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Stock Market

Nigerian Stocks tumble, amid Profit taking

The market breadth index was negative with 26 losers against 22 gainers

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market's, Bears clawing down on the naira, hits N425 to $1

Nigerian Stock market began the first trading session in the month of November on a bearish note.

The All Share Index declined by -0.17% and settle at 30,479.39 points, as Investors’ losses stood at N26.81 billion. Consequently, the YTD performance stands at 13.57%. A total volume of 376.6 million units of shares, valued at N3.80billion exchanged hands in 6,050 deals.

  • FIDELITYBK was the most traded shares by volume at 49.8million units, while ZENITHBANK topped by value at N1.03 billion.
  • The market breadth index was negative with 26 losers against 22 gainers. CILEASING (-10.00%) led the laggards today, while DANGSUGAR (+9.78%) topped by value.
  • Sector performance
  • NSE Oil & Gas Index: Down by -1.21%, as OANDO (-6.55%), MOBIL (-3.11%), and ETERNA (-2.91%) declined in price.
  • NSE Banking Index: Fell by -0.78%, due to sell-offs in FIDELITYBK (-2.79%), UBN (-2.68%), UBA (-1.30%) and ZENITHBANK (-0.68%).
  • NSE Industrial Index:Shed -0.06%, on loss in WAPCO (-0.80%).NSE Insurance Index:Up by +0.70%, on price appreciation in LASACO (+6.25%), CORNERST (+3.45%) and AIICO (+1.16%).
  • NSE Consumer Goods Index: Rose by +0.57% due to gains recorded in DANGSUGAR (+9.78%), NASCON (+6.49%), and HONYFLOUR (+4.12%)

Top gainers

  1. DANGSUGAR up 9.78% to close at N15.15
  2. NASCON up 6.49% to close at N13.95
  3. FIDSON N up 5.26% to close at N4.4
  4. GLAXOSMITH up 3.33% to close at N6.2
  5. FLOURMILL up 2.49% to close at N28.85

Top losers

  1. ETI down 8.85% to close at N5.15
  2. CILEASING down 10.00% to close at N3.96
  3. INTBREW down 5.02% to close at N7
  4. MOBIL down 3.11% to close at N190
  5. JBERGER down 2.52% to close at N17.85

 

GTBank 728 x 90

Outlook
Nigerian Stocks started the first trading session cumulatively on a bearish note.

  • The plunge is partly attributed to falling oil prices at record levels on the basis that Africa’s biggest economy is heavily dependent on crude oil, which contributes around 80% of its export earnings, 50% of FGN revenue, and 30% of banking credit, according to reports seen from World Bank.
  • That said it’s critical to note, Selling pressure was significantly seen in blue-chip stocks like Mobil, Ecobank as investors began a significant amount of profit-taking across the market spectrum.
  • Nairametrics however envisages cautious buying, as institutional investors reduce their long positions amid growing geopolitical uncertainty in Nigeria’s key international markets, particularly Europe, which contributes to about 40% of Nigeria’s crude oil shipment.

Olumide Adesina is a France-born Nigerian. He is a Certified Investment Trader, with more than 15 years of working expertise in Investment Trading. Featured Financial Market Analysis for a Fortune Global 500 Company. Member of the Chartered Financial Analyst Society. Follow Olumide on Twitter @tokunboadesina or email [email protected]

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Market Views

Tesla up 500% in 2020, near $500 billion market value

The tech powerhouse is now less than $6 billion short of approaching the $500 billion market value.

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Tesla up 500% in 2020, near $500 billion market value, Survey unveils Elon Musk as the most inspirational leader in tech 

Tesla, the electric car automaker, has gained 500% in 2020 and has become by far the world’s most valuable automaker in the world, despite it producing far less than Volkswagen, Toyota, or General Motors.

The tech powerhouse is now less than $6 billion short of approaching the $500 billion market value, and extending its surge since reports struck Wall Street on Tesla making its S&P 500 debut on December 21, forcing index funds to buy billions of dollars of its share.

READ: U.S stock futures trade flat, Apple regains $2 trillion market value

Unsurprisingly, it became global investors’ choice amid its recent price action rising by 6% – showing a gain of over 6%. Tesla Inc. extended its rally at the most recent trading session ahead of its December debut in the S&P 500 (SPX), as it is now worth a market value of $494 billion.

READ: Nigeria spends N1.08 trillion to import used cars and motorbikes in one year 

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Its market capitalization is higher than the Gross Domestic Product (GDP) of any African country, Nigeria – $448.1billion, South Africa – $351.4billion, Egypt – $303.2billion, Algeria – $169.98billion, Morocco – $118.7billion, Ethiopia – $96.12billion, Kenya – $95.5 billion, Angola – $94.6 billion, Ghana – $66.9 billion, Tanzania – $63.2 billion.

READ: Dangote Cement, Nigerian Breweries drop, investors lose N46 billion

What you should know

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Now worth $494 billion, Tesla will increase the concentration of heavyweight companies within the S&P 500. It will be the 7th most valuable company within the index, just behind Berkshire Hathaway and ahead of Visa Inc., according to Refinitiv data.

READ: Crypto: UniSwap gives each owner over $2,000

  • About a fifth of the car company’s shares is owned by its Chief Executive, Elon Musk and other insiders.
  • The S&P 500 is weighted by the number of companies’ stocks available on the stock market.
  • The car company’s influence within the benchmark will be slightly reduced, putting it in 8 positions, just behind Johnson & Johnson, with an equivalent of about 1% of the S&P 500 index.

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Stock Market

Nigerian stocks end near stalemate, despite gains from Nestle, Airtel, Dangote

A total volume of 568million units of shares, valued at N7.32billion exchanged hands in 8,928 deals.

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Bulls Win Grand Slam in Nigeria's stock market

Nigerian bourse ended Monday’s trading session near a stalemate, as the All Share Index dropped slightly by 0.04% to close at 34,121.78 points. Thus, the YTD performance currently stands at 27.56%.

A total volume of 568million units of shares, valued at N7.32billion exchanged hands in 8,928 deals. ZENITHBANK was the most traded shares by volume and valued at 79.7million units and N1.91billion.

  • Market sentiment was negative, as market breadth came in at 9.2x  with 46 decliners and 5 advancers.
  • The sectorial performance was bearish as Banking, Consumer Goods, Insurance, Oil & Gas were down by 4.72%, 2.07%, 2.07%, and 1.62% respectively, while the Industrial index closed as the lone gainer, up by +2.72%.

Sector performance

  • NSE Banking Index: Down by -4.72%, on sell-offs in WEMABANK (-9.09%), ACCESS (-8.14%), UBA (-6.10%), and ZENITHBANK (-5.66%).
  • NSE Consumer Goods Index: Fell by -2.07%, due to sustained losses in GUINNESS (-9.55%), PZ (-9.43%), and FLOURMILL (-8.43%).
  • NSE Insurance Index: Dipped by -2.07%, on price decline in CUSTODIAN (-10.00%), CHIPLC (-9.38%), and LINKASSURE (-9.09%).
  • NSE Oil & Gas Index: Dipped by -1.62%, as ARDOVA (-10.00%) and OANDO (-9.97%) declined in price.
  • NSE Industrial Index: Up by +2.72% due to the price appreciation in BUACEMENT (+4.77%) and DANGCEM (+3.42%)

Top gainers

  1. AIRTELAFRI up 5.00% to close at N500
  2. BUACEMENT up 4.77% to close at N53.45
  3. DANGCEM up 3.42% to close at N193.2
  4. NESTLE up 1.82% to close at N1400
  5. NEM up 0.78% to close at N2.6

Top Losers

GTBank 728 x 90
  1. ARDOVA down 10.00% to close at N13.5
  2. WAPCO down 10.00% to close at N22.05
  3. GUINNESS down 9.55% to close at N18
  4. FLOURMILL down 8.47% to close at N25.4
  5. STANBIC down 8.02% to close at N39.55

Outlook

Nigerian Stocks began the first trading session on a slightly bearish note, amid soaring oil prices prevailing at the U.S trading session. At the time of writing this report, Brent crude was trading above $45/barrel.

  • That said, significant gains seen from NSE30 Stocks that include Nestle, Airtel, Dangote, BUACement couldn’t stop Nigerian stocks from closing slightly red, as sell-offs intensified among top brewery stocks and medium capitalized stocks.
  • Nairametrics envisage cautious buying, on the sentiments that recent price action shows further market correction in the near term, however, stock traders anticipate the bullish run is still in play for the long term.

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Market Views

Bank stocks remain a buy amid uncertainty prevailing Nigeria’s economy

The All-Share Index and Market Capitalization depreciated by 2.57% to close the week at 34,136.82 and N17.838 trillion respectively.

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Investors flee Nigerian Stocks as FDI and FPI dips

Nigerian Stocks ended the previous week cumulatively on a bearish note.

What we know: The All-Share Index and Market Capitalization depreciated by 2.57% to close the week at 34,136.82 and N17.838 trillion respectively.

In the previous week, Nigerian Stocks had its bullish run halted arbitrarily on the bias that stock traders and investors intensified their profit, taking into account the significant amount of weak earnings recorded by Nigerian Banks.

It was unsurprising to see four Nigerian banks in the top 10 losers chart for the week, as investors fretted on such performance on the basis that Nigeria’s banking industry remains the most vibrant after Agriculture, Energy in Africa’s largest economy.

GTBank 728 x 90

That said, In the coming week stock traders are expected to be very cautious amid recent macros showing Africa’s largest economy has dipped into a recession in Q3 as oil production dropped to a four-year low.

Abdul-Rasheed Oshoma Momoh, Head of Capital Market in TRW Stockbrokers Ltd, in a phone chat interview with Nairametrics, said Nigerian markets are presently playing out like a ping pong ball the momentum has slowed down for now.

More of consolidation now as investors buy into good stocks that have a light at the end of the tunnel. (Zenith Bank, UBA, GTBank, First Bank, Access Bank) taking into consideration he doesn’t see any new highs now till 2021.

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Bottom- line: Profit taking is expected to remain at least in the near term, taking into consideration Nigeria is officially in a recession, meaning a lot needs to be done to get Africa’s biggest economy on its foot, as such development could trigger more profit-taking in spite of the positive trend playing relatively at Africa’s best-performing equity market.

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