The Nigerian equities market has in recent weeks recorded impressive gains, as investors take positions in blue-chip stocks.
The All-Share Index and market capitalization, on Wednesday, gained 0.50%, to settle at 25,783.02 points and N13.474 trillion respectively, reducing the YTD loss to -3.92%.
As the COVID-19 virus continues to rattle global financial markets, including the Nigerian bourse, it became prevalent to seek diverse opinions about Nigerian equities. In this case, that of Nigerians living abroad.
Nairametrics interviewed Investment Experts, Traders and an Engineer, seeking their opinions on what Nigerian Stocks they will presently consider for a BUY.
Their responses were varied, ranging from top Banking, Industrial, and unsurprisingly, Agriculture-based stocks.
London based, Lukman Otunuga, the Senior Research Analyst at ForexTime (FXTM) said,
“In a world where the coronavirus menace has created widespread chaos, disruptions, and uncertainty, no prisoners were taken.
“Oil has been one of the biggest causalities of COVID-19, down roughly 40% year-to-date (YTD), as worldwide restrictions a few months back, crippled demand for the commodity. With a fair chunk of Oil & Gas companies losing billions of dollars to the pandemic, their respective stock prices declined considerably.
“Big names in Nigeria such as Oando, LekOil, Seplat Petroleum Development Company, and 11 Plc, among others, have seen their shares depreciate between 20 to 40% + YTD. However, if Oil rebounds on stabilizing global economic conditions and a possible breakthrough in finding a COVID-19 vaccine, this could provide an opportunity for Oil & Gas companies to roar back to life – ultimately pushing stocks higher.”
According to France-based Computer Engineer, and COO, Feldel Gas Limited, Oladayo Oladele,
“Generally speaking, I will be interested in stocks in the IT/Telecoms sector, which includes MTN Nigeria, Airtel, because Nigeria has a digital economy that is growing at an exponential rate. Lots of tech startups like PiggyVest, Paystack, and Flutterwave are fast becoming internationally relevant, not forgetting agriculture-based stocks like Okomu oil, as the border closure by President Buhari’s administration seems to increase their profitability in the near term. Finally, FMCG stocks, like Nestle and Unilever, as significant buying pressures from their offshore-based parent companies, shows a high room for more upside.
“My bias is that, no matter how unstable Nigeria’s economy looks presently, these domains are the least affected in my opinion.”
In the words of Scotland-based Market Analyst, and an Energy Trader, Dapo-Thomas Opeoluwa, “When it comes to picking stocks from overseas, it’s a bit difficult, because we do not know how the companies are faring in the country. Sometimes we go with Warren Buffet’s recommendation of investing in a good business.
“So, to be on the safe side, we invest in the household names that give us dividends, and hopefully capital appreciation in the long run.
“I invest in Zenith; GTB; Stanbic; Sahco PLC (which are particularly promising, because of its cheap price and high potential, given how tourism might pick up, the aviation company might benefit); and Dangote Plc.
“Sometimes we go through the financials of these companies, and check if the businesses are healthy and if they’ve got what we call ‘moat’.
“Notably, because our stock exchange isn’t as fundamentally driven, as it is in England or the United States, we can’t trade stocks like we do overseas.”
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It is imperative to note that, most of the professionals interviewed seem unsurprisingly attracted to banking, energy dominated stocks, and most especially, blue-chip stocks on their prevalence to Nigeria’s economy.
Many Nigerian stocks still look greatly undervalued, and exhibit high potential for more upsides, in terms of their present price action and also attraction attributes to foreign portfolio investors in the long term.
Lekki Tollgate Shooting: Sanwo-Olu insists on 2 deaths, no bloodstains at the scene
Governor Sanwo-Olu has reiterated that only two people were killed in last week’s shooting at the Lekki toll plaza.
The Lagos State Governor, Babajide Sanwo-Olu, has insisted that there were only two confirmed deaths during the shooting incident that happened a week ago at the Lekki Tollgate.
He also said that there were no bloodstains at the scene of the incident.
According to a report on Vanguard, the Lagos State Governor made the disclosure during an interview with CNN’s Becky Anderson about the incident and the fall out of the #EndSARS protests over police brutality and extra-judicial killing.
The Governor’s statement is against the backdrop of several reports in the public space, which had claimed that over 30 protesters and in some cases about 70 protesters allegedly died as a result of the shooting by soldiers at the Lekki Tollgate.
The Governor said, “Two dead bodies, that is what we have seen from all the morgues, that’s what we have seen going to hospitals, that’s what we have seen as a record. What has happened is that there have been so many footages that were seen, that people have shown, but we have not seen bodies, we have not seen relatives, we have not seen anybody truly coming out to say I am a father or a mother to someone and I cannot find that person. Nobody has turned up. I have been to the ground, there is no scratch of blood anywhere there.
“From the footage that we could see, because there were cameras at that facility, it seems to me that they would be men in military uniform. That’s what the footage shows.”
While insisting that there was no form of international pressure as a result of the protests, Sanwo-Olu said, “I genuinely believe there would be change. For two reasons; what has happened, especially in Lagos is extremely unimaginable. It was also a clarion call for all of us in government to understand and realize what the youths want us to be doing. It hit all of us like a thunderbolt and it was just a wake-up call.”
In order to aid the investigation to ascertain what happened at the Lekki Tollgate, Sanwo-Olu assured that the Close Circuit Television (CCTV) footages will be made available to the judicial panel already set up to investigate the incident and has already started sitting on Monday.
While responding to a question, Sanwo-Olu said he was ‘absolutely’ committed to a full investigation of the incident.
He said, “It’s beyond my control to mete out punishment to those found culpable; however, those responsible will be held accountable. I am not the Commander-in-Chief of the Armed Forces. The report will be out, we will channel the report to all the relevant authorities in the State to ensure everyone that is found culpable is accountable for the act.”
Despite the Lagos State Governor’s insistence on the number of fatalities, a lot of Nigerians do not believe his account of the incident and think that there is some form of an alleged cover-up by government officials. They are still outraged that despite some video evidence and accounts of people that were there, the government is still understating the fatality figures.
Nigeria’s Manufacturing Sector contracts for 6th consecutive month
The manufacturing sector contracted for the sixth consecutive month as 8 subsectors contracted out of 14.
The Manufacturing Purchasing Managers’ Index (PMI), for the month of October, witnessed a contraction for the 6th consecutive month, as it stood at 49.4 index points.
This was disclosed by the Central Bank of Nigeria (CBN), in its October PMI report released today.
According to the information contained in the report, despite the fact that the Manufacturing Purchasing Managers’ Index (PMI) for the month of October contracted, the Manufacturing PMI index recorded a month-on-month increase owing to improved New orders, faster manufacturing supplier delivery time, and slight changes in production and employment levels.
What you should know
The report stated that, out of the 14 subsectors surveyed, 6 subsectors reported expansion (above 50% threshold) in the review month in the following order:
- Electrical equipment
- Transportation equipment
- Printing & related support activities
- Chemical & pharmaceutical products
- Textile, apparel, leather & footwear
While the remaining 8 subsectors reported contraction (below 50% threshold) in the review month in the following order:
- Primary metal
- Petroleum & coal products,
- Paper products
- Fabricated metal products
- Furniture & related products
- Nonmetallic mineral products
- Plastics & rubber products
- Food, beverage & tobacco products
PMI for the non-manufacturing sector stood at 46.8 points in October 2020, indicating contraction in Nonmanufacturing PMI for the seventh consecutive month. Of the 17 sub-sectors surveyed, 3 subsectors reported growth, while 11 subsectors declined.
What led to the Ogba tanker explosion- Lagos
Lagos State Government has disclosed the explosion was caused by the spillage of petrol from a truck laden with petrol.
The Lagos State Government has attributed the tanker explosion that occurred at Yerevan Filling Station earlier today to the spillage from the articulated truck, laden with 33,000 litres of Premium Motor Spirit (PMS), popularly called petrol.
This was disclosed via the official Twitter handle of the state on Tuesday.
According to the government, the revelation was as a result of the investigations by the LASEMA Response Team.
It tweeted, “The inferno was quickly curtailed due to the prompt response of the Agency’s team in conjunction with the Lagos State Fire Team.
“The leaky valve which was the source of the inferno has been shut off, the inferno has been extinguished while blanketing of the truck and entire area is ongoing in order to avert any secondary incident.”
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LASEMA Response Team in swift response earlier this morning, has extinguished the fire outbreak that ocurred inside Yerevan Oil. A filling station located at Ajayi Road in Ogba Aguda area of Lagos.@jidesanwoolu @drobafemihamzat @lasemasocial @LAG_FireService @gbenga_omo#LASG pic.twitter.com/BTJplOIGk4
— The Lagos State Govt (@followlasg) October 27, 2020
Details soon …