Tag: Stock market

  • “Stock Market Begins Week on Positive Note, Registers N75bn Gains”

    “Stock Market Begins Week on Positive Note, Registers N75bn Gains”

    The domestic stock market started the week with a positive trajectory, recording a gain of N75 billion, primarily driven by investor interest in MTN Nigeria Communications (MTNN) Plc and 24 other stocks.

    This led to a rise of 0.21% in the All-Share Index, representing a significant increase of 138.63 points, culminating in a closing value of 65,336.71 points. Furthermore, the overall market capitalization saw an uptick of N75 billion, settling at N35.555 trillion.

    The positive performance was fueled by the upward movement of prices in large and medium capitalization stocks, particularly MTNN, Nigerian Enamelware, BUA Foods, GlaxoSmithKline Consumer Nigeria, and Cadbury Nigeria.

    United Capital Plc anticipates the bullish sentiment to persist in the equities market due to its appeal in contrast to the subdued rates within the fixed-income market. Additionally, the positive market sentiment tied to new policy directions and Nigeria’s improved S&P outlook from ‘negative’ to ‘stable’ is expected to sustain the ongoing market rally.

    Market breadth remained balanced with 25 gainers and 25 losers. Nigerian Enamelware achieved the highest price gain of 9.86%, closing at N19.50 per share. Wema Bank followed with a 9.77% gain, closing at N4.72, while University Press saw a rise of 9.73%, closing at N2.48 per share.

    Conversely, Omatek Ventures led the decliners with an 8.82% drop, closing at 31 kobo per share. Prestige Assurance came next with a 7.84% decline to close at 47 kobo, while McNichols recorded a 7.35% loss, closing at 63 kobo per share.

    Trading volume decreased by 7.9% to 334.33 million units, valued at N3.89 billion, executed across 6,940 deals. Sterling Financial Holdings Company dominated the activity chart with 55.141 million shares worth N197.266 million. FCMB Group followed with 28.249 million shares worth N173.844 million, and Fidelity Bank traded 18.842 million shares valued at N150.847 million.

    Japaul Gold & Ventures accounted for 17.356 million shares valued at N17.019 million, while Access Holding transacted 17.101 million shares worth N296.636 million.

  • Stock market closes positive, index gains by 1.64%

    Stock market closes positive, index gains by 1.64%

    Trading on the Nigerian bourse closed positive on Friday with the All-Share Index (ASI) increasing by 1.64 per cent to 49,638.94 from 48,837.76 on Thursday.

    Similarly, the market capitalisation grew by N432 billion to N26.761 trillion from N26.33 trillion recorded on Thursday.

    The market breadth closed positive as 36 stocks advanced against 12 stocks that declined.

    NEM Insurance recorded the highest price gain of 10 per cent to close at N4.40 per share.

    Academy Press followed with a gain of 9.70 per cent to close at N1.47 per share, while Cadbury rose by 9.63 per cent to close at N10.25 per share.

    Champion rose by 9.57 per cent to close at N2.52 while Julius Berger gained 9.35 per cent to close at N30.40 per share.

    On the other hand, NPF Micro finance Bank led the losers’ chart by 10 per cent to close at N1.98 per share.

    Trans Express declined by 8.99 per cent to close at 81k while Eterna depreciated by 7.38 per cent to close at N6.02 per share.

    Conerstone followed with a decline of 4.84 per cent to close at 59k per share, while Dangote Sugar lost 4.42 per cent to close at N16.20 per share.

    Meanwhile, shares of Transcorp led the volume chart with 36.078 million shares valued at N42.21 million.

    AIICO followed with 27.08 million shares worth N20.89 million, while First City Monument Bank (FCMB) traded 22.09 million shares valued at N84.61 million.

    First Bank Nigeria Holdings (FBNH) traded 16.5 million shares valued at N196.95 million, while Access Bank (AccessCorp) transacted 15.49 million shares worth N150.49 million.

  • Stock Market Shrugs Off Insecurity Worries, Gained N3.02trn in Q1

    Stock Market Shrugs Off Insecurity Worries, Gained N3.02trn in Q1

    The market capitalisation of the Nigerian Exchange Limited (NGX) gained N3.02 trillion in the first quarter (Q1) of 2022, notwithstanding the growing insecurity concerns in the country.

    The market performance was buoyed by impressive corporate earnings by major listed companies that saw some of them delivering robust dividend payout to shareholders.

    Precisely, the market capitalisation gained N3.02 trillion to close on March 31, 2022, at N25.312 trillion, higher than the N22.297 trillion it opened for trading activities on January 4, 2021.

    The NGX All-Share Index (ASI), which tracks the general market movement of all listed companies on the Exchange, also rose by 9.95 per cent to close at 46,965.48 basis points in the first Q1 2022.
    Data compiled by THISDAY revealed that the sectoral performance of the NGX was bullish, as most indices closed the period on uptrend as at March 25, 2022.

    For instance, the NGX Oil & Gas Index appreciated the most by 28.12 per cent. It was closely followed by the NGX Banking Index, which recorded a gain of 8.55 per cent, while the NGX Premium Board Index rose by 6.34 per cent.
    Others were the NGX Pension, NGX Industrial Goods, NGX 30, and NGX Lotus II that went up by 6.34 per cent, 5.63 per cent, 5.39 per cent, 4.37 per cent, and 1.18 per cent, respectively.

    On the other hand, the NGX Insurance and NGX Consumer Goods recorded year-to-date decline of 6.35 per cent and 4.21 per cent respectively, as at March 25, 2022.

    On a monthly review, the Nigerian bourse witnessed positive price movements leading to a bull-run throughout January 2020, during which it closed with a 9.1 per cent month-on-month growth in the All-Share Index, and extended the gains by 1.7 per cent in February. During the period, BUA Foods got listed, boosting the market capitalisation by N720 billion.

    Speaking on the market performance in Q1 2022, Chief Operating Officer of InvestData Consulting Limited, Ambrose Omordion, said the stock market sustained positive sentiment and uptrend due to the influx of corporate actions and 2021 audited financials, as players reacted to the released numbers and dividend declared for year-end 2021 earnings.

    Omordion said that was expected to support an uptrend during the earnings season, amid the oscillating oil prices, just as the market continues to interpret economic data in relationship with crude oil price and other factors, in the midst of profit-taking and portfolio rebalancing.

    “This resulted in market players targeting fundamentally sound and dividend-paying stocks, as 2021 Q4 GDP was up at 3.98 per cent, while the International Monetary Fund called for a hike in the interest rate and further devaluation of the naira,” he added.

    On the market outlook, Omordion projected mixed sentiment trading by investors in April and beyond, saying all eyes would be on the performance of the economy and how the country’s economic managers would navigate challenges, which included insecurity and activities externally.

    According to him, investors would also be concerned about on-going war in Ukraine, energy supply chain distortion that had been one of the major factors driving inflation, insecurity, among other factors that have pushed cost of production, goods and services higher.

    He added, “To invest profitably in this changing environment, you need investment education, trading plans and trading tools/software. These will help manage risk associated with volatility and unstable markets.”
    An analyst at PAC Holdings, Mr. Wole Adeyeye, said investors priced in the dividend payout out by the listed companies, which according to him drove market performance.

    Adeyeye said, “Investors have already priced in the dividend in January and February and that is why the market maintained positive growth during the period. However, there was profit-taking in March as most investors did not bother to wait for the dividend payment date.”
    He predicted that in April, the stock market might witness cautious investors’ trading due to the uncertainties surrounding the economy.

  • Stock Market Gains N1.33trn in First Trading Week

    Stock Market Gains N1.33trn in First Trading Week

    The Nigerian Exchange Limited (NGX) kicked off the first trading week of 2022 on a positive note as its market capitalisation gained N1.33 trillion. This followed foreign investors’ and high net worth investors’ demand for Airtel Africa Plc, BUA Foods, Lafarge Africa Plc, and FBN Holdings Plc, which pushed market capitalisation to N23.628 trillion from the N22.296 trillion the stock market opened with trading on the first day.

    Notably, the demand for Airtel Africa gained 10 per cent to close at N1,050.50; bargain hunting in BUA Foods appreciated by 9.9 per cent to close at N53.20; Lafarge Africa gained 7.7 per cent to close at N25.80; and FBN Holdings added four per cent to close at N11.85, and spurred the weekly gain.
    The stock market benchmark, the NGX All-Share Index, also advanced by 2.7 per cent on its Week-on-Week (WoW) performance to close at 43,854.42 basis points, from the 42,716.44 basis points it closed in 2021.

    Despite trading four days in the week as the federal government had declared last Monday a public holiday to mark the new year celebration, all other indices finished higher with the exception of NGX Premium, NGX insurance, NGX AFR Div Yield, NGX Meri Growth, NGX Consumer Goods, NGX Lotus II Indices, which depreciated by 0.47per cent, 0.93 per cent, 0.97 per cent, 0.66 per cent, 0.87 per cent, and 0.12 per cent, respectively, while the NGX ASeM and NGX Sovereign bond indices closed flat.
    Activity levels were strong, as trading volume and value surged by 103.7per cent w/w and 246.8per cent w/w, respectively.

    Meanwhile, a total turnover of 2.027 billion shares worth N59.014 billion in 15,750 deals were traded last week by investors on the floor of the Exchange, in contrast to a total of 995.361 million shares valued at N13.209 billion that exchanged hands prior week’s 10,264 deals.

    The Consumer Goods Industry (measured by volume) led the activity chart with 1.255 billion shares valued at N 51.973 billion traded in 2,581deals; thus contributing 61.90per cent and 88.07per cent to the total equity turnover volume and value respectively.

    The Financial Services Industry followed with 537.959 million shares worth N4.627 billion in 8,015 deals. The third place was The ICT Industry, with a turnover of 76.906 million shares worth N704.346 million in 933 deals.

    Trading in the top three equities namely BUA Foods, Wema Bank Plc, and Transnational Corporation of Nigeria Plc (measured by volume) accounted for 1.349 billion shares worth N51.253 billion in 1,120 deals, contributing 67 per cent and 86.85 per cent to the total equity turnover volume and value respectively.

    According to analysts at Cordros capital, “In the near term, we believe positioning for 2021FY dividends will continue to support buying activities in the market even as institutional investors continue to search for clues on the direction of yields in the FI market.
    “However, we advise investors to take positions in only fundamentally justified stocks as the weak macro environment remains a significant headwind for corporate earnings.”
    Analysts also believe that the early passage of the 2022 budget would be positive for the stock market.

  • Stock Market Investors Gain N875bn in 10 Months

    Stock Market Investors Gain N875bn in 10 Months

    The stock market has appreciated by N875 billion in the first 10 months of 2021, due to investors’ renewed interest in listed undervalued stocks and impressive nine months corporate earnings of listed companies on the Nigerian Exchange Limited (NGX).

    According to findings, the market capitalisation of equities on the NGX appreciated by 4.2 per cent to close on October 29, 2021, at N21.938 trillion, up from the N21.063 trillion the market opened for trading this year.

    On the other hand, the NGX All-Share Index also appreciated by 4.4 per cent or 1,767.88 basis points from the 40,270.72 basis points it opened at the beginning of 2021, to 42,038.60 basis points.

    The equities market in 2021 has been confronted with foreign investors’ exit, double-digit inflation rate that discourage investment as well as movement of liquidity to money market instruments.

    According to NGX’s domestic and foreign portfolio participation in equity trading, domestic investors as at September 2021 dominated transactions with 78.43 per cent year-to-date (YtD), while foreign investors recorded 21.57 per cent total transactions in the period under review.

    Analysts noted that inflation rate at an average of 17.4 per cent between January and September of 2021 contributed to investors dumping the equities market for money market instruments.

    The equities market in January started on a positive note having gained N8 trillion in 2020, by appreciating by N1.124 trillion in January 2021.

    Capital market analysts had stated that January equities market performance was another great month in the history of the nation’s capital market, extending the sharp market recovery and bull ascendance, driven by positive sentiment, inflow of funds from the fixed income market, oscillating oil price, among other factors.

    The positive sentiments that pervaded the stock market between January and February was cut short-lived over the anticipated reversal in the yields on fixed income (FI) instruments that weakened investors’ appetite for stocks in months that followed.

    The market capitalisation also lost a total of N1.297 trillion in the first half (H1) of 2021 to N19.760 trillion as investors moved to fixed income instrument.

    However, in the 10 months under review, the equities market indicators recorded mixed performance based on domestic and foreign macro economy conditions.

    For instance, the National Insurance Commission (NAICOM) suspension of its insurance sector recapitalisation led to a decline in the NGX Insurance index by 5.06 per cent to close October at 197.92 basis points from 189.50 basis points it opened in 2021, while NGX Banking Index appreciated by 4.42per cent to 410.39 basis points from 393.02basis points it opened this year.

    The NGX Consumer good index also dropped by 0.67 per cent basis points to 569.51 basis points, while the NGX Oil/Gas index leads all other market indices in 10 months to close at 72.81 per cent from 226.20 basis points it opened in 2021 to close October 29, 2021 at 390.90basis points.

    A stockbroker and capital market analyst, Mr. Rotimi Fakayejo attributed the oil and gas index performance growth to impressive corporate earnings posted by listed petroleum marketing companies, stressing that the enactment of the Petroleum Industry Act also played a critical role in lifting the index higher in the 10 months under review.

    On the other hand, NGX Industrial, Lotus II, and Premium indices recorded a year-to-date gain of 6.09 per cent, 3.26per cent, and 18.67 per cent respectively as at October 29, 2021.

    In a chat with THISDAY, Managing Director, Highcap Securities Limited, Mr. David Adnori, attributed stock market gain in the first 10 months of 2021, to impressive listed companies’ nine months corporate earnings and improved macroeconomic conditions.

    According to him: “The rising price of crude oil also increased demand for stocks on the NGX. The growth may extend to year end as most Q3 results are fantastic.
    “The rebound in the stock market is expected to extend till year ended because of steady increase in global oil prices.

    “The recovery of the stock market could have been better but insecurity in the nation’s led to hike in inflation rate and investors have to react negatively.”

    Analyst at PAC Holdings, Mr. Wole Adeyeye, explained that: “Most investors took advantage of undervalued stocks in the stock market in the 10-month to October 2021.

    “Also, some investors increased the equity portion of their portfolios, especially in the second half of 2021 due to relatively lower yields in the fixed income market.”

    Analysts at Cordros Capital in a report, noted that, “despite the yield retracement in the first half, we do not think investors should give up on the possibility of a market rally in the second half of the year as we still see scope for positive market performance.”

  • Nigeria stock market starts the month on a negative note – Investors lost N30bn on stock exchange

    Nigeria stock market starts the month on a negative note – Investors lost N30bn on stock exchange

    Investors lost N30bn on Monday as the Nigerian stock market started the month on a negative note amid profit-taking, ending a five-day gaining streak.

    The market capitalisation of equities listed on the Nigerian Stock Exchange had risen by 3.44 per cent last week as the market continued its upward trend for five consecutive trading sessions.

    Investors gained over N1tn in January as the market capitalisation rose to N22.19tn on Friday from N21.06tn at the start of the month.

    The NSE All-Share Index, however, dropped by 0.13 per cent on Monday to 42,357.90 basis points from 42,412.66bps last Friday, while the market capitalisation fell to N22.16tn from N22.19tn.

    Twenty-eight stocks recorded price reduction on Monday, with Royal Exchange Plc topping the losers’ table as its share price dipped by 10 per cent to N0.36.

    Guinea Insurance Plc saw its share price shed 9.09 per cent to close at N0.20, while African Alliance Insurance Plc dropped by eight per cent to close at N0.23 per share.

    Julius Berger Nigeria Plc depreciated by 7.28 per cent to close at N21 per share, while Multiverse Mining and Exploration Plc lost 4.55 per cent to close at N0.21 per share.

    Thirty-five stocks recorded gains at the close of trading on Monday, with Honeywell Flour Mill Plc leading the park as it rose by 10 per cent to close at N1.43 per share.

    Champion Breweries Plc appreciated by 9.97 per cent to close at N3.42 per share, while McNichols Plc increased by 9.80 per cent to N0.56 per share.

    Wapic Insurance Plc gained 9.26 per cent to close at N0.59 per share, while Jaiz Bank Plc increased by 9.23 per cent to close at N0.71 per share.