WEEKLY REPORT
The Nigerian equities failed to sustain the gain recorded the precious week as cautious trading by investors made the market to closed in the red last week.
The market had gained N165.8 billion in capitalisation two weeks ago as investors renewed demand for highly capitalised stocks. Although the market recorded more price gainers last week, losses by bellwether stocks impacted negatively on the Nigerian Stock Exchange (NSE) All-Share Index to close lower.
The benchmark index shed 0.14 per cent to close at 35,439.98, while market capitalised ended lower at N12.217 trillion. Market analyst said being the last week of the month, individual investors were treading cautiously, while portfolio investors maintained low profile as they move to balance their books for the month.
Apart from the NSE ASI that closed lower, NSE Premium, NSE Banking , NSE Insurance, NSE Oil/Gas, NSE Lotus II and NSE Pension indices that appreciated by 0.94 per cent, 1.17 per cent, 0.61 per cent , 0.52 per cent , 0.03 per cent , and 0.24 per cent in that order.
According to analysts at Meristem Securities Limited, the ended negative after an intense volatility, largely due to the absence of fundamental drivers.
“Next (this) week, which marks the beginning of the Q3-17 earnings season, we expect investors to position ahead of earnings releases, with expected demand for consumer and industrial goods stocks – supported by possible demand for banks’ stocks as well – likely to push the ASI to close higher,†they said.
Daily Market Performance
Trading resumed for the week on Monday bearishly with the index depreciating by 0.37 per cent to close at 35,358.73 on losses recorded by United Bank for Africa Plc , Lafarge Africa, Nigerian Breweries, Access Bank, and Nestle Nigeria Plc.
Apart from the index falling, the value of stocks traded also fell by 62.8 per cent as investors staked N1.37 billion on 107.14 million shares in 2,848 deals., down from N3.68 billion invested in last day of the previous week.
The three most actively traded sectors were: Financial Services (64.17 million shares), Industrial Goods (21.59 million shares), and Conglomerates (5.63 million shares), while the three most actively traded stocks were: Meyer (20 million shares), FCMB Group (9.57 million shares) and Niger Insurance (8.39 million shares).
In terms of sectoral performance, the NSE Industrial Goods Index led the decliners with a 1.1 per cent fall. The NSE Consumer Goods Index trailed with a loss of 0.8 per cent while the NSE Banking Index shed 0.5 per cent. On the positive side, the NSE Oil & Gas Index 0.3 per cent, just as the NSE Insurance Index rose 0.1 per cent.
The market recorded a mixed performance on Tuesday as the Nigerian Stock Exchange (NSE) All-Share Index(ASI) fell further while value and volume of trading surged by 164.8 per cent. Specifically, the index fell by 1.15 per cent to close at 34,951.27, compared with a depreciation of 0.37 per cent the previous day. The depreciation recorded in the share prices of Dangote Cement, Nestle, Nigerian Breweries, Access Bank, and United Bank for Africa was mainly responsible for the negative close recorded in the index. The performance reduced the year-to-date (YTD) appreciation in the index to 30.05 per cent.
However, the value of trading improved significantly to N3.620 billion staked on 500.299 million shares in 3,120 deals, from N1.367 billion invested in 107.148 million shares in 2,848 deals the previous day.
The three most actively traded sectors were: Financial Services (448.22 million shares), Conglomerates (19.34 million shares), and Consumer Goods (11.60 million shares), while the three most actively traded stocks were: Continental Reinsurance (190.51 million shares), Sterling Bank (83.31 million shares) and Access Bank (50.98 million shares).
A look at the price losers’ chart showed that International Breweries Plc led with 4.9 per cent, trailed by MCNichols with 4.7 per cent. Continental Reinsurance Plc shed 4.4 per cent, just as A.G Leventis Plc went down by 4.2 per cent. Law Union & Rock Insurance Plc closed 4.1 per cent lower, just as Morison Industries Plc lost 4.0 per cent.
On the positive side, Neimeth International Pharmaceuticals Plc and NASCON Allied Industries Plc led the price gainers with 4.8 per cent apiece. AXA Mansard Insurance Plc added 4.7 per cent, while Honeywell Flour Mills Plc chalked up 4.6 per cent.
After two days of negative close, the market rebounded on Wednesday as the index appreciated by 0.44 per cent to close at 35,103.40, while market capitalisation added N52.1 billion to close at N12.05 trillion.
Although it was a tight contest between the bulls and bears as the market recorded 24 price gainers and 22 price losers, gains posted Dangote Cement Plc, Nestle Nigeria Plc, Zenith Bank Plc, Transcorp Plc and Stanbic IBTC Holdings lifted the market to close in green.
“We attribute the gains recorded in the market to the positive sentiments in the industrial goods space, specifically on Dangote Cement. Despite the positivity in the general market, we note that the market would have lost 0.18 per cent Ex-Dangote Cement,†analysts at Meristem Securities said.
Champion Breweries Plc led the overall price gainers’ chart with 8.1 per cent, trailed by Neimeth International Pharmaceuticals Plc with 4.6 per cent, while Linkage Assurance Plc and Fidson Healthcare Plc went up by 4.5 per cent apiece. C&I Leasing Plc and NEM Insurance Plc chalked up 4.3 per cent, just as Jaiz Bank Plc and Learn Africa Plc garnered 4.2 and 4.1 per cent respectively among others.
Conversely, Morison Industries Plc led the price losers, declining by 8.3 per cent. UACN Property Development Company Plc shed 5.0 per cent, while University Press Plc closed 4.8 per cent lower. Caverton fall by 4.5 per cent, just as A.G Leventis Nigeria Plc, May & Baker Nigeria Plc and First Aluminium Plc shed 4.4 per cent, 4.3 per cent and 3.8 per cent in that order.
In terms of sectoral performance, the NSE Industrial Goods Index led with 0.8 per cent. Similarly, the NSE Insurance Index went up by 0.7 per cent. On the downside, the NSE Oil & Gas Index shed 0.3 per cent, followed by the NSE Consumer Goods Index and NSE Banking Index that fell 0.2 per cent each.
The bulls consolidated their hold on the market on Thursday with the index appreciating 0.93 per cent to close at 35,429.31. Again, the positive performance was boosted by the gains recorded in the share prices of Dangote Cement, Nestle, Zenith Bank, GTBank, and Nigerian Breweries.
The market sustained its positive momentum on Friday, rising by 0.03 per cent. However, the growth was not enough to swing the market to close the week higher.
Market Turnover
Meanwhile, market turnover stood at 1.326 billion shares worth N14.086 billion in 14,703 deals last week, compared to 1.096 billion shares valued at N17.859 billion that exchanged hands last week in 16,070 deals.
The Financial Services Industry remained the most active, recording 1.060 billion shares valued at N7.339 billion traded in 8,202 deals, thus contributing 79.95 per cent and 52.10 per cent to the total equity turnover volume and value respectively. The Industrial Goods Industry followed with 91.351 million shares worth N2.784 billion in 933 deals. The third place was occupied by Consumer Goods Industry with a turnover of 70.187 million shares worth N3.395 billion in 2,719 deals.
Also traded during the week were a total of 274 units of Exchange Traded Products (ETPs) valued at N636,147.90 executed in 18 deals compared with a total of 58 units valued at N90,475.00 transacted the previous week in five deals.
Similarly, a total of 7,424 units of Federal Government Bonds valued at N6.689 million were traded this week in 18 deals, compared with a total of 178 units valued at N163, 407.05 transacted the preceding week in two deals.
Price Gainers and Losers
A total of 32 equities appreciated last week higher than the previous week, while 32 equities depreciated in price, lower than 35 equities of the previous week. C & I Leasing Plc led the price gainers with 28.3 per cent, trailed by Fidson Healthcare Plc with 17.3 per cent. Unity Bank Plc and Transcorp Plc chalked up 15.3 per cent ND 10.5 per cent in that order. Honeywell Flour Mills Plc advanced by 6.3 per cent just as Neimeth International Pharmaceuticals Plc, Zenith Bank Plc, African Prudential Plc, AXA Mansard Insurance Plc and Sterling Bank Plc garnered 6.2 per cent, 6.1 per cent, 5.4 per cent, 5.2 per cent and 5.0 per cent respectively.
Conversely, A.G Leventis Nigeria Plc led the price losers with 16.9 per cent, followed by Morison Industries Plc with 12.0 per cent. UACN Property development Plc shed 9.3 per cent, while Vitafoam Nigeria Plc and Cement Company of Northern Nigeria Plc closed 5.9 per cent and 5.0 per cent in that order.
Other top price losers included: MRS Oil Nigeria Plc (4.9 per cent); University Press Plc (4.8 per cent); MCNichols Plc (4.7 per cent); Caverton (4.5 per cent) and Continental Reinsurance Plc (4.4 per cent).
