NSE Roundup! Equities in cautious trades as investors await Q2 results

Nigerian equities traded largely last week on a cautious mode, fluctuating between low price appreciation and depreciation as investors await the second quarter and half year results of quoted companies. With 22 advancers to 38 decliners, benchmark indices traded in the negative in three of the five trading sessions, leaving the stock market with a net week-on-week loss of N17 billion or 0.17 per cent.

The performance of the Nigerian equities fell broadly within the context of the African markets’ performance during the week, as share prices crashed from Kenya to Ghana. The global equities markets meanwhile were largely on the positive with considerable gains across Europe, America and Asia.

After running successive declines that had marked out July as a down month, Nigerian equities last week appeared to enter the pause mode, with investors weighing portfolio allocations and prospective returns as quoted companies started to release their half-year results. Initial reports by Nigerian Breweries and United Capital showed mixed performance, highlighting the caution that will shape the markets in the period ahead. While Nigerian Breweries reported decline in net profit due to foreign exchange (forex) loss, United Capital showed considerable growth.

The benchmark index for the Nigerian stock market, the All Share Index (ASI), declined from its week’s opening index of 28,854.98 points to close the week at 28,805.45 points, representing a week-on-week depreciation of 0.17 per cent. Aggregate market value of all quoted equities on the Nigerian Stock Exchange (NSE) dropped from N9.910 trillion to close at N9.893 trillion, indicating a net week-on-week loss of N17 billion.

There were 22 gainers against 38 losers last week as against nine gainers against 48 losers recorded in the previous week. The larger segment of equities however remained dormant. A total of 120 stocks closed flat last week, slightly below 123 stocks recorded in the previous week.

Sectoral and group indices reflected the underlying negative sentiments and cautious trades across the sectors. The NSE Premium Index, NSE 30 Index, NSE Consumer Goods Index and the NSE Industrial Goods Index appreciated by 0.11 per cent, 0.17 per cent, 0.95 per cent and 1.46 per cent respectively. However, the NSE Oil & Gas Index dropped by 1.3 per cent. The NSE Banking Index declined by 0.2 per cent while the NSE Insurance Index slipped by 1.8 per cent. Honeywell Flour Mills recorded the highest gain, in percentage terms, of 14.8 per cent. Zenith Bank rose by 6.0 per cent while Livestock Feeds inched up by 5.0 per cent. However, Skye Bank continued its weight shedding with a loss of 31 per cent. Nigeria Police Force Microfinance Bank dropped by 21.0 per cent   while Transnationwide Express declined by 18.55 per cent.

Read also: NSE LIVE! Equities continue downtrend amidst mixed earnings 

Total turnover stood at 1.149 billion shares worth N13.616 billion in 21,868 deals as against a total of 377.798 million shares valued at N3.641 billion that traded in 7,466 deals in the previous week. The financial services industry led the activity chart with 868.827 million shares valued at N6.110 billion traded in 13,046 deals; thus contributing 75.59 per cent and 44.87 per cent to the total equity turnover volume and value respectively. The conglomerates industry followed with 103.304 million shares worth N272.848 million in 1,111 deals. The third place was occupied by the consumer goods industry with a turnover of 66.743 million shares worth N3.501 billion in 3,368 deals.

Banking stocks continued to dominate activities chart. The three most active stocks were FBN Holdings Plc, Guaranty Trust Bank Plc and Access Bank Plc, which jointly accounted for 353.999 million shares worth N3.867 billion in 4,188 deals, contributing 30.80 per cent and 28.40 per cent to the total equity turnover volume and value respectively.

Also traded during the week were a total of 941 units of Exchange Traded Products (ETPs) valued at N2.646 million executed in 22 deals, compared with a total of 35 units valued at N374 traded in seven deals in the previous week. A total of 44,381 units of Federal Government Bonds valued at N44.679 million were traded in five deals last week compared to a total of 13,767 units of Federal Government Bonds valued at N14.356 million traded in same five deals two weeks ago.

African equities were largely negative last week. Key African markets closed in the red, with the exception of Egypt where the benchmark EGX 30 Index appreciated by 5.6 per cent. Kenya’s Nairobi Stock Exchange20 Index dropped by 2.5 per cent Ghana’s composite index slipped by 0.7 per cent.

Equities showed brighter outlooks in Europe, Asia and America. In United States of America, the S & P 500 Index and NASDAQ improved by 1.7 per cent and 1.5 per cent respectively. In Europe, the anxieties around Brexit appeared to be waning. The United Kingdom’s FTSE Index rose by 1.3 per cent. Germany’s DAX Index appreciated by 4.4 per cent while France’s CAC Index rose by 4.2 per cent. in Asia, Japan’s Nikkei 225 Index soared by 9.2 per cent while the Hong Kong Hang Seng rallied by 5.2 per cent.

Within the emerging markets bloc of Brazil, Russia, India, China and South Africa, the numbers were largely in green. Brazil’s IBOVESPA Index appreciated by 4.5 per cent. Russia’s RTS Index rose by 0.9 per cent. India’s Bombay Stock Exchange Sens Index rallied by 2.6 per cent. China’s benchmark index appreciated by 2.2 per cent while South Africa’s FTSE Index rose by 3.4 per cent.

“In the coming week, we expect performance to be broadly shaped by further influx of first half 2016 corporate earnings,” Afrinvest Securities stated.

 

 

 

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