The Nation Newspaper

Tag: bargain-hunting

  • Equities rally N29b gain amid bargain-hunting

    Nigerian equities yes-terday broke a two-day downtrend with a net capital gain of N29 billion as investors sought to take advantage of low share prices. With more companies releasing their half-year results, investors traded on a tit-for-tat to moderate the downtrend that had shaped transactions in the previous trading sessions.

    Average gain yesterday stood at 0.22 per cent, equivalent to net capital gain of N29 billion. Average year-to-date return, though still negative, improved marginally to -4.75 per cent.

    The All Share Index (ASI)-the value-based index that tracks share prices at the Nigerian Stock Exchange (NSE), increased from its opening index of 36,346.80 points to close at 36,427.22 points. Aggregate market value of all quoted equities improved from N13.167 trillion to close at N13.196 trillion. With 20 gainers and losers each, the positive overall market position was driven by gains recorded by large-cap stocks.

    Sectoral indices showed considerable underlying positive trend as all indices closed on the upside. The NSE Banking Index and NSE Insurance Index rose by 0.8 per cent each. The NSE Consumer Index and NSE Industrial Goods Index appreciated by 0.2 per cent while the NSE Oil and Gas Index inched up by 0.1 per cent.

    Nestle Nigeria led the gainers with a gain of N51 to close at N1,501. Cement Company of Northern Nigeria appreciated by N2.30 to close at N28.50. NASCON Allied Industries rose by 50 kobo to close at N20.50. Zenith Bank increased by 45 kobo to close at N23.70. Cutix gathered 39 kobo to close at N4.38 while FBN Holdings rose to 25 kobo to close at N9.65 per share.

    On the downside, International Breweries led the losers with a drop of N2 to close at N35.50. Flour Mills of Nigeria followed with a loss of N1.50 to close at N27.20. Dangote Cement declined by N1 to close at N234. Custodian Investment lost 54 kobo to close at N5.56 while Dangote Sugar Refinery and Nigerian Breweries dipped by 50 kobo each to close at N15 and N104 respectively.

    Total turnover stood at 171.22 million shares valued at N2.98 billion in 3,595 deals. Zenith Bank was the most active stock with a turnover of 30.29 million shares worth N717.23 million. United Bank for Africa followed with a turnover of 21.71 million shares worth N205.71 million while FCMB Group placed third with 19.01 million shares worth N35.97 million.

    “We expect the market to close the week in the green, supported by bargain hunting in fundamentally sound stocks as observed in today (Thursday)’s trading session,” Afrinvest Securities stated.

     

     

  • Investors recover N672b amid bargain-hunting

    Investors in Nigerian equities rode on the back of renewed bargain-hunting to recover N672 billion in net capital gains by the weekend after losing some N908 billion the previous week.

    Benchmark indices for Nigerian equities showed a major rally with average net capital gain of 5.03 per cent during the five-day trading session, equivalent to net capital gain of N672 billion. The sustained rally reversed the negative average year-to-date return of -3.73 per cent or a net loss of N273 billion recorded two weeks ago. Average year-to-date return turned positive at 1.11 per cent at the weekend.

    GTI Capital Chief Operating Officer, Mr Kehinde Hassan, said the recovery was driven by bargain-hunting by institutional investors, who sought to take advantage of the recent decline in share prices.

    He said the trading momentum, despite the profit-taking dip in the last trading session at the weekend, suggested that the price recovery will continue this week.

    Analysts at Cordros Capital stated that “relatively lower prices of value stocks, coupled with still-positive macro-economic fundamentals, will further sustain gains in the equities market”.

    Aggregate market value of all quoted equities at the Nigerian Stock Exchange (NSE) rose from the week’s opening value of N13.336 trillion to close weekend at N14.008 trillion. The All Share Index (ASI)-the main index that tracks share prices at the Exchange, rallied from the week’s opening index of 36,816.29 points to close at 38,669.23 points.

    Total turnover at the equities market stood at 1.75 billion shares worth N31.18 billion in 24,604 deals last week compared with a total of 2.70 billion shares valued at N84.78 billion traded in 19,715 deals two weeks ago.

    A breakdown of the trading pattern showed that the financial services sector accounted for 1.42 billion shares valued at N19.72 billion in 13,950 deals; representing 81.4 per cent and 63.2 per cent of the total equity turnover volume and value respectively. The consumer goods sector followed with 153.105 million shares worth N6.805 billion in 4,512 deals while conglomerates sector placed third with a turnover of 60.47 million shares worth N186.60 billion in 905 deals.

    Banking stocks dominated the activities chart with the trio of Guaranty Trust Bank Plc, Access Bank Plc and Zenith Bank International Plc leading the chart with a turnover of 588.61 million shares worth N16.57 billion in 4,120 deals, representing 33.65 per cent and 53.14 per cent of the total equity turnover volume and value respectively.

    Further analysis indicated that industrial and consumer goods stocks were the major drivers of the rally last week. The NSE Industrial Goods Index recorded average week-on-week gain of 9.36 per cent, appreciating by 6.55 per cent. The NSE Banking Index posted a gain of 4.48 per cent. The NSE 30 Index, which tracks the 30 most capitalised stocks, rallied by 5.25 per cent. However, the NSE Oil and Gas Index declined by 1.34 per cent while the NSE Insurance Index dropped by 0.61 per cent.

    The market had witnessed its worst decline with a net loss of N908 billion two weeks ago. The week-on-week average decline of 6.38 per cent eroded positive return and left the market with average negative return of -3.73 per cent penultimate weekend.

    The profit-taking fluctuations, which had started in March, worsened considerably into a swinging sell-off last month. Nigerian equities lost N1.15 trillion in May 2018, equivalent to average month-on-month decline of 7.67 per cent.  Nigerian equities had lost N557 billion in March and showed restraint with a modest loss of N44 billion in April.

    Nigerian equities had last January hit all-time high market capitalisation of N15.3 trillion while the ASI had risen to 43,041.54 points, its highest index points since October 2008. The ASI had opened 2018 at 38,243.19 points while total market value of quoted equities opened the year at N13.609 trillion.

    Nigerian equities had closed 2017 with full-year average return of 42.30 per cent, ranking within the top 10 best-performing equities across the world. Aggregate market value of quoted equities closed 2017 with net capital appreciation of N4.36 trillion.

    Most analysts expected Nigerian equities to record double-digit gain this year, despite the political risks of political transition.

    FSDH stated that Nigerian equities have potential to generate average return of 27.43 per cent in 2018, building on the average gain of 42.3 per cent recorded in 2017.

    FBNQuest Capital Limited, the investment banking subsidiary of FBN Holdings Plc, predicted that the Nigerian equities market would sustain a bullish run for the second consecutive year with a double digit return of 25 per cent in 2018.

  • Equities set for rebound as bargain-hunting picks up

    Nigerian equities appeared set for a rebound in the next trading sessions as investors seemed to be shifting from profit-taking to bargain-hunting. Nigerian equities had traded in recent weeks largely on the downtrend, depressed by profit-taking transactions that sought to monetise gains made in the early weeks of the year.

    Nigerian equities closed March 2018 with a month-on-month net capital depreciation of N557 billion, and followed this with a loss of N234 billion in the first trading session of April 2018. The momentum of bargain-hunting however picked up yesterday, although the market remained down with a net loss of N39 billion.

    Benchmark indices at the Nigerian Stock Exchange (NSE) indicated average day-on-day decline of 0.26 per cent, equivalent to net capital depreciation of N39 billion. The average year-to-date return slipped to 6.77 per cent.

    With 18 gainers against 26 losers and increased level of activities, most analysts expected a rebound in the overall market position, citing the attractive share prices.

    “Following two consecutive days of decline, we do not rule out the possibility of a rebound in performance driven by bargain hunting in subsequent trading session,” Afrinvest Securities stated.

    Analysts at Cordros Capital noted that despite extended weakness, “strengthening macroeconomic fundamentals, as well as relatively softer prices in value stocks, continue to point to likelihood of gains on the bourse”.

    The All Share Index (ASI)-the benchmark pricing index at the NSE, declined from its opening index of 40,855.64 points to close at 40,749.86 points. Aggregate market value of all quoted equities also dropped from its opening value of N14.759 trillion to close at N14.720 trillion.

    Most sectoral indices closed negative. The NSE Banking Index declined by 0.9 per cent. The NSE Insurance Index dropped by 0.6 per cent while the NSE Consumer Goods Index dipped by 0.3 per cent. On the positive side, the NSE Industrial Goods Index improved by 0.6 per cent while the NSE Oil & Gas Index inched up by 0.1 per cent.

    Zenith Bank led the losers with a loss of N2.45 to close at N27.35. Mobil Oil Nigeria followed with a loss of N2 to close at N183. Dangote Flour Mills lost N1.45 to close at N13.75. Ecobank Transnational Incorporated declined by 65 kobo to close at N16.35. Flour Mills of Nigeria and Nascon Allied Industries dropped by 50 kobo each to close at N36.80 and N21 respectively while Eterna declined by 31 kobo to close at N6.01 per share.

    On the positive side, Forte Oil led the gainers with a gain of N1.10 to close at N41.90. Stanbic IBTC Holdings followed with a gain of N1 to close at N49. Guaranty Trust Bank rose by 90 kobo to close at N44.30. Access Bank and Lafarge Africa added 55 kobo to close at N11.80 and N44 while Union Bank of Nigeria rose by 25 kobo to close at N6.95 per share.

    Total turnover stood at 401.41 million shares valued at N6.77 billion in 5,370 deals. FBN Holdings was the most active stock with a turnover of 70.76 million shares valued at N863.58 million. Zenith Bank followed with a turnover of N61.23 million shares worth N1.67 billion while Fidelity Bank placed third with 43.70 million shares worth N109.84 million.

    “Despite the current bearish theme, we do not rule out the possibility of a rebound in performance driven by bargain hunting in badly beaten counters,” SCM Capital stated.

  • Equities gain N285b bargain-hunting

    Equities gain N285b bargain-hunting

    Nigerian equities netted more than N285 billion last week as investors increased bargain-hunting for value stocks ahead of impending inflow of the third quarter corporate earnings.

    All major indices at the Nigerian Stock Exchange (NSE) showed a largely positive market with sustained rally in the last three consecutive trading sessions.

    The All Share Index (ASI), the benchmark pricing index for the Nigerian stock market, closed the weekend with average-week-on-week gain of 2.49 per cent, equivalent to capital gain of N304 billion. However, the cancellation of shares by United Bank for Africa (UBA) reduced the net capital gain to N285 billion. A total volume of 2.080 billion ordinary shares of UBA were cancelled during the week, pursuant to a resolution passed at UBA’s annual general meeting in April 2016 to cancel the shares held by its Staff Share Investment Trust Scheme (SSITS). The total outstanding ordinary shares of UBA before the cancellation was 36.28 billion, while the total outstanding ordinary shares after the cancellation is 34.199 billion ordinary shares.

    The sustained rally pushed the average year-to-date return for Nigerian equities to 35.15 per cent at the weekend.

    The ASI rose from its week’s opening index of 35,439.98 points to close the week at 36,320.93 points. Aggregate market value of all quoted equities closed the weekend higher at N12.502 trillion as against the week’s opening value of N12.217 trillion.

    Nearly all sectoral indices also closed positive, setting the fourth quarter on a positive trajectory. The NSE 30 Index posted a return of 2.77 per cent. The NSE Banking Index appreciated by 3.17 per  cent. the NSE Consumer Goods Index rose by 1.42 per cent. The NSE Oil and Gas Index appreciated by 1.80 per cent while the NSE Consumer Goods Index led the rally with a week-on-week return of 6.15 per cent. However, the NSE Insurance Index depreciated by 1.21 per cent.

    Total turnover stood at 1.49 billion shares worth N15.11 billion in 14,549 deals last week, higher than a total of 1.33 billion shares valued at N14.09 billion traded in 14,703 deals in the previous week. The financial services sector led the activity chart with 1.29 billion shares valued at N10.12 billion traded in 8,334 deals; representing 86.3 per cent and 66.99 per cent to the total equity turnover volume and value respectively. The consumer goods sector staged a distant second on the activities chart with 89.259 million shares worth N3.154 billion in 2,760 deals. The conglomerates sector ranked third with a turnover of 49.36 million shares worth N113.74 million in 491 deals.

    Banks-traditionally most active stocks-again dominated the activities chart with the three most active stocks- FCMB Group Plc, Diamond Bank Plc and FBN Holdings Plc accounting for 659.042 million shares worth N1.312 billion in 1,933 deals, representing 44.14 per cent and 8.69 per cent of the total equity turnover volume and value respectively.

    A deal was also struck for a total of 2,000 units of Exchange Traded Products (ETPs) valued at N34,000 during the week as against a total of 274 units valued at N636,148 traded in18 deals in the previous week.

    In the sovereign debt segment, a total of 2,360 units of Federal Government Bonds valued at N2.03 million were traded this week in seven deals, compared with a total of 7,424 units valued at N6.69 million traded in 18 deals in the previous week.

  • Equities rally N166b as bargain-hunting thickens

    Equities rally N166b as bargain-hunting thickens

    Market valuation and momentum of activities improved considerably at the Nigerian Stock Exchange (NSE) last week as investors increased bargain-hunting transactions ahead of the third quarter earnings of quoted companies. Benchmark indices showed a week-on-week average gain of 1.38 per cent, equivalent to net capital gain of N166 billion at the end of the week.

    Turnover volume and value rose by 22.2 per cent and 16.2 per cent respectively as investors appeared to seek a balanced portfolio of large-cap and penny stocks. The average year-to-date return improved to 32.05 per cent at the weekend.

    Aggregate market value of all quoted equities rose from the week’s opening value of N12.068 trillion to close at N12.234 trillion. The All Share Index (ASI)-the main price index that doubles as Nigerian sovereign equities index, increased from the week’s opening index of 35,005.57 points to close weekend at 35,488.81 points.

    Most sectoral indices closed on the positive side. The positive overall market situation was driven largely by rallies within the large-cap banking and industrial goods companies. The NSE 30 Index-which tracks Nigeria’s 30 most capitalised stocks, rose by 1.03 per cent last week. The NSE Banking Index posted a return of 2.39 per cent. The NSE Industrial Goods Index appreciated by 2.94 per cent while the NSE Insurance Index rose by 1.41 per cent. However, the NSE Consumer Goods Index declined by 0.23 per cent while the NSE Oil and Gas Index slumped by 3.05 per cent.

    There were 25 gainers against 35 losers last week as against 23 gainers and 45 losers recorded two weeks ago. Low-priced stocks dominated the gainers’ list. Linkage Assurance recorded the highest gain, in percentage terms, of 11.86 per cent to close at 66 kobo. Continental Reinsurance rose by 9.79 per cent to close at N1.57. Guaranty Trust Bank appreciated by 7.03 per cent to close at N39.60. C & Leasing rose by 6.72 per cent to close at N1.27. Skye Bank rose by 5.77 per cent to 55 kobo while Unilever Nigeria Plc rose by 5.50 per cent to close at N44.10 per share.

    On the downside, Nigerian Enamelware recorded the highest drop of 16.65 per cent to close at N23.23. Caverton Offshore Support Group dropped by 9.17 to close at N1.09. Neimeth International Pharmaceuticals declined by 8.57 per cent to close at 64 kobo. Transnational Corporation of Nigeria lost 7.52 per cent to close at N1.23. Cutix slipped by 7.33 per cent to close at N2.53 while AIICO Insurance dropped by 6.90 per cent to close at 54 kobo.

    Total turnover improved to 1.096 billion shares worth N17.86 billion in 16,070 deals last week as against a total of 896.618 million shares valued at N15.368 billion traded in 17,048 deals in the previous week. The financial services sector topped the activity chart with 880.597 million shares valued at N13.614 billion traded in 8,994 deals; representing 80.33 per cent and 76.2 per cent of the total equity turnover volume and value respectively. The industrial goods sector staged a distant second position with 69.17 million shares worth N676.25 million in 881 deals while the consumer goods sector recorded a turnover of 49.29 million shares worth N2.87 billion in 3,077 deals.

    The three most stocks were Guaranty Trust Bank Plc, Access Bank Plc, Jaiz Bank Plc, which altogether accounted for 450.567 million shares worth N10.942 billion in 1,834 deals, representing 41.1 per cent and 61.27 per cent of the total equity turnover volume and value respectively.

    Also traded during the week were a total of 58 units of Exchange Traded Products (ETPs) valued at N90,475 executed in five deals compared with a total of 1,265 units valued at N145,720 transacted last week in eight deals.

    A total of 178 units of Federal Government bonds valued at N163, 407 were traded in two deals compared with a total of 5,290 units valued at N5.030 million traded in 15 deals in the previous week.

  • Equities rally to N9tr amidst bargain-hunting

    Nigerian equities rallied to a new highest index point to N9.03 trillion yesterday as investors stepped up demand for quoted equities on the back of considerable improvement in corporate earnings. With more than two gainers to a loser and widespread price appreciation, equities recorded average gain of 0.58 per cent or N52 billion to reach their highest index point in recent period.

    Aggregate market value of all quoted companies on the Nigerian Stock Exchange (NSE) rose from its opening value of N8.975 trillion to close at N9.027 trillion, representing net capital gain of N52 billion. The All Share Index (ASI) – the main index that tracks prices at the Exchange, increased from 25,965.18 points to close at 26,116.79 points.

    The sustained rally has moderated the negative average year-to-date return to -2.82 per cent.

    All sectoral indices closed in the positive. The NSE Banking Index rose by 1.5 per cent. The NSE Oil & Gas Index appreciated by 0.6 per cent. The NSE Consumer Goods Index returned 0.4 per cent. The NSE Insurance Index inched up by 0.3 per cent while the NSE Industrial Goods Index closed flat.

    There were 27 gainers against 13 losers. Unilever Nigeria led the gainers with a gain of N1.69 to close at N33.50. Forte Oil rose by N1 to close at N44. Guinness Nigeria rallied 99 kobo to close at N61. UAC of Nigeria chalked up 65 kobo to close at N14.40 while Ashaka Cement rose by 52 kobo to close at N10.96 per share.

    Total turnover was above average with 264.49 million shares valued at N2.90 billion in 3,958 deals. Large-cap banks were the most active. Zenith Bank was the most active with 41.88 million shares worth N652.18 million. Guaranty Trust Bank followed with 37.75 million shares worth N1.01 billion while United Bank for Africa placed third with 34.03 million shares valued at N205.21 million.

    On the negative side, Total Nigeria led the losers with a loss of N10 to close at N255. Seven-Up Bottling Company dropped by N4.75 to close at N90.25. Nascon Allied Industries declined by 42 kobo to close at N8.05. UACN Property Development Company dropped by 5.0 kobo to close at N1.75 while Continental Reinsurance and Unity Bank slipped by 4.0 kobo each to close at N1.07 and 54 kobo respectively.

     

  • Equities sustain modest rally amidst bargain-hunting

    Quoted equities sustained their upward trend on Thursday as investors turned to worse-hit stocks for bargain-hunting. Two stocks- Oando Plc and Tiger Branded Consumer Goods (TBCG) Plc, which had suffered some of the steepest declines, have been at the centre of recent rally as investors sought to take advantage of the undervaluation of the stocks.

    Key indices at the Nigerian Stock Exchange (NSE) showed continuing bargain-hunting across the large, mid and small cap stocks, but there appeared to be a focus on small-cap stocks with dividend-paying history and potential for capital appreciation.

    With 19 gainers to 15 losers, there was also a slowdown in the momentum of the rally, raising the possibility of profit-taking activities in the next few trading sessions ahead. Aggregate market value of all quoted equities rose by N13 billion to close at N8.917 trillion as against its opening value of N8.904 trillion.

    The All Share Index (ASI)-the value-based index that tracks prices of all quoted equities; indicated a modest gain of 0.15 per cent to close at 25,923.77 points as against its opening index of 25,885.31 points. The modest rally further reduced the negative overhang at the stock market as the average year-to-date return improved to -9.49 per cent.

    Cross sectoral analysis showed continuing positive sentiments across stock groups and sectors. The NSE Oil and Gas Index indicated a gain of 0.72 per cent. The NSE Industrial Goods Index and the NSE Insurance Index inched up by 0.2 per cent each. The NSE Banking Index appreciated by 0.04 per cent. However, the NSE Consumer Goods Index dropped by 0.5 per cent.

    Dangote Cement, Nigeria’s most capitalised stock, led the gainers with a gain of N1.01 to close at N165.01. Flour Mills of Nigeria followed with a gain of 87 kobo to close at N18.38. Oando rose by 42 kobo to close at N4.86. PZ Cussons Nigeria added 30 kobo to close at N25. Dangote Sugar Refinery appreciated by 23 kobo to close at N5.98. TBCG gathered 22 kobo to close at N2.49. Access Bank rose by 20 kobo to close at N4.64. Red Star Express chalked up 19 kobo to close at N4 while Honeywell Flour Mills garnered 14 kobo to close at N1.72 per share.

    “We believe anticipated better-than-expected earnings releases would continue to spur bargain hunting although profiting taking activities may moderate market momentum. We maintain that investors buy into companies with consistent dividend payment history ahead of their earnings releases,” analysts at Afrinvest Securities stated.

    Total turnover stood at above average at 310.65 million shares valued at N2.06 billion in 3,015 deals. Fidelity Bank was the most active stock with a turnover of 112.42 million shares worth N129.46 million in 97 deals.

  • Equities record modest recovery on bargain-hunting

    The Nigerian stock market yesterday heaved a sigh of relief from a sustained depression that had shaken the market to new low and dropped key indices below their psychological points. Investors turned round to take advantage of the depreciation in share prices, pumping up demand that triggered modest recovery in key indices.

    The All Share Index (ASI), the value-based common index that tracks prices of all quoted companies on the Nigerian Stock Exchange (NSE), recorded a modest day-on-day gain of 0.30 per cent to close at 28,221.75 points as against its opening index of 28,137.65 points.

    Aggregate market value of all quoted equities rose marginally by N29 billion from N9.670 trillion to close at N9.699 trillion. The modest recovery moderated the negative average year-to-date return to -18.57 per cent.

    While there were still more decliners than advancers, substantial rally within the highly capitalised group buoyed the overall market position. Guinness Nigeria topped the 20-stock gainers’ list with a gain of N5.49 to close at NN115.50. Mobil Oil Nigeria rose by N4.45 to close at N147.95. Julius Berger Nigeria added N1.85 to close at N43. Dangote Cement rose by 87 kobo to close at N166.02. Guaranty Trust Bank gathered 70 kobo to close at N20.70. Vitafoam Nigeria chalked up 40 kobo to close at N6.15. Dangote Sugar Refinery rose by 26 kobo to close at N6.60. Skye Bank added 19 kobo to close at N2.13. FBN Holdings rose by 17 kobo to close at N5.40 while Diamond Bank added 13 kobo to close at N2.89 per share.

    Turnover was around average with the exchange of 333.21 million shares worth N2.81 billion in 4,449 deals. Financial services stocks accounted for 196.64 million shares worth N830.8 million in 1,719 deals. Zenith Bank was the most active stock with a turnover of 59.52 million shares valued at N824.09 million in 377 deals. United Bank for Africa followed with a turnover of 52.5 million shares worth N157.44 million in 298 deals. Skye Bank placed third with a turnover of 44.01 million shares valued at N91.14 million in 198 deals.

    “The change in the market mood today can be attributed to renewed optimism in the some largely capitalized stocks trading at attractive prices. We acknowledge that this swing in the ASI is largely driven by bargain-hunting, hence we implore investors to continue to take position on value stocks with sound fundamentals,” Afrinvest Securities stated in post trading review.

    However, the market remained with a strong negative undertone. Thirty one stocks recorded price depreciation yesterday. Total Nigeria led the losers with a loss of N4.38 to close at N142.50. Flour Mills of Nigeria lost N2.56 to close at N23.76. PZ Cussons Nigeria declined by N2.24 to close at N20.87. CAP dropped by N1.95 to close at N37.05 while International Breweries declined by 83 kobo to close at N16.17 per share.