Equities Market Rebounds as Corporate Earnings Trickle In

Equities Market Rebounds as Corporate Earnings Trickle In

Equities Market Rebounds as Corporate Earnings Trickle In

After a lull, activities at the Nigerian Stock Exchange are picking up, as corporate earnings trickle in slowly, Goddy Egene reports

The stock market recorded a marginal growth of 0.09 per cent last week after three weeks of bearish trading. The rebound followed investors’ reaction to the release of corporate results by some companies for the half year ended June 30, 2018.

Specifically, the Nigerian Stock Exchange (NSE) All-Share Index (ASI) appreciated by 0.09 per cent to close at 36,636.97, while market capitalisation closed higher at N13.272 trillion.

Similarly, all other indices finished higher with the exception of the NSE Premium, NSE Consumer Goods, NSE Oil/Gas, NSE Industrial Goods, NSE Pension Indices that depreciated by 0.16 per cent, 0.19 per cent, 3.74 per cent, 4.4 per cent and 0.56 per cent respectively.

Analysts at Cordros Capital Limited said their outlook for equities in the near-to-medium term remained conservative, “in the absence of a near term one-off positive catalyst (save for potential better-than-expected Q2 corporate earnings), more so, amidst brewing political concerns.

“However, stable macroeconomic fundamentals – in addition to the likelihood of external jitters settling – remain supportive of market recovery in the long term.”

 Daily Performance

The market opened last week on a positive note last Monday, with the NSE ASI rising by 0.30 per cent to 36,711.96 as bargain hunting  that started the preceding Friday continued.

The appreciation recorded in the share prices of some highly capitalised companies such as UBA, Dangote Cement, Nigerian Breweries, FBN Holdings, and Zenith Bank Plc bolster the performance.

However, Cutix Plc led the price gainers for the day, with 10 per cent, trailed by Continental Reinsurance Plc with 6.0 per cent. Wema Bank Plc chalked up 5.8 per cent, just as Transcorp Plc and Japaul Oil & Gas Plc went up by 4.2 per cent and 4.2 per cent respectively.

Other top price gainers included: LASACO Assurance Plc (3.0 per cent); NASCON Allied Industries Plc (2.7 per cent); GTBank Plc (2.1 per cent); FCMB Group Plc (2.0 per cent) and United Capital Plc (1.6 per cent).

Conversely, Abbey Building Society Plc led the price losers with 10.0 per cent. University Press Plc trailed  with a decline of 9.8 per cent. Forte Oil Plc and UACN Property Development Company Plc shed 9.6 per cent and 9.4 per cent in that order. AIICO Insurance Plc, Champion Breweries Plc, Oando Plc and Jaiz Bank Plc went down by 8.9 per cent, 7.3 per cent, 7.2 per cent and 6.1 per cent respectively.

However, activity level weakened as volume and value traded declined 66.8 per cent and 43.4 per cent to 225.9 million shares   and N2.2 billion respectively. Top traded stocks by volume were Medview Airline Plc  (100.0 million shares), Transcorp Plc (16.1 million shares) and  Zenith Bank Plc  (11.3 million shares) while the top traded by value were Dangote Cement Plc   (N564.1 billion), GTBank (N315.5 billion) and  Zenith Bank (N260.3 billion).

Meanwhile, performance across sectors on that day was largely bullish as four of five indices tracked closed higher. The NSE Banking Index gained the most with 0.6 per cent.

It was followed by the NSE   Industrial Goods Index followed with 0.4 per cent, while the NSE Insurance Index and   NSE Consumer Goods Index went up by 0.3 per cent and 0.1 per cent respectively. On the flipside, the NSE Oil & Gas Index shed 1.7 per cent.

Profit taking in bellwether stocks attracted the bears, making the market to close 0.70 per cent lower. Specifically, profit taking in stocks such as International Breweries Plc, Lafarge Africa Plc and Dangote Cement Plc caused the bearish run.

Consequently,  the market shed  N93 billion, pulling the  capitalisation  to N13.2 trillion.

But   activity level strengthened as volume and value traded advanced 67.6 per cent  and 100.1 per cent  to 378.7 million shares  and N4.4 billion respectively. The top traded stocks by volume were Medview Air Plc  (100.0 million shares), Transcorp  (45.5 million shares) and Zenith Bank Plc (42.7 million shares ) while the top traded stocks by value were Zenith Bank (N988.5 million), GTBank (N545.5 million) and Dangote Cement  (N499.5 million).

The sell pressure persisted on Wednesday dragging the index   lower by 0.30 per cent to close at 36,346.80. Major drags to performance were – Dangote Sugar Refinery Plc; Lafarge Africa Plc; Nigerian Breweries Plc and GTBank Plc. In the same manner, activity level fell  as volume and value traded fell 12.9 per cent  and 17.5 per cent  to 329.8 million shares and N3.6 billion  respectively.

The performance across sectors was bearish as four  of  the five  indices tracked. The  NSE Industrial Goods Index led decliners, falling 1.5 per cent  while the NSE  Oil & Gas Index shed 0.8 per cent.  In the same vein,  the NSE Consumer Goods Index 0.8 per cent  just as  the  NSE Insurance Index depreciated 0.5 per cent.

But the market rebounded on Thursday, bolstered by gains recorded by Nestle Nigeria Plc, Zenith Bank, FBN Holdings Plc and GTBank Plc to close 0.22 per cent higher at 36,427.22. But volume and value fell by 48.2 per cent and 18.3 per cent to 171 million shares and N3.0 billion respectively.

The positive performance was sustained last Friday as the NSE ASI appreciating by 0.58 per cent to close at 36,636.97. The appreciation recorded in the share prices of some highly capitalised companies such as International Breweries, FBN Holdings , GT Bank, UBA, and Transcorp  were mainly responsible for the gain recorded.

 Market Turnover

Meanwhile, investors traded 1.417 billion shares worth N16.739 billion in 19,832 deals last week, compared with 1.665 billion shares valued at N14.834 billion that exchanged hands in 18,795 deals the preceding week. However, the Financial Services Industry remained the most active, leading   the activity chart with 832.842 million shares valued at N8.823 billion traded in 10,851 deals. The sector thus contributed 58.7 per cent and 52.7 percent to the total equity turnover volume and value respectively.

The Services Industry followed with 320.350 million shares worth N679.981 million in 584 deals, while the third place was occupied by Conglomerates Industry with a turnover of 99.403 million shares worth N147.372 million in 1,000 deals.

Trading in the top three equities – Medview Airline Plc, FBN Holdings Plc and Zenith Bank Plc – accounted for 578.789 million shares worth N5.153 billion in 2,874 deals,

 Price Gainers and Losers

The price movement chart displayed 31 equities that appreciated in price during the week, higher than 16 in the previous week, just as 48 equities depreciated in price, lower than 59 equities of the previous week.

Cutix Plc led the price gainers with 46 per cent, trailed by Cement Company of Northern Nigeria Plc with 25.9 per cent. Continental Reinsurance Plc and FBN Holdings Plc chalked up 12.6 per cent and 10 per cent respectively.

Other top price advancers for the week included: Caverton Offshore Support Group Plc (10.0 per cent); Vitafoam Nigeria Plc (9.8 per cent); Capital Oil Plc (8.7 per cent); and Diamond Bank Plc (7.6 per cent); Skye Bank Plc (7.6 per cent); Sterling Bank Plc (6.6 per cent).

Conversely, Rak Unity Petroleum Company Plc led the price losers with 20 per cent, trailed by UACN Property Development Company Plc that shed  18.8 per cent. Secure Electronic Technology Plc and Royal Exchange Plc dipped by 16.6 per cent apiece.

Other top price gainers were: Lafarge Africa Plc (15.3 per cent); Forte Oil Plc (13.9 per cent); NPF Microfinance Bank Plc (12.7 per cent); Abbey Mortgage Bank Plc (10 per cent); Presco Plc (9.9 per cent) and PZ Cussons Nigeria Plc (9.8 per cent).

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