Trading session in NSE
By Goddy Egene and Eromosele Abiodun
Investors in the Nigerian equities are counting their gains as the first quarter of 2013 ended last week. Value of investment meeasured by market capitalisation rose by N1.759 billion in the first quarter. Also, the Nigerian Stock Exchange (NSE) All-Share Index (ASI) rose by 19.4 per cent. Analysis of the performance of the market for the period showed that the bulk of the gains were recorded in January with a 13.44 per cent growth followed by February and March with gains of 3.83 per cent and 1.39 per cent respectively.
Consequently, the exchange's benchmark index and the market capitalisation settled at 33,536.01 and N10.731trillion respectively. Activity wise, the month of February led with an average daily value of trades settling at N4.79 billion (highest level in the last 12 months), higher than N3.80 billion and N3.73 billion recorded in March and January.
However, the benchmark index narrowly missed a spot in the top 5 ranking of global indices, coming in 6th position in the basket of 94 global indices tracked by Bloomberg. Also, average volume and value for March fell below February level by 36 per cent and 21 per cent respectively.
Meanwhile, the market recorded mixed performance last week as investors employed different approach to maximise opportunities in the market. The stock market opened for four days week as the federal government declared Friday 29th March 2013 a public holiday to mark Good Friday.
Trading had last Monday resumed on a poor note as investors bought fewer shares leading to the decline in market indicators. Market declined further on Tuesday as activities decreased by 24 per cent in conjunction with slump in market indices as investors bought 368.011 million shares worth N3.752 billion in 5,208 deals compared to 481.564 million units of shares worth N2.827 billion exchanged in 5,013 deals on Monday. In a reversal of fortune, the market gained on Wednesday after a two-day fall as some companies released full year results. At the close of business last Thursday, trading activities increased by 50 per cent as investors bought 456.752 million shares worth N3.580 billion in 7,339 deals compared to 305.341 million units of shares worth N3.385 billion exchanged in 5,472 deals on Wednesday.
The gains recorded at the end of the week lifted market indicators as the NSE All-Share Index or ASI appreciated by 29.37 points or 0.09 per cent to close the week under review on a positive note. Also, the NSE 30 Index, which captures the 30 most capitalised stocks appreciated by 5.53 points or 0.35 per cent to close at 1,602.88 points.
All the NSE sectoral indices appreciated during the week; the NSE Consumer Goods, NSE Banking, NSE Insurance, NSE Oil and Gas and NSE-Lotus II advanced by 1.98 per cent, 1.58 per cent, 0.63 per cent, 1.18 per cent and 1.69 per cent respectively.
Analysis of the performance of the market for the week showed that a turnover of 1.612 billion shares valued at N13.542 billion in 23,021 deals were transacted during the week in contrast to a total of 1.561 billion shares valued at N16.636 billion that exchanged hands last week in 25,255 deals. At the close of trading activities for the week, the Financial Services sector accounted for 1.347 billion shares valued at N8.138 billion exchanged hands by investors in 15,076 deals. The Consumer Goods sector (measured by turnover volume) followed in the activity chart with 76.335 million shares valued at N3.518 billion traded in 3,337 deals.
The Banking subsector of the Financial Services sector was the most active during the week (measured by turnover volume) with 945.036 million shares amounting to N6.661 billion exchanged by investors in 11,558 deals. Volume in the Banking subsector was largely driven by activities in the shares of Unity Bank Plc, Wema Bank Plc, and Skye Bank Plc. Trading in the shares of the three banks accounted for 450.287 million shares, representing 47.65 per cent of the turnover volume recorded by the subsector for the week. During the week were also 234 units of NewGold Exchange Traded Funds (ETFs) valued at N575.812 executed in 5 deals compared with a total of 192 units valued at N476.541 million transacted last week in 4 deals.
Besides, 3,500 units of FGN bonds valued at N4.009 million were traded during the week in 11 deals in contrast to 700 units valued at N1.992 million transacted last week in 18 deals.
Gainers and Losers
A review of the price movement chart showed that 34 equities appreciated in prices during the week higher than 22 equities of the preceding week. 37 equities depreciated in price lower than 45 equities of the preceding week, while 126 equities remained constant during the week in contrast to 130 equities of the preceding week. The top 10 gainers where: Nestle Nigeria Plc (N90.00), Okomu Oil Palm Plc (N11.50), Total Nigeria Plc (N8.05), UACN of Nigerian Plc (N1.95), Seven-Up Bottling Company Plc (N1.50), Guaranty Trust Bank Plc (N1.20), Ashaka Cement Plc (N1.20), UACN Property Development Company Plc (N56 kobo), Livestock Feeds Plc(N0. 46 ) and Zenith Bank Plc (N0.30).
On the other hand, the top 10 losers were: Dangote Cement Plc (N6.50), PZ Cussons Plc (N2.79), Nigerian Enamelware Plc (N1.69), Cement Company of Northern Nigeria Plc (N1.65), Northern Nigeria Flour Mills Plc (N0.80 ),Forte Oil Plc (N0.68 ), International Breweries Plc (N0.65), Presco Plc (N0.47), Eterna Plc (N0.33) and Vitafoam Nigeria Plc (N0.25).
Open Data Platforms Initiative
Meanwhile, investors in the capital market are set to benefit from a new era of transparency and accountability arising from enhanced information flow and dissemination of relevant data under the Open Data Platforms initiative recently launched by the African Development Bank (AfDB). Nigeria is one of 20 African countries selected for coverage by the Open Data Platform. According to AfDB, “Open Data Platform programme is part of the AfDB’s recently launched Africa information highway initiative aimed at ‘improving data management and dissemination in Africa’. This development according to a statement from AfDB is a great boost to the efforts of the Securities and Exchange Commission (SEC) under the leadership of Arunma Oteh and other securities regulators in the region to increase transparency and provide investors with critical data for informed investment decisions.
In the same vein, the NSE inaugurated the first-ever issuers’ portal in the capital market. The portal, called the X-Issuer, is one of the initiatives of the NSE aimed at driving transparency in the market and boosting trade activities.
Speaking during the inauguration of the portal, the Chief Executive Officer of the NSE, Mr. Oscar Onyema, said the portal was introduced on the understanding that accurate information was imperative in driving a vibrant capital market. He added that the introduction of the issuers’ portal embodied NSE’s commitment to providing a first rate platform that would enable all stakeholders to build and grow their businesses.