Investors in equities market gain N157bn in one week


By Olabode Jegede

Investors in the equities market of the Nigerian Stock Exchange (NSE) recorded a gain of N157 billion in one week trading to close on a positive note.

The NSE All-Share Index closed higher at 31,426.63 basis points from a low 31,005.17 basis points it opened for trading last week, an increase of 421.46 basis points or 1.36 per cent.

The value of listed stocks (market capitalization) increased by N157 billion or 1.36 per cent from N11.562 trillion it opened for trading to N11.719 trillion.

On sectoral breakdown, all sector indices closed positive save for the NSE ASeM, NSE Consumer Goods, NSE Oil/Gas, NSE Lotus II and NSE Industrial Goods Indices that depreciated by 0.17 per cent, 0.41 per cent, 1.32 per cent, 0.60 per cent, and 2.02 per cent respectively.

According to NSE weekly market report, the total turnover of 1.807 billion shares worth N17.232 billion in 18,332 deals were traded this week by investors on the floor of the Exchange in contrast to a total of 1.270 billion shares valued at N13.463 billion that exchanged hands last week in 16,476 deals.

The Exchange revealed that 40 equities appreciated in price during the week, higher than 38 in the previous week. 25 equities depreciated in price, lower than 29 of the previous week, while 103 equities remained unchanged higher than 102 equities recorded in the preceding week.

Resort Savings & Loans Plc recorded the highest decline from N0.26 to N0.20, down by N0.06 or 23.08 per cent. Sovereign Trust Insurance Plc followed after decreasing from N0.26 to N0.21 losing N0.05 or 19.23 per cent while Medview Airline Plc lost 20 kobo or 9.76 per cent from N2.05 to N1.85. The share price of Mcnichols Plc declined from 43 kobo to 39 kobo, losing 4 kobo or 9.30 per cent as Union Bank Nig. Plc. also dropped by 60 kobo or 8.89 per cent from N6.75 to N6.15.

On the advancers’ league, Fidelity Bank Plc recorded the highest gain after rising from N2.01 to N2.50, an up by N0.49 or 24.38 per cent. Caverton Offshore Support Grp Plc followed suit rising from N1.90 to N2.33, an increase of N0.43 or 22.63 per cent, while FCMB Group Plc. advanced from N1.76 to N2.15, an increase of 39 kobo or 22.16 per cent. The share price of Access Bank Plc appreciated to 90 kobo or 16.07 per cent from N5.60 to N6.50, while Royal Exchange Plc. gained N0.04 or 14.81 per cent from N0.27 to N0.31.

Further breakdown of the trading showed that, “The Financial Services Industry (measured by volume) led the activity chart with 1.625 billion shares valued at N14.696 billion traded in 11,778 deals; thus contributing 89.93 per cent and 85.28 per cent to the total equity turnover volume and value respectively.

“The Conglomerates Industry followed with 83.560 million shares worth N138.309 million in 951 deals. The third place was Consumer Goods Industry with a turnover of 36.251 million shares worth N1.002 billion in 2,224 deals.

“Trading in the Top Three Equities namely, Diamond Bank Plc, Access Bank Plc and Guaranty Trust Bank Plc (measured by volume) accounted for 871.524 million shares worth N8.488 billion in 3,305 deals, contributing 48.23 per cent and 49.25 per cent to the total equity turnover volume and value respectively.”

Also traded during the week were a total of 34,341 units of Exchange Traded Products (ETPs) valued at N440,166.37 executed in 7 deals compared with a total of 55 units valued at N5,610.00 that was transacted last week in 2 deals.

A total of 3,498 units of Federal Government Bonds valued at N3.131 million were traded this week in 20 deals compared with a total of 3,573 units valued at N3.764 million transacted last week in 24 deals.

Analyst at Cordros Capital stated that, “In spite of this week’s rally, our view continues to favour cautious trading pattern in the equities market amidst brewing political jitters ahead 2019 elections, and the absence of a positive market trigger.

“However, we expect positive macroeconomic fundamentals to drive recovery in the long term.”


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