NSE All-Share Index Rises 1.31% as Equities Rebound

WEEKLY REPORT

After two consecutive weeks of negative performance, the Nigerian equities market rebounded last week as the Nigerian Stock Exchange (NSE) All-Share Index (ASI) rose 1.31 per cent to close at 36,939.59. Despite the improved corporate earnings declared by most companies for the nine months ended September 30, 2017, the market had declined for two straight weeks.

However, sentiments turned positive last week to completely reverse the previous losses. As a result, the NSE ASI ended the week higher by 1.31 per cent at 36,939.59, while market capitalisation appreciated by same margin to be at N12.785 trillion. In addition, all other Indices finished higher during the week with the exception of the NSE-Main Board and NSE Consumer Goods Indices that depreciated by 0.11 per cent and 0.07 per cent respectively.
The NSE Insurance Index led with 1.52 per cent, trailed by the NSE Industrial Goods Index with 1.45 per cent. The NSE Oil & Gas Index climbed 1.44 per cent, while the NSE Banking Index closed 0.27 per cent higher.
Analysts at Cordros Capital said: “With Q3-17 earnings season now over, activities in the market will be driven by outlook for fourth quarter and full year earnings releases. However, we believe the market fundamentals remain strong, amid improving macroeconomic conditions.”

Daily Market Performance
The NSE ASI rose marginally by 0.06 per cent on Monday as the market opened on a positively note. Similarly, the market capitalisation appreciated by same margin to close at N12.63 trillion. The growth was bolstered by gains recorded by Ecobank Transnational Incorporated ( ETI), United Bank for Africa (UBA), Zenith Bank, UAC of Nigeria, and Forte Oil Plc, pushing the year-to-date (YTD) growth to 35.76 per cent as at that day.

However, the total value of stocks traded on the first day of the week fell by 30 per cent to N1.82 billion staked on 174.95 million shares in 3,401 deals. The three most actively sectors were: Financial Services (129.08 million shares), Conglomerates (15.89 million shares), and Consumer Goods (12.47 million shares), while the mostly traded stocks were: FBN Holdings (26.51 million shares), Diamond Bank (26.24 million shares) and UBA (16.12 million shares)
In terms of sector, it was mixed with the NSE Industrial Goods Index emerging the biggest loser, down 1.5 per cent largely due to losses in Lafarge Africa Plc (-3.9 per cent). The NSE Insurance Index trailed, declining by 0.09 per cent on the back of losses in AXA Mansard Insurance(-1.9 per cent) and NEM Insurance (-3.1 per cent ) while the NSE Consumer Goods Index closed flat.

On the positive side, the NSE Banking Index and the NSE Oil & Gas Index appreciated by 0.07 per cent and 0.01 per cent in that order.
The market rose further on Tuesday the index added 0.54 per cent to close at 36,680.29, while market capitalisation ended higher at N12.69 trillion.
Unlike the first day, the value of shares traded rose on Tuesday by 67.47 per cent as investors committed N3.05 billion on 259.07 million shares in 4,503 deals.
The three most actively traded sectors were: Financial Services (176.62 million shares ), Consumer Goods (44.36 million shares), and Conglomerates (21.64 million shares), while the three most actively traded stocks were: Diamond Bank (42.94 million shares), Fidelity Bank (31.06 million shares) and FBN Holdings (21.47 million shares).

A further analysis of the market performance showed that the NSE Industrial Goods Index led the sectoral chart. It rose by 1.1 per cent propelled by Dangote Cement Plc. The NSE Oil & Gas Index closed 1.0 per cent higher just as the NSE Insurance Index chalked up 0.9 per cent. Similarly, the NSE Consumer Goods Index gained 0.2 per cent. The lone loser was the NSE Banking Index that shed 0.9 per cent.
The positive trend was maintained for the third day running as the index rose 0.56 per cent to be at 36,880.20, just as the market capitalisation added N71.6 billion to close at N12.8 trillion. All the sectoral indices closed the day in the green led by the NSE Industrial Goods Index with 0.9 per cent on the back of gains in Dangote Cement (+1.6 per cent) and Lafarge Cement (+0.1 per cent). The NSE Oil & Gas Index followed, rising 0.4 per cent due to price appreciation in 11 Plc (+3.9 per cent), while the NSE Banking Index and the NSE Insurance Index grew by 0.2 per cent apiece. The NSE Consumer Goods Index gained 0.01 per cent.
After three days of gains, profit taking set in to push the index down marginally by 0.03 per cent to close at 36,877.15. The depreciation recorded in the share prices of Dangote Cement, Zenith Bank, Nigerian Breweries, Transcorp, and PZ Cussons was mainly responsible for the decline. In line with the bearish trend, the total value of stocks fell by 24 per cent to N3.95 billion from N5.20 billion.

The three most traded sectors were: Financial Services (224.37 million shares), Healthcare (60.58 million shares), and Consumer (15.17 million shares), while the three most actively traded stocks were: FBN Holdings (73.40 million shares), Union Dicon (58 million shares) and UBA (32.02 million shares).
Sector performance was mixed on Thursday with the NSE Banking Index and the NSE Insurance Index closed positive, rising 0.7 per cent each.
Conversely, the NSE Consumer Goods Index depreciated the most, shedding 1.2 per cent due to profit taking in Nigerian Breweries Plc (-3.2 per cent), Unilever Nigeria (-2.4 per cent) and PZ Cussons (-4.0 per cent).
In the same vein, losses in Dangote Cement (-0.2 per cent) dragged the NSE Industrial Goods Index 0.1 per cent lower, while the NSE Oil & Gas Index closed flat.

Market Turnover
Apart from closing higher, the market also recorded high volume and value of transactions as investors exchanged 1.363 billion shares worth N17.714 billion in 21,891 deals, compared with 1.394 billion shares valued at N16.403 billion that exchanged hands the previous week in 19,195 deals.
The Financial Services Industry remained the most patronised with 1.046 billion shares valued at N9.032 billion traded in 12,847 deals, thus contributing 76.79 per cent and 50.99 per cent to the total equity turnover volume and value respectively. The Consumer Goods Industry followed with 119.907 million shares worth N5.109 billion in 4,827 deals. The third place was occupied by Healthcare Industry with a turnover of 70.587 million shares worth N77.530 million in 349 deals.
Trading in the top three equities namely, FBN Holdings Plc, Diamond Bank Plc and United Bank for Africa Plc accounted for 497.016 million shares worth N2.947 billion in 4,205 deals, contributing 36.4 per cent and 16.6 per cent to the total equity turnover volume and value respectively.
Also traded during the week were a total of 1,156,439 units of Exchange Traded Products (ETPs) valued at N6.404 million executed in 13 deals compared with a total of 104,544 units valued at N11.506 million transacted the preceding week in seven deals.
A total of 2,775 units of federal government bonds valued at N2.770 million were traded this week in 4 deals, compared with a total of 559 units valued at N485, 802.83 transacted the previous week in five deals.

Price Gainers and Losers
Meanwhile, 37 stocks appreciated last week higher than 33 of the previous week, while 29 stocks depreciated in price, lower than the 32 equities of the previous week. University Press Plc led the price gainers with 26.3 per cent, trailed by Learn Africa Plc with 19 per cent, just as Flour Mills of Nigeria Plc chalked up 18.2 per cent.
Dangote Flour Mills Plc and Eterna Plc appreciated by 15.2 per cent each. Other top price gainers included: FBN Holdings Plc (13.7 per cent); Honeywell Flour Mills Plc (8.9 per cent); AXA Mansard Insurance Plc (7.4 per cent); UBA (6.3 per cent) and NEM Insurance Plc (6.2 per cent).
Conversely, Newrest ASL Nigeria Plc led the price losers, shedding 18.3 per cent, followed by Linkage Assurance Plc with a decline of 13.3 per cent. Unilever Nigeria Plc depreciated by 6.5 per cent. Livestock Feeds Plc and C & I Leasing Plc closed 5.6 per cent and 5.4 per cent lower respectively. Custodian and Allied Plc and Beta Glass Plc declined by 5.0 per cent apiece, just as Trans-Nationwide Express Plc shed 4.9 per cent. International Breweries Plc and Morison Industries Plc fell by 4.7 per cent each.

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