TheNewsGuru

Tag: Stock Market

  • Stock market indices reverse positive trend, down by 1.5%

    Stock market indices reverse positive trend, down by 1.5%

    The stock market closed trading on Tuesday on a negative note, due as the losses in stocks of Tier-one banks.

    Consequently, All-Share Index fell by 1.5 per cent or 1,564.52 to close at 103,110.15, compared with 104,674.67 posted on Monday.

    Similarly, investors lost  N857 billion or 1.5 per cent, making the market capitalisation, which opened at N57.282 trillion, to close at N56.425 trillion.

    Accordingly, the Year-To-Date (YTD) return decreased to 37.89 per cent from 39.99 per cent recorded on Monday.

    Losses in Tier- one banks namely: Zenith Bank, Guaranty Trust Holding Company (GTCO) and United Bank of Africa dragged the market down.

    A total of 648.95 million shares valued at N11.09 billion were exchanged in 14,579 deals.

    Analysis of the market activities indicated that trade turnover settled lower relative to the previous session, with the value of transactions down by 57.26.per cent.

    Meanwhile, Japaul Gold Group led the volume chart with 59.80 million shares traded at N179.54 million.

    Transcorp Hotel trailed with 52.06 million shares traded at N763.20 million.

    Access Corporation also sold shares of 46.81 million worth N1.20 billion, UBA traded 44.55 million shares worth N1.23 billion and Oando Plc which transacted 33.95 million shares worth N496.65 million.

    On the losers’ table, Linkage Assurance, Caverton, Sterling Nigeria, Axa Mansard and National Salt Company (NASCON) lost in percentage terms of 10 each to close at N1.17, N1.80, N6.30, N5.85 and N68.40.

    On the other hand, UPDC Plc led by 8.11 per cent to close at N2, while Geregu Power Plc gained 4.61 per cent to close at N517.80 per share.

    Wema Bank garnered 1.21 per cent to close at N10.90, Ellah Lakes Plc rose by 0.99 per  ent to close at N3.05 and UPDC Real Estate Investment Trust went up by 0.81 per cent to close at N6.25 per share.

    Reacting, the Doyen of Nigerian Stockbrokers, Mr Sam Ndata, assured investors that there was no cause for alarm, due to the drop in the market performance.

    Ndata told NAN in an interview in Lagos that a decline in market performance is a nature of the market.

    “Whatsoever goes up, must surely come down and viz-a-viz,” Ndata said.

    He said: “Today’s fall in the market performance does not mean that investors are at lost, hence, there is no cause for alarm.

    “The market has been on a rising trend for weeks now, so the nature of investment must take its course.

    “It is a regular practice for investors to withdraw part of the investment for their personal use and that is why we witnessed a drop in the market record.

    “We believe that, by tomorrow or following days the market will rise again.

  • Stocks: Investors gain N510bn as market hits 15-year high

    Stocks: Investors gain N510bn as market hits 15-year high

    The Nigerian capital market on Tuesday gained by N510 billion, closing at N39.69 trillion from N36.21 trillion recorded on Monday.

    Consequently, the market capitalisation increased by 0.51 per cent, making the market  to hit a 15-year high.

    Also, the All-Share Index (ASI) of Nigerian Exchange Ltd. (NGX) rose by 0.51 per cent to 66,490.34 points from 66,151.38 on Monday, surpassing the highest value of 66,371.20 recorded on the Exchange on March 5, 2008.

    This performance was in part, attributed to a surge in banking stocks as investors strategically positioned themselves, taking advantage of the recent record earnings posted by banks.

    Among the various sectoral indices, the NGX Banking Index experienced the most significant daily gain, rising by 1.63 per cent.

    Following closely were the NGX Consumer Goods Index, with a 0.99 per cent increase, and the NGX Industrial Index, which saw a 0.21 per cent uptick.

    Conversely, the NGX Oil and Gas Index dipped by 0.09 per cent, and the NGX Insurance Index recorded a substantial decline of 1.56 per cent, both attributable to investors reallocating their funds.

    An analysis of the day’s market activities revealed a substantial increase in trade turnover compared to the previous session, with transaction values surging by an impressive 79.18 per cent.

    Consequently, the total volume of stocks traded reached 436.95 million units, valued at N7.02 billion, across 7,933 deals.

    This marked a significant uptick from the 311.12 million units valued at N3.92 billion traded in 7,193 deals on Monday.

    FBN Holdings topped the activity chart with 55.15 million units valued at N911.21 million.

    Following closely was Japaul Gold with the sale of 33.11 million units worth N29.92 million, while UBA transacted 30.17 million units valued at N41.21 million.

    Market breadth closed positive, with 35 stocks appreciating in value while 32 stocks depreciated.

    Champion Breweries led the pack of gainers with a remarkable 10 per cent increase in stock value.

    Conversely, Linkage Assurance led the group of 32 declining securities, with a 10 per ent decrease in stock value.

    Reacting to the performance of the market, market experts attributed this strong performance to a combination of factors.

    The factors  include investor sentiment influenced by macroeconomic developments such as the formation and swearing-in of the economic cabinet by President Bola Tinubu.

    Additionally, movements in yields within the fixed income market played a role in shaping market dynamics.

    They emphasised the importance of strategically positioning investments in fundamentally strong stocks, given the ongoing challenges posed by the weak macroeconomic environment on corporate earnings.

  • NGX resumes after Christmas break with N238bn loss

    NGX resumes after Christmas break with N238bn loss

    The Nigerian stock market resumed trading on Wednesday after the Christmas holidays with a loss of N238 billion due to profit taking.

    Speficially, the market capitalisation which opened at N22.060 trillion lost N238 billion or 1.08 per cent to close at N21.822 trillion.

    Also, the All-Share Index inched lower by 455.75 points or 1.08 per cent to close at 41,807.10 against 42,262.85 achieved on Friday.

    Accordingly, month-to-date loss increased to 3.3 per cent, while the year-to-date gain moderated to 3.8 per cent.

    The market resumed trading activities after the public holidays on Dec. 27 and 28 declared by the federal government to mark Christmas and Boxing Day celebration.

    The market’s negative performance was driven by price depreciation in large and medium capitalised stocks which are: BUA Cement, MTN Nigeria Communications (MTNN), PZ Cussons, May & Baker and Ecobank Transnational Incorporated.

    Market sentiment was slightly positive with 17 gainers relative to 16 losers.

    BUA Cement led the losers’ chart by 10 per cent to close at N67.05 per share.

    May & Baker followed with a decline of 9.98 per cent to close at N4.06, while PZ Cussons lost 8.96 per cent to close at N6.10 per share.

    Jaiz Bank declined 8.06 per cent to close at 57k, while UPDC Real Estate Investment Trust shed 6.25 per cent to close at N3.75 per share.

    Conversely, Union Bank of Nigeria drove the gainers’ chart in percentage terms by 9.91 per cent to close at N6.10 per share.

    Royal Exchange followed with 9.09 per cent to close at 84k, while Sovereign Trust Insurance rose by 7.69 per cent to close at 28k per share.

    Livestock Feeds was up by 6.86 per cent to close at N2.18, while Caverton Offshore Support Group appreciated by 2.99 per cent to close at N1.72 per share.

    However, the total volume traded increased by 61.10 per cent with an exchange of 180.182 million units valued at N1.48 billion exchanged in 3,828 deals.

    This was in contrast with 111.84 million shares worth N911.92 million traded in 2,072 deals on Friday.

    Transactions in the shares of Jaiz Bank topped the activity chart with 17.65 million shares valued at N10.53 million.

    Union Bank followed with 16.80 million shares worth N101.83 million, while UACN traded 12.88 million shares valued at N123.52 million.

    Transcorp sold 11.39 million shares worth N11.25 million, while Sovereign Trust Insurance transacted 9.99 million shares valued at N2.78 million.

  • Nigeria stock market ends 2020 with 50.03% growth

    Nigeria stock market ends 2020 with 50.03% growth

    The nation’s bourse on Thursday closed 2020 upbeat, appreciating by 50.03 per cent, with the All-Share Index crossing the 40, 000 mark on the last trading day, in spite of COVID-19 pandemic.

     

    Specifically, the All-Share Index which opened trading for the year at 26, 842.07 rose by 13, 428.65 points or 50.03 per cent to close at 40, 270.72.

     

    Similarly, the market capitalisation rose by N8.098 trillion to close at N21.056 trillion from the opening year figure of N12.958 trillion.

     

    According to analysts, the market was positively impacted by policies introduced by the Central Bank of Nigeria (CBN), which favoured the stock market.

     

    They noted that the apex bank policies impacted positively on Nigerian stocks, with the stock market recording the highest growth in six years.

     

    According to Bloomberg, the Nigerian equities benchmark index in Africa’s largest economy recorded its highest return in 2020, the best among 93 equity indexes it tracked.

     

    Consequently, it emerged as the world’s best performing stock market year-to-date.

     

    Commenting on the market performance, Uche Uwaleke, a financial economist and Professor of Capital Market at Nasarawa State University, Keffi, described 2020 as a year of bumper harvest.

     

    “The major reason is the fact that other competing asset classes such as fixed income securities lost their attractiveness owing to CBN policies which lowered yields.

     

    “Naturally, investors preference shifted to the riskier equities market that offered returns higher than inflation rate.

     

    “The way to sustain the momentum is for the CBN to continue to ensure a low interest rate environment through accommodative monetary policies that tend to support economic growth,’’ Uwaleke said.

     

    Meanwhile, an analysis of the stock market activity on Thursday showed that the uptrend was driven by price appreciation in medium and large capitalised stocks including MTN Nigeria and BUA Cement, BOC Gases, Northern Nigeria Flour Mills (NNFM) and C & I Leasing.

     

    BOC Gases dominated the gainers’ chart in percentage terms, gaining 10 per cent to close at N9.57 per share.

     

    NNFM followed with 9.95 per cent to close at N6.74, while C & I Leasing rose by 9.94 per cent to close at N5.20 per share.

     

    FCMB Group rose by 9.90 per cent to close at N3.33, while BUA Cement appreciated by 9.87 per cent to close at N77.35 per share.

     

    Conversely, FTN Cocoa Processors led the losers’ chart in percentage terms, losing 9.59 per cent to close at 66k per share.

     

    Eterna followed with a loss of 9.09 per cent to close at N5.10, while AIICO Insurance declined by 8.87 per cent to close at N1.13 per share.

     

    International Breweries dipped 8.32 per cent to close at N5.95, while Ecobank Transnational Incorporated shed 7.69 per cent to close at N6 per share.

     

    Also, the total volume of traded rose by 90.57 per cent as investors bought and sold 710.06 million shares worth N10.08 billion in 4, 396 deals.

     

    This was in contrast with a total of 372.93 million shares valued at N11.50 billion achieved in 5, 186 deals on Wednesday.

     

    Transactions in the shares of AIICO topped the activity chart with 205.99 million shares worth N234.23 million.

     

    Access Bank followed with 99.65 million shares valued N898.55 million, while Japaul Gold and Ventures traded 85.74 million shares worth N49.59 million.

     

    FBN Holdings sold 48.31 million shares valued at N342.91 million, while Zenith Bank transacted 44.04 million shares worth N1.09 billion.

  • Stock Market Loses N277bn as Investors Prepare for Lockdown

    Investors at the nation’s stock market lost N277 billion on Monday as some of them in Lagos and Abuja get ready for the total lockdown from Tuesday as announced by President Muhammadu Buhari on Sunday in his nationwide broadcast.

    The two major cities would be under lock and key for 14 days and if the reason for the action, coronavirus diseases (COVID-19) remains undefeated, the stay-at-home order might be extended by the federal government.

    But in order not to be trapped financially, some traders quickly sold off some stocks in their portfolios and the banking sector was the most hit.

    The banking index lost 3.62 percent, the consumer goods sector declined by 0.92 percent, while the insurance counter fell by 0.52 percent. However, the oil/gas index appreciated by 1.77 percent, while the industrial goods sector slightly improved by 0.01 percent.

    During the trading session, more stocks were traded by investor, causing the trading volume to rise by 85.71 percent to 466.9 million from 251.4 million.

    However, the total value of these transactions went down by 42.43 percent to N1.9 billion from N3.4 billion, while the number of deals fell by 7.79 percent to 3,659 from 3,968.

    Much of these trades were from Meyer, which recorded the sale of 201.0 million units of its stocks worth N92.5 million, while Champion Breweries traded 89.3 million shares for N61.7 million.

    Zenith Bank transacted 48.2 million equities worth N574.4 million, UBA exchanged 19.2 million stocks valued at N98.8 million, while FNB Holdings sold 18.8 million shares for N75.2 million.

    The market breadth close negative yesterday after recording 15 price decliners as against 11 price risers led by Mobil Nigeria, which added N14.40 to its share price to close at N160.90 per unit.

    Cadbury Nigeria gained 60 kobo to trade at N6.80 per share, Berger Paints appreciated by 60 kobo to quote at N6.70 per unit, Africa Prudential garnered 28 kobo to sell at N3.70 per share, while GlaxoSmithKline grew by 15 kobo to N4 per unit.

    However, it was not a good day for MTN Nigeria as the company’s stock lost N10 to finish at N90 per share, while Zenith Bank followed by losing 65 kobo to trade at N11.95 per unit.

    GTBank depreciated by 55 kobo to N17.90 per share, International Breweries lost 50 kobo to quote at N4.90 per share, while Access Bank fell by 35 kobo to sell at N6.05 per unit.

    By the time the market closed for business yesterday, the All-Share Index (ASI) of the Nigerian Stock Exchange (NSE) reduced by 530.99 points to 21,330.79 points from 21,861.78 points, while the market capitalisation decreased by N277 billion to N11.117 trillion from N11.393 trillion.

  • Stock Market Investors Lose N371bn in 24 hours

    Stock Market Investors Lose N371bn in 24 hours

    The gains posted by the Nigerian Stock Exchange (NSE) on Wednesday were quickly wiped out on Thursday following the decision of investors to take profit.

    The growth printed by the market at the midweek session was unexpected and the next day, investors took action by selling off in order to re-enter or watch situations from the sidelines.

    The global market has been plagued with coronavirus, with Nigeria not an exception. Yesterday the number of confirmed cases rose to 12 from eight after four new cases were discovered in Lagos, a day after five fresh ones were announced.

    This situation forced federal government to announce the shutting down of schools (primary, secondary and tertiary) nationwide and state governments taking a similar action by banning large gatherings, including religious houses, bars and others.

    At the close of market yesterday, stocks were down by 3.12 percent, stretching the year-to-date loss to 17.75 percent as a result of selloffs witnessed especially in the banking sector, which has posted gains in the past sessions.

    Consequently, the All-Share Index (ASI) went down by 711.06 points to 22,078.58 points from 22,789.64 points, while the market capitalisation reduced by N371 billion to N11.506 trillion from N11.876 trillion.

    During the trading session, the number of stocks transacted by investors reduced by 21.69 percent to 525.8 million units from 671.5 million units, while the value of shares traded dropped by 55.16 percent to N4.7 billion from N10.6 billion, with the number of deals falling by 24.80 percent to 5,450 from 7,247.

    Zenith Bank remained the most active stock yesterday, trading 118.5 million units worth N1.5 billion, while WAPIC Insurance exchanged 102.4 million units valued at N22.5 million.

    GTBank traded 100.7 million shares for N1.8 billion, FBN Holdings sold 35.2 million stocks worth N140.8 million, while UBA transacted 30.8 million units for N155.5 million.

    The Customs Street closed Thursday’s trading session with 22 price losers and 13 price gainers.

    Nestle Nigeria was the heaviest price loser, shedding N30 to settle at N850 per share, while MTN Nigeria lost N5 to stay at N99.50 per share.

    Dangote Cement fell by N4.40 to sell at N129 per share, Zenith Bank depreciated by N1.35 to trade at N12.15 per unit, while Lafarge Africa declined by 70 kobo to quote at N10.10 per unit.

    Conversely, Africa Prudential stayed on top of the advancers’ chart yesterday after adding 32 kobo to its share price to trade at N3.55 per share.

    International Breweries appreciated by 25 kobo to sell at N5.50 per unit, Dangote Sugar gained 15 kobo to settle at N10 per share, Sterling Bank grew by 9 kobo to finish at N1.08 per share, while Livestock Feeds garnered 5 kobo to sell at 60 kobo per unit.

    A look at the performances of the five key sectors of the market showed that the banking counter lost 7.75 percent on Thursday, followed by the industrial goods sector, which fell by 1.45 percent, and the consumer goods sector, which declined by 0.96 percent.

    Only the insurance index gained yesterday, growing by 1.08 percent, while the energy counter closed flat.

  • Nigeria stock market index records marginal increase

    Nigeria stock market index records marginal increase

    Transactions on the Nigerian Stock Exchange (NSE) ended on a cautious note on Wednesday with the All-Share Index increasing marginally by 0.02 percent.

    The index rose by 9.92 points or 0.02 per cent to close at 42,158.32 compared with 42,148.40 achieved on Tuesday due to marginal price growth by blue chips.

    Also, market capitalisation which opened at N15.125 trillion grew by N4 billion or 0.03 per cent to close at N15.129 trillion.

    Mr Ambrose Omordion, the Chief Operating Officer, InvestData Ltd., attributed the mixed performance being experienced in the market to investors adjustment to over 15 per cent growth posted in January.

    Omordion said that the nation’s stock market for over 10 years never witnessed a growth in January, noting that 2018 January performance was historic.

    He added that investors’ reactions to Central Bank of Nigeria (CBN) directive that banks with over 10 per cent non-performing loans should not pay dividends contributed to the development.

    He said investors overreacted to the pronouncement meant to safeguard the banks for future growth.

    He, however, said the market would rebound with improved 2017 earnings being expected in the next couple of days.

    An analysis of the price movement table indicated that GTB recorded the highest price gain to lead the gainers’ table with 75k to close at N48 per share.

    NASCON and Flour Mills trailed with 55k each to close at N20.55 and N32.55 per share.

    Zenith Bank garnered 45k to close at N31.50, while United Bank for Africa improved by 40k to close at N12.60 per share.

    On the other hand, major blue chips recorded price depreciation and this was dominated by Nestle with a loss of N10 to close at N1, 370 per share.

    Mobil Oil lost N9 to close at N1.90, while Nigerian Breweries shed N3.50 to close at N124. 50 per share.

    Con Oil dipped N3.40 to close at N32.10, while Julius Berger decreased by N1.35 to close at N25.95 per share.

    Also, the volume of shares traded closed higher with a growth of 11.75 per cent as investors bought and sold 570.26 million shares valued at N5.33 billion achieved in 5,794 deals.

    This was in contrast with 510.28 million shares worth N4.63 billion traded in 5,757 deals on Tuesday.

    Custodian and Allied Insurance dominated activities in volume terms, accounting for 94.45 million shares valued at N377.82 million.

    FBN Holdings came second with a turnover of 61.64 million shares worth N683.26 million, while Fidelity Bank sold 55.93 million shares valued at N110.56 million.

    FCMB Group accounted for 48.25 million shares worth N100.56 million, while Transcorp transacted 31.51 million shares valued at N63.90 million.

     

  • NSE commences e-flow of information from companies to stock market

    As part of strategic efforts to improve operations in 2018, the Nigerian Stock Exchange (NSE) has launched an electronic flow mechanism in its trading engine.

    The e-flow as expected will allow companies to send their corporate earnings’ report and other vital information directly to the search engine on a real time basis without encountering any bottle necks as obtained before now.

    The auto-flow function, an existing function of the issuers’ portal had been partially disabled in order to allow a first level, non-substantive review of filings by the NSE before they are circulated to the market and the general public. Since inception in 2013, the Exchange has seldom permitted information to auto-flow to the market.

    With the launch of the full auto-flow mechanism, all corporate information shall flow from the companies to the stock market, a move that will reduce possibility of interference and distortion of the price discovery mechanism.

    A circular obtained by TheNewsGuru.com over the weekend indicated that the full auto-flow mechanism began on the first trading session in 2018.

    The auto-flow mechanism is one of the functionalities of the X-Issuer platform of the Exchange. It allows information filed by companies and other issuers through the issuers’ portal to flow directly to the market on a real time basis without any human intervention.

    According to the Exchange, the time is ripe for all information submitted via the issuers’ portal to auto-flow directly to the market without any intervention of the Exchange.

    The NSE had noted that operationalising the complete auto-flow function on the issuers’ portal will eliminate the current practice of reviewing financials before the financials flow to the market and the Exchange’s website, thus ensuring a real time flow of information directly from the issuer to the market.

    In order to ensure a seamless transition from previous system to a complete auto-flow system, the Exchange had adopted a four-phase approach that included regulatory and statutory disclosures training, assessment of issuers’ compliance with disclosure requirements, pilot test of auto flow and full launch of complete auto flow.

    Under the phase one, which was held between November and December 2016, the Exchange had organised trainings for company secretaries, compliance officers, chief finance officers and other issuers’ representatives charged with the responsibility of making disclosures to the Exchange.

    In the second phase, the Exchange conducted a comprehensive review of issuers’ filings using interim returns for the last quarter of 2016 and the December 2016 audited accounts of listed companies with December year ends. Deficiencies identified at this phase were highlighted and communicated to companies for correction in subsequent filings.

    Under the third phase, the Exchange conducted a pilot test of the auto-flow mechanism using September 2017 interim returns and September audited accounts of companies with September year ends. Any report with regulatory and statutory deficiencies was withdrawn and corrected immediately. There was no sanction imposed for any report with deficiencies at this stage.

    Under the current final phase, the Exchange has commenced full operationalisation of the auto-flow mechanism in X-Issuer using December 2017 audited accounts.

    The circular indicated that with the full launch of auto-flow, the Exchange will apply regulatory sanctions on companies whose filings flow to the market with any form of deficiency.

  • Nigeria, Argentina, Turkey, two other stock markets make Top 5 Global Performers for 2017

    Nigeria, Argentina, Turkey, two other stock markets make Top 5 Global Performers for 2017

    Just as the national economy rebound from recession, the Nigeria bourse has appeared in the top five of global best market performers, according to a CNN report monitored by TheNewsGuru.com.

    A 2017 year review of the global stock market by CNN indicates that the United States stocks were on a first-class ride into record territory as the runs to an end. However, countries like Nigeria, Turkey, Hong Kong and Argentina did better than the US and these five countries are the biggest market stock winners of 2017.

    Here’s a look at the biggest stock market winners of 2017:

     

    1) Argentina: Argentina’s Merval index surged 73% this year and hit a record high the day after Christmas.

    The economy is growing and stocks have rallied strongly since after the election of President Mauricio Macri in late 2015. The Merval gained 45% in 2016.

    The president is said to have pursued a number of economic reforms this year, helping to further boost business confidence.

     

    2) Turkey: Turkey’s benchmark index rallied by 43% this year as the government implemented temporary tax cuts and a loan guarantee program that encouraged banks to lend to small businesses. GDP growth soared, reaching 11.1% in the third quarter.

    The stock market performance was also helped by the falling Turkish lira, said Neil Shearing, chief emerging markets economist at Capital Economics.

     

    3) Nigeria: The Nigerian All-Share index is still miles below record highs set in early 2008, but a 43% rally in 2017 has helped to close the gap.

    The index suffered mightily in 2015 and 2016 as low oil prices, militant attacks, currency troubles, elections and Ebola hit investor sentiment.

    But oil prices have moved higher, the central bank has made it easier to swap currencies and the economy has snapped out of recession, explained Zin Bekkali, founder and CEO of Silk Invest.

    Many analysts are optimistic that stocks could keep rising in 2018.

    “If you look at where we stand today, the Nigerian market is still one of the cheapest markets on the planet” said Bekkali.

     

    4) Hong Kong: The Hang Seng charged ahead by nearly 35%, but China’s major mainland indexes in Shanghai and Shenzhen floundered.

     

    5) United States: The Dow Jones Industrial Average shot up by 25%, the S&P 500 surged by 20% and the tech-heavy Nasdaq index outshined them with all with a stunning 29% gain. The value of public companies on global stock markets grew by $12.4 trillion in 2017, according to S&P Dow Jones Indices, which included dividends in its calculation. The U.S stocks were front and centre as investors bet on strong economic growth, solid corporate earnings and hopes that President Trump would roll back regulations. Trump also boosted markets with a big corporate tax cut.

     

    The Biggest Loser is Qatar

    Gulf nation Qatar’s stock market tumbled by 19% amid a spat with its neighbours: Saudi Arabia, Bahrain and the United Arab Emirates.

    Their decision to cut diplomatic ties and transport links with Qatar in June took the region by surprise. The nations accused Qatar of funding terrorism, a charge it denies. Efforts to restore ties have so far failed.

    Qatar has found workaround strategies and different trade routes to get by, said Shearing.

    “A lot of the initial economic disruption has faded,” he said. “It doesn’t look like [this] will be resolved quickly, but it doesn’t look like it’s doing vast damage to Qatar’s economy.”

     

    CNN