Economy
Market Gains N38bn as HY 2020 Earnings Trigger Buying Pressure
By Dipo Olowookere
The first trading session on the floor of the Nigerian Stock Exchange (NSE) after the Sallah break ended on a positive note on Monday following the 0.29 per cent growth recorded.
This was buoyed by bargain hunters, who began to mop up some value stocks following the release of some half-year earnings of companies trading on the exchange.
So far, the results have been quite impressive considering the global crisis caused by COVID-19; though the market still awaits the financial statements of four of the big five banks. Only FBN Holdings has released its HY’20 results.
At the close of transactions yesterday, the All-Share Index (ASI) appreciated by 72.39 points to 24,766.12 points from 24,693.73 points, while the market capitalisation increased by N38 billion to N12.920 trillion from N12.882 trillion.
During the trading day, Transcorp was investors’ darling as the company transacted a total of 23.4 million shares valued at N14.4 million.
Custodian Investment, which announced acquiring 51 per cent stake of UAC Nigeria in UPDC yesterday, traded 19.1 million stocks for N97.7 million.
Also, GTBank transacted 18.2 million shares for N411.6 million, FBN Holdings exchanged 13.5 million equities worth N69.7 million, while UBA traded 9.7 million shares for N60.5 million.
In all, a total of 186.5 million shares worth N1.3 billion exchanged hands on Monday in 4,718 deals compared with the 101.6 million stocks worth N973.6 million traded in 3,685 deals in the preceding session.
This indicated an 83.57 per cent rise in the trading volume, a 34.52 per cent growth in the trading value and a 28.03 per cent increase in the number of deals.
The market closed with 19 price gainers and 16 price losers yesterday, with Flour Mills taking the juiciest spot on the risers’ table after appreciating by N1.70 to close at N18.75 per unit.
BUA Cement gained 80 kobo to trade at N40.20 per share, GlaxoSmithKline improved by 40 kobo to sell for N5.30 per share, GTBank gained 35 kobo to close at N22.85 per unit, while Neimeth appreciated by 15 kobo to quote at N1.65 per unit.
On the losers’ end, UAC Nigeria lost 70 kobo to top the chart at N6.30 per unit and was closely followed by Dangote Sugar, which lost 45 kobo yesterday to trade at N11.50 per share.
Custodian Investment depreciated by 40 kobo to sell for N5.10 per share, NEM Insurance went down by 10 kobo to quote at N1.90 per unit, while AIICO Insurance declined by 9 kobo to trade at 85 kobo per unit.
A look at the performance of the five key sectors of the market on Monday showed that only the insurance segment closed negative with a decline of 2.35 per cent.
The industrial goods counter appreciated by 0.78 per cent, the banking space grew by 0.70 per cent, while the consumer goods index gained 0.13 per cent, with the energy index closing flat.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange closed flat on Wednesday, August 5, as the market witnessed weaker trading activity with only two deals executed.
In the midweek session, the volume of securities exchanged by investors dropped 99.9 per cent to 802 units from the 1.6 million units recorded on Tuesday. The value of securities further decreased by 99.6 per cent to N208,240 from the preceding session’s N47.6 million, and the number of deals significantly went down by 93.9 per cent to two deals from the 33 deals recorded a day earlier.
Great Nigeria Insurance (GNI) Plc remained the most traded stock by value on a year-to-date basis, with 3.4 billion units worth N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units sold for N6.5 billion, and Central Securities Clearing System (CSCS) Plc with 76.9 million units transacted for N5.5 billion.
GNI Plc was also the most active stock by volume on a year-to-date basis, with 3.4 billion units exchanged for N8.4 billion, followed by Infracredit Plc with 2.3 billion units traded for N6.5 billion, and Resourcery Plc with 1.1 billion units valued at N415.7 million.
There were no price gainers or losers yesterday.
As a result, the market capitalisation stood unmoving at N2.739 trillion, while the NASD Security Index (NSI) remained unchanged at 4,563.96 points.
By Adedapo Adesanya
The Naira slid against the US Dollar by N2.28 or 0.17 per cent in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Wednesday, August 5, to N1,363.85/$1 from N1,362.55/$1.
The local currency also declined against the Pound Sterling in the official market during the session by N5.97 to close at N1,837.38/£1 compared with Tuesday’s closing rate of N1,831.41/£1, and against the Euro, it crashed by N6.54 to quote at N1,575.25/€1 versus the preceding session’s N1,568.71/€1.
But at the black market, the Nigerian Naira traded flat against the greenback yesterday at N1,400/$1, and also remained unchanged at the GTBank FX desk at N1,373/$1.
The Central Bank of Nigeria (CBN) says rates have narrowed to below two per cent, while the country’s external reserves have risen above $52.5 billion, reflecting the impact of its ongoing monetary and foreign exchange reforms.
CBN Governor Yemi Cardoso, represented by the Acting Director of Corporate Communications and Investor Relations, Mrs Hakama Sidi-Ali, disclosed this on Tuesday during the CBN Fair in Gombe. He noted that reforms introduced since 2023 had significantly reduced the disparity between the official FX market and the parallel market.
“The Naira continues to strengthen, with the spread between official and Bureau de Change rates now below two per cent,” he said, adding that reserves at $52.5 billion were supported by sustained inflows and renewed investor confidence in the economy.
Interbank FX transactions slid as weaker market activities dropped total Dollar volume exchanged to $75.35 million, a 51.8 per cent decline from $156.23 million in turnover quoted at the previous close.
The deals at the NFEM window also fell as data from the central bank put Wednesday’s quote at 82 from 139.
In the cryptocurrency market, major were down as global risk sentiment softened as a key world equity index slipped and chipmakers fell.
The MSCI All Country World Index snapped a five-day run to fall 0.2 per cent as chipmakers retreated on both sides of the Pacific. South Korea’s Kospi, a bellwether for the AI trade, dropped 4.4 per cent.
Ripple (XRP) depleted by 1.7 per cent to $1.05, Binance Coin (BNB) decreased by 1.0 per cent to $594.87, Cardano (ADA) depreciated by 0.9 per cent to $0.1884, TRON (TRX) shrank by 0.2 per cent to $0.3261, Solana (SOL) crumbled by 0.1 per cent to $74.00, and Dogecoin (DOGE) went down by 0.1 per cent to $0.0697.
On the flip side, Ethereum (ETH) gained 2.3 per cent to trade at $1,911.41, and Bitcoin (BTC) rose by 0.8 per cent to $64,759.28, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 apiece.
By Dipo Olowookere
The domestic stock exchange rebounded by 0.05 per cent on Wednesday on the back of renewed bargain-hunting by investors, though the level of activity waned.
After bleeding for a few days, the Nigerian Exchange (NGX) Limited heaved a sigh of relief yesterday, as the All-Share Index (ASI) gained 109.41 points to close at 244,912.24 points compared with the previous day’s 244,802.83 points, and the market capitalisation garnered N71 billion to settle at N158.087 trillion versus Tuesday’s N158.016 trillion.
Business Post reports that despite the rebound recorded by Customs Street at midweek, the market breadth index remained negative, as there were 20 price advancers and 29 price decliners, implying bearish investor sentiment.
Linkage Assurance appreciated by 9.94 per cent to N1.77, AVA Capital rose by 9.55 per cent to N10.90, Fortis Global Insurance advanced by 7.69 per cent to N2.80, McNichols gained 7.34 per cent to finish at N5.85, and Coronation Insurance surged by 5.51 per cent to N2.49.
Conversely, Honeywell Flour depreciated by 9.94 per cent to N16.30, PZ Cussons gave up 9.94 per cent to trade at N74.75, Zichis crashed by 9.74 per cent to N20.76, Learn Africa slipped by 9.62 per cent to N9.40, and Neimeth tumbled by 8.33 per cent to N8.25.
The busiest equity was FCMB, with a turnover of 369.2 million units valued at N4.1 billion. Chams transacted 46.7 million units worth N201.8 million, First Holdco transacted 43.5 million units for N5.7 billion, Access Holdings sold 29.8 million units worth N778.0 million, and Linkage Assurance exchanged 19.6 million units valued at N33.5 million.
At the close of transactions, market participants bought and sold 824.1 million units worth N25.5 billion in 48,114 deals, in contrast to the 1.6 billion units sold for N28.7 billion in 54,160 deals a day earlier, showing a shortfall in the trading volume, value, and number of deals by 48.49 per cent, 11.15 per cent, and 11.16 per cent, respectively.
