Goddy Egene
Investors committed N13.174 billion to N1.161 billion shares in 18,142 deals last week compared with N17.249 billion staked on 1.416 billion shares in 20,303 deals the previous week. Although the value of investment was lower, the market was able to maintain its weekly growth for the fourth week running as the Nigerian Stock Exchange (NSE) All-Share Index appreciated by 0.04 per cent to close at 27,002.15.
Similarly, the market capitalisation of equities rose by same margin to close at N13.033 trillion.
An analysis of the performance by sectors showed that the NSE Consumer Goods Index led with a gain of 4.69 per cent. The NSE Industrial Goods Index trailed with a gain of 0.35 per cent. However, on the contrary, the NSE Banking Index fell by 0.68 per cent. The NSE Oil & Gas Index and the NSE Insurance Index followed with a decline of 0.43 per cent and 0.07 per cent respectively.
Commenting on the market performance, analysts at Cordros Capital Limited said despite the marginally positive performance of the market during the week, the market seems to once again be losing impetus.
“Consequently, we expect the market to shed points in the coming week, in the absence of a policy-driven catalyst. Nonetheless, the case for the market to record some gains over the short to medium term remains compelling, even as the valuation picture becomes less compelling,” they said.
While the Nigerian market rose 0.04 per cent the Ghana Stock Exchange gained 1.1 per cent. Similarly, Morocco’s Casablanca MASI appreciated 0.10 per cent. Conversely, Egypt’s EGX 30 index lost the most, shedding 1.7 per cent while Kenya’s NSE 30 and Mauritius’ SEMDEX indices went down by 0.04 per cent and 0.36 per cent respectively.
The BRICS market recorded a negative performance as only one of the five markets tracked gained. South Africa’s FTSE/JSE declined the most, paring 2.6 per cent. In the same vein, Russia’s RTS index trailed, shedding 1.1 per cent just as Brazil’s Ibovespa and China’s Shanghai Composite indices depreciated 0.2 per cent and 0.5 per cent in that order in spite of progress in US and China trade relations. But India’s BSE Sens was the lone gainer, adding 1.1 per cent notwithstanding slowdown in economy.
In the Asian and Middle East markets, performance was positive as four of five tracked went up. Saudi Arabia’s Tadawul Index recorded the highest gain, up 2.6 per cent. Similarly, Qatar’s DSM 20 and Thailand’s SET indices followed with 1.2 per cent and 0.4 per cent respectively. In the same vein, UAE’s ADX General index rose 0.2 per cent. Conversely, Turkey’s BIST 100 indices was the lone loser, shedding 0.3 per cent.
Performance in the developed market was bullish led by the United States’ S&P 500 and NASDAQ indices advanced 0.9 per cent and 2.0 per cent in that order as US and China reached a ‘common understanding’ on trade relations.
Last week, President Donald Trump hinted that discussions on a phase one trade deal with China were near completion, claiming he is holding up the agreement to ensure the US gets a fair deal. Similarly, the Chinese delegates said consensus had been reached on properly solving relevant issues.
According to analysts at Afrinvest West Africa said that suggested that there might be a roll-over or extension of the December 15th deadline if an agreement was reached soon.
“On the other end, the US senate has successfully passed the human right bill aimed at supporting Hong Kong’s protesters into law. However, the Chinese government frowned at this and warned of “firm counter measures”, further clouding the prospects of a preliminary Sino-U.S. trade deal in the near term,” Afrinvest said.
Meanwhile, in Europe, United Kingdom’s FTSE All Share index appreciated the most, up 0.9 per cent just as Germany’s XETRA DAX and France’s CAC 40 indices gained 0.4 per cent and 0.7 per cent respectively. Japan’s Nikkei 225 rose 0.8 per cent, while the Hong Kong’s Hang Seng index w as the lone loser, going down by 0.9 per cent.
Market turnover
Meanwhile, the activity chart showed that the Financial Services industry led the activity chart with 801.229 million shares valued at N6.219 billion traded in 10,415 deals, thus contributing 68.98 per cent and 47.2 per cent to the total equity turnover volume and value respectively.
The Conglomerate industry followed with 139.940 million shares worth N585.927 million in 943 deals, while the third place was Consumer Goods industry with a turnover of 84.546 million shares worth N3.445 billion in 2,674 deals.
Trading in the top three equities namely: Law Union & Rock Insurance Plc, Zenith Bank Plc and United Bank for Africa Plc accounted for 369.396 million shares worth N3.086 billion in 3,360 deals, contributing 31.8 per cent and 23.43 per cent to the total equity turnover volume and value respectively.
At the exchange traded funds end of the market a total of 11,991 units valued at N102,312.34 were traded last week in 30 deals, compared with a total of 150 units valued at N15,929.60 transacted the previous week in nine deals.
Also, a total of 313,912 units of Federal Government Bonds valued at N320.719 million were traded last week in 23 deals, compared with a total of 42,085 units valued at N47.490 million transacted two weeks in 30 deals.
Top price gainers and losers
The price movement chart indicated that 31 equities appreciated in price during the week, lower than 40 equities in the previous week, while 32 equities depreciated in price, higher than 23 equities in the previous week.
Neimeth International Pharmaceuticals Plc led the price gainers with 30.3 per cent, trailed by A.G Leventis Plc with 20 per cent. Royal Exchange Plc added 15 per cent, just as LASACO Assurance Plc went up by 13 per cent.
UAC of Nigeria Plc gained 11.8 per cent, just as WAPIC Insurance Plc and Cadbury Nigeria Plc garnered 11.7 per cent and 10 per cent in that order. Sovereign Trust Insurance Plc, Presco Plc and Law Union & Rock Insurance Plc chalked up 10 per cent, 9.3 per cent and 8.3 per cent respectively.
On the contrary, FBN Holdings Plc led the price losers with 10.6 per cent, trailed by C & I Leasing Plc with 9.8 per cent. Okomu Oil Palm Plc and Ikeja Hotel Plc shed 9.7 per cent and 9.6 per cent respectively. Afromedia Plc went down by 8.1 per cent, while Access Bank Plc and Unilever Nigeria Plc dipped by 7.9 per cent and 7.7 per cent respectively.
NPF Microfinance Bank Plc, United Bank for Africa Plc and Cornerstone Insurance Plc shed 7.5 per cent, 6.0 per cent and 5.59 per cent in order.
