WEEKLY MARKET REPORT
By Goddy Egene and Eromosele Abiodun
The Nigerian equities market maintained its positive run to close the week 0.85 per cent higher. Last week’s performance was boosted by renewed optimism by investors on the back of encouraging first quarter results after the turmoil that trailed the 2015 results.
As expected, results released last week showed massive improvement despite recent economic crunch fuelling speculations that the days ahead may be rosy for investors.
Notably, FBN Holdings Plc, which recorded a fall of 82 per cent in 2015, also announced its first quarter result showing improved performance. That development excited the market.
At the close of trading, the NSE All-Share Index and market capitalisation appreciated by 0.85 per cent to close the week at 25,062.41 and N8.621 trillion respectively.
However, the NSE Insurance Index, NSE Oil/Gas Index, NSE Lotus Index and the NSE Industrial Goods Index that declined by 0.28 per cent, 9.69 per cent, 0.85 per cent and 2.03 per cent respectively, while the NSE ASeM Index closed flat.
Despite the positive run in the last two weeks, some analysts have said the market may be volatile in the days ahead, stressing that the recent momentum may not be sustained.
“In the immediate, we expect the market to be volatile given the absence of positive news flow. As such, we advise investors with a medium to long-term investment horizon to gradually build positions in quality names,” analysts at InvestmentOne Limited said.
Daily Performance Summary
The Nigerian bourse had opened trading last week in the red dragged by negative investors’ sentiment as indicated by market breadth index. NSE-ASI was down 0.34 per cent ending the session at 24,765.10, with corresponding market capitalisation of N8.5 trillion. The day’s session outcome was largely influenced by bearish sentiments toward Forte Oil Plc (9.13 per cent), Airline Service and Logistics Plc (4.97 per cent) and Portland Paints Plc (4.96 per cent), cancelling out gains in Learn Africa Plc (4.94 per cent), CCNN Plc (4.93 per cent) and Union Dicon Plc (4.89 per cent). Oil and gas tracker (4.19 per cent) emerged the worst performing sector as Banking (0.25 per cent), Consumer Goods (0.15 per cent) and Industrial (0.04 per cent) recorded marginal gains. Activity level was weaker relative to previous session. Also, volume and value of trade declined by 23 per cent and 49 per cent respectively closing the session at 144million and N766million. Access Bank Plc and Guaranty Trust Bank Plc recorded the largest volume of trade with 55million and 11million respectively.
On Tuesday, FBN Holdings Plc released its FY 2015 audited results with a N119 billion impairment charge for credit losses, which led to a Profit After Tax of N15 billion. It however released a Q1 result which excited the market. Consequently, The NSE ASI appreciated by 0.24 per cent to close at 24,823.86 points compared with the depreciation of 0.34 per cent recorded the prior day. The appreciation recorded in the share prices of Dangote Sugar Plc, FBN Holdings Plc, Oando Plc, Zenith Bank Plc and Nigerian Breweries Plc were mainly responsible for the gain recorded in the Index. Similarly, the market capitalisation appreciated by 0.24 per cent to close at N8.54 trillion, compared with the depreciation of 0.34 per cent recorded the previous day to close at N8.52 trillion.
Equity market lost marginally on Wednesday as the NSE ASI depreciated by 0.06 per cent to close at 24,809.29 points compared with the appreciation of 0.24 per cent recorded the previous day. Similarly, the market capitalisation depreciated marginally by 0.06 per cent to close at N8.53 trillion compared with the appreciation of 0.24 per cent recorded yesterday to close at N8.54 trillion. The marginal depreciation recorded in the share prices of Dangote Sugar Plc, Transcorp Plc, Forte Oil Plc, Total Nigeria Plc and Nigerian Breweries Plc were mainly responsible for the drop recorded in the Index. The total value of stocks traded on the floors of the NSE on the day was N1.35 billion, down by 10.32 per cent from N1.50 billion recorded the prior day.
The upward movement in a number of highly capitalised stocks pushed up the equity market on Thursday with the NSE ASI appreciating by 0.60 per cent to close at 24,957.08 points. The appreciation recorded in the share prices of Dangote Cement Plc, Guaranty Trust Bank Plc, FBN Holdings Plc, Access Bank Plc and Nigerian Breweries Plc mainly accounted for the gain recorded in the Index. Similarly, the market capitalisation appreciated by 0.60 per cent to close at N8.58 trillion compared with the marginal depreciation of 0.06 per cent recorded the previous day to close at N8.53 trillion. The total value of stocks traded on the floors of the NSE was N2 billion, up by 48.01 per cent from N1.35 billion recorded the previous day.
The market closed the week on a positive note last Friday as the NSE ASI appreciated by 0.42 per cent to close at 25,062.41 points. Similarly, the market capitalisation appreciated by 0.42 per cent to close at N8.62 trillion compared with the appreciation of 0.60 per cent recorded the prior day to close at N8.58 trillion. The appreciation recorded in the share prices of Guinness Nigeria Plc, Guaranty Trust Bank Plc, PZ Cussons Plc, Zenith Bank Plc and Nigerian Breweries Plc were mainly responsible for the gain recorded in the Index.
During the week under review, a turnover of 1.210 billion shares worth N7.115 billion in 15,973 deals were traded by investors on the floor of the exchange, up from a total of 885.367 million shares valued at N5.829 billion that exchanged hands the previous week in 13,870 deals.
The Financial Services Industry led the activity chart with 1.053 billion shares valued at N4.618 billion traded in 9,640 deals; thus contributing 87.01 per cent and 64.90 per cent to the total equity turnover volume and value respectively.
The Conglomerates Industry followed with 54.319 million shares worth N71.287 million in 564 deals. The third place was occupied by the Consumer Goods Industry with a turnover of 39.421 million shares worth N1.420 billion in 2,855 deals.
FBN Holdings Plc, Access Bank Plc and United Bank For Africa Plc. Led accounted for 654.258 million shares worth N2.413 billion in 3,965 deals, contributing 54.08 per cent and 33.92 per cent to the total equity turnover volume and value respectively.
Also traded during the week were a total of 12,490 units of Exchange Traded Products (ETPs) valued at N503,694.85 executed in 28 deals, compared with a total of 4,511 units valued at N1.401 million transacted the previous week in 38 deals.
A total of 8,990 units of Federal Government Bonds valued at N10.108 million were traded in 4 deals compared to a total of 3,241 units of Federal Government and Corporate Bonds valued at N3.579 million transacted the previous week in 4 deals.
Gainers and Losers
Meanwhile, the price movement chart of the NSE displayed a total of 33 equities that appreciated in price during the week, lower than 35 equities of the previous week. Thirty-five equities depreciated in price, higher than 32 equities of the previous week, while 121 equities remained unchanged lower than 122 equities of the previous week.
The top 10 gainers were: Nigerian Breweries Plc (N10.19), Eterna Plc (35 kobo), Tiger Branded Consumer Plc (25 kobo), AG Leventis Plc (12 kobo), Honeywell Plc (61 kobo), Wema Bank Plc (8 kobo), NASCON Allied (75 kobo), Cutix (12 kobo), and FBN Holdings Plc (28 kobo).
Conversely, the top 10 losers were: Forte Oil Plc (N60.77), Guinness Nigeria Plc (N6.72), Lafarge Africa Plc (N6.01), Glaxo Smithkline Plc (N2.42), Airline Service and Logistics Plc (34 kobo), UACN Prop Plc (60 kobo), Livestock Feeds Plc (10 kobo), NAHCO Plc (34 kobo), Portland Paints Plc (22 kobo) and Sterling Bank (nine kobo).