Equities Market Outlook Positive As Q3 Earnings Drive Activity
Expectations of positive returns on third quarter earnings were seen driving activities at the Nigerian bourse last week as market outlook gauged marginally. In the coming week, analysts at Afrinvest “expect market performance to be majorly driven by investor expectations of Q3:2017 report card. Nonetheless, we advise investors to stay bullish on stocks with sound fundamentals”.
Positive expectations are expected, despite mixed performance in the last two weeks of September. The Nigerian bourse gained marginally on three of five days last week with all –share index losing 0.1% week-on-week to close at 35,439.38 points. Specifically, investors are seen betting on bellwethers in the financial services and consumers goods sectors as their results trickle in the course of the week. At the end September, market year-to-date return moderated to 31.9 per cent as stock prices lost N16.8 billion, while market capitalisation settled at N12.2 trillion.
Review of last week trade indicates a total turnover of 1.326 billion shares worth N14.086 billion in 14,703 deals traded last week by investors on the floor of the Nigerian Stock Exchange (NSE) in contrast to a total of 1.096 billion shares valued at N17.859 billion that exchanged hands in 16,070 deals in the previous week.
The financial services industry (measured by volume) led the activity chart with 1.060 billion shares valued at N7.339 billion traded in 8,202 deals; thus contributing 79.95 per cent and 52.10 per cent to the total equity turnover volume and value respectively. The Industrial Goods Industry followed with 91.351million shares worth N2.784 billion in 933 deals. The third place was occupied by consumer goods industry with a turnover of 70.187 million shares worth N3.395 billion in 2,719 deals. Trading in the top three equities namely – Continental Reinsurance Plc, Sterling Bank Plc and Access Bank Plc (measured by volume) accounted for 412.840 million shares worth N1.486 billion in 817 deals, contributing 31.14 per cent and 10.55 per cent to the total equity turnover volume and value respectively.