By Kayode Tokede
The equities market of the Nigerian Exchange Limited (NGX) on Thursday closed trading activities in the green, as the market bounced back from the previous day trading session loss with a gain of N14.33 billion.
Yesterday’s positive out turn was due to investors increased buying interest in recently depreciated stock prices across the major market sectors and also, the Nigerian Gross Domestic Product (GDP) expanded by 5.01 per cent.
In summary, the All-Share Index (ASI) grew by 27.36 absolute points, representing an increase of 0.07 per cent, to close at 39,477.18 points. Similarly, the overall market capitalisation value gained N14 billion to close at N20.568 trillion.
The market positive performance was driven by price appreciation in large and medium capitalised stocks which are; Eterna, GlaxoSmithKline Consumer Nigeria, Presco, Honeywell Flour Mills and UACN Property Development Company (UPDC).
On market outlook, analysts at Afrinvest Limited said, “In the last trading session for the week, we expect a bullish market performance on the back of bargain hunting activities.”
Furthermore, the market breadth closed positive with 27 gainers as against 12 losers. Eterna recorded the highest price gain of 9.97 per cent to close at N7.50, per share. UPDC followed with a gain 9.74 per cent to close at N1.69, while AIICO went up by 8.42 per cent to close at N1.03, per share.
Glaxosmith rose by 7.94 per cent to close at N6.80, while Honeywell Flour Mills gained 7.45 per cent to close at N3.46, per share. On the other hand, Ikeja Hotel led the losers’ chart by 10 per cent to close at N1.26, per share. SCOA Nigeria followed with a decline of 9.43 per cent to close at N1.44, while Associated Bus Company down by 8.33 per cent to close at 33 kobo, per share.
Champion Breweries lost 4.55 per cent to close at N2.10, while, Japaul Gold and Ventures shed 3.85 per cent to close at 50 kobo, per share.
However, the total volume of trades declined by 5.6 per cent to 186.327 million units, valued at N1.794 billion, and exchanged in 3,595 deals. Transactions in the shares of Sovereign Trust Insurance topped the activity chart with 19.672 million shares valued at N4.643 million. Lafarge Africa followed with 17.431 million shares worth N382.415 million, while Honeywell Flour Mills traded 15.038 million shares valued at N52.410 million.
Mutual Benefits Assurance traded 14.654 million shares valued at N4.520 million, while UPDC transacted 10.395 million shares worth N17.324 million.
Meanwhile, Eterna announced on the Exchange the acquisition of 794.970 million, representing 60.98 per cent equity stake by Preline Limited as part of the divestment process of six of its substantial shareholders.
According to analysts at Investment one research, “The equities market closed up today due to the gains recorded in the Oil & Gas and Banking sectors.
“Going forward, we expect investor’s sentiments to be swayed by the search for real positive returns and developments in the interest rate space. We reiterate that this may be a great period to pick up some quality names with a medium to long-term investment horizon.”
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.
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.
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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