Home Stock Market Buying interest lifts stock market benchmark index as investors gain N37.8bn

Buying interest lifts stock market benchmark index as investors gain N37.8bn

by Business News Report

The domestic equities market opened the week on a positive note as buying interest in BUACEMENT (+2.0%), GUARANTY (+1.6%) and FLOURMILL (+10.0%) buoyed the All-Share index 29bps to settle at 24,766.12 points. Consequently, investors gained ₦37.8bn as market capitalisation increased to ₦12.9tn while YTD loss eased to -7.7%. Activity level improved as volume and value traded advanced 83.6% and 34.5% to 186.5m units and ₦1.3bn respectively. The top traded stocks by volume were TRANSCORP (23.4m units), CUSTODIAN (19.1m units) and GUARANTY (18.2m units) while GUARANTY (₦411.6m), ZENITH (₦134.3m) and CUSTODIAN (₦97.7m) led by value.

Performance across sectors was mixed albeit positively skewed as 3 of 6 indices under our coverage advanced save the Oil & Gas and AFR-ICT indices which closed flat. The Industrial Goods and Banking indices advanced 0.8% and 0.7% respectively due to buying interest in BUACEMENT (+2.0%), CUTIX (+3.0%), GUARANTY (+1.6%) and UBA (+1.6%). Similarly, the Consumer Goods index rose 0.1% owing to price appreciation in FLOURMILL (+10.0%) and HONYFLOUR (+5.0%). On the flip side, the Insurance index was the lone laggard, depreciating 2.4% on the back of losses in CUSTODIAN (-7.3%), AIICO (-9.6%) and NEM (-5.0%).

Investor sentiment as measured by market breadth (advance/decline ratio) weakened to 1.2x from the 1.3x recorded previously as 19 stocks advanced against the 16 decliners. The top gainers were NEIMETH (+10.0%), FLOURMILL (+10.0%) and UPL (+9.9%) while UACN (-10.0%), AIICO (-9.6%) and MBENEFIT (-8.7%) lost the most. We believe the performance of the market this week would be majorly dictated by the trend in earnings releases.

Corporate Actions

FLOUR MILLS PLC. (Unaudited FY:2020 Result): Revenue rose 8.8% y/y to ₦573.8bn from ₦527.4bn in FY:2019 while profit after tax advanced 184.4% to ₦11.4bn from ₦4.0bn in FY:2019.

GUINEA INSURANCE PLC. (Unaudited H1:2020 Result): Gross premium written fell 32.0% y/y to ₦514.4m from ₦756.2m in H1:2019 while the company reported a loss after tax of ₦100.3m from a ₦538.3m loss in H1:2019.

CHAMPIONS BREWERIES PLC. (Unaudited H1:2020 Result): Revenue fell 2.1% y/y to ₦3.3bn from ₦3.4bn in H1:2019 while profit after tax fell 42.5% to ₦120.1m from ₦208.8m in H1:2019. 

CHAMS PLC. (Unaudited H1:2020 Result): Revenue fell 53.5% y/y to ₦910.1m from ₦2.0bn in H1:2019 while the company reported a loss after tax of ₦13.1m from a ₦226.0m profit in H1:2019.

Market Statistics for Monday, 3rd August 2020 

Market Cap (N’bn) 12,919.47
Market Cap (US$’bn) 33.9
NSE All-Share Index 24,766.12
Daily Performance % 0.3
WTD Performance % 0.3
MTD Performance % 0.3
QTD Performance % 1.2
YTD Performance % (7.7)
Daily Volume (Million) 186.5
Daily Value (N’bn) 1.3
Daily Value (US$’m) 3.6

Source: Afrinvest

Related Posts