Nigerian Exchange Limited

Nigerian Equities Market Dips by 0.35% in Volatile Trading Week

Published

2 months ago

July 15, 2024

Nigerian Exchange Limited - Investors King

In the trading week ended Friday, July 12, Nigeria’s equities market dipped by 0.35% with the Nigerian Exchange Limited (NGX) All Share Index (ASI) and Market Capitalisation decreasing to 99,671.28 points and N56.44 trillion, respectively, from the previous week’s close of 100,022.03 points and N56.58 trillion.

The market saw only one session of positive close, while the rest were negative, resulting in a loss of approximately N140 billion for investors.

This downturn in the equities market comes as a surprise to many who were expecting a more robust performance due to the upcoming second quarter (Q2) results filings and corporate actions anticipated to drive investor interest.

Despite these expectations, the overall sentiment among investors remained tepid, reflecting broader economic uncertainties.

During the review week, buy-side activities favored oil & gas and industrial stocks. However, banking, consumer goods, and insurance sectors saw a significant number of sell-offs.

Banking stocks, in particular, were actively traded due to the ongoing recapitalization exercise, which has created some volatility in the sector.

The elevated interest rates in the fixed income market continued to exert downward pressure on the equities market.

Many investors are opting for fixed income securities over stocks, given the higher yields available, thereby reducing demand for equities and contributing to the market’s decline.

Despite the weekly drop, the year-to-date (YtD) stock market return remains relatively strong at 33.30%.

However, the market’s performance this month has decreased by 0.39%, indicating a cooling off from the more robust gains seen earlier in the year.

The lukewarm attitude of investors towards stocks is partly due to broader macroeconomic concerns, including inflationary pressures and currency fluctuations.

These factors have made investors more cautious, preferring to wait for clearer signals from the Q2 corporate earnings season before making significant investment decisions.

Market analysts suggest that the forthcoming Q2 results and corporate actions could potentially provide the much-needed impetus for a market rebound.

However, they caution that persistent macroeconomic challenges could continue to weigh on investor sentiment.

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Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Nigerian Exchange Limited

N200bn AVA Infrastructure Fund Listed on NGX to Drive Nigeria’s Infrastructure Transformation

Published

1 week ago

August 30, 2024

Samed Olukoya

AVA Capital Group has officially listed its N200bn Infrastructure Fund on the Nigerian Exchange (NGX).

This listing marks a critical milestone in Nigeria’s journey toward revitalizing key sectors and enhancing the country’s economic growth prospects.

Speaking at the closing gong ceremony at the NGX in Lagos on Thursday, Efe Shaire, Managing Director of AVA Global Asset Managers Limited, described the event as a reflection of the company’s unwavering commitment to Nigeria’s infrastructure development.

“The AVA Infrastructure Fund is a testament to our belief in the promise of Nigeria’s infrastructure development and the impact long-term private sector capital can have in driving productivity gains and sustainable economic growth,” Shaire remarked.

The fund, structured as a N200bn programme, is designed to address Nigeria’s significant infrastructure gap, estimated at around $100bn.

It aims to transform key sectors such as transportation, energy, and telecommunications, unlocking considerable economic potential and significantly improving the quality of life for millions of Nigerians.

“We are confident that the N200bn AVA Infrastructure Fund, once fully raised and deployed, will be instrumental in transforming Nigeria’s infrastructure landscape,” Shaire added.

The fund is expected to play a pivotal role in enabling private sector-driven infrastructure development, focusing on projects that drive national connectivity and economic expansion.

Jude Chiemeka, Chief Executive Officer of the Nigeria Exchange Group, praised the initiative, stating, “It is a N200bn fund with 4,075 units at 1 million per unit. Our participants are creating products that can benefit the country.”

Chiemeka said investments in infrastructure are crucial for spurring economic growth, which is vital for enhancing the country’s overall development.

Femi Shobanjo, CEO of NGX Regulation Limited, also explained the importance of the infrastructure fund to Nigeria’s economy.

He encouraged fund managers to focus on investments that have long-term sustainability and a positive impact on the environmental, social, and governance (ESG) sectors.

“The regulation business is fair, and investment protection is key,” Shobanjo stated, underscoring the importance of regulatory oversight to ensure transparency and accountability in managing the fund’s resources.

The listing of the AVA Infrastructure Fund has garnered widespread support from stakeholders, who view it as a major step forward in addressing Nigeria’s infrastructure challenges.

Senior Doyen of the exchange, Sam Ndata, stated the fund’s potential to catalyze economic growth and enhance connectivity across the nation.

“Our vision with the AVA Infrastructure Fund is clear: to catalyze growth by addressing the critical infrastructure needs that will drive economic expansion, enhance connectivity, and improve the quality of life for millions of Nigerians,” Ndata explained.

He was optimistic that the fund’s impact would be felt across the nation as it helps close the infrastructure gap.

The AVA Infrastructure Fund’s listing is not just a milestone for AVA Capital Group but also a beacon of hope for Nigeria’s infrastructure future.

As private sector-led initiatives like this gain momentum, the potential for growth and development becomes increasingly promising.

This fund aims to be a driving force in transforming Nigeria’s infrastructure landscape, providing the much-needed foundation for sustainable economic growth.

Nigerian Exchange Limited

Equities Market Declines as Investors Seek Safe Haven, Loses N176bn

Published

1 week ago

August 29, 2024

Samed Olukoya

The Nigerian equities market recorded its first negative close of the week on Wednesday as investors turned cautious amid growing uncertainty.

The market declined by N176 billion in value as risk-off sentiment swept across the trading floor of the Nigerian Exchange Limited (NGX).

The NGX All-Share Index (ASI) fell by 0.32% to close at 96,203.65 points, down from the previous session’s high of 96,510.13 points.

Similarly, market capitalization dropped to N55.261 trillion from N55.437 trillion while the year-to-date (YtD) return slipped from 28.84% to 28.66%.

Investor sentiment was largely driven by concerns over market volatility, prompting many to reduce their exposure to high-risk stocks.

Heavyweights such as MTN Nigeria, Neimeth Pharmaceuticals, Tantalizer, and Jaiz Bank were particularly affected, with their stock prices witnessing notable declines.

MTN Nigeria led the sell-off, shedding N15.80 or 7.91% from N199.80 to N184. Jaiz Bank followed closely with 15 kobo or 6.25% as its share price dipped from N2.40 to N2.25.

Neimeth Pharmaceuticals also saw a sharp decline, falling from N2.20 to N2, down by 9.09%.

Meanwhile, Tantalizer’s share price dropped by 8.64%, losing 7 kobo to close at 74 kobo.

The day’s trading session saw 446.6 million shares exchanged across 10,148 deals, with a turnover of N4.53 billion.

Despite the overall bearish sentiment, stocks like Universal Insurance, Japaul Gold, and Prestige Assurance were actively traded, providing some liquidity in the market.

Analysts from Vetiva had earlier predicted cautious optimism for the midweek trading session, with mixed sentiment suggesting limited upside potential.

The analysts pointed out that investors were likely to retain a risk-off stance in the coming days as market conditions remained uncertain.

The broader market continues to face headwinds, with macroeconomic challenges and global market volatility contributing to the nervousness among investors.

As a result, many are choosing to reallocate their portfolios, favoring more stable investments over the traditionally high-risk equities market.

Analysts expect the cautious mood to persist as investors weigh the risks and opportunities in the Nigerian market. Until clearer signs of stability emerge, market participants may continue to tread carefully, prioritizing capital preservation over aggressive risk-taking.

As the week progresses, all eyes will be on the NGX to see if it can rebound from Wednesday’s losses or if the bearish trend will continue.

Nigerian Exchange Limited

Nigerian Exchange Opens Week Strong with N36bn Surge, All-Share Index Climbs

Published

2 weeks ago

August 27, 2024

Samed Olukoya

The Nigerian stock market kicked off the week on a positive trajectory as the Nigerian Exchange (NGX) recorded a gain of N36 billion on Monday.

This surge was largely driven by strong performances from key players like Eterna Plc, Okomu Oil Palm, and Oando, which led the market’s rally.

The NGX All-Share Index rose by 0.07%, closing at 96,037.28 points, while the market capitalization increased to N55.2 trillion. This positive trend boosted the year-to-date return to an impressive 28.35%.

The day’s trading session saw participation from 122 listed equities, with 28 stocks advancing and 18 declining.

Eterna Plc emerged as the top gainer of the day, appreciating by 10% to close at N23.10 per share.

Okomu Oil Palm followed closely with a 9.99% increase, pushing its share price to N379.80. RT Briscoe also gained 9.96%, closing at N2.98, while Oando saw a 9.93% jump, closing the day at N52.60.

On the flip side, Transcorp Power recorded the largest decline of the session, dropping 9.99% to close at N335.20 per share.

Abbey Mortgage Bank also saw a significant drop of 9.69%, closing at N2.33, while United Capital and University Press lost 8.35% and 5.51%, closing at N18.1 and N2.40, respectively.

Despite a 16% decline in turnover compared to the previous trading day, market activity remained robust with 390.51 million shares traded across 9,242 deals, valued at N3.88 billion.

This represented a 19% increase in trading volume and a 26% rise in the number of deals, indicating sustained investor interest.

Veritas Kapital Assurance led in terms of trading volume, with 67.3 million shares exchanged, followed by Japaul Gold and Ventures (23.9 million shares), FCMB Group (20.5 million shares), and Prestige Assurance Company (20.2 million shares).

This week’s positive start follows a challenging previous week for the NGX, which saw the market suffer an N815 billion loss amid bearish trading sessions on Monday and Thursday.

However, the renewed interest in equities appears to have reversed the trend, restoring optimism among investors.

As the recapitalization push in the banking sector continues to stir up market activity, analysts expect further gains in the coming sessions.

Banks like Fidelity, GTCO, and Access Holdings have already completed their capital-raising programs, while others like FCMB Group and Zenith Bank are still in the process of share sales, which is expected to sustain the momentum in the equity market.

With a favorable economic outlook for Nigeria and strong corporate performances, market watchers are optimistic that the Nigerian Exchange will continue its upward trend, offering investors new opportunities in the weeks ahead.