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Nigerian Stocks earn a whopping N2.1 trillion W/W

It was a historic trading week as the NSE All-Share Index (ASI) posted its largest daily gain in more than five years on Thursday.

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Nigerian Stock Exchange

Nigerian bourse ended the week on a very impressive note.

The All-Share Index and Market Capitalization appreciated by 12.97% to close the week at 35,037.46 and N18.308 trillion respectively.

It was a historic trading week as the NSE All-Share Index (ASI) posted its largest daily gain in more than five years on Thursday, 12 November 2020.

The ASI rose beyond the set threshold of 5% triggering a 30 minute trading halt of all stocks for the first time since the Circuit Breaker was introduced in 2016.

The Circuit Breaker protocol was triggered at 12:55 p.m. when the NSE ASI increased from33,268.36 to 34,959.39.

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The market reopened at exactly 1:25 p.m., with a 10-minute intra-day auction session before resuming continuous trading till the close of the day at 2:30 p.m.

  • Meanwhile, a total turnover of 4.509 billion shares worth N58.733 billion in 47,140 deals was traded this week by investors on the floor of the Exchange, in contrast to a total of 2.067 billion shares valued at N22.636 billion that exchanged hands last week in 25,187 deals.
  • The Financial Services industry (measured by volume) led the activity chart with 3.073 billion shares valued at N35.408 billion traded in 25,894 deals; thus contributing 68.15% and 60.29%to the total equity turnover volume and value respectively.
  • The Conglomerates Industry followed with 437.822 million shares worth N771.280 million in 1,864 deals.
  • The third place was the Consumer Goods Industry, with a turnover of 373.613 million shares worth N7.816billion in 7,471 deals.
  • Trading in the top three equities namely Zenith Bank Plc, FBN Holding Plc, and Transcorp Hotels Plc (measured by volume) accounted for 1.426 billion shares worth N18.083 billion in 9,537 deals, contributing 31.63% and 30.79% to the total equity turnover volume and value respectively
  • Sixty-nine (69) equities appreciated at price during the week, higher than Forty (40) equities in the previous week. Twelve (12) equities depreciated in price, lower than Twenty-four (24)equities in the previous week, while eighty (80) equities remained unchanged, lower than ninety-seven (97) recorded in the previous week.

Top 10 gainers W/W

  1. OANDO PLC up 48.15% to close at N4.00
  2. JAPAUL OIL & MARITIME SERVICES PLC up 43.48% to close at N0.33
  3. N NIG. FLOUR MILLS PLC. up 40.00% to close at N7.70
  4. LIVESTOCK FEEDS PLC. up 36.79% to close at N1.45
  5. FIDSON HEALTHCARE PLC up 36.53% to close at N5.98
  6. TRANSNATIONAL CORPORATION OF NIGERIA PLC up 35.29% to close at N1.15
  7. DANGOTE SUGAR REFINERY PLC up 34.55 % to close at N22.20
  8. NEIMETH INTERNATIONAL PHARMACEUTICALS PLC up 33.50% to close at N2.67
  9. WEMA BANK PLC. up 31.25% to close at N0.84
  10. MUTUAL BENEFITS ASSURANCE PLC. up 30.00% to close at N0.26

Top Losers

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  1. IKEJA HOTEL PLC down 9.91% to close at N1.00
  2. GLOBAL SPECTRUM ENERGY SERVICES PLC down 9.89% to close at N4.19
  3. MORISON INDUSTRIES PLC. down 9.26% to close at N0.49
  4. CONSOLIDATED HALLMARK INSURANCE PLC down 8.11% to close at N0.34
  5. CAP PLC down 3.70% to close at N22.15
  6. LASACO ASSURANCE PLC. down 2.78% to close at N0.35
  7. AIICO INSURANCE PLC. down 2.17% to close at N0.90
  8. PORTLAND PAINTS & PRODUCTS NIGERIA PLC down 2.02% to close at N2.91
  9. ETERNA PLC. down 2.00% to close at N4.90
  10. LEARN AFRICA PLC down 1.74% to close at N1.13

Outlook

Nigerian Stock traders were obviously with all smiles to the bank, earning over N2 trillion naira W/W

The surge got so high that the circuit breaker, had to be brought in on Thursday to halt such an incredible bullish run, in order not to overheat the market.

  • Buying pressure among high and medium capitalized stocks pushed the Sub Saharan Exchange to a market capitalization above the N18 trillion mark, unsurprisingly as the Nigerian debt market becomes more unattractive, with recent 364-day Nigerian treasury Bills going for 0.3%, it’s fair to say more upsides are likely to happen specifically before the end of Q4.
  • However, Nairametrics envisage cautious buying amid the prevailing bullish trend, as recent price action shows the Nigerian bourse is predominately in an overbought position, meaning the bulls are already look exhausted, and profit-taking could come into play.

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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GTBank, Mobil, Cadbury tick up, amid sell-offs in First Bank, UBA

The market breadth closed flat as NCR led 21 Gainers as against 21 Losers topped by AFRIPRUD at the end of today’s session.

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Closed Period

Nigerian Stocks ended Thursday’s trading session on a slightly bullish note. The All Share Index gained +0.10% to close at 34,803 points, as against the 1.25% gain seen on Wednesday. Its Year-to-Date (YTD) returns currently stands at +29.66%.

  • Nigerian Stock Exchange trading turnover ended on a bearish note, taking to account that volume dipped by 40.78% as against the +19.02% gain recorded in the previous session.
  • ZENITHBANK, TRANSCORP, and ACCESS were the most active to boost market turnover.
  • DAARCOMM leads the list of active stocks that recorded an impressive volume spike at the end of today’s session.
  • The market breadth closed flat as NCR led 21 Gainers as against 21 Losers topped by AFRIPRUD at the end of today’s session – an unimproved performance when compared with the previous outlook.

Top gainers

  1. INTBREW up 9.62% to close at N7.18
  2. MOBIL up 9.89% to close at N208.8
  3. CADBURY up 9.09% to close at N9.6
  4. GUINNESS up 7.22% to close at N19.3
  5. GUARANTY up 2.61% to close at N35.4

Top losers

  1. AFRIPRUD down 5.76% to close at N5.89
  2. UBN down 5.17% to close at N5.5
  3. DANGSUGAR down 3.15% to close at N20
  4. UBA down 2.94% to close at N8.25
  5. FBNH down 2.68% to close at N7.25

Outlook

Nigerian bourse ended the fourth trading session on a slightly positive note amid falling oil prices prevailing at the U.S trading session.

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  • Top gains from GTBank, Mobil, Cadbury, and Guinness, neutralized the losses that came from First Bank, UBA, and Union Bank.
  • Nairametrics envisage cautious buying on prevailing market conditions seen in Nigeria’s key international markets, particularly Europe.

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Slack gains 22% on Salesforce buyout offer

Salesforce is reportedly interested in buying Slack, the popular workplace for many leading firms.

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Slack gains 22% on Salesforce buyout offer

Salesforce is reportedly interested in buying Slack. The popular workplace for many leading firms like Amazon has sent shares of the smaller firm up over 22% at the most recent trading session.

In a report credited to WSJ, the companies could reach a deal within days and possibly by the time Salesforce reports its third-quarter financial results, Tuesday.

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The anticipated deal has got global investors excited as Slack shares gained over 37%, according to data retrieved from Bloomberg. Slack is worth $40.70 per share as of the time of writing, valuing it at around $23.22 billion.

Salesforce the world’s biggest seller of customer relationship software is led by co-founder Marc Benioff, a pioneer in providing software via the cloud through a subscription.

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What this means

Slack is popularly known among many firms for its user-friendly interface. It empowers global businesses to embed workflows. Stock experts anticipate such a deal would be beneficial to the Salesforce family of products, which spans marketing, sales, service, and more.

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However, at the time of writing of Salesforce fell around 5% as some investors in the American-based SaaS pioneer were not so delighted about such synergy or perhaps worried about the price that would be required to bring such business to Salesforce fold.

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Bamboo says USD Wire Transfer option is no longer available for deposits

Nigerian based Popular stock broking application, Bamboo, informed its users on Wednesday that it will no longer allow USD wire transfer options for deposits.

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Nigerian based Popular stock broking application, Bamboo, informed its users on Wednesday that it will no longer allow USD wire transfer options for deposits.

Bamboo offers investors a platform to invest in stocks listed on the New York Stock Exchange and NASDAQ. Users can access these markets by depositing dollars in their wallets, or Naira which will then be converting at the prevailing exchange rate (which is usually closer to the parallel market exchange rate).

The company notified its customers via the application’s notification feature leaving the option to fund wallets with United States dollars to USD domiciliary deposits or cash deposits.

“The USD Wire Transfer option is no longer available for deposits. However, you can still make deposits through USD domiciliary transfers or other channels. We apologize for any inconvenience caused.”

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The company also sent an email stating in part as follows;

“We will like to inform you that our USD Wire transfer option is no longer available for use due to regulatory reasons. Effective immediately, no transfers made to our Silvergate or BBVA accounts will be received. We encourage you to use our USD Domiciliary Transfer option on the Bamboo app, or any other payment method you prefer.  We sincerely apologize for any inconvenience this may cause you.” 

The company did not provide further information detailing which regulator may issue the instruction to stop the service.

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What this means

USD Wire transfers allow investors who have domiciliary accounts in the US to transfer dollars to Bamboo’s corresponding account in the US. It also allowed its users to transfer directly from Nigeria to their US Dollar accounts. This helps investors avoid some of the local USD transfer restrictions from one domiciliary account in a bank to a third party account in another bank.

The is often convenient for investors who have dollars abroad and want to avoid the hassles of sourcing forex locally. Whilst no reason was provided for the regulatory requirement, Nairametrics believes it may not be unconnected with several unscrupulous.  activities associated with wired transfers or a Nigerian regulators trying to block a loophole which would allow investors transfer fx out of the country from their domiciilary accounts.

 

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