The bulls returned to the equity market during the week ended March 26, 2021 after 7 consecutive weeks of loss on the market. At the end of the week, NSE market capitalisation grew to N20.52 trillion from N20.08 trillion (2.17%) in the prior week.
During the week, the price of 48 equities appreciated, 18 equities declined, while the price of the remaining 96 equities remained unchanged in the market.
Equity market performance
The total turnover of shares reduced in the week ended March 26, 2020 from 2.34 billion shares in the prior week to 1.53 billion shares. The value of the traded shares however increased from N19.27 billion in the previous week to N21.31 billion.
The higher bidding for 48 appreciating stocks on the NSE pushed the NSE ASI to gain 2.17% in the week. Other indices also closed higher with the exception of NSE MERI Value and NSE Sovereign Bond which marginally declined by 1.54% and 0.13% respectively.
Also, NSE AseM, NSE AFR Div Yield, and NSE Growth Indices all closed flat at the end of the week. The other indices that appreciated are:
- Main Board Index: +2.97%
- NSE 30 Index: +2.64%
- NSE CG Index: +1.81%
- Premium Index: +1.35%
- Banking Index: +0.21%
- Pension Index: +2.49%
- Insurance Index: +0.94%
- NSE-AFR Bank Value Index: +3.09%
- MERI Growth Index: +5.19%
- Consumer Goods Index: +1.41%
- Oil/Gas Index: +0.69%
- Lotus II: +1.59%
- Industrial Goods Index: +2.94%
The Financial Services industry again topped the activity chart on the NSE in the week, trading 1.1 billion shares worth N12.29 billion in 11,106 deals. The total equity turnover and value of the financial services industry at the end of the week represented 71.67% and 57.69 of the entire market’s total equity turnover and value respectively.
The consumer goods industry was the next top activity sector. A total of 177.67 million shares worth N3.58 million were traded in 3,139 deals. The conglomerates followed, having traded 99.61 million shares worth N216.99 million in 856 deals.
Union Bank Nigeria Plc, Guaranty Trust Bank Plc, and Dangote Sugar Refinery Plc were the top traded equities by volume. They contributed 44.95% and 44.56% to the total equity turnover volume and value respectively at the end of the week.
UBA Plc marked down its stock price on Monday, from a closing price of N7.15k to N6.80k after the deduction of N0.35k dividend per share. Ardorva Plc also marked down its stock price on Friday, from a closing price of N15.4k to N15.21k after the deduction of its N0.19k dividend per share.
Some of the top gainers and losers in the market during the week are shown below:
Exchange-Traded Products (ETPs)
There was a significant drop in trading of ETPs during the week. A total of 25,905 units were traded, 94% lesser than the 435,459 units traded in the prior week. Also, the value of units traded declined by 91% week-on-week from N2.35 billion in the prior week to N208.95 million.
The 5 ETFs traded during the week are NEWGOLD, SIAMLETF40, VETBANK, VETGOODS, and VETGRIF30. The remaining 7 listed exchange-traded funds were not traded in the week.
Fixed Income Securities Market
On Wednesday, March 24, 2021 two Federal Government of Nigerian (FGN) Savings Bonds were listed on the NSE. 5.181% FGS MAR 2023 bond with total units of 357,419 was listed at N1,000 each.
Also, 6.181% FGS MAR 2024 bond with total units of 504,244 was listed at N1,000 units each. The coupon payment dates for both saving bonds will be 10 June, 10 September, 10 December and 10 March.
Although deals increased in the bonds market from 20 in the prior week to 47 deals at the end of the week, March 26, 2021, the total units and value traded declined by 69% and 68% respectively. A total of 93,124 units valued at N97.45 million were traded in the week.
Specifically, the bonds traded are: FGSUK2027S3, FGS202267, FGSUK2024S1, FGS202259, FGS202154, FGS202257, FG132036S2, FG132026S1 and FGS202265.
Nigerian stocks that outperformed Bitcoin, Ethereum and Cardano in April
According to data tracked on the NSE, the shares of Japaul Gold and Ventures Plc, Meyer Plc and University Press Plc delivered better returns than Bitcoin, Cardano, Ethereum.
The recent crypto-mania has presented investors who are nervous about the stock market with key opportunities to capitalize on, through alternative investments in cryptocurrencies.
The attendant effect of this led to the move which saw the total market capitalization of Bitcoin, Ethereum, Litecoin, XRP and other crypto assets surge above the $400 billion mark in Q4 2020 to more than $2 trillion in recent times – the total market capitalization of all cryptocurrencies are valued at about $1.74 trillion as of the time of drafting this report.
Despite the gains Bitcoin, Ethereum and Cardano delivered to their holders, the market performance of these digital assets since the beginning of April has been comparatively unimpressive. Of the three cryptocurrencies, only Ethereum maintains month to date gains in excess of 15%, while the month to date losses in others stand in excess of 12%.
The performance of these digital assets so far in April
Data tracked on Binance, a cryptocurrency exchange that provides a platform for trading various cryptocurrencies revealed that Ethereum’s month to date gains in the month of April is put at about 15% while the month-to-date loss of Bitcoin and Cardano is put at about 16% and 12% respectively.
Stocks on NSE delivered decent returns in the month of April, outperforming some cryptos. Some stocks on the Nigerian Stock Exchange have delivered impressive returns for their holders in the month of April, despite the recent lacklustre state of key shares listed on the exchange.
According to data tracked on the Nigerian Stock Exchange, the shares of the following companies have delivered better returns than Bitcoin, Cardano, Ethereum and some other cryptocurrencies so far in this month.
Japaul Gold and Ventures Plc
(JAPAULGOLD), MtD gains: 46.83%
The rebranded and restructured mining company with a key focus on gold and other solid minerals exploration is the best-performing stock on NSE this month with a month to date gain of about 46.83%.
Despite the fact that the stock is currently trading slightly below its open price of N0.62 per share for the year, it has risen from a YTD low of N0.41 to the current N0.60 per share price in recent times. Thus returning a gain of 46.8% for its holders.
Meyer Plc (MEYER)
MtD gains: 29.16%
The shares of the key player in the paint and decorative industry increased from N0.41 per share at the open of trade this month, to N0.53 per share as of the open of market this morning, to print a month to date gain of 29.16%.
The stock of the paint manufacturer is presently trading about 6% higher than its open price of N0.50 per share for the month of April.
University Press Plc (UPL)
MtD gains: 19.77%
The shares of one of Nigeria’s foremost publishers of educational and general reading materials, University Press Plc have increased from N1.07 per share at the close of trade on the 31st of March, to N1.28 per share at the open of trade on the Nigerian Stock Exchange today.
The recent surge in the shares of the company was triggered by buying interest on the floor of the exchange and this renewed interest in the shares of the publisher has seen its shares return an impressive 19.77% month to date gains to investors since the start of this month.
What you should know
- The Nigerian Stock Exchange All-share Index “NGX ASI” is on course to deliver its first weekly gains after weeks of consistent depreciation in the market index and capitalization.
- This decent performance can be linked to the renewed buying interest in the shares of some key companies with impressive fundamentals as Q1 2021 financial results start to trickle in.
Biden’s capital gains tax disturbs Wall street
The Dow Jones Industrial Average fell 321.41 points to 33,815.90, or 0.92%.
Following news that President Joe Biden is planning to propose far higher capital gains taxes for the wealthy, Wall Street sank sharply on Thursday. The Dow Jones Industrial Average fell 321.41 points to 33,815.90, or 0.92%. The blue-chip index fell 420 points at its lowest point for the day. The S&P 500 lost 0.94 percent of its earlier gains to close at 4,134.98, while the Nasdaq Composite fell 0.94 percent to 13,818.41.
Bloomberg News announced Thursday afternoon that Biden is considering raising the capital gains tax rate for rich Americans to as much as 43.4 percent. The measure would increase the capital gains tax threshold on people with $1 million or more to 39.6 percent, up from the existing rate of 20%.
- The Stoxx Europe 600 Index advanced 0.7% while the MSCI All-Country World Index declined 0.2%.
- Capital gains plan does not exempt crypto as Bitcoin fell for the sixth time in seven days, widening losses. If investors keep the cryptocurrency for longer than a year, they will be subject to capital gains tax.
- Growth stocks led the intraday downturn on Thursday, with shares of Tesla and Amazon sliding 3.3 percent and 1.6 percent, respectively, as a result of higher capital gains taxes. The iShares S&P 500 Growth ETF fell 1%, outperforming its value counterpart.
- Equifax up 15.06% to close at $221.64.
- Tractor Supply up 4.43% to close at $188.14.
- AT&T up 4.15% to close at $31.36
- Arconic up 3.67% to close at $27.43
- Danaher up 3.43% to close at $252.79
- Huntington Bancshares -6.71% to close at $14.46
- Dow down -6.01% to close at $60.92
- LyondellBasell Industries down -5.66% to close at $102.00
- Micron down -5.34% to close at $84.71.
- Nucor down -5.08.% to close at $76.11
- Long-term buyers will see a significant cost spike as a result of this tax increase. If investors believe the plan has a chance of becoming law next year, they may be expected to sell this year.
- Some analysts believe that it may be difficult to pass the bill into law in the senate.
Nairametrics advises cautious buying in this era of growing uncertainties.
Nairametrics | Company Earnings
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- Stanbic IBTC profit plunges by over 45% to N11.3 billion in Q1 2021.
- Nigerian Breweries Plc grows profit by 39% to N7.7 billion in Q1 2021.
- Trans Nationwide Express Plc profit after tax slumps by over 95% in Q1 2021
- FCMB approves FY 2020 dividend pay-out of N2.97 billion to shareholders.
- Africa Prudential Plc posts profit after tax of N381.35 million in Q1 2021.