NSE ROUNDUP: Market returns biggest weekly gain as fixed-income fund chase stocks

The Nigerian Stock Exchange (NSE) reported a humongous return this week, with an outpouring of funds from the fixed income market, where yields are currently low, seeking equity investment at all costs.

Liquidity was at its full throttle and the frenzied rush for stocks on Thursday not only forced the NSE authority to quickly halt trade and summon an emergency meeting to curb the sudden volatility but also pushed that day’s gain to N1.084 trillion, equivalent to more than half of the whole week’s gain.

A circuit breaker had alerted the market when the All Share Index (ASI) crossed the 5% threshold, the maximum percentage rise permitted by the market, automatically signalling a cessation of trade.

Never since April 2015 had the NSE posted a gain that huge.

With a number of yet to come in, investors’ sentiment is expected to strengthen further if most of companies’ 9-month financial statements coming in in the week ahead turn out impressive.

Read also: NSE ROUNDUP: Bull run lifts volume of trade by 8% amid higher investors’ confidence

All the key market performance indicators climbed further. A positive market breadth was recorded as 69 gainers emerged against 12 losers. The All Share Index (ASI) and market capitalisation simultaneously lifted by 12.97%. While the former closed at 35.037.46 basis points, the latter closed at N18.308 trillion.

Trade volume of 4.509 billion shares worth N58.733 billion was recorded in 47.140 deals relative to the 2.067 billion shares valued at N22.636 billion posted in 25,187 deals last week.

On the activity chart, the Financial Services sector dominated trade with 3.073 billion shares estimated at N35.408 billion traded in 25,894 deals. Specifically, it added 68.15% and 60.29% to the total equity volume and value respectively. The Conglomerates Goods Industry came next, trading 437.822 million shares worth N771.280 billion in 1,864 deals. The Consumer Goods Industry was third, trading 373.613 million shares priced at N7.816 billion in 7,471 deals.

As regards index movement, all indices appreciated save the NSE ASem Index, which did not budge.

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