Trading Value Rises 46% as Market Records Marginal Recovery

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WEEKLY REPORT

By Goddy Egene and Nosa Alekhuogie

Trading at the stock market was upbeat last week as value of stocks traded rose by 46 per cent, while the Nigerian Stock Exchange (NSE) All-Share Index (ASI) closed the week higher, compared with a decline the previous week.

Investors committed N9.251 billion in 1.163 billion shares in 14,992 deals, up from N6.357 billion invested in 934.905 million shares the previous week.

Sentiments were mixed as investors await the third quarter (Q3) results of companies. However, the NSE ASI and capitalisation appreciated by 0.09 per cent to close the week at 27,861.03 and N9.570 trillion respectively.  Overall performance across sectors remained mixed. The NSE Banking Index led sector gainers, advancing 1.9 per cent. Similarly,  the NSE Consumer Goods Index  appreciated by  0.6 per cent, while the NSE Oil & Gas Index closed  higher.

 Conversely, the NSE Industrial Goods Index depreciated by  3.6 per cent  while the NSE  Insurance Index shed 0.05 per cent.

Daily Performance Summary

The equities market opened  the week on a positive note with the Nigerian Stock Exchange (NSE) All-Share Index (ASI) rising by 0.32per cent to close at 27,925,while market capitalisation ended higher at N9.59 trillion.

Gains recorded by Access Bank, Lafarge Africa, Zenith Bank, Nigerian Breweries and GT Bank bolstered the positive performance on Monday.

The total volume of stocks traded was 171.46 million valued at N1.73 billion in 3,045 deals.  The three most actively traded stocks were: Zenith Bank (27.81 million shares), GTBank (27.76 million ) and FCMB  Group (16.73 million shares).

Sector performance closed mixed as three sectors gained while 2 declined. The NSE Banking Index rose  up 1.3 per cent on account of renewed interest in Zenith Bank (+2.2 per cent) and GTBank (+1.9 per cent). Also, the NSE  Industrial Goods Index (+1.3 per cent) closed higher solely on the back of bargain hunting in Lafarge Africa  (+3.8 per cent) while the  NSE Consumer Goods Index marginally gained (+0.1 per cent) due to positive sentiment in Nigerian Breweries Plc (+1.5 per cent).  Conversely, the NSE Oil & Gas Index fell by 0.5 per cent while the NSE  Insurance Index went down by 0.2 per cent.

The market extended gains of the previous day on Tuesday as the NSE ASI rose 0.39 per cent to close at 28,034.32, while market capitalisation ended at N9.6 trillion after adding N37.6 billion.

Three sectors appreciated while two sectors fell. The positive  sectors were led by the NSE  Oil & Gas Index with a gain of 1.2 per cent following 5.0 per cent appreciation by Seplat Petroleum Development Company Plc. The NSE Banking Index followed with 1.0 per cent on account of gains in the shares of Zenith Bank (+3.4 per cent), Access Bank (+2.2 per cent) and UBA (+2.0 per cent). Similarly,  the NSE Consumer Goods Index  garnered 0.6 per cent  due to improved buying interest in Nestle  (+3.1 per cent) and Dangote Sugar Refinery Plc (+2.4 per cent).

After gaining for two days, the market recorded a marginal decline of 0.03 per cent. The NSE ASI settled lower at 28,027.23 while market capitalisation stood at N9.626 trillion. The depreciation recorded in the share prices of Oando, Nestle, Lafarge Africa, Nigerian Breweries and Dangote Sugar were responsible for the loss recorded in the NSE ASI. The total value of stocks traded was N1.43 billion, down by 47.30 per cent  from N2.72 billion recorded  the previous day. The total volume of stocks traded was 155.58 million shares in 3,277 deals. The three most actively traded stocks were:  GTBank (28.09 million shares ), UBA (28.03 million shares) and Transcorp (14.74 million).

 A number of highly capitalised stocks weighed down the equity market on Thursday as the NSE ASI depreciated by 0.62 per cent  to close at 27,854.78.  Also, investors in turn lost N59.2 billion  as market capitalization settled at N9.6 trillion.

 The significant decline was majorly driven by  fall recorded by GTBank (-4.7%), Forte Oil  (-4.8 per cent) and Lafarge Africa (-2.6 per cent). However, market activity spiked as volume and value traded grew 144.7 per cent  and 28 per cent  to close at 380.8 million shares  and N1.8 billion  respectively.

All sector indices closed lower save for the Consumer Goods Index (+0.4 per cent) which closed higher due to gains in Dangote Sugar Refinery  (+2.8), Champion  (+2.8 per cent) and Nigerian Breweries  (+0.8 per cent).

The  NSE Banking Index shed  2.1 per cent, dragged by sell-offs in GTBank(-4.7 per cent), Access Bank (-0.8 per cent) and Zenith Bank(-0.3 per cent). Similarly, the Oil & Gas Index (-1.3 per cent) erased a two-day positive  performance as investors reacted to negative earnings result from Forte Oil(-4.8 per cent ) and took profit on Oando  (-0.7 per cent).

The market recorded a marginal growth on Friday as the NSE ASI appreciated  by 0.02 per cent to close at 27,861.03. The appreciation recorded in the share prices of GTBank, FBN Holdings, Oando, Guinness and Access Bank were responsible for the gain recorded.

The total value of stocks traded was N1.53 billion, down by 16.36 per cent  from N1.83 billion  recorded  the previous day.

Market turnover

In all, investors traded 1.163 billion shares worth N9.251 billion in 14,992 deals last week compared with  934.905 million shares valued at N6.357 billion that exchanged hands  the previous week. The Financial Services Industry remained the most active, recording 1.022 billion shares valued at N5.890 billion traded in 8,812 deals. The sector thus contributed  87.93 per cent  and 63.68 per cent  to the total equity turnover volume and value respectively. The Conglomerates Industry followed with 61.569 million shares worth N141.308 million in 633 deals. The third place was occupied by the Consumer Goods Industry with a turnover of 33.086 million shares worth N2.017 billion in 2,642 deals. Trading in the top three equities – Access Bank Plc, Diamond Bank Plc and United Bank of Nigeria Plc, accounted for 522.737 million shares worth N1.951 billion in 1,914 deals, contributing 44.95 per cent and 21.09 per cent to the total equity turnover volume and value respectively.

Also traded during the week were a total of 119,743 units of Exchange Traded Products (ETPs) valued at N600,589.51 executed in 25 deals, compared with a total of 184 units valued at N2,077.37 transacted the preceding  week in 16 deals.

Gainers and losers

Meanwhile, 22 equities appreciated in price during the review  week, same as the previous week, while 42 equities depreciated , higher than 35 equities of the previous week. A total of 116 equities remained unchanged lower than  the 123 equities recorded in the preceding week.

Caverton  Offshore Support Group led the price gainers with 13.4 per cent to close at N0.76 per share, trailed by Seplat, which rose by 10.2 per cent. Transnationwide Express Plc appreciated by 9.8 per cent.  Zenith Bank Plc, Access Bank and Union Bank went up by 5.4 per cent, 4.6 per cent and 3.9 per cent in that order. United Capital Plc, Livestock Feeds Plc, A.G Leventis Plc and Nigerian Breweries Plc   garnered 3.5 per cent, 3.4 per cent, 3.3 per cent ND 1.9 per cent respectively.

Conversely, UAC of Nigeria Plc led the price losers with 13.6 per cent, trailed by Lafarge Cement Plc with 9.9 per cent. E-Tranzact went down by 9.6 per cent, just as Forte Oil Plc shed 9.2 per cent. Pharma Deko Pc and Cement Company of Northern Nigeria Plc fell by 9.0 per cent and 8.3 per cent in that order.

Other top price losers included: Paints Company of Northern Nigeria Pc (7.6 per cent); Cutix Plc (6.1 per cent) and AIICO Insurance Plc (6.1 per cent).