It was a short trading week on the Nigerian Stock Exchange as it opened for just three days. The shortness is due to the observance of the public holidays (Thursday 30th and Friday 31st July 2020) declared by the Federal Government of Nigeria to mark the Eid-El-Kabir celebrations.
The NSE All-Share Index and Market Capitalization both appreciated by 1.09% to close the week at 24,693.73 and N12.882 trillion respectively.
A total turnover of 421.984 million shares valued at N5.337 billion in 11,801 deals were traded this week by investors on the floor of the Exchange, a contrast to a total of 1.350 billion shares valued at N14.433 billion that exchanged hands last week in 16,723 deals.
The Financial Services industry (measured by volume) led the activity chart with 249.588 million shares valued at N1.563 billion traded in 5,899 deals; thus contributing 59.15% and 29.29% to the total equity turnover volume and value respectively. The Consumer Goods Industry followed with 51.760 million shares worth N1.072 billion in 1,877 deals. In the third place was the Industrial Goods industry, with a turnover of 46.197 million shares worth N833.473 million in 1,489 deals.
Trading in the top three equities namely WAPCO Plc., FBN Holdings Plc. and Mutual Benefit Assurance Plc. (measured by volume) accounted for 110.114 million shares worth N685.942 million in 1,587 deals, contributing 26.09% and 12.85% to the total equity turnover volume and value respectively.
Other indices finished higher, with the exception of NSE ASeM, NSE Consumer Goods and NSE Oil/Gas Indices which depreciated by 0.06%, 0.44%, and 6.51% respectively
Twenty-four (24) equities appreciated in price during the week, lower than twenty-eight (28) equities in the previous week. Twenty-eight (28) equities depreciated in price, higher than twenty-five (25) equities in the previous week, while one hundred and eleven (111) equities remained unchanged, higher than one hundred and ten (110) equities recorded in the previous week.
- UNITY BANK PLC up 17.31% to close at N0.61
- MUTUAL BENEFITS ASSURANCE PLC up 15.00% to close at N0.23
- CORNERSTONE INSURANCE PLC up 10.00% to close at N0.55
- PRESTIGE ASSURANCE PLC up 8.70% to close at N0.50
- LAFARGE AFRICA PLC. up 7.31% to close at N11.75
- NEIMETH INTERNATIONAL PHARMACEUTICALS PLC up 7.14% to close at N1.50
- OKOMU OIL PALM PLC. up 6.31% to close at N74.95
- DANGOTE CEMENT PLC up 5.66% to close at N141.80
- ZENITH BANK PLC up 5.16% to close at N16.30
- AIICO INSURANCE PLC. up 4.44% to close at N0.94
- SMART PRODUCTS NIGERIA PLC down 31.03% to close at N0.20
- NPF MICROFINANCE BANK PLC down 16.90% to close at N1.18
- JULIUS BERGER NIG. PLC. down 12.02% to close at 15.00
- SEPLAT PETROLEUM DEVELOPMENT COMPANY PLC down 10.71% to close at N310.20
- AXAMANSARD INSURANCE PLC down 10.00% to close at N1.44
- UACN PROPERTY DEVELOPMENT COMPANY PLC down 10.00% to close at N0.81
- TOTAL NIGERIA PLC. down 9.95% to close at N87.80
- CAP PLC down 9.76% to close at N17.10
- ARBICO PLC. down 9.74% to close at N1.39
- STUDIO PRESS (NIG) PLC. down 9.55% to close at N1.80
The Nigerian bourse ended the week cumulatively on the high, as institutional investors increased their buying pressures on some notable heavyweights like DANGCEM, and ZENITH. Also, Nigeria’s major export (Brent crude) maintaining its strong support levels at $44 helped investors’ morale relatively.
However, Nairametrics envisages cautious buying, upon heightened geopolitical concerns, the resurgence of COVID-19 pandemic, and growing security instability around some of Nigeria’s economic hubs in the north.
Tesla up 500% in 2020, near $500 billion market value
The tech powerhouse is now less than $6 billion short of approaching the $500 billion market value.
Tesla, the electric car automaker, has gained 500% in 2020 and has become by far the world’s most valuable automaker in the world, despite it producing far less than Volkswagen, Toyota, or General Motors.
The tech powerhouse is now less than $6 billion short of approaching the $500 billion market value, and extending its surge since reports struck Wall Street on Tesla making its S&P 500 debut on December 21, forcing index funds to buy billions of dollars of its share.
Unsurprisingly, it became global investors’ choice amid its recent price action rising by 6% – showing a gain of over 6%. Tesla Inc. extended its rally at the most recent trading session ahead of its December debut in the S&P 500 (SPX), as it is now worth a market value of $494 billion.
Its market capitalization is higher than the Gross Domestic Product (GDP) of any African country, Nigeria – $448.1billion, South Africa – $351.4billion, Egypt – $303.2billion, Algeria – $169.98billion, Morocco – $118.7billion, Ethiopia – $96.12billion, Kenya – $95.5 billion, Angola – $94.6 billion, Ghana – $66.9 billion, Tanzania – $63.2 billion.
What you should know
Now worth $494 billion, Tesla will increase the concentration of heavyweight companies within the S&P 500. It will be the 7th most valuable company within the index, just behind Berkshire Hathaway and ahead of Visa Inc., according to Refinitiv data.
- About a fifth of the car company’s shares is owned by its Chief Executive, Elon Musk and other insiders.
- The S&P 500 is weighted by the number of companies’ stocks available on the stock market.
- The car company’s influence within the benchmark will be slightly reduced, putting it in 8 positions, just behind Johnson & Johnson, with an equivalent of about 1% of the S&P 500 index.
Nigerian stocks end near stalemate, despite gains from Nestle, Airtel, Dangote
A total volume of 568million units of shares, valued at N7.32billion exchanged hands in 8,928 deals.
Nigerian bourse ended Monday’s trading session near a stalemate, as the All Share Index dropped slightly by 0.04% to close at 34,121.78 points. Thus, the YTD performance currently stands at 27.56%.
A total volume of 568million units of shares, valued at N7.32billion exchanged hands in 8,928 deals. ZENITHBANK was the most traded shares by volume and valued at 79.7million units and N1.91billion.
- Market sentiment was negative, as market breadth came in at 9.2x with 46 decliners and 5 advancers.
- The sectorial performance was bearish as Banking, Consumer Goods, Insurance, Oil & Gas were down by 4.72%, 2.07%, 2.07%, and 1.62% respectively, while the Industrial index closed as the lone gainer, up by +2.72%.
- NSE Banking Index: Down by -4.72%, on sell-offs in WEMABANK (-9.09%), ACCESS (-8.14%), UBA (-6.10%), and ZENITHBANK (-5.66%).
- NSE Consumer Goods Index: Fell by -2.07%, due to sustained losses in GUINNESS (-9.55%), PZ (-9.43%), and FLOURMILL (-8.43%).
- NSE Insurance Index: Dipped by -2.07%, on price decline in CUSTODIAN (-10.00%), CHIPLC (-9.38%), and LINKASSURE (-9.09%).
- NSE Oil & Gas Index: Dipped by -1.62%, as ARDOVA (-10.00%) and OANDO (-9.97%) declined in price.
- NSE Industrial Index: Up by +2.72% due to the price appreciation in BUACEMENT (+4.77%) and DANGCEM (+3.42%)
- AIRTELAFRI up 5.00% to close at N500
- BUACEMENT up 4.77% to close at N53.45
- DANGCEM up 3.42% to close at N193.2
- NESTLE up 1.82% to close at N1400
- NEM up 0.78% to close at N2.6
- ARDOVA down 10.00% to close at N13.5
- WAPCO down 10.00% to close at N22.05
- GUINNESS down 9.55% to close at N18
- FLOURMILL down 8.47% to close at N25.4
- STANBIC down 8.02% to close at N39.55
Nigerian Stocks began the first trading session on a slightly bearish note, amid soaring oil prices prevailing at the U.S trading session. At the time of writing this report, Brent crude was trading above $45/barrel.
- That said, significant gains seen from NSE30 Stocks that include Nestle, Airtel, Dangote, BUACement couldn’t stop Nigerian stocks from closing slightly red, as sell-offs intensified among top brewery stocks and medium capitalized stocks.
- Nairametrics envisage cautious buying, on the sentiments that recent price action shows further market correction in the near term, however, stock traders anticipate the bullish run is still in play for the long term.
Bank stocks remain a buy amid uncertainty prevailing Nigeria’s economy
The All-Share Index and Market Capitalization depreciated by 2.57% to close the week at 34,136.82 and N17.838 trillion respectively.
Nigerian Stocks ended the previous week cumulatively on a bearish note.
What we know: The All-Share Index and Market Capitalization depreciated by 2.57% to close the week at 34,136.82 and N17.838 trillion respectively.
In the previous week, Nigerian Stocks had its bullish run halted arbitrarily on the bias that stock traders and investors intensified their profit, taking into account the significant amount of weak earnings recorded by Nigerian Banks.
It was unsurprising to see four Nigerian banks in the top 10 losers chart for the week, as investors fretted on such performance on the basis that Nigeria’s banking industry remains the most vibrant after Agriculture, Energy in Africa’s largest economy.
That said, In the coming week stock traders are expected to be very cautious amid recent macros showing Africa’s largest economy has dipped into a recession in Q3 as oil production dropped to a four-year low.
Abdul-Rasheed Oshoma Momoh, Head of Capital Market in TRW Stockbrokers Ltd, in a phone chat interview with Nairametrics, said Nigerian markets are presently playing out like a ping pong ball the momentum has slowed down for now.
More of consolidation now as investors buy into good stocks that have a light at the end of the tunnel. (Zenith Bank, UBA, GTBank, First Bank, Access Bank) taking into consideration he doesn’t see any new highs now till 2021.
Bottom- line: Profit taking is expected to remain at least in the near term, taking into consideration Nigeria is officially in a recession, meaning a lot needs to be done to get Africa’s biggest economy on its foot, as such development could trigger more profit-taking in spite of the positive trend playing relatively at Africa’s best-performing equity market.