Nigerian Exchange Limited

Nigerian Stocks Market Extends Gain as Investors Jump on Bank Stocks

Published

3 years ago

July 8, 2021

Investors at the Nigerian Exchange Limited are jumping on bank stocks ahead of the first half reports as FBN Holdings Plc’s trading volume rose from 11,823,255.00 shares traded on July 5th, 2021 to 34,838,093.00 shares on July 7th, 2021. Access Bank Plc also grew from 11,623,377.00 shares to 28,693,835.00 shares during the same period.

Zenith Bank was also attractive as its trading volume increased from 13,713,571.00 shares to 27,728,523.00 shares. Fidelity Bank remained among the top 5 most traded stocks for the third consecutive day with 24,741,668.00 shares traded on Wednesday.

Investors traded a combined 296,098,560 shares valued at N2.562 billion in 4,507 transactions during the trading hours of Wednesday.

The market value of listed equities gained N43 billion from N20.027 trillion recorded on Tuesday to N20.070 trillion on Wednesday. While the Nigerian Exchange Limited All-Share Index appreciated by 0.22 percent from 38418.04 index points on Tuesday to 38501.31 index points on Wednesday.

Cutix Plc led gainers with N0.33 or 10 percent gain to settle at N3.63 a share. John Holt Plc followed with N0.06 or 9.84 percent gain to close at N0.67 a unit. See the table below for further details.

Top Gainers

Symbols	Last Close	Current	Change	%Change
CUTIX	N 3.30	N 3.63	0.33	10.00 %
JOHNHOLT	N 0.61	N 0.67	0.06	9.84 %
UAC-PROP	N 1.03	N 1.13	0.10	9.71 %
TRIPPLEG	N 0.84	N 0.91	0.07	8.33 %
WAPIC	N 0.56	N 0.59	0.03	5.36 %

Top Losers

Symbols	Last Close	Current	Change	%Change
BOCGAS	N 8.55	N 7.70	-0.85	-9.94 %
BERGER	N 9.85	N 8.90	-0.95	-9.64 %
COURTVILLE	N 0.22	N 0.21	-0.01	-4.55 %
JAPAULGOLD	N 0.51	N 0.49	-0.02	-3.92 %
UNITYBNK	N 0.57	N 0.55	-0.02	-3.51 %

Top Trades

Symbols	Volume	Value
FBNH	34838093.00	265090152.55
ACCESS	28693835.00	271734953.40
ZENITHBANK	27728523.00	689154949.75
FIDELITYBK	24741668.00	57422752.99
TRANSCORP	23928376.00	21354887.40

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Samed Olukoya

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

Domestic Investors Dominate as Equity Trading Hits N2.35tn in Five Months

Published

21 hours ago

June 28, 2024

Samed Olukoya

Nigerian Exchange Limited - Investors King

The total transactions on the Nigerian Stock Exchange surged to N2.35 trillion by the end of May 2024, representing a 115.40% increase compared to the first five months of 2023.

This was disclosed in the domestic and foreign portfolio participation in the equity trading report released by the Nigerian Exchange Limited (NGX) on Thursday.

According to the report, domestic investors maintained their dominance in the market, accounting for N1.79 trillion (79.63%) of the total transactions in the five-month period.

In contrast, foreign investors contributed N458.29 billion (20.37%) to the market.

A further breakdown of the data revealed that domestic institutional investors led the charge with N906 billion in transactions, slightly ahead of domestic retail investors, who recorded N885.19 billion.

The growth in equity trading has been attributed to several critical reforms initiated in the past year.

Since May 2023, Nigeria has undergone a significant leadership change, leading to the implementation of key policies such as foreign exchange market harmonization and the removal of fuel subsidies.

Experts believe these reforms have boosted the capital market and encouraged foreign investors to reconsider their positions in Nigeria.

Also, the Monetary Policy Rate (MPR) has been hiked multiple times, reaching 26.25% at the May 2024 Monetary Policy Committee meeting.

This tightening monetary policy has also influenced the market dynamics, contributing to increased trading activities.

A recent report by PricewaterhouseCoopers (PwC), titled “Navigating Economic Reforms,” highlighted the impressive performance of the Nigerian Stock Exchange.

The report noted an 85.2% increase in market capitalization, from N30.3 trillion in May 2023 to N56.5 trillion in May 2024.

This growth was driven by positive sectoral index performances, particularly in the oil and gas (124%), consumer goods (104%), insurance (88%), and banking (69%) sectors.

The Nigeria 10-Year Government Bond Yield also reached an all-time high of 19.30% in May 2024, up from 14.55% in May 2023.

This increase in bond yields is attributed to the attractive rates on Open Market Operations (OMO) and Treasury Bills, spurred by the rise in the MPR.

Month-on-month data from NGX showed that total transactions rose from N346.23 billion in April to N355.38 billion in May, reflecting a 2.64% increase.

Domestic investors played a pivotal role in driving this increased activity, with their participation rising by 2.53% from N225.40 billion in April 2024 to N231.10 billion in May 2024.

Within this period, institutional investors outperformed retail investors by a margin of two percent, recording N117.57 billion compared to N113.53 billion.

Meanwhile, total foreign transactions also saw an increase, rising by 2.86% from N120.83 billion in April to N124.28 billion in May 2024.

This uptick in foreign participation is a positive signal, indicating a gradual return of international investors to the Nigerian market.

The sustained growth in equity trading and the dominance of domestic investors underscore the resilience and potential of the Nigerian stock market.

With ongoing reforms and a more stable economic environment, the outlook for the local bourse remains positive, promising further growth and opportunities for both domestic and foreign investors.

Nigerian Exchange Limited

Nigerian Equities Market Sheds N103 Billion in Three-Day Trading of Last Week

Published

5 days ago

June 24, 2024

Samed Olukoya

In a brief yet impactful trading week marked by Eid-el-Kabir celebrations, Nigeria’s equities market closed in the red as the market shed a total of N103 billion in market capitalization.

Investors navigated through a condensed trading schedule that spanned just three days, with profit-taking activities predominantly affecting key sectors despite selective bargain hunting in others.

The Nigerian Exchange Limited (NGX) All-Share Index (ASI) closed the week at 99,743.05 points, reflecting a decline from the previous week’s high of 99,925.29 points.

Similarly, market capitalization dipped to N56.423 trillion, down from N56.526 trillion recorded in the preceding trading period.

Throughout the truncated trading sessions, the market experienced two days of negative closes, contrasting with one day of flat performance.

Analysts attributed the decline primarily to profit-taking activities across critical sectors such as insurance and banking, which overshadowed gains observed in oil & gas, consumer goods, and industrial stocks.

The NGX Oil & Gas Index saw a marginal decrease of 0.21 percent, while the NGX Banking Index dipped by 0.04 percent.

The NGX Insurance Index recorded the steepest decline, falling by 1.41 percent during the week.

On the other hand, the NGX Consumer Goods Index rose by 0.29 percent, and the NGX Industrial Index saw a modest increase of 0.10 percent.

Despite the downturn in market performance for the week, the year-to-date (YtD) return moderated to 33.39 percent, indicating a resilient overall performance in 2024.

Month-to-date (MtD), the market managed a slight uptick of 0.43 percent, underscoring the mixed sentiment and cautious trading observed among investors.

Market analysts and stakeholders emphasized the impact of profit-taking in driving the market’s decline and suggested that the upcoming weeks could see renewed activity depending on economic indicators and investor sentiment.

As Nigeria’s equities market continues to navigate various economic dynamics, stakeholders remain optimistic about potential recovery and growth opportunities amid evolving market conditions.

The holiday-shortened trading week underscored the volatility and resilience of Nigeria’s equities market, highlighting both challenges and opportunities for investors in the coming sessions.

Nigerian Exchange Limited

FBN Holdings, Fidelity Bank Lead Trades as Nigerian Stock Market Closes Flat

Published

1 week ago

June 21, 2024

Samed Olukoya

For the first time in weeks, Nigeria’s equities market closed flat on Thursday as investors adopted a cautious approach, taking a “wait-and-see” stance.

Despite active trading in major stocks such as FBN Holdings, Fidelity Bank, Transcorp, Access Holdings, and AIICO, the market showed no significant movement.

On Thursday, investors exchanged 1,299,961,984 shares worth N25.326 billion in 8,364 deals on the Exchange.

However, the trading activity did not translate into a market shift.

The NGX All-Share Index (ASI) and Market Capitalisation, which stood at 99,842.19 points and N56.478 trillion on the preceding trading day, closed Thursday at 99,842.94 points and N56.479 trillion, respectively.

This static closure occurred despite notable performances from stocks like Champion Breweries and Chams, which rallied.

Conversely, Transcorp Hotels Plc, NEM Insurance, and Fidelity Bank topped the list of laggards.

“We anticipate a mixed trading session with potential buy-side pressure in key names that could steer the market to a green close,” stated analysts from Lagos-based Vetiva Research in their post-trading note. “Investors are expected to monitor movements in high-performing stocks as well.”

Related developments highlighted the challenges facing investors. Rising diesel prices have surged by 66%, hitting the Northeast hardest.

The Naira remains weak at the official market despite rising external reserves, and prime office tenants face dilemmas with dollar-rents surging 200% in Naira value.

The flat close on Thursday underscores the cautious sentiment prevailing among investors in Nigeria’s equities market.

The market’s performance continues to reflect broader economic uncertainties and investor strategies focusing on stability and risk management.