Stock Market
SEPLAT, STANBIC , GUINNESS surge ,Investors gain N182 Billion WoW
This was triggered by buying pressures from institutional investors on blue-chip stocks.
The Nigerian bourse ended the week on a strong bullish run. It recorded gains for five straight days as the All-Share Index and Market Capitalization both appreciated by 1.41% to close the week at 25,041.89 and N13.063 trillion respective. Investors Gained N181.62billion on a week to week basis.
A total turnover of 1.065 billion shares worth N10.798 billion in 20,482 deals was traded this week by investors on the floor of the Exchange, in contrast to a total of 421.984 million shares valued at N5.337 billion that exchanged hands last week in 11,801 deals.
The Financial Services industry (measured by volume) led the activity chart with 677.301 million shares valued at N5.070 billion traded in 10,386 deals; thus contributing 63.59% and 46.95% to the total equity turnover volume and value respectively.
READ MORE: The week investors stayed on the sidelines at Nigeria’s stock market
The Conglomerates Industry followed with 153.384 million shares worth N580.216 million in 894 deals. The third place was the Industrial Goods industry, with a turnover of 57.404 million shares worth N861.263 million in 1,671 deals.
Trading in the top three equities namely FBN Holdings Plc, UACN Plc, and Access Bank Plc.(measured by volume) accounted for 320.196 million shares worth N1.802 billion in 2,639 deals, contributing 30.06% and 16.69% to the total equity turnover volume and value respectively.
All other indices finished higher with the exception of the NSE Insurance Index which depreciated by 0.28% while the NSE ASeM closed flat.
READ ALSO: Guinea Insurance Plc gives optimistic Q3 earnings forecast in spite of COVID-19
Forty-one (41) equities appreciated in price during the week, higher than twenty-four (24) equities in the previous week. Eighteen (18) equities depreciated in price, lower than twenty-eight (28) equities in the previous week, while one hundred and four (104) equities remained unchanged, lower than one hundred and eleven (111) equities recorded in the previous week.
Top 10 gainers
- NEIMETH INTERNATIONAL PHARMACEUTICALS PLC up 21.33% to close at N1.82
- UACN PROPERTY DEVELOPMENT COMPANY PLC up 18.52% to close at N0.96
- FLOUR MILLS NIG. PLC. up 13.20% to close at N19.30
- SEPLAT PETROLEUM DEVELOPMENT COMPANY PLC up 12.83% to close at N350.00
- STANBIC IBTC HOLDINGS PLC up 10.00% to close at N33.00
- VALUEALLIANCE VALUE FUND up 9.98% to close at N113.50
- UNIVERSITY PRESS PLC. up 9.90% to close at N1.11
- AXAMANSARD INSURANCE PLC up 9.72% to close at N1.58
- FIDSON HEALTHCARE PLC up 8.57% to close at N3.42
- GUINNESS NIG PLC up 8.46% to close at N14.10
READ MORE: UPDC reaps benefits of NSE’s resilience with listing of N16 billion Rights Issue
Top 10 Losers
- U A C N PLC. down 11.43% to close at N6.20
- TOTAL NIGERIA PLC. down 9.91% to close at N79.10
- ARDOVA PLC down 9.67% to close at N12.15
- CUSTODIAN INVESTMENT PLC down 9.09% to close at N5.00
- SUNU ASSURANCES NIGERIA PLC. down 9.09% to close at N0.20
- CONSOLIDATED HALLMARK INSURANCE PLC down 8.89% to close at N0.41
- MUTUAL BENEFITS ASSURANCE PLC. down 8.70% to close at N0.21
- UNILEVER NIGERIA PLC. down 8.57% to close at N11.20
- NEM INSURANCE PLC down 6.50% to close at N1.87
- LINKAGE ASSURANCE PLC down 5.00% to close at N0.38
Outlook
Nigerian bourse against all odds finished high. This was triggered by buying pressures from institutional investors on blue-chip stocks. However, it was not all blue for the Nigerian bourse as market liquidity remained relatively low.
Nairametrics recommends cautious buying on growing concerns that the recent lockdown extension by President Buhari could delay a full economic recovery in Nigeria’s major economic hubs.
Stock Market
Nigerian Stocks fire up on all cylinders, investors gain N173.62 billion
The All Share Index (ASI) gained by 1.28% to close the week at 13,754.87 points.
Nigerian bourse continued its bullish momentum on Friday as investors maintained buying pressures on major bellwether stocks.
The All Share Index (ASI) gained by 1.28% to close the week at 13,754.87 points. Investors gained N173.62 billion to close market capitalization at N13.754 trillion, thus reducing the YTD loss to -2.64%.
- A total volume of 335 million units of shares, valued at N4.27billion exchanged hands in 4,231 deals
- STERLNBANK was the most traded shares by volume at 79.5million units while ZENITHBK topped by value at N878.6million.
- Investor sentiment as measured by market breadth was positive as 22 stocks advanced against 17 decliners. NB (+9.82%) led the gainer’s chart to close the week, while NNFM (-10.00%) finished the top loser.
- Sector Performance was broadly bullish as four indexes closed in green.
- NSE Consumer Goods Index: Up by 2.45%, on price appreciation in NB (9.82%), PRESCO (+7.07%), and FLOURMILL (6.70%)
- NSE Banking Index: Improved by 2.01%, buoyed by GUARANTY (+3.85%), STANBIC (+3.58%), and ACCESSBK (+2.29%).
- NSE Industrial Index: Gained 1.58%, on WAPCO (+6.74%) and DANGCEM (+2.28%).
- NSE Insurance Index: Appreciated by 0.44%, saved by CORNERST (+9.23%).
- NSE Oil & Gas Index: Down by -0.51%, on OANDO (-9.78%).
Top gainers
- NB up 9.82% to close at N52.55
- PRESCO up 7.07% to close at N53
- FLOURMILL up 6.70% to close at N21.5
- STANBIC up 3.58% to close at N40.5
- DANGCEM up 2.28% to close at N139
Top Losers
- NNFM down 10.00% to close at N4.05
- OANDO down 9.78% to close at N2.03
- CADBURY down 5.41% to close at N7
- UACN down 3.17% to close at N6.1
- DANGSUGAR down 1.60% to close at N12.3
Outlook
Nigerian bourse continued its bullish run at the last trading session for the week amid falling prices, a strong dollar, and rising COVID-19 caseloads.
- Buying pressures in NSE30 Stocks that include Nigerian Breweries, Dangote Cement, Stanbic, and Flourmills kept Investors smiling to the bank
- Nairametrics envisage cautious buying in spite of high buying pressures lately, as market liquidity remains a growing concern.
Market Views
Apple, Microsoft gain over 1%, propels Nasdaq up
Apple and Microsoft shares rose 1% and 1.3%, respectively, to lead tech higher.
U.S tech Stocks gained higher as leading tech brands stocks that include Apple and Microsoft witnessed buying pressures significantly.
Apple and Microsoft shares rose 1% and 1.3%, respectively, to lead tech higher. Alphabet shares gained nearly 1% and Amazon advanced 0.7%. Netflix was up 0.5% and Facebook advanced 0.2%.
Explore the Nairametrics Research Website for Economic and Financial Data
The Dow Jones gained 0.2%, to settle at 26,815.44. At its session low, the Dow was down 226 points. The S&P 500 rallied up by 0.3% to 3,246.59 and the Nasdaq composite advanced 0.4% to 10,672.27.
The bullish run, however, was kept in check, as first-time claims for state unemployment benefits totaled 870,000 for the week ended Sept. 19
READ: Should I quit my job and start a business? Yes, if you pass these tests
While investors wait for the passage of the U.S stimulus package lingering at the U.S capitol, Stephen Innes, Chief Global Market Strategist at AxiCorp in a note to Nairametrics spoke on price movements in notable tech stocks, like Apple
READ: Nigerians in diaspora reveal their favourite Nigerian Stocks
“Before the street started to pick up on the more favorable stimulus overtones US equities had been climbing steadily since the open with Tech and pockets within Cyclicals/Value leading the way midday. Apple is again setting the tone for Tech. Defensives outperformed out of the gate, although the last leg up seems more Cyclical and Value-driven. Many folks think this market cannot run without Financials, so with Financials acting better and Tech finding support, one could easily make a case for a low-volume melt-up in the near term,” he said.
READ: Guinness gains on NSE despite N17 billion pre-tax loss
However, it’s critical to note that stock traders, global investors are having a tough time in September, with the major equity benchmarks falling momentarily as tech shares lose steam.
Spotlight Stories
Foreign investors demand for Nigerian stocks increases to N38.98 billion
Foreign inflow and outflow increased within the months of July and August 2020.
The demand for local stocks by foreign investors between July and August 2020, received a boost, as it increased by 12.69%, from N34.59 billion (about $89.0 million) recorded in July 2020 to N38.98 billion (about $100.81 million) as of August 2020.
Foreign inflow and outflow increased within the period under view, from N13.70 billion and N20.89 billion to N17.66 billion and N21.32 billion respectively, in the months of July and August 2020.
Explore the Nairametrics Research Website for Economic and Financial Data
However, total domestic and foreign portfolio investment decreased by 8.49%, from N103.21 billion recorded to N94.45 billion.
This is according to the NSE polls on trading figures from market operators, on their domestic and foreign portfolio investment (FPI) flows.
READ: Nigeria’s inflation rate hits 13.22% in August 2020, highest in 29 months
Year-on-Year, the performance of August 2020 (N94.45 billion), when compared with the performance in August 2019 (N121.99billion), revealed that total transactions decreased by 22.58%. In August 2020, the total value of transactions executed by Domestic Investors outperformed transactions executed by Foreign Investors, as shown in the diagram below:
Source: NSE Report, 2020.
Both Retail and Institutional investors of the domestic market recorded a decline, however, the magnitude differs. While retail transactions decreased by 18.22%, from N32.54billion to N26.61billion in the period under review. The shares of institutional investors in the domestic market decreased by 20.01%, from N36.08billion in July 2020 to N28.86billion in August 2020.
(READ MORE:DASHBOARD: The most important economic numbers in Nigeria today)
In summary, the thirteen years performance of the domestic transactions decreased by 72.30%, from N3.556 trillion in 2007 to N985bn in 2019 whilst foreign transactions increased by 53.08% from N616bn to N943bn over the same period.
Key highlights
- Total domestic transactions completed year to date (YTD) is about N731.02 billion
- Total foreign transactions completed YTD is about N470.2 billion
- Foreign inflow increased by 28.91% between July and August 2020
- Foreign outflow also increased by 2.06% between July and August 2020
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