The Nation Newspaper

Tag: equities

  • Equities rally N294b gain as CBN releases forex guidelines

    Equities rally N294b gain as CBN releases forex guidelines

    The release of the much-awaited guidelines for the flexible foreign exchange policy of the Central Bank of Nigeria (CBN) triggered a scramble for Nigerian equities, leaving the market with a net gain of N294 billion.

    Against the background of sustained depression in share prices over the past three weeks attributed to foreign exchange (forex) uncertainties, the announcement by the CBN excited both foreign and domestic investors. With more than three advancers for every decliner, the stock market spiraled to its best performance so far this month.

    In the new flexible foreign exchange system, the apex bank will merge all existing segments of foreign exchange market into a single “window”, which pricing will be determined by market forces with limited intervention from the apex bank. In essence, Naira will flow according to market forces with effect from Monday June 20.

    Foreign investors, who account for more than half of Nigerian stock market transactions, who had stayed on the sidelines due to foreign restriction joined the bargain-hunting at the Nigerian Stock Exchange (NSE).

    Aggregate market value of all quoted equities rose to N9.579 trillion from its opening value of N9.285 trillion, indicating a gain of N294 billion. The All Share Index (ASI)-the benchmark index for the stock market, rose by 3.17 per cent to the month’s high of 27,891.96 points as against its opening index of 27,034.05 points. The steep gain pared the negative average year-to-date return to 0-2.62 per cent.

    Market pundits were unanimous that the release of the framework for the flexible forex policy was the main driver for the market.

    “Investments were largely stimulated by Central Bank’s clarification on its flexible foreign exchange policy which reduced uncertainty in the financial markets,” Cowry Asset Management stated.

    Dangote Cement, NSE’s most capitalised stock, led 32 other stocks on the gainers’ list with a gain of N8.20 to close at N172.20. Mobil Oil Nigeria followed with a gain of N7.99 to close at N169.50. Nigerian Breweries rose by N5.75 to close at N133.75. Guinness Nigeria added N4.90 to close at N102.90 while Guaranty Trust Bank gathered N1.44 to close at N19.95 per share.

    Total turnover was above average with the exchange of 588.42 million shares valued at N3.48 billion in 5,088 deals. The three most active stocks were United Bank for Africa (UBA), with 197.20 million shares; Skye Bank, 74.55 million shares and FCMB Group, with 54.49 million shares.

  • Profit-taking pushes equities to marginal decline

    Nigerian equities opened this week with a tinge of bearishness as investors sought to take profit on recent price appreciation. Increased sale orders turned the overall market situation into a buyer’s market, closing most transactions on discount.

    Aggregate market value of all quoted equities on the Nigerian Stock Exchange (NSE) dropped marginally by N12 billion from its opening value of N9.491 trillion to close at N9.479 trillion. The All Share Index (ASI) also slipped from 27,634.42 points to close at 27,598.54 points, representing a marginal decline of 0.13 per cent.

    With this, the average year-to-date return now stands at -3.64 points. There were 24 losers against 16 gainers yesterday as turnover slowed down below average. Total Nigeria recorded the highest loss of N7.45 to close at N162.55. Guinness Nigeria dropped by N2.95 to close at N99.05. Julius Berger Nigeria declined by 90 kobo to close at N42.10. Stanbic IBTC Holdings dropped by 78 kobo to close at N14.97. Flour Mills of Nigeria lost 70 kobo to close at N21.30 while Guaranty Trust Bank droped by 40 kobo to close at N18.80 per share.

    Turnover also dropped below average with the exchange of 142.33 million shares valued at N1.43 billion in 3,695 deals. Low-priced banking stocks dominated the top activities chart. The three most active stocks were: Diamond Bank, with 14.98 million shares; FCMB Group, 14.80 million shares and Access Bank, with 14.01 million shares.

    Analysts agreed that the negative market situation was driven mainly by profit-taking transactions. FSDH Securities stated that “profit takers dominated the first trading day of the week”.

    “Today’s negative performance was broadly driven by profit taking as expectations of the Apex Bank’s announcement on a flexible exchange rate policy stifles momentum. We expect the market to continue southwards tomorrow,” Afrinvest Securities, a Lagos-based dealer on the NSE, stated in post-trading review.

    Meanwhile, Dangote Cement and CAP led the contrarian stocks with a gain of N1.50 each to close at N171 and N38 respectively. Union Dicon Salt followed with a gain of N1.27 to close at N13.70. Ashaka Cement rose by N1 to close at N21.03 while International Breweries added 40 kobo to close at N20 per share.

  • UBA leads as equities rally N214b gain

    UBA leads as equities rally N214b gain

    United Bank for Africa (UBA) Plc jumped to the front of the counter at the stock market as quoted equities sustained their upswing with a gain of N214 billion last week. In a tight market with nearly one gainer to every loser, significant rally in the banking sector led by UBA boosted the overall market position.

    Benchmark indices at the Nigerian Stock Exchange (NSE) indicated a week-on-week gain of 2.55 per cent. The NSE Banking Index recorded average return of 6.60 per cent, with UBA leading the charge with a gain of about 22.6 per cent.

    The All Share Index (ASI)-the value-based index that serves as sovereign index for the Nigerian equities market, crossed another level to close at 27,116.45 points as against its week’s opening index of 26,441.03 points, representing an increase of 2.55 per cent.

    Aggregate market value of all quoted companies rose from the week’s opening value of N9.099 trillion to close at N9.313 trillion, showing an increase of N214 billion or 2.36 per cent. The difference between the ASI and total market capitalisation was due to the delisting of eight companies during the week.

    There were 35 gainers to 37 losers last week as against 54 gainers against 17 losers recorded in the previous week. A total of 109 equities closed flat last week compared with 118 equities that closed unchanged in the previous week.

    UBA led the gainers with a gain of 22.59 per cent to close at N4.45 per share. Conoil followed with a gain of 20.67 per cent to close at N23. Oando rallied 13.42 per cent to close at N6. Trans Nationwide Express rose by 12.71 per cent to close at N1.33 while Access Bank appreciated by 10.77 per cent to close at N5.35.

    Turnover also showed improved investors’ appetite as investors scrambled for undervalued bargain stocks. Total turnover stood at 2.45 billion shares worth N13.145 billion in 23,680 deals last week as against a total of 1.83 billion shares valued at N14.47 billion traded in 20,058 deals two weeks ago. The financial services sector led the activity chart with a turnover of 2.01 billion shares valued at N9.49 billion in 14,200 deals; representing 82.3 per cent of the total equity turnover volume. Conglomerates sector followed with 208.48 million shares worth N268.05 million in 1,134 deals. The oil and gas sector placed third with a turnover of 80.27 million shares worth N692.61 million in 2,826 deals.

    The trio of Wema Bank Plc, Zenith International Bank Plc and Access Bank Plc were the most active with the three stocks jointly accounting for 871.33 million shares worth N5.30 billion in 3,956 deals, representing 35.6 per cent of the total equity turnover volume.

    Also, a total of 307,411 units of Exchange Traded Products (ETPs) valued at N21.406 million were traded in 38 deals last week compared with a total of 382,448 units valued at N10.288 million traded in 43 deals two weeks ago.

    In the bond market, a total of 4,143 units of Federal Government Bonds valued at N4.248 million were traded in eight deals as against a total of 8,033 units of Federal Government valued at N8.923 million traded in six deals in the previous week.

    On the downside, Vitafoam Nigeria recorded the highest loss of 20.85 per cent to close at N4.29. Tiger Branded Consumer Goods followed with a drop of 19.87 per cent to close at N4.80. NCR dropped by 14.14 per cent to close at N8.99. Unilever Nigeria declined by 13.89 per cent to close at N31 while Ikeja Hotel depreciated by 13.88 per cent to close at N2.11 per share.

    “As positive sentiments have thrived in the market on account of government reforms which have been implemented, investors now look forward to the outcome from the deliberations at the Monetary Policy Committee (MPC) meeting in the coming week and this is expected to drive market performance,” Afrinvest Securities, a Lagos-based dealer at the NSE, stated in a weekend note on the outlook of the market this week.

    The MPC is expected to begin a two-day meeting today to review global and economic developments within the last two months and the impact on the Nigerian economy.

    Analysts at Afrinvest Securities stated that while predicting the actual line of action of the MPC appears dicey, the most probable option for the MPC may be to adjust the peg on foreign exchange rate close to the N285 per dollar rate as guided by Petroleum Products Pricing Regulatory Agency (PPPRA).

  • Profit-taking pushes equities to N51b loss

    After three consecutive positive trading sessions, Nigerian equities suffered a relapse yesterday as investors sought to take profit on many highly capitalised stocks that had driven the recent rallies.

    While the underlying sentiments remained positive with more gainers than losers, losses suffered by the highly capitalised stocks coloured the overall market position. The two main common indices at the Nigerian Stock Exchange (NSE) indicated average decline of 0.58 per cent, equivalent to a loss of N51 billion after the close of trading.

    The All Share Index (ASI)-the common index that tracks prices of all quoted equities, declined from its opening index of 25,865.50 points to close at 25,715.42 points, representing a day-on-day decline of 0.58 per cent.

    Aggregate market capitalization of all quoted equities dropped from N8.897 trillion to close at N8.846 trillion, indicating a loss of N51 billion. Expectedly, the losses by the highly capitalised stocks also weighed on the sectoral indices. The NSE Banking Index dropped by 1.0 per cent. The NSE Oil & Gas Index also declined by 0.6 per cent while the NSE Industrial Goods Index and NSE Insurance Index slipped by 0.1 per cent each. However, the NSE Consumer Goods Index rose by 0.2 per cent.

    There were 26 gainers to 19 losers. Analysts at FSDH Securities, Cowry Asset Management and Afrinvest Securities agreed that the negative overall market position was due to profit-taking on the leading stocks. The major losers included Ecobank Transnational Incorporated, which dropped by 5.2 per cent; Forte Oil, which dropped by 1.8 per cent; Dangote Cement, which lost 1.5 per cent; PZ Cussons Nigeria, which declined by 5.0 per cent and Fidson Healthcare, which lost 4.9 per cent..

    Total turnover was above recent average with the exchange of 330.56 million shares valued at N2.26 billion in 4,053 deals. Banking stocks continued to dominate activities chart. The three most active stocks were FBN Holdings, with 117 million shares; United Bank for Africa, 33.19 million shares and Fidelity Bank, with 32.83 billion shares.

    “Today’s performance was broadly driven by profit taking which may be sustained tomorrow in the absence of any market moving news flow, however we expect a positive close for the week,” Afrinvest Securities stated.

     

  • 51 foreign investors exit equities, bond markets

    51 foreign investors exit equities, bond markets

    Fifty-one foreign investors repatriated profits from their investments in equities and Federal Government of Nigeria (FGN) bonds last week.

    The investors considered Nigeria’s foreign exchange policies of the Central Bank of Nigeria (CBN), especially its refusal to devalue the naira, unfavourable to their investments. They pushed the transactions through Stanbic IBTC Bank, published data on forex disbursement for last week showed.

    The major part of the $15.91 million forex was disbursed by the lender to investors divesting from the country, local businesses importing petroleum products, payment of school fees abroad and settlement of Personal Travel Allowances (PTAs) and Business Travel Allowances (BTAs).

    Details of the transactions showed that foreign investors took $6.8 million of the disbursed cash. Stanbic IBTC Bank disbursed $100,000 to 32 investors divesting from the equities market. The beneficiaries are Merill Lynch International, HSBC, Brown Brothers, JPM Securities, The Bank of New York Mellon 1, The Bank of New York Mellon 2, HSBC Funds Services London, Deutsche Bank London, Standard Bank of South Africa, and Credit Suisse International, among others.

    For raw materials, the bank disbursed $1 million each to Pure Flour Mills Nigeria Plc and Flour Mills Nigeria Plc. Bua Sugar Refinery got $500,000 for the importation of raw sugar. Prudent Energy & Services Limited $1,170,267.10 for petroleum products.

    General sentiments in the equities market were bearish. Average yield across benchmark bonds closed at 11.6 per cent at the end of the first trading session of the week, rising five basis points from the last trading session of the previous week.

    Though the spread between the official and parallel forex market remains, the volatility recorded in rates earlier in the year has subsided. The CBN, however, is still unable to meet the dollar demands as seen in the amount returned by the CBN to the Deposit Money Banks for unfilled bids at the forex auction.

    The official naira rate at the CBN remained at N197 to dollar whilst naira/dollar rates at the Interbank stayed at N199 to dollar. The naira/dollar rate was stable at the Bureau-De-Change as it exchanged at N320 to dollar on all trading days of last week. The parallel market also remained stable as the local currency exchanged at N323 to dollar on all trading day of the week, except Monday when it appreciated by N1.00 to N322 to dollar. Current Gross foreign reserves level was at $27.47 billion as at April 14, down about $70 million from last Monday’s reserve level.

    GTBank disbursed forex to 82 customers, including Dozzy Oil and Gas, which got $1.16 million. Danium Energy Services, Midland Rolling Mills; M.R.S Oil and Gas; Shiv Lila Polymers Limited each got $1 million for raw materials import. The bank also paid school fees to over 25 customers. Several others got PTAs.

    United Bank for Africa (UBA) Plc paid $1 million to IATA for remittances for ticket sales; $1 million to Matric Energy for the importation of dual purpose kerosene and $1 million to NFE Industry Limited for the importation of Prime Steel Bullets. There were several other disbursements for BTAs and PTAs customers as well as parents paying school fees for their children abroad.

    Fidelity Bank disbursed $100,000 each to United Africa Laboratory Limited and Onward Stationary Stores Limited for the importation of sealing machines and uncoated woodfree offset paper. There were several disbursements for school fees.

    Access Bank disbursed $1 million to Air France for ticket sales remittances and $1.9 million to Blakeney Management for repatriation. There were other disbursements to Bhojsons, Techno Oil Limited and Nestle Nigeria Plc, among others.

    Other lenders that made forex disbursements during the week were FirstBank, First City Monument Bank, Wema Bank and Sterling Bank, among others.

    The funds were sourced from the Central Bank of Nigeria (CBN) and sold to the beneficiary customers at the official rate of N197.50 to dollar. The beneficiaries used the funds for the importation of goods, services and other items that fall within the CBN-stipulated import approval list.

    CBN Governor, Godwin Emefiele has consistently assured stakeholders that the country will continue to meet mature financial obligations to foreign investors and her international trading partners.

    For the CBN, the ongoing weekly publications on forex utilisation are meant to promote transparency and accountability on the side of the lenders, which act as a link between the regulator and the forex users.

  • Banks channel forex to investors exiting equities, bond markets

    Banks channel forex to investors exiting equities, bond markets

    Foreign investors repatriating profits and others exiting the Nigeria equities and bond markets last week triggered a rise in foreign exchange (forex) disbursement by leading banks.

    Many of the investors, after liquidating their investments, secured forex to repatriate their funds through Stanbic IBTC Bank. The lender disbursed $19,305,571.50 to 68 customers,   according to published disbursement data for last week.

    JPM London secured $3,331,564.24 from Stanbic IBTC for its divestment of equities and Federal Government of Nigeria (FGN) Bonds. There was also $2,010,690.01 disbursed to State Street/Stanbic Nominees-E by the lender for the same purpose.

    BP2S/BNP Pribas obtained $130,167.61; Standard Bank of South Africa, $541,671.31; Merrill Lynch International $63, 767.89; HSBC Funds Services London, $394,210.30; and The Bank of New York Mellon 2, $206,317.82.

    The foreign investors have been pressurising the Central Bank of Nigeria (CBN) to devalue the naira, which it has vehemently resisted. Last week’s repatriation of investments is expected to continue in the months ahead as the margin between the official exchange rates has continued to widen.

    The naira/dollar exchange rate remained unchanged at N197 to dollar at the CBN and N199.50/US$1 at the interbank market. At the Bureau-De-Change, the naira appreciated against the dollar marginally on all trading days of last week, with the Naira/Dollar rate trending lower from N322.00/$1 on Tuesday (appreciating N1 from Thursday) to close at N320/$1.00 on Friday. The parallel market was also stable as Naira/Dollar traded for N323/$1 on all trading days save for Wednesday when it rose marginally to N324.00/$1.

    Stanbic IBTC also disbursed $6 million in three tranches to Rain Oil for the importation of petroleum products and $1,082,440.37 to GZ Industries Limited for aluminum coils import and $100,000 in Personal Travel Allowances (PTAs) to 25 customers.

    Diamond Bank led other lenders with $20,084,368 disbursed to 222 customers, mainly for school fees payment, PTAs and importation of petroleum products.

    Zenith Bank Plc disbursed $13, 107,525.71 to 362 customers. The lender disbursed $3,646,399.15 to Tiger Branded Consumer for Canadian Milling Wheat. Virgin Atlantic got $1 million for air ticket sales remittance.

    Oando Marketing secured $360,000 in two tranches for importation of petroleum products. The bank also made disbursements to Seven-Up Bottling Company Plc; Sonia Foods Industries Limited; Emerging Markets Telecom Services; Boulous Enterprises Limited; Honeywell Flour Mills Plc. There were several Personal Travel Allowances (PTAs), among others.

    United Bank for Africa (UBA) Plc also disbursed forex to 242 customers. Some of the big beneficiaries are: Total and Eterna Oil which accessed $1,201,649.61 and $1, 449,358.03 restively. The lender also funded $1 million remittance tickets for IATA and several other transactions for school fees payment.

    FirstBank disbursed $6 million in two tranches to Gulf Treasures Limited for the importation of petroleum products. There was also $1.943,612.48 disbursed to Elephant Group Limited for NPK -15-15-15 bulk importation. The bank also disbursed to customers for the payment of school fees and PTAs.

    Other lenders that got forex are Diamond Bank, GTBank, First City Monument Bank, Wema Bank.

    The funds were sourced from the Central Bank of Nigeria (CBN) and sold to the beneficiary customers at the official rate of N197.50 to dollar. The beneficiaries used the funds for the importation of goods, services and other items that fall within the CBN-stipulated import approval list.

    CBN Governor Godwin Emefiele has consistently assured stakeholders that the country will continue to meet financial obligations to foreign investors and her international trading partners.

    The weekly publications on forex utilisation are meant to promote transparency and accountability on the side of the lenders, which act as a link between the regulator and the forex users.

  • Equities sustain modest rally with N70b gain

    Nigerian equities surmounted a mid-week increase in benchmark interest rate to sustain a modest rally last week as investors continued bargain-hunting for dividend-paying and undervalued stocks.  Key indices at the Nigerian Stock Exchange (NSE) indicated a week-on-week gain of 0.80 per cent, equivalent to about N70 billion.

    The market faltered on Wednesday, the first trading session after the Central Bank of Nigeria (CBN) increased interest rate, but equities rallied back on Thursday after investors discounted the double-digit yields for fixed income securities against the mid-to-long-term values of mostly undervalued equities.

    The Monetary Policy Committee (MPC) of the apex bank had on Tuesday announced the increase in the Monetary Policy Rate (MPR) from 11 per cent to 12 per cent.

    Equities have sustained a largely positive outlook this month, riding on the back of announced and prospective earnings. Not less than five companies announced their audited annual reports and accounts last week, with dividend recommendation in most instances running around double-digit dividend yields.

    The considerable dividend yields and prospects of capital gains have quickened investors’ appetite in recent trading sessions. The rally has however remained around influential highly capitalised stocks while underlying selling sentiments continued to depress several stocks.

    Aggregate market value of all quoted equities rose from its week’s opening value of N8.839 trillion to close the four trading-sessions week at N8.909 trillion. The All Share Index (ASI)- the common index that tracks prices of all quoted equities, closed the week at 25,899.91 points as against its week’s opening index of 25,694.79 points.

    There were 22 advancers against 38 decliners last week as against 20 advancers and 41 decliners recorded in the previous week. The larger chunk of quoted equities, especially in the insurance and information and communication technology sectors, remained dormant. A total of 129 stocks were unchanged last week as against 128 stocks that closed flat in previous week.

    Sectoral analysis underlined the continuing widespread selling pressure in spite of the positive overall market position. While gains by highly capitalised stocks boosted many indices, most indices closed on the negative. The NSE Main Board Index, which tracks all quoted equities on the main board, rose by 1.68 per cent. The NSE 30 Index, which tracks the 30 most capitalised stocks, recorded a week-on-week gain of 1.47 per cent. The NSE Banking Index appreciated by 1.37 per cent while the NSE Consumer Goods Index increased by 4.96 per cent.

    On the negative side, the NSE Premium Index, which tracks the trio of Dangote Cement, FBN Holdings and Zenith Bank Internationals, dropped by 0.66 per cent. The NSE Insurance Index depreciated by 1.65 per cent. The NSE Oil and Gas Index recorded the highest loss of 3.69 per cent. The NSE Industrial Goods Index declined by 0.37 per cent. The NSE ASeM Index, which tracks emerging stocks, dropped by 0.21 per cent. The NSE Lotus Islamic Index, which tracks stocks that comply with Islamic investment rules, slipped by 0.90 per cent while the NSE Pension Index, which tracks some 40 stocks specially screened in line with pension investment rules, depreciated by 0.31 per cent.

    United Capital recorded the highest percentage gain of 17.65 per cent to close at N2. Fidelity Bank followed with a gain of 14.17 per cent to close at N1.37. Nigerian Breweries rose by 12.10 per cent to close at N117.70. Vitafoam Nigeria rallied 10.02 per cent to close at N4.72 while Transnational Corporation of Nigeria rose by 6.25 per cent to close at N1.19 per share.

    On the other hand, African Prudential Registrars dropped by almost a quarter with a loss of 21.56 per cent to close at N2.51. Nascon Allied Industries dropped by 14.21 per cent to close at N6.52. Cadbury Nigeria declined by 14.13 per cent to close at N14.77. Tiger Branded Consumer Goods dropped by 12.07 per cent to close at N2.55 while Honeywell Flour Mills dropped by 11.11 per cent to close at N1.44.

    Total turnover stood at 1.55 billion shares worth N10.45 billion in 14,994 deals last week as against a total of 11.91 billion shares valued at N18.34 billion traded in 19,508 deals. Financial services sector led the activity chart with 1.19 billion shares valued at N7.30 billion in 10,457 deals; representing 76.5 per cent and 70 per cent of total equity turnover volume and value respectively. The consumer goods sector followed with a turnover of 160.33 million shares worth N1.55 billion in 2,167 deals. The conglomerates sector recorded a turnover of 79.55 million shares worth N122.75 million in 527 deals.

    The trio of Zenith Bank International Plc, Guaranty Trust Bank Plc and United Capital Plc were the most active with a joint turnover of 536.25 million shares worth N5.85 billion in 4,735 deals, representing 34.55 per cent and 55.98 per cent of the total equity turnover volume and value respectively.

    Also traded during the week were a total of 118,976 units of Exchange Traded Products (ETPs) valued at N1.267 million executed in 20 deals compared with a total of 294,047 units valued at N3.209 million traded in 42 deals in the previous week.

    In the bond segment, a total of 91,918 units of Federal Government Bonds valued at N100.479 million were traded in seven deals compared to a total of 12,470 units of Federal Government Bonds valued at N14.348 million traded in eight deals in the previous week.

  • Acquisitions drive equities amid sell pressure

    Turnover at the stock market jumped by 971.7 per cent last week as two major acquisition were consummated at the Nigerian Stock Exchange (NSE).

    Turnover rose to 11.91 billion shares valued at N18.34 billion in 19,508 deals, representing 972 per cent and 146.2 per cent increase in turnover volume and value. In the previous week, turnover stood at 1.11 billion shares valued at N7.45 billion in 15,562 deals.

    The turnover last week was driven by major acquisition deals on Wema Bank Plc and Unity Kapital Assurance Plc. A total of 4.16 billion shares of Unity Kapital Assurance Plc were swapped in a cross deal at 77 kobo per share. This represented about 30 per cent equity stake in Unity Kapital Assurance. The transaction on Unity Kapital was a divestment of the major equity stake of Unity Bank Plc, according to a reliable source.

    Also, a total of 6.67 billion shares of Wema Bank Plc were swapped in three deals at 90 kobo per share. The deals were block divestments. A source said the divestments were part of the share sales by Asset Management Corporation of Nigeria (AMCON). The three deals represented 17.3 per cent equity stake in Wema Bank.

    The acquisition deals expectedly placed Wema Bank and Unity Kapital atop the activities’ chart. The trio of Wema Bank Plc, Unity Kapital Assurance Plc and Zenith Bank International Plc accounted for 11.01 billion shares worth N11.27 billion in 2,856 deals, representing 92.4 per cent and 61.5 per cent of the total equity turnover volume and value respectively.

    The financial services sector remained the most active sector with a turnover of 11.69 billion shares valued at N14.73 billion traded in 13,094 deals; representing 98.2 per cent and 80.35 per cent of the total equity turnover volume and value respectively. The conglomerates sector followed with 71.89 million shares worth N175.60 million in 777 deals while the consumer goods sector placed third with a turnover of 69.72 million shares worth N1.18 billion in 3,019 deals.

    Also traded during the week were a total of 294,047 units of Exchange Traded Products (ETPs) valued at N3.209 million executed in 42 deals, compared with a total of 72,054 units valued at N637,635.25 traded in 26 deals two weeks ago.

    In the bonds segment, a total of 12,470 units of Federal Government bonds valued at N14.348 million were traded in eight deals last week.

    The stock market however came under intense sell pressure as investors readjust portfolios ahead of the monetary policy meeting of the Central Bank of Nigeria (CBN). The Monetary Policy Committee (MPC) of the CBN is scheduled to meet between today and Tuesday. Most equities with price changes ended on the negative side. There were 20 gainers against 41 losers last week as against 39 gainers recorded against 22 losers in the previous week.

    The benchmark indices at the NSE showed widespread underlying selling sentiments, in spite of earnings reports by many companies during the week. The All Share Index (ASI)- the value-based index that tracks prices of quoted equities, dropped by 1.13 per cent to close the week at 25,694.79 points as against its week’s opening index of 25,988.40 points.

    Aggregate market value of all quoted equities dropped by N101 billion from the week’s opening value of N8.940 trillion to close at N8.839 trillion. Oando recorded the highest percentage decline during the week, dropping by 25.23 per cent to close at N4. Ecobank Transnational Incorporated dropped by 20.28 per cent to close at N14.35. Access Bank declined by 10.63 to close at N3.95. Honeywell Flour Mills lost 10 per cent to close at N1.62 while Ikeja Hotel dropped by 9.62 per cent to close at N2.35 per share.

    On the positive side, Conoil led the contrarian stocks with a gain of 21.38 per cent to close at N20.10. United Bank for Africa followed with a gain of 9.59 per cent to close at N3.77 while Law Union and Rock Insurance rose by 9.38 per cent to close at 70 kobo per share.

  • 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 sustain modest rally with N48b gain

    Trading at the Nigerian stock market reopened on Monday with sustained positive sentiments, although investors appeared to be more cautious and the spread of the rally appeared to be narrowing down.

    Key benchmark indices at the Nigerian Stock Exchange (NSE) showed modest improvements as investors await the decisions of the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN), which started its two-day meeting on Monday and it is billed to conclude and make its monetary policy statements on today.

    With 25 gainers to 15 losers, aggregate market value of all quoted equities improved by N48 billion from N8.194 trillion to close at N8.242 trillion. The All Share Index (ASI)-a value-based index that tracks prices of all quoted equities, also rallied by 0.58 per cent to close at 23,963.64 points as against its opening index of 23,826.50 points.

    The sustained uptrend helped to reduce the accumulated losses so far this year, reducing the negative average year-to-date return to -16.33 per cent.

    Nestle Nigeria led the gainers with a gain of N17.86 to close at N725.01. Guinness Nigeria followed with a gain of N10.43 to close at N112.28. Seplat Petroleum Development Company rose by N7.83 to close at N164.54. Seven-Up Bottling Company added N3.30 to close at N190 while Flour Mills of Nigeria gathered N1.02 to close at N17.95 per shares.

    Total turnover stood at 215.18 million shares worth N2.10 billion in 3,861 deals. Zeni9th Bank was the most active stock with a turnover of 42.89 million shares worth N521.76 million. United Bank for Africa followed with a turnover of 28.18 million shares worth N85.7 million.

    Analysts at Afrinvest Securities said attractive prices in the market spurred investors’ appetite for value stocks, especially in the oil & gas and banking spaces as bargain hunting drove the indices northwards.

    “The waning market breadth suggests investors are already taking profit but we broadly expect the decision of the Monetary Policy Committee (MPC), scheduled to be released tomorrow to determine trading sentiment. Given the current attractive entry price of some fundamentally strong stocks, long term opportunities still exist in the market although we advise investors with a short holding period to trade cautiously,” Afrinvest Securities stated.

    On the negative side, Nigerian Breweries led the losers with a loss of N5.20 to close at N102.80. Lafarge Africa declined by N1 to close at N81. Berger Paints dropped by 96 kobo to N9.01. Northern Nigerian Flour Mills lost 40 kobo to close at N7.73 while FBN Holdings declined by 23 kobo to close at N4.27 per share.