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Tag: Nigerian equities

  • Investors net N32tr gain at stock market

    Investors net N32tr gain at stock market

    Investors in Nigerian equities closed 2025 with a net capital gain of N32.13 trillion, sustaining the country as one of the world’s five best-performing stock markets.

    The benchmark index for the Nigerian stock market, the All Share Index (ASI) of the Nigerian Exchange (NGX) ended yesterday with a full-year return of 51.19 per cent, equivalent to net capital gain of N32.13 trillion.

    The performance at the Nigerian market more than doubled returns across several advanced and emerging markets, including the United States (U.S.), United Kingdom, Germany, France and China where average indexed returns were below 25 per cent.

    The MSCI All Country World Index- a global index that tracks large-cap stocks across developed and emerging markets, closed the year with average return of about 20 per cent.

    Group Managing Director, Nigerian Exchange Group (NGX Group), Mr. Temi Popoola, said the sustained rally at the stock market underscored investors’ confidence in the country’s macroeconomic outlook.

    He said: “The Nigerian capital market in 2025 demonstrated resilience despite domestic and global economic headwinds.

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    “This performance underscores the importance of policy consistency, purposeful reforms, and strategic collaboration in strengthening investor confidence and sustaining market growth.

    “During the year, efforts to advance economic reforms and improve market structures helped support a stable environment for capital formation, while our continued investment in technology played a critical role in expanding access, enhancing transparency, and improving operational efficiency across the market”.

    The ASI closed the year at 155,613.03 points as against the year’s opening index of 102,926.40 points. Aggregate market value of all quoted equities rose from 2025’s opening value of N62.763 trillion to close the year at N99.376 trillion, representing an increase of 58.34 per cent or N36.61 trillion. The difference between the ASI and aggregate market value was due to additional listings recorded during the year.

    Popoola said the NGX would remain focused on deepening partnerships with regulators, issuers, market operators, policymakers, and the wider financial ecosystem to sustain the bullish momentum.

    “We are optimistic about the opportunities ahead and committed to positioning the Nigerian capital market as a key driver of economic growth and wealth creation, while advancing NGX Group’s vision as Africa’s preferred exchange hub.”

    Chairman, Association of Securities Dealing Houses of Nigeria (ASHON), Mr. Sehinde Adenagbe, said the market performance has strong correlation with the economic reforms of the current government.

    Adenagbe said: “There is no gain saying that since President Tinubu took office in May 2023, Nigeria’s stock market has experienced strong growth and renewed investor interest.

    “The NGX All-Share Index more than doubled, rising by around 136 per cent between 2023 and 2025, with market capitalisation expanding sharply and local and foreign participation strengthening”.

    He added that further digitisation of the economy and the capital market has smoothen the onboarding of the youthful demography of the country, especially through the fintech gateway created by the NGX Group, which has tremendously increased inclusiveness in the market.

    According to him, the market performance reflected improved macroeconomic conditions, liquidity, and investor appetite.

    He said: “We believe that these strong performances signal enhanced market confidence, partly driven by broader economic measures under the administration”.

    He highlighted the enactment of the Investment and Securities Act (ISA) 2025 signed into law by President Tinubu, removal of Nigeria from the Financial Action Task Force (FATF)’s “grey list” and the reforms in the foreign exchange (forex) market as major impetus for the market.

    According to him, the transparency and stability in the forex market have helped to reduce distortions, improving the predictability of pricing for foreign investors and businesses.

    “Stable forex conditions have been widely cited as a contributor to increased foreign capital flows into equities and other financial instruments,” Adenagbe said.

    He, however, called for more supportive policies that encourage new listings, including moribund state-owned-enterprises that can be turned around as well as incentives for long-term institutional investment.

    Adenagbe said: “We also need more structural reforms, coordinated implementation, market infrastructure improvements and inclusive growth measures to sustain momentum and position Nigeria as a competitive driver of national economic growth and development.

    “The issue surrounding the Capital Gains Tax (CGT) should be revisited to give the market clarity. More intentional approaches are needed to stamp out insecurity and acts of terrorism from the country as investors want to put their resources in secured environment.”

    Managing Director, GTI Capital, Mr. Kehinde Hassan, said investors appeared confident about the outlook for the Nigerian economy.

    He noted that the stock market is the closest reflection of a country’s global economic rating as investors are sensitive to risks.

    The double-digit 51.19 per cent return in 2025 marked the sixth consecutive bullish run for the Nigerian market. The ASI had made the top global chart in 2024 with average return of 37.65 per cent, equivalent to net capital gain of N15.4 trillion.

    The ASI had closed 2023 as one of the three best-performing markets globally. Average return for Nigerian equities in 2023 stood at 45.90 per cent, equivalent to net capital gains of N12.81 trillion.

    The market had broken its well-known previous cycle of decline in pre-election year to record its third consecutive positive performance in 2022, with full-year average return of 19.98 per cent, equivalent to net capital gain of N4.455 trillion. It had closed 2021 with average return of 6.07 per cent, equivalent to net capital gains of N1.278 trillion.

    In the throes of the outbreak of COVID-19 pandemic in 2020, it had recorded average return of 50.03 per cent, representing net capital gains of N6.483 trillion.

    ASI closed 2023 at 74,773.77 points as against its opening index of 51,251.06 points for the year. It had opened 2022 at 42,716.44 points.

    Aggregate market value of all quoted equities had also risen from 2023’s opening value of N27.915 trillion to close the year at N40.918 trillion. It had recorded N22.297 trillion as opening value for 2022.

  • Nigerian equities market performed best in Africa in Q1: 2024 –Report

    Nigerian equities market performed best in Africa in Q1: 2024 –Report

    The Nigerian equities market recorded a strong performance in the first six months of 2024 with the All Share Index accelerating up 33.81% H1 2024 (versus 18.96% in H1:23), with resultant N15.68 trillion gains by equity investors, a report by the Cowry Asset Management Group has revealed.

    Mr. Johnson Chukwu, founder/CEO of Cowry Asset Management Group, made this submission while presenting a report of the first half of 2024 at a webinar in Lagos.

    According to the report, “The NGX was the best-performing stock exchange in Africa during H1 ’24. This surpassed other African markets like Casablanca and Johannesburg. The growth significantly outperformed major global indices like the NASDAQ (18.13%) and NYSE (6.96%) in the same period.

    “The gains were buoyed by a confluence of factors, including robust corporate earnings, dividend declarations, government-led market reforms, and a heightened interest from both domestic and foreign investors.”

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    Specifically, the report noted that, “The positive market sentiment witnessed in H1 2024 cut across diverse sectoral indices, with substantial gains witnessed in the Industrial (+73.14% YTD), consumer goods (+41.05% YTD), Oil & Gas (+38.12% YTD), and Insurance (+21.42% YTD) sectors respectively. However, the banking sector with a loss of -7.47% was the lone laggard on the back of recapitalization pronouncements by the Central Bank of Nigeria (CBN).

    The yield environment in H1 2024 strongly favoured money market and bond market instruments given the effective yields of between 18% – 26% on government instruments, which are considered as risk-free.

    “To circumvent the high lending costs occasioned by the current yield environment, we foresee increased corporate issuance of Commercial Papers among small to mid-sized companies in coming months at very attractive yield (circa 30%), giving investors with high-risk appetite better returns.”

    Chukwu, however, advised investors to be more circumspect in their choice of investment instruments particularly Commercial Papers as we believe that some of the issuers may not have the liquidity to redeem these instruments at maturity.

  • Equities continue decline with N49b loss

    Equities continue decline with N49b loss

    Nigerian equities continue on the downward trend yesterday as profit-taking transactions on mid and large cap stocks overshadowed gains by the majority of traded stocks.

    Benchmark indices at the Nigerian Exchange (NGX) indicated average decline of 0.09 per cent, equivalent to net capital depreciation of N49 billion.

    The All Share Index (ASI)-the value-based common index that tracks all share prices at the NGX, dropped from its opening index of 99,304.12 points to close at 99,217.60 points.

    Aggregate market value of all quoted equities also declined from its opening value of N56.175 trillion to close at N56.126 trillion.

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    With 27 gainers to 23 losers, the negative overall market situation was driven by losses in mid and large-cap stocks, especially Dangote Sugar Refinery, Lafarge Africa, Oando, Zenith Bank and Honeywell Flour Mills.

    On the upside, Okomu Oil recorded the highest gain of 10 per cent to close at N291.50 per share. John Holt followed with a gain of 9.79 per cent to close at N3.14. Consolidated Hallmark Holdings increased by 9.43 per cent to close at N1.74 per share. Secure Electronic Technology appreciated by 9.09 per cent to close at 60 kobo while Regency Alliance Insurance rose by 7.14 per cent to close at 45 kobo per share.

    On the negative side, Oando led the losers with a drop of 9.75 per cent to close at N12.50 per share. University Press followed with a loss of 9.09 per cent to close at N2.50. Academy Press lost 8.0 per cent to close at N1.84 per share. Honeywell Flour Mills dipped by 7.94 per cent to close at N3.13 while UPDC lost 7.86 per cent to close at N1.29 per share.

    The momentum of activities also slowed down, with total turnover dropping by 62.86 per cent to 361.573 million shares valued at N6.163 billion in 8,511 deals. Transnational Corporation (Transcorp) topped the activity chart with 47.509 million shares valued at N581.921 million. Guaranty Trust Holding Company (GTCO) followed with 37.853 million shares worth N1.647 billion. Veritas Kapital Assurance traded 34.951 million shares valued at N31.384 million. FBN Holdings (FBNH) traded 27.402 million shares valued at N548.257 million while Access Holdings transacted 26.980 million shares worth N504.365 million.

  • Equities sustain upturn with N295b gain

    Equities sustain upturn with N295b gain

    Nigerian equities continued on the upswing yesterday as investors stepped up bargain-hunting for value stocks.

    Benchmark indices at the Nigerian Exchange (NGX) indicated average return of 0.53 per cent, equivalent to net capital gain of N295 billion.

    With two gainers for every loser, the positive overall market position was driven by widespread buy sentiments across the sectors, especially within the large and mid-cap stocks in the oil and gas and manufacturing sectors.

    The All Share Index (ASI)- the value-based common index that tracks all share prices at the NGX, rose from its opening index of 97,863.34 points to close higher at 98,383.04 points.

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    Aggregate market value of all quoted equities also increased simultaneously from its opening value of   N55.359 trillion to close at N55.654 trillion.

    There were 28 gainers to 14 losers. Dangote Sugar Refinery recorded the highest gain of 10 per cent to close at N42.90. Morison Industries and NASCON followed with a gain of 9.88 per cent each to close at N4.45 and N37.25 respectively. PZ Cussons Nigeria advanced by 9.60 per cent to close at N21.70 while Transnational Corporation (Transcorp) rose by 8.57 per cent to close at N11.40 per share.

    On the negative side, Sovereign Trust Insurance led with a drop of 9.52 per cent to close at 38 kobo per share. Universal Insurance followed with a decline of 8.33 per cent to close at 33 kobo. The Initiates Plc (TIP) dropped by 5.0 per cent to close at N1.71 per share. Lafarge Africa went down by 4.86 per cent to close at N33.30 while Africa Prudential depreciated by 4.32 per cent to close at N6.65, per share.

    The momentum of activities also increased significantly as total turnover rose by 31.6 per cent to 559.609 million shares valued at N6.585 billion in 7,990 deals. Abbey Mortgage Bank led with 277.528 million shares worth N682.718 million. Access Holdings followed with 81.935 million shares valued at N1.393 billion. FBN Holdings (FBNH) traded 31.510 million shares valued at N683.950 million.  United Bank for Africa (UBA) traded 21.981 million shares worth N458.449 million while Zenith Bank recorded 13.831 million shares worth N429.570 million.

  • Equities rebound with N71b gains

    Equities rebound with N71b gains

    After a streak of profit-taking and bearish trading, Nigerian equities opened this week with widespread positive sentiments.

    With more buy orders than sell, the benchmark indices for the market closed with average gain of 0.13 per cent, equivalent to net capital gain of N71 billion.

    The All Share Index (ASI)- the value-based index that tracks all share prices at the Nigerian Exchange (NGX) rose by 125.30 points to close at 99,665.05 points as against its opening index of 99,539.75 points.

    Aggregate  market value of all quoted equities rose by N71 billion to close at N56.367 trillion as against its opening value of N56.296 trillion.

    With 26 gainers to 19 losers, the positive overall market position was driven by demand across the sectors, especially within mod and large-cap stocks such as Guaranty Trust Holding Company (GTCO), Zenith Bank, Unilever Nigeria, Lafarge Africa and Transnational Corporations (Transcorp).

    Japaul Gold & Ventures recorded the highest gain of 9.58 per cent to close at N1.83 per share. GTCO followed with a gain of 9.55 per cent to close at N36.70. FTN Cocoa Processors rose by 8.76 per cent to close at N1.49 per share. Universal Insurance went up by 8.57 per cent to close at 38 kobo while RT Briscoe Nigeria appreciated by 8.47 per cent to close at 64 kobo per share.

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    On the negative  side, The Initiates Plc (TIP) led  by 10 per cent to close at N1.80 per share. Prestige Assurance followed with a decline of 9.84 per cent to close at 55 kobo. Omatek Ventures dropped by 9.52 per cent to close at 74 kobo. Vitafoam Nigeria depreciated by 9.26 per cent to close at N17.15 and Learn Africa declined by 9.09 per cent to close at N3.00, per share.

    The momentum of  activities improved as turnover rose by 18.91 per cent to 306.620 million shares valued at N5.301 billion in 8,298 deals.  GTCO topped the activity chart with 50.158 million shares valued at N1.774 billion. Access Holdings followed with 48.067 million shares worth N815.925 million. United Bank for Africa (UBA) traded 41.747 million shares valued at N956.455 million. Universal Insurance traded 39.714 million shares valued at N14.392 million while Zenith Bank sold 15.166 million shares worth N560.323 million.

    Analysts at United Capital Plc said they expected activities in the fixed income market to continue to stand as a strong demotivator toward equities investments.

    “We expect the status quo to remain same, with bearish sentiments outweighing. From an alternate viewpoint, we expect bargain hunting activities to lurk in the shadows, owing to the tremendous opportunities presented by the recent bearish trend, particularly around the banks,” United Capital stated.

  • Nigerian equities lose N638.5b amid global slump

    Nigerian equities lose N638.5b amid global slump

    Investors in Nigerian equities closed weekend with net loss of N638.5 billion as portfolio realignments continued to favour high-yielding fixed-income securities.

    On the heels of the recent increase in the benchmark interest rate to 24.75 per cent by the Central Bank of Nigeria (CBN), Nigerian equities market has seen three consecutive weeks of negative returns.

    Benchmark indices at the stock market indicated average decline of 1.08 per cent at the weekend, equivalent to net capital depreciation of N638.51 billion for the week.

    The negative performance at the Nigerian market however mirrored a general negative trend at the global stock markets as geopolitical crisis and rising oil prices dampened investors’ appetite.

    In United States, the Dow Jones Industrial Average and S & P 500 Index dropped by 3.0 per cent and two per cent. United Kingdom’s FTSE 100 Index declined by 0.6 per cent. Japan’s Nikkei 225 Index depreciated by 3.4 per cent. The STOXX Europe Index, which broadly tracks the European markets, dropped by 1.4 per cent. However, China’s SSE Index rose by 0.9 per cent.

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    The All Share Index (ASI)- the value-based index that tracks all share prices at the Nigerian Exchange (NGX), closed weekend at 103,437.67 points as against the week’s opening index of 103,437.67 points. Aggregate market value of all listed companies also dropped from the week’s opening value of N59.121 trillion to close at N58.498 trillion.

    With more losers than gainers, the negative overall market position was driven largely by widespread sell sentiment. All sectoral indices, with the exception of the NGX Consumer Goods Index, closed negative. There were 42 losers against 31 gainers during the week, a reversal of 40 gainers and 31 losers recorded in the previous week.

    The NGX Banking Index recorded the highest loss of 6.73 per cent. The NGX 30 Index, which tracks the 30 largest stocks at the NGX, dropped by 1.17 per cent. The NGX Insurance Index lost 0.85 per cent. The NGX Industrial Goods Index dipped by 0.27 per cent. The NGX Oil and Gas Index closed flat while the NGX Consumer Goods played the contrarian with a gain of 0.94 per cent. The two special indices that track pension funds’ investments and Islamic-compliant assets, the NGX Pension Index and NGX Lotus Islamic Index, dropped by 3.68 per cent and 0.55 per cent respectively.

    FBN Holdings led the decliners with a loss of 14.21 per cent to close at N30.50. Sterling Financial Holdings Company followed with a drop of 12.96 per cent to close at N4.70. Julius Berger Nigeria dropped by 11.36 per cent to close at N58.50. CWG declined by 10 per cent to close at N6.75. C & I Leasing lost 9.76 per cent to close at N3.70 while Thomas Wyatt Nigeria dipped by 9.63 per cent to close at N1.97 per share.

    On the positive side, Cutix led the advancers with a gain of 22.69 per cent to close at N3.19 per share. Morison Industries followed with a gain of 20.45 per cent to close at N2.12. May & Baker Nigeria rose by 19.09 per cent to N6.55 per share. Chams Holding rallied by 15.63 per cent to N2.22. Abbey Mortgage Bank added 14.46 per cent to close at N2.77 while Ikeja Hotel appreciated by 13.53 per cent to close at N7.30 per share.

    Meanwhile, the momentum of activities improved with a total turnover of 3.680 billion shares worth N57.892 billion in 40,726 deals, as against a total of 1.804 billion shares valued at N52.040 billion traded in 38,550 deals two weeks ago.

    The financial services sector led the activity chart with 2.881 billion shares valued at N46.201 billion in 21,257 deals; representing 78.29 per cent and 79.81 per cent of the total equity turnover volume and value. The services sector followed with 479.156 million shares worth N2.282 billion in 2,142 deals while the conglomerates sector placed third with a turnover of 123.591 million shares worth N1.651 billion in 2,849 deals.

    The three most active stocks were Abbey Mortgage Bank Plc, Tourist Company of Nigeria Plc and Zenith Bank Plc. They altogether accounted for 2.175 billion shares worth N20.667 billion in 2,594 deals, representing 59.10 per cent and 35.70 per cent to the total equity turnover volume and value.

    Most analysts expected the market to remain soft in the meantime as investors weigh combined implications of high interest rate, banking recapitalisation and foreign exchange (forex).

    “We expect to see more of a choppy trading pattern in the week ahead as cautious trading dominates trading activities. In the short-term, we expect investors’ sentiments to be influenced by developments in the macroeconomic landscape and corporate actions,” Cordros Securities stated at the weekend.

  • Nigerian equities break into new major rally with N2tr gain

    Nigerian equities break into new major rally with N2tr gain

    • Investors scramble for big banks

    Nigerian equities netted about N2.12 trillion at the weekend in a renewed rally that doused the capital flight occasioned by the recent hike in benchmark interest rate.

    The increase of the Monetary Policy rate (MPR), otherwise known as the benchmark interest rate, by 400 basis points to 22.75 per cent by the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) had triggered a selloff at the equities market.

    In the wake of the announcement of the interest rate increase, investors had sought to realign their portfolios in favour of higher risk-free returns at the fixed-income market.

    The equities market however have seen renewed rallies, with more than two out of every three transactions last week closing at higher prices.

    Benchmark indices at the Nigerian Exchange (NGX) showed average return of 3.71 per cent for the week, equivalent to net capital gain of N2.12 trillion.

    The performance of the market was driven by largely by gains in the highly influential banking sector, with the sectoral index closing with above average, double-digit return of 12.84 per cent, the highest by any index.  

    The rally last week pushed the equities’ market average year-to-date return to 40.54 per cent, implying that investors in Nigerian equities have gained about N16.59 trillion in net capital gains so far this year.

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    Nigerian equities are the best performing market globally, according to data tracked from Bloomberg and other global platforms.

    The All Share Index (ASI)- the common value-based index that tracks all share prices at the NGX closed weekend at 105,085.25 points as against the week’s opening index of 101,330.85 points. It had opened the year at 74,773.77 points.

    Aggregate market value of all quoted equities rose simultaneously from the week’s opening value of N57.293 trillion to close weekend at N59.416 trillion. It had opened the year at N40.918 trillion.

    There were 55 gainers to 24 losers during the week compared with 22 gainers and 56 losers recorded in the previous week. Julius Berger recorded the highest gain, in percentage terms, with 30.58 per cent to close at N72.60. Omatek Ventures followed with a gain of 23.08 per cent to close at 80 kobo. MTN Nigeria Communications trailed with a gain of 20.96 per cent to close at N267.80. Guaranty Trust Holding Company, one of the three most active stocks, rose by 17.88 per cent to N48.45 per share.

    On the negative side, International Energy Insurance led the losers with a drop of 27.38 per cent to close at N1.22. SUNU Assurances Nigeria followed with a loss of 19.11 per cent to close at N1.37 while LASACO Assurance declined by 14.53 per cent to close at N2 per share.

    Total turnover stood at 1.773 billion shares worth N52.867 billion in 44,713 deals as against 2.157 billion shares valued at N108.824 billion traded in 51,556 deals two weeks ago.

    The financial services sector led the activity chart with 1.136 billion shares valued at N23.185 billion traded in 19,896 deals; thus contributing 64.04 per cent and 43.86 per cent to the total equity turnover volume and value respectively. The conglomerates sector followed with 339.390 million shares worth N5.874 billion in 3,650 deals while consumer goods sector placed third with a turnover of 82.645 million shares worth N6.724 billion in 6,155 deals.

    The three most active stocks were Transnational Corporation Plc, Guaranty Trust Holding Company Plc and Access Holdings Plc. They accounted for 677.439 million shares worth N17.287 billion in 7,789 deals, contributing 38.21 per cent and 32.70 per cent to the total equity turnover volume and value respectively.

    Most analysts expected the market to remain positive, as investors await dividend announcements of several major stocks.

    Analysts at Afrinvest Securities said they expected the market to “sustain the bullish momentum barring any shock”.

    Analysts at Cordros Securities stated that dividend announcements could spur the market to higher rally.

    “We expect investors to continue to cherry-pick fundamentally sound stocks, given the absence of any significant positive catalysts. However, the awaited earnings releases from the banks and accompanying dividend declarations may catalyse another rush of positive sentiments, supporting buying activities on the bourse,” Cordros Securities stated.

  • Nigerian equities’ return hits N16.9tr on renewed rally

    Nigerian equities’ return hits N16.9tr on renewed rally

    • Investors scramble for big banks

    Investors in Nigerian equities netted about N2.12 trillion at the weekend to push their net returns so far this year to N16.93 trillion.

    Trading reports at the stock market showed that transactions on three of Nigeria’s largest banks accounted for about a quarter of total turnover at the market.This represented a marked shift in preference as trading in large-cap stocks underlined major financial commitments.

    Benchmark indices at the Nigerian Exchange (NGX) at the weekend indicated average return of 3.79 per cent for the week, equivalent to net capital gain of N2.115 trillion.

    With this, average year-to-date return for equities rose to 41.39 per cent, implying that investors have earned N16.93 trillion in net capital gains so far this year. 

    The weekly return for the market represented one of the three best returns globally, sustaining Nigeria’s position as the world’ best-performing equities market so far this year.

    The All Share Index (ASI)- the common value-based index that tracks all share prices at the NGX closed weekend at 105,722.78 points as against the week’s opening index of 101,858.37 points. It had opened the year at 74,773.77 points.

    Aggregate market value of all quoted equities rose simultaneously from the week’s opening value of N55.735 trillion to close weekend at N57.850 trillion. It had opened the year at N40.918 trillion.

    The performance of the Nigerian market was considerably above average in a global market that was dominated by positive sentiments. The MSCI World Index indicated average return of 0.3 per cent for the week. In United States, the S & P 500 Index inched up by 0.1 per cent, to counterbalance a 0.7 per cent decline in tech-heavy NASDAQ Index. United Kingdom’s FTSE ASI rose by 1.6 per cent.

    In Japan, Nikkei 225 Index rallied by 4.4 per cent. Germany’s XEXTRA DAX Index gained 1.1 per cent. Hong Kong’s Hang Seng Index appreciated by 3.8 per cent. France’s CAC 40 Index rose by 1.6 per cent. India’s BSE Sens Index gained 1.2 per cent while South Africa’s FTSE/JSE ASI inched up by 0.2 per cent. However, Russia’s RTS Index dropped by 1.4 per cent.

    The performance of the Nigerian market was boosted by gains recorded in the large-cap sectors of consumer goods and oil and gas. The NGX Consumer Goods Index led the market with a week’s return of 10.96 per cent, followed by the NGX Oil and Gas Index, which rose by 5.25 per cent.

    Most analysts expected the market to remain positive, although there could be intermittent profit-taking.

    Analysts at Afrinvest Securities said they expected “the market to record mild gain supported by improved sentiment and corporate earnings releases”.

    Cordros Securities stated that while market sentiments may be determined by the movement of yields in the fixed income market, corporate earnings and dividends could tickle the bulls.

    “Also, as we move towards the earnings season, further earnings releases and possible dividend declarations may be the catalysts for another spurt of positive sentiment which supports buying activities on the bourse,” Cordros Securities stated.

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    Total turnover at the NGX stood at 1.56 billion shares worth N36.50 billion in 42,546 deals last week as against 2.48 billion shares valued at N47.86 billion traded in 54,982 deals two weeks ago.

    The financial services sector led the activity chart with 1.13 billion shares valued at N18.91 billion in 19,424 deals; thus contributing 72.27 per cent and 51.81 per cent to the total equity turnover volume and value respectively. The conglomerates sector followed with 117.400 million shares worth N1.508 billion in 2,775 deals while the consumer goods sector placed third with a turnover of 98.42 million shares worth N4.01 billion in 6,322 deals.

    The trio of United Bank for Africa Plc, FBN Holdings Plc and Guaranty Trust Holding Company Plc were the most active stocks. They accounted for 389.29 million shares worth N11.757 billion in 5,372 deals, contributing 24.96 per cent and 32.21 per cent to the total equity turnover volume and value respectively.

    There were 35 gainers against 51 losers last week as against 20 gainers and 68 losers recorded in the previous week. Juli led the gainers, in percentage terms, with a gain of 45.54 per cent to close at N1.47 per share. Geregu Power followed with a gain of 33.3 per cent to close at N901 per share. BUA Foods rose by 20.82 per cent to close at N357.50. Royal Exchange added 20 per cent to close at 84 kobo while DAAR Communications rose by 17.39 per cent to close at 81 kobo per share.

    On the negative side, Meyer led the decliners with a drop of 18.96 per cent to close at N5.60. Morison Industries dropped by 18.69 per cent to close at N2.48. DEAP Capital declined by 14.29 per cent to close at 60 kobo. Flour Mills of Nigeria lost 12.25 per cent to close at N35.10 while Unilever Nigeria dipped by 10.81 per cent to close at N16.50 per share.

  • Equities continue decline with N1.07tr loss

    Equities continue decline with N1.07tr loss

    Nigerian equities continued on the negative sentiment yesterday as a scramble for profit-taking by investors pushed the market to a net loss of N1.068 trillion.

    For the second consecutive trading session, most transactions were priced lower with nearly six out of every seven transactions closing negative.

    Benchmark indices indicated average decline of 1.90 per cent, equivalent to net capital depreciation of N1.068 trillion.

    The All Share Index (ASI) – the value-based common index that tracks all share prices at the Nigerian Exchange (NGX), dropped from its opening index of 103,110.15 points to close at 101,154.46 points. Aggregate market value of all quoted equities at the NGX declined from its opening value of N56.426 trillion to close at N55.358 trillion.

    With 57 losers to 11 gainers, the negative overall market situation was due to widespread selling sentiment across the sectors, especially among large-cap stocks such as MTN Communications Nigeria, Conoil, NASCON Allied Industries, Dangote Sugar Refinery and Guaranty Trust Holding Company (GTCO).

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    Lafarge Africa, May & Baker Nigeria, Royal Exchange, Transnational Corporations (Transcorp), UPDC, Zenith Bank and Sterling Financial Holdings Company led the losers with a drop of 10 per cent each to close at N36, N6.21, 72 kobo, N12.96, N1.80, N35.10 and N5.67 respectively. Conoil followed with a decline of 9.98 per cent to close at N101 while Japaul Gold & Ventures depreciated by 9.97 per cent to close at N2.62.

    On the positive side, PZ Cussons Nigeria and Tripple Gee and Company recorded the highest gain of 9.97 per cent each to close at N33.10 and N3.42 respectively. Geregu Power followed with a gain of 9.69 per cent to close at N568. McNichols rose by 9.66 per cent to close at N1.59 while Veritas Kapital Assurance appreciated by 9.09 per cent to close at 60 kobo per share.

    The momentum of activities improved with total turnover rising by 15.44 per cent to 749.128 million shares valued at N22.492 billion in 14,288 deals. Transcorp topped the activity chart with 79.679 million shares valued at N1.062 billion. United Bank for Africa (UBA ) followed with 61.336 million shares worth N1.551 billion. Zenith Bank traded 61.176 million shares valued at N2.257 billion. Guaranty Trust Holding Company (GTCO) traded 47.913 million shares valued at N1.839 billion while Access Holdings sold 43.489 million shares worth N1.044 billion.

  • Nigerian equities lead global markets with N2.7tr bullish start

    Nigerian equities lead global markets with N2.7tr bullish start

    • NGX rises above world’s downtrend

    Nigerian stock market closed the first trading week of the year with a net capital gain of N2.68 trillion in a major contrarian trading pattern to a sluggish start across several global stock markets.

    Benchmark indices for Nigerian equities closed weekend with average year-to-date return of 6.54 per cent, equivalent to net capital gain of N2.68 trillion. This implies that investors earned additional N2.68 trillion in capital gains in first four trading days of the year.

    The performance of the Nigerian equities market, which closed 2023 among the three best-performing markets globally, was against the general downtrend that marked opening tradings across several world’s markets.

    United States’ benchmark indices- the Dow Jones Industrial Average (DJIA) and S & P 500, closed the week with negative returns of -0.4 per cent and -0.2 per cent respectively. United Kingdom’s FTSE 100 Index recorded average return of -0.1 per cent. Japan’s Nikkei 225 Index posted average return of -0.3 per cent. China’s SSE Index dropped by 1.7 per cent.

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    STOXX Europe, which tracks broader European markets, closed with average return of -0.3 per cent. The MSCI EM Index, which tracks emerging markets, declined by 1.9 per cent while the twin MSCI FM Index, which tracks frontier markets, inched up by 0.7 per cent.

    The All Share Index (ASI)- the common value-based index that tracks all share prices at the Nigerian Exchange (NGX) rose from the year’s opening index of 74,773.77 points to close weekend at 75,990.88 points.

    Aggregate market value of all quoted equities rose simultaneously from the year’s opening value of N40.918 trillion to close the week at N43.594 trillion.

    With more than five out of every six transactions closed at premium, the market performance was driven by widespread positive sentiments across the sectors, especially within the financial services, telecommunications, manufacturing, and consumer goods sectors.

    Most analysts expected the rally at the Nigerian market to continue, citing ongoing positioning for the earnings season and expectations on banks’ recapitalisation.

    Analysts at Afrinvest Securities said they anticipated “an extended positive performance” at the market due to “strong investor sentiment”.

    Cordros Capital said the market would remain positive in the meantime with companies expected to begin declaration of their audited results and dividends this month.

    “In the near term, we believe positioning for 2023 full-year earnings releases and accompanying dividends declarations will continue to support buying activities on the local bourse even as institutional investors continue to search for clues on the direction of yields in the fixed-income market,” Cordros Capital stated at the weekend.

    Analysts, however, advised investors to seek trading opportunities in only fundamentally justified stocks as there are still significant macroeconomic headwinds for corporate earnings.

    All sectoral indices closed positive, led by the NGX Insurance Index, which rose by 14.08 per cent. The NGX Banking Index followed with a return of 10.29 per cent. The NGX 30 Index, which tracks the 30 largest stocks at the market, rose by 6.88 per cent. The NGX Consumer Goods Index, NGX Oil and Gas Index and NGX Industrial Goods Index gained 4.40 per cent, 3.0 per cent and 3.58 per cent.

    The NGX Pension Index, which tracks stocks that meet the investment guidelines for pension funds, rose by 9.70 per cent while the NGX Lotus Islamic Index, which measures ethical stocks that meet Islamic finance rules, closed with average gain of 5.31 per cent.

    There were 88 gainers to 17 losers last week compared with 65 gainers and 24 losers recorded in the previous week. Transnational Corporation led the rally, in percentage terms, with a gain of 46.19 per cent to close at N12.66 per share. Ikeja Hotel followed with a gain of 46.17 per cent to close at N8.77. Unity Bank rose by 45.06 per cent to close at N2.35.

    AIICO Insurance and Linkage Assurance rallied by 43.75 per cent each to close at N1.15 each. DAAR Communications chalked up 43.33 per cent to close at N1.29 while DEAP Capital Management & Trust rose by 39.66 per cent to close at 81 kobo per share.

    On the negative side, C & I Leasing led the decliners with a drop of 39.64 per cent to close at N3.38. SCOA Nigeria followed with a loss of 17.68 per cent to close at N1.63. Champion Breweries declined by 11.81 per cent to close at N3.66. Cadbury Nigeria lost 11.05 per cent to close at N16.90. Mecure Industries dropped by 10 per cent to N10.80 per share while Meyer slipped by 9.75 per cent to close at N3.24 per share.

    The momentum of activities also improved considerably with total turnover of 3.32 billion shares worth N41.755 billion traded in 46,994 deals last week, compared with 1.19 billion shares valued at N31.43 billion swapped in 23,969 deals penultimate week.

    The financial services sector remained the most active with a turnover of 2.4 billion shares valued at N26.05 billion in 22,833 deals; thus contributing 72.25 per cent and 62.40 per cent to the total equity turnover volume and value respectively. The conglomerates sector followed with 213.139 million shares worth N2.434 billion in 2,284 deals while the oil and gas sector placed third with a turnover of 163.313 million shares worth N2.054 billion in 3,443 deals.

    Banking stocks were the most active with the trio of Fidelity Bank, FCMB Group and Sterling Financial Holdings Company accounting for 767.964 million shares worth N7.289 billion in 4,589 deals, contributing 23.13 per cent and 17.46 per cent to the total equity turnover volume and value.

    The positive performance set the Nigerian market on the path to its fifth year of consecutive positive returns.

    The stock market closed 2023 as one of the three best-performing markets globally. Average return for Nigerian equities in 2023 stood at 45.90 per cent, equivalent to net capital gains of N12.81 trillion.

    With inflation rate at 28.2 per cent, Nigerian equities were distinctive as the best inflation-hedging asset class in the country. Nigeria ranked among the three world’s best-performing markets with the Nigerian market surpassing a historical record of N40 trillion market capitalisation during the year.

    With four consecutive years of positive return, the stock market has shown resilience amidst macroeconomic economic challenges of foreign exchange (forex) scarcity, naira depreciation and spiraling inflation.

    The market had broken its well-known previous cycle of decline in pre-election year to record its third consecutive positive performance in 2022, with full-year average return of 19.98 per cent, equivalent to net capital gain of N4.455 trillion. It had closed 2021 with average return of 6.07 per cent, equivalent to net capital gains of N1.278 trillion. In the throes of the outbreak of COVID-19 pandemic in 2020, it had recorded average return of 50.03 per cent, representing net capital gains of N6.483 trillion.

    ASI closed 2023 at 74,773.77 points as against its opening index of 51,251.06 points for the year. It had opened 2022 at 42,716.44 points.

    Aggregate market value of all quoted equities had also risen from 2023’s opening value of N27.915 trillion to close the year at N40.918 trillion. It had recorded N22.297 trillion as opening value for 2022.

    Total market value of N40 trillion was all-time high for Nigerian equities, the highest point in the over 63 years history of the stock market.

    The overall performance of the equities market has largely been influenced by what the market described as “post-inauguration rally”, referencing the positive sentiments that have trailed the pro-market reforms of the Tinubu’s administration, since May 2023.

    The NGX had stated that experts’ opinions on the strong performance of the market were that the bullish trend was due to “a combination of factors, including investor sentiment influenced by macroeconomic developments such as the formation and swearing-in of the economic cabinet by President Bola Tinubu”.

    The NGX had also attributed the market performance to the “audacious macroeconomic reforms under the new administration” of Tinubu.

    According to the NGX, market operators were of the view that “the policies of the new administration under President Bola Tinubu” had “led to the rise in the fortunes of investors”.

    Afrinvest Securities had said “economy reform optimism” bolstered the market performance, noting that the “the rally in the market followed the promise of critical reforms by the President Bola Tinubu administration”.

    Chief Executive Officer, Crane Securities Limited, Mike Ezeh said the emergence of Tinubu had further energised the market as market participants have hopes in his ability to rejig the economy and implement economy-friendly policies.

    He urged the new government to continue to implement policies that would provide enabling environment for businesses to thrive, noting that this would help boost foreign direct investments (FDIs) and attract issuers to the capital market.