Equities market closes at 2.14% MtD performance

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By Kayode Tokede

The equities market of the Nigerian Stock Exchange (NSE) maintained a positive outcome in the third consecutive week to bring the Month-Till-Date performance to 2.14 per cent.

Nigerian NewsDirect gathered that the equities market All-Share Index closed in first week of August at 1.41per cent, improved to 2.05per cent in second and eventually gained 0.09 per cent to close last week at 2.14 per cent.

Our correspondent gathered that gain in some banks, consumers’ goods, Oil & gas and Insurance shares have contributed to market positive performance in the month under review.

Specifically, the NSE Banking Index closed its MtD at 5.76 per cent, while NSE Consumer Goods Index also closed MtD at 4.92 per cent last week.

In addition, the likes of NSE Oil & gas and NSE Insurance closed MtD performance at 9.99 per cent and 5.28 per cent respectively.

Capital market analysts expressed that foreign investors’ renewed interest in cheap stocks boost the equities market performance in August.

They added that investor sentiments was largely driven by reactions to corporate earnings for half year ended June 30, 2020 by some fundamentals companies, urging investors to invest in some quality stocks with a medium to long term investment horizon.

The equities market for last week showed a significantly lower trading activity as the bourse inched higher for the fourth successive week, following a series of marginal gains over trading sessions.

Investors interest in MTN Nigeria that gained two per cent pushed the ASI 0.1per cent higher, w/w, to 25,221.87 basis points.

Performance across sectors within our coverage was mixed with the Insurance (+4.4 per cent), Consumer Goods (+1.9 per cent), and Banking (+0.8 per cent) indices recording gains while the Oil & Gas (-0.9 per cent) and Industrial Goods (-0.4 per cent) indices declined.

The weekly report by NSE disclosed that, “A total turnover of 950.414 million shares worth N10.123 billion in 16,647 deals were traded this week by investors on the floor of the Exchange, in contrast to a total of 1.327 billion shares valued at N13.934 billion that exchanged hands last week in 19,392 deals.

“The Financial Services industry (measured by volume) led the activity chart with 624.278 million shares valued at N6.181 billion traded in 8,313 deals; thus contributing 65.68 per cent and 61.06 per cent to the total equity turnover volume and value respectively.

“The Consumer Goods industry followed with 96.320 million shares worth N2.199 billion in 3,148 deals. The third place was the Conglomerates industry, with a turnover of 89.376 million shares worth N145.612 million in 757 deals.

“Trading in the top three equities namely Zenith Bank Plc, Guaranty Trust Bank Plc and Transnational Corporation of Nigeria Plc. (measured by volume) accounted for 298.901 million shares worth N4.761 billion in 3,056 deals, contributing 31.45per cent and 47.03per cent to the total equity turnover volume and value respectively.”

Meanwhile, analysts at Cordros capital said, “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.”