NSE RoundUp! Nigerian equities rally N107b gain despite weak data

Nigerian equities brushed through midweek scare of weak macroeconomic data to record net capital gains of N107 billion in the past five-day trading week, broadly in tune with the positive sentiments in the global equities market.

The National Bureau of Statistics (NBS) on Wednesday released much awaited macroeconomic data. The data showed that economic output declined for the second consecutive quarter as GDP dropped further by 2.1 per cent in the second quarter. Inflation rate also rose from 16.4 per cent in June to 17.1 per cent in July.

With Nigerian equities already substantially undervalued due to sustained price depreciation, the weak macroeconomic data did not trigger a massive sell-down. In contrast, equities rallied to their 2-month high the next day on Thursday. Profit-taking moderated the market to close with a gain of N107 billion by the weekend.

Aggregate market value of all quoted equities on the Nigerian Stock Exchange (NSE) closed weekend at N9.535 trillion, N107 billion above the week’s opening value of N9.428 trillion. The All Share Index (ASI), the benchmark sovereign index for Nigerian equities’ market, recorded a week-on-week gain of 1.11 per cent. The net gain during the week helped to reduce the negative average year-to-date return to -3.09 per cent.

Global, investors’ sentiments were positive from Europe to America and across the Asia, Africa and Middle East.  In the United States of America (USA), the twin indices, S & P and NASDAQ rose by 0.7 per cent each. In United Kingdom, the UK FTSE Index appreciated by 0.4 per cent. Japan’s NIKKEI Index rallied 3.5 per cent. Hong Kong’s HANG-SENG rose by 1.7 per cent. France’s CAC 40 Index added 1.6 per cent while Germany’s DAX Index inched up by 0.5 per cent.

In the emerging markets, Brazil’s Ibovespa Index rose by 0.9 per cent while Russin’s RTS Index appreciated by .0.4 per cent. However, China’s SHANGHAI Composite Index declined by 0.1 per cent while South Africa’s FTSE dropped by 1.0 per cent.

Read Also: NSE LIVE! Equities’ rally gathers momentum with N282b gain

African markets were largely positive. Ghana led the continent with a week-on-week gain of 4.0 per cent. Egypt’s EGX 30 Index halted two-week losing streak to close with a modest gain of 0.1 per cent. Meanwhile, Kenya’s Nairobi Stock Exchange Index dropped by 0.6 per cent.

On the Nigerian stock market, total turnover stood at 1.115 billion shares worth N13.817 billion in 16,083 deals last week in contrast to a total of 1.124 billion shares valued at N13.839 billion that exchanged hands in 15,625 deals two weeks ago.

The financial services industry led the activity chart with 993.823 million shares valued at N7.279 billion traded in 10,135 deals; thus contributing 89.11 per cent and 52.68 per cent of the total equity turnover volume and value respectively.

The consumer goods industry followed with 48.047 million shares worth N4.365 billion in 2,682 deals. The third place was occupied by the conglomerates industry with a turnover of 31.648 million shares worth N109.579 million in 487 deals.

Three banks-Guaranty Trust Bank Plc, United Bank for Africa Plc and Diamond Bank Plc, were the most active stocks, altogether accounting for 394.511 million shares worth N4.397 billion in 3,142 deals, representing 35.37 per cent and 31.82 per cent of the total equity turnover volume and value respectively.

Also traded during the week were a total of 29,242 units of Exchange Traded Products (ETPs) valued at N283,495 traded in 42 deals, compared with a total of 16,397 units valued at N1.961 million traded in 37 deals in previous week.

A total of 4,470 units of Federal Government bonds valued at N4.313 million were traded in eight deals compared to a total of 1,650 units of Federal Government Bonds valued at N1.690 million traded in three deals two weeks ago.

The market witnessed improved investors’ appetite, although the underlying negative sentiments continued to depress a large segment of equities. There were 28 advancers against 31 decliners last week as against 27 advancers and 25 decliners recorded in the previous week. A total of 121 stocks closed flat, lower than 128 recorded in previous week.

Share price analysis further indicated that Seven-Up Bottling Company recorded the highest gain, in percentage terms, with a week-on-week gain of 28.23 per cent to close at N144.90. Wema Bank followed with a gain of 17.2 per cent to close at 75 kobo. Seplat Petroleum Development Company rose by 15.8 per cent to close at N318.33. Presco rallied 11.9 per cent to close at N45.30 while Skye Bank gathered 8.47 per cent to close at 64 kobo.

On the downside, May & Baker Nigeria led with a loss of 19.80 per cent to close at 81 kobo. Unity Bank dropped by 10.71 per cent to close at 75 kobo. Julius Berger Nigeria lost 9.71 per cent to close at N43.69. Cutix declined by 9.09 per cent to close at N1.50 while Caverton Offshore Support Group declined by 8.9 per cent to close at N1.33 per share.

“In the week ahead, performance is expected to remain weak on back of frail macroeconomic activities and waning investor sentiment for equities,” Afrinvest Securities, a Lagos-based dealer on the NSE, stated in a preview of the new week.

 

 

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