NSE DG, Oscar Onyema
Goddy Egene and Eromosele Abiodun
Investors in the equities market again smiled home last week as the market sustained the previous week’s strong momentum helped by massive demand for shares as investors took position for possible gains in the New Year.
The stock market had in the previous week defied its historical Christmas lull to attain its highest peak in 2012, as investors relied on a sound 2013 economic outlook and lofty expectations from the 2012 financial results of companies.
After about three weeks of consistent gains, the market had the week before the yuletide season succumbed to pressure as most local investors sold shares to raise cash for the Christmas and New Year holidays.
However, trading resumed on the last trading day in 2012 on a positive note by extending the gains recorded the previous week. The stock market opened for four days last week, as Tuesday was a public holiday to mark the New Year celebration. At the resumption of trading last Wednesday, investors buying stocks lifted the market, with the benchmark index-Nigerian Stock Exchange (NSE) All-Share Index appreciating by 1.50 per cent to close at 28,501.21 while market value also grew to close at N9.109 trillion.
However, the market closed lower on Thursday as optimistic investors saw the need to take positions in value stocks ahead of banks’ full year 2012 results, which are being eagerly awaited. Stocks with a long and consistent history of dividend payments were the most favoured by investors. At the close of business last Friday, gains recorded in the share prices of FBN Holdings, Guaranty Trust Bank Plc, Access Bank Plc, Nestle Nigeria Plc and Skye Bank Plc helped the market return to positive territory.
Meanwhile, blue-chip stocks, consumer goods stocks, some banking stock have continued to contribute immensely to the market overall performance in the new year, which showed a yield of approximately 35 per cent as at the week under review. The performance is in line with analyst expectation of a return of above 30 per cent for 2013.
By close of trading for the week, NSE All-Share Index appreciated by 2.41 per cent to close at 28,538.06. Also, the market capitalisation of the listed equities went up by 2.41 per cent to close at N9.121 trillion.
All but one of the sectoral indices appreciated: the NSE 30, the NSE Consumer Goods, the NSE Banking, the NSE Insurance, and the NSE Oil/Gas index appreciated by 2.61 per cent, 1.54 per cent, 8.31 per cent, 3.56 per cent and 0.84 per cent respectively. However, NSE Lotus II depreciated by 1.06 per cent.
A review of the performance of the market last week showed that investors sold a total of 972.737 million shares worth N8.509 billion in 13,745 deals in contrast to a total of 571.077 million shares valued at N5.246 that exchanged hands the previous week in 7,579 deals.
The financial services sector was the most active during the week (measured by turnover volume) with 654.080 million shares worth N5.765 billion exchanged hands by investors in 8,625 deals
The volume of shares sold in the sector was largely driven by activity in the shares of Zenith Bank Plc, First City Monument Bank Plc, Fidelity Bank Plc and FBN Holdings Plc. Trading in the shares of the four banks accounted for 308.139 million shares, representing 47.11 per cent and 31.68 per cent of the sector turnover and total turnover traded during the week respectively.
The conglomerates sector boosted by activity in the shares of Transnational Corporation of Nigeria Plc followed on the week’s activity chart with a turnover of 166.455 million shares valued at N174.680 million in 458 deals.
The consumers' goods sector (measured by turnover volume) was third with 61.541 million shares valued at N1.731 billion traded in 2,261 deals. The top three sectors accounted for 883.808 million shares valued at N7.723 billion traded in 11,457 deals, thus accounting for 90.86 per cent, 90.76 per cent and 83.35 per cent, of the volume, value and number of deals respectively.
Also traded during the week were 438 units of NewGold Exchange Traded Funds (ETFs) valued at N1.108 million exchanged hands in 4 deals in contrast to a total of 213 units valued at N539.090 million transacted last week in 2 deals. There were however no transactions through the stock market in the FGN Bonds, State/Local Government Bonds and Corporate Bonds/Debentures sectors.
Summary of Price Change
Price movement chart for the week indicated that 51 equities gained while 12 equities recorded price declines and prices of 132 equities remained constant. When compared with the preceding week, 31 equities gained while 21 equities recorded price declines and prices of 143 equities remained constant. The top 10 gainers include: Presco Plc (N4.32), Nigerian Breweries Plc (N4.06), Okomu Oil Palm Plc (N2.73), Guaranty Trust Bank Plc (N2.15), FBN Holdings Plc (N1.36), First City Monument Bank Plc (N1.25), Zenith Bank Plc (N1.16), Nestle Nigeria Plc (N1.10), Guinness Nigeria Plc (N0.88 ), Skye Bank Plc (N0.87). The top 10 losers were: Lafarge Cement WAPCO Nigeria Plc (N4.40), Dangote Cement Plc (N3.10), PZ Cussons Nigeria Plc (N0.44), John Holt Plc (N0.33), Pharma-Deko Plc (N0.13), NASCON Plc (N0.10), Cutix Plc and Jos International Breweries Plc (N0.07 each), Portland Paints and Products Nigeria Plc (N0.06 ).
Meanwhile, Julius Berger Nigeria Plc and Ashaka Cement Plc during the week under review joined the market-making stocks on the Nigerian bourse in line with the phased introduction of additional stocks by the Nigerian Stock Exchange (NSE).
The market-making programme, which assisted in creating liquidity in the market, was introduced last September with 16 stocks with a promise by the NSE of a phased introduction of additional stocks over six months.
In line with that promise, the NSE yesterday added Julius Berger and Ashaka Cement to the list to bring the number to 33 market-making stocks.
With this development, the prices of Julius Berger and Ashaka Cement could record the daily 10 per cent price movement either upward or downward.
The first stocks that made the market making list were: PZ Cussons Nigeria Plc; Nigerian Bag Manufacturing Company Plc; Presco Plc; International Breweries; Lafarge Wapco; Fidson Healthcare Plc; Redstar Express Plc; Zenith Bank Plc; Sterling Bank Plc; D.N.Meyer; Diamond Bank; FCMB; Fidelity Bank Plc; Nigerian Breweries Plc; Guaranty Trust Bank Plc and UAC Nigeria Plc.
The following later joined: Access Bank Plc, Academy Press Plc, Custodian & Allied Insurance Plc, First Bank of Nigeria Plc, Dangote Sugar Plc, Union Bank of Nigeria Plc, NASCON Plc, Nestle Nigeria Plc, AIICO Insurance Plc, Ecobank Transnational Plc, Skye Bank Plc. Dangote Flour Mills Plc, Unity Bank Plc and Prestige Assurance Plc.