NSE Building
By Goddy Egene and Eromosele Abiodun
Investors smiled home last week as the market closed higher for the second week running on the back of renewed optimism following the near resolution of the leadership crisis that has rocked the market for some months.
Business mogul, Alhaji Aliko Dangote, last Tuesday resumed as the president of the Nigerian Stock Exchange (NSE), owing to the ruling by the Court of Appeal in Lagos penultimate Friday upholding his appeals against cases that led to the nullification of his election as president of bourse.
Also last week, Mr. Ibrahim Bolaji Bello, was named the acting director-general of the Securities and Exchange Commission (SEC), to replace Arunma Oteh, who is on compulsory leave.
He has promised to work with all stakeholders to restore investor confidence in the market.
Although trading at the stock market had opened on Monday bearish, the bears were unable to sustain their hold the following day as the market recorded a rebound with a sustained resilience up till Wednesday.
The positive momentum was maintained till Thursday when sentiments on the floor of the Nigerian bourse turned negative as profit-takers erased previous gains. However, the market made a rapid turnaround by the close of business last Friday.
Consequently, the NSE All-Share Index (ASI), which opened the week at 21,184.54 points appreciated by 210.19 points or 0.99 per cent to close on Friday at 21,394.77. Similarly, market capitalisation inched up by 1.04 per cent to close at N6.83 trillion.
Four of the NSE sectoral indices closed up, also. The NSE 30 index rose by 9.70 points (or 1.01 per cent) while the NSE Consumer Goods Index also rose by 29.38 points (or 1.73 per cent). The NSE Banking-10 Index appreciated by 4.90 points or 1.64 per cent while the NSE Insurance-10 Index went up by 3.73 points or 3.14 per cent. Conversely, the NSE Oil/Gas-5 Index depreciated by 4.25 points or 2.39 per cent.
A further review of the NSE numbers revealed that investors sold a total of 930.68 million shares valued at N6.33 billion in 17,744 trades, in contrast to a total of 2.76 billion shares valued at N7.99 billion which exchanged hands last week in 16,961 deals.
The Financial Services Sector of the equities market was the most active (measured by turnover volume) with 658.92 million shares valued at N3.75 billion traded in 10,381 deals. This was followed by Services Sector with 55.76 million shares valued at N145.17 million traded in 547 deals.
The Banking sub-sector was the most active during the week (measured by turnover volume) with 493.17 million shares valued at N3.64 billion which was exchanged by investors in 9,880 deals. The volume in the sub-sector was driven by Diamond Bank Plc, Zenith Bank Plc and First Bank of Nigeria Plc. Trading in the shares of the three companies accounted for 228.65 million shares, representing 46.36 per cent, 34.70 per cent and 24.57 per cent of the turnover recorded by the sector, subsector and total equities turnover for the week, respectively.
Also traded during the week were 1,922 units of NewGold Exchange Traded Funds (ETFs) valued at N4.92 million exchanged in 6 deals. However, here were no transactions in the federal government development stocks, state/local government bonds and corporate bonds/debentures stocks sectors.
Gainers and Losers
At the close of trading 33 stocks appreciated in value, compared with 28 equities the previous week. Nigerian Breweries Plc led on the gainers’ table with a gain of N4.00, followed by PZ Cussons Nigeria Plc with a gain of N2.38. Other price gainers included: GlaxoSmithKline Consumer Nigeria Plc (N1.50), Presco Plc (N1.29), Unilever Nigeria Plc (N1.20), UAC N Plc (N1.01), Cement Company of Northern Nigeria Plc (N0.74), Eterna Plc (N0.67), Zenith Bank Plc (N0.65) and First Bank Of Nigeria Plc (N0.33).
Conversely, 37 stocks depreciated in prices, one stock higher than 36 the preceding week. Guinness Nigeria Plc led on the price losers’ table, dropping by N7.08 while Seven-Up Bottling Company Plc followed with a loss of N3.69. Other price losers in the top 10 category included: Conoil Plc (N2.05), Arbico Plc (N1.30), Lafarge Wapco Plc (N1.00), MRS Oil Nigeria Plc (N0.70 ), Avon Crowncaps & Containers Plc (N0.69 ), UACN Property Development Company Limited (N0.50), Cadbury Nigeria Plc (N0.42 ) and Morison Industries Plc (N0.38 ).
Restoring Confidence
Market operators said one of the factors that drove market performance last week was the promise by Bello, to restore investor confidence and leave a positive legacy in the market.
The acting SEC DG, who assumed the new position last Monday, made the declaration while addressing members of staff.
He assured them of fairness to all and stressed the need to close ranks.
Bello said: “Forget about the past. It is going to be team work; not me alone and your welfare, especially on outstanding staff matters, which will be addressed immediately in line with the laid down policy and procedure but shall be subject to availability of resources. Just put in your best to ensure that we together move the market forward. We have no time for endless talk, let our work speak for us.”
“We expect commitment, cooperation, dedication and discipline. We want to leave behind, a SEC that everybody will be proud of and the one that the coming generations would commend us for. We have been given the opportunity, let’s work together to leave a legacy.”