NSE Roundup! Equities sustain rally amidst emerging stocks push

Nigerian equities played along with the global emerging markets last week as increased demand for high-cap stocks on the Nigerian Stock Exchange (NSE) rallied the overall market to a positive close.

With key indices across the global markets showing equities were on the upswing, Nigerian equities also braced the odd of a mid-week increase in benchmark interest rate by the Central Bank of Nigeria (CBN) to sustain a modest rally.

Aggregate market value of all quoted equities on the NSE rose from its week’s opening value of N8.839 trillion to close the four trading-sessions week at N8.909 trillion. The All Share Index (ASI)- the common-share value-based index that tracks prices of all quoted equities on the NSE, closed the week at 25,899.91 points as against its week’s opening index of 25,694.79 points.

Nigerian equities had stumbled on Wednesday, the first trading session after the apex bank increased interest rate, but demand for dividend-paying and undervalued stocks rallied the market back to the positive on Thursday. Thursdaywas the last trading session after the Federal Government declared Friday and Monday as Easter holiday.

The Monetary Policy Committee (MPC) of the apex bank had on Tuesday announced the increase in the Monetary Policy Rate (MPR) from 11 per cent to 12 per cent.

Nigerian equities have sustained a largely positive outlook this month, riding on the back of announced and prospective earnings. Not less than five companies announced their audited annual reports and accounts last week, with dividend recommendation in most instances running around double-digit dividend yields.

The considerable dividend yields and prospects of capital gains have quickened investors’ appetite in recent trading sessions. The rally has however remained around influential highly capitalised stocks while underlying selling sentiments continued to depress several stocks.

The positive outlook at the Nigerian stock market also reflected the global outlook for emerging markets. Across the continents, emerging stocks were largely on the upbeat.

In Africa, Egyptian EGX Index indicated a gain of 0.8 per cent, like Nigeria’s ASI.  Kenya’s Nairobi Stock Exchange Index appreciated by 1.2 per cent while Ghanaian GSE Index closed flat.

The India BSE Sens  rose by 1.5 per cent. The Chinese Shanghai Composite appreciated by 0.2 per cent. However, Brazilian Ibovespa lost 3.6 per cent while the South African JSE/FTSE Index also dropped by 3.3 per cent.

Sectoral analysis of pricing trend at the Nigerian stock market underlined the continuing widespread selling pressure in spite of the positive overall market position. While gains by highly capitalised stocks boosted many indices, most indices closed on the negative. The NSE Main Board Index, which tracks all quoted equities on the main board, rose by 1.68 per cent. The NSE 30 Index, which tracks the 30 most capitalised stocks, recorded a week-on-week gain of 1.47 per cent. The NSE Banking Index appreciated by 1.37 per cent while the NSE Consumer Goods Index increased by 4.96 per cent.

There were 22 advancers against 38 decliners last week as against 20 advancers and 41 decliners recorded in the previous week. The larger chunk of quoted equities, especially in the insurance and information and communication technology sectors, remained dormant. A total of 129 stocks were unchanged last week as against 128 stocks that closed flat in previous week.

On the negative side, the NSE Premium Index, which tracks the trio of Dangote Cement, FBN Holdings and Zenith Bank Internationals, dropped by 0.66 per cent. The NSE Insurance Index depreciated by 1.65 per cent. The NSE Oil and Gas Index recorded the highest loss of 3.69 per cent. The NSE Industrial Goods Index declined by 0.37 per cent. The NSE ASeM Index, which tracks emerging stocks, dropped by 0.21 per cent. The NSE Lotus Islamic Index, which tracks stocks that comply with Islamic investment rules, slipped by 0.90 per cent while the NSE Pension Index, which tracks some 40 stocks specially screened in line with pension investment rules, depreciated by 0.31 per cent.

United Capital recorded the highest percentage gain of 17.65 per cent to close at N2. Fidelity Bank followed with a gain of 14.17 per cent to close at N1.37. Nigerian Breweries rose by 12.10 per cent to close at N117.70. Vitafoam Nigeria rallied 10.02 per cent to close at N4.72 while Transnational Corporation of Nigeria rose by 6.25 per cent to close at N1.19 per share.

On the other hand, African Prudential Registrars dropped by almost a quarter with a loss of 21.56 per cent to close at N2.51. Nascon Allied Industries dropped by 14.21 per cent to close at N6.52. Cadbury Nigeria declined by 14.13 per cent to close at N14.77. Tiger Branded Consumer Goods dropped by 12.07 per cent to close at N2.55 while Honeywell Flour Mills dropped by 11.11 per cent to close at N1.44.

Total turnover stood at 1.55 billion shares worth N10.45 billion in 14,994 deals last week as against a total of 11.91 billion shares valued at N18.34 billion traded in 19,508 deals. Financial services sector led the activity chart with 1.19 billion shares valued at N7.30 billion in 10,457 deals; representing 76.5 per cent and 70 per cent of total equity turnover volume and value respectively. The consumer goods sector followed with a turnover of 160.33 million shares worth N1.55 billion in 2,167 deals. The conglomerates sector recorded a turnover of 79.55 million shares worth N122.75 million in 527 deals.

The trio of Zenith Bank International Plc, Guaranty Trust Bank Plc and United Capital Plc were the most active with a joint turnover of 536.25 million shares worth N5.85 billion in 4,735 deals, representing 34.55 per cent and 55.98 per cent of the total equity turnover volume and value respectively.

Also traded during the week were a total of 118,976 units of Exchange Traded Products (ETPs) valued at N1.267 million executed in 20 deals compared with a total of 294,047 units valued at N3.209 million traded in 42 deals in the previous week.

In the bond segment, a total of 91,918 units of Federal Government Bonds valued at N100.479 million were traded in seven deals compared to a total of 12,470 units of Federal Government Bonds valued at N14.348 million traded in eight deals in the previous week.

 

 

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