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NSE LIVE! Equities lead global stock with 4.18% gain

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NSE LIVE! Petroleum majors lead equities rally

In from Success Allantee …
Nigerian equities gained more than a double of the best return in the global stock market last week as strong four-day consecutive rally neutralised last-day relapse and left the market with its highest week-on-week performance in recent weeks.
After losing N1.13 trillion in July, the Nigerian stock market opened August with considerable rally. Day-on-day gain between Monday and Thursday moderated the built-up negative average year-to-date return. However, the market relapsed on the last trading day on Friday as investors turned round to profit-taking.
The All Share Index (ASI), the common value-based index that tracks prices of all quoted equities on the Nigerian Stock Exchange (NSE), closed last week with a week-on-week gain of 4.18 per cent. It closed weekend at 31,441.71 points as against the week’s opening index of 30,180.27 points. Also, aggregate market value of all quoted companies rose to N10.776 trillion; representing an increase of N432 billion on its week’s opening value of N10.344 trillion. The gain last week moderated the negative average year-to-date return to -9.28 per cent.
A review of major advanced and emerging global markets showed that Nigerian equities outperformed other markets with considerable margin. The United States’ Standards & Poor’s 500 ( S & P 500) and the NASDAQ declined by 1.6% and 1.1% respectively. In Europe, the United Kingdom’s FTSE recorded a modest week-on-week gain of 0.5 per cent. France CAC and German DAX outperformed other advanced markets with weekly gain of 2.2% and 2.0%. In Asia, the Shanghai Composite Index rose by 2.2% as against modest decline of 0.3% by Hong Kong Hang Seng. The Japanese Nikkei appreciated by 0.7%.
In the emerging markets under the BRICS group (Brazil, Russia, India, China and South Africa), Russia’s RTS indicated a negative return of -2.4% while the Brazilian IBOVESPA also declined by 2.7%. On the positive side, the South African FTSE and the India BSE Sens returned 0.6% and 0.4% respectively. Most African markets recorded positive performance, albeit lower than Nigeria’s. The Egypt EGX (Egypt General Index) rose by 0.1% while Kenya’s Nairobi Stock Exchange (NSE) Index inched up by 0.2%. However, Ghana Stock Exchange (GSE) Index declined by 1.0%.
Analysts however remained cautious of the outlook at the Nigerian stock market, noting that the recovery last week was driven largely by bargain-hunting for stocks that had been mostly undervalued by the preceding sustained depression.
“The positive performance of the market this week was driven mainly by the fact that value stocks had declined to relatively low prices however, this rally is not expected to be sustained as there still remains no major trigger to move stocks Northwards so investors are advised to trade cautiously,” Afrinvest Securities stated.
In Nigeria, low-priced stocks, otherwise known as penny stocks, were the toasts of investors during the week. Penny stocks dominated the top-gainers’ list with Evans Medical leading the pack with a gain of 38.9 per cent to close at 75 kobo. Transnational Corporation of Nigeria (Transcorp) recorded the second highest percentage gain of 29.1 per cent to close at N2.66. PZ Cussons Nigeria recorded exceptional gain of 25.26 per cent to close at N34.51, the largest gain by any high-priced stock. May & Baker Nigeria also rose by 14.5 per cent to close at N1.50 while Continental Reinsurance appreciated by 12.05 per cent to close at 93 kobo. Altogether, there were 37 gainers against 29 losers during the week while 124 stocks were flat.
Total turnover increased to 2.38 billion shares worth N18.99 billion in 19,769 deals last week as against a total of 1.37 billion shares valued at N17.95 billion traded in 17,391 deals in the previous week. Financial services sector remained the dominant sector with a turnover of 1.996 billion shares valued at N13.195 billion in 11,232 deals; representing 83.79 per cent and 69.49 per cent of the total equity turnover volume and value respectively. Conglomerates sector occupied a distant second position on the activity chart with a turnover of 106.53 million shares worth N425.53 million in 1,150 deals. The third place was occupied by natural resources sector, which recorded turnover of 100.021 million shares worth N50.103 million in 16 deals.
The trio of Continental Reinsurance Plc; Zenith International Bank Plc, and Axamansard Insurance Plc were the most active stsocks, accounting for a total of 1.03 billion shares worth N5.21 billion in 2,339 deals, about 43.4 per cent and 27.4 per cent of the total equity turnover volume and value respectively.
Also traded during the week were a total of 6,639 units of Exchange Traded Products (ETPs) valued at N999,551, which were traded in 22 deals. In the previous week, a total of 26,580 units of ETPs valued at N1.719 million were traded in 24 deals. Investors also bought 14,473 units of Federal Government Bonds valued at N15.576 million through six deals.

Read also: NSE LIVE! Index drops by 0.17% as profit-taking halts equities’ rally

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