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Stock Investors Lose N571 Billion Last Week

Investors traded 1.511 billion shares worth N13.547 billion in 20,074 deals last week

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Nigerian Exchange Limited - Investors King

Investors in the Nigerian stock market lost N571 billion last week as investors continue to close their positions amid growing economic uncertainty and high borrowing cost.

Investors traded 1.511 billion shares worth N13.547 billion in 20,074 deals last week, against a total of 705.636 million shares valued at N12.850 billion that exchanged hands in 22,124 deals in the previous week.

Analysing activity across key sectors, the Financial Services Industry led the activity chart with 680.202 million shares valued at N4.672 billion traded in 9,230 deals. Therefore, contributing 45.02% and 34.48% to the total equity turnover volume and value, respectively.

The Services Industry followed with 499.178 million shares worth N3.407 billion in 866 deals. In third place was
the ICT Industry, with a turnover of 113.804 million shares worth N2.246 billion in 2,083 deals.

Capital Hotel Plc, FBN Holdings Plc and Jaiz Bank Plc were the three most traded equities. Together, the three accounted for 763.836 million shares worth N5.130 billion that were traded in 1,025 deals and contributed 50.55% and 37.87% to the total equity turnover volume and value, respectively.

The NGX All-Share Index depreciated by 1,058.26 index points or 2.09% to 49,664.07 index points from 50,722.33 index points it closed in the previous week.

Market capitalization depreciated by 2.09% or N571 billion to N26.787 trillion last week, down from N27.358 trillion it settled in the previous week.

Similarly, all other indices finished lower with the exception of  The NGX Insurance, NGX Consumer Goods and NGX Growth Indices which appreciated by 6.00%, 3.00% and 1.56% while, The NGX ASeM index closed flat.

Thirty-three equities appreciated in price during the week, lower than forty-one equities in the previous week. Twenty- six equities depreciated in price higher than Twenty-two in the previous week, while ninety-seven equities remained unchanged higher than ninety-three equities recorded in the previous week.

The Exchange year-to-date return declined to 16.26%. See the details of top gainers and losers below.

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

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Apple Shares Shed More Than 4% After Report of iPhone 14 Slow Demand

Apple shares shed more than 4 percent on Wednesday after the demand for the company’s latest device, iPhone 14, plummeted on weaker demand following reports of issues.

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iPhone SE 2

Apple shares shed more than 4 percent on Wednesday after the demand for the company’s latest device, iPhone 14, plummeted on weaker demand following reports of issues.

Investors King learnt that the slow demand for iPhone 14 which was reported late Tuesday reflected on Apple shares on Wednesday as it traded in the red, declining by 4 percent. 

Bloomberg earlier reported that Apple is slowing down the production of its latest device, a reflection of poor market demand for the iPhone 14.

Bloomberg further noted that Apple had produced about 90 million units of iPhone 14 during the second half of 2021 with the plan to produce additional 6 million units during the second half of 2022.

However, consumers are rather disposed to iPhone 14 pro which they claim has a more significant upgrade from iPhone 13. iPhone 14 retains most of the features of iPhone 13.

According to Abhilash Kumar Strategy Analytics “Prospective iPhone 14 buyers may opt for iPhone 13, given the hefty discount on the older model”. 

Checks by Investors King on Wednesday revealed that the shares of the world’s most valuable public traded company dropped to as low as $145.22 immediately after the U.S. market opened on Wednesday, losing 4 percent of its value in a matter of minutes. It, however, retraced back up and traded at $147.88 at the time of this report.

Similarly, Apple suppliers were not spared in the downturn as shares of Qualcomm (QCOM.O) dropped to a low of $117.97 before moving back up to $119.32 at the time of this report. 

Other Apple suppliers which were not spared from the negative news include Infineon (IFXGn.DE) and ASML (ASML.AS).

Meanwhile, Apple has begun to shift its production from China to India. A recent report published by JP Morgan and reported by BBC suggested that Apple is looking to shift 25% of its iPhone production to India by 2025.

The report added that Indian factories will start with the production of iPhone 14 and iPhone 14 plus model. The factories in India will only cover 5 percent of the entire production supply which will equate to 1 million units a month.

 

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Nigerian Exchange Limited

Stock Investors Lose N241 Billion Last Week

Investors in the Nigerian Exchange Limited (NGX) lost N241 billion last week as market uncertainty continues across the length and breadth of the market.

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stock - Investors King

Investors in the Nigerian Exchange Limited (NGX) lost N241 billion last week as market uncertainty continues across the length and breadth of the market.

Investors transacted 562.856 million shares worth N9.438 billion in 16,013 deals during the week, against a total of 719.398 million shares valued at N8.004 billion that exchanged hands in 17,444 deals in the previous week.

Breaking down each sector’s performance, the financial services industry led the activity chart with 381.958 million shares valued at N4.551 billion traded in 8,627 deals. Therefore, contributed 67.86% and 48.21% to the total equity turnover volume and value, respectively.

The ICT industry followed with 59.345 million shares worth N2.480 billion in 1,272 deals. In third place was the services industry, with a turnover of 32.212 million shares worth N95.807 million in 607 deals.

Zenith Bank Plc, NGX Group Plc and Guaranty Trust Holding Company Plc were the three most traded equities during the week. The three accounted for 183.929 million shares worth N3.499 billion in 3,628 deals and contributed a combined 32.68% and 37.07% to the total equity turnover volume and value, respectively.

The NGX All-Share index declined by 0.91% or 448.80 index points to 49,026.62 index points, down from 49,475.42 index points recorded in the previous week.

Market capitalization depreciated by N241 billion from N26.686 trillion recorded in the previous week to N26.445 trillion last week.

Similarly, all other indices finished lower with the exception of NGX Premium, NGX Banking, NGX Pension, NGX AFR Bank Value and NGX MERI Value which appreciated by 0.13%, 2.27%, 0.05%, 0.08% and 1.84% while The NGX ASeM, NGX Growth and NGX SOVBND indices closed flat.

Seventeen equities appreciated in price during the week, higher than thirteen equities in the previous week. Forty-two equities depreciated in price higher than Thirty-nine in the previous week, while ninety-seven equities remained unchanged lower than one-hundred and four equities recorded in the previous week.

The year-to-date return moderated to 14.77%. See the details of top gainers and losers below.

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Bonds

A Satisfactory Bond Auction for the DMO

DMO offered N225bn but raised N229.2bn through re-openings of the 2025, 2032 and 2037 FGN bonds

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Director General DMO - Investors King

The DMO held its monthly auction of FGN bonds on Monday (19 September ’22). It offered N225bn but raised N229.2bn (competitive allotment only) through re-openings of the 2025, 2032 and 2037 FGN bonds. The participation level was slightly lower when compared to the auction held in August.

The bid-to-cover ratio for September stood at 1.1x compared to 1.2x in August. The DMO secured a total bid of N246.4bn (USD564m) at the auction. The bids for the 3, 10 and 15-year benchmarks were allotted at the marginal rates of 13.5% (previously; 12.5%), 13.8% (previously; 13.5%) and 14.5% respectively.

The demand at this auction is partly driven by expected inflows of N166bn in coupon payments later this month as well as, improved system liquidity primarily driven by inflows of N185.8bn in FGN bond coupon payments in the first three weeks of September.

Coronation Merchant Bank’s economic research team note that market liquidity stood at a surplus of N28.3bn on Monday (20 September ‘22). Overnight and repo rates closed within a range of 9 – 11%.

The DMO had set out to raise N1.8trn through FGN bonds by end-Q3 ’22. However, yearto-date, it has raised N2.3trn, exceeding its target by 15% or N268bn. Considering the sale of other debt instruments such as NTBs and savings bonds, the DMO is on track pro rata to meet or exceed its domestic borrowing target (N3.53trn) for the year.

According to the DMO’s latest public debt report, total domestic debt increased by 5% q/q and 20.6% y/y to N26.2trn as at Q2. The increase can be partly attributed to increases in FGN bonds (6.7% q/q), NTBs (2.2% q/q) and FGN Savings bond (15.2% q/q).

FGN bonds accounted for 72.5% of total domestic borrowings in Q2. We maintain our view that the FGN is likely to depend on domestic borrowing to meet its fiscal deficit due to unfavourable external conditions.

Coronation Merchant Bank’s economic research team see mid-curve FGN bond yields around 13.0 – 14.0% and yields at the longer-end of the curve between 14.0% – 15.0% over the next one month. However, the level of system liquidity (impacted by items such as auctions, CRR debits/refunds, bond/NTB maturities, coupon payments and FAAC allocation) would also influence movement in yields.

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