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Equities market appreciates marginally over weak investors’ sentiment



By Kayode Tokede

Equities market of the Nigerian Exchange Limited (NGX) last week witnessed cautious trading by investors as the benchmark index, All-Share Index closed the week higher by 2.57 basis points or 0.01 per cent to close 39,485.65 basis points.

Consequently, the equities market Month-Till-Date (MTD) and Year-Till-Date (YTD) returns were flat at +2.4 per cent and -2.0 per cent, respectively.

Specifically, the market reacted slowly to the spike in second quarter (Q2), 2021 Gross Domestic Product (GDP) growth rate and the release of the positive H1, 2021 financial result and the 30 kobo interim dividend declared by Zenith Bank plc.

Sectoral performance was upbeat; the NSE Banking, NSE Insurance and the NSE Oil & Gas indices increased by 0.30 per cent, 1.06 per cent and 0.08 per cent to 378.99 basis points, 190.07 basis points and 1,976.72 basis points respectively.

On the flip side, the NSE Consumer Goods and the NSE Industrial indices moderated by 0.43 per cent and 0.19 per cent to 556.59 basis points and 1,976.72 basis points respectively.

The market breadth for the week was positive as 35 equities appreciated in price, 29 equities depreciated in price, while 92 equities remained unchanged.

UPDC led the gainers table by 37.59 per cent to close at N1.83, per share. Morison Industries followed with a gain of 32.14 per cent to close at N1.85, while Consolidated Hallmark Insurance went up by 21.74 per cent to close to 56 kobo, per share.

On the other side, Associated Bus Company led the decliners table by 15.38 per cent to close at 33 kobo, per share. Unilever Nigeria and Ikeja Hotel followed with a loss of 10 per cent each to close at N13.50 and N1.26 respectively, while SCOA declined by 9.43 per cent to close at N1.44, per share.

Overall, a total turnover of 1.026 billion shares worth N8.183 billion in 18,102 deals were traded last week by investors on the floor of the Exchange, in contrast to a total of 866.544 million shares valued at N12.257 billion that exchanged hands previous week in 17,291 deals.

The Financial Services Industry (measured by volume) led the activity chart with 567.225 million shares valued at N3.658 billion traded in 7,970 deals; contributing 55.30 per cent and 44.70 per cent to the total equity turnover volume and value respectively.

The ICT Industry followed with 126.638 million shares worth N1.164 billion in 1,073 deals, while Consumer Goods traded a turnover of 90.497 million shares worth N1.454 billion in 3,344 deals.

Trading in the top three equities; Sovereign Trust Insurance, Mutual Benefits Assurance and Transnational Corporation of Nigeria (Transcorp) accounted for 247.735 million shares worth N114.399 million in 809 deals, contributing 24.15 per cent and 1.40 per cent to the total equity turnover volume and value respectively.

Cordros Securities Limited stated that, “Considering the lull in the market last week, we believe earnings from the Big banks this week will bring some breath of fresh air to the local bourse. Particularly, as the declaration of interim dividends will accompany the results. Overall, we advise investors to seek trading opportunities in only fundamentally justified stocks as the weak macro story remains a significant headwind for corporate earnings.”

In the new week, analysts at Cowry Asset Management Limited expected the equities market index to trade positively as investors are likely to buy banking shares, especially the tier-one banks amid anticipated interim dividend payment.

capital market

Ecobank declares N182.92bn PAT in Q3 2023



Ecobank Transnational Incorporated, has recorded a profit of N182.92 billion in its third quarter 2023 results.

According to the results posted on the Nigerian Exchange Limited (NGX) website, the Bank announced a 59 percent gross earnings growth in Q3 2023 Results.

The Gross earnings also grew by 59 percent from N761.30 billion to N1.211 trillion.

According to the results, profit before tax stood at N262.17 billion.

Meanwhile in its second quarter results Pre-tax profit increased to N92.52 billion from N56.89 billion profit in Q2 2022.

The increase in second-quarter profits helped its half-year profit before tax to rise by 38 percent to N150.31 billion compared to N108.96 billion in the same period last year.

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capital market

Market capitalisation gains N44.16bn as NGX ASI advances by 0.11%



Since the recent announcement of recapitalisation by the Central Bank of Nigeria Governor, the market had continued to see a rise in investment moves amongst banks thereby boosting the market capitalisation of the NGX.

As at yesterday’s trading, the NGX Market CAP recorded a gain of N44.16billion in Naira terms while the NGX All-Share Index (ASI) advanced by 0.11 percent.

Compared to the previous day’s gain of 0.34 percent, which closed at 71,284.56 basis points, the NGXASI now stands at 39.25 percent.

The total volume of stocks traded also advanced by 49.77 percent to close at N540.09 million, valued at N10.24 billion and traded in 6,516 deals. GTCO was the most traded stock by volume and value, with N67.23 million and N2.60 billion units traded.

At the close of trading, the market recorded 25 gainers, 31 losers, and 55 unchanged. NNFM topped the gainers list, while NSLTECH topped the list of losers.

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capital market

Naira hits N831.47/$1 in official market



The Nigerian naira appreciated against the dollar on Wednesday, 29th November 2023, closing at N831.47/$1 at the official market.

The positive trajectory aligns with expectations among experts, who anticipated that the Central Bank of Nigeria’s (CBN) recent initiative to clear a portion of its FX backlog would boost confidence in the currency.

The domestic currency appreciated 6.06 percent to close at N831.47 to a dollar at the close of business on Wednesday, data from the NAFEM where forex is officially traded, showed.

This represents an N50.41 gain or a 6.06 percent increase in the local currency compared to the N841.14 it closed on Tuesday.

The intraday high recorded was N1159/$1, while the intraday low was N700/$1, representing a wide spread of N459/$1.

According to data obtained from the official NAFEM window, forex turnover at the close of the trading was $140.35 million, representing a 18.88 percent growth compared to the previous day.

However, the naira weakened at the parallel forex market where forex is sold unofficially, the exchange rate depreciated by 0.26 percent, quoted at N1160/$1, while peer-to-peer traders quoted around N1159.47/$1.

The Central Bank of Nigeria (CBN) has said it has made tranche payments to 31 banks to clear the backlog of foreign exchange forward obligations.

The apex bank also disclosed that it has set up foreign exchange frameworks to address the FX issues.

Governor of the CBN, Yemi Cardoso, disclosed this on Friday at the bankers’ dinner in Lagos.

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