Connect with us

Stock Market

Nigerian Stock Investors Gained N87 Billion Last Week

Published

on

stock - Investors King

Nigerian Stock Investors’ Renewed Interest Bolsters the Nigerian Stock Market Last Week

Stock investors at the Nigerian Stock Exchange gained N87 billion last week on renewed positive sentiment.

In the four days trading week, investors traded 1.103 billion shares valued at N9.876 billion in 16,616 transactions. This was lower than the 1.469 billion shares worth N23.553 billion that were exchanged in 22,991 transactions in the previous week.

In terms of volume traded, the financial sector led activity table with 814.292 million shares valued at N7.186 billion but traded in 8,352 deals. The sector contributed 73.82 percent and 72.76 percent to the total equity turnover volume and value, respectively.

This was followed by the oil and gas sector with 66.78 million shares worth N143.050 million in 1,044 deals. The Consumer Goods sector came third with a turnover of 57.842 million shares valued at N1.022 billion but traded in 2,559 deals.

The top three equities traded during the week were Mutual Benefits Assurance Plc, Guaranty Trust Bank Plc and FBN Holdings Plc. The three top traded equities accounted for 485.307 million shares worth N5.048 billion and contributed 44.00 percent and 51.11 percent to the total equity turnover volume and value, respectively.

The market capitalisation of listed equities rose by 0.67 percent or N87 billion from N13.050 trillion in the previous week to N13.137 trillion last week.

Similarly, the NSE All-Share Index gained 0.67 percent or 166.37 basis points from 25,016.30 bps reported in the previous week to 25,182.67 this week.

On a monthly basis, the exchange has lost 0.34 percent in June. While it has gained 18.23 percent this quarter to moderate this year’s decline to -6.18 percent, down from over 12 percent in the first quarter.

The renewed interest in the stock market was as a result of central bank policies restricting activities of local investors in the fixed income market and forcing banks under the 65 percent loan to deposit ratio policy to increase credit facility to the real sector. Also, the low share values, largely weighed upon by the coronavirus pandemic, lured local investors back into stocks with strong fundamentals but impacted by COVID-19 lockdown and economic disruption.

During the week, the NSE Insurance Index gained the most to extend its year-to-date return to 7.9 percent. The insurance sector gained 4.83 basis points or 3.69 percent from 130.93 bps reported in the previous week to 135.76 bps last week.

On a monthly basis, the sector has gained 3 percent so far and 13.7 percent this second quarter.
top gainers

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.

Continue Reading
Comments

Nigerian Exchange Limited

Nigerian Stocks Dip Amid Interest Rate Hike, N68 Billion Lost

Published

on

Nigerian Exchange Limited - Investors King

The Nigerian equities market declined on Wednesday, shedding N68 billion in value following an increase in interest rate to 26.75%.

The Monetary Policy Committee (MPC) of the CBN raised the Monetary Policy Rate (MPR) from 26.25% to 26.75% on Tuesday.

This move is part of ongoing efforts to curb inflation but has made equities less appealing compared to fixed-income securities.

The Nigerian Exchange Limited (NGX) saw its All-Share Index fall to 100,365.17 points from a previous high of 100,486.12.

Market capitalization also dipped to N56.830 trillion. Investors exchanged 497,842,944 shares valued at N8.605 billion in 8,412 deals.

Banking and consumer goods stocks were hit hardest, with significant sell-offs observed. Conversely, insurance and industrial stocks saw some buying activity, indicating a shift in investor preferences amid the changing economic landscape.

The CBN’s decision to increase rates is part of broader measures to tighten monetary policy and rein in rising inflation.

However, this has placed additional pressure on the equities market, which is now grappling with reduced investor sentiment.

United Capital research analysts highlighted that Nigeria continues to face negative real returns, deterring investments in the financial markets.

They anticipate higher yields in the fixed-income sector, which could further influence investor behavior.

Despite the current market pressures, analysts suggest that the upcoming second quarter (Q2) 2024 earnings season might provide some positive momentum.

Investors are keenly watching for potential gains that could arise from corporate performances.

The market’s year-to-date return has decreased to 34.22%, reflecting the broader economic challenges and investor caution.

While this week’s decline stands at 0.17%, the monthly performance has shown a slight increase of 0.31%.

Continue Reading

Stock Market

Nasdaq Tumbles as AI Optimism Dims, $1 Trillion Wiped Out

Published

on

Tesla earnings

The Nasdaq 100 Index suffered a $1 trillion loss on Wednesday as investors reevaluated the potential returns on artificial intelligence investments.

The selloff, the worst since October 2022, was led by key AI-related stocks, raising concerns about the technology’s immediate financial benefits.

Shares of semiconductor giants like Nvidia Corp., Broadcom Inc., and Arm Holdings Plc were hit hard, each experiencing significant declines.

Nvidia, a leader in AI chip technology, fell by 6.8%, while Broadcom lost 7.6%.

The downturn was sparked by Alphabet Inc.’s earnings report, which revealed high capital expenditures without the expected returns, causing its stock to drop over 5%.

Tesla Inc. also contributed to the market’s woes, plunging more than 12% as CEO Elon Musk provided limited updates on the company’s self-driving vehicle projects.

Alec Young, chief investment strategist at Mapsignals, highlighted the overarching worry: “The ROI on all the AI infrastructure spending remains unclear. There’s massive investment, but the payoff is proving elusive.”

This sentiment echoed throughout Wall Street, fueling fears of an AI bubble.

The tech sector’s volatility was further underscored by increased options trading. Nvidia saw its highest options volatility since March, with a notable rise in demand for protective puts on Broadcom Inc. This reflected traders’ concerns over future price swings.

This selloff comes just weeks after a shift from tech stocks to smaller companies expected to benefit from potential Federal Reserve rate cuts.

The Russell 2000 outperformed larger indices, gaining 0.5% this week compared to a 2.6% loss in the Nasdaq 100.

Jim Covello of Goldman Sachs Group Inc. voiced skepticism about the commercial viability of AI, questioning whether the immense spending on AI infrastructure would pay off.

This apprehension was echoed in derivatives markets, where demand for bearish options in tech stocks surged.

Tech valuations have reached historically high levels, with Nvidia trading at 36 times projected earnings, compared to the S&P 500 average of 21.

As tech giants brace for slower profit growth, the stakes for upcoming earnings reports are high.

While Alphabet’s results have dimmed immediate expectations for AI contributions, the market is closely watching upcoming reports from Microsoft, Meta Platforms, Apple, and Amazon. Nvidia, the biggest beneficiary of AI spending, will report later in August.

Cayla Seder, a strategist at State Street, remains cautiously optimistic: “Despite current trepidation, large-cap tech stocks continue to offer attractive growth potential.”

Continue Reading

Nigerian Exchange Limited

Stocks Rise Slightly in Nigeria’s Equities Market with Julius Berger and Livestock Feeds in the Spotlight

Published

on

Stock Bull - Investors King

Nigeria’s equities gained modestly at the start of the week as investor enthusiasm pushed stock prices slightly higher.

The Nigerian Stock Exchange (NGX) All-Share Index climbed by 0.03% or N16 billion, buoyed by notable gains in shares of key companies including Julius Berger, Livestock Feeds, and Neimeth.

Julius Berger saw the most significant increase, with its share price rising from N87.50 to N92.50, a gain of N5 or 5.71%.

This surge reflects growing investor confidence in the construction sector, despite broader market uncertainties.

Livestock Feeds also performed strongly, with its stock price climbing from N2.20 to N2.38, marking an 8.18% increase.

Neimeth Pharmaceuticals followed suit, with its shares rallying from N1.74 to N1.88, up by 8.05%.

Market analysts attribute the market’s cautious optimism to a combination of factors, including upcoming corporate earnings releases and potential dividend declarations.

Futureview Research noted that while the market showed a positive trajectory, investor sentiment might be tempered by increased regulatory scrutiny on banking stocks and anticipation of the Central Bank of Nigeria’s (CBN) Monetary Policy Committee (MPC) meeting.

“We expect a mixed market close this week,” said Futureview Research in their July 22 note. “Cautious trading in banking stocks is anticipated amid increased regulatory oversight, while investor focus is likely to shift towards the bond Primary Market Auction (PMA). This could dampen overall market sentiment.”

Despite the modest gains, analysts are cautious about the short-term outlook. Meristem analysts highlighted that while some stocks have shown positive movement, the broader market could face challenges.

“We anticipate increased activity in equities this week, driven by buying interest in fundamentally strong stocks. However, uncertainty surrounding the MPC’s decisions and potential impacts from the bond and T-bills auction could influence market dynamics,” they noted.

The NGX All-Share Index rose from the previous day’s 100,539.40 points to 100,568.63 points, while the market capitalization increased from N56.929 trillion to N56.945 trillion.

In a total of 8,760 transactions, investors exchanged 335,704,787 shares valued at N3.717 billion.

Trading activity also highlighted the popularity of stocks such as Ellah Lakes, Universal Insurance, United Capital, Veritas Kapital Assurance, and FCMB Group. These stocks saw active trading as investors navigated the market’s current landscape.

As the week progresses, all eyes will be on the MPC meeting, where key decisions regarding interest rates and monetary policy will be announced.

The outcome is expected to play a significant role in shaping investor sentiment and market direction in the coming weeks.

Continue Reading
Advertisement




Advertisement
Advertisement
Advertisement

Trending