DG, NSE, Oscar Onyema

By Goddy Egene and Eromosele Abiodun

Investors in the Nigerian equities market again had a swell time last week as the market continued its excellent run despite the weaker-than-expected third quarter figures released by some banks and other quoted companies.

The market had the previous week remained northward following consistent bargain hunting by investors seeking gains and some investors’ appetite for blue-chipped stocks.

Analysts believe the decision by the management of the NSE to increase the number of stocks in the market-making basket helped the market to remain in positive territory.

The NSE last Thursday included United Bank for Africa Plc; Ecobank Transnational Plc; and Skye Bank Plc to the stocks that market makers will be making market on.

Analysts noted that the new selected stocks are more flexible as they have a daily band limit of 10 per cent as against the observable 5 per cent for other listed stocks.

The market had at the resumption of trading last Monday started on a poor note as investors rush to take profit.
It however rebounded on Tuesday and extended the run to Thursday, marking a three straight days of gaining streak as traders continued to intensify purchase of consumer goods stocks supported by few other blue chip stocks to match investors’ demands.

At close of business last Friday, bargain hunting activities of speculative investors taking positions in view of corporate earnings release lifted the market further upward.

Consequently, most major market indicators closed the week firmer led by the twin market gauge-the All-Share Index (ASI) and the market capitalisation.

A review of trading numbers released by the NSE showed that the Exchange’s benchmark index, which opened the week at 27,287.85 closed at 27,296.35 points, thereby appreciating 8.50 points or 0.03 per cent. Also, the market capitalisation of the listed equities increased by N 2.710 billion (0.03 per cent) to close at N8.698 trillion.

In the same vein, the NSE Consumer Goods and NSE-Lotus II Indices appreciated by 0.46 per cent (+303.12 per cent YTD) and 3.54 per cent (+38.84 per cent YTD), respectively, while the NSE 30, the NSE Banking, the NSE Insurance and the NSE Oil and Gas indices declined by 0.07 per cent (+40.03 per cent YTD), 0.57 per cent (+60.99 per cent YTD), 3.95 per cent (-5.68per cent YTD) and 3.20 per cent (-28.39 per cent YTD) respectively.
 
Market Turnover
A further analysis of the trading numbers showed that investors sold a total of 1.859 billion units of shares valued at N16.350 billion exchanged hands in 28,383 deals compared to 2.184 billion shares valued at N17.495 billion that exchanged hands the previous week in 27,786 deals.

The Financial Services sector dominated the activity chart (measured by turnover volume) recording the highest trading volume of 1.422 billion units of shares valued at N10.579 billion traded in 17,662 trades, representing 76.50 per cent, 64.70 per cent and 62.23 per cent, of the volume, value and number deals executed on the stock market during the week. The Conglomerates sector (measured by turnover volume) followed with a recorded volume of 120.099 million shares valued at N271.453 million traded in 911 deals. The top two sectors accounted for 1.542 billion shares valued at N10.850 billion traded in 18, 573 deals, thus accounting for 82.96 per cent, 66.36 per cent and 65.442 per cent of the volume, value and number of deals respectively.

Similarly, the Banking subsector was the most active with a volume of 1.262 billion units of shares. Activity in the subsector was mostly driven by shares of UBA Plc, First Bank of Nigeria Plc and Zenith Bank Plc which accounted for 481.427 million shares, representing 38.16 per cent, 33.85 per cent and 25.90 per cent of the turnover recorded by the subsector, sector and total volume for the week.

Also traded during the week were 4,700 units of NewGold Exchange Traded Funds (ETFs) valued at N12.488 million exchanged hands in 12 deals in contrast to a total of 2,200 units valued at N5.959 million transacted last week in 8 deals. However, there were no transactions in the Federal Government Development Stocks, State/Local Government Bonds, and Corporate Bonds/Debentures sectors.
 
Gainers and Losers
The analysis of the equity price movements indicated that 27 equities gained while 46 equities recorded price declines and prices of 125 equities remained constant. When compared with the preceding week, 50 equities gained while 25 equities recorded price declines and prices of 123 equities remained constant. The top 10 gainers include: Nestle Nigeria Plc (N 59.00), P Z Cussons Nigeria Plc (N4.98), CAP Plc (N 3.64), 7-UP Bottling Company Plc. (N 1.95), Dangote Cement Plc (N 1.50), Flour Mills Nigeria Plc (N 1.01), DN Meyer (92 kobo), University Press Plc (73 kobo),
UACN Property Development Company Plc (50 kobo) and BETA Glass Company Plc (47 kobo). The top 10 losers are: Guinness Nigeria Plc (N16.60),Total Nigeria Plc (N 5.00), Nigerian Breweries Plc (N3.15), Okomu Oil Palm Plc (N1.69).

Ashaka Cement Plc (N1.65), Unilever Nigeria Plc (N 1.50),  Oando Plc (N 1.24), Lafarge WAPCO Plc (N 1.00),
CUTIX Plc (85 kobo), Cement Company of Northern Nigeria Plc (60 kobo).
 
Market-making Stocks 
Meanwhile, in line with the phased introduction of additional stocks to the list of stocks in the baskets of market makers on the NSE, three stocks, all from the banking sub-sector of the bourse, were added.
The companies; United Bank for Africa Plc; Ecobank Transnational Plc and Skye Bank Plc were included in the stocks that market makers would be making market on Thursday.

The NSE in a statement said the addition  was in tandem  with the promise made by the Exchange that all the stocks quoted on the exchange that are trading above par value will be added to the market making programme over a period of six months.

The initiative, which kicked off in September 2012 with 16 stocks had nine other stocks added two weeks back. The additional three additional stocks now bring the number of stocks that Market Makers are making market on to 28.

The stocks covered by the initiative now are: 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. (UACN).

Others are: Access Bank; Academy Press; Custodian & Allied Insurance; First Bank Plc; Dangote Sugar Plc; Union Bank Plc, NASCON and Nestle Nigeria Plc as well as AIICO Insurance Plc and the three newly added ones.