COVID-19 Update in Nigeria
US Capitol complex temporarily shut down
Champion Breweries gains 32.35% in a week, following Heineken’s indirect acquisition of its shares
Kinyungu Ventures Research calls for changes to cut-and-paste VC strategy in Africa
Flour Mills shares lose N7.4 billion on NSE, as investors book profit
COVID-19 Update in Nigeria
Daily Parallel Market Exchange Rate – ₦470/$1
4 cryptos gain over 400% in a month, far outperforming Bitcoin
Naira remains stable across forex markets as external reserve continues to rise
Oil prices tumble on fears of global economic recovery
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.
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.”
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
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.
Stock Market
Champion Breweries gains 32.35% in a week, following Heineken’s indirect acquisition of its shares
The share price of Champion Breweries’ stocks since the resumption of the market last week increased by 32.35%.
Champion Breweries stocks have gained 32.35% since the open of trade last week Monday, as investors scamper for the shares of the company at the back of expected takeover by Heineken Brouwerijen B.V.
The share price of the company’s stocks on the NSE, from 11-18 January 2021, increased by 32.35%.
Read Also: U.S leading stocks suffer biggest daily plunge since October 28, 2020
This move is attributable to the recent rush for the shares of the company by investors, following a recent purchase of the shares of the mid-cap company by Heineken’s Special entity.
What you should know
- 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).
Read Also: MTN, SEPLAT, ARDOVA, rally Nigerian stocks up
- According to data from the NSE, Champion Breweries shares cleared at N1.35 per share today on the floor of the exchange with 29,291 units worth N43,350.68 crossing hands in 4 deals.
- At the current price of N1.35, the shares of the company have gained more than 56.98% since the open of trade this year, 4 January 2021. This is 95.65% higher than the shares’ 52 weeks low price of N0.69 per share.
- The current share price of Champions Breweries is the highest in 52 weeks at N1.35 per share.
Stock Market
Flour Mills shares lose N7.4 billion on NSE, as investors book profit
Flour Mills shares lost N7.4 billion in today’s session, amid sell-offs occasioned by profit-taking activities by investors.
Spotlight Stories
First Bank, Dangote stocks drop, investors lose N39.54 billion
The market breadth closed positive as CADBURY led 35 Gainers as against 21 Losers topped by FLOURMILL at the end of today’s session.
Nigerian Stocks ended the first trading session of the week on a bearish note. The All Share Index plunged by 0.23% to close at 41,082.38 index points as against the 0.52% gain recorded on Friday.
- Its Year-to-Date (YTD) returns currently stands at +2.02%. Nigerian Stock Exchange market value stood at N21,49 billion.
- Investors lost N39.54 billion
- Nigerian bourse trading turnover on Monday however printed positive, as volume gained by 10.79% as against -17.64% downtick recorded at the last trading session.
- JAPAULOIL, UNIVINSURE, and TRANSCORP were the most active to boost market turnover.
- The market breadth closed positive as CADBURY led 35 Gainers as against 21 Losers topped by FLOURMILL at the end of today’s session – an unimproved performance when compared with the previous outlook.
Top gainers
- CADBURY up 10.00% to close at N10.45
- BOCGAS up 9.98% to close at N13.77
- LIVESTOCK up 9.95% to close at N2.32
- GUARANTY up 1.82% to close at N33.65
- WAPCO up 0.84% to close at N24
Top losers
- FLOURMILL down 5.49% to close at N31
- FBNH down 3.95% to close at N7.3
- GUINNESS down2.63% to close atN18.5
- NASCON down 1.71% to close at N17.25
- DANGCEM down 1.01% to close at N234.6
Outlook
Nigerian Stocks ended the first trading session of the week on a negative note amid falling oil prices.
- Buying pressure from blue-chip stocks, particularly GTBank, WAPCO could not help the Stock bulls in maintaining their run on the account of profit-taking notice in Dangote, First Bank, and Flour mills.
- Nairametrics expects you to seek the advice of a certified stockbroker or financial advisor in choosing stocks to buy, as some Nigerian stocks exhibit cyclic return.
