NSE RoundUp! Nigerian equities rally N329bn gain amidst global surge

Nigerian equities posted a mouth-watering average gain of 3.38 per cent, equivalent to net capital gain of N329 billion last week, ranking as one of the two best-performing markets within tracked advanced and emerging markets.

The most active segment of the Nigerian market, the NSE Banking Index significantly outperformed the average overall index with a week-on-week gain of 7.64 per cent.

From America, to Europe, Asia and Africa, investors across the world showed improved appetite for quoted shares last week, pushing most benchmark indices to close positive. Africa’s frontier markets were ahead of the rally with Kenya and Nigeria atop the global chart for tracked indices.

Nigeria’s sovereign equities index, the All Share Index (ASI) of the Nigerian Stock Exchange (NSE) recorded a week-on-week gain of 3.38 per cent to close at 29,064.52 points at the weekend as against its week’s opening index of 28,113.38 points. Aggregate market value of all quoted equities on the NSE jumped from week’s opening value of N9.719 trillion to close the week at N10.048 trillion, indicating accumulated gain of N329 billion.

African frontier markets were mostly bullish in a global rally that defied uncertainties in advanced markets of Europe and America. Kenya’s Nairobi Stock Exchange 20 Index posted a week-on-week gain of 4.8 per cent. Egypt’s EGX Composite Index rose by 1.1 per cent while Ghana Stock Exchange (GSE) Composite Index inched up by 0.5 per cent. However, South Africa’s FTSE Index dipped by 0.5 per cent.

Other emerging markets showed positive sentiments. Russia’s RTS Index appreciated by 2.1 per cent. Brazil’s IBOVESPA Index rose by 1.9 per cent. China’s Shanghai Composite Index appreciated by 0.6 per cent. Hong Kong’s Hang Seng Index rose by 1.8 per cent while Japan’s NIKKEI Index rallied by 1.1 per cent.

Read also: NSE LIVE! Consumer goods, banks rally equities to N62bn gain

In United States of America, the twin indices trended upward. The US S & P 500 rose by 1.3 per cent while the NASDAQ appreciated by 1.9 per cent. In Europe, United Kingdom’s FTSE Index rallied by 0.7 per cent. France’s CAC 40 rose by 0.5 per cent while Germany’s DAX Index closed flat.

Further analysis showed a broad rally at the Nigerian stock market with nearly two advancers for every decliner. Most sectoral indices showed considerable gains. The NSE 30 Index, which tracks 30 most capitalised stocks, posted a week-on-week gain of 3.70 per cent. The populous NSE Insurance Index appreciated by 3.75 per cent. The NSE Consumer Goods Index rose by 1.71 per cent while the NSE Industrial Goods Index inched up by 0.13 per cent. However, the NSE Oil and Gas Index dropped by 0.89 per cent.

The sustained rally pushed the overall average year-to-date return to 8.15 per cent, highlighting the impressive performance of the Nigerian stock market in the second quarter.

There were 44 advancers against 25 decliners last week compared with 30 advancers and 31 decliners in the previous week. A total of 104 stocks closed flat last week as against 112 stocks two weeks ago. UACN Property Development Company led the advancers with a gain of 25.9 per cent to close at N2.14. FBN Holdings followed with a gain of 22 per cent to close at N4.89. AXA Mansard Insurance rose by 20.3 per cent to N1.90.

Fidson Healthcare appreciated by 18.4 per cent to close at N2.12. Cement Company of Northern Nigeria rose by 13.0 per cent to N5.20. Guaranty Trust Bank appreciated by 12 per cent to close at N35.28 per share.Newrest ASL rose by 10.07 per cent to N4.48. Vitafoam Nigeria rose by 9.13 per cent to N2.51. GlaxoSmithKline Consumer Nigeria rallied by 8.9 per cent to close at N16.80 while Linkage Assurance rose by 8.6 per cent to close at 63 kobo.

On the downside, Cadbury Nigeria led the decliners with a drop of 11.6 per cent to close at N9.42. Mobil Oil Nigeria dropped by 9.8 per cent to close at N284.65. Learn Africa declined by 9.4 per cent to close at 77 kobo. NPF Microfinance Bank dropped by 8.03 per cent to close at N1.26. John Holt slipped by 6.4 per cent to close at 59 kobo per share. Nigerian Aviation Handling Company declined by 5.86 per cent to close at N2.89. Unity Bank dropped by 5.08 per cent to close at 56 kobo. African Paints (Nigeria) lost 4.86 per cent to close at N2.35. Meyer declined by 4.11 per cent to close at 70 kobo while Forte Oil dropped by 3.95 per cent to close at N46 per share.

On the activities side, total turnover last week stood at 1.88 billion shares worth N20.06 billion in 19,979 deals compared with a total of 2.27 billion shares valued at N32.65 billion traded in 20,710 dealstwo weeks ago. The financial services sector continued to dominate activity chart, accounting for 1.63 billion shares valued at N14.50 billion in 11,893 deals; representing 86.8 per cent and 72.3 per cent of the total equity turnover volume and value respectively. The consumer goods sector followed with 57.531 million shares worth N2.189 billion in 2,616 deals. The conglomerates sector placed third with a turnover of 52.22 million shares worth N101.38 million in 789 deals.

Banking stocks were also the most active with the trio of Diamond Bank Plc, Access Bank Plc and Zenith International Bank Plc accounting for 799.47 million shares worth N6.103 billion in 3,313 deals, representing 42.6 per cent and 30.4 per cent of the total equity turnover volume and value respectively.

Also traded during the week were a total of 65 units of Exchange Traded Products (ETPs) valued at N1,968 in seven deals compared with a total of 1,470 units valued at N10,128 traded in two deals in the previous week.

In the sovereign bond market, a total of 50 units of Federal Government bonds valued at N43,720 were traded in a deal last week as against a total of 6,308 units valued at N5.48 million traded in three deals in the previous week.

“Owing to the recent positive developments witnessed in the economy, we expect the bullish sentiment to be sustained in the week ahead. We however do not rule out the possibility of investors taking profit in the early trading days of next week…,” analysts at Afrinvest Securities stated in a preview of the stock market.

 

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