Trading at the stock market was upbeat last week as the bulls returned after succumbing to profit taking the previous week. After going down by 0.3 per cent a week before last on profit taking, the market rebounded to hit a 10-month high as investors reacted to strong market fundamentals.
The Nigerian Stock Exchange (NSE) All-Share Index (NSE ASI) rose 3.38 per cent to close higher at 29,064.52, while market capitalisation added N328.8 billion to close at N10.048 trillion.
Similarly, all other indices finished higher during the week with the exceptionÂ Â of the NSE Oil/Gas Index that depreciated by 0.89 per cent while the NSE ASeM Index closed flat.Â Â The NSE Banking led with 7.64 per cent, trailed by the NSE Insurance Index with 3.75 per cent, while the NSE Consumer Goods Index appreciated by 1.71 per cent. The NSE Industrial Goods Index rose by 0.13 per cent.
Commenting on the market performance, analysts at MeristemÂ Securities Limited said:Â â€œWe reiterate that market fundamentals remain strong, particularly in light of improved stability and liquidity in the currency space and stability in the macro environment, as the Monetary Policy Committee (MPC), in line with consensus retained the Monetary Policy Rate (MPR) at 14 per cent. That said, investors were less swayed by the recently published first quarter (Q1) 2017 Gross Domestic Product GDP (-0.52 per cent) figure, which revealed that the Nigerian economy contracted for the fifth consecutive quarter and still remains in recession, as they remained enticed by the usual suspects, herein we refer to banking and consumer goods stocks.â€
Daily Market performance
Trading resumed for the week on a negative noteÂ on profit taking with the index sliding by 0.12 per cent to close at 28,078.30, while market capitalisation ended at N9.71 trillion. Mondayâ€™s performance was dragged by depreciations in Nigerian Breweries Plc, Ecobank Transnational Incorporated, Zenith Bank Plc, PZÂ Â Cussons and GTBank.
A look at the sectoral performance showed that threeÂ out of the fiveÂ Â indices appreciated. The NSEÂ Â Oil & Gas Index gainedÂ Â led, rising by 0.4 per cent on account of price appreciations in Seplat (+1.4 per cent) and Total (+1.9 per cent). The NSEÂ Â Insurance and NSEÂ Â Industrial Goods indicesÂ Â rose by improved 0.1 per cent apiece on the back of gains in Linkage Assurance PlcÂ Â (+3.5 per cent) and CCNN (+5.0 per cent).
Contrarily, theÂ NSE Consumer Goods Index slid 0.7 per cent due to declineÂ Â in Nigerian BreweriesÂ (-2.2 per cent) and Cadbury (-5.0 per cent)Â Â just as the NSE Banking Index fellÂ Â 0.03 per centÂ Â on the back of losses in ETI (-5.0), Zenith (-1.1 per cent) and UBA (-1.0 per cent).
The market recoveredÂ Â Â on Tuesday with the indexÂ rising by 0.05Â Â per cent to close atÂ 28,093.30, whileÂ Â market capitalisation closed higher at N9.712 trillion.Nigerian Breweries, Nestle, FBN Holdings, Zenith Bank and Flour Mills of Nigeria Plc boosted the positive performance.
In terms of trading,Â Â investors staked N2.18 billion on 212.68 million shares worth in 3,908 deals, down by 41.6 per cent from N3.74 billion invested the previous day.
The most actively traded sectors were: Financial Services (161.20 million), Oil and Gas (12.10 million) and Construction/Real Estate (11.10 million), while theÂ three most actively traded stocks were: FBN Holdings (27.86 million), Diamond Bank (27.66 million) and Fidelity Bank (19.22 million).
The equity market extended its gain, appreciating by 0.69 per cent to close at 28,286.43.Â The appreciation recorded in the share prices of Dangote Cement, FBN Holdings, ETI, Zenith Bank and UBA were mainly responsible for the gain recorded in the Index.
Performance across sectors was largely positive as all indices advancedÂ exceptÂ Â theÂ Â NSE Industrial Goods Index whichÂ Â went down by 0.7 per cent. The NSEÂ Â Banking Index appreciated the most, climbing 1.5 per cent on the back of gains in GTBank (+1.5 per cent), Zenith Bank (+1.7 per cent) and ETI (+1.9 per cent) while gains in AXA Mansard (+4.9 per cent) and NEM (+1.0 per cent) drove the NSE Insurance Index 0.7 per centÂ Â northwards. In the same vein, the NSEÂ Â Consumer GoodsÂ Â IndexÂ Â appreciated by 0.7 per cent just asÂ Â NSE Oil & Gas Index rose by 0.3 per cent.
The bullish run was extended toÂ Â third consecutive session on Thursday,Â Â with the indexÂ Â appreciated by 0.6 per cent to close at 28.467.61, buoyed byÂ appreciation across banking and consumer goods bellwethers â€“ GTBank, Stanbic, UBAÂ Â and Nestle,Â Â which outweighed the decline in Nigerian Breweries.
A look at the sectors indicated that four appreciated while one declined. The NSE Oil and Gas fell by 1.2 per centÂ Â on the account of losses in Mobil Oil(5.0 per cent) and Oando Plc (-2.2 per cent).
However, the NSEÂ Â Banking Index led, appreciating by 1.7 per cent following gains by GTBank (+3.1 per cent) and Stanbic (+4.0 per cent).Â Â The NSEÂ Â Insurance Index appreciated by 1.5 per cent on the back of gains in AXA MansardÂ (+4.6 per cent) and Custodian and Allied (+2.7 per cent). Similarly,Â Â the NSE Consumer Goods IndexÂ Â rose byÂ Â 0.2 per centÂ Â higher as a result of rallyÂ Â in NestleÂ Â (+3.6 per cent) and UAC of Nigeria (+4.5 per cent), whileÂ Â Â the NSEÂ Â Industrial Goods Index closed flat.
The market sustained its gaining streak on Friday, appreciating by 2.10 per cent to close at 29,064.52, followingÂ Â Â appreciation recorded in the share prices of FBN Holdings, GTBank, Access Bank, Dangote Cement and Zenith Bank were mainly responsible for the gain recorded in the Index.
The most actively traded sectors on Friday were: Financial Services (648.84 million), Construction/Real Estate (26.97 million) and Consumer Goods (19.68 million), whileÂ Â three most actively traded stocks were:Â Â Diamond Bank (204.11 million), Access Bank (144.72 million) and GT Bank (59.24 million).
Â Market turnover
In all, investors traded 1.877 billion shares worth N20.055 billion in 19,979 deals last week, down fromÂ Â 2.271 billion shares valued at N32.647 billion that exchanged handsÂ Â the previous week in 20,710 deals.
The Financial Services Industry remained that most active, accounting for 1.629 billion shares valued at N14.501 billion traded in 11,893 deals; thus contributing 86.8 per cent and 72.3 per cent to the total equity turnover volume and value respectively.
The Consumer Goods Industry followed with 57.531 million shares worth N2.189 billion in 2,616 deals, while the Conglomerates Industry placed third with a turnover of 52.220 million shares worth N101.384 million in 789 deals.
Also traded during the week were a total of 65 units of Exchange Traded Products (ETPs) valued at N1,967.85 executed in seven deals compared with a total of 1,470 units valued at N10,128.30 transactedÂ Â the previous week two deals.
Similarly, a total of 50 units of Federal Government Bonds valued at N43, 719.69 were traded last week in one deal, compared with a total of 6,308 units valued at N5.481 million transacted two weeks ago in three deals.
Price Gainers and Losers
Meanwhile, 44 equities appreciated in price during the week, higher than 30 equities of the previous week, while 25 equities depreciated in price lower than 31 equities of the previous week, while 104 equities remained unchanged.
UACN Property Development Company Plc led the price gainers with 25.8 per cent, trailed by FBN Holdings Plc with 21.9 per cent. AXA Mansard Insurance Plc appreciated by 20.2 per cent. Fidson Healthcare Plc, Cement Company of Northern Nigeria Plc and GTBank Plc garnered 18.4 per cent, 13.04 per cent and 12 per cent respectively.
Newrest ASL Nigeria Plc, Vitafoam Nigeria Plc, GSK Consumer Nigeria PlcÂ Â and Linkage Assurance Plc chalked up 10.1 per cent, 9.1 per cent, 8.8 per cent and 8.6 per cent in that order.
Â Conversely, Cadbury Nigeria Plc led the price losers with 11.5 per cent,Â trailed by Mobil Oil Nigeria Plc with 9.7 per cent. Learn Africa Plc and NPF Microfinance Bank Plc shed 9.4 per cent andÂ Â Â 8.0 per cent respectively.
Other top price losers included: John Holt Plc (6.3 per cent); NAHCO (5.8 per cent); Unity Bank Plc(5.1 per cent); African Paints (4.1 per cent); Meyer Plc (4.1 per cent) and Forte Oil Plc (3.9 per cent).