NSE ASI appreciates on sustained bullish trading

Traders work at the Nigerian Stock Exchange in Lagos

The Nigerian stock market sustained its positive performance last week as foreign and domestic investors as investors played down election risk. Having appreciated 2.9 per cent the previous week, the market rose further last week, returning 3.7 per cent.

Specifically, the Nigerian Stock Exchange (NSE) All-Share Index (ASI) appreciated to 32,715.20, while market capitalisation added ₦442 billion to close at ₦12.2 trillion.

Similarly, all other indices finished higher with the NSE Oil & Gas Index leading with 5.9 per cent. It was followed by the NSE Consumer Goods Index with 5.4 per cent. The NSE Industrial Goods Index added 1.6 per cent, while the NSE Insurance Index gained 1.5 per cent.

Commenting on the market performance, analysts at Cordros Capital said: “We anticipate a peaceful election this weekend exercise, together with the still supportive macroeconomic picture, we guide investors to cherry pick fundamentally sound stocks in a bid to ride the wave of the market rally, post-polls.”

– Daily Market Performance –

The market rallied four days out of the five days of the week. It had opened the week on a positive note with 0.8 per cent gains on the back of price appreciation in Zenith Bank Plc, United Bank for Africa Plc and Unilever Nigeria Plc. The market rose further on Tuesday, gaining 2.1 per cent. It was a highly bullish trading day as 38 stocks appreciated compared with 14 that depreciated. Dangote Flour Mills Plc, Livestock Feeds Plc, NPF Microfinance Bank Plc and Jaiz Bank Plc led the price gainers with 10 per cent apiece. They were followed by Champion Breweries Plc with 9.8 per cent, while Union Bank of Nigeria Plc and Wema Bank Plc garnered 9.6 per cent and 9.2 per cent respectively.

Other top price gainers included: Transcorp Plc (8.9 per cent); Neimeth International Pharmaceuticals Plc (8.7 per cent); Royal Exchange Plc (7.6 per cent); Union Diagnostics and Clinical Services Plc (7.4 per cent); Oando Plc (7.2 per cent); Seplat (6.1 per cent), Nestle Nigeria Plc and Flour Mills of Nigeria Plc (6.0 per cent apiece.

Conversely, Regency Alliance Insurance Plc led the price losers with 8.0 per cent, trailed by UAC Property Development Company Plc with 7.8 per cent, while Unity Bank Plc and AIICO Insurance Plc shed 5.9 per cent and 5.1 per cent respectively.

Activity level also improved as volume and value traded for the day increased by 5.5 per cent and 42.2 per cent to 580.4 million units and N8 billion respectively. The most traded stocks by volume were Diamond Bank (125.8 million shares), Zenith Bank (63.2 million shares) and Guaranty Trust Bank (57.1 million share) while for the most traded stocks by value, GTBank (₦2.2 billion), Zenith Bank (₦1.6 billion) and Dangote Cement (₦1.5 billion) were the top stocks.

However, the market fell on Wednesday as investors locked in profits recorded in recent days of bullish trading In all, 22 stocks shed value led by C & I Leasing Plc with 9.9 per cent, trailed by Champion Breweries Plc with 9.5 per cent. United Capital Plc depreciated by 9.0 per cent, just as Consolidated Hallmark Insurance Plc went down by 7.1 per cent. Neimeth International Pharmaceuticals Plc lost 6.6 per cent.

On the positive side, Berger Paints Nigeria Plc and Unilever Nigeria Plc led the price gainers with 10 per cent apiece. Unity Bank Plc trailed with 9.4 per cent, just as Livestock Feeds Plc and Jaiz Bank Plc chalked up 9.0 per cent each.

Activity level also weakened as volume and value traded decreased by 18.95 per cent and 47.2 per cent as investors traded 470.4 million shares worth 4.24 billion. The top traded stocks by volume were Diamond Bank(131 million shares), Zenith Bank(44.08 million shares) and UBA (40.61 million shares) while the top traded stocks by value were Zenith Bank Plc (₦1.09 billion), and Dangote Cement Plc (₦653.67 million) and Guaranty Trust Bank Plc (₦522.75 million). The market rebounded on Thursday, rising 0.12 per cent to close at 32,453.69. Market capitalisation added ₦14.0 billion to close at ₦12.1 trillion.

Associated Bus Company Plc and Livestock Feeds Plc led the price gainers with 10 per cent apiece. Unity Bank Plc trailed with 9.6 per cent, just as Unilever Nigeria Plc. Wema Bank Plc went up by 6.7 per cent, while PZ Cussons Nigeria Plc chalked up 5.4 per cent.

Conversely, Union Bank of Nigeria Plc led the price losers with 8.3 per cent, trailed by Oando Plc with 5.1 per cent. Dangote Flour Mills Plc shed 4.5 per cent and Union Diagnostic went down by 3.2 per cent among others.

In all, investors traded 422.7 million shares worth ₦3.7 billion, which is lower than the previous day’s performance. The most active stocks by volume were Diamond Bank (97.6 million shares), Transcorp (41.1 million shares) and Zenith Bank (40.3 million shares) while Zenith Bank (₦997.1 million), GTBank (₦992.6 million) and Access Bank (₦263.7 million) led in terms of value.

In terms of sectoral performance, three out of five sectors tracked advanced. The NSE Insurance Index led with 1.2 per cent. It was followed by the NSE Industrial Index and NSE Consumer Goods Index with 0.7 per cent and 0.3 per cent in that order. On the contrarily, the NSE Oil & Gas Index and NSE Banking Index shed 0.8 per cent and 0.5 per cent in that order. The positive performance was sustained on Friday, leading to a weekly appreciation of 4.6 per cent.

– Market Turnover –

Meanwhile, investors traded 2.834 billion shares worth ₦28.138 billion in 28,739 deals last week, up from 1.894 billion shares valued at ₦26.884 billion that exchanged hands two weeks ago in 19,213 deals.

However, the Financial Services Industry led the activity chart with 2.261 billion shares valued at ₦20.117 billion traded in 17,838 deals, thus contributing 79.7 per cent and 71.4 per cent to the total equity turnover volume and value respectively.

The Conglomerates Industry followed with 292.191 million shares worth ₦525.329 million in 1,948 deals, while the third place was occupied by the Consumer Goods with a turnover of 116.843 million shares worth ₦2.525 million in 4,114 deals. Trading in the top three equities namely, Diamond Bank Plc, Access Bank Plc and Transnational Corporation of Nigeria Plc accounted for 1.116 billion shares worth ₦3.707 billion in 4,179 deals.

Also traded during the week were a total of 1.271 million units of Exchange Traded Products (ETPs) valued at ₦9.782 million executed in seven deals compared with a total of 6,590 units valued at ₦55,711.29 that was transacted the previous week in two deals. A total of 1,460 units of Federal Government Bonds valued at ₦1.472 million were traded last week in nine deals compared with a total of 2,668 units valued at ₦2.886 million transacted two weeks ago in 14 deals.

– Price Gainers and Losers –

In terms of price movement for the week, 60 equities appreciated higher than 53 in the previous week, while 21 equities depreciated in price, the same number of price losers the previous week.

Wema Bank Plc led the price gainers with 45 per cent, trailed by Livestock Feeds Plc with 44 per cent. Dangote Flour Mills Plc chalked up 33.5 per cent, just as Transcorp Plc garnered 28.5 per cent. Royal Exchange Plc and Oando Plc ended the week 26.9 per cent and 20 per cent higher respectively.

Other top price gainers included: Unilever Nigeria Plc, Unity Bank Plc (17.5 per cent apiece); Mutual Benefits Assurance Plc (17.3 per cent) and Jaiz Bank Plc (15.0 per cent).

Conversely, C & I Leasing Plc led the price losers with 18.9 per cent, followed by MRS Oil Nigeria Plc with 9.9 per cent. Academy Press Plc shed 9.7 per cent, just as Medview Airline Plc went down by 8.1 per cent. UAC of Nigeria Plc lost 7.4 per cent, while Total Nigeria Plc and UACN Property Development Plc shed 6.6 per cent respectively. Other top price losers included: First Aluminium Nigeria Plc (6.4 per cent); Sterling Bank Plc (6.0 per cent) and Forte Oil Plc (5.7 per cent).

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