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Equities Market Extends Losses on Negative Sentiments

Published

7 years ago

on

Nigerian Exchange Limited - Investors King
  • Equities Market Extends Losses on Negative Sentiments

The Nigerian equities market extended its weekly depreciation to sixth consecutive week as the Nigerian Stock Exchange (NSE) All-Share Index (ASI), fell by 0.8 per cent to close at 25,333.39 last week.

The market had maintained a steady decline over the past weeks, shedding 3.0 per cent the previous week. Although the weak negative investors sentiments persistent last week, a number of high-capped stocks halted their losses last week, leading to a lower decline of 0.8 per cent. The market capitalisation of the NSE fell by the same margin to close lower at N8.721 trillion. Apart from the NSE ASI, all other indices finished lower during the week with the exception of the NSE Banking and NSE Consumer Goods Indices that appreciated by 0.02 per cent and 0.42 per cent respectively.

Daily Market Performance   Summary

Trading resumed on negative note as  the NSE ASI fell by 0.15 per cent to close at 25,499.00. The depreciation recorded in the share prices of FBN Holdings, Ecobank Transnational Incorporated (ETI), Dangote Sugar, Mobil   Oil and Stanbic IBTC Holdings were responsible for the decline in NSE ASI. Total value of stocks traded on the floors on Monday was N858.54 million, down by 3.34 per cent from N888.17 million the previous day.

Performance across sectors was broadly bearish with only the NSE Industrial Goods Index gaining marginally. The  NSE Insurance Index led sector decliners, falling by  0.6 per cent on account of losses in Continental Reinsurance Plc (-4.8 per cent) and NEM  Insurance (-1.4 per cent). Similarly,  the NSE  Oil & Gas Index closed 0.36 per cent lower as a result of  profit taking in Mobil Oil  (-2.6 per cent) and Total Nigeria Plc(-2.5 per cent). The NSE Banking Index shed 0.6 per cent to close in the red on the back of weak appetite for ETI (-2.0 per cent), Stanbic IBTC (-1.9 per cent) and Zenith Bank (-0.2 per cent). Losses in Dangote Sugar (-4.9 per cent) and International Breweries (-1.5 per cent) depressed the NSE Consumer Goods Index by 0.1 per cent.

The negative sentiments continued to drive the market down on Tuesday, causing the market the NSE ASI to hit a seven-month low. Specifically, the NSE ASI fell by 0.15 per cent to close at 25,461.34, increasing the month-to-date and year-to-date decline to 6.46 per cent and 11.47 per cent respectively.

Tuesday’s decline resulted from heavy sell offs across oil and gas sector. For instance, Forte Oil Plc fell by 9.7 per cent, while Total Nigeria Plc went down by 5.0 per cent. In all, 17 stocks declined compared with 11 stocks that appreciated. Forte Oil Plc led, declining by 9.7 per cent to close at N74.62.

The sell-off in Forte Oil Plc came after the company successfully raised N9 billion bond under its N50 billion bond issuance programme. The   company had said the funds  would  be used to refinance existing short term commercial bank loan obligations and to finance the retail outlet expansion of the company.

The Group Chief Executive Officer, Forte Oil, Mr. Akin Akinfemiwa  had said: “With the raising of this initial capital which has been fully underwritten shows the confidence the investing public has in Forte Oil Plc as an investment of choice. This bond programme being the first in the downstream sector, is testament to Forte’s position within the downstream sector and allows the company to actualise the vision of the Board to continue to provide value to its shareholders regardless of the economic climate.”

The NSE Oil & Gas Index led the decliners with 2.5 per cent, while NSE Consumer Goods Index followed with a marginal decline of 0.02 per cent. On the positive side,  the NSE  Banking Index rebounded 0.05 per cent  on the back of bargain hunting in Access Bank  (+0.5 per cent), Zenith Bank Plc (+0.4 per cent) and Guaranty Trust Bank (+0.3 per cent).

The bear run was halted on Wednesday as the NSE ASI 0.22 per cent to close higher at 25,517.00 on bargain hunting by investors on some of the highly discounted stocks to increase their portfolio. Similarly, market capitalisation added N19.2 billion to close at N8.8 trillion. At the close trading, 19 stocks gained compared to 11 that depreciated.

Sterling Bank Plc led the price gainers with 5.7 per cent, followed by Oando Plc with 5.0 per cent. Flour Mills of Nigeria Plc and PZ Cussons Nigeria Plc advanced 4.9 per cent each. Conversely, Forte Oil Plc led price losers with 6.2 per cent to close at N70.00 per share. Julius Berger Nigeria plc trailed with 5.0 per cent, just as African Prudential Registrars Plc and Total Nigeria Plc rose by 4.3 per cent.

In terms of sectoral performance, all the sectors closed in the green except the NSE Oil and Gas Index that shed weight. The NSE  Banking Index led sector gainers after appreciating 0.75 per cent following investors’ swoop on GTBank Plc(+1.2 per cent) and  United Bank for Africa Plc (+1.2 per cent). The uptrend in Nestle Nigeria Plc (+1.3 per cent), PZ Cussons Nigeria Plc (+4.9 per cent) and Nigerian Breweries Plc (+0.2 per cent) bolstered the  NSE Consumer Goods Index by 0.50 per cent. Also the NSE Insurance Index appreciated 0.2 per cent on account of AIICO Insurance Plc (+3.5 per cent), while the NSE Industrial Goods Index rose 0.1 per cent.

One day after rebounding, the bears returned and reclaimed the control of the market, pushing the NSE ASI down by 0.10 per cent to close at 25,490.70. The depreciation recorded in the share prices of Forte Oil, Stanbic IBTC, Total, Zenith Bank and Nigerian Breweries were responsible for the decline. Similarly, market capitalisation lost N9.1 billion to close at  N8.8 trillion.

Sectorally, the performance was mixed.  The  NSE Oil & Gas Index topped the losers’ chart closing 1.4 per cent lower due to profit taking in Total (-9.0 per cent) and continuous sell-off in Forte Oil (-1.4 per cent) while the  NSE Consumer Goods Index  shed ).13 per cent on the back of weak appetite in Nigerian Breweries Plc (-0.2 per cent) and International Breweries  (-4.1 per cent). On the  positive side, the NSE Banking Index went up by  0.15 per cent  following gains  posted by  GTBank (+0.9 per cent) and Access Bank (+0.2 per cent) which offset losses in Zenith Bank (-1.1 per cent). The NSE Insurance Index rose marginally 0.02 per cent on account of a rally in NEM Insurance (+4.2 per cent).

The market closed lower on Friday as the NSE ASI fell by 0.62 per cent to close at 25,333.39. The depreciation recorded in the share prices of Forte Oil, Stanbic IBTC, Lafarge, Zenith Bank and Dangote Cement accounted for the decline.

Market turnover

Meanwhile, investors traded 639.439 million shares worth N6.455 billion in 11,799 deals were traded last week, compared with 823.547 million shares valued at N5.444 billion that exchanged hands  in 11,634 deals the previous week. The Financial Services Industry remained the most traded with 491.758 million shares valued at N2.211 billion traded in 6,241 deals; thus contributing 76.90 per cent and 34.25 per cent to the total equity turnover volume and value respectively. The Conglomerates Industry followed with 64.507 million shares worth N58.500 million in 681 deals. The third place was occupied by the Consumer Goods Industry with a turnover of 54.901 million shares worth N3.307 billion in 2,386 deals.

Gainers and losers

The price movement chart showed that 27 equities appreciated in price during the review week, higher than 10 equities of the previous week. Conversely, 26 equities depreciated in price, lower 48 equities of the previous week. In terms of gainers, Flour Mills of Nigeria Plc led  with 20.3 per cent, trailed by African Prudential Registrars Plc with 14.5 per cent. Fidson Healthcare Plc appreciated by 12.9 per cent, while Unity Bank Plc rose by 9.2 per cent. Champion Breweries Plc, Mobil Oil Nigeria Plc and Diamond Bank Plc garnered 8.4 per cent and 7.1 per cent in that order among others.

Conversely, Forte Oil Plc led the price losers, declining by 24 per cent, trailed by Okomu Oil Palm Plc with 13.8 per cent, while Neimeth International Pharmaceuticals Plc shed 12.7 per cent. Airline Services and Logistics Plc. UACN Property Development Company Plc and Total Nigeria Plc declined by 11.8 per cent, 11.7 per cent ND 10.9 per cent respectively.

Goddy Egene and Nosa Alekhuogie

The Nigerian equities market extended its weekly depreciation to sixth consecutive week as the Nigerian Stock Exchange (NSE) All-Share Index (ASI), fell by 0.8 per cent to close at 25,333.39 last week.

The market had maintained a steady decline over the past weeks, shedding 3.0 per cent the previous week. Although the weak negative investors sentiments persistent last week, a number of high-capped stocks halted their losses last week, leading to a lower decline of 0.8 per cent. The market capitalisation of the NSE fell by the same margin to close lower at N8.721 trillion. Apart from the NSE ASI, all other indices finished lower during the week with the exception of the NSE Banking and NSE Consumer Goods Indices that appreciated by 0.02 per cent and 0.42 per cent respectively.

Daily Market Performance   Summary

Trading resumed on negative note as  the NSE ASI fell by 0.15 per cent to close at 25,499.00. The depreciation recorded in the share prices of FBN Holdings, Ecobank Transnational Incorporated (ETI), Dangote Sugar, Mobil   Oil and Stanbic IBTC Holdings were responsible for the decline in NSE ASI. Total value of stocks traded on the floors on Monday was N858.54 million, down by 3.34 per cent from N888.17 million the previous day.

Performance across sectors was broadly bearish with only the NSE Industrial Goods Index gaining marginally. The  NSE Insurance Index led sector decliners, falling by  0.6 per cent on account of losses in Continental Reinsurance Plc (-4.8 per cent) and NEM  Insurance (-1.4 per cent). Similarly,  the NSE  Oil & Gas Index closed 0.36 per cent lower as a result of  profit taking in Mobil Oil  (-2.6 per cent) and Total Nigeria Plc(-2.5 per cent). The NSE Banking Index shed 0.6 per cent to close in the red on the back of weak appetite for ETI (-2.0 per cent), Stanbic IBTC (-1.9 per cent) and Zenith Bank (-0.2 per cent). Losses in Dangote Sugar (-4.9 per cent) and International Breweries (-1.5 per cent) depressed the NSE Consumer Goods Index by 0.1 per cent.

The negative sentiments continued to drive the market down on Tuesday, causing the market the NSE ASI to hit a seven-month low. Specifically, the NSE ASI fell by 0.15 per cent to close at 25,461.34, increasing the month-to-date and year-to-date decline to 6.46 per cent and 11.47 per cent respectively.

Tuesday’s decline resulted from heavy sell offs across oil and gas sector. For instance, Forte Oil Plc fell by 9.7 per cent, while Total Nigeria Plc went down by 5.0 per cent. In all, 17 stocks declined compared with 11 stocks that appreciated. Forte Oil Plc led, declining by 9.7 per cent to close at N74.62.

The sell-off in Forte Oil Plc came after the company successfully raised N9 billion bond under its N50 billion bond issuance programme. The   company had said the funds  would  be used to refinance existing short term commercial bank loan obligations and to finance the retail outlet expansion of the company.

The Group Chief Executive Officer, Forte Oil, Mr. Akin Akinfemiwa  had said: “With the raising of this initial capital which has been fully underwritten shows the confidence the investing public has in Forte Oil Plc as an investment of choice. This bond programme being the first in the downstream sector, is testament to Forte’s position within the downstream sector and allows the company to actualise the vision of the Board to continue to provide value to its shareholders regardless of the economic climate.”

The NSE Oil & Gas Index led the decliners with 2.5 per cent, while NSE Consumer Goods Index followed with a marginal decline of 0.02 per cent. On the positive side,  the NSE  Banking Index rebounded 0.05 per cent  on the back of bargain hunting in Access Bank  (+0.5 per cent), Zenith Bank Plc (+0.4 per cent) and Guaranty Trust Bank (+0.3 per cent).

The bear run was halted on Wednesday as the NSE ASI 0.22 per cent to close higher at 25,517.00 on bargain hunting by investors on some of the highly discounted stocks to increase their portfolio. Similarly, market capitalisation added N19.2 billion to close at N8.8 trillion. At the close trading, 19 stocks gained compared to 11 that depreciated.

Sterling Bank Plc led the price gainers with 5.7 per cent, followed by Oando Plc with 5.0 per cent. Flour Mills of Nigeria Plc and PZ Cussons Nigeria Plc advanced 4.9 per cent each. Conversely, Forte Oil Plc led price losers with 6.2 per cent to close at N70.00 per share. Julius Berger Nigeria plc trailed with 5.0 per cent, just as African Prudential Registrars Plc and Total Nigeria Plc rose by 4.3 per cent.

In terms of sectoral performance, all the sectors closed in the green except the NSE Oil and Gas Index that shed weight. The NSE  Banking Index led sector gainers after appreciating 0.75 per cent following investors’ swoop on GTBank Plc(+1.2 per cent) and  United Bank for Africa Plc (+1.2 per cent). The uptrend in Nestle Nigeria Plc (+1.3 per cent), PZ Cussons Nigeria Plc (+4.9 per cent) and Nigerian Breweries Plc (+0.2 per cent) bolstered the  NSE Consumer Goods Index by 0.50 per cent. Also the NSE Insurance Index appreciated 0.2 per cent on account of AIICO Insurance Plc (+3.5 per cent), while the NSE Industrial Goods Index rose 0.1 per cent.

One day after rebounding, the bears returned and reclaimed the control of the market, pushing the NSE ASI down by 0.10 per cent to close at 25,490.70. The depreciation recorded in the share prices of Forte Oil, Stanbic IBTC, Total, Zenith Bank and Nigerian Breweries were responsible for the decline. Similarly, market capitalisation lost N9.1 billion to close at  N8.8 trillion.

Sectorally, the performance was mixed.  The  NSE Oil & Gas Index topped the losers’ chart closing 1.4 per cent lower due to profit taking in Total (-9.0 per cent) and continuous sell-off in Forte Oil (-1.4 per cent) while the  NSE Consumer Goods Index  shed ).13 per cent on the back of weak appetite in Nigerian Breweries Plc (-0.2 per cent) and International Breweries  (-4.1 per cent). On the  positive side, the NSE Banking Index went up by  0.15 per cent  following gains  posted by  GTBank (+0.9 per cent) and Access Bank (+0.2 per cent) which offset losses in Zenith Bank (-1.1 per cent). The NSE Insurance Index rose marginally 0.02 per cent on account of a rally in NEM Insurance (+4.2 per cent).

The market closed lower on Friday as the NSE ASI fell by 0.62 per cent to close at 25,333.39. The depreciation recorded in the share prices of Forte Oil, Stanbic IBTC, Lafarge, Zenith Bank and Dangote Cement accounted for the decline.

Market turnover

Meanwhile, investors traded 639.439 million shares worth N6.455 billion in 11,799 deals were traded last week, compared with 823.547 million shares valued at N5.444 billion that exchanged hands  in 11,634 deals the previous week. The Financial Services Industry remained the most traded with 491.758 million shares valued at N2.211 billion traded in 6,241 deals; thus contributing 76.90 per cent and 34.25 per cent to the total equity turnover volume and value respectively. The Conglomerates Industry followed with 64.507 million shares worth N58.500 million in 681 deals. The third place was occupied by the Consumer Goods Industry with a turnover of 54.901 million shares worth N3.307 billion in 2,386 deals.

Gainers and losers

The price movement chart showed that 27 equities appreciated in price during the review week, higher than 10 equities of the previous week. Conversely, 26 equities depreciated in price, lower 48 equities of the previous week. In terms of gainers, Flour Mills of Nigeria Plc led  with 20.3 per cent, trailed by African Prudential Registrars Plc with 14.5 per cent. Fidson Healthcare Plc appreciated by 12.9 per cent, while Unity Bank Plc rose by 9.2 per cent. Champion Breweries Plc, Mobil Oil Nigeria Plc and Diamond Bank Plc garnered 8.4 per cent and 7.1 per cent in that order among others.

Conversely, Forte Oil Plc led the price losers, declining by 24 per cent, trailed by Okomu Oil Palm Plc with 13.8 per cent, while Neimeth International Pharmaceuticals Plc shed 12.7 per cent. Airline Services and Logistics Plc. UACN Property Development Company Plc and Total Nigeria Plc declined by 11.8 per cent, 11.7 per cent ND 10.9 per cent respectively.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Banking Sector

Adesola Adeduntan’s Early Departure Prompts First Bank Holdings to Scrap Capital Raise Plans

Published

30 mins ago

on

April 20, 2024

By

FirstBank Headquarter - Investors King

First Bank Holdings Plc has decided to scrap its plans for capital raise following the early departure of its Managing Director, Adesola Adeduntan.

The decision to cancel the extraordinary general meeting (EGM), which was planned to discuss the proposed N300 billion capital raise, comes amidst Adeduntan’s resignation from his role, eight months before the scheduled expiration of his tenure.

The bank formally announced the cancellation of the EGM in a filing seen by Investors King on Friday.

The meeting, which was initially scheduled to be held virtually on April 30, 2024, aimed to seek authorization from the company’s members for the capital raise and address other related matters.

Adeduntan’s resignation, announced on the same day as the cancellation of the EGM, comes as a result of the Central Bank of Nigeria’s tenure requirements affecting bank executives.

In his retirement letter addressed to the Chairman of First Bank, Adeduntan expressed gratitude for the support received during his stewardship and highlighted the strides made by the bank during his tenure.

He stated, “During this period, the bank and its subsidiaries have undergone significant changes and broken new grounds. We have repositioned the institution as an enviable financial giant in Africa.”

Adeduntan further mentioned his decision to pursue other interests, prompting his early retirement effective April 20, 2024.

The cancellation of the capital raise plans shows the impact of Adeduntan’s departure on the bank’s strategic initiatives.

It reflects a shift in priorities for First Bank Holdings as it navigates leadership changes and seeks to chart a new course for its future direction.

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Banking Sector

First Bank MD, Dr. Adesola Adeduntan, Resigns to Pursue New Opportunities

Published

47 mins ago

on

April 20, 2024

By

Dr. Adesola Adeduntan - FirstBank CEO - Investors King

Dr. Adesola Adeduntan, the Managing Director of First Bank Nigeria Limited, has announced his resignation from the bank after nine years of leadership.

In a letter addressed to the Chairman of First Bank, Mr. Tunde Hassan-Odukale, Dr. Adeduntan expressed his decision to step down voluntarily, effective April 20, 2024, to pursue new opportunities.

Having served as the CEO since January 1, 2016, Dr. Adeduntan’s tenure has been marked by significant transformations within the institution. Under his leadership, First Bank and its subsidiaries have undergone substantial changes, positioning the bank as a formidable financial powerhouse in Africa.

In his resignation letter, Dr. Adeduntan highlighted the achievements made during his tenure, stating, “We have repositioned the institution as an enviable financial giant in Africa.”

He expressed gratitude to the board of directors of First Bank and FBN Holdings Plc for their support throughout his stewardship.

Dr. Adeduntan’s decision to resign comes as he approaches the end of his contract, which was set to expire on December 31, 2024.

He stated, “After which I would no longer be eligible for employment within the bank.” Despite his departure, he wished the institution continued success and progress in its evolution.

Throughout his career in banking and finance spanning over three decades, Dr. Adeduntan has been recognized for his contributions and received numerous awards.

He holds a Doctor of Science, Honoris Causa, and an MBA from Cranfield University, United Kingdom, and is a fellow of the Institute of Chartered Accountants of Nigeria (ICAN) and the Chartered Institute of Bankers of Nigeria (CIBN).

Dr. Adeduntan’s departure marks the end of an era for First Bank, as the institution prepares to transition into a new phase of its evolution.

His leadership has left a lasting legacy of transformation and growth, and his contributions will be remembered in the annals of the bank’s history.

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Banking Sector

UBA America Strengthens Commercial Diplomacy, Hosts Diplomats, Others at World Bank Summit

Published

18 hours ago

on

April 19, 2024

By

UBA

UBA America, the United States subsidiary of United Bank for Africa (UBA) Plc hosted diplomats, government officials and business leaders to a networking reception in partnership with the esteemed Business Council for International Understanding (BCIU) and the U.S. Department of States in Washington DC on Monday .

The event which was held on the sidelines of the ongoing IMF World Bank Spring Meetings was organised by the BCIU and US Department of State to enhance collaboration and fortify commercial diplomacy among nations, institutions and individuals.

Speaking during the event, UBA’s Group Managing Director/Chief Executive Officer, Oliver Alawuba, noted that the bank’s co-hosting of the event via its American subsidiary, underscores its commitment towards cultivating robust relationships within the development communities in the United States.

He said, “As a distinguished member of BCIU, a non-profit organisation providing customised commercial diplomacy services, UBA Group and UBA America share BCIU’s vision of actively pursuing strategic opportunities, contributing to global economic cooperation, deepening of economic diplomacy, facilitating ideas, forging partnerships, and adding value for all stakeholders.”.

“Our resolve to co-host this Networking Reception symbolises our dedication to fostering inclusive economic growth and partnership across borders. By leveraging platforms like this, we can collectively address shared challenges and seize opportunities for sustainable development,” he stated further.

BCIU is a non-profit Association comprising of policy experts, strategic advisors, and trade educators, and offers bespoke commercial diplomacy services to the world’s governments and leading organisations, from Fortune 100 companies to global investors and multilateral institutions.

Only last year, the CEO UBA America, Sola Yomi-Ajayi, was appointed to the Board of BCIU, where she collaborates with fellow board members to ensure the organisation operates in alignment with its by-laws and New York 501(c)3 non-profit legislation.

Yomi-Ajayi has been committed to nurturing long-term organisational growth and sustainability, thereby reinforcing the bond between UBA America, BCIU, and the broader international community.

UBA America is the United States subsidiary of United Bank for Africa (UBA) Plc, one of Africa’s leading financial institutions with presence in 20 African countries, as well as in the United Kingdom, France, and the United Arab Emirates. UBA America serves as a vital link between Africa and the global financial markets, offering a range of banking services tailored to meet the needs of individuals, businesses, and institutions.

As the only sub-Saharan African bank with an operational banking license in the U.S., UBA America is uniquely positioned to provide corporate banking services to North American institutions doing business with or in Africa.

UBA America delivers treasury, trade finance, and correspondent banking solutions to sovereign and central banks, financial institutions, SMEs, foundations, and multilateral and development organizations. Leveraging its knowledge, capacity, and unique position as part of an international banking group, the Bank seeks to provide exceptional value to our customers around the world.

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