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Nigerian Breweries, Stanbic Bank lead the Bears, Investors lose N24.7 billion 

Market turnover finished lower compared to the previous trading session.

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Bears dominate Nigeria bourse trading session, ASI down 2.02%, Nigerian Breweries, Stanbic Bank lead the Bears, Investors lose N24.7 billion 

Nigeria’s stock market took a bearish turn following sell-offs in the shares of some bellwether stocks, thus driving the All Share Index (ASI) down by 0.19% to close at 24,779.26 points with a market capitalization of N12.926 trillion, while Month-to-Date and Year-to-Date losses prints at -1.98% and -7.78%, respectively. Investors lost N24.7 billion.

Similarly, market turnover finished lower compared to the previous trading session. Total volume and value of stocks traded decreased by 28.62% and 34.41% to 124.68 million units and N1.31 billion respectively.

JAPAULOIL was the most traded stock by volume at 13.61 million units while GUARANTY was the most traded stock by value at N260.46 million.

Market sentiment, as measured by market breadth, was negative as 25 tickers declined, relative to 12 gainers. STANBIC and ARDOVA were the top losers of the day with -8.33% and 5.09% declines, while NESTLE and FIDSON recorded the largest gains with 7.72% and 7.49% respective appreciation in share value.

Performance across sectors mirrored the broad index. All indexes closed in the negative terrain with the exception of the Consumer Goods Index which closed as the lone gainer. Price decline in BUACEMENT (-2.27%) dragged the Industrial index down by -1.50%. Decline in PRESTIGE, LAWUNION and AIICO resulted in the Insurance Index shedding -0.87%.

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READ MORE: Nigeria’s stock market drops by N16.88 billion

The Banking and Oil & Gas index followed, lowered by -0.60% and -0.53% due to price wane in STANBIC (-8.33%), GUARANTY (-1.73%) and ARDOVA (-5.09%). Conversely, gains in NESTLE (+7.72%) spurred the Industrial index to grow +2.10%

Top gainers 

NESTLE up 7.72% to close at N1179, FIDSON up 7.49% to close at N3.3, STERLNBANK up 6.67% to close at N1.28, AFRIPRUD up 5.25% to close at N4.21, FCMB up 4.65% to close at N1.8

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Top losers 

STANBIC down 8.33% to close at N30.25, ARDOVA down 5.09% to close at N13.05, FLOUR MILL down 3.43% to close at N19.7, NB down 2.63% to close at  N37, BUACEMENT down  2.27% to close at N43

Outlook

Nigerian bourse started on a poor note as market liquidity remained thin, coupled with resurgences in COVID-19 cases. Investors remain on the sidelines.

Nairametrics advises caution when buying Nigerian stocks, as geopolitical uncertainty strengthens.

 

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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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