentary.

In a week the 14-counter market remained bullish, Standard Bank gained 1.4 percent to close the week at K365.25 from K360 per share on the back of 70 066 shares that changed hands.

“It is not clear though if the demand at the current price is still backed by notable half year performance of the bank,” said the market analysis.

The market report shows that 37 deals were closed in the week raising K98.1 million [$252 573.98] on the back of eight counters, National Bank of Malawi, NBS Bank, Nico Holdings, National Investment Trust Limited, Real Insurance Company of Malawi Limited, Standard Bank, Sunbird and TNM plc, that registered trading activity.