Economy
Recovery in the Equity Market in Sight?
By FSDH Research
Most investors in the Nigerian equity market did not smile during the first quarter of 2019 as the value of their investments dropped. And many are now asking if there is any hope of a recovery in the equity market.
Meanwhile, investors who took advantage of the high yields in the fixed income securities market in Q1 2019 are smiling to the bank. Election uncertainties, high yields on fixed income securities and risk aversion strategies adopted by investors made the equity market to record low patronage during the quarter.
Even after the election, the equity market has struggled to recover. This suggests that there were other factors that led to the drop in the market apart from issues surrounding the election.
The Nigerian Stock Exchange All Share Index (NSE ASI), the barometer which measures the performance of the equity market, dropped by 1.24% in Q1 2019. A few individual stocks, however, actually appreciated: this was unusual as large investors in the equity market rarely patronize most of the stocks which emerged among the list of top performers in Q1 2019.
The five top performing stocks in Q1 2019 by price appreciation were: Associated Bus Company Plc (+82.76%), McNichols Plc (+48.94%), Dangote Flour Mills Plc (+48.91%), Julius Berger Nigeria Plc (+36.82%) and Royal Exchange Plc (+31.82%).
The worst performing five stocks by price depreciation in the same period were: Academy Press Plc (-34.00%), eTranzact International Plc (-33.16%), Champion Breweries Plc (-27.14%), GlaxoSmithKline Consumer Nigeria Plc (-25.52%) and Unity Bank Plc (-25.23%).
The relatively stable exchange rate, decline in inflation rate and the appreciation in the price of crude oil on the international market could not lift the equity market from the negative territory in Q1 2019.
Our analysis of the financial performance of the largest ten companies by market capitalisation listed on the NSE shows that their combined revenue improved marginally by 4.31% in 2018 compared with 2017.
Their combined profit before tax (PBT) shows appreciable growth of 19.72% in 2018 compared with 2017. Our expectation is the outlook of the performance of quoted companies is better in the short-to-medium term than what was recorded in the last one to three years.
As the Federal Government of Nigeria (FGN) continues to pursue its inclusive growth agenda, supported by a favourable external environment in the short-to-medium term, the equity market should return to a path of sustainable growth.
While we believe that the growth projection in the Nigerian equity market is strong, we advise investors to adopt a long-term investment strategy in the market. They should also seek professional advice before they invest in companies. Despite the short-term volatility in the equity market, which can lead to a drop in the value of equity investment, investing in companies that have strong fundamentals will provide investors with a good return that is higher than the inflation rate over the long-term and protect against other short-term risks.
For investors who have neither the time nor the expertise to monitor their equity market investments and who still want to benefit from investment opportunities in the equity market, they can invest in any mutual fund in Nigeria that has exposure to the equity market.
Experienced fund managers manage these funds, and both the fund and the managers’ activities are regulated by the Securities and Exchange Commission (SEC) to protect investors’ interests.
If the current low yields in the Nigerian fixed income securities prevail, crude oil price remains above $70/barrel, exchange rate remains stable, inflation rate remains close to single digit, and government continues to develop structures that will improve the business environment, the equity market should record strong growth on a sustainable basis.
FSDH Research sees fairly strong growth opportunities in the following sectors: Consumer Goods, Industrial Goods, Banking, and Oil and Gas.
The following are our top stocks to watch: Dangote Cement, Dangote Sugar, FBN Holdings, Flour Mills, GTBank, 11 Plc, Nigerian Breweries, UBA, Zenith Bank, Access Bank and Seplat.
Economy
BNB Price Reflects Changing Dynamics in the Digital Asset Market
Economy
NASD Unlisted Security Index Crosses 4,000-point Benchmark Again
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange achieved a milestone on Friday, April 24, 2026, after five securities on the platform helped with a 1.85 per cent growth.
Data showed that the NASD Unlisted Security Index (NSI) again crossed the 4,000-point benchmark yesterday.
The index chalked up 73.64 points during the trading day to close at 4,052.59 points compared with the preceding session’s 3,978.95 points, while the market capitalisation added N5.38 billion to finish at N2.424 trillion versus Thursday’s closing value of N2.380 trillion.
The price gainers were led by Okitipupa Plc, which grew by N25.00 to sell at N305.00 per share compared with the previous price of N280.00 per share. Central Securities Clearing System (CSCS) Plc gained N6.92 to close at N76.26 per unit versus N69.34 per unit, Afriland Properties Plc appreciated by N1.00 to N17.00 per share from N18.00 per share, FrieslandCampina Wamco Nigeria Plc improved by 55 Kobo to N99.55 per unit from N99.00 per unit, and Food Concepts Plc increased by 5 Kobo to N2.70 per share from N2.65 per share.
However, there was a price loser, MRS Oil, which dipped by N21.75 to N195.75 per unit from N217.50 per unit.
During the final session of the week, the value of securities jumped 75.2 per cent to N41.3 million from N23.6 million units, and the number of deals expanded by 62.9 per cent to 44 deals from 27 deals, while the volume of securities declined marginally by 0.9 per cent to 447,403 units from 451,522 units.
At the close of trades, Great Nigeria Insurance (GNI) Plc was the most traded stock by volume (year-to-date) with 3.4 billion units worth N8.4 billion, trailed by Resourcery Plc with 1.1 billion units valued at N415.7 million, and Infrastructure Guarantee Credit Plc with 400 million units traded for N1.2 billion.
GNI was also the most active stock by value (year-to-date) with 3.4 billion units sold for N8.4 billion, followed by CSCS Plc with 59.6 million units transacted for N4.0 billion, and Okitipupa Plc with 27.8 million units exchanged for N1.9 billion.
Economy
Naira Slips to N1,358/$1 as FX Reserves, Policy Uncertainty Concerns
By Adedapo Adesanya
It was not a good day for the Nigerian Naira in the currency market on Friday, April 24, as its value depreciated against the major foreign currencies at the close of transactions.
In the Nigerian Autonomous Foreign Exchange Market (NAFEX), it lost N4.53 or 0.33 per cent against the United States Dollar yesterday to trade at N1,358.44/$1, in contrast to the N1,353.91/$1 it was exchanged on Thursday.
Equally, the domestic currency slipped against the Pound Sterling in the official market during the session by N8.14 to close at N1,834.02/£1, compared with the previous rate of N1,825.88/£1 and dropped N8.01 against the Euro to sell at N1,590.73/€1 versus N1,582.72/€1.
Also, the Naira depreciated against the US Dollar at the GTBank FX desk on Friday by N4 to quote at N1,370/$1 compared with the previous session’s N1,366/$1, and at the parallel market, it depleted by N5 to settle at N1,380/$1 versus the preceding day’s N1,375/$1.
Data published by the Central Bank of Nigeria (CBN) indicated that NFEM interbank turnover surged to N43.562 million across 68 deals, up from N28.117 million the previous day.
Despite the CBN’s reassurance that the recent drop in external reserves is not worrisome, the market remains unsettled by persistent concerns over liquidity constraints, policy transparency, and weakening confidence in Nigeria’s FX market as gross reserves continue to decline to $48.4 billion.
The outlook for the Dollar appears supported by broader macro risks, including elevated oil prices tied to the tanker traffic disruptions in the Strait of Hormuz and a continued US-Iran standoff over ceasefire negotiations.
A look at the digital currency market showed that investors are sitting on the edge as the US Dollar rebounded amid geopolitical and inflation risks despite continued inflows into US spot bitcoin Exchange Traded Funds (ETFs).
Solana (SOL) rose by 1.2 per cent to sell $86.45, Cardano (ADA) appreciated by 1.1 per cent to $0.2517, Dogecoin (DOGE) grew by 0.9 per cent to $0.0989, Ripple (XRP) improved by 0.3 per cent to $1.43, Ethereum (ETH) soared by 0.2 per cent to $2,316.83, and Binance Coin (BNB) chalked up 0.1 per cent to sell for $637.44.
However, TRON (TRX) depreciated by 1.3 per cent to $0.3235, and Bitcoin (BTC) lost 0.2 per cent to close at $77,562.27, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 each.
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