Equities Market Halts Two-week Decline

WEEKLY REPORT

The Nigerian equities market rose marginally to halt two weeks of decline. Sell pressure had led to negative performance in spite improved corporate earnings by companies for year ended December 31, 2017.   Investors had intensified profit taking, a development that led the market to shed 1.11 per cent the previous week.

Although the bears remained in control for three days last, the negative performance was reversed on Thursday. Consequently, the Nigerian Stock Exchange (NSE) All-Share Index (ASI) appreciated by 0.08 per cent to close at 41.504.51, while market capitalisation closed the week higher at N14.993 trillion.

Similarly, all other indices finished lower during the week with the exception of the NSE Premium, NSE Consumer Goods, NSE Lotus II and NSE Pension Indices that appreciated by 1.15 per cent, 1.73 per cent 1.58 per cent and 0.34 per cent respectively.

Analysts at Meristem Securities Limited said: “Amidst impressive financial scorecards released this week, the NSEASI shed on the first three trading days of the week. We however note that bargain hunting activities on the last trading day drove the market to a positive close.”

Daily Performance         

The market opened sustaining the losing streak with the NSE ASI falling by 0.04   to close at 41,454.30 points. This was due to largely to profit taking in GTBank, Unilever and Seplat. In the same vein, activity level weakened as volume and value traded fell 32.2 per cent and 24.1 per cent  to 379.9 million shares and worth N5.1 billion respectively.

Sectorally, three of five  indices trended southwards, while two closed in the green. The NSE Oil & Gas Index led laggards, down 2.5 per cent followed by the NSE Industrial Goods Index with 2.0 per cent. The NSE Banking Index shed 0.4 per cent on the back of losses in GTBank and Diamond Bank.

However, on the positive side, the NSE Insurance Index led with 1.3 per cent, followed by the  NSE  Consumer Goods Index appreciated by 0.3 per cent.

Profit taking dragged the market further into the red on Tuesday as the Index shed 0.51 per cent to close at 41,243.24. Losses by International Breweries Plc, Seplat and Zentih Bank Plc were the majorly responsible for the negative performance.

Only the NSE Industrial Goods Index was the lone gainer, rising by 0.9 per cent. Conversely,  the  NSE Oil & Gas Index depreciated the most, losing 2.7 per cent on the back of losses in Seplat. The NSE Banking Index was dragged 1.0 per cent southward due to price depreciation in Zenith  and ETI. In the same vein,  the NSE Insurance Index and  NSE Consumer Goods Index went down by  0.6 per cent and 0.4 per cent in that order.

The bearish trading continued on  Wednesday as the NSE shed 1.07 per cent to close at 40,802.08, while market capitalisation shed N159.4 billion to  close lower at N14.74 trillion.

 An analysis of the decline showed that the bearish performance was mostly due to sell offs in Dangote Cement Plc,  and Nigerian Breweries. Activity level was mixed as volume traded rose 51.6 per cent  to 535 million shares  while value traded dropped 11.7 per cent to N3.7 billion. The top traded stocks by volume were Champion Breweries (153.9 million), Skye Bank (104.7 million shares) and Sterling Bank (41.2 million shares) while GTBank(N531.3 million), Champion (N397.1 million) and Zenith Bank (N396.2 million) were the top traded stocks by value.

In terms of sectoral performance  four  of five  indices closed in the red while one index closed in the green. The  NSE Banking Index lost the most, down by 3.4 per cent. The NSE Industrial Goods Index  followed with  2.6 per cent, while the NSE  Insurance Index  went down by 0.3 per cent.  The NSE Oil & Gas Index shed 0.03 per cent.  On the positive side, the  NSE Consumer Goods Index, which was the  lone gainer, appreciated by 0.3 per cent.

Thursday, which was the last day of the week and quarter, the market  reversed the four-day  decline as the NSE ASI rose 1.72 per cent to close at 41,504.51. The appreciation recorded in the share prices of GTBank, Dangote Cement, Nestle, FBN Holdings, and UBA were mainly responsible for the gain recorded. The growth  made the market to record a week-on-week of 0.08 per cent.

 

Market Turnover

Meanwhile, investors  traded 1.541 billion shares worth N16.647 billion in 18,805 deals down from 2.328 billion shares valued at N28.927 billion that exchanged hands in 25,530  deals the previous week.  The market opened for four trading sessions last week as the Federal Government of Nigeria declared Friday 30th March 2018, Good Friday.

But the  Financial Services Industry  led the activity chart with 1.024 billion shares valued at N10.946 billion traded in 11,019 deals,  thus contributing 66.44 per cent and 65.75 per cent to the total equity turnover volume and value respectively. The Consumer Goods Industry followed with 213.704 million shares worth N3.053 billion in 2,693 deals. The third place was occupied by Oil and Gas Industry with a turnover of 158.643 million shares worth N908.260 million in 1,897deals.

Trading in the top three equities namely,  Zenith Bank Plc, Champion Breweries Plc and Skye Bank Plc, accounted for 485.832 million shares worth N5.851 billion in 2,221 deals, contributing 31.5 per cent and 35.2 per cent to the total equity turnover volume and value respectively.

Also traded during the week were a total of 15,293 units of Exchange Traded Products (ETPs) valued at N254,840.00 executed in 16 deals, compared with a total of 4,165 units valued at N78,276.06 that was transacted two weeks ago week in 15 deals.

A total of 21,583 units of Federal Government Bonds and one State bond valued at N22.868 million were traded last week  in 16 deals, compared with a total of 5,152 units valued at N4.562 million transacted  the preceding week in 24 deals.

 

Price Gainers and Losers

A look at the price movement chart  showed that 40 equities appreciated in price during the week, higher than 33 of the previous week.  Similarly, 40 equities depreciated in price, lower than 49 equities of the previous week. GlaxoSmithkline Consumer Nigeria Plc led the price gainers with 33.3 per cent, trailed by Wema Bank Plc with 32 per  cent. Custodian and Allied Plc chalked up 20.9 per cent, just as Unity Kapital Assurance Plc and Eterna Plc garnered 18.1 per cent and 8.4 per cent.  Associated Bus Company Plc, Law Union and Rock Insurance Plc rose by 8.3 per cent and 7.3 per cent in that order.

Other top price gainers include: Caverton (7.2 per cent); PZ Cussons Nigeria Plc (6.3 per cent) and Stanbic IBTC Holdings Plc (6.2 per cent).

Conversely, Japaul led  the price losers with 14.4 per cent, trailed by Diamond Bank Plc with 13.4 per cent. Champion Breweries Plc shed 11.4 per cent, just as Jaiz Bank Plc went down by 10.9 per cent.

Other top price losers included: Mutual Benefits Assurance Plc (10.5 per cent); AIICO Insurance Plc (10.1 per cent);  C & I Leasing Plc, Lafarge Africa Plc (9.4 per cent); FTN Cocoa Processors (9.1 per cent); and LASACO Assurance Plc (8.3 per cent).