The Nigerian Stock Exchange (NSE) ended Tuesday’s trading session in negative territory. The All-Share Index closed at 27,058.62 basis points, down 0.21%. Year to date, the index is down by 13.91%.
Top Gainers: Oando Plc was the best-performing stock today. The stock gained 10% to close at N3.85. Transnational Corporation of Nigeria Plc also gained 10% to close at N0.99. Chams Plc gained 9.52% to close at N0.23. Berger Paints Plc gained 9.49% to close at N7.50. UAC of Nigeria Plc rounded off the top five gainers for today. The stock gained 9.38% to close at N5.25.
Top Losers: On the flip side, Cutix Plc was the worst-performing stock, declining by 9.62% to close at N1.41. Pz Cussons Nigeria Plc fell by 8.33% to close at N5.50. Union Diagnostic & Clinical Service Plc fell by 8.33% to close at N0.22. May & Baker Nigeria Plc fell by 6.83% to close at N1.91. Honeywell Flour Mill Plc rounded off the top five losers for the day. The stock shed 6.06% to close at N0.93.
[READ MORE: Nigeria and the burden of debt]
Top Trades by Volume: Transnational Corp of Nigeria Plc was the most actively-traded stock today. 43.5 million shares valued at N42.7 million were traded in 152 deals. Guaranty Trust Bank Plc was next with 42.9 million shares valued at N1.1 billion traded in 304 deals, followed by Zenith Bank Plc with 34.1 million shares valued at N591 million traded in 589 deals.
Ecobank Transnational Inc was next with 24.2 million shares valued at N148 million traded in 139 deals. FBN Holdings Plc rounded off the top five most actively traded stocks today with 6.3 million shares valued at N31.3 million traded in 199 deals.
The Board of Directors of Total Nigeria Plc appointed Mrs Lesley Baxter-Green as a Director of the company. The appointment took effect from the 16th of August, 2019.
Etranzact has scheduled its 15th Annual General Meeting to hold at Colonades Hotel, 21, Alfred Rewane Road, Ikoyi, Lagos on Thursday, September 26, 2019, at 12 noon.
LASACO Assurance Plc also scheduled its Annual General Meeting to hold at City Hall, Catholic Mission Street, Lagos Island, Lagos on Thursday, 12th September 2019 at 11:00 am.
U.S dollar remains neutral as strong economic macros weaken its demand
The U.S. Dollar Index was slightly down at 0.02% to 97.040 at 1.30 pm Nigerian time.
U.S dollar pulled back sessions high on Friday as Economic data released earlier showed the second-largest economy service sector printing impressive results, with the (Chinese) Caixin Services Purchasing Managers Index coming in at 58.4 in June, the highest reading in two months.
The U.S. Dollar Index that monitors the American dollar against a group of other major currencies was slightly down at 0.02% to 97.040 at 1.30 pm Nigerian time.
Consequently about 24 hours ago the world largest economy recorded an addition of 4.8 million jobs in June and manufacturing activity printing a better economic result than expected, this further suggests that the economic stimulus by the U.S Fed Reserve seems to be working.
In addition, Currency analysts at ING, in a research note spoke about the U.S Federal Reserve stimulus package in relation to the strength of the dollar.
“Fed money printing has now secured what seems to be a stable negative correlation between risk assets and the dollar,”
“As long as the Fed is still buying assets and prepared to do more, we expect this negative correlation, Risk On, Dollar Off, to dominate financial markets over the coming quarters. Economies slowly getting back on their feet should mean a backdrop of a benign dollar bear trend in the second half of the year.”
Why this matters; The U.S. Dollar Index that tracks the American dollar against a basket of other major currencies (like the Japanese yen, British pound sterling, Swedish Krona, Euro), Individuals hoping to meet foreign exchange payment obligations, via dollar transactions to countries like Europe, and Japan, would need to pay more dollars in fulfilling such transactions
Breaking: CBN adjust naira from N360 to N380 at SMIS
This is essentially a huge attempt by the CBN to unify the naira and adjust the exchange rate.
Reports reaching Nairametrics indicates the CBN has instructed bidders at its Secondary Market Intervention Sales (SMIS) to increase their bidding price to N380/$1 floor. The SMIS is the market where importers bid for forex using Letters of Credit and Form M.
According to our sources, the central bank informed banks that they will only accept bids from N380/$1 and above and no longer N360/$1 meaning those who bid lower will not get any forex allocation. Transaction success in this market is based on bids with those who bid higher than the floor as they are often in an advantageous position to secure forex.
This is essentially a huge attempt at unifying the naira and another adjustment of the exchange rate by the CBN. Recall the CBN Governor had informed investors that the bank will be unifying the exchange rate towards what is being traded at the NAFEX market where investors and exporters trade forex.
Nairametrics understands a circular has been sent to banks but we are yet to see it.
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Details later as this is a developing story…..
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.
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.
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.)