The NSE All-Share Index depreciated by 0.76% in the week ended Thursday, April 1, 2021. This is after the market recovered from 7 consecutive weeks of losses in the prior week. Overall, the equity market capitalisation dipped by 3.04% in Q1 2021 due to factors such as price markdowns, rising yields and profit-taking.
During the week, prices of 42 equities appreciated, 22 depreciated in price while the remaining 98 equities maintained their prices as the previous week. The total market capitalisation at the close of the market on Thursday was N20.36 trillion, compared to N20.52 trillion in the previous week.
Equity market performance
There were lesser trading activities in the equity market for the week. 1.45 billion shares worth N19.04 billion were traded through 17,400 deals which is 5.6% and 10.7% less than the volume traded and value traded in the previous week, respectively. This may be because there was no trading activity on Friday due to the Easter holidays.
For the 12th consecutive time, the financial services industry topped the activity chart, trading 1.03 billion units of shares valued at N13.37 billion through 9,179 deals in the week. Activities in just the financial industry alone contributed 71.5% and 70.2% to the total equity turnover volume and value, respectively, in the week. This is in tandem with the top traded equities by volume which are: Guaranty Trust Bank Plc, Union Bank Nig. Plc and Wema Bank Plc. They accounted for 46.4% and 54.3% of the total market equity volume traded and value traded, respectively, in the week.
The conglomerates followed on the activity chart with 131.37 million traded shares valued at N578.4 million. Volume traded in the conglomerates sector accounted for 9% of the entire market. The consumer goods industry was also highly traded during the week as 92.94 million shares worth N1.75 billion were traded through 2,892 deals during the week.
Only 6 indices closed higher in the week and one (NSE AseM) remained the same. Specifically, the indices that gained in the week are:
- The NSE-Main Board Index – +0.06%
- NSE Pension Index – +0.78%
- NSE Insurance Index – +2.82%
- NSE AFR Div Yield Index – +2.64%
- NSE MERI Value Index – +1.82%
- NSE Consumer Goods Index – +1.93%
On Thursday, Guaranty Trust Bank Plc marked down its stock price from a closing price of N32.85 to an ex-dividend price of N30.15 after a deduction of its final dividend of N2.70. On the same day, Union Bank Nigeria Plc marked down its share price from a closing price of N5.30 to an ex-dividend price of N5.05 after its final dividend deduction of N0.25.
The top gainers during the week are:
The top losers during the week are:
Exchange-Traded Products (ETPs)
Trading activities in the ETP market improved during the week as the value of ETFs traded increased from N208.95 million in the prior week to N445.29 million (113.1%). Also, the units traded increased by 318% from 25,905 units in the prior week to 108,271 units at the end of the week.
Specifically, the ETFs traded during the week are NEWGOLD, VETGRIF30, MERGROWTH, SIAMLETF40, STANBICETF30, LOTUSHAL15, VETINDETF, VETBANK and VETGOODS.
Fixed Income Securities Market
After the listing of two FGN savings bonds in the prior week, the federal government listed additional units of bonds to three of its pre-existing bonds on the NSE. An extra, 40.01 million units were listed on the 16.2884% FGN MAR 2027 bond bringing the total units outstanding to 808.92 million. Also, for the 12.50% FGN MAR 2035 bond, 86.29 million additional units were listed, bringing the total listed units to 713.20 million. Finally, additional 131.8 million units were listed for the 9.80% FGN JUL 2045 bond, bringing the total units outstanding to 341.26 million.
Despite the listing activities on the bond market, trading activities declined during the week. Units traded declined by 45.9% from 93,124 units in the prior week to 50,358 units at the end of the week. Similarly, the value of units traded declined by 43.3% from N97.5 million to N55.3 million.
Specifically, the bonds traded during the week are: FGSUK2027S3, FGS202164, FG142037S2, FGS202253, FGS202259, FGSUK2025S2 and FGS202375.
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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- 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.
- Sovereign Trust Insurance Plc notifies stakeholders of 26th Annual General Meeting.
- Dangote Cement Plc to hold AGM on May 26th
- Linkage Assurance Plc proposes N500million as final dividend for 2020, and a bonus issue on its existing shares.