The Nigerian Stock market remained relatively impressive at W/W. In the previous week, the All-Share Index and Market Capitalization both appreciated by 5.30% to close the week at 28,415.31 and N14.852 trillion respectively.
Fourteen (14) equities depreciated in price, lower than fifteen (15) equities in the previous week. Ninety-six (96) equities remained unchanged, lower than one hundred and twelve (112) recorded in the previous week.
However, Profit-taking was noticed at the last trading session of the week as the plunge in money market rates, coupled with institutional investors re-strategizing ahead of the Q3 earnings results propelled buying interests of Nigerian Stocks, particularly NSE30 Stocks.
Stock traders and investors are trooping into the perceived undervalued local equity market amid the continual low-yields seen in Nigeria’s debt market.
Abiodun Keripe, Managing Director, Afrinvest Research in a note to Nairametrics spoke on his expectations for the coming week at Nigeria’s local bourse
While we expect the soft gains in the domestic market to be sustained, we note that investors are likely to extend the profit-taking activities into the week ahead.
- The year is gradually winding down and portfolio managers are looking to finish with a decent average performance for the year.
- Additionally, there is still the paucity of alternative assets with low valuation and the potential to outperform the low yielding fixed income instruments. I believe these are few drivers for the equities market which reinforces our positive outlook for the week.
- We expect the release of Q3 2020 earnings results from this week. With the not-too-underwhelming H1 numbers, we think the Q3 corporate performance will likewise be a positive catalyst.
On the global scene Stephen Innes, Chief Global Market Strategist at Axi in a note to Nairametrics spoke on expectation for the coming week, at the global equity market saying;
“Investors remain focused on the implications of a ‘Blue Wave’ election, given that the probability of a Democratic sweep has climbed to 60% from 47% one month ago,”
Furthermore, he opined;
- With much of the street thoroughly drenched in the Blue Wave, I would expect global drivers to reassert their influence with the path of the global economic recovery, COVID-19 case counts, progress towards a vaccine, and broader trade issues.
- The market remains zeroed-in on optimism, focusing on a likely pick-up in government spending, notably on infrastructure and ‘green’ initiatives. However, it requires one to ignore the prospect of higher corporate taxes and also potentially massive shifts in the regulatory backdrop for some sectors like tech.
- These elements point in vastly different directions for risk appetite, and I expect ‘risk-off’ to win out, in part, because of timing.
What to expect
Taking a cue from some market analysts who are slightly pessimistic about the coming week in the Nigerian bourse. Profit-taking is more likely to continue amid falling crude oil prices, and growing youth unrest over alleged police abuses.
GTBank, Dangote Cement keep Bulls roaring high
Market breadth closed positive as NASCON led 20 Gainers as against 6 Losers topped by NNFM at the end of today’s session.
Nigerian stock market ended its last trading session on an impressive note. The All Share Index gained 0.47% to close at 28,697.06 points as against +0.40% appreciation recorded on Thursday.
Nigerian Stock Exchange market capitalization now stands at N14.99 Trillion. Its Year-to-Date (YTD) returns currently stands at +6.91%.
- However, the Nigerian bourse trading turnover fell short of expectation as volume moved dipped by 9.11% as against -4.67% downtick recorded on Thursday. ACCESS, GUARANTY, and UBA were the most active to boost market turnover.
- AFRINSURE leads the list of active stocks that recorded an impressive volume spike at the end of today’s session.
- Market breadth closed positive as NASCON led 20 Gainers as against 6 Losers topped by NNFM at the end of today’s session – an improved performance when compared with the previous outlook.
- NASCON up 10.00% to close at N14.3
- PZ up 7.32% to close at N4.4
- ZENITHBANK up 1.69% to close at N21
- GUARANTY up 1.50% to close at N30.45
- DANGCEM up 0.67% to close at N151
- NNFM down 9.89% to close at N4.19
- NPFMCRFBK down 4.29% to close at N1.34
- HONYFLOUR down 4.21% to close at N0.91
- UNIONDAC down 3.70% to close at N0.26
- VITAFOAM down 3.23% to close at N6
Nigerian bourse continued its bullish run amid a shutdown of economic activities at Nigeria’s economic nerve center Lagos and Rivers amid ongoing curfew put in place in order to calm hostilities prevalent in some areas.
- Bulls seem to be rallying high amid soaring crude oil prices, and high buying pressure noticed in some Nigerian blue-chip stocks like Dangote Cement and GTBank.
- However, Nairametrics expects you to seek the advice of a certified stockbroker when choosing stocks to buy, as some of these stocks exhibit cyclic returns in principle.
#EndSARS Bull return to Nigerian Stock Market amid Looting
The market breadth index was positive with 20 gainers against 10 losers.
Nigerian bourse advanced today by 0.40%, to close at 28,563.87 points. The All Share Index was up by 0.40%, with the year-to-date return at +6.39% and market capitalization at N14.92 trillion. Investors gained N59.78 Billion.
- A total volume of 311.3 million units of shares, valued at N469billion exchanged hands in 3,375deals. GUARANTY was the most traded shares by volume and value at 77.8million units and N2.33billion.
- The market breadth index was positive with 20 gainers against 10 losers. UACN (+8.33%) led the gainer’s chart today, while GLAXOSMITH (-3.57%) topped the laggards.
- All sectors were bearish – Insurance, Oil & Gas, Consumer Goods, and Banking were lowered by 0.93%, 0.07%, 0.06%, and 0.03%, respectively save for the Industrial sector index which appreciated by +0.15%.
- UACN up 8.33% to close at 8.33%
- STANBIC up 2.33% to close at 2.33%
- DANGSUGAR up 2.22% to close at N13.8
- WAPCO up 2.02% to close at N17.65
- MTNN up 1.45% to close at 1.45%
- GLAXOSMITH down 3.57% to close at N5.4
- INTBREW down 2.95% to close at N6.25
- CAP down 1.07% to close at N18.5
- FBNH down 0.82% to close at N6.05
- ZENITHBANK down 0.72% to close at N20.65
Nigerian bourse against all odds recorded impressive gains. The gain was recorded amid, falling crude oil prices, and significant records of looting at a number of Nigerian urban areas triggered by the ongoing political unrest in Nigeria.
- Buying pressure from NSE30 stocks like MTN Nigeria, Stanbic IBTC Bank, Dangote Sugar, UACN lifted the All Share Index value upward.
Investors maid the prevailing macro are repositioning their portfolio for Q3 earning results amid a drop in market liquidity at Thursday’s trading session.
- Nairametrics, still envisage readers to be cautious about choosing stocks to buy, on reports coming from the Lagos Chamber of Commerce and Industry (LCCI) revealing Nigeria had lost more than N700 billion in economic value since the #EndSARS protests started a few weeks ago.
Where to invest $10,000 right now
Entrepreneurs, financial experts and investment analysts suggest what sectors or assets to invest in if you have $10,000.
The upsurge in COVID-19 cases around the world has kept global investors flocking the world’s safe-haven currency at an exponential rate, the high demand for the greenback is coming on the high geopolitical uncertainty prevailing in today’s financial market.
Also, it’s important to note at the currency market, the U.S dollar remains king. According to the International Standards Organization, 90% of currency trading done globally involves the U.S. dollar, most crypto assets, virtually the most liquid commodities are priced in the U.S dollar not forgetting about 40% of the world’s debt is dominated in the greenback.
So Nairametrics felt it paramount to ask a hedge fund manager, entrepreneurs, and financial experts, about what sectors or assets they would invest in if they had, say, $10,000.
Their responses were revealing and diverse as they were varied—ranging from; buying global equities, local stocks, real estate holdings to investing in digital assets.
Gavin Smith, veteran trader, and managing partner at Panxora Crypto Hedge Funds.
I would scale into BTC $2,000 now, $2,000 when it comes off to $10,000, then add $2,000 at $9,000 and another $2,000 at the $8,000 level. If BTC then breaks above $13,000 I would buy any of the above orders that had not been filled of the remaining $2,000. I would put $500 into each of these four DeFi protocols: LINK, COMP, KNC, and OMG.”
DeFi is an exceptionally volatile market and these would need active management, but they represent an opportunity with exceptional upside potential. This is a market our analysts are building a profile in, to advance our DeFi hedge fund later in the year.
Debo Adejana – Founder, MD/CEO – Realty Point Limited.
I follow the investment wisdom that says, ‘invest in what you know and understand’. I know and understand real estate probably more than any other investment asset class.
So, the decision as per what I will invest in with $10,000 which should be upwards of N4m is simply; Real Estate. I will either do rental income property as part of a properly organized shared-ownership structure or speculate on land depending on how much time I have with the money. The reasons are very basic, real estate investments have been known to survive and surpass any and every challenge.”
Darlington-Morsi Onyemaka, Co-founder Quba Exchange Forbes Accelerator Cohort ’20.
One of the main pointers to a good investment portfolio is diversified across multiple asset classes which should be according to the investor’s risk appetite. Looking at my long-term investment strategy, real estate fits in perfectly for Ten-thousand dollar investment. My portfolio is already jam-packed with high-risk assets and Real Estate will do a great job at hedging the risk factors without minimizing profitability in any significant way.”
Francis Obasi Cofounder and CEO of Lead Wallet.
If I have a spare $10,000 right now for investment, first, I’ll invest 55% of the funds into new crypto startups being run by professionals and backed by companies like Coinlist; LID Protocol, and Binance. Second, I’ll invest 20% of the funds into Lead Token as there is still potential for massive growth in the coming months/years. Third, looking at the situation of Nigeria, and not knowing where the current protest (uprising) on #EndSARS is headed, I’ll reserve the rest 25% in USDC/USDT to hold against a potential Naira crash. I’m confident that there is every possibility that the Dollar will become scarce again in the coming weeks/months due to the ongoing protest, thereby returning instant gains for immediate spending on basic needs.”
Dapo-Thomas Opeoluwa Global Markets analyst and an Energy Trader.
“There are so many ways to invest $10,000. The real question depends on the investor. His risk appetite, his investment horizon, when does he or she want to liquidate? The answers to these now limit the options of investments. So for safe and long-term investments, I always advise investing in index funds, Eurobonds or the Nigeria International Debt fund. This is with the caveat that says ‘low risk equals low returns’. Also, I usually would say, invest in investments that beat inflation so you won’t suffer negative real turns.”
Victoria Njimanze Investment Analyst at a Nigerian Investment Bank
Well, off my head I’ll go with Bonds, cryptocurrency, Stocks, and then alternatives. I would definitely make my findings first, but I’ll make a larger portion go into Bonds say 40%, 30% in cryptocurrency, 20% in stocks, and 10% in alternatives like commodity market so as to have a diversified portfolio.”
Akinsola Esan, a credit risk analyst at Nigeria’s Tier 1 Bank.
Basically, the goal is to earn substantial returns on investments – dividends, capital appreciation, and secondly, beat inflation in naira which is currently about 12.85%. With $10,000, I’ll spread my investments across foreign equities such as purchasing and holding stocks of companies like Apple, Facebook, Google, Fastly, Nio, Amazon, to list but a few, and also buy some top-performing dollar-denominated Mutual funds such as Vantage dollar funds and some other ones recommended by Nairametrics. Lastly, I will look in the area of cryptocurrencies by investing as much in bitcoin, Ethereum, and other recognized Cryptos. There are some dividend-paying stocks listed on the Nigerian stock exchange as well, I will consider holding a number of them.
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Due to the present fickle nature of global financial markets, most financial experts interviewed above are unsurprisingly keen on mostly U.S dollar-dominated financial assets, thus reflecting the greenback’s dominance in demand amid the COVID-19 infection exploding at an alarming rate.