By Goddy Egene
The announcement of corporate earnings and declaration of dividends by more companies as well as the abating political risks combined to lift the Nigerian stock market last week compared with a decline the previous week.
The equities market measured by the benchmark indicator, the Nigerian Stock Exchange (NSE) All-Share Index (NSE ASI) appreciated by 0.31 per cent last week, compared with a decline of 2.12 per cent the preceding week. In the same vein, market capitalisation rose by same margin to close higher at N11.905 trillion. However, while other indices finished higher the NSE Insurance, NSE Consumer Goods, NSE Oil/Gas, NSE Lotus II and NSE Industrial Goods indices depreciated by 1.30 per cent, 1.02 per cent, 2.56 per cent, 1.09 per cent and 1.72 per cent respectively.
In their comments on the market performance, analyst at Cordros Capital Plc said: “We reiterate our view that the blend of a compelling valuation story, together with positive macroeconomic picture leaves scope for a market recovery in the medium term. However, we guide investors to tread the cautious trading path in the short term.”
The market had opened on Monday, which was also the first trading month of March on a positive note as bellwether stocks lifted the NSE ASI by 0.95 per cent to close higher at 32,129.94, while market capitalisation added N112.9 billion to close at N12.98 trillion yesterday.
In all, 25 stocks appreciated compared with 10 others that depreciated. McNichols Plc led the price gainers’ table with 9.8 per cent, followed by Cutix Plc with 9.7 per cent, while NPF Microfinance Bank Plc garnered 9.7 per cent. Wema Bank Plc and Sovereign Trust Insurance Plc chalked up 9.0 per cent and 8.7 per cent respectively.
Zenith Bank Plc and Dangote Cement Plc, which have declared dividends for 2018 financial year, were also among the price gainers. Equally, Access Bank Plc and Diamond Bank Plc, whose shareholders wet to endorse the merger of the two financial institutions appreciated in price.
Conversely, PZ Cussons Nigeria Plc led the price losers with 9.6 per cent, trailed by Livestock Feeds Plc with 8.9 per cent. Consolidated Hallmark Insurance Plc shed 7.1 per cent, just as Law Union and Rock Insurance Plc, United Capital Plc and UAC of Nigeria Plc went down by 5.4 per cent, 2.9 per cent and 2/.9 per cent respectively.
However, activity level reduced as volume and value traded dipped 33.0 per cent and 30.3 per cent to 227.8 million shares and N2.6 billion respectively. The most traded stocks by volume were Diamond Bank (33.0 million shares), UBA (31.1 million shares) and Zenith Bank Plc (28.9 million shares) while the top traded stocks by value were Zenith Bank (N703.1 million), Dangote Cement (N510.8 million) and GTBank (N391.0 million).
In terms of sectoral performance, three of five sectors tracked closed in the green. The NSE Banking Index rose 2.7 per cent, while the NSE Consumer Index and NSE Industrial Goods Index advanced 0.4 per cent and 0.3 per cent respectively.
The market sustained the positive performance on Tuesday, gaining 0.14 per cent to close at 32,173.66, just as market capitalisation added N16.3 billion to close higher at N12 trillion. Gains in GTBank Plc, Union Bank of Nigeria Plc and Zenith Bank Plc drove the market northwards.
Similarly, activity level strengthened as value and volume traded advanced by 32.5 per cent and 75.8 per cent to N3.5 billion and 400.5 million shares respectively.
The most active stocks on Tuesday in value terms were GTBank (N1.2 billion, Zenith Bank Plc (N65.0 million), FBN Holdings (N359 million) while Diamond Bank (119.8 million shares), FBN Holding Plc (44.3 million units) and UBA (40.8 million units) led by volume.
In terms of sector performance only two of five indices tracked closed in the green. The NSE Banking Index rose 0.92 per cent due to buying interest in GTBank, Union Bank of Nigeria Plc and Zenith Bank Plc. Also, the NSE Consumer Goods Index advanced 0.3 per cent higher following gains in Dangote Flour MillsPlc, Dangote Sugar Refinery Plc and Honeywell Flour Mills Plc.
On the negative side, the NSE Insurance Index shed 0.3 per cent while the NSE Industrial Goods Index and NSE Oil & Gas Index went down by 0.3 per cent and 0.1 per cent respectively.
The market fell on Wednesday as profit taking set in after three days of bullish performance. Consequently, the NSE ASI lost 0.16 per cent to close at 32,121.74, while market capitalisation shed N19.4 billion to close at N12 trillion. In the same vein, trading volume and value fell by 48 per cent and 19.6 per cent to 208.3 million shares and N2.8 billion.
The losses were extended into the second day on Thursday with the NSE ASI declining by 0.2 as a result of depreciation by Dangote Cement Plc, Nigerian Breweries Plc and GTBank Plc. Market capitalisation shed N26.9bn to N11.9 trillion, thereby moderating the year-to-date growth to 2.0 per cent.
But activity level was mixed as volume traded advanced by 4.9 per cent to 218.5 million shares while value traded fell 1.7 per cent to N2.7 billion. The top traded stocks by volume were Zenith Bank (34.8 million shares), Access Bank Plc (29.2 million shares) and FBN Holdings (29 million) while top traded by value were Zenith Bank (N859.7 million), GTBank (N850.1 million) and FBN Holding (N235.9 million).
In line with the trend, performance across sectors was bearish as all sectors closed in the red. The NSE Insurance Index and NSE Oil & Gas Index with 1.0 per cent apiece. The NSE Industrial Goods Index shed 0.4 per cent, while the NSE Consumer Goods Index lost 0.2 per cent. Also, the NSE Banking Index closed the day 0.1 per cent lower.
A look at the market turnover, investors traded of 1.290 billion shares worth N13.873 billion in 17,307 deals were traded last week by investors on the floor of the exchange in contrast to a total of 1.752 billion shares valued at N19.681 billion that exchanged hands the previous week in 22,319 deals.
But the Financial Services Industry remained the most traded with 1.084 billion shares valued at N11.612 billion traded in 11,169 deals. Hence, the sector contributed 84.06 per cent and 83.7 per cent to the total equity turnover volume and value respectively.
The Conglomerates Industry followed with 57.699 million shares worth N93.347 million in 810 deals, while the third place was Consumer Goods Industry with a turnover of 56.938 million shares worth N938.881 million in 2,627 deals. Trading in the top three equities namely, Zenith Bank Plc, Diamond Bank Plc and FBN Holdings Plc accounted for 460.632 million shares worth N5.754 billion in 4,087 deals, contributing 35.70 per cent and 41.47 per cent to the total equity turnover volume and value respectively.
Also traded during the week were a total of 2,971 units of Exchange Traded Products (ETPs) valued at N766,883.30 executed in seven deals compared with a total of 101,254 units valued at N577,835.06 that was transacted the preceding week in 19 deals. Similarly, a total of 15,496 units of Federal Government Bonds valued at N15.750 million were traded last week in 12 deals compared with a total of 25,740 units valued at N26, 597 million transacted two weeks ago in 22 deals
Price Gainers and Losers
Meanwhile, 24 equities appreciated in price during the week, lower than 26 in the previous week, while 37 equities depreciated in price, lower than 38 equities of the previous week. Wema Bank Plc led the price gainers with 9.7 per cent followed by Cutix Plc with 9.7 per cent, just as Sovereign Trust Insurance Plc chalked up 8.7 per cent.
International Breweries Plc and NPF Microfinance Bank Plc garnered 8.0 per cent and 7.6 per cent, while Cadbury Nigeria Plc and Dangote Flour Mills Plc appreciated by 5.7 per cent and 5.5 per cent respectively.
Other top price gainers included: GTBank Plc (5.1 per cent); WAPIC Insurance Plc (5.0 per cent) and Transcorp Plc (4.8 per cent).
Conversely, Mutual Benefits Assurance Plc led the price losers with 14.8 per cent, trailed by PZ Cussons Nigeria Plc with 13.3 per cent. Veritas Kapital Assurance Plc shed 12.5 per cent, just as Livestock Feeds Plc and Academy Press Plc went down by 11.9 per cent and 10 per cent in that order.
Other top price losers were: Etranzact Plc (9.9 per cent); University Press Plc (9.7 per cent); Red Star Express Plc (9.0 per cent); Japaul Oil & Gas Plc (8.7 per cent); and United Capital Plc (8.3 per cent).