Stocks to watch comprises the top gainers and losers from the previous week, companies that will be having corporate actions this week, and those that made announcements after Friday’s closing bell.
Stocks to watch is not a Buy/Sell/Hold list.
Oando Plc tops this week’s watchlist, as the company’s court case against the Securities and Exchange Commission comes up for further hearing this week.
The exchange between the firm and the SEC continued, with Oando issuing a press release stating that it had not gotten fair hearing, nor access to the audit report on which the commission’s decisions were based.
Linkage Assurance Plc
Linkage Assurance Plc takes the second spot this week, as it was the best performing stock last week. The stock gained 37.50%, closing at N0.66 and could either appreciate further or decline in this week’s trading.
Chams Plc was the worst performing stock last week, hence its having a place on this week’s watchlist. The stock declined by 13.89%, closing at N0.31, down N0.05.
Trading in the stock has been somewhat volatile since the firm declared a dividend, and it could maintain the same pattern in this week’s trading session.
Ikeja Hotels has a spot in this week’s watchlist, as it will be having a Facts Behind the Figures session at the NSE this week.
Mutual Benefits Assurance Plc
Mutual Benefits Assurance Plc released its full year 2018 results after Friday’s closing bell. The stock could decline this week, as the company has opted not to pay a dividend.
Law Union and Rock Insurance et al
Companies holding AGMs all have a joint spot this week. They include:
Law Union and Rock Insurance Plc, NEM Insurance Plc and Notore Industries Plc. Others are UAC of Nigeria, Jaiz Bank, and Union Diagnostics. Total Nigeria Plc, Tantalizers Plc, and Medview Airline Plc will also be holding AGMs this week.
International Breweries Plc
International Breweries Plc has had a spot in Nairametrics watchlist in the last few weeks as the company is yet to release its full-year 2018 and Q1 2019 results nor given guidance.
Investments in Nigerian stock market dips in January 2021 despite bullish run in 2020
Despite the strong performance by the bourse in 2020, total portfolio investments dipped in January 2021.
The Nigeria stock exchange (NSE) market drove a year-end bull run in 2020 despite the outbreak of the Covid-19 pandemic which caused a major downturn in the country’s economy.
Amongst 93 global equity indices monitored by Bloomberg, the NSE All-Share Index (ASI) appeared as the best-performing index in the world, surpassing the S&P 500 (+16.26%), Dow Jones Industrial Index (+7.25%), and other global and African market indexes, to post a one-year return of +50.03%.
Despite the strong performance by the bourse in the previous year, domestic and foreign portfolio dipped significantly in the month of January 2021. This is according to the NSE domestic and foreign portfolio investment report published on its website.
Specifically, the total transactions in the month of January 2021 stood at N232.46 billion, a 13.7% decline compared to N269.24 billion recorded in the previous month.
Also, total foreign transactions in the equities market stood at N47.52 billion in January 2021. This represents a decline of 32% when compared to N69.92 billion recorded in December 2020 and a 32.4% decline compared to N70.32 billion in the corresponding period of 2020.
- Total foreign transactions in the month of January stood at N47.52 billion, while domestic transactions stood at N184.94 billion.
- Foreign transactions accounted for 20.44% of the total transactions recorded in the bourse, a decline compared to 25.97% and 29.86% recorded in December 2020 and the corresponding period of 2020 respectively.
- On the other hand, domestic transactions accounted for 79.56% in the month under review, an increase compared to 74.03% and 70.14% recorded in December 2020 and January 2020 respectively.
- Foreign inflows dipped by 20.9% from N21.14 billion recorded in December 2020 to N16.73 billion in January 2021.
- Also, foreign outflows decreased by 36.9% to stand at N30.79 billion in January 2021.
- However, domestic transactions stood at N184.94 billion in January 2021. This represents a 7.2% decline compared to N199.32 billion recorded in the previous month while it increased by 11.9% compared to the corresponding period of 2020.
According to the report, Institutional Investors outperformed Retail Investors by 28%. A comparison of domestic transactions in the current and prior month (December 2020) revealed that retail transactions increased by 10.16% from N61.22 billion in December 2020 to N67.44 billion in January 2021.
Also, the institutional composition of the domestic market decreased by 14.91% from N138.09 billion in December 2020 to N117.5 billion in January 2021.
A look at Historic data shows that over a fourteen (14) year period, domestic transactions decreased by 59.54% from N3.556 trillion in 2007 to N1.439 trillion in 2020 whilst foreign transactions increased by 18.45% from N616 billion to N729 billion over the same period.
Why this matter
The performance of the stock market in 2020 was met with caution as the All-share index of the Nigerian Stock Exchange declined in the first month of 2021. This could be attributed to profit-taking move by stock market investors and uncertainty surrounding the Nigerian economic landscape.
Bamboo’s current rate for buying U.S Stocks weakens to N492/$1
Bamboo is currently offering its users a premium of more than 20% compared to the official exchange rate.
The fast-rising Nigerian stock broking application, Bamboo, is currently offering an exchange rate of N492 to the dollar.
About two weeks ago, the Nigerian stock trading app offered an exchange rate of about N484 to $1.
The green-colored trading app known for allowing local-based Nigerians to invest in stocks listed on the world’s biggest stock market (New York Stock Exchange and NASDAQ) is currently offering its users a premium of more than 20% compared to the official exchange rate set by the Nigerian apex bank.
That being said, Nairametrics’s most recent research observed Chaka. ng offers the lowest exchange rate charge of N480 to 1$, other Nigerian-based stock trading apps that include Throve and Risevest currently offer their clients N491.68 and N486 to $1 respectively.
In addition, other leading fintech platforms reviewed by Nairametrics also presently offer exuberant rates as high as about N519 to a dollar, thereby adding more transaction costs on a significant number of Nigerians hoping to trade such financial assets.
A growing number of Nigerians are currently increasing their exposure to the U.S stock market taking to the current bearish trend that is being witnessed in the Nigerian Equity market and growing urge in hedging against the weakening local currency.
Consequently, a lot of Nigerians are flocking the New York Stock Exchange (NYSE) on the account it has about 2,800 companies listed, while the NASDAQ has about 3,300 stocks listed. This gives Nigerian investors numerous options where they can invest their money. It is also why the US economy attracts billions of dollars in portfolio investments annually.
Bamboo is an investment platform that gives Africans real-time access to invest in or trade over 3,500 stocks listed on the American and Nigerian exchanges right from their smartphones or personal computer.
In partnership with US-based Drive Wealth LLC, Bamboo provides seamless, secure access to US and Nigerian securities.
Nairametrics | Company Earnings
Access our Live Feed portal for the latest company earnings as they drop.
- Seplat falls into a loss in FY 2020
- 2020 FY Results: Cornerstone Insurance Plc reports a 61.1% decline in profit
- Ellah Lakes increases operating expenses by 33.36% in HY 2020
- 2020 FY Results: Nigerian Breweries reports a 54.3% decline in profits in 2020
- Abbey Mortgage Bank projects N51.08 million profit in Q2 2020.