Market Gains N798bn in Four Days on Continuing Demand

WEEKLY REPORT

The Nigerian equities market maintained its bullish trend last week with  the Nigerian Stock Exchange (NSE) All-share  Index crossing the  30,000 mark to hit 31,371.63, while market capitalisation added N797.6 billion to close at N10.845 trillion.

Having   hit a 10-month level   with a growth of 3.38 per cent the previous week, the market sustained the positive performing rising by 7.94 per cent to close on continuing higher demand by investors last week.

Analysts at Cordros Capital attributed the positive development to improved macro-economic fundamentals, herein we refer to “the improvement in the currency space, especially at the parallel and Importers and exports FX market and data suggesting economic recovery is well underway, in particular, improved Purchasing Managers’ Index (PMI) survey result for the month of May.”

“ Asides that, the federal government continued to make strides in harnessing growth in the economy, supporting this, the acting  President Prof. Yemi Osinbajo signed into law two  Acts of Parliaments earlier passed by the National Assembly. The New laws focus on increasing access to affordable credit, and will be beneficial to MSMEs in particular,” Cordros Capital said.

At the end of the week, all the sectoral indicators appreciated save for the NSE  Oil & Gas Index that went down by4.5 per cent.  The NSE Industrial Goods recorded the highest growth of 9.17 per cent trailed by the NSE Consumer Goods Index that grew by 7.68 per cent. The NSE Insurance Index closed 6.08 per cent higher just as the NSE Banking Index   appreciated by 4.0 per cent.

Daily Market performance

The market remained upbeat through the four trading days, beginning with a growth of 0.7 per cent on Tuesday to close at 29,276.59. Tuesday’s   performance was buoyed by appreciations in banking stocks such as Guaranty Trust Bank Plc, FBN Holdings Plc, Zenith Bank Plc and Ecobank Transnational Incorporated (ETI).  The positive performance was across all the sectors except the oil and gas sector that went down by 2.0 per cent. The NSE Banking Index appreciated the most, rising by 2.2 per cent on the back of  gains by GTBank (+1.5 per cent) and Zenith Bank (+1.9 per cent). Similarly, gains by AXA Mansard Insurance Plc (+9.5 per cent) and Continental Reinsurance Plc (+0.8 per cent) bolstered the NSE Insurance Index to close up 2.0 per cent higher.

Similarly,   the NSE Industrial Goods Index appreciated by 0.7 per cent as a result of uptick in Dangote Cement (+0.2 per cent) and Lafarge Africa (+1.2 per cent), just as the NSE Consumer Goods Index grew by 0.3 per cent.

The market extended its uptrend for the second day and sixth consecutive session with the index appreciating 0.76 per cent to close at 29,498.31,

 High demand that pushed the shares of bellwethers such as Dangote Cement Plc, Nigerian Breweries Plc, FBN Holdings Plc and Access Bank Plc Nestle Nigeria Plc were responsible for the gains.

Similarly, the market capitalisation appreciated by 0.76 per cent to close at N10.20 trillion. The total value of stocks traded on that the day stood at  N3.34 billion,  down by 56.02 per cent from N7.59 billion recorded  the previous day, while total  volume of stocks traded was 343.19 million in 4,905 deals.

  The most actively traded sectors were: Financial Services (274.63million), Consumer Goods (29.01million) and Conglomerates (12.57million), while three most actively traded stocks were: FBN Holdings  (61.19million), Diamond Bank (41.86 million) and Fidelity Bank (38.77 million).

Performance across sectors was mixed as three of five indices appreciated. The NSE Insurance Index led sector gainers, appreciating with 2.5 per cent, just the NSE Industrial Index and NSE Consumer Goods Indices rose 1.9 per cent and 1.5 per cent in that order.

Conversely, the NSE Banking Index shed 3.1 per cent, while the NSE Oil & Gas Index closed 2.3 per cent lower.

The Nigerian bourse remained positive on Thursday with the index rising by 2.8 per cent to cross the 30,000 for the first time since last year June to close at 30,314.14

 The stocks that were responsible to the growth were: Dangote Cement, Nigerian Breweries, FBN Holdings and Zenith Bank. A further analysis of the performance indicated that four of the five sectors closed positively, save for the NSE Oil & Gas Index shed 0.2 per cent. This followed profit taking in Oando and Seplat that shed 5.3 per cent and 2.4 per cent in that order.

The NSE Consumer Index  appreciated by 2.5 per cent  on the back of  gains in Nigerian Breweries (4.9 per cent). Similarly, the Industrial Goods Index appreciated by 2.4 per cent on the account of price gains recorded by Dangote Cement Plc.

In a similar vein, the NSE Banking Index closed 1.7 per cent higher on the back of positive sentiments in  Zenith Bank,  UBA, Access Bank and ETI, just as the NSE Insurance  Index added 1.5 per cent.

The market recorded an unprecedented growth on Friday as the bulls consolidated their hold on the market. Consequently, the index posted its highest daily growth in the recent times, apreciated by 3.49 per cent to close at 31,371.63.

Gains in FBN Holdings, Nigerian Breweries, Access Bank, Dangote Cement and Zenith Bank were mainly responsible for the gain recorded in the index on the last day of the week.

 

Market turnover

Meanwhile, trading at the stock market was for four days as the Federal Government of Nigeria declared Monday 29th May, 2017 as Public Holiday to mark the 2017 Democracy Day Celebration.

 Investors traded a total of  2.319 billion shares worth N23.813 billion in 22,310 deals, up from  1.877 billion shares valued at N20.055 billion that exchanged hands  the previous week in 19,979 deals.

The Financial Services Industry led the activity chart with 1.950 billion shares valued at N15.479 billion traded in 14,381 deals; thus contributing 84.12% and 65.00% to the total equity turnover volume and value respectively. The Consumer Goods Industry followed with 156.358 million shares worth N2.875 billion in 2,804 deals. The third place was occupied by Conglomerates Industry with a turnover of 70.452 million shares worth N168.377 million in 739 deals.

Also traded during the week were a total of 52 units of Exchange Traded Products (ETPs) valued at N13,802.70 executed in six deals compared with a total of 65 units valued at N1,967.85 transacted  the previous week in seven deals. A total of 3,786 units of Federal Government Bonds valued at N3.806 million were traded in four deals, compared with a total of 50 units valued at N43,719.69 transacted last week in one  deals two weeks ago.

 

Price Gainers and Losers

The price movement chart showed that  61 equities appreciated  higher than 44 equities of the previous week, while only 12 equities depreciated, lower than the  25 equities of the previous week. FBN Holdings Plc led the price gainers for the week, rising by 31.2 per cent. UAN Property Development Company Plc trailed with 25.2 per cent, while AXA Mansard Insurance Plc chalked up 24.7 per cent.

May & Baker Nigeria Plc garnered 22.6 per cent, just as Champion Breweries Plc and Diamond Bank Plc rose by 19.9 per cent and 19.3 per cent in that order. Other top price gainers are: Honeywell Flour Mills Plc (18.8 per cent); Fidelity Bank Plc (17.8 per cent); Access Bank Plc (17.6 per cent) and Dangote Cement Plc (15.6 per cent).

Conversely, Seven-Up Bottling Company Plc led the price losers with 14.2 per cent, followed by Linkage Assurance Plc with a decline of 12.7 per cent. Oando Plc went down by 10.3 per cent just as Seplat, Nigerian Enamelware Plc and University Press Plc shed 10.2 per cent, 4.9 per cent, and 4.9 per cent respectively. Other top price losers included:  Jaiz Bank Plc (4.2 per cent) Caverton(4. 1 per cent); GTBank Plc (3.6 per cent) and Medview Airline Plc respectively.