Market Records 39% Year-to-date Growth 

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Weekly Report

The Nigerian equities last week hit a new high to record year-to-date growth of 39.3 per cent following consistence positive investors’ sentiments.   After a 16-day bullish streak in equities which ended the previous Friday, the market witnessed some profit taking in the early trading sessions of this week. However,   the bulls returned on Tuesday and held on for four consecutive days. Consequently, the Nigerian Stock Exchange (NSE) All-Share Index gained 1.52 per cent to close at 37,425.56, while market capitalisation added N194 billion to close at N12.899 trillion.

Similarly, all other indices finished higher during the week with the exception of the NSE Banking and the NSE Oil/Gas Index that depreciated by 1.64 per cent and 3.05 per cent respectively.

Daily Market Performance

In line with the bearish trend of last day of the previous week, the market depreciated further on Monday, which was the last trading day of July. The index dropped by 2.7 per cent to close at 35,844. The depreciation partly stemmed from a decline in the share prices of Dangote Cement, GTBank, Lafarge Africa, Zenith Bank, and Nigerian Breweries Plc.  Despite the decline, the market ended the month with   growth of 8.2 per cent and year-to-date appreciation of 33.3 per cent.

A further analysis of the performance showed that investors traded 490.16 million shares worth N5.27 billion in 5,558 deals.

The most actively traded sectors were: Financial Services (387.94 million shares), Conglomerates (49.98 million shares), and Consumer Goods (23.14 million shares).  Similarly, the three most actively traded stocks were: FCMB (127.60 million shares), FBNH (58.34 million shares) and Transcorp (49.70 million shares).

Performance across sectors was mixed as three of five indices closed in the red. The NSE Industrial Goods Index led, falling by  fell 4.7 per cent due to losses in Dangote Cement while the NSE  Banking Index depreciated 3.8 per cent following profit taking in GTBank and Zenith Bank.  In the same vein,  the NSE Consumer Goods Index went down by  0.4 per cent on the back of losses in Nigerian Breweries.

 On the positive side,   the NSE Insurance index led gainers, rising by up 1.2 per cent  trailed by the NSE Oil & Gas Index that appreciated 0.3 per cent.

However, on Tuesday, which was the first day of the month of August, the market rebounded boosted by Dangote Cement Plc  following acquisition of 2.3 per cent by foreign investors.Some foreign investors  bought 2.3 per cent  stake or 416 million shares  in Dangote Cement Plc for N86.1 billion ($236 million).

Although the identity of the new foreign investors who bought 2.3 per cent yesterday could not be ascertained, the news lifted the price of the stock by 7.26  per cent  or N16.25  from N223.75 to N240 per share to record highest price gain in absolute terms.

Reacting to the transaction, a leading stockbroker, Mr. David Adonri said it as good development for both the company and the Nigerian economy.

“As you are aware, Dangote Cement is a multinational entity. It is capable of eliciting global interest. New foreign investment can be viewed from the perspective that the company is performing very well and that the Nigerian economy is providing it with necessary enabling environment,” he said.

That acquisition that led to the rise in price of Dangote Cement lifted the index by 2.45 per cent to close at 36,720.62.

The market recorded its second positive performance for the month August as the bulls remained in control on Wednesday. This followed barging hunting by investors in value stocks, a development that made the benchmark index  to close 0.50 per cent higher at 36,905.06. Market capitalisation added N64.3 billion to close at N12.7 trillion.

C & I Leasing Plc led the price gainers, chalking up 10 per cent as investors continued to react to the positive results reported by the company for the half year ended June 30, 2017.

The company grew its profit after tax by 298 per cent to N580 million in 2017, from N145.4 million in 2016. The Managing Director of the company, Mr. Andrew Otike-Odibi  attributed the improved  financial performance to the  strength in the diversity of  its  business.

Lafarge Africa Plc trailed as the second highest price gainer, rising by 5.0 per cent, just as Guinness Nigeria Plc went up by 4.9 per cent. Skye Bank Plc and Caverton Offshore Services Group Plc appreciated by 4.6 per cent and 4.3 per cent respectively.

Other top price gainers were Jaiz Bank Plc (4.3 per cent); Flour Mills of Nigeria Plc (4.2 per cent) and United Capital Plc(3.9 per cent).

Conversely, Okomu Oil Palm Plc led the price losers with 5.0 per cent, trailed by Continental Reinsurance Plc that depreciated  by 4.9 per cent. Mobil Oil Nigeria Plc and Nigerian Aviation Company Plc shed 4.8 per cent apiece among others.

In terms of sectoral performance, three sectors appreciated, while two depreciated. The NSE Industrial Goods Index led the gainers with 1.93 per cent    following investor interests in Lafarge Africa  and Cement Company of  Northern stocks. The NSE Consumer Goods Index followed with  1.63 per cent, while the NSE Banking  Index appreciated by 0.49 per cent.

On the flipside, the NSE Oil and Gas Index dominated, falling 2.43per cent due to  sell-off in Seplat, while the NSE  Insurance Index  shed 0.49 per cent.

The market sustained the bullish run on Wednesday as the benchmark index appreciated 0.

The equity market surged further on Thursday, growing by 0.62 per cent and crossing the 37,000 mark to close at 37,135.23. Similarly, the market capitalisation closed higher at N12.80 trillion. The appreciation recorded in the share prices of Lafarge Africa, Access Bank, Nigerian Breweries, Zenith Bank, and GTBank was mainly responsible for the gain recorded on Thursday.

Investors traded   412.12 million shares worth N4.72 billion in 4,207 deals.  The three most actively traded sectors were: Financial Services (206.31 million shares), Agriculture (134.81 million shares), and Conglomerate (23.52 million shares), while  the three most actively traded stocks were: Livestock Feeds (134.48 million shares), Access Bank (73.53 million shares) and GTBank (48.90 million shares). 

Market Turnover

Meanwhile, market turnover soared last week following huge transactions in the shares of Dangote Cement Plc. As a result, a total of N114.117 billion was staked on 2.518 billion shares in 23,546 deals, as against N30.636 billion invested in  2.211 billion shares in 26,287 deals the previous week.

However, the Financial Services Industry led the activity chart, in volume terms,  with 1.507 billion shares valued at N16.354 billion traded in 12,511 deals; thus contributing 59.85 per cent and 14.33 per cent to the total equity turnover volume and value respectively. The Industrial Goods Industry followed with 441.914 million shares worth N89.356 million in 1,282 deals. The third place was occupied by Conglomerates Industry with a turnover of 184.608 million shares worth N701.665 million in 929 deals.

 Dangote Cement Plc, Access Bank Plc and Zenith Bank Plc accounted for 833.966 million shares worth N95.969 billion in 3,203 deals, contributing 33.12 per cent and 84.10 per cent to the total equity turnover volume and value respectively.

Also traded during the week were a total of 1.166 million units of Exchange Traded Products (ETPs) valued at N16.169 million executed in 17 deals compared with a total of 1.732 million units valued at N13.711 million transacted  the previous week  in 19 deals.

A total of 5,850 units of Federal Government Bonds valued at N5.702 million were traded last week in seven deals, compared with a total of 750 units valued at N695,229.29 transacted the previous week in eight   deals. 

Price Gainers and Losers

A look at the price movement chart showed that 38 equities appreciated in price during the week, lower that 51 equities of the previous week, while 28 equities depreciated in price, higher than 23 equities of the previous week.

C & I Leasing Plc led the price gainers with 44.9 per cent, trailed by Dangote Sugar Refinery Plc with a gain of 37.2 per cent. Linkage Assurance Plc garnered 27.1 per cent, just as NASCON Allied Industries Plc appreciated by 26.8 per cent.

Livestock Feeds Plc, Cadbury Nigeria Plc went up by 19.2 per cent and  12.9 per cent respectively, while  Jaiz Bank Plc and Guinness Nigeria Plc chalked up 12.1 per cent and 10.6 per cent in that order. Newrest ASL Nigeria Plc and UACN Property Development Company Plc closed higher, gaining 10.1 per cent and 8.0 per cent in that order.

Conversely, Morison Industries Plc led the price losers, shedding 16.9 per cent, trailed by Red Star Express Plc with 12.4 per cent. Cutix Plc and University Press Plc declined 12.4 per cent and 9.8 per cent in that order.

Other top price losers included: NPF Microfinance Bank Plc(9.1 per cent); Mobil Oil Nigeria Plc (8.3 per cent); FCMB Group Plc, Fidson Healthcare Plc (6.8 per cent apiece);  Champion Breweries Plc (5.2 per cent) and Beta Glass Plc (4.9 per cent).