WEEK-LONG BULLISH TREND IN THE NIGERIAN STOCK MARKET
The Nigerian stock market posted gains at the end of the trading session on Friday, making it the fifth day of a bullish run. The All-Share Index increased by +0.43% to close at 39,301.82 from 39,131.80 index points.
Market value at the Nigeria Stock Exchange currently stands at NGN 20.57Tr. Its Year-to-Date (YTD) returns currently stands at -2.41%. The market closed in profit as TRIPPLEG led 31 Gainers, and UNIONDICON topped the chart of 11 Losers with a strong bullish movement by the NSE ASI.
The top gainers include:
1. TRIPPLEG up +9.23% to close at N0.71
2. SOVRENINS up +8.70% to close at N0.25
3. STANBIC up +8.70% to close at N50.00
4. ACADEMY up +8.11% to close at N0.40
5. REGALINS up +8.00% to close at N0.27
The top losers include:
1. UNIONDICON down -9.59% to close at N9.90
2. LINKASSURE down -4.76% to close at N0.80
3. CORNERST down -3.70% to close at N0.52
4. NASCON down -2.63% to close at N14.80
5. FTNCOCOA down -2.50% to close at N0.39
The NSE ASI exhibited bullish dominance all through last week and is envisaged to do same in the week ahead. In light of this fact, the following stocks should be on investors’ watchlist: PZ, Guaranty, OANDO, STANBIC, HONYFLOUR, GUINNESS, and Flour mills.
However, cautious investment is advised amidst growing/ongoing economic uncertainties.
NAIRA MAINTAINS DOMINANCE AROUND THE N400/$1 THRESHOLD
The naira remained stable against the US dollar at the Investors and Exporters window on Friday to close at N410/$1, the same as recorded on Thursday. The opening indicative rate closed at N410.00 to a dollar on Friday, 23rd April 2021. This is a 25 kobo appreciation, compared to N410.25/$1 recorded on Thursday.
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Also, an exchange rate of N436.40 to a dollar was the highest rate recorded during intra-day trading before it settled at N410/$1. It also sold for as low as N394/$1 during intra-day trading. Forex daily turnover at the Investor and Exporters (I&E) window closed at 32.01% on Friday, 23rd April, 2021.
More of the same is expected as the Naira is anticipated to continue its trend around the N400/$1 threshold in the coming week.
BITCOIN SURGES AMID SELLING PRESSURES
Following the intense selling pressures of the previous week, the world’s most priced digital asset plunged 3.68% on Friday morning to trade at $49,710.
It dipped below $50k, as of 4:20 am on Friday, 23rd April 2021 as sell-offs by investors put pressure on the most sought-after cryptocurrency in the world. Bitcoin has experienced a massive drop over the past few weeks, having enjoyed a significant rise earlier in the year.
According to a report, the decline signals an imminent reversal from its initial gains witnessed in 2020 and earlier in 2021. Historically, Bitcoin has not stayed down for very long, and it has been known to be quite volatile and swing quickly and unexpectedly. Hence, it is hoped that the digital instrument will spring back up, in coming trading sessions in the week ahead.
CRUDE PRICES RECORD POSITIVE GROWTH
The price of crude oil recorded positive growth in the early hours of Friday, 23rd April 2021.
Brent Crude increased by 0.32% to trade at $65.61, indicating a growth of $0.21, compared to $65.83 recorded at the end of trade on Thursday. WTI Crude increased by 0.5% to trade at $65.61, while Natural Gas currently sells for an average of $2.752.
Meanwhile, Libya’s crude oil production has fallen significantly after a company said it would have to reduce output by 100,000 barrels per day.
The week ahead seems promising as the OPEC+ group is scheduled to meet on Wednesday, 28 April 2021, to consider further tweaks to the supply pact.
EXTERNAL RESERVE POSITION
Nigeria’s external reserve position reduced by 0.09% on Wednesday 21st April 2021 to stand at $35.15 billion. Data obtained from the Central Bank of Nigeria (CBN), revealed that Nigeria’s external reserve dipped from $35.218 billion recorded on 20th April 2021 to $35.15 billion on Wednesday, April 21, 2021.
This represents the third consecutive decline recorded in the week, having had 19 successive growths in Nigeria’s external reserve. The growth recorded was attributed to increasing global oil prices and the movement by the apex bank to improve dollar inflow into the county.
External reserve anticipations in the coming week would be largely dependent on the results that would emanate from the upcoming OPEC+ meeting on matters surrounding the supply pact on Wednesday, 28 April, 2021.
ROAD REHABILITATION/RECONSTRUCTION INTENSIFIES AS IKORODU ROAD INBOUND ANTHONY CLOSES FOR 4 WEEKS
The Lagos State Government about five days ago announced the closure of Opebi Road, Ikeja, for two weekends, as part of its road reconstruction/rehabilitation efforts in the state.
These efforts have however intensified as the Lagos State Government has also announced the diversion of traffic from the Main Carriageway inbound Anthony on Ikorodu Road from Monday, May 3, 2021, for a period of 4 weeks.
The temporary closure of that road is necessary to address the worsening state of the access road at the Independence Tunnel, Maryland.
This disclosure was contained in a statement signed by the Lagos State Commissioner for Transportation, Frederic Oladeinde, on Saturday, April 24, 2021. The diversion is part of the ongoing reconstruction effort on Ikorodu Road to rid the state of bad roads and ease the traffic problem.
Oladeinde explained that the road needs to be fixed urgently to prevent further deterioration of the section, especially with the expected rainfall in the coming season, adding that the repairs will minimise the congestion frequently experienced by motorists along the corridor.
The Commissioner advised motorists coming from Ibadan-Lagos Expressway to go through Oworonshoki to connect Gbagada and descend the ramp at Anthony to access Ikorodu Road during the repair works.
He also disclosed that the recently improved Maryland Junction will also be opened temporarily during the construction period to accommodate traffic coming from the Ojota axis and Ikorodu, stressing that a temporary traffic light will be installed to manage the influx of vehicles that will ply the flyover.
He, however, revealed that a trial run of the traffic management system would commence on Tuesday, 27th April 2021, to test the highlighted traffic diversion plans ahead of the set date and make necessary adjustments where necessary. He appealed to motorists plying the corridor to endure the likely inconvenience that may be occasioned during the period, as the project is aimed at finding a lasting solution to traffic congestion in the axis in line with the efficient traffic management and transportation policy of the State Government.
