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Investors Gain N84bn as Stock Market Rises Further

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Egypt Stocks
  • Investors Gain N84bn as Stock Market Rises Further

Investors in the country’s stock market gained N84bn on Wednesday’s trading session as the market capitalisation of equities listed on the Nigerian Stock Exchange increased to N11.257tn from N11.173tn recorded on Tuesday.

The All Share Index increased by 0.76 per cent to close at 29,970.86 basis points, compared with the 29,746.24 bps recorded on Tuesday.

Price appreciation in Nestlé Nigeria Plc continued while bargain hunting persisted in Dangote Cement Plc and Access Bank Plc.

Activity level weakened as volume and value traded declined by 32.8 per cent and 30.7 per cent to 216 million units and N3.2bn, respectively.

The top traded stocks by volume were Access Bank (39.2 million units), United Bank for Africa Plc (24.2 million units) Lasaco Assurance Plc (20.8 million units), Zenith Bank Plc (16.3 million) and First City Monument Bank Plc (10.9 million) while the top traded stocks by value were Nestlé (N1.5bn), Zenith Bank (N342.5m) Guaranty Trust Bank Plc (N311.6m), Access Bank (N259m) and UBA (N156.9m).

The sector performance was majorly negative as three out of five indices declined.

The oil and gas index shed the most, down by 1.4 per cent due to sell-offs witnessed in Seplat Petroleum Development Company Plc.

Similarly, the industrial goods index declined by 0.4 per cent on the back of major losses recorded in Cement Company of Northern Nigeria Plc.

The banking index dipped by 0.2 per cent due to losses in GTB and Wema Bank Plc.

On the flip side, the consumer goods index emerged the biggest gainer, up by 2.7 per cent on the back of buying interest in Nestlé.

The insurance index increased by a marginal three basis points.

Investor sentiment as measured by market breadth (advance/decline ratio) took a negative turn to 0.9x from 2.1x recorded on Tuesday as 17 losers outnumbered 16 gainers.

The best-performing stocks were Access Bank, Chams Plc, First Aluminium Plc, A.G Leventis Plc and Nestlé, which saw respective gains of 9.92 per cent, 9.09 per cent, 8.57 per cent, 7.69 per cent and 5.31 per cent.

The top five losers were Trans-Nationwide Express Plc, UACN Property Development Company Plc, Associated Bus Company Plc, Learn Africa Plc and Wema Bank Plc, whose share prices shed 9.76 per cent, 9.64 per cent, 8.33 per cent, 8.22 per cent and 5.56 per cent, respectively.

“The relatively weak investor sentiment portends that the last trading session of the week may be dominated by profit-taking activities, especially in bellwethers that had recorded gains in previous sessions,” analysts at Afrinvest Securities Limited said.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Finance

Investors Oversubscribed for FGN Bonds by N205.87 Billion in October

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bonds

FG October Bonds Oversubscribed by N205.87 Billion

The Debt Management Office (DMO) has said investors oversubscribed for the Federal Government’s October bonds by N205.87 billion.

The DMO stated this after concluding the monthly FGN bonds auction on Wednesday.

Two instruments of 12.5 per cent FGN March 2035 re-opening 15-year bond and 9.8 per cent FGN July 2045 re-opening 25-year bond were auctioned.

The two bonds of N15bn each with a total auction figure of N30bn received a subscription of N235.87bn.

The 15-year tenor and 25-year tenor bonds received 99 and 67 bids but recorded 21 and 26 successful bids respectively.

The amounts allotted for each of the bids were N20bn and N25bn respectively.

According to the DMO, successful bids for the 15-year tenor bond and 25-year tenor bonds were allotted at the marginal rates of 4.97 per cent and six per cent respectively.

However, it added, the original coupon rates of 12.5 per cent for the 12.5 per cent FGN March 2035 bond and the 9.8 per cent for the 9.8 per cent FGN July 2045 bonds would be maintained.

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Lafarge Africa Sustains Growth in Third Quarter, Reports N53.3bn Revenue

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Lafarge Africa

Lafarge Africa Grows Revenue by 31.4 Percent to N53.3bn Revenue in Q3 2020

Lafarge Africa Plc, a cement manufacturer headquartered in Lagos, sustained its strong growth in the third quarter (Q3) ended September 30, 2020.

In the company’s financial results released on the Nigerian Stock Exchange on Friday, the cement manufacturer’s revenue rose by 31.4 percent from N45.172 billion posted in the third quarter of 2019 to N59.337 billion in the third quarter of 2020.

Similarly, operating profit grew by 7.2 percent from N7.746 billion in the corresponding quarter to N8.302 billion in the quarter under review. This strong performance continues across the board as net income expanded by 2.8 percent to N4.867 billion, up from N4.734 billion posted in the third quarter of 2019.

Lafarge earnings per share rose by 2.8 percent to 30 kobo in the third quarter, again up from the 29 kobo posted in the same period of 2019.

On the outlook for the company going forward, the company said:

 Market demand is expected to remain strong in Q4.
 Naira devaluation and inflation remain a concern in Q4.
 The implementation of our “HEALTH, COST & CASH” initiatives would continue to deliver
improvement in our performance.
 We will maintain a healthy balance sheet.

Speaking on the company’s performance, Khaled El Dokani, CEO, Lafarge Africa Plc, said “Our robust results for the first 9 months reflect the strong recovery of the demand in Q3 and the successful implementation of our “HEALTH, COST & CASH” initiatives. Both have delivered considerable improvement in recurring EBIT, net income and free cash flow, despite the impact of the COVID-19 pandemic and Naira devaluation, particularly in Q3.

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Finance

Despite COVID-19 Pension Assets Hit N11.4 Trillion

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pension funds

Total Pension Assets Expand to N11.35 Trillion

The National Pension Commission has revealed that the total pension assets rose to N11.35 trillion as of the end of August 2020 despite the COVID-19 pandemic that disrupted businesses and economic productivity.

According to the latest figures from the National Pension Commission,  the commission assets expanded from N11.08 trillion in June 2020 to N11.3 trillion in July.

The report noted that 66.27 percent or N7.51 trillion of the funds had been invested in the Federal Government’s securities.

While some of the funds were also invested in domestic and foreign ordinary shares, corporate debt securities, local money market securities and mutual funds.

In the commission’s second quarter (Q2 2020) report, it said that following “the issuance of demand notices to some defaulting employers whose outstanding pension contribution liabilities had been established by recovery agents, 16 of the affected employers remitted N261.33 million during the period.

“PenCom said this represents a principal contribution of N152.79 million and penalty of N108.54 million during Q2 2020.”

In the commission’s Q2 2020 report, it said “the pension fund administrators (PFAs) 2,839 contributors under the micro pension plan, remitted a total of N7.4 million to the RSAs as pension contributions.

Also in the same quarter, it said the PFAs recaptured 56,990 RSA holders and uploaded their data to the enhanced contributory registration system (ECRS).

PenCom further said the growth in the industry’s membership was driven by the RSA scheme, which had an increase of 41,147 contributors, representing 0.46 percent.

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