NSE LIVE! Equities rally on improved earnings, gain N239b

In from Success Allantee …

Nigerian equities witnessed considerable recovery last week as improved corporate earnings and interim dividends combined with significant undervaluation of several stocks to quicken investors’ appetite.

The largely positive market situation left quoted equities with net capital gain of N239 billion, representing a week-on-week percentage increase of 2.41 per cent. This helped to moderate the negative average-year-to-date return at the stock market to -14.85 per cent.

Aggregate market value of all quoted companies on the Nigerian Stock Exchange (NSE) rose from its week’s opening value of N9.909 trillion to close the week at N10.148 trillion, additional capital gain of N239 billion.

The All Share Index (ASI), the common value-based index that tracks prices of all quoted companies, recovered to 29,511.08 points from its opening index of 28,814.62, an increase of 2.41 per cent.

The market performance was driven by both bargain-hunting for several undervalued stocks and the corporate earnings and dividend recommendations during the week. United Bank for Africa (UBA) declared interim dividend of 20 kobo to highlight the bank’s impressive half-year performance. Guinness Nigeria submitted its full-year earnings report with a dividend recommendation of N3.20 per share. Conoil also declared a dividend per share of N1.

Price trend analysis showed that 57 equities appreciated in price while 20 stocks depreciated. A total of 113 stocks closed flat.

Read also: NSE LIVE! Equities relapse as selling pressure returns

Total turnover stood at 2.440 billion shares worth N21.071 billion in 22,736 deals. In the previous week, a total of 2.051 billion shares valued at N17.869 billion were traded in 21,762 deals two weeks ago. The financial services sector led the activity chart with 2.027 billion shares valued at N14.261 billion traded in 12,944 deals; thus contributing 83.09% and 67.68% to the total equity turnover volume and value respectively. The natural resources sector followed with a turnover of 133.889 million shares worth N67.005 million in 16 deals. The third place was occupied by the Conglomerates Industry with 96.469 million shares worth N589.284 million in 1,238 deals.

The trio of Access Bank Plc.; Zenith International Bank Plc and United Bank for Africa Plc were the most active stocks. They accounted for 1.297 billion shares worth N10.047 billion in 4,732 deals, contributing 53.18% and 47.68% to the total equity turnover volume and value respectively.

Also traded during the week were a total of 11,357 units of Exchange Traded Products (ETPs) valued at N5.868 million executed in 24 deals compared with a total of 10,627 units valued at N678,291.94 transacted penultimate week in 22 deals.

A total of 3,489 units of Federal Government Bonds valued at N3. 674 million were traded this week in 8 deals.

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