WEEKLY REPORT
By Goddy Egene and Nosa Alekhuogie
The equities market recorded the second consecutive growth last week as investor’s confidence received a boost from some impressive corporate earnings. More companies reported their 2016 financial year performances, announcing dividends for shareholders. This development lifted the prices of many of the stocks. As a result, the Nigerian Stock Exchange (NSE) All-Share Index (NSE ASI) rose by 0.90 per cent to close at 25,746.52, while market capitalisation ended at N8.909 trillion.
All other Indices finished higher during the week with the exception of the NSE Banking Index which depreciated by 0.20 per cent while the NSE ASeM Index closed flat.
The NSE Industrial Goods Index led the sectoral gainers’ chart with 5.2 per cent. The NSE Oil & Gas Index trailed with 4.3 per cent, while the NSE Insurance and the NSE Consumer Goods Indices gained 2.0 per cent and 0.8 per cent respectively.
Daily Market performance
The Nigerian equities market started the month of April on a bearish note with the NSE ASI falling 0.95 per cent to close at 25,273.03, dragged by bellwethers such as Dangote Cement Plc(-2.4 per cent), Nigerian Breweries Plc (-1.5 per cent) and GTBank Plc (-2.4 per cent). Investors lost N84.2 billion as market capitalisation closed at N8.7 trillion on the first day of the month, even as volume and value traded declined by 83.5 per cent and 99.3 per cent to 97.7 million shares and N682.8 million respectively.
Performance across sectors was mixed as three indices declined while two appreciated. The NSE Banking Index fell the most, depreciating 1.6 per cent on account of GTBank (-2.4 per cent).
The NSE Industrial Goods Index and NSE Consumer Goods Index fell by 0.7 per cent and 0.1 per cent owing to sell offs in Dandgote Cement and Nigerian Breweries (1.5 per cent) respectively.
On the positive side, the NSE Insurance Index appreciated by 1.1 per cent following gains in AXA Mansard (+4.4 per cent) and NEM Insurance (+5.0 per cent).Similarly, Mobil Oil (+5.0 per cent) drove the NSE Oil & Gas Index higher.
The market was flattish on Tuesday as the benchmark index shed 0.003 per cent to close at 25,266.15. Rally in Oando (+6.3 per cent) following investors’ reaction to its 2016 full year results, was offset by weak appetite for Tier-1 banks – ETI, UBA and GTBank, which shed 3.0 per cent, 2.3 per cent and 0.6 per cent respectively.
Just like the previous day, three sectors declined. The NSE Banking Index depreciated the most, shedding 0.6 per cent on account of weak appetite for ETI (-3.0 per cent), UBA (-2.3 per cent) and GTBank (-0.6 per cent). Similarly, the NSE Insurance Index went down by 0.3 per cent, just as NSE Oil & Gas Index fell by 0.1 per cent.
After two days of negative performance, the equity market rebounded on Wednesday, as the NSE ASI appreciated by 0.81 per cent to close at 25,471.69. The uptrend was largely as a result of renewed buy sentiment in mid-cap counters in the Industrial and Oil & Gas sectors such as Lafarge Africa, Oando Plc as well as bargain hunting in GTBank.
All the sectors closed in the green led by the NSE Industrial Goods Index, which rose by 4.4 per cent on account of gains in Lafarge (+10.2 per cent). The NSE Oil & Gas Index appreciated by 3.3 per cent on gains by Mobil Oil (+10.2 per cent)and Oando Plc (+10.1 per cent). Mobil was recently fully divested by ExxonMobil and the new majority shareholder, NIPCO took over. Oando Plc last week reported a profit of N3.5 billion for 2016 after two years of losses.
The NSE Banking Indices rose 1.2 per cent, following gains in GTBank and Zenith Bank (1.4 per cent apiece.) In the same vein, the NSE Consumer Goods Index and NSE Insurance Index advanced 0.1 per cent each.
The bulls maintained their hold on the market on Thursday as the NSE ASI appreciated by 1.11 per cent to close at 25,755.18.. The appreciation recorded in the share prices of Lafarge Africa, Dangote Cement, GTBank, PZ Cussons and Transcorp were mainly responsible for the gain.
The total volume of stocks traded was 241.62 million shares worth N1.49 billion up by 32.2 per cent compared with N1.13 billion invested the previous day.
The three most actively traded sectors were: Financial Services (182.39 million shares), Services (25.08 million shares) and Consumer Goods (12.48 million shares), while the most actively traded stocks were: FBN Holdings (63.67 million shares), Fidelity Bank (43.60 million shares) and United Capital (23.89 million shares).
The market closed the week with a marginal decline of 0.03 per cent, making the NSE ASI index to be at 25,746.52. The depreciation recorded in the share prices of Lafarge Africa, Guinness, Zenith Bank, Total and Access Bank were mainly responsible for the loss recorded in the Index. But the last day decline was not enough to offset the gains recorded on Wednesday and Thursday.
Market turnover
Meanwhile, a total turnover of 786.176 million shares worth N5.828 billion in 14,343 deals were traded last week by investors down from of 3.195 billion shares valued at N104.217 billion that exchanged hands the previous week in 14,674 deals.
As usual, the Financial Services Industry remained the most activity in volume terms, recording 557.911 million shares valued at N2.669 billion traded in 7,340 deals. The sector thus contributed 70.97 per cent and 45.79 per cent to the total equity turnover volume and value respectively. The Consumer Goods Industry followed with 70.255 million shares worth N1.556 billion in 2,698 deals. The third place was occupied by Services Industry with a turnover of 50.558 million shares worth N70.773 million in 754 deals.
Trading in the top three equities namely – Fidelity Bank Plc, FBN Holdings Plc and Zenith International Bank Plc- accounted for 292.363 million shares worth N1.128 billion in 2,485 deals.
Also traded during the week were a total of 1,510 units of Exchange Traded Products (ETPs) valued at N4,113.20 in three deals compared with a total of 52,885 units valued at N425,464.25 transacted the preceding week in 19 deals.
A total of 11,064 units of Federal Government Bonds valued at N10.256million were traded in 21 deals, compared with a total of 2,870 units valued at N2.638million transacted two weeks ago in seven deals.
Price Gainers and Losers
An analysis of the gainers’ chart showed that 36 equities appreciated in price last week same as the previous week, while 22 equities depreciated in price, lower than 24) equities of the previous week. Learn Africa Plc led the table with 26.4 per cent, trailed by Seven-Up Bottling Company Plc with 26.3 per cent. Dangote Flour Mills Plc chalked up 21.6 per cent. NASCON Allied Industries Plc garnered 21.4 per cent, while Mobil Oil Nigeria Plc appreciated by 20 per cent. Oando Plc added 18 per cent. Livestock Feeds Plc went up by 16.9 per cent, while Nigerian Aviation Handling Company Plc, CAP Plc and UAC of Nigeria Plc chalked up 16.6 per cent, 15.7 per cent and 15.4 per cent in that order.
Conversely, United Bank for Africa Plc led the price losers with 8.8 per cent trailed by Trans-Nationwide Express Plc with 8.0 per cent. May & Baker Nigeria Plc shed 7.3 per cent, just as Eterna Plc and Conoil Plc depreciated by 5.3 per cent and 5.0 per cent respectively. FCMB Group Plc and Jaiz Bank Plc lost 4.9 per cent apiece, just as Fidson Healthcare Plc, Total Nigeria Plc and DN Meyer Plc 4.0 per cent, 3.9 per cent and 3.8 per cent respectively.
