Economy
Market Loses N12bn on Weak Investors’ Appetite for Banking Stocks
By Dipo Olowookere
Investors showed a weak appetite for banking stocks on the floor of the Nigerian Exchange (NGX) Limited on Thursday and this had a substantial effect on the bourse at the close of transactions.
Business Post reports that the local stock market further depreciated by 0.04 per cent yesterday on the back of the 1.20 per cent loss suffered by the banking sector due to sell-offs in Zenith Bank, GTCO, Access Holdings, UBA, Ecobank and Wema Bank.
The depreciation reported by the counter watered down the gains printed by the insurance, energy, consumer goods and the industrial goods sectors, which closed higher by 1.47 per cent, 0.46 per cent, 0.13 per cent and 0.13 per cent respectively.
When the closing gong was struck by 2:30 pm to signify the end of trading on the bourse, the All Share Index (ASI) was down by 23.25 points to 53,170.73 points from 53,193.98 points, while the market capitalisation shrank by N12 billion to N28.665 trillion from N28.677 trillion.
It was observed that the exchange depreciated on Thursday amid an improvement in trading activity, with the volume of shares, the value of shares and the number of trades rising by 27.70 per cent, 79.36 per cent and 1.88 per cent respectively as a result of interests in AIICO Insurance, Transcorp, Lafarge Africa, Oando, FBN Holdings, MTN Nigeria and others.
This was because traders bought and sold 318.4 million shares worth N3.3 billion in 4,345 deals compared with the 249.0 million shares worth N1.9 billion in 4,265 deals transacted at the midweek session.
A breakdown indicated that Transcorp remained the most active stock as it traded 165.2 million units worth N225.9 million yesterday and was trailed by GTCO, which sold 22.2 million units valued at N493.1 million.
UBA traded 19.1 million equities valued at N148.6 million, FBN Holdings exchanged 13.3 million stocks worth N135.2 million, while Zenith Bank transacted 12.6 million shares worth N290.7 million.
Investor sentiment, as measured by the market breadth, remained weak on Thursday as the bourse finished with 15 price gainers and 17 price losers.
C&I Leasing was the worst-performing equity as its value declined by 8.57 per cent to N3.20, FTN Cocoa lost 8.33 per cent to trade at 33 kobo, Ikeja Hotel fell by 3.23 per cent to N1.20, GlaxoSmithKline depleted by 2.74 per cent to N7.10, while Zenith Bank depreciated by 2.35 per cent to N22.85.
Conversely, University Press ended the session as the best-performing stock with a price appreciation of 9.43 per cent to trade at N2.90, Cornerstone Insurance gained 8.93 per cent to sell for 61 kobo, Ellah Lakes improved by 7.89 per cent to N3.69, International Breweries rose by 4.23 per cent to N7.40, while Regency Assurance advanced by 3.70 per cent to 28 kobo.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange closed higher by 1.41 per cent on Friday, May 15, supported by four securities on the platform.
During the session, FrieslandCampina Wamco Plc added N14.24 to its share price to sell for N159.00 per unit, in contrast to the previous day’s N144.76 per unit.
Further, Central Securities and Clearing System (CSCS) Plc appreciated by N1.34 to N72.34 per share from N71.00 per share, Geo-Fluids Plc improved its price by 4 Kobo to N2.94 per unit from N2.90 per unit, and Industrial and General Insurance (IGI) Plc gained 1 Kobo to trade at 61 Kobo per share compared with Thursday’s closing price of 60 Kobo per share.
As a result, the NASD Unlisted Security Index (NSI) rose by 58.20 points to 4,188.41 points from 4,130.21 points, and the market capitalisation soared by N34.82 billion to N2.506 trillion from N2.471 trillion on Thursday.
During the session, the volume of trades went up by 180.8 per cent to 1.2 million units from 417,349 units, and the value of transactions increased by 29.8 per cent to N29.8 million from N23.2 million, while the number of deals fell by 22.6 per cent to 24 deals from 31 deals.
Great Nigeria Insurance (GNI) Plc ended the day as the most traded stock by value on a year-to-date basis with 3.4 billion units sold for N8.4 billion, followed by CSCS Plc with 60.8 million units exchanged for N4.1 billion, and Okitipupa Plc with 27.9 million units valued at N1.9 billion.
GNI Plc also closed the session as the most traded stock by volume on a year-to-date basis with 3.4 billion units worth N8.4 billion, followed by Resourcery Plc with 1.1 billion units transacted for N415.7 million, and Infrastructure Guarantee Credit Plc with 400 million units traded for N1.2 billion.
By Dipo Olowookere
The bears overpowered the Nigerian Exchange (NGX) Limited on Friday, sinking it further by 0.76 per cent when the closing gong was struck by 4 pm.
The nation’s flagship equity market was under selling pressure during the session, as investors booked profits after the shares witnessed price appreciation in the past trading sessions.
The energy sector was the most impacted, as it shed 4.43 per cent. The consumer goods index declined by 0.90 per cent, the banking counter decreased by 0.15 per cent, and the industrial goods sector lost 0.08 per cent, while the insurance counter gained 2.42 per cent, which was not enough to salvage the situation.
Consequently, the All-Share Index (ASI) contracted by 1,912.19 points to 250,330.92 points from 252,243.11 points, and the market capitalisation moderated by 1.225 trillion to N160.444 trillion from N161.669 trillion.
Zichis was the worst-performing stock for the session after it gave up 9.97 per cent to close at N29.43, FTN Cocoa slipped by 9.95 per cent to N8.96, The Initiates slumped by 9.90 per cent to N32.30, LivingTrust Mortgage Bank tumbled by 9.88 per cent to N3.83, and International Energy Insurance dropped 9.71 per cent to trade at N2.79.
The best-performing stock was ABC Transport, which grew by 10.00 per cent to N6.27. May and Baker also appreciated by 10.00 per cent to N47.30, SCOA Nigeria surged by 9.98 per cent to N33.05, Trans-Nationwide Express expanded by 9.97 per cent to N7.06, and DAAR Communications jumped 9.76 per cent to N2.25.
Yesterday, investors traded 1.1 billion shares worth N44.3 billion in 65,744 deals compared with the 1.0 billion shares valued at N41.6 billion transacted in 74,822 deals a day earlier. This indicated a dip in the number of deals by 12.13 per cent, and a rise in the trading volume and value by 10.00 per cent and 6.49 per cent, respectively.
Chams was the busiest equity for the day, with 328.5 million units sold for N1.1 billion. UBA traded 61.6 million units worth N2.7 billion, First Holdco transacted 58.7 million units valued at N4.2 billion, Secure Electronic Technology exchanged 51.9 million units worth N45.0 million, and Access Holdings traded 51.8 million units valued at N1.3 billion.
By Adedapo Adesanya
The last trading session of the week at the Nigerian Autonomous Foreign Exchange Market (NAFEX) ended on a negative note for the Naira on Friday, May 15, as it lost N15 Kobo or 0.1 per cent against the Dollar to trade at N1,371.04/$1 compared with the previous day’s N1,370.89/$1.
However, it further appreciated against the Pound Sterling in the same market segment yesterday by N20.77 to close at N1,830.61/£1 versus Thursday’s value of N1,851.38/£1, and gained N7.91 against the Euro to settle at N1,595.07/€1 versus N1,602.98/€1.
At the GTBank FX desk, the Naira lost N2 against the US Dollar during the session to sell at N1,383/$1 compared with the preceding session’s N1,381/$1, and at the black market, it remained unchanged at N1,385/$1.
The Naira is forecast to be broadly stable, supported by Dollar sales by the Central Bank of Nigeria (CBN) amid steady, higher oil receipts, with the market settling into a balance.
Policy direction is also expected to give the market some boost as the CBN said the new edition of the FX market guidelines will deepen liquidity, improve transparency and strengthen confidence in the country’s foreign exchange market.
According to the Governor of the CBN, Mr Yemi Cardoso, the update is due to changing global economic realities, domestic reforms and the need for a more coherent and forward-looking regulatory framework. According to him, the last edition of the FX manual was issued in 2018, making the latest review both timely and necessary.
Meanwhile, the cryptocurrency market plunged into the red zone as rising bond yields hit risk assets across markets, while traders are increasingly betting the Federal Reserve may need to raise rates again. Rising energy prices and resurging inflation could force central banks back into tightening mode.
Cardano (ADA) shrank by 4.4 per cent to $0.2557, Dogecoin (DOGE) slid by 3.7 per cent to $0.1104, Ripple (XRP) depreciated by 3.5 per cent to $1.41, Solana (SOL) crashed by 3.5 per cent to $87.81, and Binance Coin (BNB) slumped by 3.4 per cent to $659.64.
Further, Bitcoin (BTC) declined by 2.6 per cent to $78,547.49, Ethereum (ETH) lost 2.1 per cent to quote at $2,209.19, and TRON (TRX) tumbled by 0.7 per cent to $0.3509, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 each.
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