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Tag: Nigerian stock market

  • Foreign participation in Nigerian stock market hits five-year high

    Foreign participation in Nigerian stock market hits five-year high

    • FPIs trade N996b in five months

    • Market turnover rises by 52.6%

    Foreign investors accounted for more than a quarter of total transactions at the Nigerian stock market in the first five months of this year, their highest level of participation in five years.

    A five-month data on foreign transactions obtained by The Nation showed that transactions by foreign portfolio investors (FPIs) accounted for about 29.2 per cent of total transactions at the Nigerian Exchange (NGX) by the five-month period ended May 31, 2025.

    The data showed a sustained recovery in foreign participation in the Nigerian market, after foreign interest fell to a low of 9.51 per cent in the first five months of 2023. FPI transactions accounted for 20.37 per cent, 13.37 per cent and 21.26 per cent of total transactions in comparable period of 2024, 2022 and 2021.

    Market analysts use percentage level of participation as a steady index for measuring foreign interest in a stock market, especially in a period of currency devaluation which may moderate interpretation based on actual turnover value.

    In value terms, the data indicated that total transactions by FPIs more than doubled to N996.03 billion in the first five months of 2025 as against N458.29 billion recorded in comparable period of 2024. FPI turnover value had slumped to a low of N99.34 billion in corresponding period of 2023, after pooling N201.29 billion and N198.54 billion in 2022 and 2021 respectively.

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    Growing foreign participation helped the Nigerian market to its highest five-month turnover of N3.41 trillion by May 2025, 52.6 per cent above N2.25 trillion recorded in comparable period of 2024. Total transactions at the NGX had stood at N1.04 trillion, N1.51 trillion and N933.65 billion in comparable period of 2023, 2022 and 2021 respectively.

    Experts attributed the upbeat at the stock market to the increasing attractiveness of the Nigerian market to foreign investors, ongoing economic reforms, resilient earnings by Nigerian companies, exchange rate differential, ongoing banking recapitalisation and the reform in the oil sector.

    President, Chartered Institute of Stockbrokers (CIS), Mr Oluropo Dada attributed increased appetite for Nigerian stock market to a confluence of macroeconomic stability, improved corporate performance, and renewed investor confidence.

    According to him, some of the key drivers include efforts of the Central Bank of Nigeria (CBN) in managing foreign exchange (forex) and strong fundamentals of Nigerian companies.

    He said: “The apex bank has made significant progress in clearing forward backlogs and has adopted tighter monetary policies to stabilise the naira. Also, relative stability in the economy and the fact that shares of many of quoted companies are undervalued relative to their intrinsic values have boosted confidence of foreign portfolio investors (FPIs). There is improved liquidity in the forex market and the naira is relatively stable.

    “Many blue-chip firms—particularly in the banking, telecoms, and consumer goods sectors have posted robust first quarter 2025 earnings with improved margins. This is on the back of forex gains and cost optimisation.  The outstanding performance has strengthened investor appetite for the companies’ stocks. The market has recorded moderate foreign portfolio inflows, which indicates optimism in our market,” Dada said.

    Managing Director, AIICO Capital, Dr Femi Ademola, said Nigerian equities have become very attractive to both foreign and domestic investors.

    “The equities market has become very attractive, mostly due to the devaluation of the currency which make the shares very cheap, especially to foreign investors. The very strong half-year performance reported by corporates especially banks and the corporate actions that followed the announcements have also driven many investors to the equities market. Finally, the lack of volatilities in the bond market makes it unattractive to investors, thus they flock to the equities market,” Ademola, a Chartered Financial Analyst (CFA), said.

    Managing Director, Arthur Steven Asset Management, Mr Olatunde Amolegbe, said the ongoing banking recapitalisation and the reforms in the oil sector have driven more investors to the market.

    “We’ve seen increasing return of foreign portfolio investors, I understand the turnover by FPIs has grown significantly in the last few months. This can be attributed to the weaker naira that makes Nigerian stocks a bargain for FPIs. Secondly, new listings such as Aradel also boosted investors’ appetite for stocks. This can also be seen in the light of the approval of the Exxon Mobil’s acquisition by Seplat by the Federal Government. Thirdly, the banking recapitalisation exercise along with impressive second quarter reports have continued to attract investments towards that sector,” Amolegbe, a former president of Chartered Institute of Stockbrokers (CIS), said.

    Managing Director, HighCap Securities, Mr David Adonri, said the banking sector has contributed substantially to the growing turnover at the stock market.

    “The recapitalisation of banks is orchestrating demand for their shares even in the secondary market. Highly capitalised stocks in the petroleum sector have also been upbeat. Finally, investors have also reacted positively to the big interim dividends declared by banks,” Adonri said.

  • Nigerian stock market opens with N155b gain

    Nigerian stock market opens with N155b gain

    • Rally to continue, say experts

    Nigerian stock market opened the 2025 business year on a strong bullish note with net capital gain of N155 billion in the first trading session of the year.

    With more than seven gainers for every loser, investors maintained positive momentum that saw the market on global top chart with average return of 37.65 per cent in 2024. Net capital gains for investors in the Nigerian market stood at N15.41 trillion in 2024.

    The All Share Index (ASI)- the value-based common index that tracks all share prices at the Nigerian Exchange (NGX), rose from the 2024’s closing index of 102,926.40 points to close the first trading session in the new year at 103,180.14 points, an increase of 0.25 per cent.

    Aggregate market value of all quoted equities at the NGX rose simultaneously from the opening value of N62.763 trillion to close yesterday at N62.918 trillion, an increase of N155 billion.

    Analysts said they expected the market to sustain its positive opening trend in the period ahead, citing investors’ optimism on the new business year.

    Analysts at Cowry Assets Management Limited said with favourable market internals and attractive valuations, Nigerian equities appear well-positioned for further growth in the coming weeks.

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    “Looking ahead, the Nigerian equities market is expected to maintain its upward trajectory as investors continue to position themselves in fundamentally strong stocks with significant growth potential,” Cowry Asset stated.

    Afrinvest West Africa stated that the market would continue on its bullish trend as investors take early positions on expectations of better returns in the new year.

    The overall positive market position yesterday was driven by a market-wide buying appetite with 58 gainers to eight losers.

    Cornerstone Insurance, Cutix, International Energy Insurance, NCR Nigeria, AXA Mansard Insurance, RT Briscoe Nigeria and Royal Exchange recorded the highest price gain of 10 per cent each to close at N3.96, N2.53, N1.87, N5.50, N9.02, N2.75 and N1.10 respectively. Africa Prudential followed with a gain of 9.98 per cent to close at N22.60 while Prestige Assurance rose by 9.92 per cent to close at N1.33 per share.

    On the negative side, Ellah Lakes led the losers with a drop of 4.75 per cent to close at N3.01 per share. NASCON Allied Industries followed with a loss of 4.31 per cent to close at N30. CWG declined by 3.25 per cent to close at N7.45 per share. Fidelity Bank depreciated by 2.86 per cent to close at N17 while International Breweries declined by 0.90 per cent to close at N5.50 per share.

    The momentum of activities also improved significantly with total turnover of to 829.754 million shares valued at N5.667 billion in 11,752 deals, an increase of 89.55 per cent on previous trading session. Royal Exchange topped the activity chart with 290.986 million shares valued at N318.640 million. Chams Holding Company followed with 63.679 million shares worth N130.088 million while AIICO Insurance traded 58.604 million shares valued at N90.765 million.

    The Nigerian market had posted a full-year return of 37.65 per cent in 2024, one of the three highest returns across the global markets.

    The performance of the Nigerian market in 2024 was boosted by substantial increase in foreign portfolio investments (FPIs) and sustained demand from local investors. Foreign capital inflow had risen steadily from a low of about four per cent in mid-2023 to an average of about 16 per cent.

    Average returns at the Nigerian market surpassed return in advanced markets by more than 15 percentage points and more than quadrupled average returns across frontier and emerging markets. Advanced markets of Americas and Europe recorded average return of some 21 per cent while frontier and emerging markets posted average gain of about six per cent and eight per cent respectively.

    The 12-month return of 37.65 per cent implied that investors in Nigerian equities netted capital gains of N15.41 trillion during the year. The stock market performance underlined equities as hedging securities, with inflation rate at 34.60 per cent and benchmark interest rate at 27.50 per cent.

    The All Share Index (ASI)- the value-based common index that tracks all share prices at the Nigerian Exchange (NGX), closed yesterday at 102,926.40 points as against its year’s opening index of 74,773.77 points, an increase of 37.65 per cent or N15.41 trillion.

    Aggregate market value of all quoted equities at the NGX also rose from the year’s opening value of N40.918 trillion to close at N62.763 trillion, an increase of N21.85 trillion or 53.39 per cent.

    The difference between the ASI’s return and market value was due to unadjusted values from additional listings. The ASI is generally regarded as the benchmark return for the stock market. It doubles as Nigeria’s sovereign index in the global markets.

    Group Managing Director, Nigerian Exchange Group (NGX Group) Plc, Mr. Temi Popoola said the Nigerian market has shown resilience and impressive growth trajectory.

    According to him, the Nigerian capital market has proven itself as a hub of resilience and innovation, consistently offering valuable opportunities for investors.

    “The strong performance of our blue-chip companies over the past decade has been a key driver of returns, even amid challenging economic cycles. Inflationary pressures have made equities an attractive hedge, and strategic new listings have significantly boosted market activity,” Popoola said.

    He highlighted the transformative impact of policy reforms noting that macroeconomic shifts, particularly in the oil and gas sectors and currency devaluation, have been transformative.

    “These changes, coupled with the liberalization of exchange rates, have enhanced operational efficiency and contributed to the robust performance of listed companies. As we approach 2025, we remain optimistic that continued reforms and a stable macroeconomic environment will sustain growth, boost liquidity, enhance investor confidence, and deliver long-term value for all market participants,” Popoola said.

    At the closing gong ceremony marking the end of 2024 trading activities, NGX’s Chief Executive Officer, Mr. Jude Chiemeka, represented by the Head of Trading and Products, Mr. Abimbola Babalola, commended key stakeholders, including the stockbroking community represented by the Chartered Institute of Stockbrokers (CIS) and the Association of Securities Dealing Houses of Nigeria (ASHON).

    Said he: “The year 2024 witnessed significant activity in the secondary market, a testament to the efforts of our trading license holders. Complementary macroeconomic fundamentals were instrumental, and we appreciate the impactful policymaking by the CBN and the Federal Ministry of Finance. We also commend the Securities and Exchange Commission for its effective oversight, especially during the smooth banking recapitalization process”.

    CIS President, Mr. Oluropo Dada, and ASHON Chairman, Mr. Sam Onukwue, represented by the 2nd Vice Chairman, Mrs. Ify Rita Ejezie, emphasised the pivotal role of stockbrokers in driving capital market growth. They reiterated their commitment to advocating for policies that enhance market development.

    High-profile listings had energized trading activities on the exchange, providing investors with a broader range of blue-chip stocks. Notable entries include Geregu Power Plc, Transcorp Power Plc, Aradel Holdings, and BUA Foods. These listings have propelled the market capitalization from N12.79 trillion at the end of 2019 to N62.76 trillion as of December 2024, representing a meteoric increase of N49.97 trillion.

    The 2024 performance marked the fifth consecutive year of positive return for the Nigerian market. It 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.

    Managing Director, Arthur Steven Asset Management, Mr. Olatunde Amolegbe, who explained the pricing dynamics at the stock market, had noted that the market performance could only be interpreted that investors were reacting to the positive outlook for the economy.

    “Firstly, the stock market is a forward-pricing market, meaning that it tends to adjust for consequences of policy ahead of their impact being felt on the ground. So, while the populace is feeling the immediate negative impact of various policies, the market is betting that the end result of those same policies will be positive for the economy in the medium to long run, which is why we are seeing the bullish sentiments we have witnessed so far. We must also recognise that the market has the capacity to correct sharply if this does not turn out to be the case.

    “Secondly, we must also recognise that increasing inflation rate and the impending banking recapitalisation programme are empirically positive in terms of accretion to the stock market even if the main street may perceive them as negative in the meantime,” Amolegbe, a former president of Chartered Institute of Stockbrokers (CIS) said.

    More than a double in foreign transactions and sustained upbeat by domestic investors had pushed total transactions at the Nigerian stock market to its highest level by the third quarter 2024.

    Official trading report reviewed showed that total transactions at the stock market had risen to N3.97 trillion in the first nine months of this year, the highest third quarter turnover according to available official records of the market.

    The 2024 performance represented a new record against the market’s turnover in third quarter 2023, when the market had set a high of N2.71 trillion. The closest records were in 2018 and 2014 when the market recorded N2.01 trillion and N2.04 trillion respectively.

    The latest report also showed almost a double in the participation of foreign portfolio investors (FPIs) in the Nigerian market, a situation that analysts attributed to the attractiveness of the Nigerian stocks and the relative liquidity occasioned by foreign exchange (forex) reforms.

    The proportion of participation by FPIs increased from 9.51 per cent in third quarter 2023 to 17.56 per cent in third quarter 2024, the highest in the past three years.

    Total foreign transactions at the NGX grew by 170.1 per cent from N258.02 billion in third quarter 2023 to N696.88 billion in third quarter 2024, the highest in six years.

    While forex differential contributed to FPIs turnover, domestic investors have also shown sustained strong appetite for quoted equities with a turnover of N3.27 trillion in third quarter 2024, higher than total transactions in previous years of the market. Total domestic transactions had stood at N2.45 trillion in third quarter 2023.

    However, the increasing participation of foreign investors has reduced the proportion of domestic investors participation from 90.49 per cent in third quarter 2023 to 82.44 per cent in third quarter 2024.

    Experts attributed the upbeat at the stock market to the increasing attractiveness of the Nigerian market to foreign investors, ongoing economic reforms, resilient earnings by Nigerian companies, exchange rate differential, ongoing banking recapitalisation and the reform in the oil sector.

    Managing Director, AIICO Capital, Dr Femi Ademola, said Nigerian equities have become very attractive to both foreign and domestic investors.

    “The equities market has become very attractive, mostly due to the devaluation of the currency which make the shares very cheap, especially to foreign investors. The very strong half-year performance reported by corporates especially banks and the corporate actions that followed the announcements have also driven many investors to the equities market. Finally, the lack of volatilities in the bond market makes it unattractive to investors, thus they flock to the equities market,” Ademola, a Chartered Financial Analyst (CFA), said.

     “We’ve seen increasing return of foreign portfolio investors, I understand the turnover by FPIs has grown significantly in the last few months. This can be attributed to the weaker naira that makes Nigerian stocks a bargain for FPIs. Secondly, new listings such as Aradel also boosted investors’ appetite for stocks. This can also be seen in the light of the approval of the Exxon Mobil’s acquisition by Seplat by the Federal Government. Thirdly, the banking recapitalisation exercise along with impressive second quarter reports have continued to attract investments towards that sector,” Amolegbe said.

  • Nigerian stock market makes global chart with 37.65% return

    Nigerian stock market makes global chart with 37.65% return

    • Investors net N15.4tr gain

    Nigerian stock market closed yesterday with a full-year return of 37.65 per cent, one of the three highest returns across the global markets.

    The performance of the Nigerian market in 2024 was boosted by substantial increase in foreign portfolio investments (FPIs) and sustained demand from local investors. Foreign capital inflow had risen steadily from a low of about four per cent in mid-2023 to an average of about 16 per cent.

    Average returns at the Nigerian market surpassed return in advanced markets by more than 15 percentage points and more than quadrupled average returns across frontier and emerging markets. Advanced markets of Americas and Europe recorded average return of some 21 per cent while frontier and emerging markets posted average gain of about six per cent and eight per cent respectively.

    The 12-month return of 37.65 per cent implied that investors in Nigerian equities netted capital gains of N15.41 trillion during the year. The stock market performance underlined equities as hedging securities, with inflation rate at 34.60 per cent and benchmark interest rate at 27.50 per cent.

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    The All Share Index (ASI)- the value-based common index that tracks all share prices at the Nigerian Exchange (NGX), closed yesterday at 102,926.40 points as against its year’s opening index of 74,773.77 points, an increase of 37.65 per cent or N15.41 trillion.

    Aggregate market value of all quoted equities at the NGX also rose from the year’s opening value of N40.918 trillion to close at N62.763 trillion, an increase of N21.85 trillion or 53.39 per cent.

    The difference between the ASI’s return and market value was due to unadjusted values from additional listings. The ASI is generally regarded as the benchmark return for the stock market. It doubles as Nigeria’s sovereign index in the global markets.

    Group Managing Director, Nigerian Exchange Group (NGX Group) Plc, Mr. Temi Popoola said the Nigerian market has shown resilience and impressive growth trajectory.

    According to him, the Nigerian capital market has proven itself as a hub of resilience and innovation, consistently offering valuable opportunities for investors.

    “The strong performance of our blue-chip companies over the past decade has been a key driver of returns, even amid challenging economic cycles. Inflationary pressures have made equities an attractive hedge, and strategic new listings have significantly boosted market activity,” Popoola said.

    He highlighted the transformative impact of policy reforms noting that macroeconomic shifts, particularly in the oil and gas sectors and currency devaluation, have been transformative.

    “These changes, coupled with the liberalization of exchange rates, have enhanced operational efficiency and contributed to the robust performance of listed companies. As we approach 2025, we remain optimistic that continued reforms and a stable macroeconomic environment will sustain growth, boost liquidity, enhance investor confidence, and deliver long-term value for all market participants,” Popoola said.

    At the closing gong ceremony marking the end of 2024 trading activities, NGX’s Chief Executive Officer, Mr. Jude Chiemeka, represented by the Head of Trading and Products, Mr. Abimbola Babalola, commended key stakeholders, including the stockbroking community represented by the Chartered Institute of Stockbrokers (CIS) and the Association of Securities Dealing Houses of Nigeria (ASHON).

    Said he: “The year 2024 witnessed significant activity in the secondary market, a testament to the efforts of our trading license holders. Complementary macroeconomic fundamentals were instrumental, and we appreciate the impactful policymaking by the CBN and the Federal Ministry of Finance. We also commend the Securities and Exchange Commission for its effective oversight, especially during the smooth banking recapitalization process”.

    CIS President, Mr. Oluropo Dada, and ASHON Chairman, Mr. Sam Onukwue, represented by the 2nd Vice Chairman, Mrs. Ify Rita Ejezie, emphasised the pivotal role of stockbrokers in driving capital market growth. They reiterated their commitment to advocating for policies that enhance market development.

    High-profile listings had energized trading activities on the exchange, providing investors with a broader range of blue-chip stocks. Notable entries include Geregu Power Plc, Transcorp Power Plc, Aradel Holdings, and BUA Foods. These listings have propelled the market capitalization from N12.79 trillion at the end of 2019 to N62.76 trillion as of December 2024, representing a meteoric increase of N49.97 trillion.

    The 2024 performance marked the fifth consecutive year of positive return for the Nigerian market. It 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.

    Managing Director, Arthur Steven Asset Management, Mr. Olatunde Amolegbe, who explained the pricing dynamics at the stock market, had noted that the market performance could only be interpreted that investors were reacting to the positive outlook for the economy.

    “Firstly, the stock market is a forward-pricing market, meaning that it tends to adjust for consequences of policy ahead of their impact being felt on the ground. So, while the populace is feeling the immediate negative impact of various policies, the market is betting that the end result of those same policies will be positive for the economy in the medium to long run, which is why we are seeing the bullish sentiments we have witnessed so far. We must also recognise that the market has the capacity to correct sharply if this does not turn out to be the case.

    “Secondly, we must also recognise that increasing inflation rate and the impending banking recapitalisation programme are empirically positive in terms of accretion to the stock market even if the main street may perceive them as negative in the meantime,” Amolegbe, a former president of Chartered Institute of Stockbrokers (CIS) said.

    More than a double in foreign transactions and sustained upbeat by domestic investors had pushed total transactions at the Nigerian stock market to its highest level by the third quarter 2024.

    Official trading report reviewed showed that total transactions at the stock market had risen to N3.97 trillion in the first nine months of this year, the highest third quarter turnover according to available official records of the market.

    The 2024 performance represented a new record against the market’s turnover in third quarter 2023, when the market had set a high of N2.71 trillion. The closest records were in 2018 and 2014 when the market recorded N2.01 trillion and N2.04 trillion respectively.

    The latest report also showed almost a double in the participation of foreign portfolio investors (FPIs) in the Nigerian market, a situation that analysts attributed to the attractiveness of the Nigerian stocks and the relative liquidity occasioned by foreign exchange (forex) reforms.

    The proportion of participation by FPIs increased from 9.51 per cent in third quarter 2023 to 17.56 per cent in third quarter 2024, the highest in the past three years.

    Total foreign transactions at the NGX grew by 170.1 per cent from N258.02 billion in third quarter 2023 to N696.88 billion in third quarter 2024, the highest in six years.

    While forex differential contributed to FPIs turnover, domestic investors have also shown sustained strong appetite for quoted equities with a turnover of N3.27 trillion in third quarter 2024, higher than total transactions in previous years of the market. Total domestic transactions had stood at N2.45 trillion in third quarter 2023.

    However, the increasing participation of foreign investors has reduced the proportion of domestic investors participation from 90.49 per cent in third quarter 2023 to 82.44 per cent in third quarter 2024.

    Experts attributed the upbeat at the stock market to the increasing attractiveness of the Nigerian market to foreign investors, ongoing economic reforms, resilient earnings by Nigerian companies, exchange rate differential, ongoing banking recapitalisation and the reform in the oil sector.

    Managing Director, AIICO Capital, Dr Femi Ademola, said Nigerian equities have become very attractive to both foreign and domestic investors.

    “The equities market has become very attractive, mostly due to the devaluation of the currency which make the shares very cheap, especially to foreign investors. The very strong half-year performance reported by corporates especially banks and the corporate actions that followed the announcements have also driven many investors to the equities market. Finally, the lack of volatilities in the bond market makes it unattractive to investors, thus they flock to the equities market,” Ademola, a Chartered Financial Analyst (CFA), said.

     “We’ve seen increasing return of foreign portfolio investors, I understand the turnover by FPIs has grown significantly in the last few months. This can be attributed to the weaker naira that makes Nigerian stocks a bargain for FPIs. Secondly, new listings such as Aradel also boosted investors’ appetite for stocks. This can also be seen in the light of the approval of the Exxon Mobil’s acquisition by Seplat by the Federal Government. Thirdly, the banking recapitalisation exercise along with impressive second quarter reports have continued to attract investments towards that sector,” Amolegbe said.

  • Equities sustain rally as investors adjust portfolios

    Equities sustain rally as investors adjust portfolios

    More than two out of every three transactions at the Nigerian stock market yesterday closed on premium as investors continued to rebalance their portfolios for the end of the first half.

    Benchmark indices at the equities market showed continuing positive pricing trend, with average gain of 0.01 per cent yesterday, equivalent to a modest net capital gain of N7 billion.

    The All Share Index (ASI)- the value-based common index that tracks all share prices at the Nigerian Exchange (NGX) rose from its opening index of 99,385.27 points to close at 99,396.23 points. Aggregate market value of all quoted equities also inched up from its opening value of N56.221 trillion to close at N56.228 trillion.

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    With 33 gainers to 16 losers, the positive overall market position was driven by widespread buy sentiments, especially within large-cap stocks such as Seplat Energy, Flour Mills of Nigeria, UACN of Nigeria (UACN) and United Bank of Africa (UBA).

    Cutix and Seplat Energy recorded the highest gain of 10 per cent each to close at N4.40 and N3,794.90 respectively. LASACO Assurance followed with a gain of 9.95 per cent to close at N2.32 per share. CWG rose by 9.85 per cent to close at N7.25 while United Capital appreciated by 9.79 per cent to close at N24.10, per share.

    On the negative side, DAAR Communication led the losers with a drop of 8.93 per cent to close at 51 kobo per share. C & I Leasing followed with a decline of 8.54 per cent to close at N3. Consolidated Hallmark Holdings declined by 7.98 per cent to close at N1.73 per share. MTN Nigeria Communications (MTNN) dropped by 6.89 per cent to close at N200 while Regency Alliance Insurance declined by 6.52 per cent to close at 43 kobo per share.

    The momentum of activities increased by 91.56 per cent to 529.369 million shares valued at N10.493 billion in 7,616 deals. Guaranty Trust Holding Company (GTCO) topped the activity chart with 66.050 million shares valued at N2.93 billion. UACN followed with 46.351 million shares worth N706.587 million. Access Holdings traded 39.707 million shares valued at N754.175 million. Consolidated Hallmark Holdings traded 31.602 million shares valued at N54.861 million while Universal Insurance sold 30.756 million shares worth N10.531 million.

  • Stock market transactions dip by 41% to N937.8b

    Transactions at the Nigerian stock market have dropped by 41.3 per cent to N937.8 billion in the past six months as investors rued macroeconomic uncertainties amid political risks and increased insecurity.

    Official reports by the Nigerian Stock Exchange (NSE) tracked by The Nation at the weekend showed that total transactions at the equities market stood at N937.79 billion during the past six months, a decline of 41.3 per cent or N659 billion from N1.597 trillion recorded in the corresponding period of 2018. The performance in first half 2019 however represented a marginal increase of 0.27 per cent or N2.53 billion on N935.26 billion recorded in first half of 2017.

    The reports showed the market appeared to follow the political trend with headline performances during the key political months. Transactions built up in February, which was earlier scheduled for the general elections and slowed down in the next month following the postponement of the general elections and rescheduling to March.

    Activities also improved in April following the conduct of the general elections and rose further in May as investors looked toward the inauguration of the new government. With delay in key government decisions and appointments, turnover dropped to its third lowest level this year in June.

    Most analysts agreed that the stock market performance was weakened by macroeconomic uncertainties due to the emerging political situation.

    Managing Director, Network Capital, Mr Oluropo Dada, said political risk was a major factor during the first half as investors were nervous and uncertain about the outcomes of the elections.

    According to him, investors took flight to money market instruments to stave away risks despite the underlying attractions of grossly undervalued shares.

    “Early determination of the presidential election result at the tribunal and appointment of ministers will further create legitimacy for the government and give clearer direction to foreign investors who are major drivers of the market,” Dada said.

    Managing Director, APT Securities and Funds Limited, Mallam Kasimu Garba Kurfi said early release of the ministers’ list could clear the macroeconomic uncertainties about who will lead the economic agenda of the government.

    Total transactions stood at N122.08 billion in January 2019, rose to N188.08 billion in February 2019, dropped to its lowest turnover of N110.11 billion in March 2019, picked up to N148.91 billion in April 2019, rose further to its highest performance of N221.13 billion in May 2019 and declined to N147.48 billion in June 2019.

    The low appetite for Nigerian equities had also led to significant depreciation in share prices at the stock market.

    The Nation had earlier reported that investors in Nigerian equities suffered average depreciation of 4.66 per cent in their portfolios during the first half of this year, equivalent to net loss of N546.2 billion during the six-month period.

    Benchmark index for the Nigerian equities market had shown that Nigerian equities traded mostly on the negative during the period, declining in four out of the six months. The market also closed both the first and second quarters on the downside.

    The All Share Index (ASI) – the main value-based index that tracks share prices at the Nigerian Stock Exchange (NSE), closed June 2019 at 29,966.87 points, indicating average decline of 3.55 per cent, 3.46 per cent and 4.66 per cent for the month of June, the second quarter and half-year period respectively.

    The ASI had opened 2019 at 31,430.50 points, 17.81 per cent down from its 2018’s opening index of 38,243.19 points. It had however rallied a world-leading gain of 42.30 per cent in 2017.

  • MTN yet to submit application for listing, says SEC

    Nigeria’s apex capital market regulator, Securities and Exchange Commission (SEC) has said that MTN Nigeria has not filed any application that could kick-start regulatory consideration of the proposed listing of the telco on the Nigerian stock market.

    SEC stated that while there had been some engagements with the telco, MTN Nigeria or its professional parties have not filed any formal application with the apex capital market regulator.

    MTN recently indicated it plans to list its shares by way of introduction, rather than the initial plan of an Initial Public Offering (IPO).

    By way of introduction, MTN Nigeria’s existing shares will be admitted to the Daily Official List of the Exchange for trading. MTN indicated it plans to list before the end of this first half.

    READ ALSO: MTN Nigeria to list on Stock Exchange

    Under the extant rules, a private limited liability company seeking to list its shares shall convert to public limited liability company and register its shares with SEC.

    For listing by way of introduction, the company will then apply to the relevant Exchange for listing.

    In the case of IPO, the company will apply to SEC for approval of the IPO and the relevant Exchange if it intends to list after the IPO.

    Briefing newsmen after the meeting of the Capital Market Committee (CMC) in Lagos, Acting Director General, Securities and Investment Services, Securities and Exchange Commission (SEC), Ms Mary Uduk, noted that there is an established due process for listing and issuance of securities in the Nigerian capital market, which forms the basis for regulatory consideration.

    “There is no formal application as at now, until when they file application, that’s when we will know what method of listing they want,” Uduk said.

    MTN Nigeria had in 2016 appointed an advisory team and set out a road map towards listing on the Nigerian Stock Exchange (NSE) in 2017.

    The telco however missed the 2017 target and has since been struggling with the listing.

    The board of MTN Nigeria had announced the appointment of Stanbic IBTC Capital Limited and its affiliates, Standard Bank of South Africa Limited and Standard Advisory London Limited and Citigroup Global Markets Limited as the joint transaction advisors and joint global coordinators for the proposed listing of MTN Nigeria on the NSE.

    It should be recalled that as part of the conditions to settle its $3.4 billion fine by the Nigerian Communications Commission (NCC), MTN Nigeria had announced its intention to list its shares on the NSE as soon as commercially and legally possible.

  • Equities lose N156b as selloff worsens

    The profit-taking trend at the Nigerian stock market entered the fourth consecutive trading session yesterday as increased open order for sale shaved off N156 billion from the market value of quoted equities.

    The All Share Index (ASI)- the benchmark index at the Nigerian Stock Exchange (NSE), declined by 0.99 per cent from its opening index of 43,963.40 points to close at 43,529.06 points. Aggregate market value of all quoted equities dropped from its opening value of N15.760 trillion to close at N15.604 trillion, representing a net loss of N156 billion. Average year-to-date return slipped to 13.82 per cent.

    Investors meanwhile appeared to be intensifying bargain-hunting for several value stocks, narrowing down the gap between the gainers and losers. Dangote Sugar Refinery, United Bank for Africa (UBA) and African Prudential recorded the highest gains, in percentage terms. Dangote Sugar Refinery recorded the highest gain of 10.16 per cent to close at N22.01. African Prudential followed with a gain of 4.24 per cent to close at N4.43 while UBA recorded the third highest gain of 4.08 per cent to close at N12.49 per share.

    With 21 gainers and 30 losers, the gap narrowed down between bargain-hunting and profit-taking. The NSE Industrial Goods Index dropped by 2.0 per cent while the NSE Banking Index declined by 0.4 per cent. On the upside, the NSE Consumer Goods Index rose by 0.7 per cent. The NSE Oil & Gas Index appreciated by 0.3 per cent while the NSE Insurance Index closed flat.

    GlaxoSmithKline Consumer Nigeria led the losers with a loss of 9.67 per cent to close at N18.88. Caverton Offshore Support Group followed with a drop of 9.41 per cent to close at N2.31. Diamond Bank declined by 9.25 per cent to close at N2.65. Skye Bank dropped by 9.22 per cent to close at N1.28 while Unity Bank declined by 9.09 per cent to close at N1.20 per share.

    Total turnover stood at 500.85 million shares valued at N6.63 billion in 6,002 deals. The three most active stocks were Transnational Corporation of Nigeria, with 66.40 million shares; Fidelity Bank, 64.69 million shares and Zenith Bank, with a turnover of 54.86 million shares.

    “The market is likely to move from the oversold position in the subsequent trading sessions as investors have started to show buying interest,” FSDH Securities stated.

    “We expect a negative close to the week following 4 consecutive days of losses as investors continue to lock in profits,” Afrinvest Securities stated in a post-trading note.

  • Nigerian equities lose N228b as China crisis goes global

    Nigerian equities lose N228b as China crisis goes global

    Global stock markets yesterday took a major plunge after China suffered its worst trading session in eight years.

    An unprecedented collapse in Chinese shares sent tremors through financial markets, triggering the ugliest day of global trading since the depths of the financial crisis eight years ago.

    Billions were wiped off indices across the world in a day of frenetic selling, which saw the Shanghai composite suffer an 8.5 per cent decline, its worst one-day performance since 2007. The mass panic, dubbed “Black Monday” by China’s official state news agency, was driven by investors’ dashed hopes that Beijing would inject a fresh round of stimulus into its economy following a series of disappointing data last week.

    In Nigeria, after losing N283 billion last week, equities opened this week with a whooping loss of N228 billion in the five-hour trading session. Average decline stood at 2.22 per cent as relatively higher losses by 46 stocks, including the market’s largest stocks, overwhelmed modest gains by nine stocks.

    The opening downtrend pushed the negative average year-to-date return at the Nigerian stock market to -15.71 per cent. The negative market position appeared to be increasing, unnerving the more optimistic investors, lowering demand and increasing open-order supply, which has virtually turned the market into a discount window.

    Analysts were negative on the market’s outlook in the short-term, although there was almost unanimity on the good prospects of Nigerian equities in the medium to long terms.

    “We anticipate another round of bearish trading at tomorrow`s session (today) as there are no catalysts in the horizon to spur positive sentiments. The tumbling in global oil prices at the international markets may also be taking its toll on the market,” SCM Capital, formerly Sterling Capital Markets, stated in a post-trading review.

    Aggregate market value of all quoted companies on the Nigerian Stock Exchange (NSE) almost dropped below its psychological N10 trillion position to close at N10.013 trillion as against its opening value of N10.241 trillion, representing a loss of N228 billion or 2.22 per cent.

    The All Share Index (ASI), the common value-based index that tracks prices of all quoted equities, shrank to 29,214.13 points as against its opening index of 29,878.33 points, a day-on-day decline of 2.22 per cent.

    China’s benchmark index has now lost all of its yearly gains after a relentless ascent that saw its valuation rise to record levels earlier this year. Asian markets crashed on the news, with Japan’s Nikkei closing down 4.5 per cent and entering official “correction” territory. Hong Kong’s Hang Seng sanki 5.2 per cent, its steepest sell-off in 30 years.

    Emerging markets, most exposed to a waning Chinese economy, saw their currencies continue an abysmal summer rout. Russia’s rouble fell to an all-time low of 70.74 to the dollar, despite desperate attempts by the Kremlin to prop up its value.

    Contagion quickly spread west, decimating European indices, which all suffered record post-crisis losses. The FTSE 100 dropped 4.7 per cent, wiping £74 billion off its market capitalisation and capping its worst one-day performance since March 2009.

    The index staged a minor rebound, having lost more than £55 billion in the first two hours of morning trading. Britain’s benchmark index has now collapsed by 17 per cent since hitting a high of 7,104 in April and is slipping towards official bear market territory, defined as a 20 per cent decline from its peak.

    Europe’s FTSE EuroFirst300 stocks endured a 5.6pc loss that erased €450bn from the continent’s biggest companies. Italian stocks led the falls, down 6pc, while France’s CAC 40 suffered a 5.4pc decline, closing at 4383.46. Germany’s DAX also entered correction territory, bleeding 4.7pc.

    “Stock markets are falling apart at the seams,” said Jasper Lawler at CMC Markets.

    “There was one point today when there just seemed to be no buyers and markets just went into freefall.”

    Fears soon engulfed Wall Street, where the Dow Jones lost 1,000 points, minutes after the opening bell. Pre-market futures trading in the Dow and the S&P 500 had to be suspended as investors became embroiled in a manic sell-off. The Dow later rallied to fall by 2.6 per cent in New York’s afternoon trading.

    A key measure of US equity volatility, the CBOE Volatility Index, or VIX, shot above the 50 mark for the first time since 2009 before dropping back to 33 as US investors turned their focus back to domestic US issues.

    “With those markets closed, it’s now focused more on US fundamentals. The US economy remains relatively strong compared to others around the world,” said Peter Jankovskis, co-chief investment officer at OakBrook Investments LLC in Lisle, Illinois.

    The Dow Jones industrial average was down 346.07 points, or 2.10 percent, at 16,113.68. The Standard & Poor’s 500 Index was down 47.72 points, or 2.42 percent, at 1,923.17. The Nasdaq Composite Index was down 94.91 points, or 2.02 percent, at 4,611.13.

    Oil prices also recovered somewhat after plunging to six-and-a-half year lows. Safe-haven US government and German bonds, as well as the yen and the euro, rallied as currency concerns kicked in due to China’s recent currency devaluation.

    US crude was last down 3.7 per cent at about $38.95 a barrel after falling as low as $37.75 earlier in the day and Brent was off 4.2 percent at $43.57 after falling as low as $42.51 to take it under January’s lows for the first time. Worries about weaker demand from normally resource-hungry China added to global supply glut concerns.

    The S&P’s energy index was the weakest performer with a 2.9 per cent decline in afternoon trading.

    With serious doubts emerging about the likelihood of a US interest rate rise this year, the dollar was down 1.5 per cent against other major currencies after falling as much as 2.5 per cent earlier in the day.

    MSCI’s broadest index of Asia-Pacific shares outside Japan fell 5.4 per cent to a more than three-year low. Tokyo’s Nikkei ended down 4.6 per cent and Australian and Indonesian shares hit two-year troughs.

    London’s FTSE 100, with its large number of global miners and oil firms, ended down 4.7 per cent for its 10th straight decline – its worst run since 2003. The MSCI all world stock index was off three per cent.

     

  • Investment advisers, portfolio managers raise hopes on Nigerian stock market

    Investment advisers, portfolio managers raise hopes on Nigerian stock market

    As quoted equities lost N272 billion and the benchmark index at the Nigerian Stock Exchange (NSE) slipped below the 30,000 mark, investment advisers and portfolio managers said the Nigerian stock market still has potential for considerable rebound in the latter part of this year.

    The market pundits, under the auspices of the Association of Investment Advisers and Portfolio Managers (IAPM), said Nigerian macroeconomic direction and global attention to the Nigerian market could spur a rebound going forward.

    President, Association of Investment Advisers and Portfolio Managers (IAPM), Femi Oyetunji, who spoke in Lagos ahead of the association’s yearly forum holding tomorrow, noted that Nigeria, as the largest economy in Africa, is at the centre of global investment consideration and recent successes in the areas of political transition have enhanced the country’s outlook.

    Oyetunji, who is also the group managing director of Continental Reinsurance Plc, meanwhile stressed the need for the Nigerian government to intensify efforts aimed at diversifying the economy for a sustainable growth.

    According to him, considering the state of economy with the continuing decline of price of crude oil, it is now more compelling for Nigeria to diversify its economy.

    He added that the IAPM had chosen the theme: “Revenue Diversification-The Bedrock of Sustained Economic Growth”, as part of the efforts to refocus attention on economic diversification.

    Vice President, Association of Investment Advisers and Portfolio Managers (IAPM), Mrs. Oluwatoyin Sanni, also underscored the need for Nigeria to develop other sources of revenues.

    “We are not an oil company, we are country and we need to begin to demonstrate that we are a nation. Our people have already demonstrated that they are productive across all sectors like manufacturing, agriculture, technology and services. The challenge before the country is for the government to find a way to track and broaden government revenues across the productive areas of the economy,” Sanni said.

    On the forum, Sanni, who is also the group managing director, United Capital Plc, said the association has invited a very knowledgeable and experienced industry operator in the person of the Chairman of Lead Capital Group, Mr. Abimbola Olashore as the guest speaker.

    She said the association seeks to create appropriate forum to further protect the interest of investors in the market, adding that this year’s forum would attract notable dignitaries from all walks of life, especially from the capital and financial market.

    Other speakers and panelists included Managing Director, Proshare Nigeria Limited, Mr. Femi Awoyemi; Permanent Secretary, Lagos State Debt Management Office, Mrs. Olanowale Ademola; Managing Director, Stanbic IBTC Nominees Limited, Mr. Akeem Oyewale and Managing Director, Partnership Investment Company Plc, Mr. Victor Ogiemwonyi.

    Also, the Director-General of Securities and Exchange Commission(SEC), Mounir Gwarzo, will  be the special guest of honour while the Chief Executive Officer, Nigerian Stock Exchange, Mr. Oscar Onyema and other eminent capital market players will be at the forum.

    IAPM, formerly known as Association of Pension Funds and Investment Managers, was formed in 1981 by corporate bodies including portfolio and asset managers, trust corporation, pension fund managers, banks, insurance organisations among other related organisations. The aim of the association is to promote professionalism in the practice and administration of investment management advisory in Nigeria.

  • Equities’ outlook is neutral, say analysts

    Nigerian equities may not witness a strong bullish run in the second half as the stock market grapples with global and national macroeconomic challenges and seasonal market cycles.

    In a preview of the second half, analysts at Investment One Financial Services Limited said the outlook for the stock market in the second half is “neutral”, a reference to subdued performance.

    According to analysts, the equities market could benefit from above-forecasts earnings reports in the second and third quarters as well as stable macroeconomic fundamentals and attractive valuation of the Nigerian stock market relative to developing and emerging market peers.

    Analysts noted that renewed foreign investors’ appetite for the Nigerian market on the back of prolonged monetary easing in the United States of America (USA) could boost market performance.

    They however said the market performance could be undermined by weak inflow of external funds on improving economic fundamentals in the USA as well as poor corporate earnings that fail to meet market-wide expectations and end of year sell-off.

    They outlined that Nigeria’s Gross Domestic Products (GDP) will likely grow moderately during the second half by around 6.5 per cent to 6.7 per cent with the non-oil sector remaining the major driver.

    “Inflation will likely remain within the single-digit horizon. Pressure on the headline index may emanate from political spending as well as expected signing of the 2013 budget amendment bill. The Monetary Policy Committee is expected to hold rate at 12 per cent over the period with the apex bank continuing to leverage on high rates on OMO instruments to lure foreign investors,” analysts stated.

    They pointed out that increasing pressure on foreign reserves from uncertainty in crude oil price, declining production and rising leakages as well as pressure on local currency on the back of anticipated weak foreign exchange earnings and foreign portfolio investments may likely lead to an upward adjustment of the exchange band.

    In the fixed income market, analysts indicated possibility of an elevated yield environment at the fixed income end of the market with the shorter end of the yield curve particularly treasury bills likely to give good returns.

    According to analysts, expected upside in the fixed income market is premised on global fund flows into the emerging market, which might drop relative to levels witnessed earlier in the year due to economic growth levels recorded in the developed economies.

    They noted that declining global price of crude oil, lower than budgeted crude oil production and reduced energy demand in summer might put pressure on the Naira thereby increasing the fear of exchange rate risk.

    They attributed the strong performance of the stock market in the first half to strong foreign investors’ appetite for Nigerian stocks, high level of profitability growth which made most local stocks to trade at a discount to their emerging market peers as well as attractive valuation of Nigerian equities.

    Nigerian stock market recorded a six-month average return of about 28.8 per cent in the first half of this year, leaving investors with approximately N2.45 trillion in capital gains during the period.

    Notwithstanding the downtrend that characterized June, significant successive bullish rallies in previous months still left Nigerian equities as one of the best-performing market during the period.

    In value terms, the increase of N2.45 trillion in the first half has already surpassed total gains of N2.44 trillion recorded for the entire 2012. However, the real benchmark return of 28.80 per cent is some 6.65 percentage points below the average full-year return of 35.45 per cent recorded in 2012.

    Aggregate market value of all equities on the Nigerian Stock Exchange (NSE) closed the first half at N11.426 trillion as against its value-on-board of N8.974 trillion that started the year, representing an increase of 27.3 per cent. The All Share Index (ASI), which doubles as benchmark index for all equities on the NSE and country index for Nigeria, rose from 2013’s opening index of 28,078.81 points to close the first half at 36,164.31 points.

    The first half performance was moderated by the downtrend in the latter half of June, which saw the month closing as the most bearish month with a loss of N649 billion. Equities had shown brighter performance in the first five months with whooping capital gains of N3.10 trillion. Aggregate market capitalisation of all equities had closed May at N12.075 trillion while the ASI had indicated a five-month average return of 34.6 per cent.

    NSE’s data showed that the industrial goods stocks remained the best-performing subgroup during the first half. NSE Industrial Goods Index showed a six-month average return of 49.12 per cent. Ethical investors fared better as NSE-Lotus Islamic Index indicated a return of 42.31 per cent. NSE 30 Index, which tracks 30 most capitalised stocks, posted a first half return of 27.38 per cent. NSE Consumer Goods Index showed a return of 21.40 per cent. NSE Banking Index showed average return of 18.46 per cent while NSE Insurance Index indicated a return of 16.90 per cent. The NSE Oil and Gas Index showed that downstream investors recorded modest return of 12.18 per cent.