Markets
Keep an eye on these stocks as November comes to a close
Stocks to watch this week, are drawn from the top gainers and losers of the prior week, as well as companies having corporate actions.
Stocks to watch this week, are drawn from the top gainers and losers of the prior week, as well as companies having corporate actions.
Stocks to watch is not a Buy/Sell/Hold list.
Prestige Assurance Plc
Prestige Assurance has the number one spot on our watchlist, by virtue of being the best performing stock last week. The stock gained 41%, opening at N0.56 and closing at N0.79, up N0.23.
Investors could decide to sell down their holdings, in a bid to cash out profits. This could lead to a correction in the stock’s price.
Ikeja Hotels Plc
Ikeja Hotels Plc has a spot on our watchlist by virtue of being the worst performing stock last week, shedding 18.54%. The stock could witness further downside this week, depending on how negative market sentiments are.
Consolidated Hallmark Insurance Plc
Consolidated Hallmark Insurance has a spot on our watchlist this week, by virtue of an Extraordinary General Meeting (EGM) billed to hold on the 28th of this month.
Main item on the agenda is to obtain shareholders’ approval for a capital raise through a private placement. In light of industry regulator, NAICOM’s decision to cancel the tier-based recapitalisation programme, it remains to be seen if the company will go ahead with the move.
RT Briscoe Plc
RT Briscoe has a spot on our watchlist by virtue of holding its annual general meeting this week. The meeting is bound to be filled with fireworks, as a result of the company’s poor performance in the last few years.
Investors will be keeping an eye on this stock, as management would be expected to present strategies to turn the company around.
Cement Company of Northern Nigeria Plc
Cement Company of Northern Nigeria (CCNN) Plc has a spot on our watchlist by virtue of a Court Ordered Meeting (COM) holding this week. The company will be merging with Kalambaina Cement.
Diamond Bank Plc
Diamond Bank Plc earns a spot on our watchlist by virtue of a pending 9M 2018 investor conference call, which was postponed. The company is yet to give a new date.
Stock Market
DANGOTE CEMENT, GUINNESS drops lower, as investors lose N75.07 billion
Nigerian bourse recorded its second trading loss for the week.
The Nigerian Stock Exchange on Tuesday closed bearish. The All Share Index dropped by 0.58% to close at 24,883.70 basis points as against -0.06% drop recorded on Monday.
Its Year-to-Date (YTD) returns currently stands at -7.30%. Nigerian bourse’s market capitalization presently stands at N12,981 trillion. Investors’ losses recorded today stood at N75.07 billion.
Trading volume turnover closed positive as volume moved up by +17.84% as against +4.90% uptick recorded in the previous session. ACCESS, FIDELITYBK, and GUARANTY were the most active to boost market turnover.
Market breadth closed negative as CADBURY led 16 Gainers as against 17 Losers topped by PRESTIGE.
Top gainers
- CADBURY up 6.82% to close at N7.05
- NB up 6.25% to close at N34
- ARDOVA up 4.94% to close at N12.75
- VALUEFUND up 1.37% to close at N115.05
- GUARANTY up 1.02% to close at N24.8
Top losers
- IKEJAHOTEL down 9.82% to close at N1.01
- MANSARD down 8.23% to close at N1.45
- DANGCEM down 4.09% to close at N136
- GUINNESS down 3.33% to close at N14.5
- UCAP down 3.09% to close at N3.14
Outlook
Nigerian bourse recorded its second trading loss for the week, triggered by high selling pressures notable in DANGCEM and GUINNESS.
Nairametrics, however, recommend you seek the counsel of a certified financial advisor when buying stocks.
Commodities
Gold price loses $80 following Russia’s COVID-19 vaccine approval
This marks gold’s steepest daily decline in nearly five months.
Gold futures has lost about 5% or $80 in less than four hours, at the London trading session this afternoon.
Gold futures fell as low as $1,950 per ounce, $80 differential from its opening price of $2,030
This marks gold’s steepest daily decline in nearly five months, even as global stocks went bullish following news that Russia’s COVID-19 vaccine has obtained regulatory approval.
READ MORE: Cocoa prices melt lower as COVID-19 weakens demand
The COVID-19 vaccine approval by Russia was met with some skepticism by experts.
More details shortly…
Debt Securities
DMO offers N150 billion worth of FGN Bonds for subscription
FGN Bonds are backed by the full faith and credit of the Federal Government of Nigeria.
The Federal Government on Tuesday, 11th August 2020, through the Debt Management Office (DMO), offered for subscription Federal Government Bonds (FGN Bonds) valued at N150 billion.
The FGN bonds are listed in four tranches that include:
- N25,000,000,000 – 12.50% FGN JAN 2026 (10-Yr Re-opening)
- N40,000,000,000 – 12.50% FGN MAR 2035 (15-Yr Re-opening)
- N45,000,000,000 – 9.80% FGN JUL 2045 (25-Yr Re-opening)
- N40,000,000,000 – 12.98% FGN MAR 2050 (30-Yr Re-opening)*
READ: UBA reports a 13.3% profit increase in audited FY 2019 financial statement
Auction Date: August 19, 2020
Settlement Date: August 21, 2020
Summary Of The Offer
Issuer: Federal Government of Nigeria (“FGN”)
Units Of Sale: N1,000 per unit subject to a minimum subscription of N10,000 and in multiples of N1,000 thereafter.
Interest rate: For Re-openings of previously issued bonds, (where the coupon is already set), successful bidders will pay a price corresponding to the yield-to-maturity bid that clears the volume being auctioned, plus accrued interest from the original issue date.
READ ALSO: Nigeria’s Eurobond yield hit 12.8% as investors flee emerging markets
Interest payment: Payable semi-annually.
Redemption: Bullet repayment on the maturity date.
Status:
- Qualifies as securities in which trustees can invest under the Trustee Investment Act
- Qualifies as Government securities within the meaning of Company Income Tax Act (“CITA”) and Personal Income Tax Act (“PITA”) for Tax Exemption for Pension Funds amongst other investors
- Listed on the Nigerian Stock Exchange
- All FGN Bonds qualify as liquid assets for liquidity ratio calculation for banks
Security: FGN Bonds are backed by the full faith and credit of the Federal Government of Nigeria and are charged upon the general assets of Nigeria
Understanding Bonds: A bond is a fixed income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental).
A bond could be thought of as an I.O.U. between the lender and the borrower that includes the details of the loan and its payments.
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A bond has an end date when the principal of the loan is due to be paid to the bond owner and usually includes the terms for variable or fixed interest payments that will be made by the borrower.
DANGOTE CEMENT, GUINNESS drops lower, as investors lose N75.07 billion
WHO gives condition for approving Russia’s COVID-19 vaccine as the vaccine gets a name
A new MSME Academy is now available for all Africa’s Micro, Small and Medium Enterprises in Nigeria
Gold price loses $80 following Russia’s COVID-19 vaccine approval
DMO offers N150 billion worth of FGN Bonds for subscription
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