Story by Olabode Jegede
Investors in the equities market of the Nigerian Stock Exchange (NSE) recorded a gain of N89 billion in first week trading of 2019.
The federal government declared Tuesday January 1, 2019 public holiday, to mark the New Year celebrations.
Specifically, at the end of the three-day trading, the NSE All Share Index dropped by 1.3 per cent to close at 30,638.90 basis points from 31,037.72 basis points, while market capitalisation closed at N11.426 trillion, an increase of one per cent from N11.337 trillion the market opened for trading.
All other indices finished lower as the Industrial index led the pack by 3.9 per cent, followed closely by the Banking index 2.7 per cent, Consumer Goods index one per cent, and Insurance index one per cent indices respectively, with the exception of the NSE Oil and Gas Index that rose by 2.91 per cent.
According to NSE, “a total turnover of 1.647 billion shares worth N8.413 billion in 14,773 deals were traded this week by investors on the floor of the Exchange in contrast to a total of 3.129 billion shares valued at N14.348 billion that exchanged hands last week in 10,394 deals.
“The Financial Services Industry (measured by volume) led the activity chart with 1.154 billion shares valued at N5.742 billion traded in 9,174 deals; thus contributing 70.08 per cent and 68.25 per cent to the total equity turnover volume and value respectively. The Healthcare Industry followed with 271.277 million shares worth N82.647 million in 219 deals.
“The third place was Services Industry with a turnover of 91.734 million shares worth N 208.562 million in 232 deals.
“Trading in the Top Three Equities namely, Diamond Bank Plc, Union Diagnostic & Clinical Services Plc and NEM Insurance Plc (measured by volume) accounted for 816.016 million shares worth N1.305 billion in 1,615 deals, contributing 49.54 per cent and 15.51 per cent to the total equity turnover volume and value respectively.”
Also traded during the week were a total of 395 units of Exchange Traded Products (ETPs) valued at N816,344.70 executed in 13 deals compared with a total of 25,500 units valued at N1.782 million that was transacted last week in 15 deals.
A total of 7,209 units of Federal Government Bonds valued at N6.958 million were traded this week in 8 deals compared with a total of 686 units valued at N689,162.04 transacted last week in 3 deals.
The price movement chart showed that only 22 equities appreciated in price during the week, lower than 52 in the previous week. 45 equities depreciated in price, higher than 18 of the previous week, while 97 equities remained unchanged higher than 94 equities recorded in the preceding week.
Furthermore, Custodian Investment Plc led the price gainers by 16.19 per cent to close at N6.10 per share, trailed by Julius Berger Nig. Plc that rose by 15.67 per cent to close last week at N23.25 per share while Vitafoam appreciated by 12.50 per cent to close at N4.50 per share for trading last Friday.
Other top gainers included Niger Insurance Plc. by 9.09 per cent to close at N0.24 per share and Linkage Assurance Plc garnered 9.09 per cent to close N0.72 per share.
Contrarily, FCMB Group Plc led the price losers by 16.49 per cent to close at N1.62 per share, trailed by GLAXOSMITH that dropped by 15.86 per cent to close at N12.20 per share while Access Bank Plc. declined by 14.71 per cent to close by N5.80 per share.
Other top decliners included Stanbic IBTC Holdings Plc by 12.68 per cent to close at N46.50 per share and Dangote Flour Mills Plc dropped 12.41 per cent to close N6.00 per share.
Analysts at Cordros Capital said, “Our view continues to favour cautious trading in the equities market amid 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.”