The Nigerian equities market continued the bearish trend as the value of listed stocks dropped by N707 billion at the end of trading on Wednesday, 13th July 2023.
The market declined by 2.07% to close at N34.167 trillion on Thursday. This is a sharp drop from the previous day’s closing of N34,874 trillion.
The All-Share Index (ASI) plummeted by 1,261.99 points to settle at 62,784.94 points on Thursday. The ASI had closed at 64,046.93 points on Wednesday, indicating a drop of 1.97%.
The market’s transaction value dropped by 2.24 billion, reflecting a decline in demand for shares. The Shares were exchanged for a total of N10.45 billion, a decrease of 17.65% from the N12.69 billion transacted in the previous session.
Market Indices
Below are the market indices for today’s trading session:
NGX ASI: 62,748.94 points
% Day Change: -1.97%
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https://d15129fcd1b6525a7a55489520fae4c6.safeframe.googlesyndication.com/safeframe/1-0-40/html/container.html?n=0 % YTD: +22.50%
Market Cap: N34,167 trillion
Volume Traded: 798.47 million
Value: N10.45 billion
Deals: 10,296
How Stocks Performed
The largest gainer was JOHNHOLT with a 10% increase in value while OMATEK suffered a 10% decline and emerged as the top loser.
UBA maintained its position as the most active stock with the highest volume of traded shares at the end of the trading session, repeating its performance from the previous day.
The trading volume decreased in today’s trading session, with only 10,296 transactions executed, in contrast to 13,878 transactions in the previous session. This shows a decline in market activity.
Top Gainers and Top Losers
JOHNHOLT emerged as the top gainer with a 10% increase in its share value. DANGSUGAR and NASCON followed closely, recording 9.94% and 9.91% appreciation in their stock prices respectively.
OMATEK, TRANSCOHOT and STANBIC all witnessed a 10% drop in their share prices, thereby contributing to the market’s falls.
Top Traded Stocks
The market experienced a significant drop in activity today, as the number of shares traded declined by almost a third (31.17%) compared to yesterday.
The trading volume was 798.47 million shares, down from 1.16 billion shares in the previous session.
The trading volume of UBA, FBNH, and TRANSCORP were the highest among all equities today. They accounted for 99.02 million, 72.69 million, and 68.79 million units of trade, respectively.
GTCO led the market turnover on the bourse today, recording a total value of N1.77 billion. UBA came in second with N1.33 billion, while FBNH was third with N1.28 billion.
SWOOTs Watch
The Nigerian Stock Exchange (NSE) witnessed mixed results today, as some sectors performed better than others.
BUA CEMENT was one of the few winners, increasing its share price by 2.01%. On the other hand, UBA, GTCO, MTN NIGERIA, and ZENITH BANK experienced significant losses of 8.45, 5.56%, 4.64%, and 2.04%, 9.62% respectively, indicating a bearish trend in the banking and telecommunication sectors.
AIRTEL AFRICA, DANGOTE CEMENT, and BUA FOODS maintained their closing values from yesterday, showing no change in their market positions. These companies demonstrated a stable performance, reflecting a balanced demand and supply in the communication, construction, and food industries.
FUGAZ Update
The banking sector dragged down the overall performance of the stock market, as the top five banks recorded significant losses.
FBNH, ACCESS HOLDINGS, UBA, GTCO and ZENITH BANK saw their share prices drop by 9.82%, 9.54%, 8.45%, 5.56% and 2.04% respectively.
World Bank-funded metering program threatens local producers and defies CBN guidelines – MAN
Nigerian Manufacturers have warned that the World Bank-funded phase II of the National Mass Metering Programme(NMMP) displaces local Nigerian meter producers and also negates CBN guidelines.
This was disclosed by the Director General of the Manufacturers Association of Nigeria on Thursday in Lagos, in reaction to the government’s implementation process of the NMMP Phase II World Bank-funded supply of 1.2 million smart energy meters.
Ajayi-Kadir noted that the advertised financial requirements and technical specifications by the Transmission Company of Nigeria (TCN) appeared skewed against local manufacturers.
The MAN chief also noted that requirements are stringent and negate the Central Bank of Nigeria (CBN) guidelines for the implementation of NMMP and portend grave danger for the power sector.
He urged against a repeat of the ugly scenario in 2012 where local manufacturers were sidelined in the meter supply and the nation was greeted with the supply of substandard meters supplied by foreign companies, he said:
“In keeping with the Federal Government’s backward integration policy and the advent of the NMMP intervention, manufacturers have made huge investments in the expansion of manufacturing capacities and trained highly skilled workforce to meet the demands of the power sector.”
MAN also noted an “intentional denial of the local manufacturers”, citing they were also excluded from phase zero of the National Mass Metering Programme (NMMP), he said:
“The seeming intentional denial of the local manufacturers does not take into cognizance their sterling performance where they deployed and installed 611,231 energy meters across the country between 2019 and 2021.
“They also did the same for one million energy meters across the country under phase zero of the National Mass Metering Programme (NMMP).
“It should be recalled that our members have been denied the opportunity to fully execute the contract for the supply and installation of 4 million energy meters under Phase 1 of the NMMP scheme.“This was due to the unrealistic terms that arbitrarily fixed the contract prices far below the approved regulatory prices of energy meters in the country.
MAN warned that the contractual term of payment after the supply and installation of the meters have not been adhered to, thereby jeopardizing the financial capabilities of its members that participated in the scheme.
They added that the subsisting Executive Order 003 on the patronage of made-in-Nigeria products which gives priority consideration to local businesses should be adhered to, saying:
“As a nation that aspires to make progress and improve the well-being of its people, it is unconscionable that we continuously make the same mistakes.
“We counsel that the excellent constitutional amendment that enlisted power generation and transmission in the concurrent list, should be complemented with the liberalisation of the distribution end of the value chain.
It reported last week that Electricity Meter companies in Nigeria under the Association of Meter Manufacturers and Assemblers Nigeria (AMMON) urged President Bola Tinubu to ban foreign companies from bidding for the manufacturing of electricity meters organized by the Transmission Company of Nigeria (TCN).
They also urged FG not to use the World Bank’s $155 million for the importation of electricity meters into the country.
AMMON said it wants foreign bids banned due to the nature of the bidding process which they say highly favors foreign companies.
