NSE All-Share Index Gains 1.4%, Market Sustains Positive Momentum

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By Goddy Egene

The stock sustained its positive momentum last week closing with higher index and market turnover.

The Nigerian Stock Exchange (NSE) All-Share Index (ASI) appreciated by 1.41 per cent to close at 25,041.89, while market capitalisation added N181.6 billion to be at N13.06 trillion.

Similarly, volume of trading soared by 152 per cent to 1.065 billion shares worth N10.798 billion traded in 20,482 deals, from 422 million shares valued at N5.337 billion exchanged in 11,801 deals the previous week.

Market analysts attributed the positive performance to the reactions to financial results released by companies for the six months ended June 30, 2020. The results showed relative resilience in the performance despite the COVID-19 pandemic.

In spite of the growth recorded last week, analysts at Cordros Securities stressed the need for investors to maintain cautious trading, “as risks remain on the horizon due to a combination of the increasing number of COVID-19 cases in Nigeria and weak economic conditions.”

The Lagos-based firm added: “Thus, we continue to advise investors to seek trading opportunities in only fundamentally justified stocks.”

A look at the market turnover showed that the Financial Services industry led the activity chart with 677.301 million shares valued at N5.070 billion traded in 10,386 deals. Thus, the sector contributed 63.6 per cent and 46.9 per cent to the total equity turnover volume and value respectively.

The Conglomerates industry followed with 153.384 million shares worth N580.216 million in 894 deals, while the third place was the Industrial Goods industry, which recorded a turnover of 57.404 million shares worth N861.263 million in 1,671 deals. Trading in the top three equities namely FBN Holdings Plc, UACN Plc and Access Bank Plc accounted for 320.196 million shares worth N1.802 billion in 2,639 deals, contributing 30.1 per cent and 16.6 per cent to the total equity turnover volume and value respectively.

Meanwhile, 41 equities appreciated in price last week, higher than 24 equities in the previous week, while 18 equities depreciated in price, lower than 28 equities in the previous week. Neimeth International Pharmaceuticals Plc led the price gainers with 21.3 per cent. UACN Property Development Company Plc trailed with 18.5 per cent, just as Flour Mills Nigeria Plc chalked up 13.2 per cent.

Seplat Petroleum Development Company Plc garnered 12.8 per cent, while Stanbic IBTC Holdings Plc appreciated 10 per cent. University Press Plc gained 9.9 per cent, while AXA Mansard Insurance Plc, Fidson Healthcare Plc and Guinness Nigeria Plc added 9.7 per cent, 8.5 per cent and 8.4 per cent respectively.

On the negatively side, U A C N Plc led the price losers with 11.4 per cent ,trailed by Total Nigeria Plc with 9.9 per cent with 9.9 per cent. Ardova Plc shed 9.6 per cent, just as Custodian Investment Plc and SUNU Assurance Nigeria Plc went down by 9.0 per cent apiece. Consolidated Hallmark Insurance Plc and Mutual Benefits Assurance Plc depreciated by 8.8 per cent and 8.7 per cent in that order.

Unilever Nigeria Plc lost 8.5 per cent, just as NEM Insurance Plc and Linkage Assurance Plc shed 6.5 per cent and 5.0 per cent in that order.