Stock Market Rebounds, Gains 2.5% on Renewed Optimism



The stock market shrugged losses of the previous week and closed 2.47 per cent higher last week as the bulls resurged to take control of the market. Trading throughout the week was broadly bullish as the market closed positive on all the trading sessions.

The bulls resurged with investors taking position in value stocks – especially the banking stocks – ahead of the half year earnings season.

There was a renewed optimism among investors. As a result, the Nigerian Stock Exchange (NSE) All-Share Index rose by 2.47 per cent to close at 33,261.66, pushing the month-to-date growth to 0.44 per cent and year-to-date growth to 23.77 per cent.

Apart from the NSE ASI that rose 2.47 per cent,  all other  major sectoral indices finished higher  with the exception of the NSE ASeM index that closed flat.

The NSE Banking Index appreciated by 6.1 per cent to lead the others.

The NSE Industrial Goods Index went up by 2.94 per cent, while the NSE Oil & Gas Index garnered 2.31 per cent. The NSE Insurance Index closed 0.88 per cent higher, while the NSE Consumer Index gained 0.71 per cent.

Daily Market Performance

When trading resumed on Monday, the market remained bullish as bargain hunting activities   in the banking stocks assisted to sustain the bull run. Specifically, the Nigerian Stock Exchange (NSE) All-Share Index appreciated by 0.48 per cent to close at 32,614.60, while market capitalisation added N53.6 billion to close at N11.2 trillion.

Investors swooped on banking stocks, taking position ahead of half year corporate results announcement. Out of the 26 price gainers, 12 were banking stocks. United Bank for Africa Plc, Access Bank Plc, Unity Bank Plc appreciated by 4.9 per cent apiece, while Ecobank Transnational Incorporated garnered 3.8 per cent.

 Zenith Bank Plc chalked up 3.4 per cent, just as Diamond Bank Plc and  FCMB Holdings Plc  went up by2.4 per cent each.  Fidelity Bank Plc and FBN Holdings Plc gained 2.3 per cent apiece, while Wema Bank Plc, Jaiz Bank Plc and Guaranty Trust Bank Plc appreciated by 1.8 per cent, 1.5 per cent and 0.06 per cent in that order.

However, Flour Mills of Nigeria Plc recorded the highest price gainer for the day, rising by 9.7 per cent.  Redstar Express Plc and C & I Leasing Plc followed with 5.0 per cent apiece.

Conversely, 15 stocks depreciated led by Union Bank of Nigeria Plc with 8.8 per cent. University Press Plc and Skye Bank Plc trailed, shedding 5.0 per cent apiece.

A.G Leventis Nigeria Plc and Vitafoam Nigeria Plc went down by 4.8 per cent each, just as AXA Mansard Insurance Plc, Cadbury Nigeria Plc and John Holt Plc declined by 4.7 per cent, 4.0 per cent and 3.5 per cent respectively.

A look at the performance across sectors showed that three appreciated while two declined. The NSE   Banking Index led the sectoral performance with 3.0 per cent.

The NSE Oil &Gas Index trailed with a gain of   0.7 per cent due to positive sentiment towards Oando Plc (+4.8 per cent). Similarly, the NSE Industrial Goods Index added 0.3 per cent as a result of price appreciation in Meyer Plc (+4.3 per cent).

On the negative side, the NSE Consumer Goods Index shed 0.7 per cent on the back losses suffered by Nigerian Breweries (-0.6 per cent).  The NSE Insurance Index fell by 0.3 per cent following   depreciation in the shares of AXA Mansard (-4.8 per cent).

The market continued to rally on Tuesday with the index adding 0.65 per cent to close at 32,827.98. The appreciation recorded in the share prices of GTBank, UBA, Access Bank, Dangote Cement, and Zenith Bank Plc boosted the performance.

Investors staked N2.03 billion on 218.76 million shares. The most actively traded sectors were: Financial Services (171.42 million shares, Conglomerates (10.95 million shares), and Consumer Goods (9.27 million shares), while the three most actively traded stocks were: UBA (35.26 million shares), Niger Insurance (19.99 million shares) and Zenith Bank (18.27 million shares).

Performance across sectors was positive as all indices trended northwards. The NSE Banking Index advanced the most, adding 2.0 per cent on the back of sustained interest in GTBank  and Zenith Bank.  The NSE Industrial  Index appreciated by 0.3 per cent, while the NSE Consumer Goods Index gained 0.2 per cent.

The sustained bullish run for three days pushed the market capitalisation of the Nigerian bourse by N180 billion, rising from  N11.187 trillion  on Monday to N11.367 trillion on Wednesday.

 Analysts at Meristem Securities Limited had said “the gain in the market (yesterday) could be attributed to the continued share price appreciation of some banking sector heavyweights, as well as the slight gains recorded on some other large cap counters.”

 In all, 29 stocks appreciated on Wednesday, while 15 depreciated. Seven-Up Bottling Company Plc recorded the highest price gain of 8.8 per cent close at 89.23, trailed by Neimeth International Pharmaceuticals with 7.1 per cent. CAP Plc and Linkage Assurance   chalked up 5.0 per cent apiece, while Ecobank Transnational Incorporated garnered 4.9 per cent.

N.E.M Insurance Plc and Avon Crowncaps Plc added 4.8 per cent and 4.6 per cent respectively.  Learn Africa Plc, May & Baker Nigeria Plc and Eterna Oil Plc went up by 3.6 per cent, 3.1 per cent, and 2.6 per cent in that order.

 On the bears’ side, University Press Plc led the price losers with 9.6 per cent to close at N2.92 per share. Champion Breweries Plc trailed with 7.5 per cent, while United Capital Plc shed 7.2 per cent. Conoil Plc and Capital Hotel Plc declined by 5.0 per cent and 4.8 per cent respectively.

The market followed the bullish pattern on Thursday and Friday, 0.8 per cent and 0.04 per cent respectively to end the week positively.

Market Turnover

In terms of market turnover, investors staked N13.993 billion on 1.272 billion shares in 19,385 deals last week, up from N12.295 billion invested in 1.061 billion shares in 18,847 deals the previous week.

However, the  Financial Services Industry remained the most active leading the activity chart with 1.086 billion shares valued at N9.743 billion traded in 11,229 deals, thus contributing 85.33 per cent  and 69.63 per cent  to the total equity turnover volume and value respectively. The Consumer Goods Industry followed with 44.786 million shares worth N1.536 billion in 2,853 deals. The third place was occupied by Conglomerates Industry with a turnover of 38.104 million shares worth N75.759 million in 727 deals.

Trading in the top three equities, United Bank for Africa Plc, FBN Holdings Plc and Zenith International Bank Plc, accounted for 505.388 million shares worth N5.454 billion in 4,009 deals, contributing 39.73 per cent and 38.98 per cent to the total equity turnover volume and value respectively.

Also traded during the week were a total of 25,540 units of Exchange Traded Products (ETPs) valued at N2.646 million executed in 10 deals compared with a total of five  units valued at N484.85 transacted  the previous week in one deal.

Similarly, a total of 2,977 units of Federal Government Bonds valued at N2.946 million were traded last week in 11 deals, compared with a total of 358 units valued at N344,610.97 transacted  the previous  week in  seven deals.

Price Gainers and Losers

Meanwhile, 48 equities appreciated in price during the week, higher than the 16 equities of the previous week, while  27 equities depreciated in price, lower than 51 equities of the previous week.

Neimeth International Pharmaceuticals Plc led the price gainers with 24.6 per cent, followed by Unity Bank Plc which chalked up 19.6 per cent. Forte Oil Plc appreciated by 15.3 per cent, just as Avon Crowncaps & Containers Plc gained 14.5 per cent. N.E.M Insurance Plc, Ecobank Transnational Incorporated rose 14.1 per cent and 14.0 per cent respectively.

Other top price gainers were: Mobil Oil of Nigeria Plc (9.9 per cent); Flour Mills of Nigeria Plc (9.7 per cent); Seven-Up Bottling Company of Nigeria Plc (8.8 per cent); and Access Bank Plc (8.4 per cent).

On the flipside, Conoil Plc led the price losers, shedding 17.4 per cent, trailed by University Press Plc 14.1 per cent. Champion Breweries Plc, Union Bank Plc and Jaiz Bank Plc went down by 12.2 per cent, 9.9 per cent and 9.0 per cent in that order.

Presco Plc declined by 4.9 per cent, just as Capital Hotel Plc, A.G Leventis Nigeria Plc and B.O.C Gases Plc closed 4.8 per cent lower apiece.