Nigeria’s equities bounces back, gains N41bn

Transactions on the floor of the Nigerian Exchange (NGX) on Wednesday closed on a positive note, appreciating by N41 billion.  The market capitalisation of listed equity appreciated by 0.12 percent to N34.973 trillion from N34.932 trillion reported the previous day. The NGX All Share Index also increased 75.16 basis points to 64267.36 points from 64192.20 points traded the previous day. A review of the investment showed that Nascon, Chams Plc, and Abbey Building Society led the gainers’ table in percentage terms, gaining 10 percent to close at N35.75 per share, N0.99 and N1.21 per share respectively. Skyways Aviation Handling followed with a gain of 9.96 percent to close at N28.15 per share, and Dangote Sugar Refinery added 9.93 percent to close at N32.65 per unit. On the other hand, Thomas Way and TIP topped the losers’ chart with a drop of 10 percent each to close at N1.17 and N0.72 per share respectively. UPL trailed with a loss of 9.78 percent to close at N2.49 per unit, Omatek fell by 9.76 percent to close at N0.37 per share, JohnHolt was down by 9.44 percent to close at N1.63 per share. Volume of trades declined by 431.313 million, representing 56.60 percent as investors traded 330.784 million shares valued at N4.269 billion in 6251 deals against 762.097 million shares worth N7.710 billion in 7935 deals. Trading activities on the shares of Transnational Corporation of Nigeria (Transcorp) led market activities with 58.829 million shares worth N209.186 million, FBNHoldings followed with an account of 27.951 million shares cost N502.759 million, Ecobank Transnational Incorporate traded 21.303 million shares cost N330.246 million, AccessCorp exchanged 20.697 million shares cost N34.178 million while Chams Plc traded 16.964 million shares valued at N16.135 million.

Stock market swells N867.7bn, as forex gap widens across trades

The Nigeria Exchange (NGX) last week grew by an additional N867.7 billion to cap at N35.7 trillion. All Share Index (ASI) rose by 0.1 percent. This is as the crude oil price rise in the international markets failed to grow the country’s foreign reserves, leading to a widening gap across markets. At the domestic stock market, Year-to-Date (YTD) return improved to 26.9 percent (previously 26.8 percent). Activity level dampened as average volume and value traded fell 31.7 percent and 62.0 percent to 570.9 million units and N7.5 billion week-on week (w/w) respectively. At the global equities market, resilient corporate earnings encouraged bullish sentiment. Last week, the global equities market performance was shaped by a mix of the International Monetary Fund (IMF’s expectation of a better growth in China, unsurprising rate hikes by the US Feds and European Central Bank (ECB), and exciting corporate earnings. Overall, the MSCI World index rose 0.3 per cent w/w. The US market closed the week positive as investors continued to digest impressive corporate earnings releases and recent economic data. Specifically, PCE headline inflation slowed to 3.0 per cent in June from 3.8 per cent in the prior month – further solidifying expectations of the Fed to halt its ongoing hawkish monetary campaign. A the foreign exchange (fox) market, Brent crude oil price rose 3.9 per cent w/w to $84.00/bbl. backed by strong demand from the Sino economy as it reopens economic activities. This also comes with supply being artificially contained by OPEC+ members and frail supply pulls from the US. “Meanwhile, Nigeria’s foreign reserves still falls short of expected accretion from crude earnings as it declined 0.1 per cent w/w to $33.9 billion as of July 26th, 2023”, said analysts at Afrinvest. Across the forex market last week, naira traded within a similar band to the previous week. At the Investors & Export (I&E) window activity level improved 8.3 per cent, 32,3 million to $421.6 million, leading to 0.3 per cent w/w appreciation of the naira N775.76/$. In the parallel market the dollar appreciated 0.6 per cent w/w to N870/$, bringing a weekly average spread increase of 60.6 per cent to N89.02. At the treasury bills market, the OPR and OVN rates (interbank rates) fell 19.5ppts and 19.6ppts w/w respectively to 0.9 per cent and 1.4 per cent due to buoyant system liquidity. Specifically, liquidity level advanced 180.2 per cent  w/w to N593.0bn as higher opening balances of banks (9.0x w/w) and Federal Account Allocation Committee (FAAC) payment largesse more than offset NT-Bills outflows of N264.3 billion during the week. The secondary market for domestic bond instruments closed the week on a bearish note as investors reacted negatively to the outcome of the MPC meeting. As such, average yield rose three basis points (bps) to 12.8 per cent backed by repricing across the curve. Specifically, yield on the short, mid, and long-dated instruments expanded by 145bps, 25bps and 19bps respectively.

Bears intervene as equity market dips by N430bn

Trading activities on the floor of Nigerian Exchange on Thursday returned to negative trend, declining by N430 billion. Market capitalisation of listed equities on Thursday dropped by 1.32 per cent to N32.232 trillion from N32.662 trillion reported on Wednesday. Also, the NGX All Share Index also depreciated by 789.89 basis points to 59195.21 points from 59985.10 points traded the previous day. A review of the trading for the day showed that MRS Plc, Transco Hotel and Total Plc led gainers table during the day appreciating by 10 per cent each to close at N68.75, N13.31 and N336.70 per shares respectively. Ikeja Hotel followed with a gain of 9.97 per cent to close at N3.31 per share, ETranzact added 9.92 per cent to close at N5.32 per share. On the contrary, SUNU Assurance topped losers chart in percentage terms, declining by 10 per cent to close at N0.45 per unit, Cornerstone Insurance trailed with a loss of 9.73 per cent to close at N1.02 per share, Mcnichols fell by 9.33 per cent to close at N0.68 per share, Access Corp fell by 9.24 per cent to close at N14.25 per unit, RTBriscoe fell by 8.83 per cent to close at N0.31 per unit. Investors traded 1.170 billion shares valued at N15.359 billion in 12611 deals against 1.296 billion shares worth N21.080 billion in 11947 deals. Transactions in the shares of United Bank for Africa led activity during the day, with 192.832 million shares valued at N2.344 billion, AccessCorp followed with account of 121.537 million shares valued at N1.962 billion, Fidelity Bank traded 102.638 million shares valued at N726.740 million, GTCO Plc exchanged 99.847 million shares worth N3.325 billion while Sterling Bank traded 79.277 million shares cost N238.314 million. Bears intervene as equity market dips by N430bn Trading activities on the floor of Nigerian Exchange on Thursday returned to negative trend, declining by N430 billion. Market capitalisation of listed equities on Thursday dropped by 1.32 per cent to N32.232 trillion from N32.662 trillion reported on Wednesday. Also, the NGX All Share Index also depreciated by 789.89 basis points to 59195.21 points from 59985.10 points traded the previous day. A review of the trading for the day showed that MRS Plc, Transco Hotel and Total Plc led gainers table during the day appreciating by 10 per cent each to close at N68.75, N13.31 and N336.70 per shares respectively. Ikeja Hotel followed with a gain of 9.97 per cent to close at N3.31 per share, ETranzact added 9.92 per cent to close at N5.32 per share. On the contrary, SUNU Assurance topped losers chart in percentage terms, declining by 10 per cent to close at N0.45 per unit, Cornerstone Insurance trailed with a loss of 9.73 per cent to close at N1.02 per share, Mcnichols fell by 9.33 per cent to close at N0.68 per share, Access Corp fell by 9.24 per cent to close at N14.25 per unit, RTBriscoe fell by 8.83 per cent to close at N0.31 per unit. Investors traded 1.170 billion shares valued at N15.359 billion in 12611 deals against 1.296 billion shares worth N21.080 billion in 11947 deals. Transactions in the shares of United Bank for Africa led activity during the day, with 192.832 million shares valued at N2.344 billion, AccessCorp followed with account of 121.537 million shares valued at N1.962 billion, Fidelity Bank traded 102.638 million shares valued at N726.740 million, GTCO Plc exchanged 99.847 million shares worth N3.325 billion while Sterling Bank traded 79.277 million shares cost N238.314 million.