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Stock Market

Nigerian bourse loses 0.06% WoW, triggered by losses from NB, CONOIL, JULIUS BERGER

A total turnover of 1.016 billion shares worth N7.436 billion in 18,092 deals was traded this week.

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The Nigerian stock market ended the week cumulatively on a bearish note. The NSE All-Share Index and Market Capitalization both depreciated by 0.08% to close the week at 24,287.66 and N12.670 trillion respectively.

All other indices finished lower, with the exception of NSE Lotus II and NSE Industrial Goods Indices, which appreciated by 0.94% and 0.52% respectively while NSE ASeM closed flat.

A total turnover of 1.016 billion shares worth N7.436 billion in 18,092 deals was traded this week by investors on the floor of the Exchange, in contrast to a total of 901.542 million shares valued at N13.453 billion that exchanged hands last week in 18,676 deals.

The Financial Services industry (measured by volume) led the activity chart with 784.322 million shares valued at N3.305 billion traded in 10,592 deals; thus contributing 77.23% and 44.45% to the total equity turnover volume and value respectively.

The Oil and Gas industry followed with 61.822 million shares worth N418.191 million in 984 deals. In the third place was the Consumer Goods industry, with a turnover of 42.999 million shares worth N1.102 billion in 2,848 deals.

GTBank 728 x 90

Trading in the top three equities namely Sterling Bank Plc, FCMB Holdings Plc and FBN Holdings Plc (measured by volume) accounted for 416.989 million shares worth N791.078 million in 2,752 deals, contributing 41.06% and 10.64% to the total equity turnover volume and value respectively.

26 equities appreciated in price during the week, higher than 25 equities in the previous week. 36 equities depreciated in price, higher than 33 equities in the previous week, while one 101 equities remained unchanged, lower than 105 equities recorded in the previous week.

Top gainers

CUTIX PLC up 10.30% to close at N1.82

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NPF MICROFINANCE BANK PLC up 10.00% to close at N1.32

SUNU ASSURANCES NIGERIA PLC up 10.00% to close at N0.22

IKEJA HOTEL PLC up 9.80% to close at N1.12

PRESCO PLC up 9.28 to close at N49.45

NEIMETH INTERNATIONAL PHARMACEUTICALS PLC up 7.91% to close at N1.50

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ARDOVA PLC up 7.73% to close at N12.55

Stanbic IBTC

JAIZ BANK PLC up 7.69% to close at N0.56

CADBURY NIGERIA PLC up 7.41% to close at N7.25

LIVESTOCK FEEDS PLC up 7.14 % to close at N0.60

Top losers

LINKAGE ASSURANCE PLC down 14.89% to close at N 0.40

NIGERIAN BREW PLC down 11.89% to close at N30.00

WAPIC INSURANCE PLC down 11.43% to close at N0.31

CONOIL PLC down 10.58% to close at N16.90

11 PLC down 9.97% to close at N173.40

ARBICO PLC down 9.94% to close at N1.54

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JULIUS BERGER NIG PLC down 9.88% to close at N15.50

ETERNA PLC down 9.38% to close at N2.03

ECOBANK TRANSNATIONAL INCORPORATED down 9.38% to close at N4.35

UNITY BANK PLC down 8.16% to close at N0.45

Outlook

The Nigerian bourse dropped slightly cumulatively in the trading week that ended on the 17th of July 2020, as falling crude oil prices in the short term, weighed heavily on the energy index. Despite decent buying pressures on Nigerian bank stocks, some institutional investors stayed on the sidelines as recent inflation figures released showed an uptrend; the economic uncertainty concerns strengthened among stock traders.

Nairametrics recommends that you seek the advice of a certified financial advisor when choosing to buy stocks.

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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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:

GTBank 728 x 90
  • 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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Stock Market

Fidelity Bank’s Regional Head purchases additional 1 million shares

Fidelity Bank Nigeria Plc has announced the purchase of additional 1 million units of the Bank’s shares by one of its managers.

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Fidelity Bank non-Executive Director purchases 3.1 million shares

Fidelity Bank Nigeria Plc has announced that one of its General Manager/Regional Head, Mr. Kenneth Opara, has purchased additional 1 million units of the Bank’s shares worth approximately N2.8 million.

In a disclosure, signed by the Bank’s Secretary, Ezinwa Unuigboje, the transaction occurred in two tranches with an average share price of N2.78 per unit.

READ: ValuAlliance distributes value fund of N10 per unit for H1, 2020

What you should know

Further checks by Nairametrics revealed that the shares purchased in two tranches were transacted at different prices.

GTBank 728 x 90
  • In the first tranche, 6,000 units were purchased at the price of N2.78 per unit, totalling N16,680.
  • In the second tranche, 994,000 units were bought at N2.79, amounting to N2,773,260
  • The transaction occurred on the 25th of November, 2020 and was reported inline with the rules of the Nigerian Stock Exchange.
  • Nairametrics earlier reported that another Fidelity Bank Non-Executive Director had purchased additional 1 million units of the Bank’s share.

READ: CBN buys record high $4.19 billion in continuing strategy of defending the naira.

What this means

The recent purchase by top insiders of the bank could portray an optimistic outlook on the bank’s profit in the near future.

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Also, the surge might also be attributed to a recent disclosure by the bank that it will close the window for internal purchase of its shares by December 1, 2020, until 24 hours after the release of its audited financials.

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Spotlight Stories

MTN, UBA, UNILEVER tick up, investors gain N43 billion

With 18 gainers and 16 losers, most sectoral indices rode on the back of gains by mid and large-cap stocks to close positive.

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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

Nigerian Stocks continued its bullish run at the last trading session of the week. The Nigerian All-Share index rose by 0.24%. Consequently, the year-to-date return advanced to 29.94%.

The All Share Index (ASI), advanced from its opening index of 34,803.00 points to close at 34,885.51 points. The aggregate market value of all quoted equities also increased from its opening value of N18.184 trillion to close the week at N18.227 trillion.

  • A total volume of 190.2 billion units of shares, valued at N3.33billion exchanged hands in 3,976 deals. TRANSCORP was the most traded shares by volume with 37.4 million units, while MTNN topped by value at N1.79billion.
  • The NSE Consumer Goods and Oil & Gas indexes leaped by 0.14 and 0.06% respectively. On the contrary, the NSE Insurance and Banking Indexes depreciated by 1.93 and 0.23% respectively while the Industrial Goods Index closed flat.
  •  With 18 gainers and 16 losers, most sectoral indices rode on the back of gains by mid and large-cap stocks to close positive.  NAHCO (+9.09%) was the top gainer today, while PORTPAINT (+9.09%) led the laggards today.

Top gainers

  1. NAHCO up 9.09% to close at N2.4
  2. FIDSON up 7.25% to close at N5.47
  3. UNILEVER up 5.77% to close at N13.75
  4. UBA up 1.82% to close at N8.4
  5. MTNN up 1.31% to close at N155

Top losers

  1. PORTPAINT down 8.42% to close at N2.61
  2. MANSARD down 6.40% to close at N2.34
  3. NEM down 3.14% to close at N2.47
  4. GUINNESS down 1.55% to close at N19
  5. GUARANTY down 1.13% to close at N35

Outlook

Nigerian stocks recorded gains amid falling oil prices prevailing at the US trading session on Friday.

  • Major gains by large capitalized stocks that include MTN Nigeria, Unilever, UBA added N43 billion to the Nigerian Stock market capitalization.
  • Nairametrics envisage cautious buying amid significant price volatility currently in play at the Nigerian Stock market.

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