NSE RoundUp! Nigerian equities rally N2.62tn gain in second quarter

The market value of the investors in quoted Nigerian equities appreciated by more than N2.62 trillion in the past three months as improved fiscal and monetary management redirected foreign and domestic’ funds to the equities market.

The second quarter witnessed a major rally at the Nigerian Stock Exchange (NSE), which counterbalanced the deficit in the first quarter and pushed the overall market position to the positive side. Key benchmark indices at the NSE at the weekend showed that the market posted a quarter-on-quarter average return of 29.79 per cent, equivalent to net capital gain of N2.623 trillion.

Aggregate market value of all quoted equities rose from the opening value of N8.829 trillion in April to close June at N11.452 trillion, representing an increase of N2.62 trillion. The All Share Index (ASI)-the common value-based index that tracks prices at the Exchange, showed corresponding appreciation from the quarter’s opening index of 25,516.34 points to close at 33,117.48 points.

The three-month review of sectoral indices for the period ended June 30, 2017 at the weekend also showed considerable gains across the sectors, underlining the widespread positive sentiments that drove share pricing during the period.

The NSE Banking Index, which tracks price appreciation in the most active banking sector, indicated a quarter-on-quarter average return of 45.11 per cent. The NSE Industrial Goods Index posted a return of 21.03 per cent. The NSE Insurance Index recorded a return of 11.34 per cent. The NSE Consumer Goods Index posted a gain of 26.70 per cent. The NSE Oil and Gas Index recorded a return of 10.51per cent while the NSE 30 Index, which tracks the 30 most capitalised stocks, rose by 32.40 per cent. However, the NSE ASeM Index, which tracks equities on the Alternative Securities Market (ASeM) for emerging stocks, recorded a negative return of -1.70 per cent within the three-month period.

Equities sustained a quarter-round rally with a net capital gain of N344 billion during the last week of the quarter. Aggregate market value of all quoted equities at the NSE rose last week from N11.108 trillion to close the week at N11.452 trillion, representing net capital gain of N344 billion. The ASI also rallied from 32,122.14 points to close the week at 33, 117.48 points.

Total turnover stood at 1.171 billion shares worth N11.458 billion in 13,763 deals during the three-day trading session compared with a total of 2.311 billion shares valued at N24.577 billion traded in 27,836 deals in the previous five-day trading week.

Read also: NSE LIVE! Equities’ rally gathers momentum with N212bn gain

The financial services sector led the activity chart with 899.307 million shares valued at N6.779 billion traded in 7,977 deals; thus contributing 76.78 per cent and 59.16 per cent to the total equity turnover volume and value respectively. The conglomerates sector followed with 111.022 million shares worth N189.462 million in 952 deals while the consumer goods sector ranked third with a turnover of 56.912 million shares worth N2.373 billion in 2,055 deals.

The three most active stocks were United Bank for Africa Plc, Transnational Corporation of Nigeria Plc and Access Bank Plc, which altogether accounted for 499.566 million shares worth N3.717 billion in 2,954 deals, contributing 42.65 per cent and 32.44 per cent to the total equity turnover volume and value respectively.

Also traded during the week were a total of 869,680 units of Exchange Traded Products (ETPs) valued at N19.150 million in 16 deals compared with a total of 63,927 units valued at N841,330.04 traded in 11 deals in the previous week.

In the debt segment, a total of 20 units of Federal Government Bonds valued at N16,487 were traded in a deal compared with seven deals struck for 2,212 units valued at N2.098 million in the previous week.

Meanwhile, the global equities market recorded a mixed performance last week with a largely negative sentiment in the advanced equities market counterbalanced by largely positive sentiment in the emerging markets. The United Kingdom’s FTSE Index declined by 1.1 per cent. The United States of America’s S & P 500 Index dropped by 0.5 per cent while its twin index NASDAQ Index dropped by 2.0 per cent. France’s CAC 40 Index declined by 2.0 per cent. Germany’s XETRA DAX Index dropped by 2.7 per cent. Japan’s NIKKEI Index slipped by 0.5 per cent. However, Hong Kong’s HANG SENG Index inched up by 0.4 per cent.

However, in the emerging markets, Brazil’s IBOVESPA Index returned 2.5 per cent. Russia’s RTS Index appreciated by 2.6 per cent. China’s Shanghai Composite Index rose by 1.1 per cent. Ghana’s GSE Composite Index rose by 1.2 per cent. Egypt’s EGX Index declined by 0.5 per cent while Kenya’s Nairobi Stock Exchange Composite Index and India’s BSE Index dropped by 0.7 per cent each.

“Whilst we reckon that the performance of the equities market will remain largely driven by the positive macroeconomic developments in the past three months, we do not eliminate the possibility of some profit taking in the early trading sessions of next week,” Afrinvest Securities stated.

 

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