This week was a bearish one on the Nigerian Stock Exchange as the All Share Index closed at 29,740.41 basis points, down 1.15%.
Year to date, the index is down 5.38%.
30 equities appreciated in price during the week, lower than 33 in the previous week. 40 equities depreciated in price, higher than 33 equities of the previous week, while 97 equities remained unchanged, lower than 101 equities recorded in the preceding week.
Dangote Flour Mills Plc
Dangote Flour Mills was the best performing stock on the Nigerian Stock Exchange this week. The stock appreciated by 45.33%, opening at N10.70 and closing at N15.55, up N4.85. Dangote Flour has gained 127% year to date.
The company this week informed investors that it was considering a N130 billion buy out from Olam International Limited.
Japaul Oil and Maritime Services Plc
Japaul Oil and Maritime Services opened at N0.20 and closed at N0.28, up N0.08 or 40%. Year to date, the stock is up 33.33%.
Cutix Plc gained 28.05% this week. The stock opened at N1.60 and closed at N2.05, up N0.45. Year to date, the stock is up 25%.
Neimeth International Pharmaceuticals
Neimeth International Pharmaceuticals opened the week at N0.56, and closed at N0.67, up N0.11 or 19.64%. Year to date, the stock is down 14.1%.
Royal Exchange Plc
Royal Exchange Plc gained 18.18% this week. The stock opened at N0.22 and closed at N0.26, up N0.04. Year to date, the stock is up 18.18%.
First Aluminum Nigeria Plc
First Aluminum Nigeria Plc opened trading this week at N0.41 and closed at N0.48, up N0.07 or 17.07%. Year to date, the stock is up 33.33%.
Chams Plc gained 16.67% this week and has held a spot in the top 10 gainers list for three consecutive weeks. The stock opened at N0.36 and closed at N0.42, up N0.06. Year to date, the stock is up 110%.
Vitafoam Nigeria Plc
Vitafoam Nigeria Plc opened the week at N3.50 and closed at N3.89, up N0.39 or 11.14%. Year to date, the stock is down 11.59%.
This week, the company released its half year 2018/2019 results. Revenue increased from N10.7 billion in 2018 to N12.9 billion in 2019. Profit before tax jumped from N486 million in 2018 to N1.1 billion in 2019. Profit after tax also rose from N309 million in 2018 to N774 million in 2019.
Oando Plc gained 10.42% this week. The stock opened at N4.80 and closed at N5.30, up N0.50. Year to date, the stock is up 6%.
The company released its results for the first quarter ended March 2019, this week. Revenue rose from N150 billion in 2018 to N160 billion in 2019. Profit before tax rose from N6.5 billion in 2018 to N8.7 billion in 2019. Profit after tax rose from N4.1 billion in 2018 to N4.6 billion in 2019.
Wema Bank Plc
Wema Bank Plc rounds up the top 10 gainers for the week, appreciating by 10.14%. The stock opened at N0.69 and closed at N0.76, up N0.09. Year to date, the stock is up 20.63%.
This week, the bank released its results for the first quarter ended March 2019. Net interest income increased from N4.3 billion in 2018 to N5.5 billion in 2019. Profit before tax rose from N883 million in 2018 to N1.3 billion in 2019. Profit after tax also increased from N764 million in 2018 to N1.1 billion in 2019.
Guinness Nigeria Plc
Guinness Nigeria Plc was the worst performing stock this week. The stock shed 19%, opening at N60 and closing at N48.60, down N11.40.
Year to date, the stock is down 32.5% and is at a 10-year low.
This week, it released its results for the nine months ended March 2019. Revenue fell from N105 billion in 2018 to N101 billion in 2019. Profit before tax fell from N7.8 billion in 2018 to N6.2 billion in 2019. Profit after tax also declined from N5 billion in 2018 to N4.2 billion in 2019.
May and Baker Plc
May and Baker Plc opened the week at N2.60 and closed at N2.25, down N0.35 or 13.46%. Year to date, the stock is down 8.16%.
International Breweries Plc
International Breweries Plc shed 13.04% this week. The stock opened at N23.00 and closed at N20.00, down N3.00. Year to date, the stock is down 34.43% and is at its lowest price so far this year.
Julius Berger Plc
Construction giant, Julius Berger Plc, opened the week at N25 and closed at N22.50, down N2.50 or 10%. Year to date, the stock is up 11.94%.
Julius Berger released its results for the first quarter ended in March 2019, this week. Revenue increased from N35.3 billion in 2018 to N62.9 billion in 2019. Profit before tax, however, fell from N2.2 billion in 2018 to N1.2 billion in 2019. Profit after tax also dropped from N1.4 billion in 2018 to N485 million in 2019.
Okomu Oil Palm Company Plc
Okomu Oil also declined by 10% this week. The stock opened at N80.00 and closed at N72.00, down N8.00. Year to date, the stock is down 5.51%.
Union Dicon Salt Plc
Union Dicon Salt Plc opened the week at N13.45 and closed at N12.15, down N1.30 or 9.67%. Year to date, the stock is down 9.67%.
Premier Paints Plc
Premier paints declined by 9.62% this week. The stock opened at N10.40 and closed at N9.40, down N1.00. Year to date, the stock is down 9.62%.
Conoil Plc opened the week at N23.00 and closed at N20.80, down N2.20 or 9.57%. The stock is down 10.54% year to date.
Prestige Assurance Plc
Prestige Assurance Plc shed 9.09% this week. The stock opened at N0.50 and closed at N0.50, down N0.05. Year to date, the stock is flat in terms of price appreciation.
ABC Transport Plc
ABC Transport Plc rounds up the top 10 losers for the week. The stock opened at N0.33 and closed at N0.30, down N0.03 or 9.09%. Year to date, the stock is up 3.45%.
Forex turnover drops by 28.3% as naira depreciates against the dollar at I&E window
Naira improved against the dollar by N1.35, closing at N386.33 to a dollar, as against the indicative rate of N387.68 to a dollar that it opened with.
The naira has depreciated to N386.33 to a dollar at the Investors and Exporters (I&E) window, as the volatility of the foreign exchange market continues. The local currency was weakened by N0.83 against the dollar, when compared to the N385.50 to a dollar that it traded on Tuesday, June 2, 2020.
The exchange rate at the I&E window is different from the Central Bank of Nigeria’s published exchange rate, which currently stands at N360/$1. This is also different from the exchange rate at the parallel market, which is still stable at N445/$1, according to information on AbokiFX as of Wednesday, June 3, 2020.
Available information from the daily trading at FMDQ (where FX is traded by importers and investors) shows that the naira improved against the dollar by N1.35, closing at N386.33 to a dollar, as against the indicative rate of N387.68 to a dollar that it opened with on Wednesday.
Further analysis of the information from the FMDQ shows that the turnover for the day declined by about 28.3% at $24.64 million. This is against the $34.35 million turnovers that was recorded the previous day.
(READ MORE:Naira appreciates at parallel market)
The foreign exchange market seems to have stabilized at the parallel market, following the reduction in demand for dollars especially by currency speculators, and improved liquidity. The rebound of crude oil prices appears to have eased the concerns of investors over possible devaluation of the naira.
The gap between the CBN official rate and the parallel market rate, also known as the black market, has been greatly reduced as the naira appreciated to N445 to a dollar from N460 to a dollar last week, following CBN’s intervention.
According to data compiled by Bloomberg, the Naira spot market rate is overvalued by 10% when measured by its current real effective exchange rate relative to the 5-year average.
Manufacturing PMI slide into recession territory
This is the first clear data-driven sign that Nigeria is in a recession.
The much-awaited Purchasers Managers Index (PMI) was released on May 29th by the Central Bank of Nigeria. According to the latest data, Manufacturing PMI in the month of May stood at 42.4 index points, indicating contraction in the manufacturing sector for the first time after recording expansion for thirty-six consecutive months.
The figure compares to 51.1 and 49.2 index points in March 2020.
The latest number now falls squarely within recession numbers and this is a clear sign that Nigeria is closer to recording a major contraction in the second quarter of the year.
Meanwhile, the nation’s PMI’s number hit a year low in April 2016 of 43.7, before plummeting further to 41.9 in June 2016. Nigeria subsequently fell into a recession by the end of the second quarter of 2016 and remained in recession throughout the course of the year.
The nation’s non-manufacturing PMI fell for a consecutive month to an all-time low of 25.3. The decline in manufacturing PMI was significant following thirty-six consecutive months of expansion, while the non-Manufacturing PMI contracted for the second consecutive month.
A further look into the report shows that the manufacturing sector employment level index stood at 24.5 points in May, a decline compared to 47.1 points recorded in March and 56.4 points in February 2020.
This downturn is mostly attributed to the halt in economic activity as businesses in Nigeria result in layoffs and pay cuts in order to survive the effect of the lockdown.
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Also, all 14 subsectors of the manufacturing sector, reported lower raw material inventories, consequently contracting the inventories index to 37.4 points in May 2020. An effect of the supply chain bottleneck associated with the lockdown measures implemented in most countries of the world.
Specifically, this figure translates the effect of lockdown procedures and trade restrictions implemented by Nigeria’s major trade partners in response to the COVID-19 pandemic. Note that Nigeria’s major trade partners; China, USA, Spain, and the Netherlands account for about 45% of the nation’s import.
What you need to know: PMI is a survey that is conducted by the Statistics Department of the Central Bank of Nigeria. The respondents are purchasing and supply executives of manufacturing and non-manufacturing organizations in all 36 states in Nigeria and the Federal Capital Territory (FCT).
In his reaction to the data, the Central Bank Governor, Godwin Emefiele, in the Monetary Policy Communique, highlighted how dire the situation.
He said, “The contraction in the manufacturing and non-manufacturing PMIs was attributed to slower growth in production, new orders, employment level, raw materials, and input prices.
“The employment level index for the manufacturing and non-manufacturing PMIs also contracted further to 25.5 and 32.0 index points, respectively, in May 2020 compared with 47.1 and 47.3 index points in March 2020.
“Generally, the purchasing managers’ activities in May 2020, were largely affected by the lockdown of the global economy to curtail the spread of the COVID-19 pandemic.”
The CBN thereafter reduced its monetary policy rate from 13.5% to 12.5% for the first time since March 2019.
What this means: This survey is a bellwether for economic growth in Nigeria and helps the central bank gauge the mood of businesses in the economy.
PMI above 50 typically indicates a positive mood for the manufacturing and non-manufacturing sectors. Two major causes for concern in the data are the new orders and employment levels.
At 42.8 points, the new orders index declined after thirty-sixth consecutive months of growth, indicating declines in new orders in May 2020. Three subsectors reported growth, 2 remained unchanged while 9 recorded declines in the review month.
Covid-19 Update in Nigeria
On the 3rd of June 2020, 348 new confirmed cases and 1 death were recorded in Nigeria bringing the total confirmed cases recorded in the country to 11,166.
The spread of novel Corona Virus Disease (COVID-19) in Nigeria continues to rise as the latest statistics provided by the Nigeria Centre for Disease Control reveal Nigeria now has 11,166 confirmed cases.
On the 3rd of June 2020, 348 new confirmed cases and 1 death were recorded in Nigeria.
To date, 11166 cases have been confirmed, 3329 cases have been discharged and 315 deaths have been recorded in 35 states and the Federal Capital Territory having carried out 69,801 tests.
Covid-19 Case Updates- 3rd June 2020
- Total Number of Cases – 11,166
- Total Number Discharged – 3,329
- Total Deaths – 315
- Total Tests Carried out – 69,801
The 348 new cases are reported from 19 states- Lagos (163), FCT (76), Ebonyi (23), Rivers (21), Delta (8), Nasarawa (8), Niger (8), Enugu(6), Bauchi (5), Edo(5), Ekiti (5), Ondo (5), Gombe (5), Benue(4), Ogun (2), Osun (1), Plateau (1), Kogi (1), Anambra (1).
The latest numbers bring Lagos state total confirmed cases to 5440, followed by Kano (970), Abuja at 763, Katsina (371), Edo (341), Oyo (317), Kaduna (297), Borno (296), Ogun (282), Jigawa (274), Rivers (269), Bauchi (246), Gombe (169), Sokoto (115).
Kwara State has recorded 111 cases, Plateau (109), Delta (106), Nasarawa (88), Zamfara (76), Ebonyi (63), Yobe (52), Osun (47), Akwa Ibom (45), Adamawa (42), Niger (41), Imo (39), Kebbi and Ondo (33), Ekiti (25), Enugu (24), Bayelsa (21), Taraba (18), Abia (15), Benue (13), Anambra (12), while Kogi state has recorded only 3 cases.
Lock Down and Curfew
In a move to combat the spread of the pandemic disease, President Muhammadu Buhari directed the cessation of all movements in Lagos and the FCT for an initial period of 14 days, which took effect from 11 pm on Monday, 30th March 2020.
The movement restriction, which was extended by another two-weeks period, has been partially put on hold with some businesses commencing operations from May 4. On April 27th, 2020, President Muhammadu Buhari declared an overnight curfew from 8 pm to 6 am across the country, as part of new measures to contain the spread of the COVID-19. This comes along with the phased and gradual easing of lockdown measures in FCT, Lagos, and Ogun States, which took effect from Saturday, 2nd May 2020, at 9 am.
|Date||Confirmed case||New cases||Total deaths||New deaths||Total recovery||Active cases||Critical cases|
|June 3, 2020||11166||348||315||1||3329||7522||7|
|June 2, 2020||10819||241||314||15||3239||7266||7|
|June 1, 2020||10578||416||299||12||3122||7157||9|
|May 31, 2020||10162||307||287||14||3007||6868||7|
|May 30, 2020||9855||553||273||12||2856||6726||7|
|May 29, 2020||9302||387||261||2||2697||6344||7|
|May 28, 2020||8915||182||259||5||2592||6064||7|
|May 27, 2020||8733||389||254||5||2501||5978||7|
|May 26, 2020||8344||276||249||16||2385||5710||7|
|May 25, 2020||8068||229||233||7||2311||5524||7|
|May 24, 2020||7839||313||226||5||2263||5360||7|
|May 23, 2020||7526||265||221||0||2174||5131||7|
|May 22, 2020||7261||245||221||10||2007||5033||7|
|May 21, 2020||7016||339||211||11||1907||4898||7|
|May 20, 2020||6677||284||200||8||1840||4637||7|
|May 19, 2020||6401||226||192||1||1734||4475||7|
|May 18, 2020||6175||216||191||9||1644||4340||7|
|May 17, 2020||5959||388||182||6||1594||4183||7|
|May 16, 2020||5621||176||176||5||1472||3973||7|
|May 15, 2020||5445||288||171||3||1320||3954||4|
|May 14, 2020||5162||193||168||3||1180||3815||4|
|May 13, 2020||4971||184||164||6||1070||3737||4|
|May 12, 2020||4787||146||158||6||959||3670||4|
|May 11, 2020||4641||242||152||10||902||3589||4|
|May 10, 2020||4399||248||142||17||778||3479||4|
|May 9, 2020||4151||239||127||11||745||3278||4|
|May 8, 2020||3912||386||118||10||679||3115||4|
|May 7, 2020||3526||381||108||4||601||2818||4|
|May 6, 2020||3145||195||104||5||534||2507||1|
|May 5, 2020||2950||148||99||5||481||2370||4|
|May 4, 2020||2802||245||94||6||417||2291||2|
|May 3, 2020||2558||170||88||2||400||2070||2|
|May 2, 2020||2388||220||86||17||351||1952||2|
|May 1, 2020||2170||238||69||10||351||1751||2|
|April 30, 2020||1932||204||59||7||317||1556||2|
|April 29, 2020||1728||196||52||7||307||1369||2|
|April 28, 2020||1532||195||45||4||255||1232||2|
|April 27, 2020||1337||64||41||0||255||994||2|
|April 26, 2020||1273||91||41||5||239||994||2|
|April 25, 2020||1182||87||36||3||222||925||2|
|April 24, 2020||1095||114||33||1||208||855||2|
|April 23, 2020||981||108||32||3||197||753||2|
|April 22, 2020||873||91||29||3||197||648||2|
|April 21, 2020||782||117||26||3||197||560||2|
|April 20, 2020||665||38||23||1||188||466||2|
|April 19, 2020||627||86||22||2||170||436||2|
|April 18, 2020||541||48||20||2||166||356||2|
|April 17, 2020||493||51||18||4||159||317||2|
|April 16, 2020||442||35||13||1||152||277||2|
|April 15, 2020||407||34||12||1||128||267||2|
|April 14, 2020||373||30||11||1||99||263||2|
|April 13, 2020||343||20||10||0||91||242||2|
|April 12, 2020||323||5||10||0||85||228||2|
|April 11, 2020||318||13||10||3||70||238||2|
|April 10, 2020||305||17||7||0||58||240||2|
|April 9, 2020||288||14||7||1||51||230||2|
|April 8, 2020||274||22||6||0||44||226||2|
|April 7, 2020||254||16||6||1||44||204||2|
|April 6, 2020||238||6||5||0||35||198||2|
|April 5, 2020||232||18||5||1||33||194||2|
|April 4, 2020||214||5||4||0||25||185||0|
|April 3, 2020||209||25||4||2||25||180||0|
|April 2, 2020||184||10||2||0||20||162||0|
|April 1, 2020||174||35||2||0||9||163||0|
|March 31, 2020||139||8||2||0||9||128||0|
|March 30, 2020||131||20||2||1||8||121||0|
|March 29, 2020||111||22||1||0||3||107||0|
|March 28, 2020||89||19||1||0||3||85||0|
|March 27, 2020||70||5||1||0||3||66||0|
|March 26, 2020||65||14||1||0||2||62||0|
|March 25, 2020||51||7||1||0||2||48||0|
|March 24, 2020||44||4||1||0||2||41||0|
|March 23, 2020||40||10||1||1||2||37||0|
|March 22, 2020||30||8||0||0||2||28||0|
|March 21, 2020||22||10||0||0||1||21||0|
|March 20, 2020||12||4||0||0||1||11||0|
|March 19, 2020||8||0||0||0||1||7||0|
|March 18, 2020||8||5||0||0||1||7||0|
|March 17, 2020||3||1||0||0||0||3||0|
|March 16, 2020||2||0||0||0||0||2||0|
|March 15, 2020||2||0||0||0||0||2||0|
|March 14, 2020||2||0||0||0||0||2||0|
|March 13, 2020||2||0||0||0||0||2||0|
|March 12, 2020||2||0||0||0||0||2||0|
|March 11, 2020||2||0||0||0||0||2||0|
|March 10, 2020||2||0||0||0||0||2||0|
|March 9, 2020||2||1||0||0||0||2||0|
|March 8, 2020||1||0||0||0||0||1||0|
|March 7, 2020||1||0||0||0||0||1||0|
|March 6, 2020||1||0||0||0||0||1||0|
|March 5, 2020||1||0||0||0||0||1||0|
|March 4, 2020||1||0||0||0||0||1||0|
|March 3, 2020||1||0||0||0||0||1||0|
|March 2, 2020||1||0||0||0||0||1||0|
|March 1, 2020||1||0||0||0||0||1||0|
|February 29, 2020||1||0||0||0||0||1||0|
|February 28, 2020||1||1||0||0||0||1||0|