The Nigerian stock market opened for four trading days this week as the Federal Government of Nigeria declared Thursday 1st October 2020 a Public Holiday.
The All-Share Index appreciated by 2.53% while Market Capitalization appreciated by 2.55% to close the week at 26,985.77 and N14.105 trillion respectively.
- Investors gained a whopping N350.12bn.
- A total turnover of 1.532 billion shares worth N16.901 billion in 17,882 deals was traded this week by investors on the floor of the Exchange, in contrast to a total of 1.567 billion shares valued atN20.559 billion that exchanged hands last week in 18,396 deals.
- The Financial Services industry (measured by volume) led the activity chart with 1.292 billion shares valued at N10.562 billion traded in 10,046 deals; thus contributing 84.29% and 62.49% to the total equity turnover volume and value respectively.
- The Conglomerates Industry followed with 62.395 million shares worth N89.205 million in 453 deals. The third place was the Industrial Goods industry, with a turnover of 55.168 million shares worth N2.976 billion in 1,752 deals.
- Trading in the top three equities namely Zenith Bank Plc, Sterling Bank Plc and United Bank for Africa Plc. (measured by volume) accounted for 815.646 million shares worth N7.311 billion in 4,461 deals, contributing 53.22% and 43.26% to the total equity turnover volume and value respectively.
- Thirty-six (36) equities appreciated in price during the week, higher than thirty-five (35) equities in the previous week.
Fifteen (15) equities depreciated in price, lower than twenty-eight (28) equities in the previous week, while one hundred and twelve (112) equities remained unchanged, higher than one hundred (100) equities recorded in the previous week.
- TOTAL NIGERIA PLC. up 21.00% to close N96.80
- OANDO PLC up 12.81% to close N2.29
- STERLING BANK PLC. up 10.34% to close N1.28
- CHAMPION BREW. PLC. up 9.88% to close N0.89
- IKEJA HOTEL PLC up 9.78% to close N1.01
- AIICO INSURANCE PLC. up 9.72% to close N0.79
- ETERNA PLC. up 9.60% to close N2.74
- CONSOLIDATED HALLMARK INSURANCE PLC up 8.82% to close N0.37
- INTERNATIONAL BREWERIES PLC. up 8.33% to close N3.90
- GUARANTY TRUST BANK PLC. up 7.41% to close N29.00
- CORNERSTONE INSURANCE PLC down 15.49% to close N0.60
- UNIVERSITY PRESS PLC. down 12.68% to close N1.24
- E-TRANZACT INTERNATIONAL PLC down 9.96% to close N2.35
- UACN PROPERTY DEVELOPMENT COMPANY PLC down 8.00% to close N0.92
- NIGERIAN BREW. PLC. down 6.76% to close N49.00
- LIVESTOCK FEEDS PLC.down 6.67% to close N0.56
- LEARN AFRICA PLC down 6.14% to close N1.07
- TRANS-NATIONWIDE EXPRESS PLC. down 6.10% to close N0.77
- P Z CUSSONS NIGERIA PLC. down 5.88% to close N4.00
- MAY & BAKER NIGERIA PLC. down 5.54% to close N2.90
- Nigerian bourse traded positive throughout the past week amid high sell-offs in global stocks as the most powerful political leader tested positive to the COVID-19 virus.
- Significant buying pressures were noticed around blue-chip stocks like Total, MTN Nigeria, GTBank, and Dangote cement railed the Nigerian bourse to an all-perfect, bullish trading run.
- The odds seem to be with the Nigerian Stock Market as a recent report showed Fitch Ratings have revised the Outlook on Nigeria’s Long-Term Foreign-Currency Issuer Default Rating (IDR) to Stable from Negative and affirmed the IDR at ‘B’.
- The report also projected Brent oil prices to average USD41/barrel in 2020, USD45/barrel in 2021, and USD50/barrel in 2022.
- In addition, the report expects Nigeria’s oil production volume to average 1.93mbpd in 2020, 1.87mbpd in 2021, and 2mbpd in 2022, all things being equal.
- Nairametrics however envisages cautious buying, as market indicators tilt towards an overbought bias.
Nigerian stocks plunge, as WEMA, CHAMPION, MANSARD slump
The market breadth closed negative as LASACO led 17 Gainers as against 23 Losers topped by CHAMPION at the end of today’s session.
Nigerian stocks wrapped up the week on a bearish note after the benchmark index registered its third negative close in the last five sessions.
- Sentiments notably picked up where they left off yesterday, as selloffs persisted in bellwether ticker – ZENITHBANK (-1.55%) as well as in Telco giant – MTN Nigeria (-3.28%).
- The 74 basis points pullback recorded today kept the All Share Index return firmly rooted in the red and also lowering the Year date returns to -1.88%.
- Save for the Oil and Gas (+0.25%) index lifted by sustained interest in OANDO (+2.99%), all other sectors closed in the negative territory.
- The Insurance (-2.32%), Banking (-0.48%), Consumer Goods (-0.40%), and Industrial Goods (-0.19) indices declined following price dips in MANSARD (-5.36%), ZENITHBANK (-1.55%), INTBREW (-3.65%), and WAPCO (-2.94%) respectively.
- The market breadth closed negative as LASACO led 17 Gainers as against 23 Losers topped by CHAMPION at the end of today’s session
- LASACO down 9.82% to close at N1.23
- MBENEFIT down 8.11% to close at N0.37
- COURTVILLE down 5.00% to close at N0.21
- OANDO down 2.99% to close at N3.45
- NAHCO down 2.70% to close at N2.28
- WEMABANK down 10.00% to close at N0.63
- CHAMPION down 10.00% to close at N2.52
- SUNUASSUR down 9.59% to close at N0.66
- AFRIPRUD down 5.74% to close at N5.75
- MANSARD down 5.36% to close at N1.06
Nigerian stocks ended the last trading session of the week on a bearish note amid profit-taking across the market spectrum.
- Downtrend was driven by price depreciation medium capitalized stocks amongst which are; WEMA, CHAMPION, MANSARD.
- That being said, Nairametrics envisages cautious buying on the account that certain market indicators reveal investors are taking some of their gains across the market spectrum.
Jim Ovia is set to earn N9.58 billion in dividend for FY 2020
The highly revered banker is the single majority shareholder of Zenith Bank as he directly owns 3,546,199,395 units of the fast-rising bank stock.
The founder and Chairman of Zenith Bank Plc, Mr. Jim Ovia is expected to earn a massive sum of N9.575 billion in dividend for the financial year ended December 2020
The highly revered banker is the single majority shareholder of Zenith Bank as he directly owns 3,546,199,395 units of the fast-rising bank stock out of the 31,396,493,787 ordinary shares available. This gives him an 11.29% direct interest in the Tier -1 bank.
It’s however important to note that such dividend is subject to a 10% withholding tax in Nigeria.
Recall that about a day ago, the Board of Directors of the bank in a statement released via the Nigerian Stock Exchange proposed a final dividend of N2.70, amounting to a total payout of N3.00 per share for the financial year 2020 (interim: N0.30).
This proposal reflects the past year’s robust performance and appears to signal that Zenith bank remains well-positioned to perform in the current financial year. However, there was a lower payout ratio at 40.9% compared to FY’19 (42.1%).
- Key earnings drivers to the financial year performance under review were a 90 basis points drop in the cost of funds to 2.1%, which propelled net interest income (+12.2% YoY) and a 3.8x jump in revaluation gains to N43.4 billion.
- These offset pressures from operating costs (the cost to income ratio rose 1.2ppts to 50.0%) and impairment charges (cost of risk rose 40basis points to 1.5%)
Described as the ‘Godfather of banking in Nigeria’ by Forbes Africa, Jim Ovia is quite popular for his business dexterity and leadership skills, especially in the banking sector.
His early interest in technology was the reason Zenith Bank became the first Nigerian company to have a functional website in 1995 and was able to smoothly migrate its operations from analog times to a digital era.
From a single branch in a residential building, Zenith Bank now has hundreds of branches all over Nigeria and several subsidiaries in other countries. The bank became a Public Limited Company in 2001 and was listed on the Nigeria Stock Exchange (NSE), and later on the London Stock Exchange (LSE).
On the 27th of April 2007, Zenith Bank Plc became the first Nigerian bank in 25 years to be licensed by the UK Financial Services Authority (FSA), giving rise to Zenith Bank UK Limited.
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