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Investors embrace Nigerian stocks, with portfolio investment rising by N40.5 billion

Domestic transactions accounted for 70.33% while foreign transactions accounted for 29.67% of the total transactions.

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The Nigerian Stock Exchange appears to be gaining significant traction as total portfolio investments rose by N40.5 billion in September 2020.

This was contained in the domestic and foreign investments report released by the Nigerian Stock Exchange (NSE).

According to the report, the total portfolio investments rose by 42.9% compared to 94.45 billion recorded in August 2020. The breakdown of the report shows that domestic transactions accounted for 70.33% of the total transactions, while foreign transactions accounted for 29.67% of the total transactions in September.

Key highlights

  • Total domestic transactions completed year to date (YTD) is about N825.94 billion, while foreign transactions completed YTD is about N510.25 billion.
  • Foreign inflows decreased by 71.67% since the last rise in September 2019, while Foreign Outflows decreased by 70.31% since the last rise in March 2020.
  • The total value of transactions completed by Domestic Investors in September 2020 surpassed that of the total value of transactions completed by Foreign Investors by N54.87 billion.
  • Portfolio investments increased sharply by 42.9% from N94.45 billion (about $244.27 million) in August 2020 to N134.97 billion (about $349.85million) in September 2020.
  • Compared with September 2019 (N141.45 billion), the performance of the current month indicates that total transactions decreased by 4.58%.

As illustrated in the chart, total transactions completed between August and September 2020 indicated that total domestic transactions surged by 71.12% from N55.47 billion in August to N94.92 billion in September.

Also, total foreign transactions increased by 2.74% in September 2020 from N38.98 billion (about $100.81 million) in August 2020 to N40.05 billion (about $103.81million) in September 2020.

Meanwhile, for domestic transactions, analysis revealed that Institutional Investors outperformed Retail Investors by N23.54 billion.

A comparison of domestic transactions in the current and prior month (August 2020), revealed that both retail and institutional transactions increased by 34.12% from N26.61 billion in August 2020 to N35.69 billion in September 2020, and 105.23% from N28.86 billion in August 2020 to N59.23 billion in September 2020 respectively.

For foreign transactions, analysis revealed that Foreign Outflow outperformed Foreign Inflow by N12.05 billion. A comparison of foreign transactions in the current and prior month (August 2020) revealed that Foreign Inflow declined by 20.72% from N17.66 to N14 billion, while Foreign Outflow increased by 22.19% from N21.32 to N26.05 billion.

What you should know

  • Over a 6-year period, based on the data available on the NSE, analysis indicated that total domestic transactions decreased by 67.94% from N296.06 billion in September 2014 to 94.92 billion in September 2020; while total foreign transactions decreased by 82.33% from N226.68 billion in September 2014 to N40.05 billion in September 2020.
  • Total domestic transactions accounted for 70.33% of the total transactions carried out in September 2020, while foreign transactions accounted for 29.67% of the total transactions in the same period.

What this means

Considering the importance of foreign investment, the decline is particularly alarming and could indicate that foreign investors are shying away from Nigerian stocks. Meanwhile, more Nigerian investors are venturing into the market compared to previous months.

However, the encouraging factor is that total foreign and domestic portfolio figure recorded in September is the highest since the dip in March. This may well mean that stocks are beginning to pick up, which is good news for stock investors.

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STOCK MARKET

Nestle, others, drag NGX market capitalization down by N20.38 billion

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The NGX closed on a negative note to sustain the rally amidst sell-offs and buy-interests as the benchmark All-Share Index (ASI) depreciated by 9 basis points. The NGX ASI closed at 43,859.30 points, to reflect a decline of 0.09% from the previous trading day and a Year-to-Date (YTD) return of 2.68%. Meanwhile, the market capitalization decreased by N20.38 billion.

At the close of market on Tuesday 11th January 2022, the stock exchange market value currently stands at N23.63 trillion from N23.65 trillion in the previous trading day.

The market breadth closed negative as BUAFOODS led 17 gainers, and 26 Losers topped by MBENEFIT at the end of today’s session. The stock market has advanced 1,142.86 base points since the start of the year.

NGX ASI Top gainers

  • BUAFOODS up +10.00% to close at N64.35
  • ETERNA up +5.09% to close at N5.57
  • UBN up +4.63% to close at N5.65
  • WEMABANK up +3.57% to close at N0.87
  • OANDO up +2.83% to close at N4.73

NGX ASI Top losers

  • MBENEFIT down – 10.00% to close at N0.27
  • BERGER down – 9.94% to close at N7.70
  • UPDCREIT down – 8.14% to close at N3.95
  • NESTLE down – 7.81% to close at N1435
  • UNITYBNK down – 6.12% to close at N0.46

NGX ASI Top Traded by Volume

  • TRANSCORP – 58,356,986 units
  • BUAFOODS – 51,526,040 units
  • FBNH – 16,506,883 units
  • GTCO – 14,050,268 units
  • ACCESS – 13,337,434 units

NGX ASI Top Traded by Value

  • BUAFOODS – N3,315,699,168.00
  • SEPLAT – N596,916,173.50
  • STANBIC – N381,532,603.15
  • DANGCEM – N381,456,136.10
  • GTCO – N358,212,819.95

Market sentiments trend towards the bears with the market differential being in favour of the decliners as 17 gainers were surpassed by 26 losers.

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STOCK MARKET

Cement makers, Dangote and BUA Cement, start year on bearish note

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Cement makers, Dangote Cement Plc and BUA Cement Plc have resumed the year on a negative note amid positive market rally.

The decline recorded in the share price of both companies has weighed down the Industrial Index, which tracks the daily and weekly performance of quoted Industrial companies, depreciating by 2.41%, from 2067.58 points the previous day, to 2017.78 points, at the end of the trading session.

Two of the major quoted cement companies, Dangote Cement Plc and BUA Cement Plc, depreciated by 2.72% and 2.71% respectively.

Stock performance summary

Dangote Cement Plc

Dangote Cement Plc share price declined from N257.00 to N250.00, reflecting a decrease of 2.72% at the end of the day’s trading session.

The decrease in share price took the market capitalization down from N4.38 trillion to N4.26 trillion supporting a loss of N119 billion in market capitalization at the close of trading activities on the stock exchange.

The shares of the most capitalized company on The Exchange has declined by 2.72% from year-to-date, starting the year at N257.00 and currently traded at N250.00. However, the shares of the company have returned about 26.20% gains for investors who bought them at their 52-week low trading price of N198.10 per share.

BUA Cement Plc

BUA Cement Plc share price depreciated from N71.95 to N70.00, reflecting a decrease of 2.71% at the end of the day’s trading session.

The decrease in share prices of the cement producer took the market capitalization down from N2.44 trillion to N2.37 trillion bringing the decline to N66.04 billion in market capitalization at the close of trading activities on the Nigerian Stock Exchange.

The shares of BUA Cement Plc have advanced by 4.40% from year-to-date, starting the year at N67.05 and currently traded at N70.00. However, the shares of the company have returned about 14.38% gains for investors who bought them at their 52-week low trading price of N61.20 per share.

At the end of the day’s trading activities, the NGX All-Share Index and market capitalization appreciated by 1.00% from the previous trading day, to close at 43,476.75 index points and N23.43 trillion respectively.

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STOCK MARKET

Equity investors sustain positive rally as the NGX grows by N70.69 billion

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The NGX has continued to sustain the positive rally amidst sell-offs and buy-interests as the benchmark All-Share Index (ASI) appreciated by 30 basis points.

The NGX ASI closed at 43,607.94 points, to reflect a growth of 0.30% from the previous trading day and a Year-to-Date (YTD) return of 2.09%. Meanwhile, the market capitalization increased by N70.69 billion.

At the close of market on Thursday 6th January 2022, the stock exchange market value currently stands at N23.50 trillion from N23.43 trillion in the previous trading day. The market breadth closed positive as BUAFOODS led 24 gainers, and 13 losers topped by SUNUASS at the end of today’s session. The stock market has advanced 891.50 base points since the start of the year.

NGX ASI Top gainers

  • BUAFOODS up +10.00% to close at N48.40
  • ACADEMY up +9.09% to close at N0.60
  • MEYER up +8.70% to close at N0.50
  • REGALINS up +6.67% to close at N0.48
  • LIVESTOCK up +6.22% to close at N2.05

NGX ASI Top losers

  • SUNUASS down –9.76% to close at N0.37
  • NEM down – 7.78% to close at N4.15
  • FTNCOCOA down – 7.69% to close at N0.36
  • OANDO down – 5.15% to close at N4.60
  • UNILEVER down – 3.45% to close at N14.00

NGX ASI Top Traded by Volume

  • FBNH – 27,092,946 units
  • UBA – 22,026,842 units
  • TRANSCORP – 11,996,487 units
  • BUAFOODS – 11,289,437 units
  • ZENITH –10,267,378 units

NGX ASI Top Traded by Value

  • BUAFOODS – N544,692,788.80
  • FBNH – N307,295,893.00
  • ZENITHBANK – N260,603,050.05
  • UBA – N177,521,867.85
  • NGXGROUP – N134,255,689.40

Market sentiments trend towards the bulls with the market differential being in favour of the advancers as 24 gainers surpassed 13 losers.

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