The Nigerian bourse ended the trading week cumulatively on a bullish note.
The All-Share Index and Market Capitalization appreciated by 1.56 and 1.59% respectively to close the week at 31,016.17 and N16.207 trillion respectively.
- Similarly, all other indices finished higher with the exception of the NSE-Main Board, NSE Insurance, and NSE Oil/Gas, which depreciated by 0.62%, 1.32%, and 0.77% respectively, while the NSE ASeM Index closed flat.
- A total turnover of 2.067 billion shares worth N22.64 billion in 25,187 deals was traded this week by investors on the floor of the Exchange, in contrast to a total of 1.909 billion shares valued at N23.610 billion that exchanged hands last week in 23,578 deals.
- The Financial Services industry (measured by volume) led the activity chart with 1.575 billion shares valued at N13.725 billion, traded in 14,521 deals; thus, contributing 76.21% and 60.63% to the total equity turnover volume and value respectively.
- The Consumer Goods Industry followed with 178.57 million shares worth N3.609 billion in 4,669 deals.
- The third place was the Conglomerate Industry, with a turnover of 102.697 million shares worth N155.195 million in 599 deals.
- Trading in the top three equities namely Access Bank Plc, FBN Holding Plc, and Zenith Bank Plc (measured by volume) accounted for 686.338 million shares worth N7.599 billion in 4,557 deals, contributing 33.21% and 33.57% to the total equity turnover volume and value respectively.
- Forty (40) equities appreciated in price during the week, lower than sixty-eight (68) equities in the previous week. Twenty-four (24) equities depreciated in price, higher than Six (6) equities in the previous week; while ninety-seven (97) equities remained unchanged, higher than ninety-four (94) recorded in the previous week.
- LIVESTOCK FEEDS PLC. up 30.86% to close at N1.06
- TRANSNATIONAL CORPORATION OF NIGERIA PLC up 19.72% to close at N0.85
- DANGOTE SUGAR REFINERY PLC up 19.57% to close at N16.50
- CAP PLC up 13.02% to close at N23.00
- LASACO ASSURANCE PLC up 12.50% to close at N0.36
- CORONATION INSURANCE PLC up 10.00% to close at N0.44
- PORTLAND PAINTS & PRODUCTS NIGERIA up 9.59% to close at N2.97
- REGENCY ASSURANCE PLC up 9.09% to close at N0.24
- DANGOTE CEMENT PLC up 9.06% to close at N174.50
- CONSOLIDATED HALLMARK INSURANCE PLC up 8.82% to close at N0.37
- INTERNATIONAL BREWERIES PLC down 11.80% to close at N6.50
- AXAMANSARD INSURANCE PLC down 9.09% to close at N2.00
- LINKAGE ASSURANCE PLC down 8.89% to close at N0.41
- CUSTODIAN INVESTMENT PLC down 8.26% to close at N5.55
- NEM INSURANCE PLC down 8.07% to close at N2.05
- BUA CEMENT PLC down 5.49% to close at N43.00
- MUTUAL BENEFITS ASSURANCE PLC down 4.76% to close at N0.20
- JULIUS BERGER NIG. PLC down 4.48% to close at N17.05
- UNION BANK NIG.PLC down 4.46% to close at N5.35
- UNION DIAGNOSTIC & CLINICAL SERVICES PLC down 3.85% to close at N0.25
Nigerian bourse ended the week bullish W/W. In spite of the strong volatility seen lately in global financial markets, Nigerian investors increased their buying pressure across the market spectrum, pushing the All Share Index to its highest point this year, as it hovered above N16 trillion.
- Significant buying interests in NSE 30 Stocks like Dangote Stocks, GTBank, triggered the All Share Index to record its seventh-consecutive weekly gain.
- Nairametrics envisages cautious buying amid expected price swings on the basis that the earning window is closing down, hence stock traders and investors would shift their focus on Tier 1 banks, as their earning results would trigger a significant degree of price volatility.
Explore Data on the Nairametrics Research Website
U.S biggest listed companies post best monthly gains since January 1987
The Dow jumped 11.8% in November, posting its best one-month gain since January 1987. The S&P 500 and Nasdaq Composite surged by 10.8% and 11.8%, respectively
U.S biggest listed companies were all fired up in the month of November, as they posted incredible gains, amid three promising Covid-19 vaccines presently in play.
This triggered investors buying pressure in the world’s largest and most liquid equity market.
- The Dow jumped 11.8% in November, posting its best one-month gain since January 1987.
- The S&P 500 and Nasdaq Composite surged by 10.8% and 11.8% respectively, for their strongest monthly advances since April.
What this means
November gains are coming amid a slew of positive COVID-19 vaccine news, which lifted the broader market sentiments up and sparked a surge of blue-chip brands that include Apple, Amazon, Coca-Cola, Salesforce, Intel, IBM, Google, Chevron, IBM, JP Morgan Chase, Goldman Sachs, Amgen, Boeing, Visa, Walmart, and Walt Disney.
- The iShares Russell 1000 Value ETF (IWD) rallied 13.4% for the month and outpaced its growth counterpart, the iShares Russell 1000 Growth ETF (IWF), by 3 more percentage points.
What they are saying
Stephen Innes, Chief Global Market Strategist at Axi, in a note to Nairametrics, advised stock traders to be wary of recent data showing a plunge seen in Dallas Fed November Manufacturing activity data, following the Chicago PMI miss earlier on Monday.
“The Dallas Fed miss was consistent through most of the sub-indices, with new orders falling to 7.2 from 19.9, though the number of employees increased to 11.7 from 8.7. Prices paid rose to 35.0 from 29.4, while prices received fell to 4.7 from 6.8, indicating potential margin pressure.
“However, even worse for these firms are the year-on-year comparisons, it seems. It is usually in these last couple of months where many retailers make their annual profit.
“The weakness of data outside of Asia highlights lockdowns (forced or self-imposed) have begun to affect. Simultaneously, early reports suggest Black Friday may have been underwhelming — even taking into account online activity, one of the new ‘norms’ of 2020.”
What you should know
The Dow Jones or Dow Jones Industrial Average (DJIA) is a popularly known stock market index that measures the stock performance of the 30 biggest companies listed on stock exchanges in the United States.
What to expect
In the coming days, global investors are anticipating an even stronger 2021 profit outlook possibly coupled with a quick inoculation-driven economic recovery at least for the mid-term.
Airtel, Mobil, FCMB lead Nigerian Stocks Up W/W, investors gain N390 billion
The All-Share Index and Market Capitalization appreciated by 2.19% to close the week at 34,885.51 and N18.228 trillion respectively.
Nigerian Stocks ended the week bullish cumulatively. The All-Share Index and Market Capitalization appreciated by 2.19% to close the week at 34,885.51 and N18.228 trillion respectively.
Investors gained N390.26 billion. A total turnover of 1.816 billion shares worth N25.791 billion in 31,665 deals was traded this week by investors on the floor of the Exchange, in contrast to a total of 11.400 billion shares valued at N35.892 billion that exchanged hands last week in 39,265 deals.
- The Financial Services Industry (measured by volume) led the activity chart with 1.274 billion shares valued at N14.710 billion, traded in 18,392 deals; thus, contributing 70.15% and 57.04% to the total equity turnover volume and value respectively.
- The Conglomerates Industry followed with 217.170 million shares worth N231.809 million in 1,226 deals. The third place was the Consumer Goods Industry, with a turnover of 113.760 million shares worth N2.598 billion in 4,568 deals.
- Trading in the top three equities namely Zenith Bank Plc, Transnational Corporation of Nigeria Plc, and Access Bank Plc (measured by volume) accounted for 649.529 million shares worth N8.104 billion in 6,395 deals, contributing 35.76% and 31.42% to the total equity turnover volume and value respectively.
- Twenty-seven (27) equities appreciated at price during the week, higher than twenty-one (21) equities in the previous week. Forty-three (43) equities depreciated in price, lower than fifty-five (55) equities in the previous week. Ninety-one (91) equities remained unchanged, higher than eighty-five (85) recorded in the previous week.
Top 10 gainers W/W
- UPDC REAL ESTATE INVESTMENT TRUST up 32.53% to close at N5.50
- NEIMETH INTERNATIONAL PHARMACEUTICALS PLC up 12.03% to close at N2.70
- NCR (NIGERIA) PLC. up 10.00% to close at N1.98
- 11 PLC (MOBIL) up 9.89% to close at N208.80
- UNIVERSITY PRESS PLC. up 9.52% to close at N1.38
- UNITED CAPITAL PLC up 8.16% to close at N4.77
- CORONATION INSURANCE PLC up 7.32% to close at N0.44
- FCMB GROUP PLC. up 7.26% to close at N3.25
- AIRTEL AFRICA PLC up 7.00% to close at N535.00
- AXAMANSARD INSURANCE PLC up 6.36% to close at N2.34
Top 10 losers W/W
- JAPAUL OIL & MARITIME SERVICES PLC down 11.11% to close at N0.24
- HONEYWELL FLOUR MILL PLC down 10.83% to close at N1.07
- CUSTODIAN INVESTMENT PLC down 10.00% to close at N5.85
- CHAMPION BREW. PLC. down 9.43% to close at N0.96
- TRANS-NATIONWIDE EXPRESS PLC. down 9.38% to close at N0.87
- LINKAGE ASSURANCE PLC down 9.09% to close at N0.50
- WEMA BANK PLC. down 9.09% to close at N0.70
- PORTLAND PAINTS & PRODUCTS NIGERIA PLC down 8.42% to close at N2.61
- ARDOVA PLC down 8.33% to close at N13.75
- NASCON ALLIED INDUSTRIES PLC down 8.05% to close at N16.00
Nigerian Stocks unsurprisingly recorded impressive gains W/W, as investors increased their buying pressure, especially buying from dips across the market spectrum.
Nigerian’s crude, selling at $48/barrel, boosted the Nigerian central bank dollar cash inflow. Also, the Apex Bank last concluded MPC meeting left all key indicators unchanged, kept Nigerian Bank stocks investors relieved, amid the bias that Nigerian banks would have enough headway in mitigating the prevailing economic uncertainties currently in play.
- Stock experts anticipate the present bullish run currently playing at Africa’s best-performing equity market will remain in the coming week, albeit alongside profit-taking.
- However, Nairametrics, envisage cautious buying, taking into consideration the low presence of the Foreign portfolio investors amid low investments seen lately in the Nigerian Stock Exchange amid stringent capital controls set in place by Nigeria’s Apex bank could limit the Stocks bull upside in the long term.
Explore Data on the Nairametrics Research Website
Why Bitcoin still looks like a bargain
With prices exceeding $18,000 for the first time since 2017, BTC looks poised to break its previous all-time high.
As stakeholders, players, and crypto wannabes ponder if increasing their stakes on Bitcoin, the world’s most popular crypto seems ideal now, despite the fact that it’s trading near a record high, Nairametrics decided to weigh in on some key fundamentals showing Bitcoin looks like a bargain.
With prices exceeding $18,000 for the first time since 2017, BTC looks poised to break its previous all-time high. More investors are holding bitcoin for wealth preservation.
A recent report from Glassnode, revealed plummeting Bitcoin exchange balances support the narrative that investors intend to hold their flagship crypto more than ever before, taking into consideration that with the prevailing demand in play, and limited supply of Bitcoin, the price would most definitely go north.
With prices exceeding $18,000 for the first time since 2017, $BTC looks poised to break its previous all-time high.
Meanwhile, plummeting #Bitcoin exchange balances support the narrative that investors intend to hodl.
— glassnode (@glassnode) November 23, 2020
Bitcoin liquidity continues its downward trajectory, buttressing that the macro bitcoin is becoming scarce for open sale.
It is also important to note that Bitcoin has a circulating supply of 19 million coins and a max supply of 21 million coins, meaning there are about 2million left to be mined.
Taking into account that about 4 million Bitcoins have been lost forever as a result of BTCs owners dying, and their next of kin not having access to such cryptos, it is fair to say there are only about 15million BTC presently in circulation to cater for over 7 billion people fighting to have a stake in Bitcoins, meaning that as BTC becomes scarce and more popular, it becomes a matter of time that the crypto asset valuation will hit the roof.
It’s vital to consider the bias saying that as global financial regulators begin to implement their regulatory framework on cryptos, it could become a matter of months for global banks and multinationals to increase their buying pressures on BTC. Thereby, pushing the price beyond the reach of an average investor.