Equities Market Gains N148bn as Bulls Regains Control

Goddy Egene
The stock market gained N147.6 billion as the bulls regained control of trading last week.
Although trading was for only three days in the week under review, due the public holidays on Wednesday and Thursday, buying interests in banking stocks made the market to close higher. Specifically, the market capitalisation rose from N20.432 trillion to N20.579 trillion while the Nigerian Exchange Limited (NGX) All-Share Index (ASI) rose by 0.72 per cent to close at 39,481.89.

However, market analysts said the positive trend might not be sustained this week, predicting that profit taking would set in.

“In the week ahead, we do not think the bulls will repeat the flawless victory that ensued this week as the bears are likely to book profit across most counters. Consequently, we see more of a “choppy theme” as cautious trading takes centre stage ahead of a critical MPC meeting scheduled later in the month.

“Notwithstanding, we advise investors to take positions in only fundamentally justified stocks as the weak macro story remains a significant headwind for corporate earnings,” analysts at Cordros Securities said.

However, market turnover for last week was 840.334 million shares worth N9.561billion in 13,239 deals, down from 1.419 billion shares valued at N15.918 billion that exchanged hands in 18,459 deals the previous week. The Financial Services Industry remained the most traded with 541.015 million shares valued at N5.493 billion traded in 7,824 deals, thus contributing 64.38 per cent and 57.45 per cent to the total equity turnover volume and value respectively.

The ICT Industry followed with 90.382 million shares worth N571.642 million in 500 deals. The third place was occupied by the Conglomerates Industry, with a turnover of 84.792 million shares worth N512.775 million in 551deals.Trading in the top three equities, Access Bank Plc, Zenith Bank Plc and Etranzact International Plc, accounted for 284.924 million shares worth N3.470 billion in 2,533 deals.

The price movement chart showed that 33 equities appreciated higher than 31 in the previous week, while 19 equities depreciated, lower than 37 equities in the previous week.

Consolidated Hallmark Insurance Plc led the price gainers with 25.64 per cent. Associated Bus Company Plc trailed with 19.3 per cent, while Africa Prudential Plc chalked up 17.1 per cent. Royal Exchange Plc garnered 16.9 per cent, just as NEM Insurance Plc, and Eterna Plc appreciated 14.9 per cent and 13.6 per cent respectively.

Others included: Regency Assurance Plc, Meyer Plc (9.6 per cent apiece); Presco Plc, Presco Plc (9.5 per cent) and UACN Property Development Company Plc(9.2 per cent).
Conversely, Academy Press Plc led the price losers with 9.9 per cent, trailed by Japaul Gold & Ventures Plc with 8.3 per cent. Sterling Bank Plc and Okomu Oil Palm Plc and Neimeth International Pharmaceuticals Plc shed 6.9 per cent, 6.3 per cent and 6.0 per cent in that order.