People & Money

Weekly Investors Update: Nigeria Equities Rise as Covid-19 Keeps Oil Below $40

Below is the Arbiterz Weekly Investors Update for the week ended November 6, 2020.

Stock Market

Investors in the Nigerian Stock Exchange gained as the All-Share Index and Market Capitalization appreciated by 1.56% and 1.59% respectively to close the week at 31,016.17 and ₦16.207 trillion, respectively.

Similarly, all other indices finished higher with the exception of the NSE-Main Board, NSE Insurance, and NSE Oil/Gas which depreciated by 0.62%, 1.32%, and 0.77% respectively while the NSE ASeM Index that closed flat.

Top price gainers

Companies Gain (₦) % Change
Livestock Feeds Plc. 0.25 30.86
Transnational Corporation of Nigeria Plc. 0.14 19.72
Dangote Sugar Refinery Plc. 2.70 19.57
Cap Plc 2.65  13.02
Lasaco Assurance Plc. 0.04 12.50
Coronation Insurance Plc. 0.04  10.00
Portland Paints & Products Nigeria Plc. 0.26  9.59
Regency Assurance Plc. 0.02 9.09
Dangote Cement Plc. 14.50 9.06
Consolidated Hallmark Insurance Plc. 0.03 8.82

Top price decliners

Companies Loss (₦) % Change
International Breweries Plc. -0.87 -11.80
Axamansard Insurance Plc. -0.20 -9.09
Linkage Assurance Plc. -0.04  -8.89
Custodian Investment Plc. -0.50  -8.26 
NEM Insurance Plc. -0.18  -8.07 
Bua Cement Plc. -2.50  -5.49 
Mutual Benefits Assurance Plc. -0.01 -4.76
Julius Berger Nig. Plc. -0.80  -4.48
Union Bank Nig.Plc. -0.25  -4.46 
Union Diagnostic & Clinical Services Plc. -0.01  -3.85

Exchange Rate(s)

  • The Nigerian currency slid against the dollar at the close of this week, trading at ₦383 per dollar, a depreciation from the ₦381 a dollar recorded a week before.
  • The exchange rate in the parallel or black market – where forex is traded unofficially – closed at ₦462/$1, per data from Nairametrics.
  • At the NAFEX window, the rate remained stable to close at ₦386/$1 on Friday, according to FMDQ market data.

Crude oil prices

A surge in coronavirus cases around the globe is causing worries for oil traders and investors, threatening oil demand, and kept prices below $40 this week. International benchmarks West Texas Intermediate and Brent Crude closed Friday at $37.24 and $39.55, respectively.

Covid-19 infections continue to surge in the United States, which surpassed 120,000 cases in a single day on Thursday, and Europe. Nationwide lockdowns in several European countries would only drag down demand further.

Meanwhile, the Nigerian government has said it will restart the search for oil in the Lake Chad Basin after three years of cessation of exploration activities in the region. More details here.

Inflation

Nigeria’s annual inflation rate is currently estimated to be at 13.71% (for September 2020) according to data from the National Bureau of Statistics. It was the highest inflation rate since February of 2018 and was due to widespread increases in prices driven by the border closure, the Covid crisis as well as lower interest rates.

Manufacturing

The Central Bank of Nigeria composite Purchasing Managers’ Index for the manufacturing sector rose to 49.4% in October from 46.9% in September, still below the 50% benchmark, indicating a 6th straight month of contraction in factory activity.

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