Stock Investors Continue to Lose Money as 23 Stocks Closed in Red
Sentiment across the Nigerian stock market remained weak as 23 stocks closed in the red on Tuesday.
The market capitalisation of listed stocks declined by N2 billion to N12.91 trillion as sentiment remains generally weak.
The Nigerian Stock Exchange All-Share Index depreciated by 3.86 basis points or 0.02 percent from 24,753.92 bps it closed on Monday to 24,750.06 bps on Tuesday.
A total of 23 stocks closed in the red, against nine that managed to close in the green.
While investors at the bourse on Tuesday traded a total of 167.95 million shares in 3,784 transactions during the trading hours.
In terms of volume traded, the premium subsector was the most active as investors exchanged 39.62 million shares in 1,178 deals. This was largely driven by the attractiveness of the stocks of United Bank for Africa Plc and FBN Holdings Plc.
Accordingly, the banking subsector was aided by the renewed interest in shares of Guaranty Trust Bank Plc and Fidelity Bank Plc. Both contributed 28.10 million shares traded in 623 transactions by investors.
UACN Property Development Company Plc led the gainers’ table with 7.69 percent to settle at 98 kobo per share.
This was followed by the Transnational Corporation of Nigeria Plc with a 2.86 percent gain to close at 72 kobo per share. Oando Plc added 2.04 percent to settle at N2.50 kobo per share.
On the flip side, the Unity Bank Plc topped losers’ table with a decline of 10 percent to close at 54 kobo per share.
Dangote Sugar lost 9.85 percent to settle at N11.90 per share while the Ikeja Hotel Plc dipped by 9.57 percent to close at N1.04 per share.
Nestlé S.A. Up Stake in Nestle Nigeria Plc to 66.3%
Nestlé S.A. Switzerland Increased Stake in Nestle Nigeria Plc to 66.3%
Despite growing economic uncertainties amid a decline in economic productivity, Nestlé S.A, Switzerland, the parent company of Nestlé Nigeria Plc, has continued to up its ownership percentage in Nestle Nigeria.
Nestlé S.A, Switzerland now owned 66.3 percent of the Nigerian subsidiary.
This was after the company purchased additional shares of 229,697 units in Nestle Nigeria to bring the company’s total purchase from August 20 to date to 977,744 units.
Nestlé S.A has now spent a total sum of N1.17 billion to buy shares in three transactions in its Nigerian subsidiary in 22 days.
A break down of the transactions revealed that the purchase consideration for the 229,697 additional units of Nestlé Nigeria shares at an average price of N1,249.65 per unit is put at N287 million.
Experts said Nigerian shareholders were willing to sell because of the ongoing economic hardships being witnessed in the country.
The National Coordinator, PSAN, Boniface Okezie, said, “It is expected for the foreigners to take the holdings since Nigerian shareholders are offering to sell and no domestic investor has the ability to purchase.
“I don’t see it as a mission to take over the company; I believe it is a morale booster to the Nigerian company. The regulators are watching and they will react if they are crossing the threshold.”
Nigerian Stock Exchange to Benefit From Low Valuations – Experts
Stock Market to Benefit From Low Valuations – Experts
Investment experts have said the Nigerian Stock Exchange would benefit from low stock valuations despite the present mixed performance following sell pressure in banking stocks.
The experts hinged their analysis on the usual investors’ search for undervalued yields with strong fundamentals.
The NSE market capitalisation expanded by N14 billion last week but the All Share Index declined by 0.08 percent 25,572.57 basis points, highlighting the mixed performance of the Exchange amid growing economic uncertainties.
The analysts at Cordros Capital, in the review of the week performance, said the bourse could see a positive performance in the long run over compelling valuations while advising investors to exercise cautions when buying given current uncertainties.
They stated: “In the absence of a positive catalyst, and given the still uninspiring macro story, we guide investors to trade cautiously in the short term.
“However, we expect the market might benefit over the longer term on compelling valuations and as investors seek alpha-yielding opportunities in the face of negative real returns in the fixed income market.”
Experts at Afrinvest Securities, another Lagos-based investment banking company, said the new week would see investors taking profit, a situation they said could weigh on the Exchange and plunge stock value.
Stock Market Cap Appreciates by N14 Billion this week as NSE All-Share Index Dips
Stock Market Gained by N14 Billion this week Amid Economic Uncertainties
The market value of the Nigerian Stock Exchange expanded by N14 billion this week despite weak market sentiment amid growing economic uncertainties.
Investors traded a total turnover of 1.139 billion shares worth N12.692 billion in 17,109 deals during the week, against a total of 1.226 billion shares valued at N10.842 billion that exchanged hands in 19,529 deals in the previous week.
The sectoral performance showed the Financial Services industry led activity chart in terms of volume traded with 870.300 million shares valued at N7.863 billion traded in 9,427 deals, therefore, contributing 76.43 percent and 61.95 percent to the total equity turnover volume and value, respectively.
The Industrial Goods industry followed with 62.689 million shares worth N1.162 billion in 1,557 deals. The third place was the ICT industry, with a turnover of 50.859 million shares worth N2.552 billion in 619 deals.
Trading in the top three equities namely FBN Holdings Plc, Guaranty Trust Bank Plc and Access Bank Plc. (measured by volume) accounted for 353.048 million shares worth N4.018 billion in 3,095 deals, contributing 31.00% and 31.66% to the total equity turnover volume and value respectively.
A break down of the week activities showed investors traded 257,027,926 shares valued at N3,320,061,770 in 3,567 deals on Monday, September 14, 2020. While 245,139,497 shares worth N3,013,027,933 exchanged hands in 3,597 transactions on Tuesday of the same week.
Investors traded 211,816,446 shares valued at N2,417,710,834; 231,201,739 shares worth N2,095,227,478 and 193,495,274 shares valued at N1,845,658,982 in 3,651, 3,360 and 2,934 deals on Wednesday, Thursday and Friday, respectively.
The market capitalisation of listed equities appreciated by 0.10 percent or N14 billion from N13.351 trillion last week to N13.365 trillion this week.
While NSE All-Share Index depreciated by 0.08 percent or 19.38 basis points from 25,591.95bps last week to 25,572.57bps this week.
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