Equities Market Hits New High as Bulls Dominate

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WEEKLY REPORT  

The Nigerian equities market sustained its bullish performance last week as investors’ sentiments remained positive, hoping for impressive half year (H1) corporate earnings.  Although the market has remained bullish in recent weeks, investors’ reactions to positive H1 earnings reported by Unilever Nigeria Plc and Lafarge Africa Plc sustained the momentum. As a result, the Nigerian Stock Exchange (NSE) All-Share Index (ASI) rose by 2.28 per cent to close the week at 34,020.37, which is a new month high.  With the performance, the market has risen by 2.73 per cent this month so far and 26.6 per cent year-to-date.

According to analysts at Cordros Capital Limited, in line with their expectation, the  NSE Industrial Goods and NSE Consumer Goods  indices   recorded the highest gains of 6.9 per cent and 2.9 per cent. They said rise was boosted by   investors’ interest, following the release of impressive Q2 results by Unilever and Lafarge Africa.

“Though, the banking sector traded negative for the first two days of the week, interest was renewed on Wednesday with extension to Friday, as the news of board meetings for interim dividends and consequent approval by the board of drove sentiment across most sector counters,” they said.

Daily Market Performance

Still maintaining the bullish posture of the previous week, the stock market opened this week positively with the index rising by 0.12 per cent to close at 33,301.43. The appreciation recorded in the share prices of Nigerian Breweries, Forte Oil, Zenith Bank, Dangote Cement, and Nestle bolstered the performance.  On the first day of the week investors traded 322.81 million shares worth N2.73 billion.

The most actively traded sectors were: Financial Services (279.97 million shares), Consumer Goods (21.25 million shares), and Conglomerates (8.41 million shares), while the   three most actively traded stocks were: Niger Insurance (150.05 million shares), FBN Holdings (35.97 million shares) and FCMB Group (14.84 million shares).

It was a mixed performance across sectors as three declined, while two appreciated. The NSE Insurance Index declined the most, shedding 0.6 per cent due to price depreciation in AIICO (-4.9 per cent) and Continental Reinsurance (-4.4 per cent). The NSE Banking   and NSE Oil & Gas indices fell by 0.5 per cent  apiece. On the positive side, the NSE Consumer Goods Index rose 1.3 per cent on the back of a broad-based rally following impressive results of Unilever Nigeria Plc. The NSE Industrial Goods Index appreciated by 0.03 per cent.

The market extended is rally to the second day of the week, pushing the index up by 0.41 per cent to close at 33,436.61. The performance was enhanced by gains recorded by Nigerian Breweries Plc, Unilever Nigeria Plc and Dangote Cement Plc.

It was, however, mixed outing in terms of sectoral performance with  three of five indices  declining compared with  two that advanced.

The NSE  Insurance Index dipped the most, depreciating by  1.7 per cent following losses by  AXA Mansard (-4.9 per cent) and Custodian and Allied Plc (-4.8 per cent). Similarly, the NSE Oil & Gas Index went down by 0.6 per cent due to   weaker sentiment towards Forte Oil (-4.2 per cent) and Oando (-0.3 per cent). The third decliner was the NSE Banking Index that fell by 0.3 per cent, propelled by losses in Zenith Bank  (-1.9 per cent) and Access Bank (-0.8 per cent).

The NSE Consumer Index led the gainers with 1.4 per cent followed by the NSE Industrial Goods Index that added 0.4 per cent.

The bulls retained their hold on the market following renewed buy sentiments in banking stocks. Consequently, the all-share index appreciated by 0.23 per cent to close at 33,514.93. Market capitalisation rose by same margin to close higher at N11.55 trillion.

The appreciation recorded in the share prices of Nigerian Breweries, FBNH, Seplat, Zenith Bank, and GTBank was mainly responsible for the gain recorded in the index

Investors staked N3.24 billion on 331.43 million shares down by 84.99 per cent from N21.61 billion invested the previous day.

 The most actively traded sectors were: Financial Services (273.58 million shares), Conglomerates (20.65 million shares), and Consumer Goods (17.55 million shares), while the three most actively traded stocks were: Zenith Bank (33.11 million shares), UBA (28.24 million shares) and FBN Holdings (26.55 million shares).

0.54%

The market rose for the fourth  straight day on Thursday with the index rising by 0.54 per cent to close at   33,695.83 , while market capitalisation increased N62.3 billion  to close at N11.6 trillion.

Today’s positive performance was largely driven by Sustained interest in Dangote Cement, Nestle and Lafarge was responsible for the growth recorded.

Sector performance was broadly bullish four of the indices closed in the green while the NSE Insurance Index which slid 0.2 per cent was the lone loser.

 The NSE Industrial Goods Index led gainers with a 2.2 per cent, followed by the NSE Banking and NSE Consumer Goods indices that climbed 0.5 per cent apiece.

The market closed on Friday higher, rising by 0.96 per cent to end the week with an overall appreciation of 2.28 per cent.  Investors traded 378.18 million shares worth N5.11 billion in 4,516 deals.

Market Turnover

In all, investors exchanged 3.628 billion shares worth N34.886 billion in 19,834 deals were traded last week, up from 1.272 billion shares valued at N13.993 billion that exchanged hands the previous week in 19,385 deals.

The Financial Services Industry remained the most active, trading 3.393 billion shares valued at N28.711 billion traded in 11,237 deals; thus contributing 93.55% and 82.30% to the total equity turnover volume and value respectively. The Consumer Goods Industry followed with 79.473 million shares worth N3.418 billion in 3,101 deals, while the third place was occupied by Conglomerates Industry with a turnover of 70.175 million shares worth N113.486 million in 872 deals.

Trading in the top three equities namely – United Bank for Africa Plc, Continental Reinsurance Plc and Niger Insurance Plc accounted for 2.515 billion shares worth N20.825 billion in 1,191 deals.

Price Gainers and Losers

Meanwhile, 36 equities advanced in price last week, compared with 48 equities of the previous week. On the negative side, 33 equities depreciated as against 27 equities of the previous week.

Skye Bank Plc led the price gainers with 19.6 per cent, followed by Unilever Nigeria Plc with 16.1 per cent. Lafarge Africa Plc appreciated by 15.3 per cent, just as Neimeth International Pharmaceuticals Plc chalked up 13.5 per cent. Okomu Oil Palm Plc garnered 8.3 per cent, while Honeywell Flour Mills Plc rallied 7.6 per cent, just as Transnational Corporation of Nigeria Plc and Champion Breweries Plc added 7.1per cent, 6.4 per cent respectively.

Ecobank Transnational Incorporated and African Prudential Plc went up by 6.1 per cent and 5.3 per cent in that order.

Conversely, AXA Mansard Insurance Plc led the price losers with 8.9 per cent, trailed by A. G. Leventis Nigeria Plc which shed 7.6 per cent. Nigerian Aviation Handling Company Plc depreciated by  6.0 per cent, just as Continental Reinsurance Plc  and Presco Plc closed the week lower by 5.8 per cent and 5.4 per cent respectively.

Berger Paints Nigeria Plc shed 5.3 per cent, while MRS Oil Nigeria Plc and NASCON Allied Industries Plc declined by 4.9 per cent each. May & Baker Nigeria Plc and NPF Microfinance Bank Plc depreciated by 4.7 per cent and 4.3 per cent in that order.