Corporate earnings: Equities market gains N115bn in one week

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By Kayode Tokede

The equities market segment of the Nigerian Stock Exchange (NSE) gained N115billion in one week amid corporate disclosure by listed companies and interim dividend declaration, most especially by banks.

The bourse recorded a higher level of activity last week from both local and foreign investors, as positive earnings releases from Tier-1 banks and bargain buying across some bellwethers drove the market to its largest gain in almost a month.

Specifically, market capitalisation closed last week at N13.358trillion, 1.17 per cent or N115billion increase over N13.203 trillion reported in prior week’s trading on the NSE.

The All-Share Index of NSE appreciated by 1.17 per cent to close the week at 25,605.64 basis points from 25,309.37 basis points it closed last week, lifted by interest in Guaranty Trust bank Plc (+4.5per cent), NB Plc (+8.1 per cent), Stanbic IBTC Holdings Plc(+5.4 per cent), and Zenith Bank Plc (+3.3 per cent).

Consequently, the Year-till-Date (YtD) loss moderated to -4.6per cent. Performance across sectors within was broadly positive with the Oil & Gas (+3.7 per cent), Banking (+2.8 per cent), Insurance (+two per cent), Consumer Goods (+1.5 per cent), and Industrial Goods (+0.4 per cent) indices all recording gains.

A total of 41 equities appreciated in price during the week, higher than 29 in the previous week even as 19 equities depreciated in price, lower than 36 in the previous week, while 103 equities remained unchanged, higher than 98 recorded in the previous week.

A total turnover of 2.209 billion shares worth N10.957 billion in 18,013 deals were traded in the week by investors on the floor of the Exchange, in contrast to a total of 1.072 billion shares valued at N7.384 billion that exchanged hands last week in 16,684 deals.

The Construction/Real Estate industry (measured by volume) led the activity chart with 954.529 million shares valued at N681.392 million traded in 218 deals; thus contributing 43.21% and 6.22% to the total equity turnover volume and value respectively.

The Financial Services industry followed with 889.888 million shares worth N6.538 billion in 10,107 deals. The third place was the Conglomerates industry, with a turnover of 209.437 million shares worth N579.990 million in 677 deals.

Trading in the top three equities namely UACN- Property Development Company Plc, Zenith Bank Plc and LASACO Assurance Plc. (measured by volume) accounted for 1.229 billion shares worth N3.243 billion in 2,148 deals, contributing 55.61 per cent and 29.60 per cent to the total equity turnover volume and value respectively.

A total of 126,119 units of ETFs valued at N655.919 million were traded this week in 36 deals, compared with a total of 107,424 units valued at N520.306 million transacted last week in 18 deals.

Bonds traded 1,016 units valued at N1.099 million in eight deals compared with a total of 8,285 units valued at N10.658 million transacted last week in 15 deals.

“Our view continues to favour cautious trading as risks remain on the horizon due to a combination of the increasing number of COVID-19 cases in Nigeria and weak economic conditions. Thus, we continue to advise investors to seek trading opportunities in only fundamentally justified stocks,” analysts at Cordros capital explained.