Story by Olabode Jegede
The equities market of the Nigerian Stock Exchange (NSE) added N316 billion to close last week with a positive performance.
The market capitalisation, which represents investors’ worth in the market, closed at N13.523 trillion, representing an increase of 2.39 per cent or N316 billion from N13.207 trillion the market opened for trading.
The NSE All Share Index increased by 2.33 per cent or 632.43 basis points from 27,146.57 basis points it opened, to close trading at 27,779 basis points.
Price appreciation in Seplat Petroleum Development Company (15.7 per cent), Forte Oil (14.1 per cent), FBN Holdings (24.1 per cent) and Ecobank Transnational Incorporated (11.9 per cent) moved the Oil & Gas and Banking indices up 7.19 per cent and 5.06 per cent week-on-week respectively.
Also, Consumer Goods indices gained 0.57 per cent week-on-week respectively following buying interest in Dangote Sugar (9.7 per cent).
Conversely, the Insurance and Industrial Goods Indices depreciated by 2.13 per cent and 0.14 per cent respectively, while the NSE ASeM index closed flat.
Overall, a total turnover of 1.147 billion shares worth N14.082 billion in 17,980 deals were traded last week by investors on the floor of the Exchange in contrast to a total of 1.101 billion shares valued at N17.082 billion that exchanged hands in prior two weeks in 15,431 deals.
Also, 39 equities appreciated in price during the week, higher than 27 equities in the previous week. 19 equities depreciated in price, lower than 34 equities in the previous week, while 108 equities remained unchanged, higher than 105 equities recorded in the preceding week.
Analyst at APT Securities and Fund Limited said that, “Even though the market maintains waves between the north and south poles, some signs of improvement are evident from the improved market performance during the week’s trading sessions.
“It will be notable to point out that most stocks have undergone corrections, it will be advisable to accumulate in tranches fundamentally justifiable liquid stocks that have shed weight over time.”
The Exchange revealed that the financial services industry (measured by volume) led the activity chart with 840.704 million shares valued at N10.765 billion traded in 11,331 deals; thus contributing 73.30 per cent and 76.45 per cent to the total equity turnover volume and value respectively.
The Conglomerates industry followed with 111.231 million shares worth N243.124 million in 963 deals. The third place was ICT Industry with a turnover of 95.087 million shares worth N605.135 million in 404 deals.
Trading in the Top three equities namely, Guaranty Trust Bank Plc, Access Bank Plc and FBN Holdings Plc (measured by volume) accounted for 484.003 million shares worth N8.306 billion in 4,265 deals, contributing 42.20 per cent and 58.99 per cent to the total equity turnover volume and value respectively.
Similarly, Analyst at Cowry Asset Management Limited stated that, “In the new week, we expect the domestic bourse to close in positive territory as it appears investors are beginning to take position in some bellweathers’ stocks.
”Hence, we expect value investors to continue to pitch their tent with companies that have grown their profit after tax, paid dividends over time, trading below equity per share and have strong cash flows, in order to optimize their returns.”
Story by Olabode Jegede