Equities market appreciates by N137bn WoW performance
By Kayode Tokede
Performance in the Nigerian stock market was positive last week with the benchmark index closing in the green on four of the five trading sessions.
In line with capital market analysts’ expectations, positive sentiments returned to the local bourse last week as the gradual release of corporate earnings bolstered buying interests in dividend-paying stocks.
Consequently, the All-Share Index advanced week-on-week (W-o-W) by 263.67 basis points or 0.68 per cent to close at 38,810.75 basis points. Similarly, market capitalisation increased by N137 billion to N20.221 trillion as at August 6, 2021.
As a result, the Month-Till-Date (MTD) gain increased to +0.7 per cent, while the Year-Till-Date (YTD) loss moderated to -3.6per cent.
However, sectorial performance did not reflect the overall positive market performance as most sub-sector indices closed southwards; the NSE Banking, NSE Insurance, NSE Consumer Goods, NSE Oil & Gas and the NSE Industrial indices declined by 0.58 per cent, 1.53 per cent, 0.48 per cent, 0.61 per cent and 0.22 per cent respectively to close at 379.15 points, 194.74 points, 594.79 points, 374.64 points and 1,971.04 points respectively.
Market breadth for the week was negative as 23 equities appreciated in price, 36 equities depreciated in price, while 97 equities remained unchanged. Cutix Plc led the gainers table by 17.95 per cent to close at N5.65, per share. Regency Assurance followed with a gain of 14.29 per cent to close at 48 kobo, while Conoil went up by 10 per cent to close to N20.35, per share.
On the other side, Neimeth International Pharmaceuticals led the decliners table by 14.29 per cent to close at N1.50, per share. AIICO Insurance followed with a loss of 12.04 per cent to close at 95 kobo and Eterna Plc declined by 10.56 per cent to close at N6.35, per share.
Overall, a total turnover of 989.593 million shares worth N8.183 billion in 19,617 deals were traded last week by investors on the floor of the Exchange, in contrast to a total of 1.374 billion shares valued at N11.823 billion that exchanged hands last week in 22,982 deals.
The Financial Services Industry (measured by volume) led the activity chart with 603.656 million shares valued at N3.864 billion traded in 9,337 deals; contributing 61.00 per cent and 47.22 per cent to the total equity turnover volume and value respectively. The Conglomerates Industry followed with 102.233 million shares worth N133.987 million in 846 deals, while Consumer Goods Industry traded a turnover of 80.979 million shares worth N1.250 billion in 2,902 deals.
Trading in the top three equities; Transnational Corporation Of Nigeria (Transcorp), Sterling Bank and FBN Holdings (FBNH), measured by volume accounted for 210.187 million shares worth N554.388 million in 1,414 deals, contributing 21.24 per cent and 6.77 per cent to the total equity turnover volume and value respectively.
On Exchange Traded Products (ETPs) platform, a total of 17,550 units valued at N34.012 million were traded last week in 36 deals compared with a total of 12,242 units valued at N911,149.30 transacted previous week in 17 deals, while on the Bonds market, a total of 702,021 units valued at N709.343 million were traded last week in 17 deals compared with a total of 29,324 units valued at N30.799 million transacted prior week in 12 deals.
In the new week, analysts at Cowry Asset Management Limited expect the equities market to trade positive as investors position in stocks of companies that printed positive financial results in H1 2021 as well as those likely to give interim dividends. Also, given the expected moderation in yields, investors may likely move into equities space.
Analysts at Cordros Securities Limited said that “Considering the positive performance in the local bourse this week, we believe earnings from the Big banks in the coming week will sustain the positive market sentiments. Particularly as the declaration of interim dividends will accompany the results.
“Overall, we advise investors to take positions in only fundamentally justified stocks as the weak macro story remains a significant headwind for corporate earnings.”
While Afrinvest Limited stated, “In the coming week, we expect to see a mixed performance of both profit taking and bargain hunting activities.”
