Markets
Two insurance stocks to monitor this week
Stocks to watch are picked from the top gainers and losers of the prior week, as well as those having corporate actions.
Stocks to watch is not a Buy/Sell/Hold recommendation.
NEM Insurance Plc
NEM Insurance Plc tops our watchlist by virtue of the stock being the best performing last week. The stock gained 43.35% to close at N2.48, up N0.75 or 43.35%.
Investors that got in last week, could decide to sell off their holdings, depending on market sentiments.
Resort Savings and Loans Plc
Resort Savings and Loans Plc was the worst performing stock last week, hence a spot on Nairametrics’ watchlist. The stock shed 29.73% closing at N0.26.
The stock could decline further this week as the company currently has poor fundamentals, while investors decide to sell down their stake after a prolonged suspension.
Northern Nigeria Flour Mills
Northern Nigeria Flour Mills has a spot on our watchlist by virtue of the stock hitting a 5-year low last week. The stock could decline further, depending on market sentiments.
Guinness Nigeria Plc
Guinness Nigeria Plc has a spot on our watchlist, by virtue of news that broke late Friday. (What new exactly?) While the company has issued a press statement clarifying the situation, investors could react negatively this week. We expect a more detailed statement sent to the NSE this week.
Sovereign Trust Insurance
Sovereign Trust Insurance takes the last spot this week, by virtue of an application submitted last week to the Nigerian Stock Exchange (NSE).
The firm submitted an application for the listing of a rights issue of 4,170,411,648 ordinary shares of N0.50 each at N0.50 per share, on the basis of 1 new share for every 2 ordinary shares held. The qualification date for the rights issue was Tuesday, 15 January 2019.
The firm thus intends to raise N 2.08 billion.
While the stock gained 30% last week, it could decline as investors sell off, due to a potential dilution of their shareholdings. Sovereign Trust Insurance will have 12.4 billion outstanding shares after the offer.
Companies
NB Plc to raise additional N20 billion from its N100 billion Commercial Paper
Nigerian Breweries has announced the continuation of its N100 billion Commercial Paper (CP) Issuance Programme.
Nigerian Breweries has announced the continuation of its N100 billion Commercial Paper (CP) Issuance Programme in a bid to raise up to N20 billion to support its short term funding needs. The company has launched Series 9 and 10 of the programme for this purpose.
This information was disclosed in a notification signed by the Company’s Secretary, Uaboi G. Agbebaku, and sent to the Nigerian Stock Exchange.
The notification reads;
“[Nigerian Breweries Plc] is pleased to inform the Nigerian Stock Exchange and the investing public of the continuation of its “CP” (Commercial Paper) programme with the launch of Series 9 and 10 of the programme.
“Series 9 of the Commercial Paper programme would be for a tenor of 180 days, while Series 10 would be for 270 days. However, the launch of the CP opens today 23rd October 2020.”
(READ MORE:Nigerian Breweries stock up by 58% since August )
What you should know
According to data obtained from Financial Market Dealers Quote (FMDQ), Nigerian Breweries since the start of the year has raised up to N90.12 billion since the start of the year.
- N52.76 billion was raised from Series 6 between February 12 to November 6, 2020.
- N13.03 billion was raised from Series 7 from April 15 to October 14, 2020.
- N24.33 billion was raised from Series 8 from April 15 to January 8, 2021.
- The recent issuance of the Series 9 and 10 CP will bring the total funds raised to N110.12 billion.
Why it matters
- The CP will help the company navigate through the recent impact of COVID-19 and other trade disruptions.
- The programme will strengthen the balance sheet of the company, and enable the brewer to execute its plans while delivering value to customers and creating wealth for shareholders,
- In like manner, the CP programme is expected to provide opportunities for non-equity investors to invest in the company and support its cost management initiatives.
Market Views
GTBank, Dangote Cement keep Bulls roaring high
Market breadth closed positive as NASCON led 20 Gainers as against 6 Losers topped by NNFM at the end of today’s session.
Nigerian stock market ended its last trading session on an impressive note. The All Share Index gained 0.47% to close at 28,697.06 points as against +0.40% appreciation recorded on Thursday.
Nigerian Stock Exchange market capitalization now stands at N14.99 Trillion. Its Year-to-Date (YTD) returns currently stands at +6.91%.
- However, the Nigerian bourse trading turnover fell short of expectation as volume moved dipped by 9.11% as against -4.67% downtick recorded on Thursday. ACCESS, GUARANTY, and UBA were the most active to boost market turnover.
- AFRINSURE leads the list of active stocks that recorded an impressive volume spike at the end of today’s session.
- Market breadth closed positive as NASCON led 20 Gainers as against 6 Losers topped by NNFM at the end of today’s session – an improved performance when compared with the previous outlook.
Top gainers
- NASCON up 10.00% to close at N14.3
- PZ up 7.32% to close at N4.4
- ZENITHBANK up 1.69% to close at N21
- GUARANTY up 1.50% to close at N30.45
- DANGCEM up 0.67% to close at N151
Top losers
- NNFM down 9.89% to close at N4.19
- NPFMCRFBK down 4.29% to close at N1.34
- HONYFLOUR down 4.21% to close at N0.91
- UNIONDAC down 3.70% to close at N0.26
- VITAFOAM down 3.23% to close at N6
Outlook
Nigerian bourse continued its bullish run amid a shutdown of economic activities at Nigeria’s economic nerve center Lagos and Rivers amid ongoing curfew put in place in order to calm hostilities prevalent in some areas.
- Bulls seem to be rallying high amid soaring crude oil prices, and high buying pressure noticed in some Nigerian blue-chip stocks like Dangote Cement and GTBank.
- However, Nairametrics expects you to seek the advice of a certified stockbroker when choosing stocks to buy, as some of these stocks exhibit cyclic returns in principle.
Cryptocurrency
China bans people selling Crypto
China has placed a ban on entities from issuing Crypto
The world’s second-largest economy, China just recently published a draft law that seems to ban entities from issuing digital cryptos.
This could be the first time the word ‘Crypto’ has appeared in any of China’s formal laws.
The new draft of legal comments cited on Fxstreet, clearly states that no individual or unit can produce or sell tokens to replace CNY in circulation in the market.
The violation of this law will have severe consequences according to the draft which reads:
“For anyone that violates such regulation, the PBoC will halt such activities and forfeit any proceed from the making and selling of yuan-backed digital tokens and issue a fine that is up to five times of the involved proceeds.”
COVID-19 Update in Nigeria
Update: Suspected hoodlums looting Palms Mall, Shoprite in Ilorin
#EndSARS: Coca-Cola donates N20 million to cover medical bills of victims
Lagos to support owners of looted, vandalised stores
NB Plc to raise additional N20 billion from its N100 billion Commercial Paper
COVID-19 Update in Nigeria
Daily Parallel Market Exchange Rate – ₦461/$1
Covid-19: US FDA grants full approval to remdesivir as first vaccine to treat coronavirus
CBN reviews appointment requirements for CCOs in Banks
#ENDSARS: Insurance firms brace up for claims
