NSE Roundup! Nigerian equities buck African trend with N133b gains
Nigerian equities rode against the generally negative trend that stretched through most major African equities market last week to post net capital gain of N133 billion as investors showed keen interest in Nigerian downstream oil sector.
Considerable rallies within the oil and gas sector and early positioning for the expected third quarter earnings of quoted companies spurred Nigerian equities ahead of South Africa’s, along the same positive returns of most advanced markets and against the downtrend that marked African equities.
The All Share Index (ASI), the value-based common index that serves as sovereign index for the Nigerian equities market, indicated average week-on-week gain of 1.39 per cent rising from the week’s opening index of 27,858.48 points to close the week at 28,247.07 points. Aggregate market value of all quoted equities on the Nigerian Stock Exchange (NSE) rose from the week’s opening value of N9.570 trillion to close the week at N9.703 trillion, representing a gain of N133 billion.
The rally at the Nigerian stock market underlined widespread positive sentiments as most pundits believed that negative macroeconomic data and tough operating environment had substantially undervalued quoted equities, making them attractive even in the face of rising inflation.
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Analysis of the pricing trend showed improved investors’ appetite. There were 33 advancers against 25 decliners last week compared with 34 advancers and 26 decliners recorded two weeks ago. Conoil Plc, which recently declared 200 per cent in dividend payout as its earnings jumped, continued its rally, recording the week’s highest gain of 33.48 per cent to close at N42.50. Cutix followed with a gain of 19.4 per cent to close at N2.03.
Total Nigeria rose by 18 per cent to close at N295. Oando appreciated by 15.3 per cent to close at N5.88. Cadbury Nigeria rose by 14.1 per cent to close at N15.75. Stanbic IBTC Holdings improved by 9.4 per cent to N16.95. MRS Oil Nigeria rose by 8.9 per cent to close at N39.90. Eterna Plc appreciated by 8.3 per cent to N3.14 per share. Zenith Bank appreciated by 7.59 per cent to close at N15.60 while PZ Cussons Nigeria rose by 6.41 per cent to close at N20.75.
Total turnover last week stood at 4.33 billion shares worth N16.80 billion in 16,797 deals compared with a total of 611.53 million shares valued at N5.5 billion traded in 9,650 deals in the previous week. Financial services sector accounted for 4.18 billion shares valued at N9.8 billion in 9,805 deals; contributing 96.5 per cent and 58.3 per cent of the total equity turnover volume and value respectively.
The three most active stocks were Great Nigeria Insurance Plc, FCMB Group Plc and Diamond Bank Plc, which altogether accounted for 3.3 billion shares worth N3.70 billion in 1,308 deals, representing 76.18 per cent and 22.0 per cent of the total equity turnover volume and value respectively.
Also traded during the week were a total of 615 units of Exchange Traded Products (ETPs) valued at N6,070 in 21 deals compared with a total of 945 units valued at N9,541 traded in 18 deals in the previous week.
In the debt segment, a total of 3,394 units of Federal Government bonds valued at N3.263 million were traded in five deals compared with a total of 1,700 units of Federal Government bonds valued at N1.59 million traded in six deals penultimate week.
The performance of the Nigerian equities was contrary to the negative returns in other African markets. Besides South Africa which closed with marginal gain of 0.1 per cent, other major African markets closed in the red. Kenya’s Nairobi Stock Exchange declined by 1.1 per cent. Egypt’s EGX 30 Index indicated a drop of 0.8 per cent while Ghana’s Ghana Stock Exchange Composite Index slipped by 0.6 per cent.
Meanwhile, the advanced markets of Europe, America and Asia were generally positive. In the United States, the twin indicators, S & P and NASDAQ rose by 1.8 per cent each. In London, United Kingdom’s FTSE Index appreciated by 3.0 per cent. Germany’s DAX Index rose by 3.9 per cent. France’s CAC Index gained 2.9 per cent
Japan’s Nikkei Index appreciated by 1.7 per cent. Hong Kong’s HANG-SENG Index rose by 1.8 per cent. China’s Shanghai Composite Index returned 1.0 per cent weekly gain. Russia’s RTS Index rose by 4.2 per cent while Brazil’s IBOVESPA Index appreciated by 3.4 per cent.
Market analysts were cautiously optimistic that the expected release of third quarter earnings in the next few weeks could continue to drive equities performance. However, a two-week sustained uptrend could trigger mild profit-taking.
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