Economy
Stocks Attract N99bn in One Week As Other Investments Offer Low Returns
By Dipo Olowookere
Investors in Nigeria turned their attention to the stock market last week, not minding the high risk involved in the asset class, as the low-risk investments, especially in the fixed-income space, are offering low returns.
Treasury bills rates are not encouraging at the moment to traders because of their single-digit interest, and for investors, who want yields close to inflation at 22.79 per cent, equities are the better option to consider.
Last week, the Nigerian Exchange (NGX) Limited posted the sale of 4.182 billion shares worth N99.048 billion in 41,446 deals, in contrast to the 5.246 billion shares worth N63.417 billion traded in 57,234 deals in the preceding week.
It was observed that stocks in the financial services sector were the toasts of the market participants, as they printed a turnover of 3.015 billion units valued at N36.762 billion in 20,079 deals, contributing 72.08 per cent and 37.12 per cent to the total trading volume and value, respectively.
Energy equities, especially in the downstream, recorded the sale of 311.172 million units valued at N2.128 billion in 3,473 deals, as conglomerates shares sold 180.518 million units worth N787.392 million in 2,111 deals.
UBA, FCMB and Japaul were the most actives stocks in the five-day trading week, accounting for 1.727 billion units worth N18.239 billion traded in 4,707 deals, contributing 41.29 per cent and 18.41 per cent to the total trading volume and value apiece.
The price movement chart showed that 73 equities were on the gainers’ chart versus 29 equities in the previous week, 19 shares were on the losers’ table versus 77 shares in the previous week, and 64 stocks remained unchanged versus 50 stocks a week earlier.
John Holt gained 58.01 per cent to finish at N2.86, Chellarams rose by 32.39 per cent to N2.33, Sterling Holdings improved by 27.33 per cent to N3.96, Ecobank jumped by 27.17 per cent to N16.15, and CWG moved up by 26.38 per cent to N2.97.
Conversely, FTN Cocoa shed 29.08 per cent to N2.00, Courteville dropped 28.09 per cent to 64 Kobo, Abbey Mortgage Bank depleted by 26.32 per cent to N1.12, Linkage Assurance shrank by 20.00 per cent to 64 Kobo, and Japaul slipped by 15.15 per cent to 84 Kobo.
Business Post reports that the All-Share Index (ASI) and the market capitalisation appreciated last by 3.89 per cent each to 65,003.39 points and N35.395 trillion, respectively, as all other indices finished higher except ASeM, which depreciated by 0.07 per cent.
By Adedapo Adesanya
Three securities lifted the NASD Over-the-Counter (OTC) Securities Exchange by 1.38 per cent on Friday, July 3, with the NASD Security Index (NSI) up by 58.80 points to 4,307.26 points from 4,248.46 points, and the market capitalisation closing higher by N35.30 billion to N2.585 trillion from N2.549 trillion.
The price gainers were led by 11 Plc, which expanded by N20.05 to close at N220.55 per share compared with the previous day’s N200.50 per share, FrieslandCampina Wamco Nigeria Plc increased by N5.36 to N151.82 per unit from N146.46 per unit, and Central Securities Clearing System (CSCS) Plc appreciated by N3.52 to N90.74 per share from N87.22 per share.
Yesterday, the value of transactions surged by 1,431.2 per cent to N160.1 million from the preceding session’s N10.5 million, and the volume of trades rose by 303.7 per cent to 1.8 million units from 440,653 units, while the number of deals decreased by 34.4 per cent to 21 deals from 32 deals.
Great Nigeria Insurance (GNI) Plc was the most traded stock by value on a year-to-date basis, with 3.4 billion units sold for N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units worth N6.5 billion, and CSCS Plc with 70.7 million units transacted for N4.9 billion.
GNI Plc was also the most traded stock by volume on a year-to-date basis, with 3.4 billion units valued at N8.4 billion, followed by Infracredit Plc with 2.3 billion units exchanged for N6.5 billion, and Resourcery Plc with 1.1 billion units traded for N415.7 million.
By Dipo Olowookere
The losing streak on the Nigerian Exchange (NGX) Limited was halted on Friday after the bourse closed higher by 2.19 per cent at the close of trading activities.
The gains reported by Nigerian stocks were buoyed by renewed bargain-hunting by investors, which resulted in all the key sectors of Customs Street ended in the green territory.
The banking space rose by 2.78 per cent, the insurance counter appreciated by 1.26 per cent, the energy segment expanded by 0.36 per cent, the consumer goods index chalked up 0.06 per cent, and the industrial goods sector grew by 0.05 per cent.
Consequently, the All-Share Index (ASI) went up by 4,918.37 points to 229,240.34 points from 224,321.97 points, and the market capitalisation increased by N3.156 trillion to N147.103 trillion from N143.947 trillion.
Investor sentiment was bullish after 34 stocks ended on the price gainers’ chart and 18 stocks finished on the losers’ log, representing a positive market breadth index.
The quintet of The Initiates, Universal Insurance, DAAR Communications, Omatek, and Airtel Africa surged by 10.00 per cent to sell for N25.85, 88 Kobo, N1.65, N1.76, and N5,274.00, respectively.
On the flip side, International Energy Insurance lost 9.96 per cent to trade at N4.70, Meyer shed 9.95 per cent to close at N18.55, Veritas Kapital dropped 5.07 per cent to finish at N1.31, Fidelity Bank slipped by 2.17 per cent to N18.00, and Jaiz Bank crashed by 1.84 per cent to N28.12.
During the session, a total of 414.7 million equities worth N25.1 billion exchanged hands in 47,106 deals compared with the 855.4 million equities valued at N28.4 billion transacted in the preceding day in 51,609 deals, implying a contraction in the trading volume, value, and number of deals by 51.52 per cent, 11.62 per cent, and 8.73 per cent, respectively.
By Adedapo Adesanya
The Naira closed flat against the United States Dollar at N1,370.19/$1 in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Friday, July 3.
However, it appreciated against the Pound Sterling in the same market segment by N2.29 to settle at N1,829.88/£1 compared with the previous day’s N1,832.17/£1, and marginally depreciated against the Euro by 4 Kobo to close at N1,568.32/€1 versus Thursday’s closing price of N1,568.28/€1.
At the parallel market, the Naira also traded flat against the US Dollar at N1,390/$1, and at the GTBank forex desk, it also maintained stability at N1,832/$1.
Market conditions improved shortly after the following minimal intervention by the Central Bank of Nigeria (CBN) through modest Dollar sales, which boosted liquidity and supported stronger trading activity.
Easing pressure came after half-year profit-taking tapered down, while continued stronger policy signals from the central bank add to near-term support.
Deals executed at the official market on Friday came in at $70.430 million across 82 interbank deals, from $85.517 million the previous day.
Meanwhile, the cryptocurrency market continued its recovery after June non-farm payrolls printed at 57,000, less than half the 113,000 consensus, sending the implied probability of a September Federal Reserve rate hike from 64 per cent to 54 per cent and dragging AI stocks sharply lower.
Weak labour data reduces inflationary pressure and, by extension, the Federal Reserve’s justification for holding rates elevated. That transmission mechanism is direct: lower rate-hike odds compress the opportunity cost of holding non-yielding assets like crypto.
Bitcoin regained the $62,000 mark after it rose by 1.3 per cent to $62,475.29.
Cardano (ADA) gained 6.6 per cent to trade at $0.1759, Ripple (XRP) appreciated by 3.5 per cent to $1.14, Ethereum (ETH) expanded by 2.4 per cent to $1,756.82, Dogecoin (DOGE) improved by 2.1 per cent to $0.0768, Solana (SOL) chalked up 1.8 per cent to $82.65, TRON (TRX) increased by 1.5 per cent to $0.3235, and Binance Coin (BNB) soared by 1.4 per cent to $569.12, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 apiece.
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