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NSE’s market capitalization rises to N13.2 trillion, as investors gain N46 billion

29 equities appreciated in price during the week, lower than 31 equities in the previous week.

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The Nigerian bourse ended the week cumulatively on a bullish note. The All-Share Index and the NSE market capitalization appreciated by 0.35% to close the week at 25,309.37 and N13.203 trillion, respectively. Investors gained N45.65 billion.

A total of 1.072 billion shares valued at N7.384 billion were traded this week in 16, 684 deals. This is a contrast to to the 950.414 million shares valued at N10.123 billion that exchanged hands last week in 16,647 deals.

The Financial Services industry (measured by volume) led the activity chart with 586.761 million shares valued at N4.022 billion traded in 8,483 deals; thus contributing 54.76% and 54.47% to the total equity turnover volume and value, respectively.

READ: Naira devaluation would affect our profit margins – Flour Mills

The Conglomerates Industry followed with 307.744 million shares worth N799.159 million traded in 1,010 deals. In the third place was the Consumer Goods industry, with a turnover of 50.170 million shares worth N968.272 million in 3,018 deals.

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Trading in the top three equities – Transnational Corporation of Nigeria Plc, UACN Plc, and United Bank for Africa Plc (measured by volume) –accounted for 396.337 million shares worth N1.373 billion in 1,845 deals; thereby contributing 36.99% and 18.59% to the total equity turnover volume and value, respectively.

29 equities appreciated in price during the week, lower than 31 equities in the previous week. Also, 36 equities depreciated in price, higher than 27 equities in the previous week, while 98 equities remained unchanged, lower than 105 equities recorded in the previous week.

READ: Dangote Sugar joins losers’ bandwagon as NSE closes bearish

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Top gainers

  • UNIVERSITY PRESS PLC up 31.45% to close at N1.63
  • FTNCOCOA PROCESSORS PLC up 20.00% to close at N0.24
  • CHAMPIONBREW. PLC.up 19.23% to close at N0.93
  • NEMINSURANCE PLC 1.87 2.15 0.28 14.97% to close at N2.15
  • PZ CUSSONS NIGERIA PLC. 3.85 4.20 0.35 9.09% to close at N4.20
  • UNITYBANK PLC 0.52 0.56 0.04 7.69% to close at N0.56
  • AXAMANSARDINSURANCE PLC 1.71 1.84 0.13 7.60% to close at N1.84
  • UNILEVERNIGERIA PLC. 13.95 15.00 1.05 7.53% to close at N15.00
  • WAPICINSURANCE PLC 0.33 0.35 0.02 6.06% to close at N0.35
  • FCMBGROUP PLC. 2.03 2.15 0.12 5.91% to close at N2.15

Top Losers

  • BETA GLASS PLC. down 9.99% to close at N55.40
  • ARBICOPLC. down 9.52% to close at N1.14
  • C& I LEASING PLC. down 9.09% to close at N4.00
  • CONSOLIDATEDHALLMARK INSURANCE PLC down 8.11% to close at N0.34
  • CUTIXPLC. down 7.89% to close at N1.75
  • FIDSONHEALTHCARE PLC down 7.25% to close at N3.71
  • NEIMETHINTERNATIONAL PHARMACEUTICALS PLC down 7.00% to close at N1.86
  • GUINNESSNIG PLC down 6.91% to close at N14.15
  • AFRICAPRUDENTIAL PLC down 6.67% to close at N4.20
  • TRANSNATIONALCORPORATION OF NIGERIA PLC down 6.56% to close at N0.57

READ: E-payments ecosystem continues to show promise

Outlook

The Nigerian bourse ended the week cumulatively bullish against all odds. This impressive result was triggered by significant buying pressure in notable stocks like UNILEVER, PZ, and WAPIC Insurance.  Nairametrics also took note of impressive gains recorded in some tier-2 bank stocks like FCMB, UNITY BANK.

However, Nairametrics recommends you seek the advice of a registered stockbroker when choosing stocks to buy.

Olumide Adesina is a France-born Nigerian. He is a Certified Investment Trader, with more than 15 years of working expertise in Investment Trading and Financial Market Analysis. Member of the Chartered Financial Analyst Society. You can follow Olumide on Twitter @tokunboadesina or email [email protected]

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Market Views

Google fired up, post strong advertising growth

Google fired up on all cylinders as high as 9% in after-hours trading as it smashed many stock analysts’ predictions.

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Google set to extend footprints with acquisition of smartwatch company, Fitbit  , Google wants to start banking with you ,Google partners Flutterwave to train 5,000 merchants, Google to pay Online publishers for high quality contents

Google parent company Alphabet was fired up on all cylinders. It gained as much as  9% in after-hours trading, after it smashed many stock analysts’ predictions for both revenue and earnings in its Q3 results, showing strong growth in ad revenue amid the ravaging COVID-19 virus attacks.

READ: Google to pay online publishers for high quality contents

READ: Oracle wins bid to acquire TikTok’s US operations after Microsoft offer was rejected

What you should know

Highlights of Q3 results

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  • Earnings per share: $16.40 vs $11.29 expected.
  • Revenue: $46.17 billion vs $42.90 billion expected.
  • Google Cloud: $3.44 billion vs. $3.32 billion expected.
  • YouTube ads: $5.04 billion vs. $4.39 billion expected.
  • Traffic acquisition costs (TAC): $8.17 billion vs. $7.66 billion expected.

READ: Biggest IPO: World’s biggest Fintech plans to raise $34 billion 

At the time of drafting this report, the world’s tech powerhouse, Google had a valuation of over a trillion-dollar and was trading at $1,567.24 with its Price/Earning Ratio standing at 32.91.

  • However, Google’s parent company disclosed its revenue from “Other Bets,” which includes its subsidiaries outside of Google like the self-driving car company Waymo and Life Sciences business – Verily, brought in $178 million compared to $155 million a year ago.
  • Meanwhile, Other Bets showed an operating loss of $1.10 billion, up from $941 million a year ago.

READ: Nike stocks post gains, women’s apparel division grow by 200%

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What they are saying
The top brass of Google including its CEO, Sundar Pichai, and Wall street’s Ruth Porat, CFO of Google, gave valuable insights on why the most popular search engine company performed extremely well.

“We had a strong quarter, consistent with the broader online environment,” said Sundar Pichai, Chief Executive Officer of Alphabet and Google.

“It’s also a testament to the deep investments we’ve made in AI and other technologies, to deliver services that people turn to for help, in moments big and small.

READ: BTC bounty: 69,000 Bitcoins worth $700 million waiting for you

Ruth Porat, Chief Financial Officer of Alphabet and Google, said,

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“Total revenues of $46.2 billion in the third quarter reflect broad-based growth led by an increase in advertiser spend in Search and YouTube, as well as continued strength in Google Cloud and Play.

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“We remain focused on making the right investments to support long-term sustainable value.”

READ: Presco Plc projects N24.53 billion turnover in Q4 2020

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Market Views

Apple drops 4%, iPhone sales slump

Apple stock dropped over 4% in extended trading – trading at $110.45.

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U.S stock futures trade flat, Apple regains $2 trillion market value, Apple iPhone 11, Tax battle: Apple challenges $14 billion court case , Apple to pay $500 million settlement in lawsuit over slow iPhones, Apple supplier Foxconn to reopen manufacturing base in China, Apple donates 10 million face masks to healthcare workers, App developers can now challenge Apple store guidelines 

Apple the world’s biggest tech company reported its Q4 earnings, showing its iPhone sales slumped more than 20% year-over-year – coupled with no guidance on future earnings led the stock to drop momentarily after results were released.

Also weighing down on Apple shares is the bias that the lack of fiscal Q1 2021 guidance from the world’s most valuable company, means that stock traders and global investors don’t get a hint at how Apple is performing, as regards sales of its iPhone 12 – which went on sale this month.

READ: Apple drops 2%, iphone 12 not exciting

What you should know

Here’s how Apple did versus analyst expectations via Refinitiv estimates:

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  • iPhone revenue: $26.44 billion vs. $27.93 billion estimated, down 20.7% YoY
  • EPS: 73 cents vs 70 cents estimated
  • Revenue: $64.7 billion vs $63.70 billion estimated, up 1% YoY
  • Mac revenue: $9.0 billion vs. $7.93 billion estimated, up 28% YoY
  • iPad revenue: $6.8 billion vs. $6.12 billion estimated, up 46% YoY
  • Services revenue: $14.55 billion vs. $14.08 billion estimated, up 16.3% YoY
  • Other Products revenue: $7.88 billion vs. $7.40 billion estimated, up 20.9% YoY
  • Gross margin: 38.2% vs. 38.1% estimated

At the time of writing this report, Apple stock dropped over 4% in extended trading – trading at $110.45. The company has a valuation hovering at about $1.972 trillion, making it the most valuable technology company on this planet.

READ: Nestle Nigeria: Rising cost slash profits

While Apple shares are falling amid the relatively impressive result, it recorded weak sales earning for Apple’s second most valuable market in China. Sales in greater China – which includes Taiwan, Hong Kong, plunged to $7.95 billion from $11.13 billion.

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What they are saying

Apple’s CEO, Tim Cook gave deep insights on his company’s product performance, as the Mac. services and iPad posted impressive gains amid the ravaging COVID-19 virus onslaughts.

“Apple capped off a fiscal year defined by innovation in the face of adversity with a September quarter record, led by all-time records for Mac and Services,” said Tim Cook, Apple’s CEO.

READ: CAP Plc: Increase in investment income, others boost revenues

“Despite the ongoing impacts of COVID-19, Apple is in the midst of our most prolific product introduction period ever, and the early response to all our new products, led by our first 5G-enabled iPhone lineup, has been tremendously positive.

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“From remote learning to the home office, Apple products have been a window to the world for users as the pandemic continues, and our teams have met the needs of this moment with creativity, passion, and the kinds of big ideas that only Apple can deliver.”

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Exclusives

Lafarge, Nigerian Breweries, Stanbic IBTC, others top best performing stocks in Q3 2020

Nairametrics reviews the best stocks in Q3 2020, judging by their performance.

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Lafarge, Nigerian Breweries, Stanbic IBTC, others top best performing stocks in Q3 2020

Lafarge Africa, Nigerian Breweries, Stanbic IBTC, United Capital, and FTN Cocoa made the list of best-performing stocks in the third quarter of 2020 (July – Sept’20).

The third quarter of the year was a recovery period for the Exchange, as the All Share Index grew by 9.61% to close the gap caused by the negative performance it endured in the first quarter of the year – during the heat of the COVID-19 pandemic. It also recorded a 14.92% positive growth in the second quarter.

READ: Mixed fortunes for Nigerian Breweries Plc as the Brewery sector moribunds

READ: UPDATED: Nigeria received $1.29 billion capital inflows in Q2 2020, down by 78.6%

As Company stocks is one of the popular means of short-term investments in Nigeria and a look at persistent inflationary pressures; it is imperative to assess the performances of the stocks listed on the exchange during the covid era, to ascertain the profitability of investors in this period.

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To determine the best-performing stocks, we looked at the stock prices as of the last trading day in June 2020 and compared to their prices as of the last trading day of September 2020. Here are the top 5:

READ: MTN shareholders have made approximately N1 trillion since April 2020


Lafarge Africa Plc

The Cement manufacturing company grew its stock value by as much as 50% between July and September 2020. As at 30th June 2020, the stock of Lafarge was worth N10 per unit of share but grew to N15 as at the last trading day of September – with a market capitalization of N241.6 billion.

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A cursory look at the Q2 2020 financial performance, shows a 5% year-on-year decrease in revenue generated. However, a reduced cost of sales helped improved the company’s gross profit by 10% and a subsequent 78% increase in profit before tax at N19.38 billion.

READ: PMI: Nigeria’s manufacturing sector gains momentum in November 

READ: These industries drove business activities in September

June 30th – N10

September 30th – N15

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Return – 50%

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Ranking – First


Nigerian Breweries Plc

The second on the list is the brewery giant, Nigerian Breweries – the makers of Star Lager, Fayrouz, Goldberg, and many other consumables. It grew its stocks by 35.73% from N36.1 as of 30th of June to N49 per share at the end of Q3 2020. The market capitalization also closed at N391.8 billion as at the review period, being the second most capitalized consumer goods firm – only behind Nestle Nigeria.

A look at the Q2 2020 financials, shows that the company endured a downturn, mostly affected by the COVID-induced lockdown, which halted all social gatherings, as it posted a profit before tax of N69.8 million – 99% decline compared to N7.95 billion recorded in the corresponding quarter of 2019.

However, with the lifting of lockdown nationwide, the outlook for the Q3 and Q4 2020 appears to be positive, as investors have shown confidence in the brand, which has translated into a positive stock performance in the quarter.

READ: GDP: Nigeria’s manufacturing sector on tight ropes

June 30th – N36.1

September 30th – N49

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Return – 35.73%

Ranking – Second

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Stanbic IBTC Plc

The third most capitalized bank on the stock exchange is also the third on the list of best performing stocks in Q3 2020, growing its stock by 33.88% from N30.25 per unit of share recorded as of June 30th to N40.5 at the end of trading in September – with a total market capitalization of N449.8 billion.

In the same vein, the Q2 performance of Stanbic IBTC indicates an 11% increase in gross earnings, which permeates into 32.2% increase in profit before tax – from N21.1 billion recorded in Q2 2019, as against N27.9 billion in the review period.

READ: Heineken scoops more Nigerian Breweries shares in insider disclosure

June 30th – N30.25

September 30th – N40.5

Return – 33.88%

Ranking – Third


United Capital Plc

The financial and investment service firm recorded a 30.59% increase in its stock value, as it moved from N2.55 per unit of share as at June 30th to N3.33 as at the end of September. This growth places United Capital in fourth position, as one the best performing stocks between July and September 2020.

The investment firm displayed firm resolve against the effects of COVID-19 in the second quarter of the year – as it posted a profit before tax of N1.5 billion, as against N1.2 billion reported in the corresponding quarter of 2019. This indicates a 22.9% increase in profit.

READ: Custodian Investment Plc posts Profit After Tax of N1.5 billion in Q3 2020

READ: NFF receives $1 million from FIFA as COVID-19 palliative

June 30th – N2.55

September 30th – N3.33

Return – 30.59%

Ranking – Fourth


FTN Cocoa Processors Plc

A unit of FTN Cocoa shares was valued at 20 kobo as at June 30th. However, it grew by 30% to N26 kobo as at the end of trading on 30th September 2020, leaving its total market capitalization at N572 million.

Data obtained from Nairalytics – the research arm of Nairametrics, showed that FTN Cocoa has not released its financials since Q1 2019. However, the cocoa processing company was able to post a positive stock performance in the third quarter of the year to sit fifth on the list.

READ: Nigeria’s manufacturing sector contracts for 5th consecutive month – CBN 

The company was formerly registered as Fantastic Traders Nigeria Limited, a Limited Liability Company, which was incorporated in 1991. It commenced cocoa processing business in a third-party arrangement (Toll Processing) with Stanmark cocoa processing company limited in 1995. They converted cocoa beans into cocoa butter and cocoa cake/powder, and later extended their activities to Ile-oluji, Cocoa Cooperative etc.

READ: Togo, Niger, Benin remit N2.04 billion to Nigeria for power supply

June 30th – N0.20k

September 30th – N0.26k

Return – 30%

Ranking – Fifth


Bubbling Under

The following stocks make up the rest of the top 10 in descending order:

6. Guaranty Trust Bank Plc

7. University Press Plc

8. Eterna Plc

9. Unity Bank Plc

10. Fidson Healthcare Plc

Explore some Advanced Financial Calculators on Nairametrics


Bottom line: With a double-digit growth in the following stocks, Investors who bought these stocks would be delighted to see their investments appreciate during this period and will look forward to gaining more in the subsequent periods.

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