Financial Services lead the way in 1st week of trading

The All Share Index rose 1.78% in the first week of trading on the news that the NSE emerged as the number three in terms of return on equity towards the end of 2017. The Index rose from 38,243.19 to 38,923.26, the index rose 680.07 points to close at a weekly high. Sterling Bank Plc led the gainers list with a 0.33kobo appreciation, rising from an opening price of 1.08 to 1.41, which represents a 30.56% appreciation. Custodian & Allied Assurance Plc led the losers list with a 0.09kobo loss dropping from an opening price of 3.89 to 3.80 week to date.

Zenith Bank Plc led the Financial Service stocks with a total traded volume of 96,790,916 million shares traded with a value of 2,611,402,001.04 in 1,246 deals bringing the stock price to a closing of 27.90. The Nigeria Stock exchange All Share Index rose to 38,923.26 points at a value of 13.851 trillion naira. A total of 2.417 billion shares worth 18.813billion naira exchanged in 20,874 deals which is a significant uptick from the previous week of 1.31billion shares valued at 12.635billion exchanged in 9,016 deals.

It appears as though did a 100% appreciation in traded volume, number of deals in which it was done and the value of those shares exchanged. Transnational Corporation, Skye Bank & Diamond Bank Plc led top three (3) equities contributing 49.37% in volume and 8.93% in value respectively.

The acceptance period for Morison Rights Issue closes on the 5th January. The NSE has advised all stockbrokers acting as receiving agents for trading of the rights of the equity to forward their documentation to Cardinal Stone Registrars or GTI Securities with accompanying docket, showing the full data of the subscriber and the accompanying details.

Kelvin Emmanuel

About Kelvin Emmanuel

The Oil producing Angola in the Southern part of Africa faces what Nigeria faced 12months ago; a distortion in its exchange rate with a difference between the official markets and the parallel black markets. One dollar through the official window buys you 166 kwanza, while one dollar through the black market buys you 400 kwanza. Nigeria faced the same challenge 12months ago, when the distortion between the official and black markets was as much as the official markets trading at 306 with the parallel market ranging from 450 through to 510. The Central Bank Governor of Angola, Jose de Massano Junior announced in Luanda “We will stop having a fixed foreign exchange, we will adopt a floating regime of foreign exchange”. Angola faces exactly the same challenges and has been applying the exact same responses to an exchange rate crisis like using its foreign reserves that was sitting at $26bn to defend the currency kwanza, with no success so far, even though the external reserves has dropped to $14bn. Angola relies on Oil receipts for 80% of its government revenue, 90% of its inflow and 50% of its GDP. Angola is a $194bn economy that has been growing at an average of 10% on the back of rising oil prices since 2002 when its 27 year old civil war that started in 1975 ended. The state national oil company Sonangol reports that it produces up to 1.8m barrels of crude oil daily, however the government that until now has being led by the family dynasty Jose Eduardo dos Santos until recently when succession saw power transferred to Joao Lourenco, reports that the oil price rout in 2015/2016 that saw prices drop to as low as $28 per barrel caused ripples across the economic structures of the government, upsetting government revenues, its ability to fund its budget, capital project funding, foreign direct investments into the economy as a result of a currency crisis that was driven by the widening of gap between the official and street window of the kwanza, that until now has been pegged in a fixed exchange rate regime to the US Dollar.