The equity market continued in its bearish run for the 7th consecutive week as the All-share index dipped by 0.69% to close at 38,382.39 points on 19th, March 2021.
Over the week, 33 stocks appreciated in value, 2 stocks lower than the number recorded in the prior week. While a total of 25 stocks depreciated in value, lower than the 38 recorded in the previous week, the remaining 104 stocks remained unchanged in the course of the week.
Equity Market Performance
The NSE All-Share Index depreciated by 0.69%, closing the week at 38,382.39 points. The total market capitalisation also depreciated from N20.221 trillion in the prior week to N20.082 trillion on Friday, thus resulting in a loss of N13.9 billion in the week.
Other indexes in the market however finished higher, with the exception of NSE Mainboard, NSE 30, NSE Insurance, NSE Consumer Goods, NSE Lotus II, NSE Industrial and NSE Growth Indices. The appreciating indices are:
- NSE CG Index: +0.83%
- NSE Premium Index: +0.52
- NSE Banking Index: +2.09%
- NSE Pension Index: +0.55%
- NSE AseM Index: +0.06%
- NSE-AFR Bank Value Index: +2.30%
- NSE AFR Div Yield Index: +3.14%
- NSE MERI Growth Index: +0.21%
- NSE MERI Value Index: +1.88%
The Financial Services industry topped as the most actively traded sector during the week with 1.89 billion shares valued at N12.45 billion in 12,019 deals. Trading activities in just the financial services industry accounted for 80.6% of the total equity volume traded during the week.
The high trading activity in the financial services industry can be traced to the high trading of Unity Bank Plc and Guaranty Trust Bank Plc which were the top 2 most traded stocks during the week.
The natural resources industry followed on the activity chart with 201.26 million shares worth N41.30 million traded in 27 deals. Total volume traded in the industry accounted for 8% of the total volume traded on the NSE during the week. This high trading can also be traced to the large trading of Multiverse Mining and Exploration Plc during the week.
Following the dividend announcement by Africa Prudential Plc and Dangote Sugar Refinery Plc on 2nd and 1st of March respectively, the stocks marked their share price down during the week:
Some of the top gainers and losers in the market during the week are shown below:
Exchange Traded Products (ETPs)
More Exchange Traded Funds (ETFs) were traded during the week as 7 ETFs were traded namely NEWGOLD, VETGRIF30, VSPBONDETF, VETINDETF, MERGROWTH, VETBANK and VETGOODS when compared to the 3 ETFs traded in the prior week.
A total of 435,459 units valued at N2.35 billion were traded through 29 deals in the week. This is 100% and 63,458% higher than the total volume and value traded in the prior week.
The remaining 5 ETFs listed on the NSE were not traded during the week.
Fixed Income Securities Market
On Thursday, 18 March 2021, 162.56 units of the FGN Roads Sukuk Company 1 Plc’s 7 – Year 11.200%, Ijarah Sukuk Bond due 2027 were listed on the NSE. The Sukuk bond was priced at N1,000 per unit and the minimum initial subscription stood at 10 units. Multiples of N1,000 (1 unit) can be purchased thereafter.
A total of 295,829 units of bonds valued at N304.859 million were traded during the week through 20 deals. This is 3,118% and 2,757% higher than the recorded volume and value of bonds traded in the prior week.
The bonds traded during the week are FGSUK2027S3, FGS202164, FGS202261, FG152023S3, and FGSUK2024S1.
Senate calls for the liberalization of cement policy to crash the price of the commodity
The Senate also tasked the FG on providing more industrial incentives to bring new players into the cement industry.
The Nigerian Senate has called for the liberalization of Nigeria’s cement policy to boost production and subsequently crash the price of the commodity in the country.
This motion was raised by Senator Lola Ashiru at today’s senate plenary, the senator also tasked the Federal Government on providing more industrial incentives to bring new players into the cement industry, in addition to the liberalization of the cement policy in Nigeria.
Ashiru explained that to reduce the price of cement and in extension, other building materials in the country, the Federal Government needs to provide an enabling operating environment that will encourage new entrants in the country.
The Senate in conclusion called on the FG to provide more industrial incentives and protections such as concessionary loans and larger tax incentives to encourage new entrants and expand the national cement production infrastructure, as this boost in production will lead to a downward review of cement price in Nigeria.
What industry leaders are saying
Earlier this year the founder of BUA Group, Abdulsamad Rabiu, called for the liberalization of Nigeria’s cement policy to boost production and reduce the price of the commodity.
The billionaire philanthropist faulted the belief that Nigeria is self-sufficient in terms of cement production, noting that recent statistics and figures on Nigeria’s population and cement production do not support this status of sufficiency in cement production as stated by some individuals.
He attributed the high price of cement products in the country to the supply gap which exists in the country, as the few producers who currently operate in the country are unable able to meet the country’s huge and growing demand.
The Group Executive Director, Strategy, Portfolio Development and Capital Projects, Devakumar Edwin, explained that the demand and consumption of cement in the nation currently outstrips supply, and this can be pegged on the growth in the country’s population, and the strong appetite for real estate investment and construction in the country.
He revealed that a supply gap of about 40% exists in the country’s cement market and that all players in the industry are working hard to level production with the rising demand in the country.
Paypal’s Venmo now permits cryptocurrency trading
Venmo will support four different cryptocurrencies: Bitcoin, Ethereum, Bitcoin Cash, and Litecoin.
Venmo, a mobile payment service owned by PayPal has announced that it has started allowing users to buy, hold and sell cryptocurrencies on its app. Just like PayPal, Venmo will support four different cryptocurrencies: Bitcoin, Ethereum, Bitcoin Cash, and Litecoin, and users can carry out transactions with as little as $1 on the app
Founded in 2009, Venmo has over 70 million users and it is one of the most popular payment channels in the US. The payment platform processed around $159 billion in payments last year.
Since the app functions like a social network, adding cryptocurrency will offer a more user-friendly feel for people who love buying and selling crypto.
As bigger companies show more interest in cryptocurrency, there will be wider adoption of virtual currencies in future. Venmo is the latest payment app that is offering support for cryptocurrency on its platform.
Paypal, the parent company of Venmo is one of the most active companies in the crypto space as it allows users to buy, sell and hold cryptocurrencies in their digital wallets. Paypal users can also spend their coins at millions of merchants globally.
Crypto on Venmo is enabled through PayPal’s partnership with Paxos Trust Company, a regulated provider of cryptocurrency products and services.
What they are saying
Darrell Esch, Venmo’s Senior Vice President and general manager said “Our goal is to provide our customers with an easy-to-use platform that simplifies the process of buying and selling cryptocurrencies and demystifies some of the common questions and misconceptions that consumers may have.”
Nairametrics | Company Earnings
Access our Live Feed portal for the latest company earnings as they drop.
- 2020 FY Results: Guinea Insurance Plc reports a loss of N227.7 million.
- 2020 FY Results: Unity Bank Plc posts profit after tax of N2.09 billion.
- Guinea Insurance Plc reports a loss of N142.13 million in 9M 2020.
- Unilever Nigeria Plc set to hold Annual General Meeting on 6th of May.
- UBA Plc posts profit after tax of N38.16 billion in Q1 2021.