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Tag: equities

  • Investors stake N140b on equities amid Santa rally

    Investors stake N140b on equities amid Santa rally

    Investors staked about N140 billion and most price changes were positive as equities recovered from a profit-taking trend to post a modest gain at the weekend.

    Benchmark indices at the Nigerian Stock Exchange (NSE) indicated a modest average return of 0.22 per cent for the week, equivalent to net capital gain of N31 billion.

    While the market opened with a two-day downtrend due to profit-taking, increased bargain-hunting spurred a three-day modest rally. Average year-to-date return improved to 43.34 per cent at the weekend.

    Aggregate market value of all quoted equities at the NSE rose from the week’s opening value of N13.678 trillion to close at N13.709 trillion. The All Share Index (ASI)-the benchmark price index, also increased from its week’s index-on-board of 38,436.08 points to close weekend at 38,522.14 points.

    A total turnover of 2.24 billion shares worth N139.79 billion were traded in 18,466 deals last week as against a total of 1.85 billion shares valued at N51.523 billion traded in 23,863 deals two weeks ago. The financial sector led the activity chart with 984.58 million shares valued at N10.59 billion in 11,116 deals, representing 43.9 per cent and 7.57 per cent of the total equity turnover volume and value.

    The industrial goods sector followed with 564.804 million shares worth N125.378 billion in 927 deals. The third place was occupied by conglomerates sector with a turnover of 804.447 million shares worth N561.921 million in 689 deals.

    The three most active stocks were Transnational Corporation of Nigeria Plc, Dangote Cement Plc and Aiico Insurance Plc, which accounted for 1.335 billion shares worth N125.907 billion in 888 deals, contributing 59.52 per cent and 90.07 per cent to the total equity turnover volume and value.

    Also traded during the week were a total of 3,070 units of Exchange Traded Products (ETPs) valued at N455,245 in eight deals, compared with a total of 1,120 units valued at N14,179 traded in four deals two weeks ago.

    In the debt segment, a total of 3,780 units of Federal Government bonds valued at N3.931 million were traded in 17 deals compared with a total of 5,382 units valued at N5.680 million traded in 17 deals in the previous week.

    There were 35 gainers against 25 losers last week compared with 16 gainers and 46 losers recorded in the previous week. Most sectoral indices closed positive, underlining the widespread positive sentiment during the week.

    The NSE Most sectoral indices closed positive, underlining the widespread positive sentiment during the week.

    The NSE 30 Index-which tracks the 30 most capitalised stocks, appreciated by 0.29 per cent. The NSE Oil and Gas Index led the rally with 4.43 per cent. The NSE Insurance Index rose by 1.14 per cent. The NSE Industrial Goods Index rose by 0.38 per cent while the NSE Banking Index posted a return of 0.91 per cent. However, the NSE Consumer Goods Index declined by 1.37 per cent.

    Linkage Assurance recorded the highest gain, in percentage terms, of 19 per cent to close at N69 kobo. Livestock Feeds rose by 11.3 per cent to close at N89 kobo while Seplat Petroleum Development Company appreciated by 10.4 per cent to close at N596.40.

    On the downside, Dangote Sugar Refinery led the losers with a drop of 9.5 per cent to close at N19.64. May & Baker Nigeria followed with a drop of 8.3 per cent to close at N2.64 while Flour Mills of Nigeria declined by 8.0 per cent to close at N28.36 per share.

    Analysts at Afrinvest Securities stated that they expected a largely positive performance at the stock market this week on the back of year-end portfolio rebalancing by fund managers.

  • Equities lose N62b as downtrend persists

    Quoted equities continued on the downtrend yesterday as investors sought to rebalance their portfolios ahead of the expected Santa Claus rally and fourth quarter corporate earnings.

    Benchmark indices at the Nigerian Stock Exchange (NSE) indicated average decline of 0.46 per cent, equivalent to net capital loss of N62 billion. The average year-to-date return dropped to 40.59 per cent.

    The All Share Index (ASI)-the common value-based index that tracks share prices at the Exchange, declined from its opening index of 37,957.96 points to close at 37,783.76 points. Aggregate market value of all quoted equities also dropped from its opening value of N13.508 trillion to close at N13.446 trillion.

    With nearly two losers for every gainer, most sectoral indices closed negative. The NSE Banking Index dropped by 0.7 per cent. The NSE Industrial Goods Index declined by 0.4 per cent while the NSE Consumer Goods Index and NSE Oil & Gas Index dipped by 0.2 per cent each. On the upside,  the NSE Insurance Index appreciated by 0.8 per cent.

    Dangote Cement led the 26-stock losers’ list with a drop of N1.50 to close at N228.50. Dangote Sugar Refinery followed with a loss of N1.08 to close at N20.57. Forte Oil dropped by N1.02 to close at N43.48. Ecobank Transnational Incorporated lost 70 kobo to close at N16.80 while Cadbury Nigeria dropped by 50 kobo to close at N13.40 per share.

    Total turnover stood at 649.63 million shares valued at N5.43 billion in 3,888 deals. Transnational Corporation of Nigeria topped the activities chart with 360.34 million shares valued at N504.63 million. FBN Holdings followed with 63.8 million shares worth N567.02 million while Zenith Bank placed third with 62.51 million shares valued at N1.59 billion.

    On the positive side, Unilever Nigeria led the 15-stock gainers’ list with a gain of N1.79 to close at N41.99. Eterna followed with a gain of 16 kobo to close at N4.15. Access Bank rose by 6.0 kobo to close at N10.40 while Livestock Feeds, Continental Reinsurance, Fidelity Bank and United Bank for Africa appreciated by 4.0 kobo to close at 86 kobo, N1.39, N2.28 and N10.20 respectively.

    “Following the extended bearish sentiment, we anticipate a rebound in consequent sessions on account of bargain hunting,” Afrinvest Securities stated.

     

     

  • Equities lose N285.7b amidst profit-taking

    A mid-week profit-taking trend coloured the overall market performance at the Nigerian stock market last week, leaving the equities market with a net capital loss of about N295.75 billion at the weekend. While the equities market traded on the positive side for three of the five trading sessions, considerable sell pressure that resulted from profit-taking transactions on Wednesday and Thursday overshadowed the market performance.

    Benchmark indices at the Nigerian Stock Exchange (NSE) showed average week-on-week decline of 2.09 per cent, equivalent to net capital depreciation of N285.75 billion. The average year-to-date return also closed weekend lower at 43.02 per cent.

    With 16 gainers to 46 losers, the market traded with nearly three losers for every gainer. The All Share Index (ASI)-the main value-based index, thus declined from its week’s opening index of 39,257.53 points to close at 38,436.08 points. Aggregate market value of all quoted equities however rode on the back of new listings by International Breweries and Stanbic IBTC Holdings to close higher at N13.678 trillion as against its week’s opening value of N13.672 trillion.

    The negative overall market performance was due largely to sell-offs in the influential banking and industrial goods sectors. The NSE Banking Index recorded above average week-on-week decline of 5.33 per cent. The NSE Industrial Goods Index dropped by 4.79 per cent. The NSE Insurance Index dipped by 2.19 per cent while the NSE 30 Index-which tracks the 30 most capitalised quoted company, dropped by 2.18 per cent. However, the NSE Oil and Gas Index posted a return of 4.54 per cent while the NSE Consumer Goods Index recorded a modest return of 0.68 per cent.

    The momentum of activities also slowed down. Total turnover stood at 1.85 billion shares worth N51.52 billion in 23,863 deals as against a total of 3.32 billion shares valued at N36.45 billion traded in 29,771 deals penultimate week.

    The financial services sector led the activity chart with 1.38 billion shares valued at N17.14 billion traded in 14,334 deals; thus contributing 74.35 per cent and 33.26 per cent to the total equity turnover volume and value respectively. The consumer goods sector followed with 175.88 million shares worth N8.044 billion in 4,882 deals while conglomerates sector occupied the third position with a turnover of 134.88 million shares worth N821.65 million in 1,108 deals.

    The three most active stocks were Zenith International Bank Plc, FBN Holdings Plc and Diamond Bank Plc, which altogether accounted for 632.03 million shares worth N8.49 billion in 5,616 deals, contributing 34.13 per cent and 16.49 per cent to the total equity turnover volume and value respectively.

    Also traded during the week were a total of 1,120 units of Exchange Traded Products (ETPs) valued at N14,179 in four deals compared with a total of 1.189 million valued at N11.662 million traded in 30 deals in the previous week.

     

    A total of 5,382 units of Federal Government Bonds valued at N5.680 million were traded last week in 17 deals compared with a total of 5,240 units valued at N4.406 million traded in 23 deals two weeks ago.

    Linkage Assurance led the losers, in percentage terms, with a drop of 14.7 per cent to close at 58 kobo. Learn Africa followed with a decline of 14 per cent to close at 86 kobo. Flour Mills of Nigeria lost 11.9 per cent to close at N30.83. Sterling Bank dropped by 11.5 per cent to close at N1 while Nigerian Aviation Handling Company declined by 10.9 per cent to close at N4.01.

    On the positive side, Berger Paints led the gainers with a gain of 10.1 per cent to close at N8.09. Dangote Sugar Refinery rose by 8.3 per cent to close at N21.70. Nascon Allied Industries appreciated by 8.1 per cent to N19.30. Seplat Petroleum Development Company rose by 7.7 per cent to N540.05 while 11, formerly known as Mobil Oil Nigeria, appreciated by 6.4 per cent to close at N170 per share.

     

  • Equities relapse with N136b loss

    After a breather of a marginal recovery of N3 billion on Tuesday, Nigerian equities suffered a major relapse yesterday as investors continued with the rush to monetise recent capital gains and rebalance their portfolios.

    With 26 losers  to 19 gainers and a considerable slowdown in the momentum of activities, quoted equities on the Nigerian Stock Exchange (NSE) closed yesterday with an average decline of 1.0 per cent, equivalent to a net capital loss of N136 billion. The decline depressed the average year-to-date return for Nigerian equities to 43.39 per cent.

    The All Share Index (ASI)-the benchmark index at the Exchange dropped from its opening index of 38, 924.63 points to close at 38,534.64 points. Aggregate market value of all quoted equities also declined correspondingly from its opening value of N13.556 trillion to close at N13.420 trillion.

    All sectoral indices at the Exchange also closed negative with the exception of the NSE Oil & Gas Index which recorded a marginal gain of 0.1 per cent. The NSE Banking Index declined by 2.2 per cent. The NSE Industrial Goods Index dropped by 1.7 per cent. The NSE Consumer Goods Index slipped by 0.5 per cent while the NSE Insurance Index dropped by 0.1 per cent.

    Nigerian Breweries-Nigeria’s largest brewer and second most capitalised quoted company led the laggards with a drop of N3.67 to close at N139.65. Presco followed with a drop of N3.41 to close at N65. Guaranty Trust Bank and Lafarge Africa declined by N2 each to close at N39.90 and N45 respectively. Dangote Cement dropped by N1.12 to close at N239.88 while Zenith Bank lost N1 to close at N25 per share.

    Total turnover slowed down to 323.95 million shares valued at N4.40 billion in 5,168 deals. Sterling Bank was the most active stock with 43.62 million shares valued at N43.52 million. Diamond Bank followed with 36.96 million shares valued at N55.49 million shares while FBN Holdings placed third with 33.03 million shares worth N303.22 million.

    On the positive side, Nestle Nigeria further consolidated its lead as Nigeria’s highest-priced stock with a gain of N2.40 to close at all-time high of N1,462.50. 11-formerly known as Mobil Oil Nigeria, followed with a gain of N1.50 to close at N170. Guinness Nigeria rose by N1.15 to close at N95.20. Ecobank Transnational Incorporated added 69 kobo to close at N17.95. Dangote Flour Mills rose by  59 kobo to close at N12.59 while Nascon Allied Industries chalked up 50 kobo to close at N20 per share.

  • Profit-taking halts equities’ rally, shaves off N119b

    Nigerian equities market reopened yesterday to a considerable sell pressure as most investors sought to monetise capital gains from the recent rally. With two losers for every gainer, quoted equities lost N119 billion within the five-hour trading session.

    Aggregate market value of all quoted equities at the Nigerian Stock Exchange (NSE) dropped from its opening value of N13.672 trillion to close at N13.553 trillion. The All Share Index (ASI)-the benchmark value index for the Nigerian equities market, declined by 0.88 per cent to close at 38,913.99 points as against its opening index of 39,257.53 points. With this, the average year-to-date return moderated to 44.80 per cent.

    Most sectoral indices also closed negative, underlining the widespread profit-taking transactions at the Exchange. The NSE Banking Index dropped by 2.0 per cent. The NSE Industrial Goods Index declined by 1.4 per cent while the NSE Insurance Index dipped by 1.1 per cent. On the upside, the NSE Oil & Gas Index  rose by 1.1 per cent while the NSE Consumer Goods Index appreciated by 0.7 per cent.

    The negative overall market position was driven partly by losses suffered by high-cap stocks. Dangote Cement-Nigeria’s most capitalised quoted company, led the losers with a drop of N4.10 to close at N240.90. Nigerian Breweries-the second most capitalised company, followed with a drop of N2 to close at N143. Unilever Nigeria dropped by N1.11 to close at N40.50. Stanbic IBTC Holdings declined by N1 to close at N42. Presco lost 89 kobo to close at N68.41. Zenith Bank dropped by 88 kobo to close at N26.03 while Flour Mills of Nigeria and UAC of Nigeria lost 81 kobo each to close at N34.19 and N16.70 respectively.

    The momentum of activities also slowed down with a turnover of 350.6 million shares valued at N4.9 billion; representing about 34 per cent day-on-day decline in turnover volume.FBN Holdings was the most active stock with a turnover of 61.27 million shares valued at N553.14 million. Zenith Bank followed with 35.32 million shares valued at N928.74 million while Diamond Bank placed third with 34.08 million shares valued at N47.58 million.

    On the positive side, Nestle Nigeria-the highest-priced quoted company, led the gainers with a gain of N49.92 to close at N1,460. Mobil Oil Nigeria followed with a gain of N15.14 to close at N174.96. Total Nigeria rose by N1.99 to close at N230. Nascon Allied Industries added 89 kobo to close at N18.74. Dangote Sugar Refinery chalked up 66 kobo to close at N20.69. Cadbury Nigeria rallied 45 kobo to close at N16.35 while Dangote Flour Mills added 26 kobo to close at N11.66 per share.

    “Profit taking is likely to be sustained till midweek. However, as year-end approaches, we expect market activity and investors’ sentiments to be positive driven by portfolio rebalancing by fund managers,” FSDH Securities stated.

    Analysts at Afrinvest Securities also noted that the decline was in line with expectation as investors booked profit in large-cap stocks which rallied in the previous week.

    “Nonetheless, we maintain a positive outlook in the near term as fund managers return to strategic weightings during year-end rebalancing cycle,” Afrinvest Securities stated.

     

  • Equities rally to new high with N203b gain

    Nigerian equities yesterday rallied to their highest point so far this year and their best performance in the past three years. With average day-on-day gain of 1.51 per cent and net capital appreciation of N203 billion, the average year-to-date return now stands at 45.40 per cent.

    The All Share Index (ASI) gained 580.87 absolute points, representing a growth of 1.51 per cent to close at 39,075.30 points. Similarly, the market capitalisation rose by N20s billion to close at N13.609 trillion.

    With 40 gainers to 13 losers, the sustained rally was spurred by widespread rally across the sectors, especially gains recorded by medium and large capitalised stocks including Okomu Oil, Nigerian Breweries, Flourmill Nigeria, Unilever Nigeria and Nascon Allied Industries.

    FBN Holdings recorded the highest price gain of 10.12 per cent to close at N8.49 per share. Transcorp followed with a gain of 9.42 per cent to close at N1.51, while Diamond Bank appreciated by 9.29 per cent, to close at N1.53 per share.  FCMB Groups went up by 9.09 percent, to close at N1.32, while Nascon rose by 8.77 per cent to close at N17.12 per share.

    On the downside, GlaxoSmithKline Consumer Nigeria led the losers’ chart by five per cent, to close at N21.66 per share. Studio Press followed with a decline of 4.78 per cent to close at N1.99, while Learn Africa depreciated by 4.76 per cent to close at N1 per share. Linkage Assurance declined by 4.62 percent, to close at 62 kobo and Caverton Offshore Support Group declined by 4.61 per cent to close at N1.45 per share.

    Total turnover increased by 34.7 per cent to 703.68 million units valued at N7.3 billion in 6,125 deals. Transactions in the shares of Custodian and Allied Insurance topped the activity chart with 131.82 million shares valued at N494.4 million. UBA followed with 92.46 million shares worth N986.68 million. FBN Holdings transacted 86.45 million shares worth N732.1 million. Zenith Bank traded 71.18 million shares valued at N1.84 billion while Transcorp traded 46.53 million shares worth N69.58 million.

    Analysts at Cordros Capital noted that “notwithstanding the possibility of profit taking after six consecutive days of gain, we think market fundamentals remain strong, providing legroom for further gains”.

    Analysts at Afrinvest Securities Limited said the market might witness a pullback following the spate of gains recorded through the week.

     

     

  • Investors gain N4tr in equities

    Investors gain N4tr in equities

    Equities investors in the Nigerian Stock Exchange (NSE) have accumulated capital gains of about N4 trillion over the past 11 months.  Low valuations, improved macro economy and more coordinated monetary policy management, led to sustained considerable rally across the stock market.

    Benchmark indices at the NSE showed average year-to-date gain of 41.19 per cent for the 11-month period ended November 30, 2017, equivalent to net capital gain of about N3.97 trillion, representing a two-month increase of 33.7 per cent on net capital gain of N2.97 trillion recorded at the end of third quarter (Q3).

    With largely positive and steady Q3 corporate earnings and stronger macroeconomic data, quoted equities rode above recurring profit-taking transactions, to sustain month-on-month positive trend.

    With a net capital gain of N3.97 trillion by November, investors have almost technically recovered what they had lost in the past three years, a major recovery that could reverberate across many other sectors, especially finance and investment institutions with large exposures to equities.

    The stock market had been on a losing streak since 2014. Investors lost N1.75 trillion in 2014 and followed this with another loss of N1.63 trillion in 2015. Against the general expectation that political transition and new government will quicken a rebound, equities closed 2016 with a net capital loss of N604 billion. Aggregate market value of all quoted equities on the NSE closed 2016 at N9.247 trillion as against N13.226 trillion recorded at the start of trading in 2014, representing a net capital loss of N3.98 trillion.

    Aggregate market value of all quoted equities closed November 2017 at N13.215 trillion as against its opening value of N9.247 trillion for the year, representing net capital gain of N3.968 trillion. The All Share Index (ASI)-the main common price index that tracks share prices at the NSE, indicated 11-month return of 41.19 per cent, rising from the year’s opening index of 26,874.62 points to close this weekend at 37,944.60 points.

    Investors in the banking sector were far ahead of other sectors with the NSE Banking Index indicating average year-to-date return of 71.60 per cent for the 11-month period. The NSE 30 Index, which tracks the 30 most capitalised companies, posted above average return of 43.51 per cent, underlining the fact that the recovery was partly driven by large-cap stocks. The NSE Consumer Goods Index ended the period with 28.87 per cent. The NSE Industrial Goods Index recorded the second highest sectoral gain of 33.08 per cent. The NSE Insurance Index posted a modest return of 10.97 per cent. However, the NSE Oil and Gas Index remained on the downtrend with a negative return of -7.01 per cent.

    The recovery also impacted positively on the Nigerian pension industry and ethical finance segment. The NSE Pension Index, which tracks stocks specially screened in line with pension investment guidelines, showed that pensioners might be in for wider dining tables with above-average return of 62.58 per cent. The NSE Lotus Islamic Index-which tracks stocks that comply with the Islamic law, recorded considerable return of 32.58 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 11-month performance further confirmed quoted equities as the most attractive asset class for the period. With inflation rate at 15.9 per cent and the benchmark interest rate at 14 per cent, average inflation and interest-adjusted return remains in double digit at about 11.3 per cent.

    The past two months had built on considerable gain made by the third quarter of the year. Aggregate market value of all quoted equities on the NSE had closed the third quarter at N12.217 trillion, representing net capital gain of N2.97 trillion or 32.1 per cent. The ASI had also crossed nine levels to close September at 35,439.98 points, representing an increase of 31.87 per cent.

    Quarter-on-quarter analysis showed that the ASI has already surpassed its third quarter performance within the first two months of the fourth quarter. Between October and November, the ASI recorded average gain of 7.07 per cent compared with 7.01 per cent recorded in the third quarter. The performance so far in the fourth quarter was driven largely by the industrial goods and banking sectors.

  • Equities rebound with N88b gain

    Quoted equities staged a major recovery yesterday as bargain-hunters sought to take advantage of recent decline in share prices to rebalance their portfolios. Most indices at the Nigerian Stock Exchange (NSE) trended upward with the average year-to-date return rising to 39.55 per cent.

    The All Share Index (ASI)-the benchmark price index at the stock market rose by 0.68 per cent to close at 37,503.73 points as against its opening index of 37,250.78 points. With more than two gainers for every loser, aggregate market value of all quoted equities rose from N12.973 trillion to close at N13.061 trillion.

    Most sectoral indices also closed positive. The NSE Consumer Goods Index rose by 0.9 per cent. The NSE Industrial Goods Index and NSE Banking Index rallied 0.3 per cent each while the NSE Insurance Index closed flat. However, the NSE Oil & Gas Index declined by 0.3 per cent.

    There were 25 gainers against 11 losers. Nigerian Breweries led the gainers with a gain of N6.43 to close at N137.60. Stanbic IBTC Holdings rose by N1.85 to close at N41.85. Dangote Cement chalked up N1 to close at N241. Cement Company of Northern Nigeria added 43 kobo to close at N9.40 while Global Spectrum Energy Services rose by 26 kobo to close at N5.51 per share.

    On the negative side, Mobil Oil Nigeria led the losers with a drop of N5.40 to close at N162.50. Guinness Nigeria declined by N1.42 to close at N98.58. PZ Cussons Nigeria lost N1.15 to close at N22.72. Okomu Oil Palm dropped by 78 kobo to close at N67.22 while Dangote Sugar Refinery dipped by 26 kobo to close at N17.55 per share.

    Total turnover trended above average with the exchange of 1.1 billion shares valued at N4.8 billion in 4,089 deals. Wapic Insurance was the most active stock with a turnover of 655.35 million shares valued at N327.67 million. Diamond Bank followed with 68.21 million shares worth N80.33 million while Zenith Bank placed third with 62.74 million shares valued at N1.56 billion.

    “Given today (Tuesday)’s performance and improved market breadth, we expect market performance and sentiment in the near term to remain positive as investors continue to take positions in anticipation of year-end rally,” Afrinvest Securities stated.

     

  • Equities in tight market with N7b gain

    •Union Bank in N471m deal

    Equities traded in a tight market situation yesterday as considerable rally within high-cap stocks counterbalanced widespread sell pressure to close the market with a marginal gain of N7 billion.

    The benchmark index at the Nigerian Stock Exchange (NSE) showed a marginal day-on-day gain of 0.02 per cent. The marginal gain nudged the average year-to-date return for Nigerian equities to 36.22.

    The All Share Index (ASI) rose to 36,608.76 points as against its opening index of 36,600.07 points. Aggregate market value of all quoted equities also rose marginally from its opening value of N122.738 trillion to close at N12.745 trillion.

    With 17 gainers to 23 losers, the positive market situation, though marginal, was driven by gains recorded by large-cap stocks such as Nestle Nigeria, Unilever Nigeria, Zenith Bank, Dangote Sugar Refinery and United Bank for Africa (UBA).

    One major highlight of the trading yesterday was three negotiated off-market deals struck for 69.36 million shares of Union bank of Nigeria at N6.80 per share.

    Most sectoral indices closed positive. The NSE Consumer Goods Index rose by 0.3 per cent. The NSE Banking Index and NSE Insurance Index rallied by 0.2 per cent each while the NSE Oil & Gas Index and NSE Industrial Goods Index closed flat.

    Unilever Nigeria led the gainers, in percentage terms, with a gain of 5.69 per cent to close at N39.95 per share. Linkage Assurance followed with a gain of 4.92 per cent to close at 64 kobo. Wapic Insurance appreciated by four per cent to close at 52 kobo per share. Neimeth International rose by 3.39 per cent to close at 61 kobo while Learn Africa gained 3.19 per cent to close at 97 kobo.

    On the downside, GlaxoSmithKline Consumer Nigeria led the losers with a drop of 9.70 per cent to close at N22.80 per share. Flour Mills of Nigeria followed with a loss of 4.98 per cent to close at N31.50. Livestock Feeds shed 4.55 per cent to close at 84 kobo per share. Julius Berger Nigeria declined by 4.53 per cent to close at N28 while UAC of Nigeria declined by 3.82 per cent to close at N16.35 per share.

    Total turnover rose by 28.4 per cent to 331.24 million shares valued at N5.56 billion in 3,231 deals. Union Bank of Nigeria topped the activity chart with 70.74 million shares valued at N480.18 million. Custodian and Allied Insurance followed with 55.18 million shares worth N207.02 million while Tantalizer traded 43 million shares valued at N21.5 million.

    “Although market performance was positive, investor sentiment has softened for the third consecutive day due to an absence of fundamental sentiment drivers. Notwithstanding, we expect market performance to stay positive in the near term as investors position ahead of anticipated year-end rally,” Afrinvest Securities stated.

  • Equities lose N144b as investors await CBN decisions

    Equities lose N144b as investors await CBN decisions

    Investors scrambled to realign their portfolios and lock in profit ahead of the meeting of the Monetary Policy Committee (MPC) of the Central Bank of Nigeria ( CBN ). A midweek selling spree left the equities market with a net capital depreciation of N143.9 billion last week as investors anxiously await the decisions of the MPC.

    The MPC is scheduled to meet between today and tomorrow during which the apex bank will review its monetary policy tools and rates, in the light of current macro-economic and global outlook. While many analysts expected the apex bank to retain its current rates, some analysts said improving macro-economic performance, though still fragile, could encourage the apex bank to cut rates.

    With more than two losers to every gainer, quoted equities on the Nigerian Stock Exchange (NSE) traded largely on the negative during the week. The All Share Index (ASI)-the benchmark index that tracks share prices at the Exchange, recorded a week-on-week decline of 1.12 per cent to close the week at 36,703.58 points as against its week’s opening index of 37,120.28 points.

    Aggregate market value of all quoted equities also dropped from its week’s opening value of N12.847 trillion to close at N12.774 trillion. The difference between the ASI and aggregate market value was due to the listing of new shares by two companies-Unilever Nigeria and Trans-Nationwide Express. All other sectoral indices also closed negative with the exception of the NSE Oil and Gas Index, which appreciated by 0.85 per cent. Average year-to-date return depressed to 36.57 per cent.

    Total turnover stood at 2.80 billion shares worth N54.78 billion in 17,792 deals last week as against a total of 1.32 billion shares valued at N13.78 billion traded in 19,169 deals two weeks ago. Financial services sector remained atop activity chart with 2.352 billion shares valued at N8.995 billion traded in 9,364 deals; thus contributing 83.88 per cent and 16.42 per cent to the total equity turnover volume and value respectively. The consumer goods sector followed with 178.982 million shares worth N16.849 billion in 4,297 deals while the third place was occupied by industrial goods sector with a turnover of 140.570 million shares worth N27.848 billion in 794 deals.

    The three most active stocks were Sovereign Trust Insurance Plc, FBN Holdings Plc and Dangote Cement Plc, which altogether accounted for 1.917 billion shares worth N29.875 billion in 2,130 deals, contributing 68.37 per cent and 54.54 per cent to the total equity turnover volume and value respectively.

    In the sovereign debt market, a total of 5,950 units of Federal Government Bonds valued at N6.247 million were traded in two deals, compared with a total of 2,806 units valued at N2.623 million traded in 16 deals penultimate week.

    Sectoral indices showed a market-wide sell pressure. The NSE 30 Index, which tracks the 30 most capitalised stocks at the NSE, recorded a week-on-week decline of 1.37 per cent. The NSE Consumer Goods Index recorded the highest loss of 2.89 per cent. The NSE Banking Index depreciated by 1.29 per cent. The NSE Insurance Index dipped by 1.98 per cent while the NSE Industrial Goods Index declined by 1.03 per cent.

    There were 20 gainers against 43 losers last week as against 30 gainers and 29 losers recorded in the previous week. AG Leventis Nigeria recorded the highest gain, in percentage terms, of 27.3 per cent to close at 70 kobo. Forte Oil followed with a gain of 10.3 per cent to close at N48.62 while BOC Gases rose by 9.9 per cent to close at N4.56 per share. On the other hand, Caverton Offshore Support Group recorded the highest loss of 21.4 per cent to close at N1.32. Linkage Assurance dropped by 17.7 per cent to close at 56 kobo while C & I Leasing declined by 13.8 per cent to close at N1.44 per share.

     

    “Despite the noticeable easing of external sector pressures and improving growth prospect, we believe that in line with outcomes of previous meetings held this year, the MPC would retain rates at current level, owing to the fragility of the economic recovery and disappointing inflation numbers witnessed so far in third quarter 2017,” Afrinvest Securities stated.