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Tag: Access Corporation

  • NGX kicks off 2025, Green

    NGX kicks off 2025, Green

    The market opened for four trading days this week as the Federal Government of Nigeria declared Wednesday, January 1, 2025, as a Public Holiday to commemorate the New Year Day Celebration. Meanwhile, the Nigerian equities market sustained its positive momentum, supported by strong buying interest in the Insurance, Consumer Goods, and Banking sectors. Consequently, the NGX All-Share Index (NGXASI) rose by 142bps to close at 103,586.33 points at the end of the week. Similarly, market capitalization advanced by ₦1.25 trillion to ₦63.17 trillion, recording a 1.42% gain week-on-week. This impressive performance enhanced the Year-to-Date (YTD) return to 0.64%, reflecting continued investor confidence in the market’s resilience.

    A total turnover of 2.62 billion shares worth N69.74 billion in 47,953 deals was traded this week by investors on the floor of the Exchange, in contrast to a total of 1.39 billion shares valued at N52.02 billion that exchanged hands last week in 33,411 deals.

    The Financial Services Industry (measured by volume) led the activity chart with 1.75 billion shares valued at N17.08 billion traded in 20,595 deals; thus contributing 66.88% and 24.49% to the total equity turnover volume and value respectively. The Services industry followed with 205.81 million shares worth N1.83 billion in 3,654 deals. Third place was the ICT Industry, with a turnover of 189.94 million shares worth N1.84 billion in 3,686 deals. Trading in the top three equities namely ROYAL EXCHANGE PLC, CHAMS HOLDING COMPANY PLC and UNIVERSAL INSURANCE PLC (measured by volume) accounted for 612.03 million shares worth N773.44 million in 2,108 deals, contributing 23.38% and 1.11% to the total equity turnover volume and value respectively.

    Sectoral performance was mainly positive, with four indices posting gains, while the Oil & Gas index declined by 0.5% w/w, following sell-off in TOTAL (-6.5%) and OANDO (-4.23%). The Insurance (+26.9% w/w) and Consumer Goods (+2.2% w/w) indices outperformed, supported by strong buying interest in SUNUASSUR (+27.9%), NEM (+19.1%), MANSARD (+16.1%), UNILEVER (+20%), BUAFOODS (5.1%) and GUINNESS (+4.9%). Meanwhile, the Banking (+0.6% w/w) and Industrial (+0.5% w/w) indices recorded modest gains, driven by price appreciations in ACCESSCORP (+2.1%), ZENITHBANK (+1.2%), BETAGLASS (+10%) and WAPCO (+3.6%).

    Eight-two (82) equities appreciated in price during the week, higher than sixty-four (64) equities in the previous week. Eighteen (18) equities depreciated in price lower than twenty (20) in the previous week, while fifty-two (52) equities remained unchanged, lower than sixty-nine (69) recorded in the previous week.

  • Comercio Partners Weekly Markets Round-up

    Comercio Partners Weekly Markets Round-up

    The Central Bank of Nigeria (CBN) reported a significant rise in remittance inflows, reaching $553 million in July 2024 – an increase of 130% from the same period in 2023, marking the highest monthly inflow on record. This surge is attributed to the CBN’s efforts to enhance liquidity in Nigeria’s foreign exchange market through policies such as licensing new International Money Transfer Operators (IMTOs), implementing a willing buyer-willing seller forex model, and ensuring timely naira liquidity access for IMTOs.

    The increase in remittances aligns with the CBN’s goal to double formal remittance receipts within a year and reflects the effectiveness of its strategies in boosting public confidence in the forex market and supporting economic stability. Despite this progress, Nigeria’s external reserves declined slightly, and the naira weakened against the dollar. Analysts suggest that Nigeria could potentially attract $100 billion in yearly remittances by investing in education, skills development, and exports, similar to India’s achievements. 

    Money Market 

    Market liquidity opened the day at ₦1.22 trillion long. The Open Buy Back (OBB) rate and the Overnight (OVN) rate closed at 25.78% and 26.17%, respectively. 

    We expect rates to hover around current levels.

    Treasury Bills Market

    The FGN Treasury Bills Market witnessed a calm session at the start of the week with a bullish bias. There was demand for the 7 Aug bill bid at 20.59% while offers remained scarce. At the PMA this week, the DMO offered N409.98 billion across the standard tenors. While total subscription stood at N1.03 trillion, only N291.03 billion was allotted. We saw stop rates on the 91-day and 182-day bill dip by 30 bps to 18.20% and 19.20% while the 364-day bill slid by 99 bps to 20.90%. Sequel to the auction, the newly issued one year bill was quoted 19.40/19.20 at Friday closing. In addition, the 17 June OMO bill was bid at 21.90% and offered 21.40%. 

    We expect similar sentiments.

    FGN Bond Market

    The FGN Bond Market traded on a quiet note at the beginning of the week as focus was on the outcome of the bond auction. Nevertheless, we saw trades consummated on the May 33s at 21.20%. At the auction, the DMO offered N190bn across the 29s, 31s and 33s. However, N374.75bn was sold against a total subscription of N460.18bn. These stop rates on the 29s inched up by 41bps to 20.30% while the 31s & 33s declined by 10 bps and 48 bps to 20.90% and 21.50% respectively. There were mild bearish sentiments shortly after the auction, but this was short lived as bullish sentiments ensued. We saw trades consummated on the 33s as low as 20.90% and the 34s at 19.70%. Finally, the 29s and 53s exchanged hands at 20.10% and 18.20% respectively. Week-on-week, the average benchmark yield declined by 1bps to close at 19.31%

    We expect the trend to continue.

    FGN Eurobond Market

    The FGN Eurobond Market traded on a calm note with a bullish tilt as investors continued to look ahead to Fed chair Powell speech. The market remained in mild bullish territory as investors looked ahead to the FOMC minutes. Consequently, the minutes revealed that the vast majority saw September cut as likely. Data from the United States this week showed that the initial jobless claims printed at 232K vs. 230K expected and 228K prior. Furthermore, the S&P global manufacturing PMI printed lower at 48.0 vs. 49.6 prior while the S&P Global Services PMI printed at 55.2 vs. 54 expected and 55 prior. At Fed Chair Powell Speech, he stated that confidence has grown that inflation is on the path to 2% and the time has come for a policy adjustment.

    We expect the bullish trend to persist.

    Currency Market

    The value of the Naira to the dollar appreciated by 62bps printing at ₦1570.14/$ to close the week at the Nigerian Autonomous Foreign Exchange Market Window (NAFEM).

    Equities Market

    The local stock market ended the day with the benchmark NGX All-Share Index (ASI) appreciating by 27bps to close at 95,973.45, bringing the year-to-date return to 28.35%. Market capitalization also rose, closing at ₦55.14 trillion. Market breadth was positive at 2.91x, with 32 stocks advancing and 11 declining. This performance was driven by gains in OANDO [MRF] (+10.00%), MCNICHOLS (+10.00%), and TOTAL (+9.98%), and losses in TIP (-9.78%), FTNCOCOA [RST] (-5.00%), and CUTIX (-4.91%).
    Trading activity was subdued, with the volume of shares traded declining by 17% to 327.28 million units, and the value of shares traded decreasing by 21% to ₦4.61 billion. The most actively traded stocks by volume were ACCESSCORP with 36.85 million units, VERITASKAP 27.68 million units, and FCMB with 24.68 million units. In terms of value, ACCESSCORP led with ₦716.32 million, followed by OANDO [MRF] at ₦612.97 million, and GTCO at ₦513.21 million.

    Despite the day’s positive performance, the NGX All-Share Index reflected a 1-week loss of 1.16% and a 4-week loss of 2.27%, although it maintained an overall year-to-date gain of 28.35%. Other notable indices are the NGX Top 30 Index (+0.27%; -1.29% 1WK; +27.3% YTD), NGX Banking Index (+0.88%; +0.37% 1WK; -6.29% YTD), and NGX Oil & Gas Index (+3.55%; +3.54% 1WK; +64.44% YTD).

  • Bears Resurface; Investors lost N102.55 billion; Naira appreciated by 0.66% to close at N1,476.12

    Bears Resurface; Investors lost N102.55 billion; Naira appreciated by 0.66% to close at N1,476.12

    The domestic bourse experienced a reversal last week’s bullish momentum to start the new week, as the day’s trading opened in the negative zone. The All-Share Index (NGXASI) gained shed 0.18% to close at 99,118.86 points from 99,300.38 points in the previous session.

    The day’s negative performance was primarily driven by investors profit taking activities in stocks like Access Corporation (-0.29%), United Bank for Africa (-1.35%), Fidelity Bank (-0.49%), FBN Holdings (-4.69%) and 13 others.

    Consequently, the year-to-date return settled at 32.56%. Similarly, the overall market capitalization decreased by 0.18% to close at N56.07 trillion as investor’s wealth declined by N102.55 billion.

    Market activity for the day was negative as volume and value traded decreased by 19.45% and 38.92% to 349.59 million units and N5.24 billion, respectively.

    We expect the market to trade mixed amidst investors profit-taking actions.

    CURRENCY MARKET:

    The Nigerian Naira appreciated by 0.66% against the US Dollar in the NAFEM Window, closing at a rate of ₦1,476.12.

  • Comercio Partners Weekly Markets Round-up

    Comercio Partners Weekly Markets Round-up

    On the domestic front, President Bola Tinubu announced plans to submit the 2024 supplementary Appropriation Bill to Nigeria’s National Assembly, aiming to foster prosperity, development, and progress. This move follows the recent enactment of the N28.7 trillion 2024 Appropriation Bill. Tinubu emphasized collective efforts in nation-building and the importance of self-reliance over foreign aid. He acknowledged economic challenges like currency fluctuations and revenue instability impacting financial projections, prompting the need for a supplementary budget. This aligns with the International Monetary Fund’s recommendations to address potential wage increases for workers. The supplementary budget aims to adapt to current economic realities and ensure diligent budget implementation.

    Money Market

    Following the OMO auction settlement and NDF Maturity this week, system liquidity concluded the week at ₦80.71 billion. WoW, the Open Buy Back (OBB) rate and the Overnight (OVN) rate slid 331ps and 306bps to print at 29.09% and 29.94%, consecutively.

    We expect rates to hover around current levels.

    Treasury Bills Market

    The Treasury Bills market traded on mixed sentiments this week with emphasis on the April and May bills. At the OMO auction, CBN offered and allotted ₦500 billion across the standard maturities with total subscription amounting to N903.73 billion. There was no sale for the short-dated tenor. However, the stop rates on the mid and long-dated tenors dropped by 10 bps and 15 bps, closing at 19.64% and 22.34%, respectively. Sequel to the auction, we saw heightened interest on the newly issued 27-May-bill with offers at 21.60% before retracing to 21.80% on the offer. We also saw decent demand on the 22 May bill which was quoted at 20.60/20.25%. In addition, the DMO released the Q3 NTB issuance calendar. Week-on-week analysis indicates a 43bps decline in the average benchmark yield, printing at 21.72%. 

    We expect focus to be skewed to the PMA.

    FGN Bond Market

    The FGN local bond Market traded on a drab note with improved offers seen across the curve, particularly on the MAY 19.89% 2033 bond, the 19.30% APR 2027 bond and the 2049s at 19.90%,19.60% and 17.65%, respectively. Furthermore, trades were consummated on the new 2031 bond at 19.85% while firm bids were quoted at 19.90% on the FEB 2034 bond. Week-on-week, the average benchmark yield rose 2bps to 18.57%.

    We expect a similar session.

    FGN Eurobond Market

    The FGN Eurobond market was off to a quiet start due to the U.S and U.K bank holiday. Bearish sentiments lingered from hawkish sentiments stemming from some FED speakers, but we saw a reversal of this trend following the United States Q1’24 GDP numbers (1.3% vs 1.3%) and core PCE data (2.8% VS 2.8% YoY), coming in as expected.  WoW, the average benchmark yields lost 13bps, settling at 9.62%.

    We expect activity to be skewed to the ISM Manufacturing PMI data.

    Currency Market

    The value of the Naira to the dollar depreciated by 0.21% to print at ₦1485.99/$ this week at the Nigerian Autonomous Foreign Exchange Market Window.

    Equities Market

    Investors on the local bourse enjoyed a pleasant week as the ASI concluded the session in green territory with the ASI advancing 173bps week-on-week and 2bps day-on-day. The upbeat performance was largely driven by buying interest in Seplat Energy Plc, FBN Holdings, UBA and Dangote Sugar. Furthermore, the year-to-date return settled at 32.80% while market capitalization improved by ₦0.022 trillion to ₦56.18 trillion. Akin to market posture, this week recorded a total of 43 advancers and 25 decliners, causing market breadth to print at 1.72x. 

    On the flipside, volume and value traded declined by 43.57% and 45.53% to 434 million units and ₦8.58 billion, accordingly. At the close of today’s trading session, Zenith Bank, Guaranty Trust Holding Corporation and Access Corporation headlined the value chart with respective values of ₦3.74 billion, ₦965.71 million and ₦746.72 million while Zenith Bank, AIICO Insurance, Access Corporation garnered the top volumes of 111.13 million units, 59.11 million units and 43.41 million units. 

    We expect another positive session.