Story by Olabode Jegede
Price appreciation in listed Banks and Consumer goods shares on the Nigerian Stock Exchange (NSE) pushed the All-Share Index (ASI) by 2.92 per cent last week amid weak investors’ trading.
The NSE ASI gained 893.56 basis points, representing a growth of 2.92 per cent to close at 31,529.92 basis points from 30,636.36 basis points reported in previous week.
Precisely, the Banking Index recorded highest gained last week and thanks to share price appreciation in Guaranty Trust Bank Plc, Sterling Bank Plc, Fidelity Bank Plc, FCMB Group Plc, and Diamond Bank Plc.
Gain in the above banks share lifted the Banking index by 8.10 per cent or 32.13 basis points to 428.72 basis points from 396.59 basis points the equities market opened for trading last week.
However, all other indices finished higher with the exception of the NSE Industrial Goods Index that depreciated by 0.66 per cent.
Consequently, Market statistics obtained by the Nigerian NewsDirect showed that the market capitalisation, which opened trading on February 4 at N11.424 trillion, gained N334 billion or 2.92 per cent to close trading on February 8 at N11.758 trillion.
Meanwhile, the total volume of transactions traded increased to 1.894 billion shares, worth N26.884 billion, and traded in 19,213 deals by investors on the floor of the Exchange in contrast to a total of 1.452 billion shares valued at N14.788 billion, and traded in 19,318 deals in the previous week.
Regency Assurance Plc topped the gainers’ chart after rising from N0.21 to N0.25, an up by N0.04 or 19.05 per cent. Dangote Flour Mills Plc followed suit rising from N5.80 to N6.85, an increase of N1.05 or 18.10 per cent, while Guaranty Trust Bank Plc. advanced from N33.70 to N38.65, an increase of N4.95 or 14.69 per cent. The share price of Mcnichols Plc appreciated to 5 kobo or 13.89 per cent from N0.36 to N0.41, while Aiico Insurance Plc gained N0.08 or 12.50 per cent from N0.64 to N0.72.
On the other hand, Royal Exchange Plc led the losers’ chart, reducing by 13.33 per cent to close at N0.26 per share. Guinea Insurance Plc followed with a loss of 13.04 per cent to close at N0.20, while Champion Breweries Plc. was down by 10 per cent to close at N1.62 per share. Interlinked Technologies Plc shed 10 per cent to close at N3.24 as E-Tranzact International Plc declined by 9.85 per cent to close at N2.93 per share.
The Financial Services Industry (measured by volume) led the activity chart with 1.498 billion shares valued at N19.724 billion traded in 12,581 deals; thus contributing 79.10 per cent and 73.37 per cent to the total equity turnover volume and value respectively.
The Consumer Goods Industry followed with 144.426 million shares worth N4.552 billion in 2,484 deals. The third place was Conglomerates Industry with a turnover of 143.320 million shares worth N220.050 million in 998 deals.
Trading in the Top Three Equities namely, United Bank for Africa Plc, Zenith Bank Plc and FBN Holdings Plc (measured by volume) accounted for 791.318 million shares worth N10.817 billion in 5,046 deals, contributing 41.79 per cent and 40.23 per cent to the total equity turnover volume and value respectively.
Analysts at Cordros Capital said, “Our outlook for equities in the short-to-medium term remains conservative ahead of the upcoming general elections. “However, we expect the stable macroeconomic fundamentals to drive recovery in the long-term.”