Investors Stake N59bn on Shares as Market Extends Rally

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Goddy Egene
Equities investors will for a long time remember the performance of the market last week as it gained N2.1 trillion following unprecedented demand that made the Nigerian Stock Exchange (NSE) All-Share Index (ASI) to spike by a record 12.9 per cent.
Investors also increased their level of investment, staking N58.733 billion on 4.509 billion shares in 47,140 deals, up from N22.636 billion invested in 2.067 billion shares, valued at N22.636 billion in 25,187 deals.

It was a historic trading week as the NSE ASI rose beyond the set threshold of five per cent triggering a 30-minute trading halt of all stocks for the first time since the Circuit Breaker was introduced in 2016. The circuit breaker protocol was triggered when the NSE ASI increased from 33,268.36 to 34,959.39.
However, the market reopened at exactly 1:25p.m., with a 10 minute intra-day auction session before resuming continuous trading till the close of the day at 2:30p.m.

The Chairman of Association of Securities Dealing Houses Association of Nigeria (ASHON), Chief Onyenwechukwu Ezeagu, said triggering the circuit breaker by the NSE was a welcomed development.
“Usually circuit breaker is a safety valve that enables the exchange manage unusual market price volatility, enabling market back room managers to stop trading and figure out the cause of the unusual development. This ensures stability and integrity of prices of stocks and forestall unintended consequences,” Ezeagu said.

Meanwhile, the Financial Services sector attracted the highest patronage, leading the activity chart with 3.073 billion shares valued at N35.408 billion traded in 25,894 deals. The sector thus, contributed 68.2 per cent and 60.3 per cent to the total equity turnover volume and value respectively.

The Conglomerates Industry followed with 437.822 million shares worth N771.280 million in 1,864 deals, just as the third place was the Consumer Goods Industry with a turnover of 373.613 million shares worth N7.816 billion in 7,471 deals.

Trading in the top three equities namely Zenith Bank Plc, FBN Holding Plc and Transcorp Hotels Plc accounted for 1.426 billion shares worth N18.083 billion in 9,537 deals, contributing 31.6 per cent and 30.8 per cent to the total equity turnover volume and value respectively.
Reflecting the bullish trading, 69 equities appreciated, higher than 40 equities in the previous week, while 12 equities depreciated in price, lower than 24 equities in the previous week.

Oando Plc led the price gainers with 48 per cent, trailed by Japaul with 43 per cent. Northern Nigerian Flour Mills Plc chalked up 40 per cent, just as Livestock Feeds Plc and Fidson Healthcare Plc appreciated by 36.7 per cent and 36.5 per cent in that order.

Transcorp Plc and Dangote Sugar Refinery Plc garnered 34.2 per cent and 34.5 per cent respectively. Neimeth International Pharmaceuticals Plc, Wema Bank Plc and Mutual Benefits Assurance Plc gained 33.5 per cent, 31.2 per cent and 30 per cent in that order.

Conversely, Ikeja Hotels Plc led the price losers with 9.9 per cent, trailed by Global Spectrum Energy Services Plc with 9.8 per cent. Morison Industries Plc shed 9.2 per cent, just as Consolidated Hallmark Insurance Plc went down by 8.1 per cent.