Economy
Weekly Investment in Stocks Drops as Investors Monitor Environment
By Dipo Olowookere
The decision of politicians to stir up the race to Aso Rock in 2023 very earlier in 2022 is already taking its toll on the stock market in Nigeria.
Last week, former Governor of Lagos State and National Leader of the ruling All Progressives Congress (APC), Mr Bola Tinubu, declared his interest to President Muhammadu Buhari to contest the nation’s highest political position next year.
After his open declaration at the Presidential Villa, others started to announce their interest in the same position and the race started to get interesting with some parts of the country rooting for Vice President Yemi Osinbajo, who is believed to be the political godson of Mr Tinubu.
For investors in the capital market, they never expected this to occupy the ecosystem in the first month of 2022. They had thought the race to Aso Rock would get heated up by the second or third quarter of the year.
With the development, some of them had to trade cautiously and this may have caused the decline in the weekly investment in stocks last week.
According to data obtained by Business Post, a total of 1.6 billion shares worth N32.7 billion were traded in 22,607 deals as against the 2.0 billion shares worth N59.0 billion transacted in 15,750 deals in the first week of the year, which only had four trading sessions.
A breakdown showed that financial stocks dominated the activity chart in the week with 731.3 million units valued at 6.5 billion traded in 10,822 deals, contributing 45.71 per cent and 19.92 per cent to the total trading volume and value respectively.
Conglomerate equities trailed with 403.7 million units worth N452.9 million in 1,537 deals, while consumer shares exchanged 314.8 million units worth N17.8 billion in 4,101 deals.
Transcorp, BUA Foods and Jaiz Bank were the most active stocks in the five-day trading week, with the sale of 775.7 million units valued at N16.6 billion executed in 2,644 deals, accounting for 48.49 per cent and 50.82 per cent of the total trading volume and value respectively.
A total of 33 equities appreciated in price during the week, lower than 40 equities in the previous week, while 35 equities depreciated in price, higher than 31 equities in the previous week, with 88 equities closing flat, lower than 84 equities recorded in the previous week.
Analysis indicated that BUA Foods was the biggest price riser as its value went up by 24.06 per cent to N66.00, followed by Transcorp, which gained 16.33 per cent to trade at N1.14.
Jaiz Bank grew by 15.25 per cent week-on-week to sell for 68 kobo, Fidson appreciated by 13.64 per cent to quote at N7.50, while Academy Press improved by 10.00 per cent to trade at 66 kobo.
On the reverse side, Sunu Assurances ended the week as the heaviest price loser after its equity price went down by 16.22 per cent to close at 31 kobo.
Mutual Benefits fell by 12.90 per cent to 27 kobo, Berger Paints dropped 9.94 per cent to N7.70, Northern Nigerian Flour Mills depreciated by 9.66 per cent to N6.55, while Custodian Investment decreased by 9.49 per cent to N7.15.
Despite the low trades, the All-Share Index and market capitalisation of the Nigerian Exchange (NGX) Limited appreciated by 1.37 per cent week-on-week to 44,454.67 points and N23.951 trillion respectively.
Similarly, all other indices finished higher with the exception of NGX CG, insurance, NGX AFR Bank Value, consumer goods and Lotus II indices, which depreciated by 0.79 per cent, 1.54 per cent, 0.07 per cent, 4.35 per cent and 1.34 per cent respectively, while the ASem, NGX Growth I and sovereign bond indices closed flat.
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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