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Market Digest Nigeria

Business

Stock index hits 10-month high

Trading at the stock market was upbeat last week as the bulls returned after succumbing to profit taking the previous week. After going down by 0.3 per cent a week before last on profit taking, the market rebounded to hit a 10-month high as investors reacted to strong market fundamentals.

The Nigerian Stock Exchange (NSE) All-Share Index (NSE ASI) rose 3.38 per cent to close higher at 29,064.52, while market capitalisation added N328.8 billion to close at N10.048 trillion.

Similarly, all other indices finished higher during the week with the exception  of the NSE Oil/Gas Index that depreciated by 0.89 per cent while the NSE ASeM Index closed flat.  The NSE Banking led with 7.64 per cent, trailed by the NSE Insurance Index with 3.75 per cent, while the NSE Consumer Goods Index appreciated by 1.71 per cent. The NSE Industrial Goods Index rose by 0.13 per cent.

Commenting on the market performance, analysts at Meristem Securities Limited said: “We reiterate that market fundamentals remain strong, particularly in light of improved stability and liquidity in the currency space and stability in the macro environment, as the Monetary Policy Committee (MPC), in line with consensus retained the Monetary Policy Rate (MPR) at 14 per cent. That said, investors were less swayed by the recently published first quarter (Q1) 2017 Gross Domestic Product GDP (-0.52 per cent) figure, which revealed that the Nigerian economy contracted for the fifth consecutive quarter and still remains in recession, as they remained enticed by the usual suspects, herein we refer to banking and consumer goods stocks.”

Trading resumed for the week on a negative note on profit taking with the index sliding by 0.12 per cent to close at 28,078.30, while market capitalisation ended at N9.71 trillion. Monday’s performance was dragged by depreciations in Nigerian Breweries Plc, Ecobank Transnational Incorporated, Zenith Bank Plc, PZ Cussons and GTBank.

A look at the sectoral performance showed that three out of the five indices appreciated. The NSE  Oil & Gas Index gained  led, rising by 0.4 per cent on account of price appreciations in Seplat (+1.4 per cent) and Total (+1.9 per cent). The NSE  Insurance and NSE  Industrial Goods indices  rose by improved 0.1 per cent apiece on the back of gains in Linkage Assurance Plc  (+3.5 per cent) and CCNN (+5.0 per cent).

Contrarily, the NSE Consumer Goods Index slid 0.7 per cent due to decline in Nigerian Breweries (-2.2 per cent) and Cadbury (-5.0 per cent) just as the NSE Banking Index fell 0.03 per cent on the back of losses in ETI (-5.0), Zenith (-1.1 per cent) and UBA (-1.0 per cent).

The market recovered   on Tuesday with the index rising by 0.05 per cent to close at 28,093.30, while market capitalisation closed higher at N9.712 trillion.Nigerian Breweries, Nestle, FBN Holdings, Zenith Bank and Flour Mills of Nigeria Plc boosted the positive performance.

In terms of trading, investors staked N2.18 billion on 212.68 million shares worth in 3,908 deals, down by 41.6 per cent from N3.74 billion invested the previous day.

The most actively traded sectors were: Financial Services (161.20 million), Oil and Gas (12.10 million) and Construction/Real Estate (11.10 million), while the three most actively traded stocks were: FBN Holdings (27.86 million), Diamond Bank (27.66 million) and Fidelity Bank (19.22 million).

The equity market extended its gain, appreciating by 0.69 per cent to close at 28,286.43. The appreciation recorded in the share prices of Dangote Cement, FBN Holdings, ETI, Zenith Bank and UBA were mainly responsible for the gain recorded in the Index.

Performance across sectors was largely positive as all indices advanced except the NSE Industrial Goods Index which went down by 0.7 per cent. The NSE Banking Index appreciated the most, climbing 1.5 per cent on the back of gains in GTBank (+1.5 per cent), Zenith Bank (+1.7 per cent) and ETI (+1.9 per cent) while gains in AXA Mansard (+4.9 per cent) and NEM (+1.0 per cent) drove the NSE Insurance Index 0.7 per cent northwards. In the same vein, the NSE Consumer Goods Index appreciated by 0.7 per cent just as NSE Oil & Gas Index rose by 0.3 per cent.

The bullish run was extended to third consecutive session on Thursday, with the index appreciated by 0.6 per cent to close at 28.467.61, buoyed by appreciation across banking and consumer goods bellwethers – GTBank, Stanbic, UBA and Nestle, which outweighed the decline in Nigerian Breweries.

A look at the sectors indicated that four appreciated while one declined. The NSE Oil and Gas fell by 1.2 per cent  on the account of losses in Mobil Oil(5.0 per cent) and Oando Plc (-2.2 per cent).

However, the NSE Banking Index led, appreciating by 1.7 per cent following gains by GTBank (+3.1 per cent) and Stanbic (+4.0 per cent).  The NSE Insurance Index appreciated by 1.5 per cent on the back of gains in AXA Mansard (+4.6 per cent) and Custodian and Allied (+2.7 per cent). Similarly,  the NSE Consumer Goods Index  rose by  0.2 per cent  higher as a result of rally  in Nestle  (+3.6 per cent) and UAC of Nigeria (+4.5 per cent), while   the NSE  Industrial Goods Index closed flat.

The market sustained its gaining streak on Friday, appreciating by 2.10 per cent to close at 29,064.52, following   appreciation recorded in the share prices of FBN Holdings, GTBank, Access Bank, Dangote Cement and Zenith Bank were mainly responsible for the gain recorded in the Index.

The most actively traded sectors on Friday were: Financial Services (648.84 million), Construction/Real Estate (26.97 million) and Consumer Goods (19.68 million), while  three most actively traded stocks were:  Diamond Bank (204.11 million), Access Bank (144.72 million) and GT Bank (59.24 million).

In all, investors traded 1.877 billion shares worth N20.055 billion in 19,979 deals last week, down from 2.271 billion shares valued at N32.647 billion that exchanged hands the previous week in 20,710 deals.

The Financial Services Industry remained that most active, accounting for 1.629 billion shares valued at N14.501 billion traded in 11,893 deals; thus contributing 86.8 per cent and 72.3 per cent to the total equity turnover volume and value respectively.

The Consumer Goods Industry followed with 57.531 million shares worth N2.189 billion in 2,616 deals, while the Conglomerates Industry placed third with a turnover of 52.220 million shares worth N101.384 million in 789 deals.

Also traded during the week were a total of 65 units of Exchange Traded Products (ETPs) valued at N1,967.85 executed in seven deals compared with a total of 1,470 units valued at N10,128.30 transacted  the previous week two deals.

Similarly, a total of 50 units of Federal Government Bonds valued at N43, 719.69 were traded last week in one deal, compared with a total of 6,308 units valued at N5.481 million transacted two weeks ago in three deals.

Meanwhile, 44 equities appreciated in price during the week, higher than 30 equities of the previous week, while 25 equities depreciated in price lower than 31 equities of the previous week, while 104 equities remained unchanged.

UACN Property Development Company Plc led the price gainers with 25.8 per cent, trailed by FBN Holdings Plc with 21.9 per cent. AXA Mansard Insurance Plc appreciated by 20.2 per cent. Fidson

Healthcare Plc, Cement Company of Northern Nigeria Plc and GTBank Plc garnered 18.4 per cent, 13.04 per cent and 12 per cent respectively.

Newrest ASL Nigeria Plc, Vitafoam Nigeria Plc, GSK Consumer Nigeria Plc and Linkage Assurance Plc chalked up 10.1 per cent, 9.1 per cent, 8.8 per cent and 8.6 per cent in that order.

Conversely, Cadbury Nigeria Plc led the price losers with 11.5 per cent, trailed by Mobil Oil Nigeria Plc with 9.7 per cent. Learn Africa Plc and NPF Microfinance Bank Plc shed 9.4 per cent and   8.0 per cent respectively.

Other top price losers included: John Holt Plc (6.3 per cent); NAHCO (5.8 per cent); Unity Bank Plc (5.1 per cent); African Paints (4.1 per cent); Meyer Plc (4.1 per cent) and Forte Oil Plc (3.9 per cent).

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