Stock Market
Nigerian bourse drops lower despite bullish run from GLAXOSMITH, ARDOVA
Market breadth index was slightly negative with 12 losers against 10 gainers.
Nigerian bourse finished on Friday on a negative note as the All-Share Index dropped by 0.17% to close the week at 24,287.66 index points. Market capitalization similarly dropped by the same margin to close at N12.669trillion.
The activity level closed the week mixed, as total volume declined by 22.62% to 160.50million units, while total value improved by 33.33% to N1.47billion. CUSTODIAN was the most traded stock by volume at 14.05million units while ZENITHBANK finished the most traded stock by value at N349.61.1 million.
In today’s trade, the market breadth index was slightly negative with 12 losers against 10 gainers. LINKASSURE (-9.09%) led the loser’s chart while GLAXOSMITH (+9.20%) was the top gainer.
Three of the five indices under coverage fell, one advanced, while the Industrial index closed flat.Price depreciation in LINKASSURE (-9.09%), REGALINS (-4.35%) and NEM (-2.91%) dragged the Insurance index down by 0.87%.
The Banking index trailed closely by 0.81% due to a decline in GUARANTY (-2.27%), WEMA BANK (-1.92%) and UBA (-0.81%). Consumer goods shed 0.51% as NB and DANGSUGAR dropped by (-2.28%) and (-1.64%) respectively. ARDOVA (+7.73%) and OANDO (+3.59%) buoyed the Energy index (+0.67%) to close as the lone gainer.
Top gainers
GLAXOSMITH up 9.20% to close at N4.75, ARDOVA up 7.73% to close at N12.55, NAHCO up 4.04% to close at N2.06, CAVERTON up 3.83% to close at N1.9, OANDO up 3.59% to close at N2.31.
Top losers
NEM down 2.91% to close at N2, NB down 2.28% to close at N30, GUARANTY down 2.27% to close at N21.5, DANGSUGAR down 1.64% to close at N12, UBN down 0.92% to close at N5.4.
Outlook
Nigerian bourse ended the week on a negative note, as falling crude oil prices coupled with the rise in Nigeria’s inflation. Nairametrics envisages cautious buying as market liquidity remains very poor.
Market Views
GTBank, Dangote Cement keep Bulls roaring high
Market breadth closed positive as NASCON led 20 Gainers as against 6 Losers topped by NNFM at the end of today’s session.
Nigerian stock market ended its last trading session on an impressive note. The All Share Index gained 0.47% to close at 28,697.06 points as against +0.40% appreciation recorded on Thursday.
Nigerian Stock Exchange market capitalization now stands at N14.99 Trillion. Its Year-to-Date (YTD) returns currently stands at +6.91%.
- However, the Nigerian bourse trading turnover fell short of expectation as volume moved dipped by 9.11% as against -4.67% downtick recorded on Thursday. ACCESS, GUARANTY, and UBA were the most active to boost market turnover.
- AFRINSURE leads the list of active stocks that recorded an impressive volume spike at the end of today’s session.
- Market breadth closed positive as NASCON led 20 Gainers as against 6 Losers topped by NNFM at the end of today’s session – an improved performance when compared with the previous outlook.
Top gainers
- NASCON up 10.00% to close at N14.3
- PZ up 7.32% to close at N4.4
- ZENITHBANK up 1.69% to close at N21
- GUARANTY up 1.50% to close at N30.45
- DANGCEM up 0.67% to close at N151
Top losers
- NNFM down 9.89% to close at N4.19
- NPFMCRFBK down 4.29% to close at N1.34
- HONYFLOUR down 4.21% to close at N0.91
- UNIONDAC down 3.70% to close at N0.26
- VITAFOAM down 3.23% to close at N6
Outlook
Nigerian bourse continued its bullish run amid a shutdown of economic activities at Nigeria’s economic nerve center Lagos and Rivers amid ongoing curfew put in place in order to calm hostilities prevalent in some areas.
- Bulls seem to be rallying high amid soaring crude oil prices, and high buying pressure noticed in some Nigerian blue-chip stocks like Dangote Cement and GTBank.
- However, Nairametrics expects you to seek the advice of a certified stockbroker when choosing stocks to buy, as some of these stocks exhibit cyclic returns in principle.
Market Views
#EndSARS Bull return to Nigerian Stock Market amid Looting
The market breadth index was positive with 20 gainers against 10 losers.
ENDSARS
#EndSARS: NSE lost N113 billion Market Capitalization on Wednesday, October 21
The NSE Market Capitalization shed N113 billion from N14.983 trillion to N14.870 trillion on Wednesday
As at close of trading on Wednesday, the NSE Market Capitalization shed N113 billion from N14.983 trillion to N14.870 trillion.
The demand for Equities drastically reduced on the trading floor of the NSE, as the market reacted to the prevailing tensed security situation arising from the hijacked #EndSARS protests in Lagos, resulting in the loss of lives and vandalization of private and public owned properties.
READ: #EndSARS protests dampen market liquidity at Nigerian Stock Market
The lull in the market, undoubtedly, was not unconnected with the disposition of most investors, who rather than investing, showed more concern about the safety of their investments, as well as observing the government’s next line of action in handling the lingering security situation.
The NSE All-Share Index also declined by 0.75% from 28,665.82 points to 28,449.49 points.
READ: #EndSARS: Those responsible for human rights violations must be held accountable – Canadian Govt
What they are saying
According to the Director-General of NECA, Mr. Timothy Olawale, “Protest is legal and a fundamentally guaranteed right of Nigerians to draw government’s attention to the need to take drastic action as regards reforms in all areas of our national life. However, it is important that the economy should not be brought to its knees in the process. The economy is in tatters, facing the threat of a second recession and unemployment rising to an unmanageable level, the need to stop the slide is not only urgent, but important. A consequential effect of the hindered capacity of businesses to function is the higher unemployment rate, further reduction in disposable income of those left in employment, heightened insecurity with the risk of hoodlums hijacking the peaceful protest among others.”
READ: #EndSARS Protest has cost Nigeria N700 billion in 12 days – LCCI
The Lagos Chamber of Commerce and Industry (LCCI) estimated that the protests has cost the economy over N700 billion (about $1.8bn in losses). According to the President of LCCI, Mrs. Toki Mabogunje, her group was concerned about the negative impact of the development on business activities and said, “These actions have been at great cost to the economy and the welfare of Nigerian citizens. It should be noted that our economy is still reeling from the shocks of the COVID-19 pandemic and struggling to recover from its devastating effects.”
Explore Data on the Nairametrics Research Website
COVID-19 Update in Nigeria
Update: Suspected hoodlums looting Palms Mall, Shoprite in Ilorin
#EndSARS: Coca-Cola donates N20 million to cover medical bills of victims
Lagos to support owners of looted, vandalised stores
NB Plc to raise additional N20 billion from its N100 billion Commercial Paper
COVID-19 Update in Nigeria
Daily Parallel Market Exchange Rate – ₦461/$1
Covid-19: US FDA grants full approval to remdesivir as first vaccine to treat coronavirus
CBN reviews appointment requirements for CCOs in Banks
#ENDSARS: Insurance firms brace up for claims
