Nigerian equities sustained a largely bullish performance during the immediate past week, leaving investors with net capital gains of N165 billion at the weekend. Benchmark indices at the Nigerian Stock Exchange (NSE) showed widespread positive sentiment as quoted companies rounded off the submission of their third quarter earnings.
The deadline for the submission of the nine-month third quarter earnings for quoted companies elapsed on Tuesday October 31, 2017. Most active companies met the deadline.
The All Share Index-the value-based index that tracks share prices at the NSE, trended upward to 36,939.59 points at the weekend as against its week’s opening index of 36,462.26 points. This represented a week-on-week average return of 1.31 per cent.
Aggregate market value of all quoted companies correspondingly rose from its week’s opening value of N12.619 trillion to close the week at N12.784 trillion, representing net capital gain of N165 billion. The uptrend nudged the average year-to-date return at the Nigerian equities market to 37.45 per cent..
The performance of the Nigerian equities market highlighted the global demand for quoted shares during the week. From the advanced markets of Europe, Britain and America to the emerging markets of the Asia and Africa, global equities showed a largely positive performance.
In Africa, South Africa’s FTSE-JSE All Share Index appreciated by 1.6 per cent. Kenya’s benchmark NSE 20 Index posted a return of 4.2 per cent. Egypt’s EGX 30 Index gained 2.6 per cent while Ghana’s GSE Composite Index posted a modest week-on-week return of 0.6 per cent.
In the developed and global emerging markets, United Kingdom’s FTSE Index rose by 0.8 per cent. In United States of America, while the S & P 500 was unchanged, the US NASDAQ Index rose by 0.6 per cent. Germany’s XETRA Index posted a gain of 1.9 per cent. Japan’s Nikkei 225 Index rose by 2.4 per cent. Hong Kong’s Hang Seng Index inched up by 0.6 per cent. France’s CAC 40 Index posted a modest gain of 0.2 per cent while India’s BSE Sens indicated above-average return of 1.6 per cent. However, Brazil’sIbovespa Index declined by 3.5 per cent. Russia’s RTS Index slipped by 2.2 per cent while China’s Shanghai Composite Index declined by 1.3 per cent.
Total turnover at the Nigerian stock market stood at 1.363 billion shares worth N17.714 billion in 21,891 deals last week in contrast to a total of 1.394 billion shares valued at N16.403 billion that exchanged hands in 19,195 deals two weeks ago. The financial services industry led the activity chart with 1.046 billion shares valued at N9.032 billion traded in 12,847 deals; thus contributing 76.79 per cent and 50.99% to the total equity turnover volume and value respectively. The consumer goods industry followed with 119.907 million shares worth N5.109 billion in 4,827 deals. The third place was occupied by healthcare industry with a turnover of 70.587 million shares worth N77.530 million in 349 deals.
The three most active stocks were FBN Holdings Plc, Diamond Bank Plc and United Bank for Africa Plc, which accounted for 497.016 million shares worth N2.947 billion in 4,205 deals, contributing 36.48 per cent and 16.64 per cent to the total equity turnover volume and value respectively.
Also traded during the week were a total of 1.16 million units of Exchange Traded Products (ETPs) valued at N6.404 million executed in 13 deals compared with a total of 104,544 units valued at N11.506 million traded in seven deals two weeks ago.
In the sovereign debt market, a total of 2,775 units of Federal Government bonds valued at N2.770 million were traded in four deals, compared with a total of 559 units valued at N485,803 traded in five deals penultimate week.
All sectoral indices at the Exchange closed positive with the exception of the NSE Consumer Goods Index, which slipped by 0.07 per cent. The NSE 30 Index-which tracks the 30 most capitalised companies at the Exchange, posted a gain of 0.92 per cent. The NSE Banking Index appreciated by 0.27 per cent. The NSE Insurance Index rose by 1.52 per cent. The NSE Oil and Gas Index posted a gain of 1.44 per cent while the NSE Industrial Goods Index rose by 1.45 per cent.
There were 37 advancers against 29 decliners last week as against 33 advancers and 32 decliners recorded in the previous week. University Press recorded the highest gain of 26.34 per cent to close at N2.59. Learn Africa appreciated by 19.05 per cent to close at N1 while Flour Mills Nigeria rose by 18.23 per cent to close at N35.47 per share.
On the downside, Newrest ASL led the decliners with a drop of 18.3 per cent to close at N6.43. Linkage Assurance dropped by 13.3 per cent to close at 78 kobo while Unilever Nigeria lost 6.5 per cent to close at N40 per share.
“In the coming week, we expect the positive performance to be sustained given the increasingly favourable condition in the oil market – a major anchor of the business cycle. Following a broadly positive performance and investor sentiment this week, we expect the market to sustain momentum as knock-on effect of the oil rally buoys investors’ appetite for Nigerian assets,” analysts at Afrinvest Securities stated.
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