The Nation Newspaper

Tag: equities

  • Investors shift to penny stocks as equities open negative

    Low-priced stocks, otherwise known as penny stocks, dominated the top chart at the Nigerian Stock Exchange (NSE) as the equities market reopened yesterday to a streak of profit-taking. Low-priced stocks in the banking, insurance and conglomerate sectors topped activities’ chart as investors appeared to be shifting to low-priced value stocks with prospects of good dividend yields.

    With profit-taking transactions on many large-cap stocks, the overall market position closed negative with average day-on-day return of -0.85 per cent, equivalent to net capital loss of N135 billion. Average year-to-date return consequently moderated to 15.74 per cent.

    Aggregate market value of all quoted equities at the NSE dropped from its opening value of N16.019 trillion to close at N15.884 trillion. The All Share Index (ASI)-the benchmark index for the stock market, declined from its opening index of 44,639.99 points to close at 44,261.72 points.

    With 34 losers to 22 gainers, most sectoral indices also closed negative. The NSE Industrial Goods Index declined by 1.3 per cent. The NSE Oil & Gas Index dropped by 1.3 per cent while the NSE Consumer Goods Index depreciated by 0.7 per cent. On the upside, the NSE Insurance Index appreciated by 1.6 per cent while the NSE Banking Index rose by 1.4 per cent.

    Total turnover stood at 426.8 million shares valued at N2.8 billion, with low-priced stocks making up about 80 per cent of the top activities’ chart. FCMB Group was the most active stock with a turnover of 101.5 million shares valued at N303.32 million. Skye Bank followed with a turnover of 48.34 million shares worth N66.37 million while Diamond Bank ranked third with a turnover of 31.54 million shares valued at N100.21 million.

    “Despite the negative performance today, our near-term outlook on performance remains positive as investors continue to seek for bargain opportunities in anticipation of full year earnings releases,” Afrinvest Securities stated.

    Dangote Cement-the most capitalised quoted company, led the losers with a loss of N8 to close at N270. Forte Oil followed with a drop of N2.40 to close at N46.05. Julius Berger Nigeria dropped by N1.35 to close at N28.65. Lafarge Africa lost N1 to close at N53 while Cadbury Nigeria and Nascon Allied Industries dropped by 50 kobo each to close at N15.50 and N21 respectively.

    On the positive side, Bet Glass led the gainers with a gain of N3.10 to close at N65.45. Zenith Bank followed with a gain of 70 kobo to close at N32.65. PZ Cussons Nigeria added 55 kobo to close at N23.65. Nigerian Breweries rose by 50 kobo to close at N145 while Dangote Sugar Refinery chalked up 35 kobo to close at N21 per share.

    “Our theme for equities remains positive, amidst strengthening macroeconomic fundamentals; more so, as investors take position ahead of fourth quarter 2017 corporate releases,” Cordros Capital stated in a post-trading note to investors.

     

  • Nigeria leads global equities rally with N2.3t gain

    Nigeria is among the three best-performing stock markets globally. The market’s bullish run, which started last year with a full-year return of N4.36trillion gained N2.287trillion last month.

    Average return at the Nigerian equities market stood at 15.95 per cent last month, equivalent to net capital gain of about N2.29 trillion. Average month-on-month at the Nigerian equities market more than doubled average returns in most advanced and emerging markets of America, Europe, Middle East and Africa.

    The Nation’s economic intelligence report indicated that Venezuela, Ghana, Argentina and Nigeria were the four best-performing stock markets last month, according to global equities data provided by Bloomberg.

    Venezuela, which led the global rally last month, remained atop the list with a one-month gain of 190.37 per cent. Ghana followed with average return of 19.28 per cent while Argentina placed third with 16.21 per cent.

    Capital Bancorp Plc Managing Director, Mr Aigboje Higo, said the outlook for the Nigerian equities remains “strong and positive”, noting that while the market may fluctuate due to profit-taking in February, the month will end with a positive return.

    He pointed out that most macroeconomic indicators including falling inflation rate, improving foreign exchange reserves, improving fiscal and monetary coordination, stable global crude oil price and corporate earnings will continue to create a rallying base for the Nigerian equities market.

    “We expect all the positive factors that were present in January to continue into February. More so, investors will start anticipating corporate results in the weeks ahead, so we may see a very strong February, unless something drastic happened,” Higo said.

    The All Share Index (ASI)-the benchmark index at the Nigerian Stock Exchange (NSE), closed January 2018 at 44,343.65 points as against its year’s opening index of 38,243.19 points. Aggregate market value of all quoted equities at the Exchange also rose from its year’s opening value of N13.609 trillion to close January at N15.896 trillion.

    Nigerian equities had ranked within the top 10 best-performing stock markets globally in 2017 with average full-year return of 42.30 per cent, equivalent to net capital gain of about N4.36 trillion. The ASI, which also doubles as Nigeria’s sovereign equities index, had opened 2017 at 26,874.62 points and closed the year at a high of 38,243.19 points. Aggregate market value of all quoted equities on the NSE also closed 2017 at N13.609 trillion as against its opening value of N9.247 trillion for the year.

    “The trend is likely to continue because we are approaching earnings season during which companies will declare their audited reports and dividend recommendations. Some companies have started already to submit their audited reports for regulatory approvals and we expect these reports to hit the market in the next few weeks, so you may see investors taking positions ahead of these,” Chief Operating Officer, GTI Capital Limited, Mr. Kehinde Hassan said.

    Hassan said quoted companies are expected to surpass their previous earnings given the growth momentum witnessed in 2017, which may flow into increased dividend payouts.

    He, however, cautioned that investors are already pricing earnings expectations into current share valuations, and the response to the actual release may vary according to each stock performance.

    So far, most analysts expect Nigerian equities market to record a double-digit average return in 2018, despite the high base set already by the strong rally in 2017. Higo’s Capital Bancorp and FBNQuest Capital Limited, the investment banking subsidiary of FBN Holdings Plc, have predicted average return of 25 per cent for the Nigerian equities market in 2018.

    Cordros Capital Limited-one of the most active stockbrokers at the stock market, in a three-case scenario said the equities market could hit another return of more than 40 per cent against the backdrop of the strong start so far this year and significantly favourable macroeconomic and political conditions. Cordros Capital, however, pitched a conservative average return of between 10 to 15 per cent for the year, under consideration of a moderate improvement in macroeconomic environment and modest election concerns.

    FSDH Merchant Bank Limited stated that companies will make higher profit and consumers will earn more money in 2018, providing another robust base for equities rally.

    FSDH Merchant Bank noted that economic data support strong possibility that business profit and consumer income will grow higher in 2018 than in the last three years.

    According to FSDH, the improvement in the business expectations should drive business expansion and increase the employment of labour. This in turn will increase the consumers’ purchasing power. On the other hand, the increase in consumer expectations will increase spending which will have positive impact on businesses.

     

  • Cordros Capital predicts better returns for equities in 2018

    Nigeria’s macroeconomic outlook is more favourable to continuing rally at the equities market, Cordros Capital has said.

    Presenting its special outlook report tagged “Nigeria in 2018: Looking Beyond the Surface, Cordros Capital yesterday outlined a positive outlook for the Nigerian economy and the equities market, noting that average return at the equities market could range between a modest return of between 10 and 15 per cent and a bullish performance as high as 40 per cent.

    Managing Director, Cordros Capital, Mr. Wale Agbeyangi, said Cordros Capital as one of the top stockbroking firms at the Nigerian stock market is committed to providing investors with value-added services that enable them to make informed decisions.

    He noted that the special report was part of the research and investment advisory function of the company adding that the company will also organise a special forum to engage investors and stakeholders on the underlying issues in the Nigerian economy and the capital market.

    Head, Research and Strategy, Mr. Christian Orajekwe, who spoke extensively on the special report, noted that Nigeria’s economic outlook is promising with continued favourable financing condition, strong consumer sentiment that will help maintain consumption demand and business investments  and favourable commodities prices.

    “Compared to the last two years, Nigeria’s macro outlook is more favourable to equities,”  Orajekwe said.

    According to him, with the strong start so far this year and significantly favourable macroeconomic and political backdrop, strong corporate earnings growth ease valuation concerns, strong portfolio inflows to record high level, merger and acquisition activities and strong moderation of fixed income and treasury yield, Nigerian equities could record average full-year return of more than 40 per cent.

    He however noted that with due consideration for the downside risk, the equities market could deliver a more probable return of between 10 to 15 per cent. This assumption rests on the bullish start for the year, moderate improvement in the macro environment, stable to modest corporate earnings growth, modest improvement in portfolio inflows over 2017, marginal moderation of fixed income and treasury yields and modest election concerns.

    “Back-to-back gain of more than 80 per cent total is not a new phenomenon. Bull markets do not die of old age,” Orajekwe said.

    Head, Investment Banking, Cordros Capital, Mr. Femi Ademola, urged investors to cherry-pick stocks, and hold 2017 position and watch out for fourth quarter earnings for 2017 and first quarter earnings for 2018 to determine the earnings direction for quoted companies.

    “Small-cap companies will benefit from stronger recovery of economic activities, election-related spending, passage of the minimum wage bill into law, and improvement in public sector revenue while raw materials intensive companies are to benefit from the stability of the naira,” Ademola said.

    He added that highly-geared companies will also benefit from the expected moderation of interest rates while cement companies are expected to benefit from the expected improvement in public sector construction activities.

     

  • Equities lose N462b amidst profit-taking

    Nigerian equities came under intense profit-taking pressure last week as investors turned round to monetise capital gains that had accrued in three consecutive weeks of strong rally. As most investors opened up sell orders to attract deals in the buyer’s market, most transactions at the Nigerian Stock Exchange (NSE) were closed at a discount.

    Benchmark indices at the Exchange indicated a week-on-week decline of 2.93 per cent, equivalent to net capital loss of N462 billion for the five-day trading week. With a modest recovery of 0.56 per cent at the last trading session, the average year-to-date return moderated to 14.46 per cent.

    Aggregate market value of all quoted equities closed weekend at N15.692 trillion as against its week’s opening value of N16.154 trillion, representing a loss of N462 billion. The All Share Index (ASI)-the main index that doubles as Nigeria’s sovereign equities index, also declined from its week’s opening index of 45,092.83 points to close the week at 43,773.76 points.

    Most sectoral indices also closed negative, underlining the widespread profit-taking trend that dominated transactions across the sectors. The NSE 30 Index, which tracks the 30 most capitalised stocks, dropped by 2.94 per cent. The NSE Banking Index recorded the highest depreciation of 6.40 per cent. The NSE Insurance Index declined by 3.33 per cent while the NSE Industrial Goods Index slipped by 2.03 per cent. However, consumer goods and oil and gas stocks played the contrarian stocks during the week. The NSE Consumer Goods Index appreciated by 2.15 per cent while the NSE Oil and Gas Index inched up by 0.08 per cent.

    Low-priced stocks that had been at the top of the bullish in the previous weeks were expectedly atop the profit-taking trend last week. Diamond Bank recorded the highest loss of 26.05 per cent to close at N2.64. Champion Breweries followed with a drop of 20.69 per cent to close at N2.53. Transnational Corporation of Nigeria dropped by 18.0 per cent to close at N2.05. Sterling Bank lost 16.59 per cent to close at N1.91. Honeywell Flour Mill dropped by 15.5 per cent to close at N2.67. NPF Microfinance Bank declined by 13.45 per cent to close at N1.48 while FCMB Group depreciated by 12.3 per cent to close at N3.06 per share.

    On the upside, Wapic Insurance led the contrarian stocks with a gain of 10.9 per cent to close at 61 kobo. Dangote Sugar Refinery followed with a gain of 9.8 per cent to close at N21.96. Nascon Allied Industries appreciated by 9.63 per cent to close at N20.83. Trans-Nationwide Express rose by 8.0 per cent to close at 81 kobo. P Z Cussons Nigeria posted a gain of 6.8 per to close at N23.50 while Nigerian Breweries appreciated by 6.7 per cent to close at N151.75 per share.

    Altogether, there were 30 gainers against 44 losers last week compared with 40 gainers and 32 losers recorded in the previous week. A total of 98 equities remained unchanged last week, lower than 100 equities recorded in the previous week.

    Total turnover stood at 7.16 billion shares worth N42.55 billion in 39,037 deals last week compared with 5.01 billion shares valued at N45.82 billion traded in 44,569 deals in the previous week. The conglomerates sector led the activity chart with 4.11 billion shares valued at N10.02 billion in 2,454 deals; representing 57.4 per cent and 23.5 per cent of the total equity turnover volume and value respectively. The financial services sector followed with 2.76 billion shares worth N25.40 billion in 25,853 deals. The consumer goods sector ranked third with 156.22 million shares worth N5.30 billion in 5,875 deals.

    The three most active stocks were Transnational Corporation of Nigeria, FCMB Group and Skye Bank, which altogether accounted for 4.79 billion shares worth N11.34 billion in 5,216 deals, contributing 66.9 per cent and 26.7 per cent to the total equity turnover volume and value respectively.

    Also traded during the week were a total of 153,755 units of Exchange Traded Products (ETPs) valued at N1.88 million in 11 deals, compared with a total of 1.947 million units valued at N105.57 million traded in 15 deals in the previous week.

    At the sovereign bond market, a total of 6,715 units of Federal Government bonds valued at N5.32 million were traded in 15 deals compared with a total of 4,437 units valued at N4.26 million traded in nine deals two weeks ago.

    “We anticipate further sell-offs as investors continue to book profits in stocks that had rallied,” Afrinvest Securities stated.

    Analysts at Afrinvest Securities noted that the ASI’s 14-Day Relative Strength Index (RSI) of 67.7 points is close to the overbought region of 70.

    Nigerian equities came under intense profit-taking pressure last week as investors turned round to monetise capital gains that had accrued in three consecutive weeks of strong rally. As most investors opened up sell orders to attract deals in the buyer’s market, most transactions at the Nigerian Stock Exchange (NSE) were closed at a discount.

    Benchmark indices at the Exchange indicated a week-on-week decline of 2.93 per cent, equivalent to net capital loss of N462 billion for the five-day trading week.

  • Equities lose N156b as selloff worsens

    The profit-taking trend at the Nigerian stock market entered the fourth consecutive trading session yesterday as increased open order for sale shaved off N156 billion from the market value of quoted equities.

    The All Share Index (ASI)- the benchmark index at the Nigerian Stock Exchange (NSE), declined by 0.99 per cent from its opening index of 43,963.40 points to close at 43,529.06 points. Aggregate market value of all quoted equities dropped from its opening value of N15.760 trillion to close at N15.604 trillion, representing a net loss of N156 billion. Average year-to-date return slipped to 13.82 per cent.

    Investors meanwhile appeared to be intensifying bargain-hunting for several value stocks, narrowing down the gap between the gainers and losers. Dangote Sugar Refinery, United Bank for Africa (UBA) and African Prudential recorded the highest gains, in percentage terms. Dangote Sugar Refinery recorded the highest gain of 10.16 per cent to close at N22.01. African Prudential followed with a gain of 4.24 per cent to close at N4.43 while UBA recorded the third highest gain of 4.08 per cent to close at N12.49 per share.

    With 21 gainers and 30 losers, the gap narrowed down between bargain-hunting and profit-taking. The NSE Industrial Goods Index dropped by 2.0 per cent while the NSE Banking Index declined by 0.4 per cent. On the upside, the NSE Consumer Goods Index rose by 0.7 per cent. The NSE Oil & Gas Index appreciated by 0.3 per cent while the NSE Insurance Index closed flat.

    GlaxoSmithKline Consumer Nigeria led the losers with a loss of 9.67 per cent to close at N18.88. Caverton Offshore Support Group followed with a drop of 9.41 per cent to close at N2.31. Diamond Bank declined by 9.25 per cent to close at N2.65. Skye Bank dropped by 9.22 per cent to close at N1.28 while Unity Bank declined by 9.09 per cent to close at N1.20 per share.

    Total turnover stood at 500.85 million shares valued at N6.63 billion in 6,002 deals. The three most active stocks were Transnational Corporation of Nigeria, with 66.40 million shares; Fidelity Bank, 64.69 million shares and Zenith Bank, with a turnover of 54.86 million shares.

    “The market is likely to move from the oversold position in the subsequent trading sessions as investors have started to show buying interest,” FSDH Securities stated.

    “We expect a negative close to the week following 4 consecutive days of losses as investors continue to lock in profits,” Afrinvest Securities stated in a post-trading note.

  • Equities lose N187b as profit-taking continues

    The profit-taking trend at the Nigerian stock market worsened yesterday as investors stepped up the rush to take profits. With more than three losers for every gainer, equities lost N187 billion at the end of the five-hour trading session at the Nigerian Stock Exchange (NSE).

    The All Share Index (ASI)-the benchmark index for the Nigerian equities market, showed average decline of 1.16 per cent to close at 44,389.85 points as against its opening index of 44,912.53 points. Aggregate market value of all quoted equities dropped from its opening value of N16.090 trillion to close at N15.903 trillion.

    With the second consecutive negative trading session, the average year-to-date return moderated to 16.07 points.

    Most sectoral indices also closed negative while the momentum of activities slowed down considerably. The NSE Banking Index dropped by 2.6 per cent. The NSE Insurance Index declined by 2.4 per cent while the NSE Industrial Goods Index depreciated by 0.7 per cent. Meanwhile, the NSE Consumer Goods Index appreciated by 0.7 per cent while the NSE Oil & Gas Index inched up by 0.1 per cent.

    Total turnover slowed down to 737.86 million shares valued at N7.67 billion in 8,927 deals. Low-priced stocks continued to dominate activities chart. Skye Bank was the most active stock with a turnover of 150.37 million shares valued at N226.77 million. FBN Holdings followed with 104.17 million shares valued at N1.36 billion while Wema Bank placed third with 64.09 million shares worth N87.36 million.

    “There was sell pressure in the equity market today, a combination of profit taking and price corrections predominantly in the banking sector stocks. The downward trend may likely continue till midweek,” FSDH Securities, a subsidiary of FSDH Merchant Bank, stated in post-trading notes.

    There were 43 losers against 14 gainers. 11, formerly Mobil Oil Nigeria, led the losers with a loss of N7 to close at N209. Dangote Cement followed with a loss of N4 to close at N269. Julius Berger Nigeria declined by n1.60 to close at N30.40. Guaranty Trust Bank dropped by N1.51 to close at N52. Zenith Bank declined by 75 kobo to close at N32 while FBN Holdings lost 73 kobo to close at N13.02 per share.

    On the positive side, Seplat Petroleum Development Company led the gainers with a gain of N9.99 to close at N685. Unilever Nigeria followed with a gain of N2.21 to close at N46.41. Nigerian Breweries added N2 to close at N145. Presco rose by N1.31 to close at N70 while Nestle Nigeria gathered N1.11 to close at N1, 471.11 per share.

    “Despite losses recorded since the start of the week, we expect sell-offs across sectors to continue in subsequent trading sessions as investors look to book profits following weeks of sustained gains,” Afrinvest Securities stated.

  • Equities sustain rally with N183b gain

    Nigerian equities continued on the uptrend yesterday as bargain-hunters drove the benchmark index above the 40,000 points, pushing the year-to-date return to 5.54 per cent.

    With nearly seven gainers against every loser, the momentum of activities at the stock market improved considerably. The All Share Index (ASI)-the main index that tracks share prices at the stock market, rode on the back of gains by 47 gainers against seven losers to hit a new threshold at 40,362.97 points compared with its opening index of 39,849.65 points.

    Aggregate market value of all quoted equities at the Nigerian Stock Exchange (NSE) rose from its opening value of N14.181 trillion to close at N14.364 trillion, representing net capital gain of N183 billion.

    With average return of 1.29 per cent yesterday, the average year-to-date return now stands at 5.54 per cent or N755 billion.

    All sectoral indices remained on the upside with the exception of the NSE Consumer Goods Index, which declined by 0.3 per cent. The NSE Banking Index rose by 2.3 per cent. The NSE Oil & Gas Index followed with 1.2 per cent while the NSE Insurance Index and NSE Industrial Goods Index appreciated by 0.7 per cent each.

    Seplat Petroleum Development Company led the gainers with a gain of N10 to close at N660. Dangote Cement followed with a gain of N3.24 to close at N237.50. Guinness Nigeria appreciated by N2 to close at N102. Conoil rose by N1.62 to close at N34.03 while Mobil Oil Nigeria and Presco chalked up N1.50 each to close at N180 and N68 respectively.

    Total turnover increased to 770.89 million shares valued at N7.89 billion in 7,395 deals. Low-priced stocks dominated the top activities chart. Diamond Bank was the most active stock with a turnover of 219.65 million shares valued at N441.24 million. Transnational Corporation of Nigeria followed with 139.92 million shares worth N254.92 million while FCMB Group placed third with 74.62 million shares worth N154.71 million.

    On the downside, Nestle Nigeria led the losers with a loss of N50 to close at N1,450 per share. GlaxoSmithKline Consumer Nigeria followed with a drop of 30 kobo to close at N21.80. Nigerian Aviation Handling Company dipped by 21 kobo to close at N4.29. Union Bank of Nigeria lost 20 kobo to close at N7.50 while UACN Property Development Company dropped by 15 kobo to close at N3.03 per share.

    “Although market sentiment remains strong and positive, the bullish momentum will likely slowdown in subsequent sessions with profit taking,” FSDH Securities stated.

    Analysts at Afrinvest Securities noted that there could be a streak of profit-taking as investors seek to monetise recent capital gains.

    “Following four consecutive days of appreciation, we do not rule out the possibility of some profit taking later in the week. Nevertheless, as investor sentiment waxes stronger, our near term outlook on the market remains positive,” Afrinvest Securities stated.

  • Equities hit N14tr amid widespread rally

    Investors in Nigerian equities pocketed N330 billion in net capital gains yesterday at the Nigerian Stock Exchange (NSE) as increased scramble for quoted shares pushed the total market value of quoted equities to N14.18 trillion.

    With more than four gainers for every loser, the stock market reopened yesterday with a strong market-wide rally, which nudged equities to their highest performance so far this year. Average day-on-day return yesterday stood at 2.38 per cent, equivalent to net capital gain of N330 billion.

    The sustained rally pushed the average year-to-date return for Nigerian equities so far in 2018 to 4.2 per cent.

    Aggregate market value of all quoted companies on the NSE rose from its opening value of N13.851 trillion to close at N14.181 trillion. The All Share Index (ASI)-the benchmark index at the NSE also crossed another level from 38,923.26 points to close at 39,849.65 points.

    All sectoral indices closed on the upside, underlining the widespread demand for quoted shares. The NSE Industrial Goods Index led the rally with a gain of 2.3 per cent. The NSE Banking Index followed with 2.0 per cent. The NSE Oil & Gas Index posted a gain of 1.7 per cent while the NSE Consumer Goods Index and NSE Insurance Index returned 1.1 per cent each.

    There were 37 gainers against nine losers. Dangote Cement led the gainers with a gain of N11.15 to close at N234.26. 11 followed with a gain of N8.50 to close at N178.50. Guinness Nigeria rose by N4.40 to close at N100. Conoil rallied N3.01 to close at N32.41 while Nigerian Breweries added N1.90 to close at N140 per share.

    Total turnover stood at 604.5 million shares valued at N16.1 billion. Transnational Corporation of Nigeria was the most active stock with a turnover of 115.19 million shares valued at N203.28 million. Nigerian Breweries followed with a turnover of 88.29 million shares valued at N13.36 billion while Diamond Bank placed third with 82.72 million shares valued at N162.32 million.

    “The market is expected to remain in the positive territory but will likely be characterised by a mix of profit taking and bargain hunting by investors,” FSDH Securities stated.

    Analysts at Afrinvest Securities stated that the rally was in line with expectation as investor sentiment remained strong.

    “We expect the trend to be sustained in subsequent trading sessions against the backdrop of a broad based rally across sectors,” Afrinvest Securities stated.

  • Equities open 2018 with N8b gain

    Nigerian equities recorded a modest gain of N8 billion at the first trading session for 2018, continuing the uptrend that had seen the stock market rallying net capital gain of N4.36 trillion in 2017.

    All major indices at the Nigerian Stock Exchange (NSE) opened on positive sentiment. Average day-on-day return stood at 0.06 per cent, equivalent to net capital gain of N8 billion. With 27 gainers to 13 losers, most sectoral indices showed widespread positive sentiments.

    The All Share Index (ASI)-the common value-based index that tracks share prices at the Exchange rose from its year’s opening index of 38,243.19 points to close at 38,264.79 points. Aggregate market value of all quoted equities also rose from the year’s opening value of N13.609 trillion to close at N13.617 trillion. The average year-to-date return thus stood at 0.06 per cent or N8 billion.

    Most sectoral indices closed on the upside. The NSE Insurance Index led with a gain of 0.9 per cent. The NSE Consumer Goods Index followed with 0.3 per cent while the NSE Industrial Goods Index inched up by 0.2 per cent. However, the NSE Oil & Gas Index depreciated by 0.4 per cent while the NSE Banking Index slipped by 0.04 per cent.

    CAP led the gainers with a gain of N1.70 to close at N35.70 per share. Nascon Allied Industries followed with a gain of 72 kobo to close at N19.22. PZ Industries rose by 55 kobo to close at N21.15 per share. International Breweries gathered 49 kobo to close at N54.99 while Dangote Sugar Refinery rose by 30 kobo to close at N20.36 per share.

    On the negative side, Forte Oil led the losers with a loss of N1.48 to close at N42 per share. Unilever Nigeria followed with a loss of 79 kobo to close at N40.21. Ecobank Transnational Incorporated dropped by 73 kobo to close at N16.27 per share. Stanbic IBTC Holdings declined by 60 kobo to close at N40.90 while Union Bank of Nigeria dipped by 29 kobo to close at N7.51 per share.

    Total turnover stood at 248.55 million shares valued at N1.78 billion in 3,035 deals. Transnational Corporation of Nigeria was the most active stock with 102.77 million shares valued at N150.72 million. Zenith Bank followed with 24.78 million shares worth N642.97 million while Skye Bank placed third with 15.56 million shares valued at N7.82 million.

    “In line with expectation, the market closed positive albeit marginal. Hence, we do not rule out the possibility of some profit taking in subsequent sessions,” Afrinvest Securities stated.

    Aggregate market value of all quoted equities on the NSE had closed 2017 at N13.609 trillion as against its opening value of N9.247 trillion for the year, representing net capital gain of N4.36 trillion in 2017. The ASI had indicated average full-year of 42.30 per cent, rising from the year’s opening index of 26,874.62 points to close the year at 38,243.19 points.

    All major sectoral indices at the stock market showed a market-wide rally. Investors in the banking sector were far ahead of other sectors with the NSE Banking Index indicating average year-to-date return of 73.32 per cent. The NSE 30 Index, which tracks the 30 most capitalised companies, posted above average return of 46.14 per cent, underlining the fact that the recovery was partly driven by large-cap stocks. The NSE Consumer Goods Index closed the year with a gain of 36.97 per cent. The NSE Industrial Goods Index rose by 23.84 per cent. The NSE Insurance Index posted a modest return of 10.36 per cent, despite the lacklustre performance of most insurance stocks that had stagnated over the years at nominal value of 50 kobo.

    With the major oil marketers such as 11 Plc, formerly Mobil Oil Nigeria and Forte Oil among the worst-performing stocks, the NSE Oil and Gas Index recorded the least return of 5.76 per cent. The NSE Lotus Islamic Index-which tracks ethical stocks in compliance with Islamic rulings, posted a gain of 39.03 per cent, underlining the attractiveness of ethical investment in the midst of the rally. The NSE Lotus Islamic Index excludes interest-based banks, breweries, gambling and overleveraged companies among others.  The NSE Pension Index, which tracks a portfolio of stocks specially screened in line with the pension investment guidelines, showed above-average return of 70.33 per cent.

     

     

     

  • Profit-taking drags equities to N225b loss

    Profit-taking drags equities to N225b loss

    Nigerian equities reopened yesterday with a tinge of bearishness as profit-taking transactions on many large-cap stocks dragged the overall market position to a net loss of N225 billion.

    The two main value-based indices at the Nigerian Stock Exchange (NSE) closed on the negative, underlining that the decline was due to price depreciation.  The All Share Index (ASI) dropped by 1.64 per cent to close at 37,889.57 points. The market capitalisation of all quoted equities declined by N225 billion to close at N13.484 trillion.

    The downtrend was due to widespread profit-taking transactions, especially losses recorded by large-cap stocks such as Dangote Cement, Nigerian Breweries, Okomu Oil, Presco and PZ Cussons Nigeria.

    There were nearly two losers for every gainer with 14 gainers and 24 losers. Cadbury Nigeria recorded the highest gain, in percentage terms, with 9.91 per cent to close at N15.75 per share. 11, formerly Mobil Oil Nigeria, gained 4.89 per cent to close at N178.31. Fidelity Bank appreciated by 4.62 per cent to close at N2.49 per share. Law Union and Rocks Insurance went up by 4.23 per cent to close at 74 kobo while NEM Insurance appreciated by four per cent to close at N1.56 per share.

    On the negative side, Okomu Oil led the losers’ chart by five per cent to close at N67.69 per share. Omoluwabi Micro Finance Bank shed 4.88 per cent to close at 78 kobo. Presco depreciated by 4.86 per cent to close at N68.50 per share. MC Nichols dropped by 4.76 per cent to close at N1.20 while Nigerian Breweries declined by 4.26 per cent to close at N134.04 per share.

    The momentum of activities however improved as total volume traded appreciated by 103.9 per cent to 425.96 million shares worth N2.12 billion in 2,937 deals. Transactions in the shares of Transnational Corporation of Nigeria topped the activity chart with 107.1 million shares valued at N154.77 million. Fidelity Bank followed with 94 million shares worth N220.75 million while Skye Bank traded 51.65 million shares valued at N25.82 million.

    Analysts at Afrinvest Securities Limited said they remained optimistic on the outlook for equities.

    “Given the significant rise in oil prices in recent times and the broadly bullish outlook for commodity prices for 2018, we maintain our positive short- to medium-term perspective for equities,” Afrinvest Securities stated.