Stock Market
NSE Postpones Implimentation Of “Index Circuit Breaker” Rule
The Nigerian Stock Exchange just postponed the Index Circuit Breaker rule that was supposed to commence December 1 to a yet to be announced future date. The rule also called “Trading Halts Due To Extraordinary Market Volatility” will give the Exchange powers to halt trading activities in the event of a sharp drop (up to 5%) in the value of the All Share Index. A 5% and above drop in the value of the All Share Index is thus considered a major volatility issue and will result in a temporal halt of trading.
The rule is being put in place to protect investors of losing value of their investments especially in a sell off that arises out of market sentiments and other issues rather than fundamentals. Here is the press release
NOTICE OF DEFERRAL OF EFFECTIVE DATE OF “ARTICLE 170: TRADING HALTS DUE TO EXTRAORDINARY MARKET VOLATILITY (INDEX CIRCUIT BREAKER RULE)”
NOTICE IS HEREBY GIVEN THAT, the effective date of Article 170 of the “Rules and Regulations Governing Dealing Members”, titled “Trading Halts Due to Extraordinary Market Volatility”, has been deferred. Article 170 will not become effective on 1 December 2014 as previously announced.
The Exchange will announce the effective date of Article 170 on a later date.
The text of the Rule is set out below:
Article 170: Trading Halts Due to Extraordinary Market Volatility (Index Circuit Breakers)
(a) The Exchange shall halt trading in all stocks and shall not reopen for the time period specified in this Rule if there is a Significant Market move in either direction.(b) For purposes of this Rule, a Significant Market move means a 5% move in price of the All Share Index between 10:15a.m. and 13:45p.m. on a trading day as compared to the closing price of the All Share Index for the immediately preceding trading day.
(c) Halts in Trading: if a Market move occurs after 10.15 a.m. and any time up to and including 13.45 p.m. the Exchange shall halt trading in all stocks for 30 minutes. The Exchange shall not halt trading if a Significant Market move occurs after 13.45 p.m. The Exchange shall halt and reopen trading based on a Significant Market move only once per trading day.
(d) If, following the reopening of trading after a Significant Market move halt, the All Share Index moves further by a minimum of 5% below its closing value on the immediately preceding trading day, during any trading day The Exchange will halt all trading for the remainder of the day. The last traded price in any security prior to the closing of the market shall be deemed the closing price in such security for the day.
(e) Re-opening of Trading: the re-opening of trading following a trading halt shall follow the procedures as may be set forth by The Exchange.
(f) Nothing in this Rule shall be construed to limit the ability of the Exchange to otherwise halt, suspend, or pause the trading in any stock or stocks traded on the Exchange pursuant to any other Exchange rule or policy.
Stock Market
Royal Rumble at first trading week of Q3 2020, ASI down 1.99% WoW
Trading in the top three equities accounted for 275.099 million shares worth N2.818 billion in 3,497 deals.
The Nigerian stock market ended the week on a bearish note, as the All Share Index (ASI) and Market Capitalization both depreciated by 1.99% to close the week at 24,336.12 and N12.695 trillion respectively.
A total turnover of 961.833 million shares worth N9.181 billion in 20,058 deals were traded this week by investors on the floor of the Exchange, in contrast to a total of 739.375 million shares valued at N8.563 billion that exchanged hands last week in 17,248 deals.
The Financial Services industry (measured by volume) led the activity chart, with 618.714 million shares valued at N4.338 billion traded in 9,669 deals, thus contributing 64.33% and 47.25% to the total equity turnover volume and value respectively.
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The Consumer Goods industry followed with 91.119 million shares worth N2.227 billion in 3,703 deals. In the third place was the Conglomerates industry, with a turnover of 60.640 million shares worth N62.779 million in 556 deals.
Trading in the top three equities namely FBN Holdings Plc, Guaranty Trust Bank Plc, and United Bank for Africa Plc (measured by volume) accounted for 275.099 million shares worth N2.818 billion in 3,497 deals, contributing 28.60% and 30.69% to the total equity turnover volume and value respectively.
13 equities appreciated in price during the week, lower than 18 equities in the previous week. 59 equities depreciated in price, higher than 43 equities in the previous week, while 91 equities remained unchanged, lower than 102 equities recorded in the previous week.
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Top gainers
OKOMU OIL PALM PLC. up 20.94% to close at N77.40
ROYAL EXCHANGE PLC. up 13.04% to close at N0.26
PRESTIGE ASSURANCE PLC up 10.64% to close at N0.52
ACADEMY PRESS PLC. Up 0.30 0.02 to close at 6.67% N0.32
VITAFOAM NIG PLC. up 5.30 0.29 to close at 5.47% N5.59
REGENCY ASSURANCE PLC up 5.00% to close at N0.21
NESTLE NIGERIA PLC. up 4.73% to close at N1256.80
WAPIC INSURANCE PLC up 3.13% to close at N0.33
NEM INSURANCE PLC up 2.50% to close at N2.05
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Top Losers
NIGERIAN AVIATION HANDLING COMPANY Plc. down 24.24% to close at N2.00
LEARN AFRICA Plc. down 21.48% to close at 1.06
UNILEVER NIGERIA Plc. down 18.82% to close at N13.80
GLAXO SMITHKLINE CONSUMER NIG. PLC. down to close at N4.95
UNION BANK NIG. Plc. down 15.08% 6.30 -0.95 -to close at N5.35
NASCON ALLIED INDUSTRIES PLC down 13.79% to close at N10.00
AIICO INSURANCE PLC. down 13.13% to close at N0.86
JAPAUL OIL & MARITIME SERVICES PLC down 12.00% to close at N0.22
STERLING BANK PLC. down 10.85% to close at N1.15
ARDOVA PLC down 10.73% to close at N11.65
Stock Market
Consumer goods index turns Nigerian Bourse bearish, amidst poor market liquidity
All indexes closed in the negative terrain with the exception of the Banking Index.
Nigerian stock market ended the week trading session on a bearish note, extending its previous day loss. The All-Share Index and Market Capitalization down by 0.16% to 24,336.12 points and N12.695billion respectively. Thus, YTD performance stands at -9.35%.
Similarly, market turnover finished lower compared to the previous trading session. Total volume and value of stocks traded decreased by 19.88% and 17.59% to 144.31 million units and N1.52 billion respectively.
GUARANTY was the most traded stock by volume at 29.1million units, followed by ZENITHBANK, with 27.2 million units of trades.
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Market sentiment, as measured by market breadth, was negative as 27 tickers declined, relative to 9 gainers.
REDSTAREX and UACN were the top losers of the day with 10.00% apiece price decline, while IKEJAHOTEL and WEMABANK topped the gainers with 9.68% and 5.77% appreciation in share value.
Performance across sectors mirrored the broad index. All indexes closed in the negative terrain with the exception of the Banking Index, which gained 0.32%. The Consumer Goods Index (1.07%) was the biggest loser of the day due to losses recorded in UACN (-10.00%) and NB (-5.68%).
The Insurance, Oil and Gas and Industrial Goods indexes trailed to shed 0.61%, 0.13% and 0.04% respectively, due to price depreciation in AIICO (-3.37%), ARDOVA (-1.27%) and WAPCO (-0.96%)
Top gainers
IKEJAHOTEL up 9.68% to trade at N1.02,WEMABANK up 5.77% to trade at N0.55,ZENITHBANK up 3.04% to trade at N15.25,FCMB up 2.27% to trade at N1.8,GUARANTY up 0.48% to trade at N20.8
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Top Losers
UACN down 10.00% to close at N7.2 REDSTAREX down 10.00% to close at N2.97, JBERGER down 7.56% to close at N18.35NB down 5.68% to close at N34.05, NASCON down 1.96% to close at N10
Outlook
Sell-offs in UACN, JBERGER and NB dragged the Nigerian bourse down coupled with thin liquidity in the Nigerian Stock Market. Nairametrics envisages cautious buying of Nigerian stocks, as Institutional investors remain on the sidelines.
Stock Market
Top 10 stockbrokers trade a total of N597.4 billion in H1 2020 despite COVID-19 Pandemic
Despite the economic impact of the Covid-19 pandemic, the top ten stockbroking firms in Nigeria traded a total of N597.4 billion worth of shares between January and June 2020.
The top ten stockbroking firms in Nigeria according to the Broker Performance Report released by the Nigerian Stock Exchange (NSE), traded a total of N597.4 billion and a total volume of 39.6 billion units of shares over the period of January to June.
The report also revealed that the top ten stockbroking firms accounted for 59.31% of the total value of shares traded year to date and 47.22% of the total volume of shares traded on the NSE in the same period.
READ MORE: Top 10 Stockbrokers trade N391.9 billion in Q1 2020 despite bearish market
Top 10 Stockbrokers by Value
- Stanbic IBTC Stockbrokers Ltd.: Top on the list with the most value of stocks traded is Stanbic IBTC Stockbrokers Ltd with a value of N128.3 billion, accounting for 12.73% of the total value of shares traded during the period.
- EFG Hermes Nig. Ltd.: Next on the list is EFG Hermes having transactions to the value of N118.5 billion, thereby representing 11.77% of the total value of shares traded.
- Rencap Securities Nigeria Ltd.: Rencap took the third spot with the value of its transactions to the tune of N82.2 billion, making an 8.16% contribution to the total value of shares traded over the course of the period.
- CSL Stockbrokers Ltd.: The total value of transactions made by CSL Stockbrokers stood at N63.5 billion and this accounted for 6.30% of the total value of shares traded in the period.
- Cardinal Stone Securities Ltd.: Cardinal Stone Securities transacted in shares valued at N50.5 billion as well, representing a 5.02% of the total traded shares during the period under review.
READ MORE: NSE: Bears reign continues as ASI shed 4.91% on Tuesday
Other stockbroking firms that made the top ten list include Chapel Hill Denham Securities (N34.2 billion), Tellimer Capital Limited (N33.5 billion), Cordros Securities (N31.4 billion), Meristem Stockbrokers Limited (N28.9 billion) and FBN Quest Securities Ltd (N26.2 billion.)
Top 10 Stockbrokers by Volume of shares traded
- Cardinal Stone Securities Ltd.: Cardinal Stone came tops with trades of 6.2 billion units of shares which represents 7.37% of the total units traded in the first half of the year.
- EFG Hermes Nig. Ltd.: Next on the list was EFG Hermes which traded 6.1 billion units of shares, thereby accounting for 7.28% of the total shares traded in the period under review.
- Morgan Capital securities Ltd.: Third on the ranking is Morgan Capital which traded 5.7 billion units of shares in the period from January to June 2020 and this came to a total contribution of 6.76%.
- Stanbic IBTC Stockbrokers Ltd.: Stanbic IBTC Stockbrokers traded 4.7 billion units of shares over the course of the period and this contributed 5.57% to the overall volume of shares traded in the period.
- Rencap Securities Nigeria Ltd.: Rencap traded 4.5 billion units of shares to stand in the fifth position, accounting for 5.34% of the total volume of shares.
Other stockbrokers that made the list include: CSL Stockbrokers Ltd (3.9 billion units), Meristem Stockbrokers Ltd (2.9 billion units), Chapel Hill Denham Securities Ltd (1.9 billion units), Coronation Securities Ltd (1.8 billion units), and APEL Asset Ltd (1.8 billion units.)
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