The Nigerian equities market rebounded last week on bargain hunting in bellwether stocks. Consequently, the Nigerian Stock Exchange (NSE) All-Share Index (ASI) rising 0.23 per cent to close at 32,456.98. The positive performance of the Nigerian bourse is encouraging considering the fact the market global equities markets closed negatively.
For instance, in Europe and Asia, equities were down following high treasury yields and risk aversion took a toll on global markets. Further global sell-offs sent France’s CAC 40 down by 3.9 per cent, while Germany’s XETRA DAX shed 4.0 per cent. Turkey’s BIST 100 Index fell 0.3 per cent just as Hang Seng went down by 2.9 per cent.
In United States, the S&P 500 closed 5.4 per cent lower while the Nasdaq Composite was down by 5.9 per cent due to high fixed income yields, weaker economic forecast and risk aversion in the global markets. The FTSE All Share Index was down 3.6 per cent just as Japan Nikkei 225 declined by 4.6 per cent.
In Africa, five out of the six leading markets closed the week bearish as negative sentiments on emerging and frontier markets continued. Egypt’s EGX30 was worst hit, sliding 7.2 per cent, trailed by Kenya’s NSE 20 which declined 1.4 per cent. Mauritius SEMDEX also depreciated by 1.4 per cent. Ghana’s GSE Composite and Morocco’s Casablanca MASI indices shed 0.2 per cent and 0.1 per cent respectively.
– Daily performance –
The market had opened the week on Monday with a growth of 0.2 per cent before declining by 0.1 per cent on Tuesday.
The market fell further on Wednesday pushing the index down by 0.11 per cent to close at 32,382.58. Similarly, market capitalisation shed ₦12.8 billion to close at ₦11.82 trillion. The market had declined by 0.08 per cent the previous day , raising hopes that it may rebound yesterday.
Although more stocks appreciated compared with losers, the depreciation recorded in the share prices of companies such as FBN Holdings, GTBank, Nigerian Breweries, UAC of Nigeria Plc , and Honeywell Flour Mills Plc made the market to close lower.
MCNichols led the price losers with 9.7 per cent, followed by Transcorp Hotel Plc with 9.6 per cent. Law Union & Rock Insurance Plc and First Aluminium Plc shed 8.7 per cent and 7.8 per cent respectively. Prestige Assurance Plc and Chams Plc went down by 7.6 per cent and 7.1 per cent.
On the positive side, CAP Plc led the price gainers with 10 per cent, trailed by Mutual Benefits Assurance Plc with 7.6 per cent. Mutual Benefits Plc recently accessed the equities market for additional fund through a rights issue of ₦2 billion.
According to the company, proceeds from the rights issue will enable it carry out its recapitalisation and growth plan, provide additional working capital and finance the transformation of its IT infrastructure to support its enlarged operations.
Two other insurance stocks, Continental Reinsurance Plc and Consolidated Hallmark Insurance Plc also chalked up 7.1 apiece yesterday.
Activity level was mixed as volume traded declined 61.5 per cent to 134.5 million shares while value traded improved 32.2 per cent to ₦1.9 billion. Top traded stocks by volume were FCMB (18.3 million shares), Fidelity Bank Plc (17.2 million shares), and FBN Holdings Plc (15.8 million shares) while top traded stocks by value were Dangote Cement Plc (₦500.2 million), GTBank (₦444.7 million) and Nestle Nigeria (₦203.5 million).
Despite a bearish performance in the benchmark index, sector performance closed bullish with three of five sectors tracked closed higher. The NSE Insurance Index led gainers up 0.8 per cent . This was followed by the NSE Industrial Goods Index with a gain of 0.3 per cent. while NSE Banking Index went up by 0.03 per cent.
On the flipside, the NSE Consumer Goods Index went down by 0.02 per cent, followed by and NSE Oil & Gas Index that shed 0.02 per cent.
Gains in consumer goods equities helped to reverse the negative on Thursday, pushing the NSE ASI to appreciate by 0.11 per cent to 32,417.82. Specifically, Nestle Nigeria Plc and Flour Mills of Nigeria Plc, which are two leading consumer goods stocks, bolstered the positive close recorded today. Also, Stanbic IBTC Holdings Plc and Zenith Bank Plc recorded gains for the day.
In all, 15 stocks appreciated led by Niger Insurance Plc with 10 per cent, trailed by Prestige Assurance Plc with 8.3 per cent. Four Mills chalked up 7.6 per cent. Learn Africa Plc chalked up 5.4 per cent, just as Okomu Oil Palm Plc and Stanbic IBTC Holdings Plc garnered 5.2 per cent and 4.7 per cent respectively.
Other top price gainers include: Mutual Benefits Assurance Plc (3.5 per cent); WAPIC Insurance Plc (2.4 per cent) and Law Union & Rock Insurance Plc(1.9 per cent) Fidelity Bank Plc (1.5 per cent).
Conversely, The Initiates Plc led the price losers with 9.6 per cent, trailed by Continental Reinsurance Plc with 9.4 per cent. MCNichols Plc shed 9.2 per cent, just as Unity Bank Plc went down by 9.0 per cent. Unity Bank Plc recently partnered Selah Gardens organise an open day exhibition for gardeners and stakeholders in the botanical and horticultural fields.
The positive performance was sustained on Friday, making the market to recorded a growth of 0.23 per cent.
– Market Turnover –
In terms of turnover, a total turnover of 915.856 million shares worth N9.835 billion in 14,033 deals up from 639.317 million shares valued at N7.842 billion that exchanged hands the previous week in 10,477 deals.
However, the Financial Services Industry led the activity chart with 739.343 million shares valued at N6.374 billion traded in 7,447 deals, thus contributing 80.7 per cent and 64.8 per cent to the total equity turnover volume and value respectively. The Consumer Goods Industry followed with 65.480 million shares worth ₦2,044 billion in 2,772 deals. The third place was Conglomerates Industry with a turnover of 32.097 million shares worth ₦65.363 million in 491 deals.
Trading in the top three equities namely – Royal Exchange Plc, Guaranty Trust Bank Plc and First City Monument Bank Plc accounted for 427,419 million shares worth ₦4.082 billion in 1,461 deals, contributing 46.6 per cent and 41.5 per cent to the total equity turnover volume and value respectively.
– Price Gainers and Losers –
Meanwhile, 29 equities appreciated in price during the week, higher than 27 in the previous week, while 40 equities depreciated in price, higher than 32 of the previous week.
Wema Bank Plc led the price gainers with 17.8 per cent, trailed by CAP Plc with 15.9 per cent. Mutual Benefits Assurance Plc went up by 11.5 per cent, just as Niger Insurance Plc, WAPIC Insurance Plc, and Cornerstone Insurance Plc chalked up 10 per cent apiece.
Other top price gainers were: Okomu Oil Palm Plc (9.0 per cent)Neimeth International Pharmaceuticals Plc (8.4 per cent); Caverton Offshore Support Group Plc (7.0 per cent) and Redstar Express Plc (6.9 per cent).
Conversely, First Aluminium Nigeria Plc led the price lowers with 21.4 per cent, followed by MCNichols Plc with 18.0 per cent. Cutix Plc shed 17.5 per cent, just as John Holt Plc went down by 16.9 per cent. Other top price losers included: Champion Breweries Plc (10 per cent); Honeywell Flour Mills Plc (9.9 per cent); The Initiates Plc and Transcorp Hotels Plc (9.6 apiece); RT Briscoe Plc (9.5 per cent) and Guinea Insurance Plc (9.3 per cent).