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.
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
- AIRTELAFRI up 5.00% to close at N500
- BUACEMENT up 4.77% to close at N53.45
- DANGCEM up 3.42% to close at N193.2
- NESTLE up 1.82% to close at N1400
- NEM up 0.78% to close at N2.6
Top Losers
- ARDOVA down 10.00% to close at N13.5
- WAPCO down 10.00% to close at N22.05
- GUINNESS down 9.55% to close at N18
- FLOURMILL down 8.47% to close at N25.4
- 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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Airtel, WAPCO, MRS rally up, investors gain N46 billion
The All Share Index gained 0.21% to close at 41,088.96 index points. Year to date return and market capitalization settled at 2.03%, and N21.49 trillion respectively
Nigerian Stocks ended the first trading session on a bullish note.
The All Share Index gained 0.21% to close at 41,088.96 index points. Year-to-date return and market capitalization settled at 2.03%, and N21.49 trillion respectively. Investors gain N45.49 billion.
- A total volume of 333 million units of shares, valued at N2.64billion exchanged hands in 5,640 deals. TRANSCORP (-5.26%) finished the most traded shares by volume at 48.9million, while ZENITHBANK (0.00%) topped by value at N418 million.
- Market breadth was however inverse of the broad index with 30 losers against 19 gainers. MRS (+9.82%) led the gainer’s chart today, while CILEASING (-10.00%) was the top loser.
- Performance across sectors was mixed; like Oil & Gas (-0.80%), Consumer Goods (-0.72%) and Insurance (-0.58%) closed in red, while the Industrial and Banking indexes improved by +0.54 and 0.49% respectively.
Top gainers
- MRS up 9.82% to close at N12.3
- JBERGER up 3.17% to close at N19.5
- WAPCO up 1.92% to close at N26.5
- DANGCEM up 0.85% to close at N236
- AIRTELAFRI up 0.38% to close at N855
Top losers
- CILEASING down 10.00% to close at N5.13
- ARDOVA down 9.78% to close at N18.45
- INTBREW down 6.53% to close at N6.16
- NASCON down 5.81% to close at N16.2
- UNILEVER down 2.22% to close at N13.2
Outlook
Nigerian Bourse recorded an impressive winning streak this week as some NSE30 stocks including, AIRTELAFRI, DANGCEM, WAPCO triggered the upward run on Monday’s trading session.
- The Nigerian Stock market advance to close in positive territory as buying interest was seen on stocks across the board.
- Nairametrics however, envisages cautious buying, amid improved market conditions in Nigeria’s financial market.
Spotlight Stories
Champion Breweries shares increase by a whopping 58% in six trading sessions
Champion Breweries stocks are up by more than 58% in just six trading sessions amid expectations of MTO and by Heineken.
Champion Breweries stocks are up by more than 58% in just six trading sessions as buying interests by investors continue to prop the shares of the company upon the expectation of a mandatory takeover by Heineken.
Findings by Nairametrics at the close of trading today, 25th of January 2021, revealed that the share price of Champion Breweries has increased from N1.35 to N2.14 in just six trading sessions on the NSE.
This indicates that the shares of Champion Breweries Plc increased by 58.52% between the close of trade on Friday 15th of January, and Monday 25th January 2021.
It is essential to understand that buyers dominated trading activities on the company’s shares on the floor of the Nigerian Stock Exchange as the market price of the company’s shares went up by 9.74%, less than 20 minutes after the NSE opened, as buying pressure by investors continue to push the shares of the company higher.
The drive behind the increase in Champion Breweries shares
Investors’ buying interests in Champion Breweries Plc shares, was said to have been triggered by the expectation of a mandatory takeover by Heineken through its Special Purpose Entity, Raysun Nigeria Limited, which investors believe would birth a potential merger with the largest Brewer in the country, Nigerian Breweries Plc.
Recall that Nairametrics reported that, Raysun Nigeria Limited, a Special Purpose Entity (SPE) wholly-owned by Heineken Brouwerijen B.V., acquired 1,903,609,538 additional shares of the brewery company, worth N4.95 billion on 7 January 2021, at a price of N2.60 per share.
The acquisition took Heineken’s total stake in Champion Breweries to 6,633,043,538 or 84.72% (indirectly).
What you should know
- Since the news of Heineken’s indirect acquisition of additional shares in Champion Breweries through Raysun Nigeria Limited was disclosed on the 8th of January 2021, shares of the company have appreciated by 110%.
- The YTD gains of the shares of Champion Breweries on NSE, at the close of trading activities today currently stands at 148.84%.
