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Nigerian Stock Market starts the week red, Investors lose N119.15 billion

Market activity measured by aggregate volume dipped by -29.51%, while value also declined by 52.73%.

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The Nigerian bourse opened the week on a negative note as the benchmark- All Share Index (ASI) dropped by 0.91% to close at 24,954.25 index points. Investors lost N119.15 billion to close market capitalization at N13.01 trillion as Year-to-Date) returns stood at -7.09%.

Market activity measured by aggregate volume dipped by -29.51%, while value also declined by 52.73%. Investors traded a total of 237.6 million units of shares valued at ₦1.6 billion in 4,808 deals.

FBNH was the most traded stock by volume at 24.3 million units while ZENITH BANK topped by value at N392 million. Market breadth index was negative with 27 losers against 17 gainers. REDSTAREX (+10.00%) led the gainer’s chart while ETI (-7.34%) topped the losers.

Performance across sectors was significantly bearish except for the Insurance index which closed positive. The Banking and Industrial indices depreciated the most by -1.93% and -1.44% due to price decline in of ETI (-7.34%); ZENITHBANK (-2.70%); WAPCO (-2.65%) and BUACEMENT (-1.81%).

READ MORE: Naira further strengthened at the I&E forex window, as local currency stabilizes

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Similarly, the Oil & Gas and Consumer Goods indices trailed distantly to shed -0.33% and -0.03% due to negative sentiments in OANDO (-2.08%) and GLAXOSMITH (-5.33%). On the flip side, MANDARD (+8.11%); LASACO (+8.00%) and MBENEFIT (+4.55%) spurred 0.88% appreciation in the Insurance sector.

Top gainers 

ETI down 7.34%  to close at N5.05, GLAXOSMITH down 5.33% to close at N7.1, ZENITHBANK down 2.70% to close at N16.2, BUACEMENT down 1.81% to close at N40.75, MTNN down 1.69% to close at N116.

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Top Losers

REDSTAREX up 10.00% to close at N3.63, FIDSON up 10.00% to close at N3.3, MANSARD up  8.11% to close at N2, UBN up 4.07% to close at N6.4, MAYBAKER up 3.61% to close at N3.16.

Outlook

The trading week is off to a tepid start as stocks slide lower on thin volumes. The performance of the market has been an echo of the current bearish sentiments dominating global equity markets this morning.

Crude oil has not also helped matters, as the hydrocarbon has maintained June’s downward trend.

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Nairametrics envisages cautious buying, as macro fundamentals show profit-taking is picking momentum.

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Olumide Adesina is a France-born Nigerian. He is a Certified Investment Trader, with more than 15 years of working expertise in Investment Trading. Featured Financial Market Analysis for a Fortune Global 500 Company. Member of the Chartered Financial Analyst Society. Follow Olumide on Twitter @tokunboadesina or email [email protected]

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Stock Market

U.S Stocks post record gains across markets spectrum

The Dow DJIA gained 0.8% to close near 30,218 points, while the S&P 500 SPX +0.88% advanced 0.9%, to finish near 3,699 points,

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U.S Stocks set to surge higher, on hopes of a stimulus package deal, What Does The Circuit Breaker Tell Us

Investors are trooping in large numbers at U.S equity markets as buying pressure escalates at the world’s biggest and most liquid equity market.

What you should know

Major U.S stock benchmarks were all fired up at the last trading session of the week, recording another week of gains for U.S stocks, as global investors looked past a softer-than-expected U.S jobs report.

  • The Dow Jones Industrial Average, S&P 500, Nasdaq Composite, and Russell 2000 RUT, +2.37% each ended at an all-time high – the first simultaneous record finishes for the quartet since Jan. 22, 2018.
  • The Dow DJIA gained 0.8% to close near 30,218 points, while the S&P 500 SPX +0.88% advanced 0.9%, to finish near 3,699 points, and the Nasdaq Composite COMP surged by 0.7% to 12,464 points.

What they are saying

Stephen Innes, Chief Global Market Strategist at Axi, in a note to Nairametrics, spoke on the prevailing fundamentals global investors would be gazing at amid the COVID-19 era:

“Investors continue to knock their Yule logs that a pre-holiday Christmas stimulus bill will provide the ultimate holiday stocking stuffer this year, and continue to look on the sunny side of the eventual vaccine rollout.

“But before we can make new gains, there is the usual sentiment tug of war between medium-term optimism and near-term COVID-19 despair.

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“I do not know how many times we have been down this road before. Still, all roads lead to prosperity eventually as the post-pandemic market rally has moved seamlessly from policy-driven to mobility-driven to vaccine-driven and should continue so even if some investors are sitting on the fence waiting for a new stimulus deal.”

What to expect

In the near term, leading stock experts are predicting an even stronger 2021 bullish outlook possibly for the U.S Stock markets, coupled with a quick inoculation-driven economic recovery.

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Stock Market

Nigerian stocks up amid gains from Mobil, Airtel, Zenith Bank

The market breadth ended negative as MOBIL led 13 Gainers as against 19 Losers topped by DANGCEM at the end of today’s session

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Nigerian banking stocks remain most liquid stocks, as investors gain N25.1 billion, DANGOTE CEMENT, OKOMUOIL and GUINNESS drag Nigerian Stock market down,  SEPLAT, GUINNESS, Breaks Nigerian Bourse Support Levels, Investors Lose N49 Billion  

Nigerian Stocks ended the last trading session of the week on a positive note.

  • The All Share Index gained 0.48% to close at 35,137.99 points as against -0.25% recorded on Thursday.
  • Its Year-to-Date (YTD) returns currently stands at +30.91%.

Nigerian Stocks trading turnover at Friday’s trading session ticked up as volume gained +1.20%, as against the 21.57% plunge recorded on Thursday.

  • FBNH, UBA, and ACCESS were the most active to boost market turnover.
  • The market breadth ended negative as MOBIL led 13 Gainers as against 19 Losers topped by DANGCEM at the end of today’s session – an unimproved performance when compared with the previous outlook.
  • ETI leads the list of active stocks that recorded an impressive volume spike at the end of today’s session.

Top Gainers

  1. MOBIL up 9.20% to close at N228
  2. AIRTELAFRI up 8.75% to close at N640
  3. CILEASING up 7.17% to close at N4.78
  4. ARDOVA up 3.21% to close at N14.45
  5. ZENITHBANK up 1.70% to close at N23.95

Top Losers

  1. DANGCEM down 2.93% to close at N199
  2. DANGSUGAR down 2.56% to close at N19
  3. UACN down 2.05% to close at N7.15
  4. FBNH down 1.39% to close at N7.1
  5. GUARANTY down 1.04% to close at N33.25

Outlook

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Nigerian stocks got fired up amid soaring oil prices at the last trading session of the week.

  • Buying pressure was significantly seen across leading NSE 30 Stocks like Mobil, Airtel, and Zenith Bank, which helped the bullish momentum all fired up.
  • Nairametrics, however, envisages cautious buying as the COVID-19 crisis seems to be getting out of hand in Nigeria’s key international markets, which includes Western Europe and the United States.

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Stock Market

Mutual Benefits Assurance Plc to raise N4.8 billion through private placement

Mutual Benefits Assurance Plc. has secured permission to raise the sum of N4.8 billion through private placement.

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Mutual Benefits Assurance announces CEO's exit, replacement

The Board of Directors of Mutual Benefits Assurance Plc. has secured permission to raise the sum of N4.8 billion through private placement.

This is according to a disclosure signed by the company’s Secretary, Jide Ibitayo and seen by Nairametrics.

The disclosure is part of the resolutions reached at the Extra-Ordinary General Meeting of the firm and sent to the Nigerian Stock Exchange, dated December 3, 2020.

According to the information contained in the notification, the private placement worth N4.8 billion is to be raised through the sale of 8,888,888,889 ordinary shares of 50 kobo each of the company, at the rate of 54 kobo per share, in a distribution succinctly captured below:

  • 5,331,004,445 units (approximately 60% of the total allotted units) is to be sold to Charles Enterprises LLC for about N2.88 billion.
  • The remaining 3,557,844,444 (approximately 40% of the total allotted units) is to be sold to Arubiewe Farms Ltd for about N1.92 billion.

What this means

  • According to Investopedia, a private placement is a sale of stock shares or bonds to pre-selected investors and institutions rather than on the open market. It is an alternative to an initial public offering (IPO) for a company seeking to raise capital for expansion.
  • In this light, it is pertinent to note that private sales are now common for start-ups, as they allow the company to obtain the money they need to grow while delaying or foregoing an IPO.

What you should know

Other key resolutions reached at the Extra-Ordinary General Meeting include:

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  • Raising the company’s authorized share capital from N10 billion to N10.05 billion.
  • To raise additional capital via the issue of debt or equity or a combination of both including convertible bonds, loans, stock, bonds with options etc.
  • Amendment of clause 6 of the Memorandum and clause 5 of the Articles of Association of the company respectively.

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