The equities market of the Nigerian Stock Exchange closed the first trading session of the week on a positive note as the All Share Index gained 0.6 per cent on Monday.
The NSE ASI rose to 24,827.50 basis points from 24,689.69 basis points, while the market capitalisation increased by N47.4bn to close at N8.54tn.
The losses recorded by 25 stocks on Monday were unable to prevent the market from closing on a positive note.
Thirteen stocks recorded price appreciation, with Vitafoam Nigeria Plc leading the pack as it gained 9.32 per cent to close at N4.69 per share.
Other gainers include Seplat Petroleum Development Company Plc, Fidelity Bank Plc, AIICO Insurance Plc, Skye Bank Plc, United Bank for Africa Plc, Transnational Corporation of Nigeria Plc and Guaranty Trust Bank Plc.
Tiger Branded Consumer Goods Plc led the losers on Monday as it shed five per cent to close at N1.14 per share.
It was followed by International Breweries Plc, Conoil Plc, Zenith International Bank Plc and Learn Africa Plc, which lost 4.97 per cent, 4.96 per cent, 4.92 per cent and 4.44 per cent to close at N19.14, N17.42, N11.60 and N0.86 per share, respectively.
Market activity waned marginally as volume and value traded were down 0.1 per cent and 0.7 per cent to close at 283 million units and N2.9tn, respectively.
The industrial goods index appreciated the most as gains in Dangote Cement drove the index two per cent upwards. Similarly, the oil and gas index rose 0.6 per cent on renewed buy sentiment in Seplat. However, the Banking and Consumer Goods indices depreciated one per cent and 1.4 per cent, respectively due to sustained selling pressures in Zenith Bank and Nestle. The Insurance index declined 0.1 per cent.
Analysts at Afrinvest Research said, “Ahead of full year earnings and corporate actions, we expect more bargain hunting in dividend-paying stocks. However, the volatility in market performance buttresses the need for investors to stay cautious in timing entry, especially for short-term holding period investments, even as we consider the current prices attractive for medium to long-term investors.”
Global Deal Activity Down by 4.5% in October 2020
A total of 6,304 deals were announced globally during October 2020, which is a decrease of 4.5% over the 6,598 deals announced during September, according to GlobalData, a leading data, and analytics company. An analysis of GlobalData’s Financial Deals Database revealed that the deal volume during October remained below the monthly average of Q3 2020.
Aurojyoti Bose, the Lead Analyst at GlobalData, comments: “After demonstrating growth for four consecutive months, the deal volume shrank in October. The decline in deal activity could be attributed to inconsistencies across different regions. The APAC region remained a weak spot, while deal activity remained mostly flat in North America, and the Middle East and Africa (MEA) region witnessed growth in deal activity.”
North America attracted the highest number of investments, followed by APAC, Europe, the MEA, and South, and Central America.
The uncertain global economic landscape lowered the deal volume in October for major markets such as the US, Germany, Australia, France, India, and China compared to the previous month. On the contrary, the UK, Japan, South Korea, and Canada saw growth of 15.6%,14.9%, 3.8%, and 2.2%, respectively, in October as compared to September’s deal volume.
Bose continued: “Most of the deal types witnessed a decline in volume during October compared to the previous month. Private equity, equity offerings, venture financing, debt offerings, and partnership deals volume decreased by a respective 2.4%, 9.1%, 9.8%, 14.6%, and 24.6% – while the deal volume for mergers and acquisitions (M&A) increased by 7.2%.”
Japaul to Invest in Chinese Firm H&H to Deepen Mining and Exploration Business
Japaul Gold & Ventures Plc (Japaul), formerly known as Japaul Oil and Maritime Services Plc, announced it has gotten approval in principle from H&H Mines Limited to invest in or acquire shares in the company once it concluded its fundraising exercise.
According to a statement released through the Nigerian Stock Exchange (NSE), H&H Mines Limited has several licenses, which include two major Mining Leases for 25 years renewable.
The statement noted that extensive exploration has been done on the Mining properties and the last lap of the exploration works is core drilling. This, it said will allow Japaul knows the measured Minerals Reserve contained in the Mine, which it claimed contain Gold, Silver, Lead, Zinc, etc.
Japaul further explained that the need to get the drilling done was what led H&H Mining to engage the services of Xiang Hui International Mining Company Nigeria.
“Since Japaul will eventually be part of H&H Mines Limited, it was necessary that Japaul is carried along on the kind of Contract of Drilling to be entered into, and that was why the signing of the Drilling Contract between the Chinese Company and H&H Mines Limited was concluded at Japaul’s Head Office,” the company stated.
The drilling is expected to be concluded in the next 12 months and within this time, Japaul is expected to have concluded the Fund Raising and formalise her involvement in the Mining.
The company added that Canadian reports revealed that there are huge gold, silver, lead, etc deposits, but it is drilling that will show the actual reserve.
Africa Investment Forum (AIF) Rescheduled to Hold in 2021 – AfDB
Investment Forum to Now Hold in 2021 in a Bid to Curb Possible Second Wave of COVID-19
The Africa Investment Forum scheduled to hold in November 2020 in Johannesburg, South Africa has been rescheduled to hold in2021 as a result of the ongoing global health pandemic.
This announcement was made in a statement by AfDB on Wednesday. The African Development Bank (AfDB) and the Africa Investment Forum founding partners agreed to the postponement of the annual three-day investment market place.
Considering the negative effect of Covid-19 on the global economy, agreement by the two bodies was made after a careful assessment of the impact of COVID-19 on global travels, investments, observing the social distancing rules and curbing the likely possible risk of a second wave.
In the statement, the bank stated that through the forum innovative digital platforms, it would track investments, source for new deals, progress on financial closure of transactions and other existing deals.
“At the 2019 Africa Investment Forum, 57 deals valued at $67.7bn were tabled for discussions. Fifty-two deals worth $40.1bn secured investment interest.
“In July this year, the AIF Founding partners pledged to strengthen strategic partnership engagement and commitments for Africa Investment Forum Market Days 2021, to help ‘reboot investments in Africa.’ They underscored the need to boost local manufacturing while leveraging the continent’s vast resources to unlock investment.”
In the statement, Africa Investment Forum objectives are achieved through the forum’s four pillars; Closing, Connecting, Engaging and Investment Tracking.
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