Nigerian Bourse Pares Gains on Profit Taking

WEEKLY REPORT

 By Goddy Egene

Profit taking in bellwether stocks prevented the Nigerian equities market from sustaining the gains recorded the previous week as the Nigerian Stock Exchange (NSE) All-Share Index fell marginal by 0.06 per cent to close at 41.218.72. Also, market capitalisation shed N9.5 billion to close  the week lower at N14.931 trillion. The market had appreciated by 1.05 per cent the previous week due to bargain hunting activities   and investors’ reactions improved to first quarter results  by some   companies.

The market could not record another positive close last week as the benchmark indicator sagged under the pressure of profit taking.  However, the  NSE Premium, NSE Banking, NSE Industrial goods, and NSE Pension indices  appreciated by 0.12 per cent, 1.56%, 1.06 per cent and 0.21 per cent  respectively.

 Analysts at Meristem Securities Limited said in spite of gains recorded in the banking and industrial goods space, the market closed downbeat.

“The market’s performance was majorly dragged by selloffs across counters in the oil & gas, consumer goods and insurance sectors,” they said.

In their own opinion, analysts at Cordros Capital Limited said: We look for return of gains on the bourse in the medium to long term, amidst fast-declining yields in the alternative fixed income market. More so, as macroeconomic fundamentals continue to impress.”

 

Daily Performance

The market consolidated on the positive performance of the previous week on when trading resumed on Monday.  The benchmark index rose by 0.06 per cent to close at 41,268.01, while market capitalisation ended higher at N14.95 trillion. The appreciation recorded in the share prices of FBN Holdings, Dangote Cement, Fidelity Bank, Zenith Bank, and GTBank Plc propelled the growth.

 Similarly, activity level trended higher as volume and value traded improved 41.1 per cent  and 77.4 per cent  to 450.5 million shares and N5.0 billion respectively. The three most actively traded stocks were Mutual Benefit (130.96 million share), UBA (67.75 million shares) and FBN Holdings (53.61 million shares).

In terms of sectoral performance, two of the five tracked indicators, however, appreciated. The NSE Industrial Goods Index recorded the highest gain, rising by 0.6 per cent following appreciation recorded by in Dangote Cement and CCNN. The NSE Banking Index trailed rising 0.4 per cent  due to  buying interests in GTBank and FBN Holdings. On the negative side, the  NSE Consumers Goods Index  led with a fall of 0.8 per cent following losses posted by Nestle, Dangote Sugar Refinery and Dangote Flour Mills. The NSE Insurance Index   and NSE Oil & Gas Index shed 0.2 per cent and 0.1 per cent in that order.

The market sustained the positive performance on Wednesday, growing marginally by 0.09 per cent to close at 41,306.02, driven by gains in   the share prices of Union Bank, Dangote Cement, Access Bank, Zenith Bank and UBA. The market capitalisation also appreciated same margin to close at N14.96 trillion. Ex-Dangote Cement the market would have closed 0.85 per cent lower.

But activity level was mixed as volume traded declined by 38.7 per cent to 276.2 million shares  while value traded trended up 38.9 per cent  to N6.9 billion. Wednesday’s  top traded stocks by volume were UBA (52.3 million shares), GTBank (42.3 million shares) and Zenith Bank (30.1 million shares) while  most active stocks  by value were Dangote Cement (N2.1 billion), GTBank (N1.9 billion) and Zenith Bank (N832.4 million).

Unlike the previous day,  three of  five  went up led by the NSE   Oil & Gas Index  with 1.2 per cent.  The NSE Banking Index trailed with a gain of 0.6 per cent, just as  the  NSE Industrial Goods Index  chalked up 0.3 per cent.

Conversely, the  NSE Consumer Goods Index led laggards as losses in Nestle  and Nigerian Breweries  dragged the index lower by 1.1 per cent. The NSE Insurance Index  shed 0.59 per cent.

The bears returned to the market on Thursday reversing the gains posted in the previous trading sessions. Specifically, the index fell by 0.48 per cent to close at 41,107.81. Profit taking in International Breweries, Dangote Cement, Nigerian Breweries, Unilever, and Dangote Sugar was mainly responsible for the decline of the day.

However, activity level was mixed as volume traded rose 16 per cent to 320.4 million shares  while value traded fell by 30.9 per cent  to N4.8 billion. Top traded stocks in volume terms were: UBA (79.9 million shares), Access Bank (57.0 million shares) and E-Tranzact  (20.3 million shares) while the top traded in  value were UBA (N935. 2 million), Access Bank (N644.4 million) and Zenith Bank(N488.3 million).

Despite the bearish trading, two of the sectoral indicators   bullish. The NSE Banking Index appreciated by 0.8 per cent, while the NSE Insurance   Index  rose by 0.2 per cent.

On the contrary, the  NSE Consumer Goods Index  fell  1.5 per cent  due to selloffs in International Breweries Plc,  Nigerian Breweries  Plc and Unilever Nigeria Plc. The NSE Oil & Gas Index trailed, shedding 0.8 per cent, just as the NSE Industrial Goods Index   shed  0.2 per cent.

The recovered on Friday with the benchmark index rising 0.27 per cent to close at  41, 218.72  per cent, while market capitalisation ended higher at N14.93 trillion.

However, the gain on Friday was not enough to save the market from closing the week with a decline. In all, the market shed 0.06 per cent in the review week.

Market Turnover

In the four-day  trading  sessions  investors traded   1.331billion shares worth N20.835 billion in 18,695 deals compared with 1.825 billion shares valued at N24.653 billion that exchanged  in 23,148 deals.

The Financial Services Industry led the activity chart with 1.042 billion shares valued at N11.275 billion traded in 9,665 deals, thus contributing 78.32 per cent and 54.11 per cent  to the total equity turnover volume and value respectively. The Consumer Goods Industry followed with 84.124 million shares worth N4.322 billion in 3,691 deals. The third place was occupied by Oil and Gas Industry with a turnover of 51.918 million shares worth N596.463 million in 2,307 deals.

Trading in the top three equities, UBA, Mutual Benefits Assurance Plc and Access Bank Plc  accounted for 457.930 million shares worth N3.784 billion in 1,469 deals and  contributing 34.41 per cent and 18.16 per cent  to the total equity turnover volume and value respectively.

Also traded during the week were a total of 709,058 units of Exchange Traded Products (ETPs) valued at N3.845 million executed in 10 deals, compared with a total of 56,260 units valued at N376,387.48 that was transacted  the previous week in six deals.

Similarly, a total of 80,152 units of Federal Government and State Bonds valued at N82.543 million were traded last week in 14 deals, compared with a total of 725 units valued at N660,984.55 transacted  the previous week in 10 deals.

 

Price Gainers and Losers

Meanwhile, 37 equities appreciated in price during the week, higher than 33 in the previous week, while  equities depreciated in price, lower than  41 equities in the previous week.

C & I Leasing led the price gainers with 29.5 per cent, trailed by Unity Bank Plc with 20 per cent. Veritas Kapital Assurance Plc chalked up 17.8 per cent, just as Cement Company of Northern Nigeria Plc and Beta Glass Plc garnered 14.6 per cent and 10.2 per cent respectively.

Other top price gainers included: Livestock Feeds Plc (9.0 per cent); NPF Microfinance Bank Plc (8.5 per cent); Mutual Benefits Assurance Plc (8.3 per cent); Union Bank of Nigeria Plc (7.2 per cent0 and Vitafoam Nigeria Plc (6.4 per cent).

Conversely, Dangote Flour Mills Plc led the price losers with 18.5 per cent, trailed by Eterna Plc with 13.0 per cent. Prestige Assurance Plc  shed  11.7 per cent, while Dangote Sugar Refinery Plc  went down by 11.2 per cent.

Other top price losers included: Regency Alliance Insurance Plc (10 per cent); Oando Plc 8.7 per cent); Chams Plc (8.7 per cent); Japaul Oil & Maritime Services Plc (8.0 per cent); WAPIC Insurance Plc (7.0 per cent); Niger Insurance Plc (6.6 per cent).