The Nation Newspaper

Tag: equities

  • Equities open with N229b gain

    Equities open with N229b gain

    Nigerian equities reopened yesterday with a bullish run as investors jostled to take positions ahead of expected corporate earnings and dividend recommendations. Equities rallied net capital gains of N229 billion on 4,270 deals, pushing the average year-to-date return for Nigerian equities to 13.78 per cent.

    All benchmark indices at the Nigerian Stock Exchange (NSE) trended upward with large-cap stocks leading a market-wide rally. The All Share Index (ASI)-the value-based index that tracks share prices rose by 1.49 per cent to close at 43,513.93 points as against its opening index of 42,876.23 points. Aggregate market value of all quoted equities also appreciated to N15.632 trillion compared with its opening value of N15.403 trillion.

    All sectoral indices closed positive, underlining the widespread positive sentiments that dominated transactions. The NSE Oil & Gas Index rose by 4.8 per cent. The NSE Industrial Goods Index appreciated by 2.2 per cent. The NSE Insurance Index rose by 0.8 per cent. The NSE Banking Index rallied by 0.4 per cent while the NSE Consumer Goods Index inched up by 0.02 per cent.

    There were 32 gainers to 25 losers. Seplat Petroleum Development Company led the gainers with a gain of N59.90 to close at N760. Total Nigeria rose by N11.50 to close at N254. Dangote Cement rallied N10 kobo to close at N275. Presco gained N5.25 to close at N78 while Beta Glass chalked up N3.60 to close at N75.70.

    On the losers’ list, 11, formerly Mobil Oil Nigeria, led with a drop of N2 to close at N175. Guinness Nigeria declined by N1.70 to close at N98. Nigerian Breweries lost N1.10 to close at N129.90. Flour Mills of Nigeria dipped by 55 kobo to close at N33.05 while Zenith Bank lost 45 kobo to close at N31.10 per share.

    Total turnover stood at 252.05 million shares valued at N5.75 billion in 4,270 deals. Guaranty Trust Bank was the most active stock with a turnover of 45.99 million shares valued at N2.25 billion. Access Bank followed with a turnover of 28.67 million shares worth N383.05 million while FBN Holdings placed third with 25.42 million shares worth N292.67 million.

    “Market performance in coming sessions will be a combination of profit taking and bargain hunting as the market anticipates 2017 company results,” FSDH Securities stated.

    “Following improved investor sentiment, we expect performance in subsequent sessions to remain largely positive though we anticipate market movement to be determined by investor reaction to companies’ earnings results,” Afrinvest Securities stated.

  • Equities’ rally gathers momentum with N36b gain

    For the first trading session this week, the number of transactions closed at premium outweighed those closed at discount as investors stepped up bargain-hunting for value stocks at the Nigerian equities market.

    While the two previous trading sessions were driven mainly by gains by highly capitalised stocks against wider underlying depreciation, the positive overall market position yesterday was driven by widespread bargain-hunting across the sectors and stocks’ groups.

    With 24 gainers against 17 losers, benchmark indices at the Nigerian Stock Exchange (NSE) showed a broadly positive performance. Average day-on-day return stood at 0.24 per cent, equivalent to net capital gain of N36 billion. Most sectoral indices also closed positive, underlining the increasing bargain-hunting across the sectors.

    The All Share Index (ASI)-the value-based benchmark index that tracks share prices at the Exchange, increased from its opening index of 42,158.32 points to close at 42,258.78 points. Aggregate market value of all quoted equities also rose from its opening value of N15.129 trillion to close at N15.165 trillion. Average year-to-date return improved to 10.50 per cent.

    All sectoral indices closed positive with the exception of the NSE Consumer Goods Index, which dropped by 0.3 per cent. The NSE Banking Index and NSE Oil & Gas Index posted a gain of 0.7 per cent each. The NSE Insurance Index rose by 0.3 per cent while the NSE Industrial Goods Index inched up by 0.2 per cent.

    “We expect sentiment to remain positive tomorrow (Friday) on bargain hunting ahead of earnings scorecards,” SCM Capital stated.

    Total Nigeria led the gainers with a gain of N10.40 to close at N228. Nestle Nigeria followed with a gain of N8 to close at N1, 378. Flour Mills of Nigeria rose by 45 kobo to close at N33. United Bank for Africa appreciated by 40 kobo to close at N13. FBN Holdings added 35 kobo to close at N11.50. Lafarge Africa and Zenith Bank International rose by 25 kobo each to close at N51.30 and N31.75 respectively while Access Bank and Dangote Flour Mills garnered 20 kobo each to close at N12.90 and N16.50 respectively.

    On the negative side, Nigerian Breweries led the losers with a drop of N1.60 to close at N122.90. Dangote Sugar Refinery followed with a loss of 60 kobo to close at N21.35. CAP declined by 25 kobo to close at N35. Forte Oil lost 20 kobo to close at N44.80. Fidson Healthcare dropped by 15 kobo to close at N4.55 while Caverton Offshore Support Group dipped by 13 kobo to close at N2.52 per share.

    Total turnover stood at 342.1 million shares valued at N3.09 billion in 4,943 deals. Banking stocks dominated the top activities chart. Fidelity Bank was the most active stock with a turnover of 62.89 million shares valued at N189.36 million. Skye Bank followed with 56.32 million shares worth N58.04 million while FBN Holdings recorded a turnover of 26.97 million shares valued at N307.18 million.

    “We expect the market to sustain a positive close to the week as investors seek for bargain opportunities in the market ahead of full year earnings releases,” Afrinvest Securities stated in a post-trading note.

  • Equities in marginal gain as financial stocks rebound

    Nigerian equities traded almost on the balance yesterday at the Nigerian Stock Exchange (NSE) as bargain-hunting in financial services stocks counterbalanced continuing selloff in other sectors to sustain the positive overall market position with a marginal gain of N3 billion.

    With large-cap banking stocks dominating the gainers’ list, benchmark indices closed with a marginal day-on-day average gain of 0.02 per cent, equivalent to net capital gain of N3 billion. This nudged the average year-to-date return to 10.2 per cent.

    The All Share Index (ASI)-the value-based benchmark index that tracks share prices at the NSE, inched up from its opening index of 42,148.40 points to close at 42,158.32 points. Aggregate market value of all quoted equities also improved marginally from its opening value of N15.126 trillion to close at N15.129 trillion.

    With 30 losers against 21 gainers, the positive overall market position was boosted by gains recorded by large-cap banking stocks. The NSE Banking Index rallied by 1.1 per cent while the NSE Insurance Index inched up by 0.7 per cent. Other sectoral indices closed negative. The NSE Oil & Gas Index dropped by 1.2 per cent while the NSE Consumer Goods Index and NSE Industrial Goods Index declined by 0.9 per cent each.

    Guaranty Trust Bank-Nigeria’s second most capitalised quoted company led the gainers with a gain of 75 kobo to close at N48. Nascon Allied Industries and Flour Mills of Nigeria rose by 55 kobo each to close at N20.55 and N32.55 respectively. Zenith Bank appreciated by 45 kobo to close at N31.50. United Bank for Africa added 40 kobo to close at N12.60 while Dangote Flour Mills and FBN Holdings chalked up 30 kobo each to close at N16.30 and N11.15 respectively.

    On the negative side, Nestle Nigeria led the losers with a drop of N10 to close at N1,370. 11, formerly Mobil Oil Nigeria, followed with a drop of N9 to close at N190. Nigerian Breweries lost N3.50 to close at N124.50. Conoil declined by N3.40 to close at N32.10. Julius Berger Nigeria dipped by N1.35 to close at N25.95 while PZ Cussons Nigeria dropped by N1.15 to close at N23 per share.

    Total turnover stood at 570.26 million shares valued at N5.33 billion in 5,794 deals. Custodian Allied topped the activities chart with a turnover of 94.45 million shares valued at N377.82 million. FBN Holdings followed with 61.64 million shares valued at N683.26 million while Fidelity Bank placed third with a turnover of 55.93 million shares worth N169.24 million.

    “Despite the marginal gain today (Wednesday), the improvement in sentiment shows the market is gradually stabilising. Thus, we expect performance in subsequent trading sessions to remain positive,” Afrinvest Securities stated.

  • Dangote Cement rallies equities to N58b gain amidst increased selloff

    Nigeria’s most capitalised quoted company-Dangote Cement Plc yesterday roused the equities market to a modest gain of N58 billion, despite increased selloff across many sectors of the market. Dangote Cement-which accounts for more than one-quarters of the equities market capitalisation rose by N8.70 or 3.46 per cent to close at N260 per share.

    With 37 losers against 18 gainers and the market heading towards another consecutive decline, the gain by Dangote Cement lifted the overall market position by 0.38 per cent, equivalent to net capital gain of N58 billion. Excluding Dangote Cement, the market was down by 0.84 per cent.

    The All Share Index (ASI)-the benchmark value index for quoted equities at the Nigerian Stock Exchange (NSE)- improved marginally from its opening index of 41,987.74 points to close at 42,148.40 points. Aggregate market value of all quoted equities also rose correspondingly from its opening value of N15.068 trillion to close at N15.126 trillion. This nudged the average year-to-date return to 10.21 per cent.

    Sectoral indices underlined the widespread selling sentiment that dominated transactions yesterday, despite the positive overall market position. With the exception of the NSE Industrial Goods Index-where Dangote Cement is listed, all other sectoral indices closed negative. The NSE Oil & Gas Index declined by 1.3 per cent. The NSE Banking Index dropped by 1.0 per cent. The NSE Consumer Goods Index dipped by 0.1 per cent while the NSE Insurance Index slipped by 0.4 per cent. However, the NSE Industrial Goods Index rallied by 1.6 per cent.

    The positive overall market position was also boosted by gains recorded by many other large-cap stocks including Nestle Nigeria, United Bank for Africa (UBA), PZ Cussons Nigeria and Cadbury Nigeria. Nestle Nigeria-NSE’s highest-priced stock led the gainers with a gain of N38.20 to close at N1, 380. PZ Cussons Nigeria rose by N1.15 to close at N24.15. Cadbury Nigeria added 75 kobo to close at N15.85. Red Star Express appreciated by 25 kobo to close at N6. UBA rose by 20 kobo to close at N12.20 while Eterna chalked up 18 kobo to close at M5.85 per share.

    The momentum of activities also improved considerably as turnover volume and value rose by 77.7 per cent and 102.6 per cent. Total turnover stood at 510.28 million shares valued at N4.63 billion in 5,757 deals. FBN Holdings was the most active stock with a turnover of 115.51 million shares valued at N1.25 billion. Japaul Oil & Maritime Services followed with a turnover of 97.26 million shares worth N33.2 million while Diamond Bank placed third with a turnover of 41.39 million shares worth N103.13 million.

    On the downside, Total Nigeria led the losers with a loss of N11.40 to close at N217.60. Conoil followed with a drop of N3.80 to close at N35.50. International Breweries declined by N2.95 to close at N56.05. GlaxoSmithKline Consumer Nigeria lost N1.05 to close at N20.15 while Nascon Allied Industries dropped by N1 to close at N20 per share.

    Most analysts remained optimistic on the outlook for the equities market. Analysts at Afrinvest Securities noted that the new earnings reports might boost performance in the weekas ahead.

    “Nevertheless, our near-term market outlook remains positive as we approach the full-year 2017 earnings season,” Afrinvest Securities stated.

    FSDH Securities noted that the “market outlook remained positive with the possibility of a rebound as investors take advantage of low valuations”.

    “It is likely gains persist in the equities market, as we look to investors taking position ahead of fourth quarter 2017 corporate releases, amidst strengthening macroeconomic fundamentals,” Cordros Capital stated.

     

  • Equities lose N234b in opening trades

    Equities lose N234b in opening trades

    The Nigerian stock market reopened yesterday to a strong selloff as investors continued to readjust their portfolios ahead of release of earnings reports and dividend recommendation of major quoted companies.

    Benchmark indices at the Nigerian Stock Exchange (NSE) showed average day-on-day decline of 1.53 per cent, equivalent to net capital loss of N234 billion. This depressed the average year-to-date return to 9.79 per cent.

    With two losers for every gainer, the negative overall market position was due to widespread selloff across the sectors, especially losses recorded by large-cap stocks such as Dangote Cement, Nestle Nigeria, Nigerian Breweries and Zenith Bank.

    The All Share Index (ASI)-the benchmark value index for Nigerian equities, declined from its opening index of 42,638.83 points to close at 41,987.74 points. Aggregate market value of all quoted equities at the Exchange dropped from its opening value of N15.302 trillion to close at N15.068 trillion.

    Sectoral indices showed a mixed performance. The NSE Consumer Goods Index declined by 1.6 per cent. The NSE Industrial Goods Index trailed with a drop of 1.5 per cent while the NSE Oil and Gas Index closed flat. On the upside, the NSE Insurance Index rose by 0.74 per cent while the NSE Banking Index inched up by 0.01 per cent.

    There were 32 losers to 16 gainers. Nestle Nigeria-NSE’s highest-priced stock, led the downtrend with a drop of N58.20 to close at N1,341.80. Dangote Cement followed with a drop of N8.60 to close at N251.30. Nigerian Breweries dropped by N2.10 to close at N128.90. PZ Cussons Nigeria lost N2 to close at N23. Enamelware declined by N1.15 to close at N22.10 while Zenith Bank dropped by 70 kobo to close at N31.30 per share.

    On the upside, International Breweries led the gainers with a gain of N1.25 to close at N59. Guaranty Trust Bank followed with a gain of N1 to close at N47.50. Cement Company of Northern Nigeria added 35 kobo to close at N18.50. Fidson Healthcare rose by 22 kobo to close at N4.69. AXA Mansard Insurance chalked up 13 kobo to close at N2.78 while May & Baker Nigeria garnered 10 kobo to close at N2.95 per share.

    Total turnover stood at 287.1 million shares valued at N2.3 billion, representing 53.4 per cent and 71.1 per cent decline in volume and value of trading respectively. Skye Bank was the most active stock with a turnover of 57.99 million shares valued at N63.21 million. Diamond Bank followed with a turnover of 40.33 million shares valued at N106.72 million while FCMB Group placed third with a turnover of 35.34 million shares valued at N89.42 million.

    “Although market breadth is still negative, its advancement is an indication of strengthening investor sentiment. Against this backdrop, we expect market to perform positively in subsequent sessions this week,” Afrinvest Securities stated.

    Analysts at Cordros Capital also remained optimistic, noting that despite the selloffs, the theme on the equities market remains positive given encouraging macroeconomic fundamentals.

  • Equities halt 7-day decline with N166b gain

    After seven days of consecutive decline and a net capital loss of N1.05 trillion, Nigerian equities yesterday rebounded as investors sought to take advantage of the decline in share prices to increase their shareholdings. The increased bargain-hunting for most of the stocks that had witnessed considerable price decline stimulated the overall market position, turning the market around to a seller’s market.

    With 25 gainers to 19 losers, benchmark indices at the Nigerian Stock Exchange (NSE) showed average gain of 1.11 per cent, equivalent to net capital gain of N166 billion. The rebound also nudged the average year-to-date return to double digit at 10.27 per cent.

    Aggregate market value of all quoted equities rose from its opening value of N14.968 trillion to close at N15.134 trillion. The All Share Index (ASI)-the benchmark value index for quoted equities, rallied to 42,171.80 points from its opening index of 41,708.15 points.

    The overall market performance was boosted by gains recorded by large-cap stocks in the food and beverages, breweries and banking sectors.

    All sectoral indices closed positive with the exception of the NSE Oil and Gas Index, which dropped marginally by 0.3 per cent. The NSE Banking Index led the rally with above-average gain of 2.7 per cent. The NSE Insurance Index followed with a gain of 1.3 per cent. The NSE Consumer Goods Index appreciated by 1.0 per cent while the NSE Industrial Goods Index inched up by 0.2 per cent.

    “The market gradually recovered from the oversold region with increased buying interests. We expect market activity and sentiments to increase in coming trading sessions as investors take advantage of the low valuation in the market,” FSDH Securities stated.

    Nestle Nigeria- Nigeria’s highest-priced stock led the rally with a gain of N25 kobo to close at N1, 345. Beta Glass followed with a gain of N3.40 to close at N72.10. Zenith Bank rose by N1.50 to close at N31.50. Nigerian Breweries appreciated by N1.20 to close at N129. Flour Mills of Nigeria gathered 90 kobo to close at N32.40. Dangote Flour Mills rose by 75 kobo to close at N15.85 while United Bank for Africa added 70 kobo to close at N11.85 per share.

    The momentum of activities also improved as investors traded 520.74 million shares valued at N4.72 billion in 5,694 deals. Skye Bank was the most active stock with a turnover of 113.2 million shares valued at N121.95 million. FCMB Group followed with 54.11 million shares worth N146.1 million while United Bank for Africa placed third with 41.93 million shares worth N487.57 million.

    On the negative side, Total Nigeria led the losers with a loss of N1 to close at N229. Forte Oil followed with a drop of 80 kobo to close at N45. Okomu Oil Palm dropped by 50 kobo to close at N72. Dangote Cement lost 30 kobo to close at N258.40 while NASCON Allied Industries dropped by 25 kobo to close at N20.75 per share.

    “Following the improvement in investor sentiment, we anticipate positive market performance till the end of the week. We also expect sustained improvement in market activity as investors take position in stocks with attractive valuation,” Afrinvest Securities noted in its post-trading investment note.

     

  • FSDH predicts 27.4% average return for equities in 2018

    Nigerian equities can  generate an average return of 27.43 per cent this year, building on the average gain of 42.3 per cent recorded last year, a report has said.

    In its ‘Economic and Financial Outlook 2018-2022’ report, FSDH Merchant Bank Group stated that the overall macroeconomic performance will continue to improve, strengthening sectoral growths and returns.

    The report, prepared by FSDH Research, the research and investment advisory arm of the wholesale banking group, noted that Real Gross Domestic Product (GDP) could grow by 3.16 per cent and 4.09 per cent in 2018 and 2019 respectively.

    According to the report, the outlook for Nigerian equities remains positive in 2018 as the macroeconomic environment is expected to strengthen further.

    “Thus we forecast a growth of 27.43 per cent in 2018, lower than the growth of 42.30 per cent recorded in 2017. We expect a strong rally in the equity market in the first half of the year 2018. We see investment opportunities in the banking, building materials and consumer goods sectors of the market,” FSDH stated.

    FSDH expects the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) to ease monetary policy as inflation rate declines and exchange rate remains stable, thus stimulating growth in credits to the private sector, rebound in the activities in the corporate bond market, increase in the issuance of commercial paper and a growth in the equity market.

    The Group however, noted that increased attraction of equities and reduction in interest rates may lead to substantial drop in the average yields on fixed income securities in 2018 when compared with the previous year.

    Outlining the benefits of long-term investment strategy in equities market, FSDH, in a related report, advised investors to maintain long-term investment strategy in the equity market as analysis of the historical returns of the equity market shows that investors make good returns if they invest in stocks that have strong fundamentals and maintain a long-term view.

    “An investor who maintains a long-term strategy will earn capital appreciation, cash dividend and/or bonus over the investment horizon. Our analysis of the yearly returns of the equity market as measured by the Nigerian Stock Exchange All-Share Index (ASI) between 2008 and February 07, 2018 shows that the market recorded both losses and gains during the period. Although the equity market depreciated in more years than it appreciated, some stocks recorded returns in excess of 1,000 per cent,” FSDH stated.

    According to the investment banker, an analysis of the total return of an initial investment of N100,000 each in the 10 highest capitalised stocks, excluding Dangote Cement and Seplat Petroleum Development Company, between December 2008 and February 7, 2018 shows that Guaranty Trust Bank (GTBank) recorded the highest return of 1,100 per cent.

    The breakdown of the total return by GTBank shows that capital appreciation, cash dividend and bonus issue contributed 33 per cent, 20 per cent and 47 per cent respectively.

    The investment firm also urged investors to engage their investment manager before they invest in the equity market as the manager will help to create an equity portfolio for the investor based on his investment objectives while the client will also benefit from the experience of the investment manager.

    The wholesale banker however cautioned that the macroeconomic performance might be impacted negatively by any social unrest in some parts of the country, which may affect economic activities and lead to escalating inflation rate as well as external factors that can lead to a significant drop in the crude oil price and possible capital flight out of Nigeria in the event of excessive interest rate increase in the advanced economies.

    FSDH noted that although the political outlook remains stable, electioneering activities may slow down economic activities and exert upward pressure on prices.

  • Equities open withN140b loss as selloff continues

    Nigerian equities lost N140 billion in five hours of trading yesterday at the Nigerian Stock Exchange (NSE), extending the downtrend to its sixth consecutive trading session. With a net capital depreciation of N542 billion in this year’s steepest decline last week, the stock market reopened with a continuation of widespread profit-taking as investors sought to monetise earlier capital gains.

    All benchmark indices at the NSE slumped to their recent lows on the back of a market-wide selloff, with nearly three of every four transactions closed at lower prices. With average day-on-day decline of 0.90 per cent, the average year-to-date return slipped to 11.75 per cent.

    The All Share Index (ASI)-the benchmark value index for Nigerian equities, declined from its opening index of 43,127.92 points to close at 42,737.89 points. Aggregate market value of all quoted equities also dropped from its opening value of N15.477 trillion to close at N15.337 trillion.

    All sectoral indices also closed negative, underlining the market-wide profit-taking that had dominated trading in recent days. The NSE Banking Index slumped by 3.8 per cent. The NSE Insurance Index dropped by 1.1 per cent. The NSE Consumer Goods Index declined by 0.9 per cent. The NSE Industrial Goods Index slipped by 0.4 per cent while the NSE Oil & Gas Index dipped by 0.2 per cent.

    “The on-going sell sentiment may continue till midweek albeit on a milder scale than in the previous trading sessions. Profit taking and bargain-hunting may then likely characterise subsequent trading sessions,” FSDH Securities stated.

    There were 36 losers to 13 gainers. Nigerian Breweries led the losers with a loss of N3.90 to close at N133. Guaranty Trust Bank followed with a loss of N2.40 to close at N45.60. Lafarge Africa dropped by N2 to close at N50. Zenith Bank declined by N1.50 to close at N29.40. Flour Mills of Nigeria depreciated by N1.10 to close at N31.50 while Dangote Sugar Refinery dipped by N1.05 to close at N20.70 per share.

    On the positive side, Dangote Cement led the contrarian stocks with a gain of N5.30 to close at N272. Beta Glass followed with a gain of N3.25 to close at N68.70. PZ Cussons Nigeria rose by N1.40 to close at N25.40. GlaxoSmithKline Consumer Nigeria and International Breweries appreciated by N1 each to close at N21.20 and N60 respectively. UAC of Nigeria added 70 kobo to close at N17.45. Unity Bank rose by 9.0 kobo to close at N1.92 while C & I Leasing and UACN Property Development Company chalked up 5.0 kobo each to close at N1.90 and N3 respectively.

    Total turnover stood at 517.44 million shares valued at N5.19 billion in 5,852 deals. Skye Bank was the most active stock with a turnover of 73.15 million shares worth N79.16 million. FBN Holdings followed with a turnover of 71.34 million shares value at N815.73 million while Jaiz Bank ranked third with a turnover of 40.57 million shares worth N42.39 million.

    “Although the bearish trend from last week was sustained today (Monday), we expect market performance to be boosted by bargain-hunting in subsequent trading sessions,” Afrinvest Securities stated.

  • Nigerian equities lose N542b in steepest decline

    Nigerian equities lost N542 billion in a five-day consecutive negative tradings last week, the longest downtrend so far this year.

    With equities reaching a high of N16 trillion two weeks ago, investors turned round to monetise and lock in capital gains, overwhelming the underlying bargain-hunting that had sustained a strong bullish rally earlier this  year.

    Benchmark indices at the Nigerian Stock Exchange (NSE) indicated average week-on-week decline of 3.39 per cent, equivalent to net capital depreciation of N542 billion. The all-week decline impaired the average year-to-date return at the equities market to 12.77 per cent.

    With nearly three losers for every gainer, aggregate market value of all quoted equities at the Exchange dropped from its week’s opening value of N16.019 trillion to close at N15.477 trillion. The All Share Index (ASI)-the benchmark index for Nigerian equities, dropped from the week’s opening index of 44,639.99 points to close weekend at 43,127.92 points.

    All sectoral indices at the stock market also closed negative, underlying the widespread sell sentiment that drove pricing during the week. However, year-to-date analysis indicated that most portfolios remained positive, with positive returns by the main and sectoral indices.

    The NSE 30 Index-which tracks the 30 most capitalised stocks, recorded above average decline of 3.59 per cent. The NSE Banking Index dropped by 3.41 per cent. The NSE Insurance Index declined by 0.73 per cent. The NSE Consumer Goods Index dipped by 2.60 per cent. The NSE Oil and Gas Index posted a return of -4.61 per cent while the NSE Industrial Goods Index depreciated by 3.52 per cent.

    There were 23 gainers against 64 losers last week compared with 49 gainers and 42 losers recorded in the previous week. A total of 85 equities remained unchanged last week, higher than 81 equities recorded in the previous week.

    Last week’s commencement of implementation of a new pricing rule that removed nominal value stopgap and allowed equities to fall as low as one kobo appeared to impact on share pricing trend. Dormant stocks that had stuck at their nominal value of 50 kobo dominated the top losers’ list. Consolidated Hallmark Insurance recorded the highest fall of 27.1 per cent to close at 35 kobo. Skye Bank followed with a drop of 25.2 per cent to close at N1.07. Unic Diversified Holdings dropped by 21.7 per cent to 36 kobo. Multiverse Mining and Exploration depreciated by 16.7 per cent to 40 kobo. WAPIC Insurance dropped by 14.7 per cent to 64 kobo. Wema Bank fell by 14 per cent to N1.29. FBN Holdings lost 13.4 per cent to close at N12 while Japaul Oil & Maritime Services declined by 12.5 per cent to 42 kobo.

    Total turnover stood at 4.43 billion shares worth N24.24 billion in 29,573 deals as against a total of 3.27 billion shares valued at N28.12 billion traded in 35,761 deals two weeks ago. The financial services sector was the most active sector a turnover of 4.005 billion shares valued at N16.50 billion traded in 19,035 deals; representing 90.5 per cent and 68.1 per cent of the total equity turnover volume and value respectively. The conglomerates sector followed with 167.72 million shares worth N464.66 million in 1,568 deals while consumer goods sector ranked third with a turnover of 137.66 million shares worth N5.33 billion in 4,982 deals.

    Low-priced stocks dominated the top activities chart. The trio of Sterling Bank, Skye Bank and FCMB Group were the most active, accounting for 2.52 billion shares worth N5.28 billion in 3,000 deals, representing 56.95 per cent and 21.77 per cent of the total equity turnover volume and value respectively.

    Also traded during the week were a total of 1.20 million units of Exchange Traded Products (ETPs) valued at N6.95 million in 10 deals, compared with a total of 32,189 units valued at N1.3 million traded in 19 deals penultimate week.

    In the sovereign debt market, a total of 14,779 units of Federal Government Bonds valued at N14.05 million were traded in 18 deals compared with a total of 16,268 units valued at N17.05 million traded in 28 deals. two weeks ago.

    On the upside, Linkage Assurance led the contrarian stocks with a gain of 25 per cent to close at 85 kobo. Caverton Offshore Support Group followed with a gain of 21 per cent to close at N3. Prestige Assurance rose by 16.7 per cent to close at 56 kobo. Unity Bank rallied by 10.24 per cent to N1.83 while Trans-Nationwide Express appreciated by 9.9 per cent to close at 89 kobo per share.

  • Equities slip further with N138b loss

    NIgerian equities declined for the second consecutive trading session yesterday as investors stepped up profit-taking transactions amidst concerns that global equities slowdown may negatively impact the domestic equities market. Most advanced and emerging global markets have witnessed contractions in recent days.

    With nearly three losers for every gainer, the benchmark index at the Nigerian Stock Exchange (NSE) showed average decline of 0.87 per cent yesterday, equivalent to net capital loss of N138 billion. Nigerian equities had lost N135 billion on Monday.

    The sustained decline moderated the average year-to-date return to 14.73 per cent, which also reflected the market-wide decline in returns across sectors.

    Aggregate market value of all quoted equities at the Exchange declined from its opening value of N15.884 trillion to close at N15.746 trillion. The All Share Index (ASI)-the benchmark index that tracks share prices at the stock market, also slipped from its opening index of 44,261.72 points to close at 43,877.30 points.

    All sectoral indices also closed negative with the NSE Banking Index leading the contraction with a loss of 2.1 per cent. The NSE Industrial Goods Index dropped by 1.0 per cent. The NSE Insurance Index declined by 0.5 per cent. The NSE Oil & Gas Index dropped by 0.4 per cent while the NSE Consumer Goods Index slipped by 0.3 per cent.

    11 Plc, formerly Mobil Oil Nigeria led the losers with a loss of N6 to close at N210. Unilever Nigeria followed with a drop of N2.10 to close at N45.35. Flour Mills of Nigeria declined by N1.60 to close at N32.40. Zenith Bank lost N1.45 to close at N31.20. Julius Berger Nigeria dropped by N1.35 to close at N27.30 while Lafarge Africa lost NN1.10 to close at N51.90 per share.

    On the positive side, Dangote Sugar Refinery and Stanbic IBTC Holdings led the gainers with a gain of N1 each to close at N22 and N47 respectively. PZ Cussons Nigeria added 35 kobo to close at N24. Red Star Express gathered 25 kobo to close at N5.75. Eterna rose by 20 kobo to close at N5.88 per share while Fidson Healthcare rose by 19 kobo to close at N4.90.

    Total turnover stood at 717.15 million shares valued at N4.91 billion in 6,720 deals. Lasaco Assurance was the most active stock with 182.76 million shares valued at N59 million. FCMB Group followed with a turnover of 90.49 million shares worth N258.56 million while Skye Bank placed third 80 million shares worth N101.96 million.

    “Following sustained sell offs across global equity markets, we anticipate a further decline in the local bourse in trading sessions ahead. As a result, we envisage possible bargain opportunities for investors ahead of the full year earnings season,” Afrinvest Securities stated.

    Analysts at FSDH Securities noted that the “current decline in prices is expected to be temporary and will present bargain hunting opportunities in stocks with good fundamentals ahead of corporate earnings season”.