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Stock Market

Nigerian bourse falls by 0.12% WoW despite gains from GTBank & Zenith

The NSE All-Share Index and Market Capitalization both depreciated by 0.12%.

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investors, Bulls gain momentum, as stimulus package lifts global financial markets, Bulls boost global financial market, gold hits 7 years high, Dangote, Tier-1 banks lead the bulls to close Nigerian stock market green

The Nigerian All-Share Index and Market Capitalization both dropped by 0.12% to close the week at 24,306.36 and N12.680 trillion respectively.

Nigeria’s bourse closed the week with a total turnover of 901.542 million shares worth N13.453 billion in 18,676 deals traded this week by investors on the floor of The Exchange. This is in contrast to a total of 961.833 million shares valued at N9.181 billion that exchanged hands last week in 20,058 deals.

The NSE All-Share Index and Market Capitalization both depreciated by 0.12% to close the week at 24,306.36 and N12.680 trillion respectively.

Explore Economic Research Data From Nairametrics on Nairalytics

The Financial Services industry (measured by volume) led the activity chart with 629.368 million shares valued at N5.186 billion traded in 9,887 deals; thus contributing 69.81% and 38.55% to the total equity turnover volume and value respectively. The ICT industry followed with 59.506 million shares worth N5.161 billion in 684 deals. The third place went to the Consumer Goods industry, with a turnover of 57.136 million shares worth N1.385 billion in 2,993 deals.

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Trading in the top three equities namely; Guaranty Trust Bank Plc, Fidelity Bank Plc and Zenith Bank Plc (measured by volume) accounted for 293.678 million shares worth N4.042 billion in 4,334 deals, contributing 32.58% and 30.05% to the total equity turnover volume and value respectively.

25 equities appreciated in price during the week, higher than 13 equities in the previous week. 33 equities depreciated in price, lower than 59 equities in the previous week, while 105 equities remained unchanged, higher than 91 equities recorded in the previous week.

READ MORE: GTBank releases 2019 full year audited results

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Top gainers

RED STAR EXPRESS PLC up 18.52% to close at N3.52.

P Z CUSSONS NIGERIA PLC up 15.38% to close at N4.50.

STERLING BANK PLC. up 13.04% to close at N1.30.

CORNERSTONE INSURANCE PLC up 10.00% to close at N0.55.

ZENITH BANK PLC up 9.51% to close at N16.70.

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CHAMS PLC up 9.09% to close at N0.24.

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NIGERIAN AVIATION HANDLING COMPANY PLC up 9.00% to close at N2.18.

GUARANTY TRUST BANK PLC. up 7.93% to close at N22.45.

FIDELITY BANK PLC up 7.19% to close at N1.79.

LAW UNION AND ROCK INS. PLC. up 7.00% to close at N1.07.

 

Top losers

CUSTODIAN INVESTMENT PLC down 10.91 to close at N4.90.

CONOIL PLC down 10.00 to close at N18.90.

BETA GLASS PLC. down 9.95 to close at N61.55.

MRS OIL NIGERIA PLC. down 9.78 to close at N12.45.

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UNILEVER NIGERIA PLC. down 9.78 to close at N12.45.

LIVESTOCK FEEDS PLC. down 9.68 to close at N0.56.

AXAMANSARD INSURANCE PLC down 9.66% to close at N1.59.

BERGER PAINTS PLC down 9.63% to close at N6.10.

ARBICO PLC down 9.52% to close at N1.71.

UACN PROPERTY DEVELOPMENT COMPANY PLC down 9.09% to close at N0.90.

 

Outlook

The Nigerian bourse struggled on most reference levels all week, with the exception of most tier-1 banks, that put up a good show in terms of turnover and gains recorded for the week.

However, with daily case surges in COVID-19 caseloads in major cities around Nigeria, and the high volatility ongoing on Nigeria’s black gold (Brent Crude), Nairametrics envisages cautious buying as geopolitical and economic uncertainty strengthens across the spectrum.

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

Nestlé S.A purchased 666,596 additional shares of Nestlé Nigeria Plc in 17 days

Nestlé S.A. has acquired 666,596 additional shares of its Nigerian subsidiary, worth ₦933 million in 17 days.

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Why Nestle Nigeria’s return remains strong - EFG Hermes, Nestle Nigeria Plc appoints new Director, Nestle Plc: FY 2019 Revenue beats estimate; but profit underperforms, GTB, Zenith Bank, & Nestle emerge as Renaissance Capital’s top stock picks, Nestlé’s parent company acquires additional shares worth ₦300 million

Nestlé S.A has purchased a total of 666,596 additional shares of its Nigerian subsidiary, Nestlé Nigeria Plc, in a deal worth N933.95 million.

According to the four different notifications issued between 11th to 27th of November by the Company’s Secretary, Mr. Bode Ayeku, and seen by Nairametrics, Nestlé S.A purchased the ordinary shares of Nestlé Nigeria Plc in this order:

  • On 10th November, 214,924 additional shares worth N300.89 million, at a price of N1,400.00 per share.
  • On the 17th and 18th November, 331,045 additional shares worth N463.46 million, at a price of N1,400.00 per share.
  • On 20th November, 102,690 additional shares worth N143.77 million, at a price of N1,400.00 per share.
  • On 25th and 27th November, 17,937 additional shares worth N24.82 million, at a price of N1,384.00 per share.

This brings the total shares of Nestlé Nigeria Plc purchased by Nestlé S.A to 666,596, and the total consideration for these shares is put at N932.95 million.

What this means

The purchase of the shares of Nestlé Nigeria further cements the position of Nestlé S.A’s as the majority shareholder of the company.

In line with the information contained in the financial statements of the company as of 30th September 2020, the company had exactly 792,656,252 shares outstanding, with Nestlé S.A being the majority shareholder (525,537,201 units) – 66.30% of the total shares of the company outstanding.

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Hence, with the 666,596 additional units purchased, Nestlé S.A’s ownership percentage of Nestlé Nigeria is now put at 66.38%.

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Market Views

Airtel, Mobil, FCMB lead Nigerian Stocks Up W/W, investors gain N390 billion

The All-Share Index and Market Capitalization appreciated by 2.19% to close the week at 34,885.51 and N18.228 trillion respectively.

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Nigerian Stocks ended the week bullish cumulatively. The All-Share Index and Market Capitalization appreciated by 2.19% to close the week at 34,885.51 and N18.228 trillion respectively.

Investors gained N390.26 billion. A total turnover of 1.816 billion shares worth N25.791 billion in 31,665 deals was traded this week by investors on the floor of the Exchange, in contrast to a total of 11.400 billion shares valued at N35.892 billion that exchanged hands last week in 39,265 deals.

READ: Nigerian Tier-2 banks fired up, investors profit up N1 trillion W/W

  • The Financial Services Industry (measured by volume) led the activity chart with 1.274 billion shares valued at N14.710 billion, traded in 18,392 deals; thus, contributing 70.15% and 57.04% to the total equity turnover volume and value respectively.
  • The Conglomerates Industry followed with 217.170 million shares worth N231.809 million in 1,226 deals. The third place was the Consumer Goods Industry, with a turnover of 113.760 million shares worth N2.598 billion in 4,568 deals.
  • Trading in the top three equities namely Zenith Bank Plc, Transnational Corporation of Nigeria Plc, and Access Bank Plc (measured by volume) accounted for 649.529 million shares worth N8.104 billion in 6,395 deals, contributing 35.76% and 31.42% to the total equity turnover volume and value respectively.
  • Twenty-seven (27) equities appreciated at price during the week, higher than twenty-one (21) equities in the previous week. Forty-three (43) equities depreciated in price, lower than fifty-five (55) equities in the previous week. Ninety-one (91) equities remained unchanged, higher than eighty-five (85) recorded in the previous week.

READ: GTBank obtains approval-in-principle from CBN to operate as financial holding company

Top 10 gainers W/W

GTBank 728 x 90
  1. UPDC REAL ESTATE INVESTMENT TRUST up 32.53% to close at N5.50
  2. NEIMETH INTERNATIONAL PHARMACEUTICALS PLC up 12.03% to close at N2.70
  3. NCR (NIGERIA) PLC. up 10.00% to close at N1.98
  4. 11 PLC (MOBIL) up 9.89% to close at N208.80
  5. UNIVERSITY PRESS PLC. up 9.52% to close at N1.38
  6. UNITED CAPITAL PLC up 8.16% to close at N4.77
  7. CORONATION INSURANCE PLC up 7.32% to close at N0.44
  8. FCMB GROUP PLC. up 7.26% to close at N3.25
  9. AIRTEL AFRICA PLC up 7.00% to close at N535.00
  10. AXAMANSARD INSURANCE PLC up 6.36% to close at N2.34

Top 10 losers W/W

  1. JAPAUL OIL & MARITIME SERVICES PLC down 11.11% to close at N0.24
  2. HONEYWELL FLOUR MILL PLC down 10.83% to close at N1.07
  3. CUSTODIAN INVESTMENT PLC down 10.00% to close at N5.85
  4. CHAMPION BREW. PLC. down 9.43% to close at N0.96
  5. TRANS-NATIONWIDE EXPRESS PLC. down 9.38% to close at N0.87
  6. LINKAGE ASSURANCE PLC down 9.09% to close at N0.50
  7. WEMA BANK PLC. down 9.09% to close at N0.70
  8. PORTLAND PAINTS & PRODUCTS NIGERIA PLC down 8.42% to close at N2.61
  9. ARDOVA PLC down 8.33% to close at N13.75
  10. NASCON ALLIED INDUSTRIES PLC down 8.05% to close at N16.00

READ: MTN Nigeria, Dangote Cement stocks fired up, investors gain whopping N708 billion

Outlook

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Nigerian Stocks unsurprisingly recorded impressive gains W/W, as investors increased their buying pressure, especially buying from dips across the market spectrum.

Nigerian’s crude, selling at $48/barrel, boosted the Nigerian central bank dollar cash inflow. Also, the Apex Bank last concluded MPC meeting left all key indicators unchanged, kept Nigerian Bank stocks investors relieved, amid the bias that Nigerian banks would have enough headway in mitigating the prevailing economic uncertainties currently in play.

READ: Access Bank, First Bank up, investors gain N747 billion W/W

  • Stock experts anticipate the present bullish run currently playing at Africa’s best-performing equity market will remain in the coming week, albeit alongside profit-taking.
  • However, Nairametrics, envisage cautious buying, taking into consideration the low presence of the Foreign portfolio investors amid low investments seen lately in the Nigerian Stock Exchange amid stringent capital controls set in place by Nigeria’s Apex bank could limit the Stocks bull upside in the long term.

Explore Data on the Nairametrics Research Website

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Financial Services

Stamp Duty on Nigerian Stock market transactions pegged at 0.08% from December 7

The NSE has given clarifications on the public notice released by the FIRS, itemizing contract notes at an ad valorem rate of 0.08%.

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NSE prepares to launch West Africa’s first Exchange-traded derivatives

The Nigerian Stock Exchange has given clarifications on the public notice released by the Federal Inland Revenue Service (FIRS) in July, itemizing contract notes at an ad valorem rate of 0.08% up from 0.075%, effective 7th December 2020.

The circular released by the Nigerian Stock Exchange reads:

“In reference to the Public Notice in the Business Day Newspaper of Monday, 20 July 2020, captioned ‘Clarification of Administration of Stamp Duties in Nigeria’ issued by the Federal Inland Revenue Service (FIRS) (A copy is attached as Appendix A for ease of reference).

The Public Notice provided, amongst other things, information on dutiable instruments and the applicable flat or ad valorem rates, with Contract Notes 1 itemized at an ad valorem rate of 0.08%. As you know, this is at variance with the current rate of 0.075% administered in the Nigerian Capital Market.”

To that extent, Dealing Members of the Nigerian Stock Exchange are to note the following:

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  • Effective December 7, 2020, the Central Securities Clearing System Plc. (CSCS) will adjust its system to implement the automated deduction of the Stamp Duty rate of 0.08%.
  • Dealing Members are required to immediately engage their software vendors for the required adjustments to their technology applications, to reflect the 0.08% rate ahead of the effective date of 7 December 2020.
  • Dealing Members are required to communicate the changes above to their clients immediately, ahead of the effective date.

What you should know

Nairametrics revealed that the FIRS listed at least 50 types of transactions that are eligible for stamp duty deductions.

Some of the listed chargeable transactions include bank deposit or transfer, loan agreement, Memorandum of Understanding (MoU), sales agreement, will, tenancy/lease agreement, and all receipts.

The FIRS noted that the recently inaugurated FIRS Adhesive Stamp is not the same as the postage stamp administered by NIPOST for the purposes of delivery of items and documents.

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The Stamp Duties Act, 19391 defines Contact Notes as “the note sent by a broker or agent to his principal, or by any person who, by way of business, deals, or holds himself out as dealing, as a principal in any stock or marketable securities, advising the principal, or the vendor or purchaser, as the case may be, of the sale or purchase of any stock or marketable security, but does not include a note sent by a broker or agent to his principal where the principal is himself acting as broker or agent for a principal.”

See the circular below:

Download (PDF, 566KB)

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