Wednesday, August 4, 2021

Equity investors gain N292 billion during the week as ASI grows by 1.47%

The Nigerian Stock Market ended the week on a positive note as the NGX All-Share index grew by 1.47% after two consecutive bearish weeks. The benchmark index moved from 37,658.26 points as of 25th June 2021 to 38,212.01 points by the end of the week (2nd July 2021).

This is contained in the weekly market report, released by the Nigerian Exchange Group (NGX) for the week ended 2nd July 2021.

According to the report, investors in the Nigerian equity market gained N292 billion during the week, the equities market capitalisation closed the week at N19.92 trillion as against N19.63 trillion recorded the previous week.

Equity performance

A total of 1.021 billion shares worth N14.15 billion exchanged hands in the Nigerian bourse in the review week across 17,565 deals compared to a total of 1.01 billion shares valued at N10.33 billion that traded last week in 17,165 deals. The Financial Services Industry (measured by volume) led the activity chart with 721.728 million traded shares valued at N5.995 billion traded in 8,709 deals; thus contributing 70.70% and 42.38% to the total equity turnover volume and value respectively.

  • The Consumer Goods Industry followed with 99.083 million shares worth N2.395 billion in 3,703 deals. The third place was occupied by the ICT Industry, with a turnover of 72.718 million shares worth N3.407 million in 643 deals.
  • The top three traded equities, Guaranty Trust Holding Company Plc, Wema Bank Plc, and Zenith Bank Plc (measured by volume) accounted for 213.871 million shares worth N3.818 billion in 3,023 deals, contributing 20.95% and 26.99% to the total equity turnover volume and value respectively.
  • Notably, with the exception of the NGX Oil/Gas Index and Growth Index, all other indices recorded positive growth in the review week, while ASeM Index, NGX-AFR Bank Value Index, and NGX Sovereign Bond Index remained flat.
  • Guaranty Trust Holding Company Plc, Wema Bank Plc, and Zenith Bank Plc were the three most traded equities in the market this week (in terms of volume) accounting for 20.95% and 26.99% of the total equity turnover volume and value respectively.
  • On Thursday, 1st July 2021 trading in the shares of Portland Paints and Products Nigeria Plc (Portland Paints or the Company) was suspended. The suspension was effected to prevent trading in the shares of the Company based on the merger between Chemical and Allied Products Plc (CAP) and Portland Paints (the Scheme) wherein it is proposed that CAP will become the surviving entity and Portland Paints will be absorbed.

Consequently, the suspension is required for the purpose of determining the Company’s shareholders that will qualify to receive the Scheme consideration in preparation for the eventual delisting of Portland Paints from the Daily Official List of the Nigerian Exchange Limited.

Exchange-Traded Products (ETPs)

Trading activities in the ETP market declined during the week as the value of ETFs traded dipped from N1.73 million in the prior week to N930,262, representing a 46% decline, week-on-week.

  • Also, the units traded decreased by -87% from 101,876 units in the prior week to 13,050 units at the end of the week. 
  • Specifically, the ETFs traded during the week are STANBICETF30, VETGRIF30, LOTUSHAL15, NEWGOLD, VETBANK, VETGOODS, and VETINDETF.  

Fixed Income Securities Market

The number of deals in the bonds market decreased from 44 recorded in the prior week to 26 deals at the end of the week ended, 2nd July 2021, with a total of 61,298 units valued at N61.267 million traded in the week. 

  • The bond instruments traded this week were: FGSUK2027S3FGS202267, FGS202261, FGS202375, FGSUK2025S2, FGS202272, and FG9B2022S1. 
  • On Wednesday 30th June 2021, a N25 billion Series 1, Subordinated Unsecured Bonds Due 2027 under the Coronation MB Funding SPV Plc’s N100 billion Bond Issuance Program, with a tenor of 5 years and an interest rate of 6.25% was listed on the Nigerian Exchange Limited. 
  • Also, on Friday 2nd July 2021 the Federal Government listed additional units of bonds to four of its pre-existing bonds on the NSE. An extra, 74,443,853 units were listed on the 16.2884% FGN MAR 2027 bond bringing the total units outstanding to 948,839,915. Also, for the 14.80% FGN APR. 2049 bond, 113,954,700 additional units were listed, bringing the total listed units to 990,364,045.  
  • The 12.50% FGN MAR 2035 had 146,054,184 units added to its listing with a total outstanding unit of 972,035,168.    
  • Finally, additional 171,093,317 units were listed for the 12.98% FGN MAR 2050 bond, bringing the total units outstanding to 555,520,572. 

Leave a Reply

GIPHY App Key not set. Please check settings