SEPT 18, 2018: CASE STUDY PRICING AT STOCK MARKETS

The 3 stock markets analysed so far dsily by Henates on Tuesday September 18, 2018 price making or discovery that could be good subjects for indepth study.

NIGERIAN STOCK EXCHANGE

 At the Nigerian Stock Exchange, the study case revolves around Nestlé Nigeria as it rose N30.5 or 12.26%  per share to help drive the All share index up second time in more than a week.

The ASI rose by 0.56% to 32381 after starting the week on Monday 0.39% down to dampen hopes that Friday's down slide punctuation could hold for a while.

The case Nestlé offers stems from some drastic up and down it had gone through for a little above one week now.

It started with a N145 per share dive on September 10 which was followed by a strong N130 per share rally the day. September 11. Then it went down daily from then till Monday shedding as much as N81 per share on Thursday last week, N28 more on Friday before going down N20 per share this Monday.

That was before the Tuesday rally once again, which should make one wonder if the market is unsure of which way the highest equity in the market should head. However, since September 10, it has lost N119.5 per share.

It was not the only major price gainer on Tuesday though. Forte Oil also rose by N1 per share while recording 91 deals for 1.37m shares worth N27.34m.

Leading the price drops was Nigerian Breweries down N2 or 2.17% as 99 deals were struck for 2.18m shares worth N199.35m.

Trade improved further on Tuesday with Sterling Bank emerging too as a case study in ups and downs of investors interest in the market.

Traded volume rose to 269.8m shares from 160.15m previously; traded value closed at N2.65bn from N2.11bn but number of deals almost doubled to 4705 from 2935.

The number of deals exceptional leap was as Sterling Bank closed back to form in terms of investors interest with leading 1318 deals struck for 11.67m shares worth N16.923m without a price change.

Access Bank paced volume with 84.94m shares offloaded in 124 deals for leading N 679.76m.

NAIROBI SECURITIES EXCHANGE

At the Nairobi stock market, on Tuesday September 18, 2018 case study pricing  was offered by Jubilee Holdings and Kenya Orchards as the All share index rose by 0.18% to 157.75.

Jubilee closed the day up by Ksh 33 per share and this turned out to interesting because only on Monday, it lost the same amount to pace drops.

The gain occurred as Jubilee found and closed at Ksh 484 per share compared to Ksh 451 it dropped sharply to on Monday.

And more interesting it had happened before the same way. On September 11, Jubilee Holdings lost Ksh 15 per share and then promptly regained the exact amount the next day September 12.

Coincidence or a balancing act?

In the case of Kenya Orchards, it is the margin of price change that seems to head for the market's record book.

Like Jubilee, K Orchards found and closed at Ksh 14 per share says the official price list realesed but the point remains that this represented a very sharp decline by Ksh 68 per share on Ksh 82 per share quoted for months now.

For example,by April 3, Kenya Orchards was quoted at same Ksh 82 per share with year high of Ksh 97 and low of Ksh 90 per share.

Trade improved too at Nairobi with volume came to 24.3m shares from 17.35m previously; traded value closed at Ksh 607.35bn compared to Ksh 321.09bn while number of deals hit modern high of 1376 from 1207 on Monday.

Safaricom witnessed deals for 7.266m shares worth Ksh 195m at between Ksh 26.50 and 27.25 per share.

The banking sector, however, accounted for 56.66% of market traded value that is Ksh 344m out of the market's total traded value.

Barclay's Bank, up Ksh 0.05 per share recorded deals for 4.586m shares worth Ksh 46.7m; Equity Group's 3.511m shares were exchanged for Ksh 151m at between Ksh 42.75 and 43.50 per share and KCB Group recorded deals for 3.224m units worth Ksh 132m.

The bond market eased a little as traded value closed at Ksh 1.24bn in 42 deals compared to Ksh 2.60bn in 48 deals.

GHANA STOCK EXCHANGE

Compared the Nigerian and Nairobi stock markets, the Ghana Stock Exchange is young and small but can not be said to make many scratch their heads yet.

But one thing is obvious: The composite index is open to fluctuations even where there is only one price and with MTN Ghana now quoted, impact of its price changes may command attention.

On Tuesday September 18 2018, SIC Insurance recorded the only price change tecorded. It closed down GHs 0.01 per share as deals for 2600 units were struck at GHs 0.18 per share, down GHs 0.02 per on Monday's GHs 0.20 per share but recovered to end the day at GHs 0.19 per share.

As a consequence, the composite index eased to 2901.63 from Monday's 2901.83.

Trade was lower as traded volume dropped to 944,363 compared to 1.633m on Monday.

MTN Ghana accounted for the lion share with deals for 861,000 shares while closing firm at GHs 0.80 per share. Bid price declined though to GHs 0.77 per share

Just like for Monday, Standard Chartered Bank witnessed deals for 1600 units at GHs 5.35 per share then lost the gain to close at firm GHs 5.34 per share. However bid price dropped further to GHs 4.7 per share.

Almost the same way, Aluworks ltd and Ecobank Transnational recorded deals without price changes but offer price rose marginally at close of the day.

Aluworks closing offer was GHs0.10 per share while deals were struck at GHs 0.09 and ETI offer closed at GHs 0.23 per share up from the firm GHs 0.21 pee share at which 5,700 shares changed hands.

In unmatched closing bid interest was just one while unmatched offers were 12 and mismatched bid and offer prices affected 12 others.








Comments

Post a Comment

Popular posts from this blog

2018: TWO BLOWS TO UNITED CAPITAL PLC.

When a child who in a previous examination scored 80%, comes home with a new report in which he now scores 67.2%, the parents have a right to sit him down and ask how come. So it must be between Nigeria's United Capital Plc and its discerning shareholders since the release of the company's 2018 audited figures. In 2018, all said and done, says the annual report, United Capital ended with 67.2 % profit margin compared to 80.2% in 2017. How come? What comes across from the figures was that the company received 2 blows to the jugular in 2018: Sharp drops in Investment income and fair value gain. Investment income dropped by 10.8% to N4422.8m from N4965.2m while fair value on financial assets plunged by 79.7% to N6.173m from 2017's N30.387m. In view of both drops, the group's gross earnings grew by only 33.9% to N9259.4m despite strong growths in net trading income, and net operating income leap to N757.5m from N143.5m  Other income streams ended with single digit increase....
Read more

KENYA AUCTIONS Ksh 13.84bn Treasury Bonds.

The Central Bank of Kenya (CBK) will from Tuesday December 18 to 27th 2018_ auction Ksh 13.84bn worth of fixed income Treasury Bonds with issue date December 17, 2018. According to official statement from the Director of Financial Markets Irene Njiru on Monday December 17, auction will continue throughout the stated period or close once the target money to be raised is reached, whichever comes first. Bid value will be paid for at most by 2pm December 31, 2018 while auction results will be made public on December 28, 2018 after the scheduled closing date. The bonds are being issued at 12.502% fixed interest at an adjusted average price of Ksh 100.468 for Ksh 100 bond. However, price payable after auction results publication will be average of successful bid prices based and allotment will be on first come first served basis. Meanwhile, the monetary operations and debt management department has released the interest payment schedule for 13 Treasury Bonds due January and February 2019. Th...
Read more

NAIROBI SE's HIGH PRICED EQUITIES.

In the wake of Nigeria's high priced quoted companies posted in this blog a while ago, Henates took a look to at Nairobi Securities Exchange June 23 official list to identify its high priced equities and the outcome was interesting too. Of the 66 companies quoted on the market by June 23, 15 or 22.7% were valued averagely at above 30 times nominal value. A word of caution though: There are two clear differences between the Nigerian stock market list and that of Nairobi: In the Nigerian one most listed companies have par or nominal value of N0.50 as is there is an implied agreement on this. On the other hand, at Nairobi most of the equities do not share common par value, they differ greatly. Then another thing, Nigerian equities are not valued below par, Nairobi ones can and many are so valued. Of the top 15 high priced equities at the Nairobi market, Safaricom topped with because by June 23, at 23.25 Ksh average price, it was valued 465 times its nominal value of just 0.0...
Read more