Stock Markets Gain N45bn as FG Announces Resumption of International Flights
Stock investors gained N45 billion last week following the federal government announcement that it will reopen the nation’s airspace for international flight operations on September 5th, 2020.
Investors traded 1.072 billion shares worth N7.384 billion in 16,684 transactions during the week, against a total of 950.414 million shares valued at N10.123 billion exchanged in 16,647 deals in the previous week.
In terms of volume traded, the financial sector led with 587.761 million shares worth N4.022 billion traded in 8,483 transactions. The sector contributed 54.76 percent and 54.47 percent to the total equity turnover volume and value, respectively.
The conglomerates sector came second with 307.744 million shares valued at N799.159 million in 1,010 deals. This was followed by the consumer goods sector with a turnover of 50.170 million shares worth N968.272 million exchanged in 3,018 transactions.
The top three most traded equities during the week were Transnational Corporation of Nigeria Plc, UACN Plc and United Bank for Africa Plc. The three accounted for a combined 396.337 million shares valued at N1.373 billion in 1,845 deals. The three accounted for 36.99 percent and 18.59 percent of the total equity turnover volume and value, respectively.
The market capitalisation of listed equities gained N45 billion or 0.35 percent to settle at N13.203 trillion, up from N13.158 trillion recorded a week ago.
While the NSE-All Share Index gained 0.35 percent or 87.50 basis points from 25,221.87 bps posted in the previous week to 25,309.37 bps last week.
On a quarterly basis, the Nigerian Stock Exchange has gained 3.39 percent in the third quarter so far, while it has recorded 2.49 percent appreciation in the month of August.
However, the year-to-date decline stood at -5.71 percent.
Five Leading Health Care Companies Lost Over $65bn in Market Cap YTD
Top Five Leading Health Care Companies More than $65bn in Market Value
Data presented by Buy Shares indicates that five selected leading public health care companies have cumulatively lost $65.59 billion in market capitalization. The slump is on a Year-to-Date basis.
Health care companies banking on coronavirus vaccine
Walgreens Boots Alliance is the biggest loser at $21.21billion. CVS Health is the second biggest loser at $20.81 billion followed by Cigna Corp at $13.88 billion.
From the research, Anthem Inc. market capitalization has plunged by $8.91 billion while Cardinal Health had the least loss at $0.78 billion.
Despite the widespread losses, UnitedHealth Group’s market capitalization gained by a massive $16.73 billion. Johnson & Johnson also gained by $3.97 billion during the period under review.
Although the health care sector has registered a decline in market capitalization, several factors might spark a resurgence. According to the research report:
“The health care companies are banking on a possible vaccine to make a rebound in the market. Currently, there are over 70 vaccines under development, and companies that emerge first are likely to benefit from that. For example, Johnson & Johnson’s positive change in market capitalization can be linked to the fact that the company is very active in vaccine searching. Additionally, the stock market is also depending on the vaccines to make a rebound. Positive news regarding the vaccine has seen other stocks make notable gains.”
The research also overviewed the Year-to-Date returns for the selected companies. AmerisourceBergen Corp has the biggest returns at 13.84% followed by UnitedHealth Group at 4.27%. Elsewhere, Walgreens Boots Alliance has the worst returns at -38.47%. CVS Health had the second-worst returns at -22.63%.
Cadbury, Wapco, Zenith Bank, Others Drag Stock Market Down on Wednesday
Stock Market Closed in the Red on Wednesday
The Nigerian Stock Exchange closed in the red on Wednesday as stocks of Cadbury, Wapco, Zenith Bank and others closed in the red.
Investors traded 211.816 million shares valued at N2.418 billion in 3,651 transactions during the trading hours of Wednesday.
The market capitalisation of listed equities declined by 0.19 percent to N13.353 trillion while the NSE All-Share Index dipped to settle at 25,550.31 basis points.
FCMB led the most traded stocks with 30,330,031 shares valued at N62,182,204.17 while Access Bank, UBA and Zenith Bank followed with 20,974,396; 18,569,571 and 17,986,821 worth N139,403,579.80; N109,651,119.40 and N306,340,033.75. See the details below.
Insider Dealings by Zenith Bank, United Capital, Other Listed Companies
Zenith Bank, Nigerian Breweries, Okomu Oil, Others Report Insider Stocks’ Dealings
Here is a list of all the announced insider dealings for this week.
Zenith announced that Dennis Olisa, an executive director of the bank, purchased 2 million shares in two transactions on September 15, 2020 at the Nigerian Stock Exchange in Lagos.
The lender said Olisa bought 1.5 million shares at N17.20 per share and another 500,000 units at N17.10 per share. Therefore, aggregate volume and price stood at 2,000,000 and N17.18, respectively.
Similarly, SOCFINAF S.A, a foreign substantial shareholder in Okomu Oil purchased 2,011,600 units in three transactions on 9th, 10th and 11th September 2020.
SOCFINAF S.A purchased 1,883,759 of Okomu shares at N77.98 per unit on September 9th. On September 10, it acquired another 13,540 units at N78 each while 114,301 shares were purchased at N74.76 each on September 11th. All transactions done at the Nigerian Stock Exchange in Lagos.
Emanuel Nnorom/VINE FOODS LIMITED 2 added to its holding in United Capital Plc on September 14, 2020. Emanuel Nnorom/VINE FOODS LIMITED 2, a related company to United Capital Plc, acquired 250,000 at N3.08 per share. Another insider, Florence Nnorom who is a relative to a non-executive director Emmanuel Nnorom, purchased 70,000 shares of United Capital Plc at N3.10 per share.
Insider dealings continue as Dr. Gilbert Obiajulu Uzodike, a substantial shareholder in Cutix Plc, increased its holding by 1,483,224 shares. The purchase was done in two transactions between 9th – 14th September 2020. Uzodike bought 499,222 and another 984,002 shares at N1.75 per share in Lagos, Nigeria.
Also, Mojisola Oluyemis Ayeni, the Chairperson, Nascon Allied Industries Plc, purchased ordinary shares of 200,000 in Nascon at NlO per share in September 2020.
Accordingly, Dr. Raymond Zoukpo, an independent director of Honeywell Flour Mills Plc, bought 204,541 shares in Honeywell Flour Mills Plc on September 3rd, 2020 in Lagos, Nigeria.
Nestle S.A increased its stake in Nestle Nigeria Plc by purchasing additional 229,697 shares at N1,249.65 per share on September 11, 2020.
A director of Mutual Benefits Assurance Plc, Ebube Ezeagwula, acquired 2.5 million shares at 20 kobo per unit on September 4, 2020 in Lagos, Nigeria.
Heineken Brouwerijen B.V, another foreign substantial shareholder in Nigerian Breweries Plc, purchased another 3,344,227 shares of Nigerian Breweries in three different transactions.
Heineken Brouwerijen B.V bought 3,265,000 shares at N40.95 a share, another 42,742 shares at N40.89 per share and 46,485 shares at N41.65 a unit.
Insider Dealings Sellers
Adedotun Ogunbiyi, a 5 percent holder in Mutual Benefits Assurance Plc sold 14,502,000 shares at 21 kobo on September 4 and 7, 2020. Ogunbiyi did another 3.11 million shares at 20 kobo per unit a transaction classified as cross deal.
Also, DVCF OIL & GAS PLC sold another 1 million shares of The Initiates Plc at 57 kobo each on September 7, 2020.
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