After falling the previous week to halt a three-week rally, the equities market rebounded last week to close higher. The Nigerian Stock Exchange (NSE) All-Share Index (ASI) rose 1.98 per cent to close at 44,639.99, while market capitalisation grew higher by 2.09 per cent to end N16.019 trillion.
The positive performance stemmed from bargain hunting by investors, who are taking position ahead of the earnings release season. While the results for 2017 full year are would soon begin to come in, some companies released their interim results that showed impressive performance.
The NSE Industrial Goods Index led with (+5.3 per cent), followed by the NSE Banking Index (+2.1 per cent), while the NSE Insurance Index rose 1.4 per cent. Conversely, the NSE Consumer Goods Index led the decliners with 3.3 per cent, followed by the NSE Oil & Gas Index wit 0.70 per cent.
According to analysts at Meristem Securities Limited, as they envisaged at the beginning of the week, the market closed in the green zone, with the NSEASI advancing by 1.98 per cent despite the decline in market’s volume and value.
“We note the influx of relevant market information in the course of the week; such as the release of financial scorecards across the consumer goods sector alongside the implementation of the Par value rule and the new pricing methodology. We, however, note that the market’s performance was driven by positive sentiment across counters in the banking and industrial goods space. In the coming week, we envisage a continuation of this positive outing, as we expect price appreciation on the market’s heavily-weighted counters alongside positive sentiment in the consumer goods space,” the analysts said.
Daily Performance
The equity market opened the week on a positive note as the bargain hunters drove the market higher. As a result the NSE ASI went up by 1.22 per cent to close at 44,306.48. Market capitalisation closed higher at N15.88 trillion. Gains recorded in the share prices of Dangote Cement, Transcorp, FBN Holdings, UBA and Stanbic IBTC were mainly responsible for the positive performance on the first day of the week.
Operators said the market gradually recovered from the oversold region with bargain hunting by investors particularly in stocks that declined in prior sessions
“Bargain hunting by investors will drive market performance in coming sessions in anticipation of 2017 earnings seasons,” they added.
In terms sectoral performance, four of the five indices closed northwards. The NSE Industrial Goods Index led gainers, up 1.7 per cent, trailed by the NSE Banking Index that rose by 0.9 per cent. Similarly, the NSE Insurance Index appreciated by 0.6 per cent, while the NSE Oil & Gas Index closed 0.6 per cent higher. The only decliner was the NSE Consumer Goods Index that shed 0.7 per cent.
The market maintained the positive trend on Tuesday with the NSE ASI rising 0.42 per cent to close at 44,493.79, market capitalisation added N67.1 billion to be at N15.9 trillion.
Performance was largely driven by buying interest in Dangote Cement Plc; Stanbic IBTC Holdings Plc; and Ecobank Transnational Incorporated (ETI).
Unlike the previous day when four sectors appreciated, three closed higher while two shed weight. The NSE Insurance Index appreciated the most, rising by 0.7 per cent followed by the NSE Industrial Goods Index and NSE Banking Index that appreciated rising 0.6 per cent and 0.5 per cent respectively.
On the negative side, the NSE Oil & Gas Index shed 0.6 per cent, while the NSE Consumer Goods Index lost 0.3 percent.
After risin for two days, the bears returned on Wednesday as investors locked in profits. Consequently, the NSE ASI depreciated by 0.34 per cent today to close at 44,343.65. Market capitalisation ended lower at N15.90 trillion following depreciation in the share prices of International Breweries, Transcorp, FBN Holdings, Nigerian Breweries and UBA.
Performance across sectors was largely mixed as three of five indices trended southwards, led by the NSE Consumer Goods Index with 1.1 per cent.
The NSE Insurance Index trailed, shedding 0.3 per cent while the NSE Banking Index went down by 0.2 per cent.
On the positive side, the NSE Industrial Goods Index appreciated the most, up 1.9 per cent. The NSE Oil & Gas Index added 0.3 per cent.
The market rebounded on Thursday, which was the first day of the new month. The NSE ASI appreciated 0.26 per cent to close at 44,460.18, while market capitalisation added N58.9 billion to close at N15.95 trillion.
The market got the boost from the appreciation recorded in the share prices of Dangote Cement, Unilever, Union Bank, Transcorp and UBA.
“Market closed positive largely on account of the gain in the share price of Dangote Cement. Market performance should improve going forward as the outlook of the market remains positive in the short-term,” operators said.
Despite the rebound, performance across sectors showed that four out of the five were negative. The NSE Insurance Index led with a decline of 0.9 per cent following sell offs in WAPIC Insurance Plc (-4.0 per cent) and Law Union & Rock (-4.6 per cent). The NSE Consumer Goods Index followed falling 0.4 per cent due to price depreciation in International Breweries (-4.8 per cent), Dangote Sugar Refinery (-1.9 per cent) and Nigerian Breweries Plc (-0.1 per cent). The NSE Banking Index and NSE Oil & Gas Index shed 0.1 per cent apiece.
On the other hand, the NSE Industrial Goods Index was the lone gainer, rising by 0.7 per cent following gains in Dangote Cement Plc (+1.9 per cent) and CCNN (+4.8 per cent).
The equity market appreciated further on Friday with the index rising 0.40 per cent to close the week at 44,639.99. The appreciation recorded in the share prices of Dangote Cement, Unilever, FBN Holdings, Access Bank and Zenith Bank were mainly responsible for the gain recorded in the Index.
“Price corrections and profit taking in previous sessions presented buying opportunities for investors. This may continue in the coming sessions,” analysts said.
Market Turnover
Investors traded a total of 3.268 billion shares worth N28.123 billion in 35,761 deals last week by investors in contrast to a total of 7.157 billion shares valued at N42.545 billion that exchanged hands the previous week in 39,037 deals.
The Financial Services Industry led the activity chart with 2.482 billion shares valued at N17.056 billion traded in 23,039 deals; thus contributing 75.96 per cent and 60.65 per cent to the total equity turnover volume and value respectively. The Conglomerates Industry followed with 375.113 million shares worth N1.047 billion in 1,968 deals. The third place was occupied by Consumer Goods Industry with a turnover of 262.198 million shares worth N6.843 billion in 5,921 deals.
Trading in the top three equities namely – FCMB Group Plc, Transnational Corporation of Nigeria Plc, and Skye Bank Plc accounted for 1.181 billion shares worth N2.830 billion in 5,219 deals.
Also traded during the week were a total of 32,189 units of Exchange Traded Products (ETPs) valued at N1.299 million executed in 19 deals, compared with a total of 153,755 units valued at N1.883 million that was transacted two weeks ago in 11 deals.
A total of 16,268 units of Federal Government Bonds valued at N17.053 million were traded this week in 28 deals, compared with a total of 6,715 units valued at N5.318 million transacted previous week in 15 deals.
Price Gainers and Losers
Meanwhile, 49 equities appreciated in price during the week, higher than 30 of the previous week, while 42 equities depreciated in price, lower than 44 equities of the previous week.
AIICO Insurance Plc led the price gainers with 35.5 per cent, trailed by Unity Bank Plc with 31.7 per cent. Wema Bank Plc chalked up 31.5 per cent, while C & I Leasin Plc garnered 25.8 per cent.
Other top price gainers included: NPF Microfinance Bank Plc (25 per cent); Diamond Bank Plc (23.1 per cent); WAPIC Insurance Plc (22.9 per cent); Champion Breweries Plc (22.1 per cent); Sterling Bank Plc (18.8 per cent); and Learn Africa Plc (18.5 per cent).
On the contrary, LASACO Assurance Plc led the price losers with 28 per cent, trailed by Associated Bus Company Plc with 20 per cent decline. Law Union & Rock Insurance Plc shed 16.6 per cent, while African Alliance Insurance Plc and Royal Exchange Plc fell 16 per cent piece.
Other top price losers included: International Breweries Plc (9.4 per cent); Linkage Assurance Plc (9.3 per cent); Newrest ASL Nigeria Plc (8.9 per cent); FTN Cocoa Processors Plc, UNIC Diversified Holdings Plc (8.0 per cent each).
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