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Stock Market

MTN Nigeria hits record high, Investors gain N211 billion

The market breadth index was positive with 39 gainers against 11 losers

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Value of shares traded by top 10 stockbrokers up 133% despite COVID-19, investors, Raging Bulls lift Brent Crude price by 10%

Nigerian Stocks extended its gains today as positive sentiments dominated trading activities. The benchmark All Share Index (ASI) advanced further by 1.25% to close the day at 32,647.10 points. Market Capitalization gained N211.13 billion to settle at N17.05 trillion while the Year-to-Date (YTD) returns stand at +20.45%.

A total volume of 578.7 million units of shares, valued at N7.74billion exchanged hands in 7,651deals. ZENITHBANK was the most traded shares by volume and value at 67.9million units and N1.62billion, while FBNH followed with 64.7million units and N464 million respectively.

READ: Key highlights from the October 2020 Business Expectations Survey Report released by CBN

The market breadth index was positive with 39 gainers against 11 losers. NASCON (+9.96%) led the gainer’s chart today, while PZ (-5.38%) topped the laggards.

  • Performance across sectors was mainly positive as all sectors closed in green. The Insurance and Oil & Gas sectors recorded the largest gains as they appreciated by 3.28% and 1.32%. In the same vein, Banking, Consumer and Industrial sectors also advanced by 0.93%, 0.75% and 0.22% respectively.
  • Sector Performance
  • NSE Insurance Index: Up by +3.28%, on price appreciation in WAPIC (+9.52%); LINKAGE (+8.89%); MANSARD (+5.77%) and CUSTODIAN (+1.82%).
  • NSE Oil & Gas Index: Advanced by 1.32%, due to gains in OANDO (+9.76%) and ARDOVA (+7.06%).
  • NSE Banking Index:  Increased by 0.93%, as positive sentiment persists in WEMABANK (+8.70%), ETI (+3.33%), ACCESS (+2.30%) and ZENITHBANK (+2.30%).
  • NSE Consumer Goods Index:   Improved by 0.75%, as CADBURY (+10.00%), NASCON (+9.96%), NNFM (+9.92%) and DANGSUGAR (+7.18%) closed north.
  • NSE Industrial Index:   Rose by 0.22% due to the appreciation recorded in BUACEMENT (+1.11%).

READ: Profit-taking intensifies as GTBank, Dangote Cement stocks drop

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Top gainers

  1. NASCON up 9.96% to close at N15.45
  2. DANGSUGAR up 7.18% to close at N19.4
  3. ARDOVA up 7.06% to close at N14.4
  4. STANBIC up 4.35% to close at N48
  5. MTNN   up 4.06% to close at N156.2, its highest Y-o-Y value

READ: Bears claw at bank stocks, as CBN cuts interest rate

Top Losers

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  1. PZ down 5.38% to close at N4.4
  2. UCAP down 3.17% to close at N4.28
  3. WAPCO down 2.10% to close at N21
  4. NESTLE down 1.53% to close at N1400
  5. GUARANTY down 0.71% to close at N35

Outlook

Nigerian Stocks continued its bullish run amid soaring oil prices

Buying pressure in MTN Nigeria, Stanbic pushed the Nigerian bourse to hit N17 trillion. Nairametrics envisage you seek the advice of a registered Stockbroker on choosing Stocks to buy amid growing uncertainty in Nigeria’s international markets.

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

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.

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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.

READ: Nigerian Tier-2 banks fired up, investors profit up N1 trillion W/W

  • 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.

READ: GTBank obtains approval-in-principle from CBN to operate as financial holding company

Top 10 gainers W/W

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  1. UPDC REAL ESTATE INVESTMENT TRUST up 32.53% to close at N5.50
  2. NEIMETH INTERNATIONAL PHARMACEUTICALS PLC up 12.03% to close at N2.70
  3. NCR (NIGERIA) PLC. up 10.00% to close at N1.98
  4. 11 PLC (MOBIL) up 9.89% to close at N208.80
  5. UNIVERSITY PRESS PLC. up 9.52% to close at N1.38
  6. UNITED CAPITAL PLC up 8.16% to close at N4.77
  7. CORONATION INSURANCE PLC up 7.32% to close at N0.44
  8. FCMB GROUP PLC. up 7.26% to close at N3.25
  9. AIRTEL AFRICA PLC up 7.00% to close at N535.00
  10. AXAMANSARD INSURANCE PLC up 6.36% to close at N2.34

Top 10 losers W/W

  1. JAPAUL OIL & MARITIME SERVICES PLC down 11.11% to close at N0.24
  2. HONEYWELL FLOUR MILL PLC down 10.83% to close at N1.07
  3. CUSTODIAN INVESTMENT PLC down 10.00% to close at N5.85
  4. CHAMPION BREW. PLC. down 9.43% to close at N0.96
  5. TRANS-NATIONWIDE EXPRESS PLC. down 9.38% to close at N0.87
  6. LINKAGE ASSURANCE PLC down 9.09% to close at N0.50
  7. WEMA BANK PLC. down 9.09% to close at N0.70
  8. PORTLAND PAINTS & PRODUCTS NIGERIA PLC down 8.42% to close at N2.61
  9. ARDOVA PLC down 8.33% to close at N13.75
  10. NASCON ALLIED INDUSTRIES PLC down 8.05% to close at N16.00

READ: MTN Nigeria, Dangote Cement stocks fired up, investors gain whopping N708 billion

Outlook

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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.

READ: Access Bank, First Bank up, investors gain N747 billion W/W

  • 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

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Financial Services

Stamp Duty on Nigerian Stock market transactions pegged at 0.08% from December 7

The NSE has given clarifications on the public notice released by the FIRS, itemizing contract notes at an ad valorem rate of 0.08%.

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NSE prepares to launch West Africa’s first Exchange-traded derivatives

The Nigerian Stock Exchange has given clarifications on the public notice released by the Federal Inland Revenue Service (FIRS) in July, itemizing contract notes at an ad valorem rate of 0.08% up from 0.075%, effective 7th December 2020.

The circular released by the Nigerian Stock Exchange reads:

“In reference to the Public Notice in the Business Day Newspaper of Monday, 20 July 2020, captioned ‘Clarification of Administration of Stamp Duties in Nigeria’ issued by the Federal Inland Revenue Service (FIRS) (A copy is attached as Appendix A for ease of reference).

The Public Notice provided, amongst other things, information on dutiable instruments and the applicable flat or ad valorem rates, with Contract Notes 1 itemized at an ad valorem rate of 0.08%. As you know, this is at variance with the current rate of 0.075% administered in the Nigerian Capital Market.”

To that extent, Dealing Members of the Nigerian Stock Exchange are to note the following:

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  • Effective December 7, 2020, the Central Securities Clearing System Plc. (CSCS) will adjust its system to implement the automated deduction of the Stamp Duty rate of 0.08%.
  • Dealing Members are required to immediately engage their software vendors for the required adjustments to their technology applications, to reflect the 0.08% rate ahead of the effective date of 7 December 2020.
  • Dealing Members are required to communicate the changes above to their clients immediately, ahead of the effective date.

What you should know

Nairametrics revealed that the FIRS listed at least 50 types of transactions that are eligible for stamp duty deductions.

Some of the listed chargeable transactions include bank deposit or transfer, loan agreement, Memorandum of Understanding (MoU), sales agreement, will, tenancy/lease agreement, and all receipts.

The FIRS noted that the recently inaugurated FIRS Adhesive Stamp is not the same as the postage stamp administered by NIPOST for the purposes of delivery of items and documents.

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The Stamp Duties Act, 19391 defines Contact Notes as “the note sent by a broker or agent to his principal, or by any person who, by way of business, deals, or holds himself out as dealing, as a principal in any stock or marketable securities, advising the principal, or the vendor or purchaser, as the case may be, of the sale or purchase of any stock or marketable security, but does not include a note sent by a broker or agent to his principal where the principal is himself acting as broker or agent for a principal.”

See the circular below:

Download (PDF, 566KB)

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Stock Market

Fidelity Bank’s Regional Head purchases additional 1 million shares

Fidelity Bank Nigeria Plc has announced the purchase of additional 1 million units of the Bank’s shares by one of its managers.

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Fidelity Bank non-Executive Director purchases 3.1 million shares

Fidelity Bank Nigeria Plc has announced that one of its General Manager/Regional Head, Mr. Kenneth Opara, has purchased additional 1 million units of the Bank’s shares worth approximately N2.8 million.

In a disclosure, signed by the Bank’s Secretary, Ezinwa Unuigboje, the transaction occurred in two tranches with an average share price of N2.78 per unit.

READ: ValuAlliance distributes value fund of N10 per unit for H1, 2020

What you should know

Further checks by Nairametrics revealed that the shares purchased in two tranches were transacted at different prices.

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  • In the first tranche, 6,000 units were purchased at the price of N2.78 per unit, totalling N16,680.
  • In the second tranche, 994,000 units were bought at N2.79, amounting to N2,773,260
  • The transaction occurred on the 25th of November, 2020 and was reported inline with the rules of the Nigerian Stock Exchange.
  • Nairametrics earlier reported that another Fidelity Bank Non-Executive Director had purchased additional 1 million units of the Bank’s share.

READ: CBN buys record high $4.19 billion in continuing strategy of defending the naira.

What this means

The recent purchase by top insiders of the bank could portray an optimistic outlook on the bank’s profit in the near future.

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Also, the surge might also be attributed to a recent disclosure by the bank that it will close the window for internal purchase of its shares by December 1, 2020, until 24 hours after the release of its audited financials.

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