By Olabode Jegede
Investors in the equities market of the Nigerian Stock Exchange (NSE) gained N45 billion in one week trading amid pressure building to presidential and national assembly elections.
The equities market capitalization, a parameter used in measuring the value of all companies traded, from N11.758 trillion when it opened for trading previous week as against N12.20 trillion it closed.
Also, the NSE All-Share Index (ASI) closed higher at 32,715.20 basis points from a low 31,529.92 basis points it opened for trading last week, an increase of 1,185.28 basis points or 3.8 per cent following investors keen interest in low capitalized stocks listed on NSE.
Thus, the Month-till-Date and Year-till-Date gains increased to 7.06per cent and 4.09per cent respectively.
On sectoral breakdown, all the five sectors recorded gains week-on-week as Oil & Gas appreciated by six per cent, Consumer goods Index added 5.4 per cent, Banking Index gained 1.6 per cent, Industrial goods Index appreciated by 1.6 per cent, and Insurance Index adding 1.5 per cent.
According to NSE weekly market report, the total turnover of 2.83 billion shares worth N28.14 billion in 28,733 deals were traded this week by investors on the floor of the Nigerian exchange in contrast to a total of 1.89 billion shares valued at N26.88 billion that exchanged hands last week in 19,210 deals.
The Exchange revealed that 56 equities appreciated in price during the week, higher than 42 equities in the preceding week. 13 equities depreciated in price, lower than 22 equities in the preceding week, while 101 equities remained unchanged, lower than 106 equities recorded in the preceding week.
On the advancers’ league, Wema Bank Plc recorded the highest gain after rising from N0.74 to N0.95, an up by N 0.21 or 33.03 per cent. Livestock, followed suit rising from N0.50 to N0.66, an increase of N0.16 or 32 per cent, while Unilever advanced from N37 to N47, an increase of N10 or 27.03 per cent.
The share price of Dangote Flour appreciated to N1.5 or 21.90 per cent from N6.85 to N8.35, while Unity Bank gained N 0.17 or 17.53 per cent from N0.97 to N1.14.
On the other hand, CI Leasing recorded the highest decline from N9.04 to N7.33, down by N1.71 or 18.92 per cent. Medview Airline Plc followed after decreasing from N1.85 to N1.70 losing N0.15 or 8.11 per cent while Total Plc lost N15.9 or 7.20per cent from N220.9 to N205.
The share price of UAC-Prop declined from N1.80 to N1.68, losing N0.12 or 6.67 per cent as FO also dropped by N1.70 or 5.72 per cent from N29.70 to N28.
Analysts at Cordros Capital noted that, “With election risk now out of the picture, as we anticipate a peaceful exercise, together with the still supportive macroeconomic picture, we guide investors to cherry pick fundamentally sound stocks in a bid to ride the wave of the market rally, post-polls.”
Consequently, analysts at APT securities said, “The election rally seems to have an ample effect on the stock market against all odds. We can only be optimistic going forward as today marks the end of election rally.”