Nigerian Exchange Limited

Activity on Stock Market Declined Last Week Amid Weak Economic Fundamental

Nigeria’s stock market extended its decline last week as more economic data points to growing uncertainty amid slowing productivity.

Published

1 year ago

August 22, 2022

Samed Olukoya

Nigeria’s stock market extended its decline last week as more economic data points to growing uncertainty amid slowing productivity.

In the month of July, the National Bureau of Statistics (NBS) report showed that Nigeria’s inflation rate rose to 19.64%, the highest in 17 years.

This was after the Central Bank of Nigeria’s lead monetary policy committee raised the interest rate to 14%, an increase of 250 basis points in the last two months. The apex bank increased borrowing costs to curtail escalating inflation numbers, and simultaneously, lure foreign investors to the Nigerian economy to boost capital importation and augment Nigeria’s dwindling foreign reserves.

All these changes in economic fundamentals impacted investments in the capital market, one of the key economic indicators of the Nigerian economy, and the economy at large.

Last week, stock investors transacted 823.005 million shares worth N12.228 billion in 17,482 deals, in contrast to a total of 1.511 billion shares valued at N13.547 billion that exchanged hands in 20,074 deals in the previous week.

During the week, the Financial Services Industry led the activity chart with 561.683 million shares valued at N5.576 billion traded in 8,388 deals. Therefore, contributing 68.25% and 45.60% to the total equity turnover volume and value respectively.

The ICT Industry followed with 91.819 million shares worth N1.478 billion in 1,532 deals. In third place was the Consumer Goods Industry, with a turnover of 42.546 million shares worth N3.396 billion in 2,639 deals.

FBN Holdings Plc, E-Tranzact International Plc and United Bank for Africa Plc were the three most traded equities last week and together accounted for 323.474 million shares worth N2.520 billion that were exchanged hands in 1,457 deals. The three contributed 39.30% and 20.61% to the total equity turnover volume and value respectively.

The NGX All-Share Index declined by 0.59% or 293.45 index points to close at 49,370.62 index points from 49,664.07 index points it settled in the previous week.

The Market capitalization depreciated by N158 billion to N26.629 trillion, down from N26.787 trillion it closed in the previous week.

Similarly, all other indices finished lower with the exception of The NGX Premium, NGX Banking, NGX-AFR Bank Value and NGX Industrial Goods Indices which appreciated by 0.12%, 0.65%, 0.07 and 0.28% while, The NGX ASeM and Growth indices closed flat.

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

The Exchange year-to-date return declined further to 15.58%. See the details of top gainers and losers below.

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Stock Market Extends Decline as Inflation Rises to 17-Year High in Nigeria

Samed Olukoya

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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Nigerian Exchange Limited

Nigerian Exchange Sustains Bullish Momentum, Adds N305bn to Investors’ Wealth

Published

3 days ago

December 7, 2023

Investors King

The Nigerian Exchange Limited (NGX) continued its bullish run on Wednesday as investors gained N305 billion.

The Exchange has now gained N471 billion in the last two trading sessions following a N259 billion decline recorded on Monday due to the plunge in the value of some medium-cap stocks.

At the close of trading on Wednesday, the All-Share Index and market capitalization rose by 0.78% to 71,808.64 and N39.294 trillion, respectively.

The year-to-date gains of the index rose to 40.11%.

A total of 34 stocks closed in the green against 22 that closed in the red as a total of 121 stocks exchanged hands during the day.

This positive momentum was primarily driven by share price appreciation from top gainers, including Thomas Wyatt (9.93%), FBN Holdings (9.91%), Multiverse (9.90%), Ecobank Transnational Incorporated (9.88%), and Infinity Trust Mortgage Bank (9.70%).

However, some stocks experienced losses, including Axa Mansard Insurance, Guinea Insurance, and Oando Plc, with share dips of 9.69%, 9.68%, and 9.13%, respectively.

Sectorial performances varied with NGX Insurance, NGX Consumer Goods, and NGX Industrial Goods indices recording losses, while the Oil/Gas sector reported a lull performance.

Notably, tier I banking stocks fueled the Banking sector to a substantial 5.01% gain, with GTCO, United Bank for Africa, AccessCorp, and Zenith Bank leading in volume and value, contributing to the overall market bullishness.

Positive trading activity continued, with a 19.90% increase in total deals, 59.15% rise in volume, and an 8.88% uptick in value, totaling 8,412 deals, 690.01 million units, valued at N12.10 billion.

GTCO emerged as the most actively traded security in terms of volume and value, with 76.70 million units worth N3.04 billion exchanged in 260 deals.

Nigerian Exchange Limited

Global Markets Face Headwinds as European Equities Drop Amid Economic Concerns

Published

3 days ago

December 7, 2023

Investors King

European equity experienced a decline following losses in Asian shares, the pressure created by weak oil prices and growing apprehensions about China’s economic outlook.

The Euro Stoxx 50 contract fell by 0.5%, mirroring a broader trend of cautiousness in the markets.

The drop in Asian stocks from Hong Kong to mainland China and Australia followed a third consecutive daily decline for the S&P 500 and contributed to a general atmosphere of market uncertainty.

Treasury yields rose after a previous drop, with the 10-year note experiencing its lowest levels since August.

The shift in sentiment was evident in a seven-basis-point jump, in tandem with a selloff in Japanese sovereign debt.

Energy producers faced declines due to oil reaching its lowest point since June amid oversupply concerns.

Also, Moody’s Investors Service’s downgrade of its outlook on several Chinese companies, coupled with worries about the nation’s debt burden, contributed to equity weakness.

A surprise contraction in China’s imports in November further fueled concerns about the economic slowdown.

Investors are now eyeing Friday’s US jobs report following private payrolls data that fell short of estimates, indicating potential softening in the employment market.

Meanwhile, oil stabilized after a five-day losing streak, and focus is on the upcoming OPEC+ production plans.

The dollar remained relatively steady against major currencies, and as markets await the Federal Reserve’s meeting next week, there is anticipation regarding potential shifts in market expectations based on quarterly forecasts.

In corporate news, Apple Inc. is preparing for new models and upgrades, aiming to reverse declining sales, while Advanced Micro Devices Inc. targets the artificial intelligence market dominated by Nvidia Corp.

Gold extended gains and bitcoin traded below $44,000, a level not seen since June last year.

Nigerian Exchange Limited

Nigerian Exchange Rebounds with N166bn Gain, Led by Key Banking and Tech Stocks

Published

4 days ago

December 6, 2023

Investors King

The Nigerian Exchange Limited bounced back on Tuesday as investors gained N166 billion after a brief stint in the red earlier in the week.

The market’s resilience was marked by a 0.43% rise in both market capitalization and the All-Share Index to close at N38.989 trillion and 71,250.17, respectively.

The resurgence was spearheaded by robust performances in the stocks of AccessCorp, United Bank for Africa, Zenith Bank Plc, FBNHoldings, and MTN Nigeria, showcasing the influential role of key banking and technology sectors in shaping market dynamics.

The day’s trading saw a significant uptick in transaction volume, surging by 20.93% to 433.57 million, valued at over N11.11 billion.

This indicated a robust 56.53% increase in trade value compared to the previous day. A total of 122 stocks were active in 7,016 deals, underlining the depth of market engagement.

Noteworthy gainers contributing to the positive trend included Secure Electronic Technology Plc, Multiverse, Sunu Assurance, FBNH, and Thomas Wyatt, posting gains of 10.00%, 9.95%, and 9.92%, respectively.

On the flip side, Abbey Mortgage Bank Plc led the decliners with a 9.88% depreciation.

The day’s market dynamics were notably influenced by key value drivers.

The Nigeria Infrastructure Debt Fund, managed by Chapel Hill Denham, made waves as it announced a special distribution to unit holders, contributing to its active trading volume of 20,517,592 units valued at N2.22 billion.

Airtel Africa, MTN Nigeria, UBA, and UAC Nigeria also played pivotal roles, contributing significantly to the total volume traded for the day.

This robust rebound underscores the dynamic nature of the Nigerian stock market, reflecting the interplay of various sectors in shaping its trajectory.