The Nation Newspaper

Tag: equities

  • ‘Equities’ ll ride above mild corrections’

    ‘Equities’ ll ride above mild corrections’

    A lower-than-expected half year earnings might create a pullback in the bullish swing at the stock market, but improved monetary environment, increased foreign capital inflow and improved fundamentals in the second half could offset mild correction and set equities higher.

    Analysts at Bismarck Rewane’s Financial Derivatives Company (FDC) Limited disclosed this in a report obtained by The Nation. They stated that the continuous rally at the stock market against widespread expectations of a pullback in May appears to have set the market more on an imminent corrective path, but equities could rally back in the second half to close the year on a higher note.

    Average year-to-date return at the Nigerian equity market opened this week at 33.02 per cent.

    According to analysts, there are concerns that imminent earnings reports might instill more volatility and fall below expectations, but sustained foreign capital inflow from low-rate advanced countries that still see relatively high returns in Nigeria and other emerging countries and increased capacity for several manufacturing companies could create potential upside for equities.

    They noted that there were already signs that earnings reports of consumer goods companies might not meet expectations as the brewery companies are showing slowdown in sales and decline in profit due to the high finance charges.

    Analysts pointed out that there has also been weakness in the earnings of agricultural companies due to a sharp decline in commodity prices, especially crude palm oil.

    “Despite this, we expect the operating environment to ease in the second half of the year as the Central Bank loosens its monetary policy stance. The capacity increase initiative embarked on by most of the manufacturing companies will eventually come into play in the second half of the year and beyond. We believe that this is the year that many of the companies will absorb the high interest cost before the storm settles again next year. If that theory holds, then stocks might still have some upside left,” FDC stated.

    Locating emerging markets’ stock market bullish run in the context of global financial markets, analysts noted that foreign investors believe that interest rates are high in Nigeria and its peers compared to the advanced economies, which has seen increased foreign portfolio inflows into these developing economies that have positively affected their respective capital markets.

    Analysts stated that investors appeared to be increasingly tying price to sustainable returns outlook, noting that investors’ desire for not just high but sustainable dividend yields has boosted sectors, which traditionally lag when equity markets are rising.

    According to analysts, the focus on sustainability explains why the correlation between dividend yield and return is appearing stronger. Besides, investors are showing interest in companies that have given them opportunity to increase their holding through bonus issues as some of the biggest gainers so far in May have been companies that offered bonus issues.

  • Investors stake N26b on equities

    •Fola Adeola resigns from Eterna

    Investors showed keener interests in equities last week as the stock market rallied to a new highpoint amidst upsurge in demand for shares of mid-tier banks. The market recorded average weekly gain of 1.20 per cent last week, pushing the year-to-date return at the equities market to 33.02 per cent.

    The uptrend implied total weekly gain of N141 billion with intermittent profit-taking downsides mitigated by subsequent strong rallies.

    Investors staked a total of N25.68 billion on 2.12 billion shares in 31,806 deals, representing modest increase of 6.9 per cent on turnover value of N24.03 billion recorded on 2.29 billion shares in 29,048 deals in the previous week.

    Aggregate market value of all equities closed last week at N11.939 trillion as against its week’s opening value of N11.798 trillion. The All Share Index (ASI), the common value-based index that tracks all equities rallied to highest index point of 37,350.53 points as against its index-on-board of 36,907.81 points.

    All sectoral indices, except the insurance index, recorded substantial gains, underlining the widespread uptrend during the week. The NSE Consumer Goods Index, NSE Banking Index, NSE Oil and Gas Index, NSE-Lotus II, NSE Industrial Goods Index and NSE-ASeM Index increased by 2.51 per cent, 3.20 per cent, 1.45 per cent, 5.09 per cent, 1.76 per cent, and 0.31 per cent respectively. However, NSE Insurance Index declined by 2.83 per cent.

    The financial services sector remained the most active sector with 1.48 billion shares valued at N12.67 billion in 16,807 deals. The banking subsector was the main driver of the market with a turnover of 1.11 billion shares worth N10.44 billion in 11,839 deals.

    Turnover in the banking subsector was largely driven by activities in the shares of Skye Bank Plc, Zenith Bank Plc, Access Bank Plc, United Bank for Africa (UBA) Plc and Fidelity Bank Plc. Trading in the shares of the five banks accounted for 681.026 million shares, representing 32.13 per cent of total turnover volume traded during the week.

    On the over-the-counter (OTC) bond market, turnover stood at 226.05 million units valued at N263.63 billion in 1,352 deals, indicating a marked increase on turnover of 150.653 million units worth N173.49 billion recorded in 1,019 deals in the previous week.

    Meanwhile, Mr. Fola Adeola has resigned as the chairman of the board of directors of Eterna Plc.

    The company in a regulatory filing stated that it has accepted the resignation. It expressed confident that the exit of Adeola from the board will not adversely affect the company’s business. Eterna stated that it would soon make new appointments unto the board. Eterna had been embroiled in the fuel subsidy scam. The company has consistently denied allegations of fraudulent dealings by the government agencies.

     

     

  • Industrial stocks lead equities with 56% returns

    Companies that engage in manufacturing of industrial goods such as cement and paints have generated the highest returns for investors, according to the latest return analysis from the Nigerian Stock Exchange (NSE).

    Investors in industrial goods stocks have earned twice the returns in the banking, oil and gas, insurance and consumer goods sectors and they are leading the market’s average return by some 25 percentage points.

    The NSE Industrial Goods Index opens today with a year-to-date return of 55.85 per cent, the highest return among the several groups being tracked by the NSE. The NSE Industrial Goods Index is the benchmark for four subgroups including building materials, electronic and electrical products, packaging and containers and tools and machinery.

    However, it is dominated by building material stocks, especially cement and paints manufacturing companies.

    The NSE Industrial Goods Index consisted of 10 lead stocks out of the 26 companies listed in the sector. The representative stocks were selected based on their market capitalisation and liquidity. The benchmarked stocks included Ashaka Cement, Lafarge Wapco Cement Nigeria, Dangote Cement, CAP, Cement Company of Northern Nigeria, Berger Paints, Cutix, DN Meyer and Portland Paints & Products Nigeria.

    With some 28 per cent of total market capitalisation, industrial goods stocks contribute substantially to the market turnover. The All Share Index (ASI), the common value-based index that tracks all equities on the NSE, opens with a year-to-date return of 31.44 per cent. Drawing from the bullishness of several industrial goods stocks, most of which are ethical stocks, the NSE-Lotus Islamic Index opens with second highest return of 44.02 per cent. The NSE 30 Index, which tracks the 30 most capitalised stocks, has returned 31.79 per cent so far this year.

    The market generally showed robust returns, with inflation-adjusted returns in double digits. The NSE Consumer Goods Index shows average return of 27.54 points 27.54 points. Banking index shows year-to-date return of 24.46 per cent while insurance index and oil and gas index open today at 23.13 per cent and 22.43 per cent respectively. The benchmark index for the newly reactivated Alternative Securities Market (ASeM) indicates a year-to-date return of 2.58 per cent.

    The year-to-date position of the market was boosted by strong bullish rally recorded last week. The ASI appreciated by 2.49 per cent last week to open today at 36,907.81 points. It had opened the week at 36,010.28 points.

    Aggregate market capita-lisation of all listed equities increased by 2.47 per cent or N285 billion to close at N11.798 trillion as against its week opening’s value of N11.513 trillion. Industrial stocks index outperformed other indices with a weekly gain of 7.93 per cent. The NSE 30 Index appreciated by 2.50 per cent.

    The NSE Consumer Goods, NSE Banking, NSE Oil and Gas, NSE-Lotus II and NSE-ASeM Index recorded gains of 2.75 per cent, 1.48 per cent, 1.0 per cent, 4.18 per cent and 3.33 per cent respectively. However, NSE Insurance Index depreciated last week by 2.05 per cent.

    Total turnover stood at 2.29 billion shares worth of N24.03 billion in 29,048 deals. The financial services sector topped the activity chart with a turnover of 1.76 billion shares valued at N14.80 billion in 16,292 deals. The banking sub-sector was the most active with a turnover of 1.276 billion shares valued at N12.072 billion in 11,622 deals.

    Meanwhile, Crusader (Nigeria) Plc was delisted last week following the conclusion of the merger with Custodian and Allied Insurance Plc. A total of 781.02 million ordinary shares resulting from the merger exercise between Custodian and Allied Insurance Plc and Crusader (Nigeria) Plc were added to the outstanding shares of Custodian and Allied Insurance simultaneously.

     

  • Ghana, Nigeria, Japan lead global equities rally

    African equities have been the most resurgent so far this year as investors in Ghana and Nigeria scooped above-average returns on the back of increased domestic participation and stable foreign inflows.

    Year-to-date analysis of global equities’ returns showed that average return by Nigerian equities was nearly twice that of equities in United States of America (USA) and United Kingdom (UK). The analysis was based on opening data for Friday, May 10 tracked by FSDH Merchant Bank.

    The Ghana Stock Exchange (GSE) All Share Index (GSE ASI), which serves as benchmark for the Ghanaian stock market, indicated the highest return of 53.30 per cent. Japan’s benchmark Nikkei 225 Index recorded average return of 36.52 per cent. Nigerian Stock Exchange (NSE)’s benchmark index, the All Share Index (ASI), opened last Friday with a return of 27.43 per cent.

    The Dow Jones Industrial Average (DJIA) and the S & P 500 Index, which benchmark the USA market, returned 15.10 per cent and 14.06 per cent respectively. The FTSE 100 Index, which mirrors the UK stock market, recorded average return of 11.78 per cent.

    Turnover on the NSE last week stood at 1.69 billion shares worth of N21.39 billion in 28,392 deals. Financial services sector dominated the activities chart with a turnover of 1.31 billion shares valued at N12.17 billion traded in 15,796 deals. Banking subsector accounted for turnover of 917.182 million shares worth N8.53 billion in 11,236 deals.

    The ASI rallied 2.57 per cent to hit a high of 36,010.28 points while aggregate market capita-lisation of all equities rose correspondingly by 2.57 per cent to close at N11.513 trillion.

    Meanwhile, the rights issue of Transnational Corporation of Nigeria (Transcorp) has opened following approval-in-principle by the Quotations Committee of the NSE. Transcorp is issuing about 12.91 billion ordinary shares of 50 kobo each at N1 per share. The right issue is expected to close on May 31, 2013.

     

  • Equities down by N265b

    •Bagco’s shareholders get 50.9m shares in merger deal

    The Nigerian stock market was overshadowed by strong mid-week recession as equities lost N265 billion in spite of a last-day rally. Average return of quoted equities recorded a weekly loss of 2.30 per cent, pushing the year-to-date return to 19.36 per cent.

    Aggregate market value of equities at the Nigerian Stock Exchange (NSE) closed the week at N10.713 trillion as against its week’s opening value of N10.978 trillion. The All Share Index (ASI), the main value-based index that tracks prices of all quoted equities and serves as Nigeria’s country index, dropped by 2.30 per cent to close the week at 33,514.14 points as against its index-on-board of 34,301.37 points.

    Besides insurance sector, most tracked sectors recorded losses but the recession was more pronounced in the banking sector. The NSE 30 Index, which tracks 30 most capitalised stocks, dwindled by 2.35 per cent. The NSE Consumer Goods Index declined by 0.19 per cent. The NSE Banking Index slipped by 5.36 per cent. The NSE Oil and Gas Index lost 1.40 per cent while the NSE Industrial Goods Index dropped by 1.12 per cent. The NSE Insurance Index meanwhile, appreciated by 3.86 per cent, reflecting gains by some leading insurance companies including Wapic Insurance and Mansard Insurance.

    With 59 decliners to 20 advancers, the market was overtly bearish. Access Bank dropped by N1.66 to close at N8.84. United Bank for Africa (UBA) lost N1.52 to close at N6.60. Airline Services and Logistics dropped by 85 kobo to close at N3.90. Eterna declined by 66 kobo to close at N2.85 while AG Leventis lost 54 kobo to close at N1.07.

    Turnover increased to 2.19 billion shares worth of N24.94 billion in 33,100 deals, partly due to the additional trading day in the five-day trading week as against the four-day trading week in the previous week. Turnover stood at 1.60 billion shares valued at N19.09 billion in 26,264 deals two weeks ago.

    Meanwhile, the number of listed companies reduced by one with the delisting of Nigerian Bag Manufacturing Company (Bagco) Plc. The delisting was the final process in the merger with its erstwhile parent company, Flour Mills of Nigeria.

    Subsequently, a total of 50.89 million ordinary shares of Flour Mills of Nigeria were allocated and listed for shareholders of the former Bagco.

    The NSE has also placed Crusader Nigeria on full suspension, in preparation for the impending delisting of the financial services company after it consummated business combination with Custodian and Allied Plc.

    Okomu Oil Palm continued to ride high on its combined cash dividend of N7 and bonus issue of one for one share with a gain of N9 to close at N104. Julius Berger Nigeria rallied N3.39 to close at N54.49. CAP added N2.90 to close at N40 while Ecobank Transnational Incorporated gained 90 kobo to close at N14.90 per share.

     

     

  • Equities post mouth-watering returns

    Equities post mouth-watering returns

    Nigerian equities started and ended the first quarter on a high note. In spite of declining inflation rate and stable foreign exchange, average equity return for the three-month period still leaves investors with something to cheer, writes Taofik Salako.

    Equities glided through the first quarter with mouth-watering returns that dwarfed the celebrated performance of the stock market in the previous year. With three-month returns as high as 231 per cent, the first quarter of 2013 was the most resurgent in recent years. Average return at the Nigerian equity market closed the three-month period ended March 31, 2013 at 19.4 per cent, implying capital gains of about N1.8 trillion within the period.

    The All Share Index (ASI), the common value-based index that tracks all equities quoted on the Nigerian Stock Exchange (NSE), closed the first quarter at 33,536.25 points as against its index-on-board of 28,078.81 points for the year. This represented a three-month return of 19.44 per cent. Besides its primary importance as the benchmark index for the NSE, the ASI doubles as the country index for Nigeria and rightly indicates the competitiveness of Nigerian equity returns.

    Reflecting the value inherent in the ASI movement, aggregate market capitalisation of all equities rose by 19.6 per cent from 2013’s opening value of N8.974 trillion to close the first quarter at N10.733 trillion, indicating increase of N1.76 trillion. The marginal difference between the increase in ASI and market capitalisation was obviously due to last-day supplementary listings, which market dynamics might not have fully adjusted before the close of trading session.

    The performance of the market last quarter stands in sharp contrast to the downtrend that characterised the first quarter of 2012. Equities had posted negative year-to-date return of 0.38 per cent in the first quarter 2012 as declines in share prices of highly capitalised stocks overwhelmed the market. ASI closed first quarter 2012 at 20,652.47 points compared with its opening index of 20,730.63 points. Aggregate market capitalisation of all equities however, closed the first three months of 2012 at N6.550 trillion as against its opening value of N6.533 trillion, indicating the temporary extenuating influence of supplementary listing.

    Building on the momentum that closed 2012, the performance of equities in the past three months sets equities early on the global top returns’ table and reinforces several highly optimistic views that see the market surpassing its heart-warming full-year return in 2012. The Nigerian stock market recorded average full-year return of 35.4 per cent for 2012. This implied accretion of some N2.44 trillion in capital gains to investors in 2012. The ASI closed 2012 at 28,078.81 points as against its opening index of 20,730.63 points for the year. Aggregate market capitalisation of all quoted equities also rose from its opening value of N6.533 trillion to close 2012 at N8.974 trillion, indicating capital gains of N2.441 trillion.

    Both the 2012 full-year return and 2013 first quarter performance further compensated for the pre-2012 streak of losses, especially in 2011. Market value of quoted companies had dwindled by N1.38 trillion in 2011, with the ASI indicating a negative return of 16.31 per cent.

    Besides, equities were obviously the most attractive and best-return asset class in the first quarter. With inflation rate at 9.5 per cent, average return of 19.44 per cent indicates inflation-adjusted return of 9.94 per cent. This places equities above other securities, especially the government bonds and other fixed-income securities. Official data by the Central Bank of Nigeria (CBN) showed that 91-day Nigerian Treasury Bills currently closed the period with a yield of 11 per cent while three-month tenor deposit rate of banks stand at 8.3 per cent. Average inter-bank call rate stood at 10.16 per cent.

    Beyond the average market performance, several sectoral indices showed above average returns. The NSE Insurance Index indicated average return of 30.42 per cent for the insurance sector, although the return was driven mainly by certain highly capitalised and active stocks in the sector. Most insurance stocks were stagnant at nominal value during the first quarter. The NSE Banking Index underlined modest gains by highly capitalised stocks and impressive returns by stocks such as United Bank for Africa (UBA) and Wema Bank with a sectoral return of 21.41 per cent. The NSE Oil and Gas Index closed the first quarter with average return of 29.61 per cent while the NSE 30 Index, which tracks the 30 most capitalised stocks, was slightly above average with a return of 19.97 per cent. Only the NSE Consumer Good Index fell below average with a return of 17.25 per cent.

    While most stocks in the insurance, information and communication technology, packaging, and engineering technology sectors among others remained largely dormant, equities across several sectors made significant above-average returns. The top-20 return table ranged from 230.8 per cent to 41.7 per cent, underlining the impressive capital gains that accrued to investors during the period. Wema Bank topped the return table with a gain of 230.8 per cent as the bank seeks to leverage from regional banking to national banking licence. Wapic Insurance followed with a three-month return of 139.7 per cent while Evans Medical placed third with 101.1 per cent.

    Other stocks on the top-20 return table included Cement Company of Northern Nigeria (CCNN), 97 per cent; Livestock Feeds, 85.4 per cent; Forte Oil, 76.6 per cent; UBA, 75.4 per cent; Okomu Oil Palm, 70.6 per cent; Unity Bank, 68 per cent; Eterna, 65.8 per cent; Sterling Bank, 60.1 per cent; Fidson Healthcare, 59.4 per cent; Julius Berger Nigeria, 53 per cent; NEM Insurance, 52.7 per cent; Custodian and Allied Insurance, 50 per cent; Aiico Insurance, 46.8 per cent; Presco Plc and Sterling Bank, 44.9 per cent each; Mansard Insurance, 42.2 per cent; Transnational Corporation of Nigeria (Transcorp), 41.9 per cent while Diamond Bank ranked 20th with a three-month return of 41.7 per cent.

    However, the positive and significant gains by several stocks belied the stagnation and dwindling fortunes of several other stocks. While price depreciation was relatively low compared with capital appreciation several stocks failed to respond to market dynamics. From the most populous insurance sector to engineering, telecommunications, alternative securities market, construction to agriculture sector, several equities remained stagnated at either their nominal values or opening values for the period. The stock market has been driven to a large extent by less than 50 per cent of quoted equities. This same pattern, though expanding gradually, could also quicken market decline in the event of concentrated losses among top stocks.

    There is also the danger that the first quarter may pose an anti-climax as investors readjust valuations in line with earnings reports, most of which are expected to be released in the second quarter.

    But most analysts agreed that the overall outlook for the year still suggests a robust performance, although market pundits are divided on the extent of returns in the new business year. Across a broad spectrum of the investment management industry, market pundits and advisors appear to agree that the market would post positive return again this year. From FBN Capital to Sterling Capital Markets, GTI Securities, FSDH Securities and Investment One Financial Services (formerly GTB Asset Management Limited) among other leading investment services companies, previews show strong potential for continuation of the upswing. But how far will the market go? The second quarter could be decisive in shaping equities returns.

  • Investors stake N298b on bonds, equities

    Investors stake N298b on bonds, equities

    Investors staked about N298 billion on equities and bonds as the equities market grappled with negative swings. Investors staked N24.63 billion shares on 2.28 billion shares in 28,170 deals last week. On the Over-the-Counter (OTC) bond market, where the Federal Government’s bonds are traded, investors staked N273.31 billion on 219.02 million units through 1,158 deals.

    The overall pricing trend was negative with the two main indices dropping by 2.10 per cent each. The All Share Index (ASI), the value-based index that tracks prices of all equities, slipped to 33,183.20 points while aggregate market capitalization of all listed equities dropped to N10.618 trillion.

    The financial services sector was the most active during the week, accounting for 67.70 per cent of total turnover with 1.54 billion shares valued at N14.42 billion in 15,660 deals. The conglomerates sector followed with 275.094 million shares worth N554.361 billion in 1,530 deals, representing 12.07 per cent of total turnover. The consumer goods sector placed third with a turnover of 138.015 million shares worth N7.719 billion in 4,820 deals.

    Transnational Corporation of Nigeria Plc, FBN Holdings Plc and Zenith Bank Plc were the three most active stocks with the three stocks pooling a turnover of 642.568 million shares worth N8.085 billion in 5,325.

    The retail bond market on the NSE recorded a turnover of 1,887 units of FGN bonds valued at N2.314 million in 20 deals.

    Dangote Cement recorded the highest loss during the week with a drop of N12.01 to close at N147.99.

     

     

  • Equities rebound with N40b gains

    Mid-week rally transformed at the Nigerian stock market to positive as equities broke away from bears territory that had characterised price trend since Monday.

    With nearly two advancers for a decliner, aggregate market capitalisation of all equities recovered by N40 billion in capital gains to close at N10.796 trillion as against its opening value of N10.756 trillion.

    The All Share Index (ASI), the main value-based index that tracks all equities on the Nigerian Stock Exchange (NSE), rallied by 0.37 per cent to close at 33,736.81 points compared with its opening index of 33,613.87 points. The recovery yesterday pushed up the average year-to-date return to 20.15 per cent.

    Investors increased stakes on equities with 19.2 per cent and 51.5 per cent increase in turnover volume and value respectively, overwhelming sale market orders by profit-takers.

    Turnover rose to 563.93 million shares worth N5.99 billion in 5,678 deals. Zenith Bank was the most active stock with a turnover of 96.04 million shares worth N2.02 billion in 372 deals. Transnational Corporation of Nigeria followed with a turnover of 67.64 million shares valued at N117.38 million in 253 deals while Academy Press placed third with a turnover of 54.56 million shares worth N136.39 million in 10 deals.

    Nestle Nigeria topped the gainers’ list with a gain of N2.97 to close at N903.06. Okomu Oil Palm trailed with addition of N2.55 to close at N53.55. PZ Cussons Nigeria added N2.40 to close at N40.40. Nigerian Breweries gained N2.30 to close at N166.30 while Presco gathered N2.21 to close at N24.34 per share.

    On the other hand, UACN Property Development Company (UPDC) led the losers with a drop of N1.12 to close at N14. Zenith Bank lost 39 kobo to close at N21.11. Nigerian Aviation handling Company dropped by 15 kobo to close at N8. RT Briscoe lost 11 kobo to close at N2.22 while Livestock Feeds dropped by 10 kobo to close at N2.40 per share.

    Meanwhile, Chairman, UACN Property Development Company (UPDC), Mr Larry Ettah, has said the Real Estate Investment Trust (REIT) being sponsored by the company represents a major opportunity for investors to diversify their investments and earn stable incomes.

    Speaking yesterday at the presentation of salient facts about the initial public offering of UPDC REIT to the investing public at the NSE, Ettah expressed confidence that investors would buy into the collective investment scheme given the prime underlying assets.

    He said funds raised from the offer would be used to consolidate the company’s activities and unlock more value-generating businesses for the company.

    “We have projects in Abuja, Lagos, and all these are existing assets. Of course, investors know that UPDC is a company that has been around for a long time; so, we are confident that they will subscribe to the offer. Also, it is important to note that this offer presents an opportunity for investors, who are looking to diversify their portfolio from the normal bonds and equities on the NSE; so, we are sure of high level of patronage,” Ettah said.

    Managing Director, UACN Property Development Company (UPDC) Plc, Mr. Hakeem Ogunniran said investors would benefit immensely from the REIT given the fact that its assets are existing assets with high income-generating capacities.

    According to him, what the company has done was to put together its premium assets and then combine them into the trust, which it’s now offering 60 per cent to the public.

    “Our REIT is unique because these assets already exist. You are therefore, investing in a UPDC REIT that has earnings certainty and has little risks in terms of whether or not you earn the required investment on your returns,” Ogunniran said.

  • Investors move funds to bonds as equities slow down

    Investors appeared to be rebalancing their portfolios in favour of bonds as four-day consecutive decline at the equities market dampened investors’ appetite.

    Turnover at the Over-the-Counter (OTC) bond market, where Federal Government’s bonds are traded, improved considerably last week in contrast to the slow down at the equities market.

    Investors staked N204.58 billion on 172.42 million units of bonds in 1,005 deals last week compared with a turnover of 152.116 million units worth N174.11 billion recorded in 912 deals two weeks ago.

    However, turnover at the equities market slipped to N23.18 billion for 4.25 billion shares through 39,391 deals as against N24.69 billion staked on 3.57 billion shares in 39,321 deals in the previous week.

    With investors reevaluating the prospects for mid and high-cap stocks, activities shifted to low-priced stocks. Otherwise known as penny stocks, stocks trading around 100 kobo to 200 kobo range were the most active stocks. Unity Bank Plc, International Energy Insurance Company Plc and Sovereign Trust Insurance Plc were the three most active stocks, accounting for 20.92 per cent of total turnover for the week. Altogether, the three financial services stocks pooled a turnover of 888.79 million shares worth N700.62 million in 2,634 deals. Transnational Corporation of Nigeria (Transcorp) Plc also recorded a turnover of 355.103 million shares valued at N698.511 million in 1,610 deals.

    The financial services sector remained the main driver of activities with 76.53 per cent, 61.87 per cent and 60.51 per cent of total equity volume, value and number of deals during the week. The financial services sector recorded a turnover of 3.25 billion shares valued at N14.34 billion through 23,835 deals. Conglomerates sector staged a distant second position with a total turnover volume of 363.527 million shares worth N964.618 million in 2,053 deals.

    Losses by fast-moving consumer good (FMCGs) companies dragged the overall market to the negative. The All Share Index (ASI), which tracks prices of all equities on the Nigerian Stock Exchange (NSE), depreciated by 55.04 points or 0.17 per cent to close the week at 33,258.45 points. Aggregate market value of all equities also dropped by 0.15 per cent to close at N10.643 trillion.

    Although there were 51 gainers to 42 losers, the preponderance of mid and high-cap manufacturing stocks coloured market negative. Guinness Nigeria topped the losers’ list with a drop of N7.41 to close at N290. Lafarge Wapco Cement Nigeria followed with a loss of N5.20 to close at N69. Total Nigeria dropped by N3.99 to close at N137.01. Forte Oil lost N2.41 to close at N14.26, while Flour Mills of Nigeria was down by N2.26 to close at N77.74 per share.

    On the positive side, Nestle Nigeria led the gainers with a gain of N20.27 to close at N835.234. Okomu Oil Palm added N7.63 to close at N61.63. GlaxoSmithKline Consumer Nigeria rose by N7.49 to close at N55.09. Mobil Oil Nigeria chalked up N5.53 to close at N125.97 while CAP rose by N2.36 to close at N36.10 per share.

     

  • Equities rally to 19.35% as index hits new high

    •NSE signs MoU with Thomson Reuters

    Average year-to-date return at the Nigerian stock market rallied to 19.35 per cent yesterday as several equities jumped to new highest and the main index at the Nigerian Stock Exchange (NSE) set a new highest index level.

    The market opened bullishly with 56 advancers against 18 decliners. The All Share Index (ASI), the common index for all equities on NSE, gained 0.59 per cent to close at 33,511.63 points as against its opening index of 33,313.49 points.

    Aggregate market value of all equities rose correspondingly by N65 billion from N10.659 trillion to N10.722 trillion. The market performance was driven by widespread gains across the high, mid and small capitalisation levels.

    Mobil Oil Nigeria Plc led the advancers with a gain of N5.53 to close at N125.97. PZ Cussons Nigeria followed with a gain of N4.04 to close at N44.48. UAC of Nigeria added N3 to close at N53. Unilever Nigeria rose by N2.57 to close at N52. GlaxoSmithKline Consumer Nigeria chalked up N2.38 to close at N49.98. Total Nigeria gathered N2 to close at N143. Cadbury Nigeria gained N1.94 to close at N40.81. CAP rose by N1.68 to close at N35.42 while MRS Oil and Gas and Presco increased by N1.37 and 94 kobo to close at N28.79 and N27.90 respectively.

    The price rally underlined increased demand for equities as investors repositioned their portfolios ahead of the imminent start of the earnings season.

    Volume and value of activities improved by 8.63 per cent and 33.87 per cent respectively as investors staked N4.35 billion on 683.24 million shares through 7,299 deals.

    Investors appeared to be showing increasing preference for low-priced stocks. Banking stocks remained atop activity chart with a turnover of 363.69 million shares worth N2.42 billion in 3,015 deals. Insurance sector followed with a turnover of 147.93 million shares worth N108.19 million in 499 deals.

    Unity Bank was the most active stock with a turnover of 115.22 million shares worth N115.18 million in 340 deals.

    However, Flour Mills of Nigeria, which posted a disappointing third quarter report, led the losers with a drop of N3.99 to close at N76.01. Lafarge Wapco Cement Nigeria trailed with a loss of N2.20 to close at N72 while Guinness Nigeria lost N1.41 to close at N296.

    Meanwhile, the NSE has signed a Memorandum of Understanding (MoU) with Thomson Reuters to provide investor relations services to its listed companies as part of its value added services.

    With this initiative, investor relations’ solutions from Thomson Reuters will be available to the NSE’s listed companies.

    The NSE stated that Thomson ONEInvestor Relations will help companies manage their investors relations programme workflow, including monitoring market activity, understanding investor behaviour and managing investor outreach.

    Thomson Reuters’ investors relations websites will also ensure companies are delivering a high standard of disclosure, providing investors with quality and professional investment information.

    Managing Director, Africa, Thomson Reuters, Keith Nichols, said his company was delighted to partner with the NSE.

    “Thomson Reuters provides integrated solutions across the investor relations workflow and we look forward to help NSE’s companies comply with the regulatory requirements and effectively communicate with institutional and retail investors,” Nichols said.

    Executive Director, Business Development, Nigerian Stock Exchange (NSE), Mr Haruna Jalo-Waziri, urged listed companies to take advantage of this investor relations package to improve their visibility to the local and international investor community.