STOCK MARKET WEEKLY REPORT
The Nigerian equities market opened 2017 on a bearish note, shedding N214 billion in the first week. Having recorded positive performance in the last weeks of December, most investors resorted to profit taking in the New Year, a development that depressed the broader index. Specifically, the Nigerian Stock Exchange (NSE) All-Share Index (NSE ASI) went down by 2.3 per cent to close at 26,251.39. Similarly, market capitalisation shed N214 billion to close lower at N9.032 trillion.
Although trading was for only four days, three out of the days were negative. The only positive performance was recorded on Friday (+0.2) as gains in the banking space – Zenith Bank (+1.8 per cent), Access Bank (+2.3 per cent), United Bank for Africa Plc (+1.5 per cent ), Ecobank Transnational Incorporated (+1.2 per cent) FBN Holdings (+1.7 per cent) and Guaranty Trust Bank Plc (+0.3 per cent) – bolstered.
Apart from the NSE ASI that closed negatively, all other indices also finished lower during the week. The NSE Industrial Goods Index led with a decline of 3.0 per cent following weak sentiments toward Dangote Cement (-4.0 per cent) and Lafarge Africa Plc (-2.3 per cent). The NSE Consumer Goods Index went down by 2.3 per cent on account of losses suffered by Dangote Flour Mills Plc (-4.9 per cent), Nigerian Breweries (-4.0 per cent) and Guinness Nigeria (-3.7 per cent). The NSE Banking Index shed 1.6 per cent as a result of profit taking in GTBank (-4.7 per cent) and ETI(-4.2 per cent). Also the NSE Oil & Gas Indices lost 1.6 per cent on the back of losses by Mobil Oil (-5.0 per cent) and Forte Oil (-4.6 per cent). The NSE Insurance Index recorded a 0.2 per cent as NEM Insurance Plc and Custodian shed 9.5 per cent and 4.9 per cent respectively.
Daily Market performance
The market opened the first trading day of the year bearishly. The market followed the same trend on the second day, leading to a decline of 1.41 per cent in the first two trading days of 2017 as some investors lock in profits while others await government’s economic policy direction for year. The NSE ASI went down by 0.46 per cent on Tuesday to close at 26,495.04. Similarly, market capitalisation shed N41.9 billion to close at N9.1 trillion as a total of 17 stocks declined while 14 stocks appreciated.
Commenting on the performance, analysts at Meristem Securities Limited said: “The performance can be ascribed to profit taking activities on some counters that rallied towards the close of the prior year. For the rest of the week, we expect a continuation of today’s trend, hence, we posit that the market may close the week on a negative note.”
For the third consecutive day, the Nigerian equities market continued on its downward trend on Thursday with NSE ASI declining by 1.07 per cent.
NAHCO, emerged the highest loser for the day, shedding 9.49 per cent to close at N2.86. Guinness (-5.00 per cent), Dangote Cement (-4.94 per cent), Custodian (-4.88 per cent), and Caverton (-4.44 per cent) also featured on the top laggards’ list for the day.
Market performance, as measured by NSE-sector indices, showed that the NSE Banking Index and NSE Insurance Index appreciated by 1.67 per cent and 0.71 per cent respectively. Conversely, the NSE Industrial Goods, and the NSE Oil & Gas shed by 1.81 per cent, and 0.14 per cent in that order.
According to analysts at Meristem Securities Limited, Wednesday’s was affected by a decline in the share price of Dangote Cement which lost 4.01 per cent.
“Ex-Dangote Cement, the market would have returned 0.35 per cent. While we expect the market to close negative for the week, we envisage that the market may gain tomorrow(Friday) on the backdrop of bargain hunting activities on stocks that have suffered price declines recently and are trading at historically low levels,” they said.
The total value of stocks traded on Thursday was N898.71 million, up by 2.88 per cent from N873.57 million recorded the previous day, while the total volume of stocks traded was 137.69 million shares n in 2,488 deals. The most actively traded sectors were: Financial Services (110.66 million), Conglomerates (11.13 million), and Industrial Goods (5.38 million shares), while the three most actively traded stocks were: Fidelity Bank (25.05 million shares), Diamond Bank (16.95 million shares) and United Capital (11.03 million shares).
However, the market rebounded on Friday, as the NSE ASI appreciated by 0.15 per cent to close at 26,251.39. The appreciation recorded in the share prices of Guinness, GTBank, Zenith Bank, Access Bank and FBN Holdings were mainly responsible for the rebound. Investors traded 210.20 million shares worth N1.51 billion in 2,659 deals.
The three most actively traded stocks were: Oando (51.13 million shares), FCMB (35.87 million shares) and Zenith Bank (20.81 million shares), while the most actively traded sectors were: Financial Services (131.98 million), Oil and Gas (52.34 million shares), and ICT (10.77 million shares).
Market turnover
Meanwhile, a total of 4.319 billion shares worth N7.376 billion in 9,330 deals were traded this last week by investors in contrast to a total of 405.939 million shares valued at N3.724 billion that exchanged hands the previous week in 6,363 deals.
As usual the Financial Services sector led the activity chart with 4.177 billion shares valued at N5.306 billion traded in 5,047 deals, thus contributing 96.71 per cent and 71.94 per cent to the total equity turnover volume and value respectively. The Oil and Gas sector followed with 65.827 million shares worth N594.522 million in 1,385 deals. The third place was occupied by Conglomerates sector with a turnover of 26.487 million shares worth N48.163 million in 299 deals.
Trading in the top three equities namely – Unity Kapital Assurance Plc, Omoluabi Savings and Loans Plc and FCMB Group Plc accounted for 3.863 billion shares worth N3.013 billion in 286 deals, contributing 89.45 per cent and 40.85 per cent to the total equity turnover volume and value respectively.
Also traded during the week were a total of 55 units of Exchange Traded Products (ETPs) valued at N505.65 executed in 11 deals, compared with a total of 9,965 units valued at N56,446.35 transacted the previous week in 16 deals. A total of 5,100 units of Federal Government Bonds valued at N5.120 million were traded this week in two deals, as against no bond transaction the preceding week.
Price gainers and losers
The price movement chart showed that 18 equities appreciated, lower than 37 equities of the previous week. Thirty-one equities depreciated in price, higher than 21 equities of the previous week, while 126 equities remained unchanged higher than 117 equities recorded in the preceding week.
UACN Property Development Company Plc led the price gainers with 14.5 per cent, trailed by United Capital Plc with 10.6 per cent. Access Bank Plc appreciated by 6.9 per cent, just as Eterna Plc, FCMB Group Plc and Unity Bank Plc garnered 6.4 per cent, 6.4 per cent and 6.3 per cent in that order.
Other top price gainers included: FBN Holdings Plc(4.4 per cent); UBA(4.0 per cent); Fidson Healthcare Plc(3.9 per cent);and CAP Plc (3.1 per cent).
Conversely, NAHCO led the price losers with 13.9 per cent, trailed by Cement Company of Northern Nigeria Plc with a decline of 13.4 per cent. N.E.M Insurance Plc and Sterling Bank Plc shed 9.5 per cent and 7.8 per cent respectively. Other top price losers included: Cadbury Nigeria Plc (7.6 per cent); Union Bank (5.1 per cent); Mobil Oil Nigeria (5.0 per cent); Dangote Flour Mills (4.9 per cent); Ashaka Cement Plc(4.9 per cent) and Custodian and Allied Plc (4.8 per cent).
