Investors Experience a N2.05 Trillion Loss Over Profit-Taking in Nigerian Stock Market Investors in the Nigerian stock market recorded a significant loss of N2.05 trillion over a span of three days, driven by persistent profit-taking activities on the Nigerian Exchange (NGX). As of Wednesday, the total market capitalisation—representing the combined value of equities listed on the NGX—dropped to N64.256 trillion compared to N64.302 trillion recorded on Monday. Decline in Key Market Indicators Similarly, the NGX All Share Index (ASI), another critical measure of market performance, fell by 3.2%, closing on Wednesday at 102,095.95 basis points, down from 105,451.06 basis points recorded on Monday. Midweek Trading Shows Further Decline On Wednesday, investors lost N931 billion in market capitalisation as it fell to N62.256 trillion, a decline from N63.187 trillion recorded the previous day. Additionally, the ASI dropped by 1.5%, settling at 102,095.95 points, down from 103,622.09 points on Tuesday. Key Factors Contributing to the Decline The significant sell-off in Dangote Cement, which saw its value plummet by 10%, heavily impacted the market. This sharp decline dragged the Year-to-Date (YTD) return to -0.8%, reflecting a less favorable performance for the year so far. Trading Activities and Sectoral Performance Summary The recent losses in the Nigerian stock market highlight the impact of profit-taking activities and sector-specific pressures, such as the decline in Dangote Cement. While some sectors showed resilience, the overall market sentiment remains cautious. Investors are advised to monitor market trends and adjust their strategies accordingly. Meta Description:Discover why investors lost N2.05 trillion in three days in the Nigerian stock market amid profit-taking activities. Explore the latest NGX market trends, sectoral performance, and key trading data. Let me know if you’d like to tweak anything further! READ ALSO: Follow the LMSINT MEDIA channel on WhatsApp: Join Our WhatsApp Group Hear: Chat on WhatsApp Join our Telegram Chanel.
The Nigerian Exchange Ltd. (NGX) experienced a strong rebound on Wednesday, recording a substantial gain of ₦507 billion after the previous day’s losses. This positive market shift bolstered investors’ portfolios significantly. The market capitalisation, which opened at ₦63.051 trillion, climbed by ₦507 billion or 0.80%, closing the day at ₦63.559 trillion. Simultaneously, the All-Share Index (ASI) advanced by 0.80% or 832 points, settling at 104,230.73 compared to the 103,398.82 reported on Tuesday. As a result, the Year-To-Date (YTD) return marginally improved to 0.127%. Key Drivers of the Market Surge The bullish momentum was fueled by increased buying interest in major stocks, including: Mixed Market Breadth Despite Gains Despite the notable gains, market breadth remained slightly negative, with 28 stocks declining while 27 advanced. Top Losers: Top Gainers: Trading Activity Decline Market activity slowed compared to the previous session, with a 31.99% drop in turnover. A total of 756.42 million shares valued at ₦24.69 billion were exchanged in 13,551 deals, compared to 1.11 billion shares worth ₦14.64 billion traded in 16,617 deals during the previous session. Top Trade Activity: READ ALSO: Follow the LMSINT MEDIA channel on WhatsApp: Join Our WhatsApp Group Hear: Chat on WhatsApp Join our Telegram Chanel.
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Foreign Portfolio Investments (FPIs) into the Nigerian stock market saw a remarkable surge of 180.95% between January and October 2024, reaching N344.30 billion compared to N122.55 billion in the same period in 2023. Key Drivers of the FPI Growth Investment analysts attribute this significant growth to the Central Bank of Nigeria’s (CBN) monetary policies, which have increased interest earnings on portfolio investments. The CBN’s consistent hikes in the monetary policy rate have improved investor confidence, especially among foreign participants. However, data from the Nigerian Exchange Limited (NGX) also revealed that foreign outflows rose by 136.95%, from N168.83 billion in 2023 to N400.04 billion in 2024. Overview of Transactions Year-to-Date (YtD) The total foreign transactions for 2024, Year-to-Date, amounted to N744.34 billion, a 155.5% increase from N291.38 billion in 2023. Meanwhile, domestic investors maintained a strong presence, contributing N3.727 trillion, accounting for 83.35% of the N4.470 trillion total transactions recorded by the NGX. Monthly Performance On a month-by-month basis, total transactions rose marginally by 1.97% from N493.01 billion in September 2024 to N502.73 billion in October 2024. Compared to October 2023, where transactions stood at N220.94 billion, this represents a massive growth of 127.54%. Notably, in October 2024, domestic investors outperformed foreign investors, accounting for 82% of the total transaction value. Expert Insights Victor Chiazor, an analyst at Fidelity Securities Limited, commented that the surge in FPI inflows reflects improved investor confidence driven by Nigeria’s fiscal and monetary reforms. He noted, “The CBN’s consistent stance on inflation and its monetary tightening measures have resonated positively with foreign investors.” David Adonri, Vice Chairman at Highcap Securities, added, “The inflow of FPIs positively impacts the foreign exchange market, as the demand-supply dynamics influence FX rates. This also bolsters foreign reserves, signaling greater confidence in Nigeria’s economy.” Ambrose Omordion, COO of InvestData Consulting, remarked that the improved outlook among foreign investors was driven by the stabilizing Naira and the CBN’s anti-inflation measures. He stated, “While higher interest rates typically weigh on stocks, the CBN’s tough stance on inflation and its focus on currency stability have created an attractive environment for foreign investors.” READ ALSO: Follow the LMSINT MEDIA channel on WhatsApp: Join Our WhatsApp Group Hear: Chat on WhatsApp Join our Telegram Chanel.
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United Bank for Africa (UBA) Plc has unveiled plans to leverage the proceeds of its ₦239.4 billion rights issue to expand digital capabilities and grow its business footprint across Africa and beyond. This strategic initiative aims to further cement UBA’s position as a top-tier pan-African banking leader with over seven decades of exceptional performance. UBA is offering 6.84 billion ordinary shares of 50 kobo each at ₦35 per share to existing shareholders. This offer is allocated on a 1:5 basis, meaning one new ordinary share for every five shares held as of November 5, 2024. The rights issue is scheduled to close on December 24, 2024. Enhancing Shareholder Value Tony Elumelu, the Group Chairman of UBA Plc, emphasized that the primary objective of the rights issue is to strengthen the bank’s pan-African dominance while maintaining its legacy as a highly rewarding institution for shareholders. He reassured shareholders that the bank remains committed to delivering consistent and enhanced returns. “This rights issue will help ensure our shareholders continue to reap undiluted benefits from a stronger, more innovative, and resilient financial institution,” Elumelu stated. UBA has consistently outperformed market expectations, delivering a remarkable 375% capital gain to investors over the past five years. This far exceeds the average performance of the Nigerian stock market and the financial services sector. Additionally, UBA boasts one of the highest dividend payouts, with an interim dividend of ₦2 per share, reinforcing its reputation as a shareholder-friendly institution. Driving Growth and Innovation Proceeds from the rights issue will be used to drive organic growth, enhance international operations, and support expansion into new markets. Notably, UBA recently signed an agreement to commence full banking operations in France, a move that underscores its global ambitions. Retail shareholders have expressed confidence in the initiative, pointing to UBA’s consistent track record of strong financial performance and investor-focused policies. With the planned investments in digital technology and expanded operations, UBA is poised to strengthen its competitive edge and deliver even greater value to stakeholders. READ ALSO: Follow the LMSINT MEDIA channel on WhatsApp: Join Our WhatsApp Group Hear: Chat on WhatsApp Join our Telegram Chanel.
