Nigerian Exchange Limited

Nigerian Stock Market Moderates on Thursday Amid Profit Taking

Market Momentum Dips Following Recent Rally Triggered by Emefiele’s Suspension and Naira Floatation

Published

1 year ago

June 16, 2023

Nigeria’s stock market closed in the red for the first time since the suspension of former Governor of the Central Bank of Nigeria, Godwin Emefiele, as investors decided to cash in on their gains following a recent two-day rally.

The downturn saw several prominent companies, including Access Corporation and Cornerstone Insurance, grappling with declining share values.

Access Corporation, one of the most actively traded stocks, faced a significant sell-off, causing its share price to plummet by N1.45 or 9.24 percent from N15.70 to N14.25. Similarly, Cornerstone Insurance suffered a substantial setback, with its share price dropping from N1.13 to N1.02, representing a decline of 11 kobo or 9.73 percent.

Thursday’s dip marked a missed opportunity for investors to consolidate the previous rally, which was primarily fueled by Emefiele’s suspension and the Central Bank of Nigeria’s decision to float the naira.

Despite the market’s recent positive momentum, the downward trend on Thursday impacted the Nigerian Exchange Limited All-Share Index and equities Market Capitalisation, causing them to decline from 59,985.10 points and N32.662tn, respectively, on Wednesday to 59,195.21 points and N32.232tn on Thursday.

The trading activities on Thursday witnessed investors exchanging 1,170,151,738 units valued at N15.359bn in 12,611 deals, reflecting a decline when compared to the previous day’s trading session.

This downturn came just a day after banks led the top gainers on Wednesday, a development analysts attributed to critical economic decisions made by the Bola Tinubu administration. Wednesday’s trading session saw the All-Share Index rise by 3.99 percent, closing at 59,985.10 index points, up from 58,163.55 index points recorded in the previous day’s session.

The market capitalisation also experienced an impressive appreciation, gaining N992bn and closing at N32.662tn, representing a 3.13 percent increase compared to the previous trading session’s N31.670tn.

International Breweries took the lead among gainers with a 10.00 percent increase, while Pharm Deko suffered a significant decline of -9.65 percent, leading the pack of losers.

UBA Plc emerged as the most traded equity by volume at the end of Wednesday’s session. Other notable gainers included Sterling, Transcohot, Dangote Sugar, and First Bank Nigeria Holdings, all achieving a 10 percent increase.

The market’s recent roller-coaster ride demonstrates the influence of both economic decisions and investor sentiment on Nigeria’s stock market. As the country navigates through economic shifts and policy changes, investors and analysts will closely monitor future market trends to make informed investment decisions.

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Nigerian Exchange Limited

Stock Investors Gain N131 Billion on Tuesday

Published

2 days ago

September 18, 2024

Samed Olukoya

Nigerian Exchange Limited - Investors King

Nigeria’s equities market opened the holiday-shortened trading week in green as investors bought banking and consumer goods stocks despite record profit taking in insurance, industrial, oil & gas stocks.

“Looking forward, the equities market is expected to retain its buy interest as investors cherry-pick undervalued stocks. However, given the sentiment that rates might have peaked in the fixed income and money markets and investors locking in on current rates, we expect some bearish undertone to persist in the equities market,” according to United Capital research analysts.

The analysts said the bulls “will remain incentivised to persist in bargain hunting, given the tremendous mid-long-term opportunities in the equities market. Fund managers and businesses may begin to entertain mid-long-term (≥6 months) investment objectives, cherry-picking only sound equities with strong fundamentals and ongoing corporate actions. This strategy will maximise market opportunities, thereby optimising portfolio returns”.

The Nigerian Exchange Limited (NGX) All-Share Index (ASI) and equities market capitalisation appreciated by 0.23 percent and N131billion from preceding day’s 97,456.62 points and N56.002 trillion respectively to 97,685.63 points and N56.133 trillion.

The market’s year-to-date (YtD) return rose to 30.64 percent.

According to Meristem research analysts, “While we expect subdued participation in the Nigerian equities market this week, we anticipate that buying activity will outweigh profit-taking. Our outlook is hinged on the belief that no major negative catalysts are expected to shift market direction this week. We anticipate that investors will continue selective buying, seeking opportunities across various sectors.

“Additionally, macroeconomic developments and corporate actions from companies could stimulate moderate buying interest in the market. We also do not foresee a significant shift towards the fixed-income market as yields have started to stabilize. However, we acknowledge the potential for profit-taking as short-term investors may look to capitalize on recent gains. Overall, we expect the market to close in the green zone this week,” Meristem analysts said.

Nigerian Exchange Limited

Nigeria’s Equities Market Gains 0.32% Boosted by Nestle, Flourmills, and FBN Holdings

Published

1 week ago

September 13, 2024

Investors King

Nigeria’s equities market rose by 0.32 percent or N178billion on Thursday, thanks to Nestle, Flourmills and FBN Holdings that led the league of major advancers on the Lagos Bourse.

FBN Holdings increased from N24 to N26.40, adding N2.40 or 10percent. Caverton rose from N2.10 to N2.31, up by 21kobo or 10percent.

Flour Mills moved from N45.05 to N49.55, up by N4.50 or 9.99percent. RT Briscoe increased from N3.02 to N3.32, down by 30kobo or 9.93 percent, while Nestle rallied from N810 to N890, N80 or 9.88percent.

At the close of trading, the Nigerian Exchange Limited (NGX) All Share Index (ASI) and equities market capitalisation increased from 96,715.04 points and N55.575 trillion respectively to 97,025.17 points and N55.753 trillion.

Access Holdings, FBN Holding, UBA, Caverton and Zenith Bank shares were most trading stocks. In 9,615 deals, investors exchanged 390,546,861 shares valued at N7.974billion.

Ahead of Thursday’s trading, analysts said broader market sentiment will remain balanced, with risk-averse investors maintaining a cautious stance ahead of any major corporate earnings announcements.

Nigerian Exchange Limited

Nigerian Exchange Recovers from Early Week Losses, Market Value Hits N55.6 Trillion

Published

1 week ago

September 11, 2024

Samed Olukoya

The Nigerian Exchange Limited (NGX) rebounded on Tuesday after opening the week in the red.

The NGX All-Share Index appreciated by 0.62 percent to 96,802.8 points while the market value of listed equities stood at N55.626 trillion.

Investors traded 406,194,548 shares valued at N13.313 billion in 12,241 transactions during Tuesday’s trading session.

Investors continued to show interest in Oando, which emerged as the most traded equity in both volume and value.

A total of 58,485,705 shares worth N5.521 billion were exchanged, with Oando’s stock appreciating by N6, or 6.7 percent, from N89.5 to N95.5 per share.

The second most traded stock on Tuesday was Access Holdings Plc with 30,379,481 shares valued at N557.65 million transacted.

However, Access Holdings’ shares lost 55 kobo, or 2.96 percent, declining from N18.95 to N18 per share.

The Exchange’s year-to-date (YtD) return improved to 29.46 percent.

SFS REIT led the gainers’ chart, increasing by N14.80, or 9.98 percent, from N148.35 to N163.15 per share. This was followed by Custodian Investment, which gained N1.10, or 8.87 percent, rising from N12.40 to N13.50, while RT Briscoe moved from N2.82 to N3.10 per share.