One of Nigeria’s leading financial institutions, Guaranty Trust Bank, led top losers on Tuesday despite the Nigerian Stock Exchange (NSE) gaining 0.36 percent to close above N21 trillion market value.
Guaranty Trust Bank’s market value declined by 1.07 percent or N10.235 billion as investors traded 9.763 million shares at an average price of N32.50 per share.
The lender’s share declined by 35 kobo from N32.85 to settle at N32.5 per share.
MTN Nigeria followed with a 0.12 percent decline to close at N165 per share, down from N165.2 per share it opened the day.
Investors traded 1.166 billion shares valued at N7.969 billion in 5,591 transactions during the trading hours of Tuesday.
The market capitalisation of listed equities grew by 0.36 percent to N21.069 trillion while the NSE All-Share Index expanded by the same 0.36 percent to 40,295.95 index points.
Dangote Cement led the top gainers’ chart with N5 or 2.22 percent to settle at N230 per share. Ardova followed with N1.75 percent or 9.75 per share to call it a day at N19.7 per share. See the details below.
Nigerian Stock Market Loses N259 Billion Amidst Medium-Cap Company Declines
In a day marked by losses in the equities of several medium-cap companies, the Nigerian Exchange Limited lost N259 billion in market capitalization.
BUA Cement led the loser’s chart with a 10% decline in share value to close at N93.60 per unit from N104 it settled the previous session.
Other impacted stocks contributing to the market downturn included Dangote Sugar (-0.43%), Lafarge (-0.17%), Oando Plc (-2.12%), Fidson (-3.53%), NGX Group (-0.68%), Zenith Bank (-0.43%), and United Bank for Africa (-0.23%).
The overall market capitalization and All-Share Index saw a 0.66% decrease to N38.823 trillion and 70,946.83, respectively as the year-to-date returns dipped to 38.43%.
Despite the overall decline, positive market sentiments persisted, resulting in 33 gainers and 26 losers.
The top gainer was the paper company, Thomas Wyatt, gaining 10% and closing at N2.75 per unit.
First Bank of Nigeria Holdings and Daar Communications also made significant gains, closing at N24.35 per unit (up 9.93%) and N0.34 (up 9.68%), respectively.
On the losing side, BUA Cement’s 10% decline was followed by McNichols, down 9.33%, and Computer Warehouse Group, which lost 7.50%.
The real estate firm, UPDC, also dipped by 7.14%, closing at N1.17.
Volume drivers for the day included Universal Insurance, Transnational Corporation, Airtel Africa, and GTCO.
Three out of five sectors tracked closed in the red zone, with the Insurance, Oil/Gas, and Industrial Goods indexes recording losses while Banking and Consumer Goods sectors saw slight advances.
Cowry Asset Management Limited researchers anticipate a dynamic week for investors as they navigate potential profit-taking and corrections amid global events, fixed-income yields, and Central Bank of Nigeria policies.
Nigerian Stock Exchange Bounces Back, Gains N132 Billion in Market Cap
The Nigerian Exchange Limited rebounded on Wednesday with the market capitalization surging by N132 billion.
This uptick was propelled by the positive performance of key stocks, including Seplat Energy (+10%), Meyer Plc (+9.79%), Sunu Assurance (+9.56%), Nestle (+9.52%), and Consolidated Hallmark Holdings Plc (+9.24%).
The All-Share Index closed rose by 0.34% to 71,283.34 points, reflecting investors’ optimistic sentiment, particularly in medium and large-cap stocks with solid fundamentals while the market capitalization increased to N39.007 trillion.
Despite a decline in total deals and volume by 19.14% and 32.55% to 6,579 deals and 360.60 million units respectively, the total value for the day increased by 17.64% to N6.61 billion.
Among the gainers, Seplat, Meyer, Sunu Assurance, Nestle Plc, and Consolidated Hallmark Holdings Plc stood out, closing at N2.310, N3.59, N1.49, N1.150, and N1.30 per unit, respectively, after gains ranging from 10% to 9.24%.
The losers’ chart was led by Guinea Insurance, down 10%, followed by Omatek (-9.88%), Abbey Mortgage Bank (-9.68%), Neimeth Pharma (-9.45%), and Tantalizer (-8.62%).
Performance across sectors was predominantly bullish, with the Insurance, Consumer Goods, Oil/Gas, and Industrial Goods indexes recording notable advancements of 1.17%, 0.89%, 6.06%, and 0.01%, respectively.
However, banking stocks emerged as the only laggard for the day, declining by 0.56%.
GT Bank (GTCO) dominated trading activities, emerging as the most traded security in terms of volume and value, with 56.91 million units worth N2.19 billion traded in 261 deals.
This positive momentum signals a renewed fervor in the Nigerian stock market.
Robinhood Expands to UK, Introducing Commission-Free Stock Trading
Robinhood Markets Inc., the pioneer of commission-free stock trading, is venturing into the UK market, making its international debut by offering British retail investors access to more than 6,000 US-listed stocks and other securities.
This move follows the company’s success in the US during the Covid pandemic, where it gained popularity among first-time investors during the “meme-stock” frenzy.
While the enthusiasm among retail investors has cooled, Vlad Tenev, Robinhood’s CEO and co-founder, aims to disrupt the UK market by offering a range of attractive features.
Tenev stated, “We’d like to help lower fees for all customers in the UK, just like we did in the US back in 2019, right before Covid.”
The features include 5% interest on uninvested cash, zero trading commission, currency fees, and trading outside of market hours. Users can join a waitlist now, and the service aims to be fully available starting in 2024.
Despite facing regulatory scrutiny in the US for its role in the “meme-stock” frenzy and accusations of encouraging excessive risk-taking, Robinhood has ambitious plans for international expansion.
The company will compete with local platforms like Revolut and Freetrade, as well as US-based rival Public.com, which expanded to the UK in July.
Tenev believes that Robinhood’s technology-focused approach gives it an edge in expanding globally.
He emphasized, “The fact that we’ve built this platform from the ground up and we’re a technology company and financial services, not a brick and mortar institution, I think makes us more able to expand internationally in ways that traditional financial institutions can’t.”
Robinhood also plans to introduce crypto trading in the European Union in the coming weeks, further diversifying its offerings beyond traditional stocks.
Despite a recent 11% decline in transaction-based revenues in Q3 2023, Robinhood continues to explore new revenue streams, including the launch of a credit card in the US.
The company’s shares, although up 10% this year, remain 90% lower than their peak.
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