Zenith Maintains Position as ‘Best Corporate Governance Financial Services’ in Africa in Fourth Consecutive Year
Equities Market Sustains RallyÂ on Strong Investor Sentiment
The bulls remained in control of the equities market as the market recorded its third consecutive gain on sustained strong investorsâ€™ sentiments.Â Â The Nigerian Stock Exchange (NSE) All-Share Index, which had appreciated the previous week, rose to a new high last week. Specifically,Â the NSE ASI 3.46 per cent to close at 39,257.53, while market capitalisation added N457.6 billion to close at N13.672 trillion.
With last weekâ€™s gain, the month-to-date and year-to-date returns increased to 3.46 per cent and 46.08 per cent respectively.
Despite the bullish performance,Â Â threeÂ Â ofÂ Â fiveÂ Â sector indices appreciated while two depreciated. Leading the gainers was the NSEÂ Â Consumers Goods Index, up 6.1 per cent.Â Â The NSEÂ Â Banking IndexÂ Â followed with a gain of 5.3 per cent higher, while the NSEÂ Insurance IndexÂ Â rose by 0.2 per cent. Conversely, the NSE Industrial Goods Index shed 1.4 per cent just as the NSEÂ Â Â Oil & GasÂ Â Index fell by 0.5 per cent respectively.
According to analysts at Cordros Capital Limited, â€œnotwithstanding likely profit taking, overall,Â Â we expect the market to remain upbeat, as market fundamentals remain strong amid improving macroeconomic conditions.â€Â
Daily Market Performance
Still in a bullish mood, the market resumed for the week on a positive note with theÂ Â NSE ASIÂ Â rose by 0.08 per cent to close at 37,974.58 points. That was actually the 4th consecutive day of a positive close. Mondayâ€™s positive performance was buoyed by buying interest in consumer goods bellwethers â€“ Nestle Nigeria Plc, Nigerian Breweries and FBN Holdings Plc.
The total value of stocks tradedÂ was N6.36 billion invested in 500.19 million shares in 4,966 deals, down by 70.27 per cent from N21.38bn recordedÂ Â the previous trading day.
The three most actively traded sectors were Financial Services (368.81 million shares), Conglomerates (91.93 million shares), and Consumer Goods (21.91 million shares), while the three most activelyÂ Â Â Â traded stocks were: Custodian and Allied (70 million shares), FBN Holdings (56.86 million shares) and Zenith Bank (55.62 million shares).
Sector performance was mixed with three indices trending northwards and the other twoÂ Â indices closing bearishly. The NSE Consumer Good Index appreciated the most, gaining 0.4 per cent. Similarly, the NSE Insurance Index rose by 0.2 per cent, while the NSE Industrial Goods Index added 0.1 per cent.
Contrarily, the losers were theÂ Â NSE BankingÂ Â Index and NSE Oil & GasÂ Â IndexÂ Â shedding 0.6 per cent and 0.5 per cent respectively.
The market continued with its gaining streak rising by 1.37 per cent to be at 38,494.43.Â Â Similarly, the market capitalisation climbed to N13.4 trillion. Appreciation inÂ Â the share prices of FBN Holdings, UBA, Nigerian Breweries, Dangote Sugar, and Unilever was mainly responsible for the gain recorded in the index.
â€œThe rebound in the prices of banking stocks today strengthened the positive performance recorded in the equity market. The stocks of FCMB, Fidelity and Diamond recorded strong demand, traded at the upper limit and closed on bid. The renewed bargain hunting and increased activities are indications of the gradual take-off of the anticipated year-end rally,â€ analysts at FSDH Research said.
The market hit a new high on Wednesday on the continuing rally in the market with the NSE ASI crossingÂ Â 39, 000 mark to 39,075.30, showing a gain of 1.51 per cent.Â Â The appreciation recorded in the share prices of FBN Holdings, UBA, Nigerian Breweries, ETI, and Zenith Bank bolstered the performance.
The Nigerian equities market extended its bullish run for the fourth consecutive day this week as investorsâ€™ positive sentiments continued. As a result, the Nigerian Stock Exchange (NSE) All-Share Index (NSE ASI) appreciated by 1.17 per cent to close higher at 39,534.14. Similarly, market capitalisation added N159.8 billion to close at N13.77 trillion.
The positive performance yesterday could be linked to gains recorded by Nigerian Breweries Plc, Nestle Nigeria Plc, Zenith Bank Plc, Ecobank Transnational IncorporatedÂ Â and FBN Holdings Plc.
However, Union Bank of Nigeria Plc led the price gainers with 10.1 per cent trailed BY Fidelity Bank Plc with 7.5 per cent, while NAHCO Plc chalked up 7.2 per cent. Okomu Oil Palm Plc and FBN Holdings Plc garnered 7.1 per cent and 6.1 per cent respectively.
Conversely,Â Â Total Nigeria Plc led the price losers with 5.0 per cent, trailed by AXA Mansard Insurance Plc with 4.6 per cent. NEM Insurance Plc shed 4.6 per cent, while Livestock Feeds Plc closed 4.1 per cent lower.
According to analysts at FSDH Research, the bullish momentum was sustained and largely driven by high demand for banking, consumer goods and insurance stocks
The analysts noted that although profit taking is expected to continue in the coming sessions, the market will remain positive and active as we approach year-end.
A further analysis of theÂ Â trading activitiesÂ Â shows that three sectors closed in the negative while two appreciated. The two gainers were the NSEÂ Â Consumer Goods IndexÂ Â and the NSE Banking IndexÂ Â that appreciated byÂ Â Â 2.7 per centÂ Â and 1.8 per centÂ Â respectivelyÂ Â as a result of sustained buying interest in Nigerian Breweries Plc (+2.2 per cent), Nestle (+6.0 per cent) Zenith Bank (+5.6 per cent)Â Â and Access Bank (+3.3 per cent).
On the other hand, the NSE Industrial Goods Index shed 0.8 per cent followingÂ Â Â profit taking in Dangote Cement (-0.4 per cent).Â Â Â InÂ a similar vein,Â Â the NSEÂ Â Insurance IndexÂ Â fellÂ Â Â 0.5 per cent following losses in AXA Mansard (-4.7 per cent) and NEMÂ Â Insurance (-4.6 per cent) while the NSEÂ Â Oil & Gas Index shedÂ Â 0.4 per centÂ Â as a result of to selloffs in Total Nigeria (-5.0 per cent).
The market recorded a total turnover of 3.316 billion shares worth N36.451 billion in 29,771 deals were traded during theÂ Â week under review by investors compared withÂ Â in contrast to a total of 14.257 billion shares valued at N35.056 billion that exchanged handsÂ Â the previousÂ Â week in 17,379 deals.
The Financial Services Industry remained the most tradedÂ Â led the activity chart with 2.785 billion shares valued at N26.075 billion traded in 18,293 deals, thus contributing 83.97 per centÂ Â and 71.54 per centÂ Â to the total equity turnover volume and value respectively. The Conglomerates Industry followed with 247.639 million shares worth N1.330 billion in 1,333 deals. The third place was occupied by Consumer Goods Industry with a turnover of 185.560 million shares worth N5.976 billion in 6,137 deals.
Trading in the Top Three Equities namely â€“ FBN Holdings Plc, Fidelity Bank Plc and Zenith Bank Plc (measured by volume) accounted for 958.742 million shares worth N11.355 billion in 6,765 deals.Â
Price Gainers and Losers
A look at the price movement chart showed 47 equities thatÂ appreciated in price during the week 39Â Â of the previous week, whileÂ Â 20 equities depreciated in price, lower than twenty-three 23 equities of the previous week.
FBN Holdings Plc led the price gainers with 26.3 per cent, trailed by Cadbury Nigeria Plc with 22.8 per cent. Fidelity Bank Plc chalked up 20.8 per cent, while Neimeth International Pharmaceuticals Plc garnered 18.9 per cent.
Other top price gainers include: Union Bank of Nigeria Plc (15.9 per cent); Access Bank Plc (15.5 per cent); FCMB Group Plc (14.7 per cent); Diamond Bank Plc ( 14.3 per cent); Sterling Bank Plc (13.0 per cent); NASCONÂ Â Allied Industries Plc( 11.9 per cent).
Conversely, Total Nigeria Plc led the price losers withÂ Â Â 5.4 per cent, trailed by International Breweries Plc with 5.3 per cent. Chellarams Plc and Guinness Nigeria shed 4.9 per cent, just as Studio Press Plc went down by 4.7 per cent. AXA Mansard Insurance Plc declined by 4.6 per cent, Cement Company of Northern Nigeria PlcÂ shed 3.7 per cent. Morison Industries Plc andÂ Â Lafarge Africa Plc went down by 3.6 per cent, just as Julius Berger Nigeria Plc closed 3.5 per cent lower.