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.
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.
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
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
ARDOVA PLC up 7.73% to close at N12.55
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
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.
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%.
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:
- 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.
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:
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.
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.
- 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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