An unprecedented surge inÂ Â Â investorsâ€™ appetite for risk assets lifted the Nigerian equities market to nine-month high as the Nigerian Stock Exchange (NSE) All-Share IndexÂ (ASI) rose by 7.46per cent to close the week at 28,192.46. In a similar vein, market capitalisationÂ gained N676billion to be at N9.746trillion.
It wasÂ a record breaking week with the NSE ASIÂ posting the largest singular gain of 3.18per cent , since 15th of June 2016.
Analysts at CordrosÂ Â Capital Limited, an investment banking firm,Â Â said judging by market activity in the past three weeks, and more specifically, the spike in the number of deals and volume traded last week, â€œwe sense improved investors, both local and foreign, appetite for risk assets on domestic bourse, following the: reduced apprehension in the macroeconomic environment; impressive 2016 full year and first quarter (Q1) performance of highly capitalised names, andÂ Â increased confidence about the stability and liquidity of the foreign exchange (FX).
Apart from the ASI, that appreciated, all other indices finished higher during the week with the exception of the NSE ASeM Index that closed flat.Â
Daily Market Performance
The stock market opened for trading in the week on a positive note, sustainingÂ its bullish trend, following high demand for fast moving consumer goods, insurance and banking stocks.Â Â Having gained 1.85 per cent last week, some level of profit taking was expected as trading resumed for the week yesterday. However, it appears investors are delaying their profit taking as bargain hunting remained high. Consequently, the NSE All-Share Index appreciated by 0.70 per cent to close at 26,418.33, while market capitalisation added N63.2 billion to close at N9.1 trillion.
Mondayâ€™sÂ performance reduced the year-to-date decline to 1.70 per cent. The market recorded 26 price gainers, while 12 stocksÂ depreciated.Â Â Although bellwether stocks such as Nestle Nigeria Plc, Nigerian Breweries Plc, Zenith Bank Plc, GTBank Plc were among the price gainers, Oando Plc led the chart with 10.0 per cent, trailed by Seven-Up Bottling Company Plc with 9.7 per cent. Continental Reinsurance Plc and AIICO Insurance Plc chalked up 9.4 per cent and 7.5 per cent respectively among others.
Conversely, Champion Breweries Plc led the price losers with 4.6 per cent, followed by Jaiz Bank Plc with a decline of 4.5 per cent. African Prudential Plc and Dangote Flour Mills Plc shed 3.3 per cent and 2.3 per cent in that order.
In terms of sectoral performance,Â Â all indices advanced exceptÂ Â Â the NSE Industrial Goods IndexÂ Â that shed 0.02 per cent following price loss byÂ Â Cement Company of Northern Nigeria(-1.9 per cent). The NSE Consumer Goods Index recorded the highest gain (+2.0) on account of buy sentiment in NestleÂ (+3.4 per cent), Seven-Up Bottling Company Plc (+9.7 per cent) and Nigerian Breweries Plc (+2.7 per cent). Similarly, the NSE Insurance IndexÂ went up by 1.8 per centÂ Â on the back of price appreciations in Continental (+9.4 per cent) and AIICO (+7.6 per cent) while the NSEÂ Â Oil & Gas and NSEÂ Â Banking indices appreciated 1.4 per cent and 0.4 per centÂ Â respectively.
FollowingÂ continuous bull run, the marketÂ rallied to a year highÂ on Tuesday after gaining for the eight consecutive days.Â Â Sustained demand lifted the NSE ASI by 1.28 per cent to close at yearâ€™s high of 26,756.21, while market capitalisation added N116.8 billion to be at N9.25 trillion. The gain was spurred mainly by demand for stocks such asÂ Â Oando Plc, Access Bank Plc, FBN Holdings Plc, Guaranty Trust Bank Plc, Dangote Cement Plc, Nigerian Breweries Plc and Zenith Bank Plc.
According to analysts at Meristem Securities Limited, the increased investorsâ€™ appetite witnessed may be traced to the streams of positive news inflow as regards companiesâ€™ performance and economic recovery.
â€œWhilst we do not rule of some profit-taking activities at the end of the week, we reiterate that the current positive trend may persist,â€ they stated.
The bulls visited 34 stocks, while only six stocks played host to the bears. Just like Monday, Oando Plc led the price gainers with 10.1 per cent, trailed by Fidson Healthcare Plc with 9.5 per cent. Transcorp Plc chalked up 7.1 per cent just as May & Baker Nigeria Plc, Portland Paints and Products, Cement Company of Northern Nigeria Plc and Access BankÂ Â Plc appreciated by 5.9 per cent, 4.9 per cent, 4.8 per cent and 4.8 per cent in that order among others.
Conversely, Linkage Assurance Plc led the price losers with 3.7 per cent,Â Â Â followed by Dangote Sugar Refinery Plc with 3.5 per cent. Total Nigeria Plc shed 2.3 per cent, just as Lafarge Africa Plc and Seven-Up Bottling Company Plc depreciated by 2.2 per cent and 1.8 per cent respectively.
Â However, the value of stocks traded fell by 13.5 per cent to N2.815 billion, while volume rose by 101.4 per cent to 539.23 million shares. The three most actively traded sectors were Financial Services (488.45 million), Conglomerates (23.43 million) and Consumer Goods (9.78 million), whileÂ the three most actively traded stocks were: FCMB (243.86 million), Zenith Bank (52.29 million) and UBA (42.52 million).
Performance across sectors remained positive with three of the sectors appreciating, while only the NSE Industrial Goods Index, which dipped 0.3 per cent on account of profit-taking in Lafarge Africa.
Â TheÂ NSE Banking Index led sector gainers, rising by 2.2 per cent, followed by the NSEÂ Oil & Gas Index with 0.7 per cent growth.
TheÂ bulls tightenedÂ their hold on the Nigerian Bourse on Wednesday as investors continue to react to improving macroeconomic fundamentals, particularly the recent introduction of an autonomous FX market for investors and exporters. At the close of trade, the NSE ASI rose 2.9 per cent to reach a 6-month high of 27,546.68 while the year to date returnÂ Â swung positive for the first time in the year to close at 2.5 per cent. Although the positive close was driven by broad-based buying interest across large, mid and small cap stocks, market bellwethers such as Dangote Cement, Nigerian Breweries, and NestleÂ supported performance. Investors gained N273.3 billion as market capitalisation advanced to N9.5 trillion.
In terms sectoralÂ movement, on the NSE Industrial Goods IndexÂ fell byÂ Â 0.9 per cent. TheÂ Â NSE Banking IndexÂ Â led with a gain ofÂ Â 4.1 per cent on the back of a broad-based rally in banking stocks across Tiers â€“ Zenith (+5.6 per cent), GTBank (+2.4 per cent), UBA (+7.2 per cent), Fidelity Bank (+8.8 per cent) and Union BankÂ Â (+3.0 per cent). The NSE Consumer Goods Index trailed with 3.6 per cent, whileÂ theÂ NSE Oil & Gas Index added 2.4 per cent. The NSE Insurance Index closed higher by 0.7 per cent.
In line with expectation, the bullish run in the equities market continued on Thursday, rising by 3.2 per cent to close at 28,423.70. As with previous sessions,Â theÂ positive performance was driven by rally across sectors, but was largely buoyed by gains in bellwethers such as Dangote Cement, Nigerian Breweries Plc and GTBank.Â
Meanwhile, investors traded 3.255 billion shares worth N28.738 billion in 25,370 deals, up fromÂ 1.154 billion shares valued at N10.439 billion that exchanged handsÂ in 16,676 deals the previous week.
The financial services industry led the activity chart with 2.716 billion shares valued at N17.230 billion traded in 15,103 deals, thus contributing 83.4 per centÂ and 59.9 per cent to the total equity turnover volume and value respectively. The Consumer Goods Industry followed with 185.750 million shares worth N6.596 billion in 3,817 deals. The third place was occupied by Conglomerates Industry with a turnover of 156.010 million shares worth N385.427 million in 1,340 deals.
Trading in the top three Equities namely, FBN Holdings Plc, FCMB Group Plc and Zenith Bank PlcÂ accounted for 1.419 billion shares worth N8.185 billion in 5,117 deals.
Also traded during the week were a total of 948 units of Exchange Traded Products (ETPs) valued at N16,591.16 executed in 14 deals compared with a total of 20 units valued at N110,000.00 transactedÂ Â the preceding week inÂ one deal.
A total of 5,201 units of Federal Government Bonds valued at N5.400 million were traded last week in three deals, compared with a total of 1,582 units valued at N1.608 million transacted two weeks ago in 10 deals.
Price Gainers and Losers
The price movement chart showedÂ 57Â equitiesÂ that appreciated , up fromÂ Â 43Â Â equities of the previous week, while 13Â Â equities depreciatedÂ compared withÂ Â 16Â Â equities of the previous week. May & Baker Nigeria Plc led the price gainers with 31.9 per cent. Ecobank Transnational Incorporated trailed with 22.5 per cent, just as Fidson Healthcare Plc and PZ Cussons Nigeria Plc appreciated by 20.4 per cent.
Oando Plc and Unity Bank Plc appreciated by 20.2 per cent and 20 per cent in that order, just asÂ Eterna Plc, Diamond Bank Plc, Nigerian Breweries Plc and Transcorp Plc chalked up 17.8 per cent, 17.6 per cent, 17.1 per cent and 16.3 per cent respectively.
Conversely, Jaiz Bank Plc led the price losers, shedding 9.1 per cent, trailed byÂ Â Seplat with a decline of 5.8 per cent. Newrest ASL Nigeria Plc and Neimeth International Pharmaceuticals PlcÂ went down by 5.6 per cent, 5.3 per centÂ and 4.8 per cent.
Other top price losers were: B.O.C Gases Plc, Trans-Nationwide Express Plc (4.8 per cent apiece); A-G Leventis Nigeria Plc (4.1 per cent); Lafarge Africa Plc (3.0 per cent); AIICO Insurance Plc (1.8 per cent0 and Learn Africa Plc (1.1 per cent).