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Nestle’s market capitalization crosses ₦1 trillion mark, amid renewed buying interests

The Market Capitalization of Nestle Nigeria Plc has crossed a N1 trillion mark.

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Why Nestle Nigeria’s return remains strong - EFG Hermes, Nestle Nigeria Plc appoints new Director, Nestle Plc: FY 2019 Revenue beats estimate; but profit underperforms, GTB, Zenith Bank, & Nestle emerge as Renaissance Capital’s top stock picks, Nestlé’s parent company acquires additional shares worth ₦300 million

Nestle Nigeria Plc’s Market Capitalization has crossed the N1 trillion mark amid renewed buying interests on the local bourse.

At the close of trade today, November 10, the Market Capitalization of Nestle is ₦1.127 trillion.

Its share price is N1421.70, with total Outstanding shares of 792,656,252.

The initial widespread pessimism over the performance of equities due to the negative COVID-19 impact spiked a huge sell-off on the local bourse.

As a result of this, the market capitalization of the company fell below N650 billion in March 2020.

GTBank 728 x 90

However, the renewed confidence of investors in the consumer goods giant, spiked buying interests in the shares of the company, after the company released its third-quarter financial results. This drove the share price of Nestle up to its current level.

In like manner, the parent company of Nestle Nigeria, Nestle S.A seized this opportunity to increase its stake in the company, as the relative valuation of Nestle Nigeria and the confidence of the parent’s company in the long-term fundamentals of the company inspired the world’s largest food and beverage company to accumulate additional units of Nestle Nigeria shares.

What you should know

Market capitalization is the aggregate valuation of a company based on its current share price and the total number of outstanding stocks.

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Nairametrics arrived at Nestle’s market capitalization of N1.13 trillion by multiplying its share price of N1421.70, at the close of trade today with its total outstanding shares of 792,656,252.

The buying interests by investors was spiked by the company’s revenue and profits, which recovered in the third quarter of 2020 after the COVID-19 disruption.

This changed investors’ sentiments about the company’s fundamentals. It’s trade segment and supply value chain made analysts review their models, which spiked the 21% increase in the market capitalization of the company.

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Stock Market

U.S stocks fired up on Joe Biden’s pick for US Treasury post

At the close of trading at the New York Stock Exchange, the Dow Jones Industrial Average surged by 1.55% to hit a new all-time high.

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U.S Stocks set to surge higher, on hopes of a stimulus package deal, What Does The Circuit Breaker Tell Us

U.S. stocks were all fired up at its most recent trading session, amid high hopes on U.S President-Elect, Joe Biden’s smooth transition to power and its top pick for the post of U.S treasury, Janet Yellen, saw investors buying at record levels, leading the Dow 30 to reach its all-time high.

  • A significant number of gains were seen in the Basic Materials, Oil & Gas, and Financial sectors.
  • At the close of trading at the New York Stock Exchange, the Dow Jones Industrial Average surged by 1.55% to hit a new all-time high, while the S&P 500 index gained 1.63%, and the NASDAQ Composite index added 1.32%.
  • The best performers of the session on the Dow Jones Industrial Average were Chevron Corp, which rose 4.92% or 4.48 points to trade at 95.51 at the close.
  • Meanwhile, JPMorgan Chase & Co (NYSE: JPM) added 4.28% or 5.05 points to end at 122.92 and American Express Company was up 3.88% or 4.51 points to 120.60 in late trade.

What they are saying

Stephen Innes, Chief Global Market Strategist at Axi, in a note to Nairametrics, hinted at key fundamentals presently pushing U.S stocks to record high:

“The Dow Jones index hit a symbolic milestone overnight, breaking through the 30,000 level. Market sentiment remains underpinned by the trio of successful vaccine trials announced in recent weeks, as well as, by the U.S. President’s decision after the close on Tuesday to co-operate with a transition of power to President-elect Joe Biden.

“Thanks to the multiple vaccines in the pipeline. ‘Joy to the World’ is ringing in earlier than expected as global investors are elated by the vaccine news.”

GTBank 728 x 90

What this means

Janet L. Yellen, a highly respected Economist, has been tipped to become the first female Treasury Secretary. This has apparently excited investors based on her impeccable records leading the U.S Federal Reserve, some years ago.

Bottom line

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Stock traders are simultaneously reveling in the drop in political existential risk premium now knowing the finishing touches on the U.S. election process will not devolve in mobocracy, as the U.S. General Services Administration acknowledged that Joe Biden can start his formal transition to the White House.

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Stock Market

Flour Mills’ GMD acquires shares worth ₦54.6 million

Paul Miyonmide Gbedebo has acquired 1,949,839 additional units of Flour Mills Nigeria Plc, worth ₦54.6 million.

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Flour Mills of Nigeria Plc, 2018 FY: Flour Mills’ shareholders unanimously endorse N4.92 billion dividend , FMN redeems N1 billion pledge to CACOVID relief fund, donates $1.5 million worth of medical supplies

Flour Mills Nigeria Plc (FMN) has notified the Nigerian Stock Exchange that its Group Managing Director, Paul Miyonmide Gbedebo, has acquired 1,949,839 additional units of Flour Mills Nigeria Plc’s shares, worth ₦54.6 million.

In line with the Nigerian Stock Exchange policy on insider dealing, the formal disclosure was made by the Group’s Secretary, Mr. Joseph Umolu.

According to the disclosure, Mr. Gbedebo acquired the additional shares in a single transaction, at an average share price of ₦28.00 per share, on November 17th 2020.

This put the total consideration for the shares purchased by the Managing Director at ₦54,595,492.00

At the end of trading activities today, November 24 2020, shares of Flour Mills Nigeria Plc closed at ₦25.40. This price, however, is 49.41% higher than its 52-week low of ₦17.00.

GTBank 728 x 90

Why this matters

Dealings by insiders of listed companies are corporate actions to be disclosed, as required by the Nigerian Stock Exchange to aid transparency.

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Stock Market

First Bank, UBA, Stanbic jumpstart Nigerian stocks

STANBIC led 25 Gainers as against 16 Losers topped by ETERNA at the end of today’s session.

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Global stocks sell-off persists as resurgence of COVID-19 frighten investors 

Nigerian bourse ended Tuesday’s trading session on a positive note. The All Share index gained 0.64% to close at 34,340.56 points as against the 0.04%  drop recorded on Monday. Its Year-to-Date (YTD) returns currently stands at +27.94%.

  • Nigerian Stocks trading turnover cumulatively tanked lower, as trading volume dipped by 35.67% as against +64.69% uptick recorded on Monday. ZENITH BANK, TRANSCORP and GUARANTY were the most active to boost market turnover.
  • The market breadth closed positive as STANBIC led 25 Gainers as against 16 Losers topped by ETERNA at the end of today’s session – an improved performance when compared with the previous outlook.
  • CILEASING leads the list of active stocks that recorded an impressive volume spike at the end of today’s session.

Top gainers

  1. STANBIC up 7.08% to close at N42.35
  2. UBA up 6.49% to close at N8.2
  3. ACCESS up 5.70% to close at N8.35
  4. FBNH up 6.72% to close at N7.15
  5. UPDCREIT up 9.64% to close at N4.55

Top losers

  1. ETERNA down 9.98% to close at N4.15
  2. FIDSON down 9.81% to close at N4.87
  3. JBERGER down 8.95% to close at N17.3
  4. UACN down 3.77% to close at N7.65
  5. GUINNESS down 2.78% to close at N17.5

Outlook

Nigerian Stocks soared higher at the second trading session of the week, coupled with Africa’s largest exporting earning product, crude oil reaching its highest level since March.

  • Significant buying pressure from Nigerian tier-1 banks which include First Bank, UBA, Stanbic, rallied Nigerian Stocks north, on the bias showing Nigeria’s apex bank in its just-concluded monetary policy meeting retained the monetary policy rate and cash reserve ratio.
  • Nairametrics envisages cautious buying amid reports that still show COVID-19 pandemic will remain on the major headlines, at least in the near term.

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