By Goddy Egene
Contrary to the apprehension that investors may reduce patronage of equities market few days to the presidential election, foreign and domestic investors increased their investment in stocks last week. Consequently, a total of N26.884 billion was invested in 1.894 billion shares in 19,213 deals. This was higher than the N14.788 billion in 1.452 billion shares in 19,318 deals traded the previous week.
The market did not only recover from the losses of the previous week but also ended with higher performance. The Nigerian Stock Exchange (NSE) All-Share Index (ASI) appreciated by 2.92 per cent last week compared with a decline of 2.5 per cent.
Specifically, the NSE ASI closed at 31,529.92, while market capitalisation rose by same margin to close higher at N11.758 trillion. This translated to a gain of N333.5 billion.
Similarly, all other indices finished higher with the exception of the NSE Industrial Goods Index that depreciated by 0.66. The NSE Banking Index led with an appreciation of 8.1 per cent trailed by the NSE Consumer Goods Index that garnered 4.1 per cent. The NSE Insurance Index went up by four per cent, just as the NSE Oil & Gas Index gained 2.5 per cent.
In their assessment of the market performance, analysts at Cordros Capital said: “Looking ahead, we continue to guide investors to trade cautiously amidst brewing political jitters ahead 2019 elections, and the absence of a positive market trigger. However, we believe positive macroeconomic fundamentals will drive recovery post-election.”
Daily Market Performance
The market opened the week on a positive note on Monday, with a growth of 0.35 per cent. The appreciation recorded in the share prices of Nigerian Breweries, Access Bank, FBN Holdings, Stanbic IBTC Holdings and UBA were mainly responsible for the gain recorded in the first day of the week.
Gains recorded by Stanbic IBTC Holdings Plc, FBN Holdings Plc, Access Bank Plc, GTBank Plc and Beta Glass Plc helped to sustained the positive performance of the stock market the following day, which was Tuesday.
The NSE ASI appreciated by 0.09 per cent to close at 30,773.57, while market capitalisation added N11 billion to close at N11.5 trillion. In all, 21 stocks appreciated while 12 depreciated.
Beta Glass Plc led the price gainers’ table with 10 per cent, trailed by ABC Transport Plc with 8.3 per cent. Consolidated Hallmark Insurance Plc chalked up 6.9 per cent as investors reacted to news of the company successfully injecting fresh capital of N734.5 million through a private placement of 1.130 billion ordinary shares of 50 kobo each at 65 kobo per share.
Sunu Assurances Plc garnered 5.0 per cent, while Regency Alliance Insurance Plc, United Capital Plc, AIICO Insurance Plc and Oando Plc gained 4.7 per cent, 3.1 per cent, 3.1 per cent, and 3.0 per cent in that order.
Conversely, A.G Leventis Nigeria Plc led the price losers with 6.9 per cent, trailed by Nigerian Aviation Handling Company Plc with 3.7 per cent.
Sustained bargain hunting in bellwethers lifted the NSE ASI by 0.16 per cent to close at 30,821.80 last Wednesday. In a similar vein, market capitalisation added N18 billion to close at N11.49 trillion.
According to analysts at FSDH Research, the appreciation recorded in the share prices of Nestlé Nigeria Plc, Flour Mills of Nigeria Plc, Transcorp, GTBank Plc and Dangote Sugar Refinery Plc were mainly responsible for the gain recorded in the index on that day.
However, Learn Africa Plc led the price gainers with 9.4 per cent, trailed by Regency Alliance Insurance Plc with 9.0 per cent. Mcnichols Plc garnered 7.6 per cent, just as Berger Paints Nigeria Plc, Cornerstone Insurance Plc and Sovereign Trust Insurance Plc chalked up 5.0 per cent apiece. Dangote Flour Mills Plc and Nestle Nigeria Plc went up by 4.9 per cent and 2.8 per cent in that order.
Conversely, Custodian Investment Plc led the price losers with 8.8 per cent, followed by Guinea Insurance Plc with 8.7 per cent. Consolidated Hallmark Insurance Plc shed 6.4 per cent. The insurance firm got its additional 1.130 billion shares listed on the NSE on Thursday. This arose from additional shares listed on the exchange arose from CHI Plc’s placing of 1,130 billion ordinary shares of 50 kobo each at 65 kobo per share. With this listing of the additional 1,130 billion ordinary shares, the total issued and fully paid up shares of CHI Plc has now increased from 7.0 billion to 8.130 billion ordinary shares of 50 kobo each. CHI Plc realised N734 million from the private placing.
Meanwhile, activity level also improved as volume and value traded rose 88.3 per cent and 65.0 per cent to 358.3 million shares and N4.8 billion respectively. The top traded stocks by volume were FBN Holdings (88.6 million shares), Zenith Bank (55.7 million shares) and Japaul (36.2 million shares) while Zenith Bank (N1.3 billion), GTBank (N724.5 million) and FBN Holding (N660 million) were the top traded by value.
In terms of sector performance three of five sectors tracked advanced. The NSE Consumer Goods Index led gainers with 1.2 per cent, trailed by the NSE Banking Index with 0.6 per cent appreciation. The NSE Insurance Index rose 0.5 per cent. Conversely, the NSE Industrial Goods Index shed 0.6 per cent, while the NSE Oil & Gas Index depreciated by 0.1 per cent. The market ended the week with a gain of 0.31 per cent on Friday to bring the total gain for the week to 2.9 per cent.
Meanwhile, a breakdown of the market turnover, showed that the Financial Services Industry led the activity chart with 1.498 billion shares valued at N19.724 billion traded in 12,581 deals, thus contributing 79.10 per cent and 73.37 per cent to the total equity turnover volume and value respectively.
The Consumer Goods Industry followed with 144.426 million shares worth N4.552 billion in 2,484 deals. The third place was Conglomerates Industry with a turnover of 143.320 million shares worth N220.050 million in 998 deals. Trading in the top three equities namely, United Bank for Africa Plc, Zenith Bank Plc and FBN Holdings Plc accounted for 791.318 million shares worth N10.817 billion in 5,046 deals.
Also traded during the week were a total of 6,590 units of Exchange Traded Products (ETPs) valued at N55,711.29 executed in three deals compared with a total of 668 units valued at N58,897.50 that was transacted the previous week in 21 deals.
Equally, a total of 2,668 units of Federal Government Bonds valued at N2.886 million were traded last week in 14 deals compared with a total of 4,336 units valued at N4.308 million transacted the previous week.
Price Gainers and Losers
The price movement chart showed 53 price gainers, higher than 16 in the previous week, while 21 equities depreciated in price, lower that 50 equities of the previous week. Regency Alliance Insurance Plc led the price gainers with 91.0 per cent, trailed by Dangote Flour Mills Plc with 18.1 per cent, while GTBank Plc chalked up 14.6 per cent. MCnichols Plc gained 13.8 per cent, while AIICO Insurance Plc and University Press Plc.
Other top price gainers included: Associated Bus Company Plc, Cutix Plc (11.1 per cent each).Eterna Plc (10.5 per cent)and Beta Glass Plc (10 per cent).
On the contrarily, Royal exchange Plc led the price losers with 13.3 per cent, trailed byGuinea Insurance Plc with 13 per cent. Champion Breweries Plc and Interlinked Technologies Plc shed 10 per cent apiece, just as E-Tranzact Plc and Academy Press Plc went down by 8.8 per cent and 8.7 per cent in that order.
Other top price losers were: Transnationwide Express Plc (8.7 per cent); A.G Leventis Nigeria Plc, Consolidated Hallmark Insurance Plc (6.9 per cent each) and Livestock Feeds Plc (5.6 per cent).