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Nigerian Stock Investors Gained N552 Billion Last Week

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Nigerian Stock Investors Gained N552 Billion Last Week

Investors in the Nigerian Stock Exchange (NSE) gained N552 billion last week despite a negative first week of the year.

Investors exchanged 3.447 billion shares worth N32.725 billion in 30,327 deals during the week, against a total of 3.394 billion shares valued at N19.867 billion that exchanged hands in 26,808 transactions in the previous week.

In terms of volume traded, the Financial Services Industry led the activity chart with 1.714 billion shares valued at N13.352 billion exchanged in 15,102 deals and contributed 49.74 percent and 40.80 percent to the total equity turnover volume and value, respectively.

The Construction/Real Estate Industry followed with 768.131 million shares worth N4.203 billion in 430 deals. Conglomerates Industry came third with a turnover of 279.799 million shares estimated at N578.694 million in 1,199 deals.

The three most traded equities during the week were UPDC Real Estate Investment Trust, Mutual Benefits Assurance Plc and Transnational Corporation of Nigeria Plc. Together, the three accounted for 1.224 billion shares worth N4.459 billion in 929 deals and accounted for 35.52 percent and 13.63 percent to the total equity turnover volume and value, respectively.

The NSE All-Share Index gained 2.63 percent or 1,055.92 index points from 40,120.22 index points posted in the previous week to 41,176.14 index points.

While the market value of listed stocks expanded by the same 2.63 percent or N552 billion from N20.978 trillion recorded a week earlier to N21.530 trillion last week.

The Nigerian Stock Exchange has gained 2.25 percent in 2021 so far.

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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Nigerian Exchange Limited

Nigerian Equity Market Sees N92.32bn Loss Amid Declines in Key Stocks

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The Nigerian equity market experienced a significant downturn on Tuesday, losing N92.32 billion in market value.

This decline was largely driven by drops in the share prices of key companies, including National Salt Company, Thomas Wyatt Nigeria, and May and Baker Nigeria.

The market capitalisation and the All-Share Index (ASI) decreased by 0.16 per cent, closing at N56.36 trillion and 99,630.51 points, respectively. This downturn affected the year-to-date return, which fell from 33.5 per cent to 33.24 per cent.

Despite the overall market decline, market breadth remained positive, with 29 stocks advancing against 19 that declined, across 8,064 deals. This indicates a mixed sentiment among investors, with some stocks seeing substantial gains.

Key Gainers and Losers

Total Nigeria led the list of gainers with a 9.98 percent increase to close at N388.90. Presco followed closely with a 9.97 percent rise to N323.30, and UPDC leveraged a 9.92 percent gain to end the day at N1.33.

Conversely, National Salt Company recorded a significant drop of 9.91 percent to close at N36.80. Thomas Wyatt Nigeria saw a 9.66 percent decrease to N1.59, and May and Baker Nigeria fell by 7.13 percent to close at N5.60.

Trading Volume Leaders

In terms of trading volume, Fidelity Bank led the market with 293.18 million shares exchanged in 340 deals. Nigerian Breweries followed, trading 101.584 million shares in 145 deals, reflecting strong investor interest in these companies.

Market Dynamics

The losses come on the heels of a robust performance on Monday, where the equity market gained N323 billion, buoyed by appreciations in stocks like Flour Mills Nigeria, Total Nigeria, and Access Holding.

The contrasting performance over two consecutive days underscores the volatility in the market.

Investor Sentiment

The decline in the equity market highlights the fluctuating investor sentiment influenced by various macroeconomic factors and corporate performance. Despite the losses, the positive market breadth indicates underlying resilience, as a larger number of stocks posted gains than losses.

Economic Context

The broader economic environment continues to pose challenges, with inflationary pressures and currency devaluation impacting investor confidence. However, strategic moves by companies and expectations of economic reforms provide some optimism for market recovery.

Outlook

Analysts suggest that the market could see further fluctuations in the short term, with investor focus likely to remain on corporate earnings reports and economic policy developments. The ability of companies to navigate the current economic landscape will be crucial in determining future market performance.

As the market adjusts to these dynamics, stakeholders remain hopeful that strategic investments and economic reforms will foster a more stable and growth-oriented environment for the Nigerian equity market.

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Nigerian Exchange Limited

Flour Mills Nigeria, Others Bolster Nigerian Equity by N323 Billion

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Flour Mills Nigeria, alongside other key players in the Nigerian equity market, propelled the market to a significant gain of N323 billion in market capitalization on Monday.

The bullish momentum saw the market capitalization and the All Share index rising by 0.58 percent to settle at N56.52 trillion and 99,793.71 points, respectively.

This surge represents a notable increase from the previous trading session and contributed to a year-to-date return of 33.5 percent, up from 32.8 percent.

Market participants witnessed heightened activity levels as both volume and value exchanged surged by 148.3 percent and 83.6 percent, reaching 963.5 million units and N13.5 billion, respectively.

The banking and oil & gas sectors emerged as the leading gainers, with respective increases of 2.7 percent and 3.1 percent.

This sectoral performance further fueled investor optimism and contributed to the overall market rally.

Flour Mills Nigeria stole the spotlight among gainers with a remarkable 10 percent appreciation, closing at N41.80 per share.

Similarly, Total Nigeria and Access Holding recorded significant gains of 9.88 percent and 9.86 percent, closing at N353.60 and N18.95, respectively.

However, not all stocks shared in the bullish sentiment, as E-Tranzact International, Daar Communications, and Champion Breweries emerged as the top losers, shedding 9.90 percent, 9.52 percent, and 6.67 percent, respectively.

Fidelity Bank emerged as the most traded security by value, with N6.03 billion worth of shares exchanged in 417 deals.

On the other hand, Abbey Mortgage Bank led the volume chart with 2,919 units traded in 12 deals.

The significant surge in market capitalization and the robust trading activity reflect growing investor confidence and optimism in the Nigerian equity market.

Despite recent fluctuations, the market continues to attract interest from both domestic and foreign investors, driven by promising economic indicators and corporate performance.

Looking ahead, analysts anticipate continued market resilience, with expectations of increased capital raising operations and sustained investor appetite for high-yielding assets.

However, uncertainties surrounding interest rate movements and global economic dynamics remain key factors influencing market sentiment in the near term.

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Nigerian Exchange Limited

Nigerian Stocks Gain N15.25 Trillion Despite Rate Hike Concerns

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Nigerian stocks have surged by N15.25 trillion in the first five months of 2024, despite looming concerns over rapid interest rate hikes.

This surge which has taken the market by storm reflects a significant milestone in the country’s financial landscape.

Driving this unprecedented rally are several key players in the market, including powerhouse companies like Geregu Power, Dangote Cement, BUA Cement, BUA Foods, and Julius Berger, among others.

These companies gained with Geregu Power leading the charge with a 150.6 percent surge, followed closely by Dangote Cement at 105.3 percent and BUA Cement at 72.07 percent.

This surge in stock performance has propelled Nigeria’s stock market to new heights, outperforming its African counterparts and demonstrating a strong investor sentiment towards the country’s economic prospects.

The overall market capitalization soared to N56.172 trillion by the close of May 2024, marking a remarkable 37.28 percent increase from the beginning of the year.

Despite concerns surrounding aggressive interest rate hikes, Nigerian stocks have continued to defy expectations, with retail and institutional investors driving the rally.

Nigerian pension funds, in particular, have significantly increased their holdings in the equity market, signaling confidence in the country’s economic trajectory.

However, recent market performance data indicates a potential slowdown, with gains tapering off in April and May. While the market remains buoyant, investors are beginning to exercise caution in light of evolving economic conditions.

Experts attribute the initial surge to investor sentiment, bolstered by the emergence of Bola Tinubu as Nigeria’s President, coupled with stringent compliance measures implemented by the Exchange.

The Nigerian stock market’s impressive performance comes amidst mixed corporate earnings reports, ongoing reforms in the banking sector, and significant policy shifts in the foreign exchange market, including the removal of fuel subsidies.

Moreover, the recent hike in the Monetary Policy Rate (MPR) to 26.25 percent has led to sentiment trading among investors, seeking alternative investment opportunities to hedge against inflation.

As the Central Bank of Nigeria maintains its focus on achieving price stability, investors remain vigilant amid escalating inflation rates and economic uncertainties.

Despite these challenges, the resilience of Nigerian stocks underscores the market’s potential to weather storms and emerge stronger in the face of adversity.

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