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NGX All-Share Index Sheds 0.36% as Market Extends Bearish Trend


By Goddy Egene
The stock market opened for the week extending the negative performance of last week with the Nigerian Exchange (NGX) Limited All-Share Index (ASI) declining by 0.36 per cent to close at 37,857.89 yesterday. Similarly, the market capitalisation shed N70.9 billion to close lower at N19.723 trillion.
The market had went into the bears’ territory last week due to profit-taking after a positive performance the previous week. Specifically, the market dipped by 0.57 per cent. That bear run was extended to yesterday following sustained profit-taking in MTN Nigeria Plc, Zenith Bank Plc and BUA Cement Plc.
Although only 13 stocks depreciated compared with 16 price gainers, losses by the bellwethers propelled the negative close. Market operators had said the market would display a mixed trend, on profit-taking and repositioning for half-year earnings reporting season kicking off any time soon. ....

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Hedging against Inflation


Goddy Egene writes that as inflation rate remains above 18 per cent, the stock market still provides investors opportunity to earn positive returns on their investments
When investors stake their funds, their expectation is to reap positive returns on investments. That means a return that is above inflation rate. And considering the fact that inflation rate stood at 18.12 per cent as at the end of April 2021, investors must invest in securities that would produce a return of above 18.12 per cent.
Although it is difficult to come across investment that can give yields above inflation rate, the equities market offers investors opportunity to enjoy positive returns. However, for investors to earn such positive returns in the equities market, they must seek the advice of professionals. This is so because just as the market is capable of fetching positive returns, investors could also lose their investments if not well guided by professionals. ....

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Reps seek FG's support for cocoa processing in Nigeria


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Members of the House of Representatives on Tuesday underscored the need for Federal Government to support cocoa processing company, Ede and other cocoa processing firms in Nigeria.
The lawmakers also urged the present administration to establish a National Cocoa Processing Intervention Fund and resuscitate the Nigerian Cocoa Processing Industry.
The resolution was passed sequel to the adoption of a motion sponsored by Hon. Bamidele Salam, who called for the House intervention with the view to address myriad of challenges facing the operators.
In his lead debate, Hon. Salam observed that the Cocoa Processing Company, Ede, Osun State was established in 1982 to process and refine cocoa from harvest to finished products of a high standard for exportation. ....

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Trading Value Soars 292%, Investors Stake N42bn on Shares


The stock market attracted N42.142 billion invested in 1.602 billion shares in 19,507 deals last week.
This was an increase of 292 per cent compared with the N10.759 billion staked on 1.263 billion shares in 19,975 deals the previous week. Equally, the NGX All-Share Index rose 1.27 per cent to close higher at 39,301.82.
The rebound in the market could be linked to investors’ renewed appetite for shares boosted by the release of companies’ first quarter (Q1) results.
According to analysts, the floor of the NGX would be flooded with more results this week.
“We expect NGX’s floor to be flooded with results as the Q1-2021 earnings season commences in full swing. We believe investors will be looking for clues on how corporate earnings will evolve in 2021, given the expected improvement in macroeconomic conditions. ....

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