For Nigerian investors, the Yuletide is setting on well. Nigerian equities rallied more than half a trillion Naira in 21 trading days in November as strong demand continued to rouse equities to greater performance.
Month-on-month analysis of the equities market showed widespread price increases, with the overall indices indicating a net capital gain of N520 billion for the month. With average month-on-month return of 3.45 per cent for the month ended November 30, 2017, average year-to-date return at the equities market hit 41.19 per cent at the weekend.
Aggregate market value of all quoted equities at the Nigerian Stock Exchange (NSE) closed November at N13.215 trillion as against its month’s opening value of N12.695 trillion, representing net capital gain of N520 billion. The All Share Index (ASI)-the benchmark index that doubles as sovereign equities index for Nigeria, rallied from its month’s opening index of 36,680.29 points to close at 37,944.60 points. When adjusted in line with the ASI, net capital gain for the month stood at N438 billion. The difference between the ASI and market value trends is usually due to unabsorbed influence of supplementary listing.
Most investors appeared to have outperformed average market performance with investors in the industrial goods sector more than doubling the average return. The NSE Industrial Goods Index recorded the highest month-on-month gain of 7.0 per cent. The NSE Banking Index trailed with above average return of 6.95 per cent. The NSE 30 Index, which tracks the 30 most capitalised companies, also posted above average return of 5.72 per cent. The NSE Oil and Gas Index appreciated by 3.54 per cent while the NSE Insurance Index indicated a marginal return of 0.30 per cent. However, the NSE Consumer Goods Index declined marginally by 0.37 per cent.
The November rally gathered considerable momentum last week, with equities chalking up N206 billion in net capital gains in the four-day trading week. The ASI had opened last week at 37,365.91 points while aggregate market value of all quoted equities had opened at N13.009 trillion.
There were 39 advancers against 23 decliners during the week compared with 36 advancers and 24 decliners recorded in the previous week. A total of 109 stocks closed flat compared with 111 stocks that were unchanged in the previous week.
Fidelity Bank recorded the highest gain of 21.2 per cent to close at N2.06. Forte Oil rose by 14.98 per cent to close at N45.99. Law Union and Rock Insurance rallied 14.75 per cent to close at 70 kobo. Caverton Offshore Support Group rose by 14.4 per cent to close at N1.43. Dangote Flour Mills added 11.59 per cent to close at N10.30 while Nigerian Aviation Handling Company rallied by 10.26 per cent to close at N4.30 per share.
On the downside, 11 Plc, formerly known as Mobil Oil Nigeria, led the decliners with a drop of 6.09 per cent to close at N159.65. University Press followed with a loss of 5.53 per cent to close at N2.39. Neimeth International Pharmaceuticals declined by 4.92 per cent to 58 kobo while Livestock Feeds dropped by 4.55 per cent to close at 84 kobo per share.
Total turnover for the four days of trading stood at 14.257 billion shares worth N35.056 billion in 17,379 deals compared with a total of 2.182 billion shares valued at N22.795 billion traded in 17,019 deals in the previous week. The Federal Government had declared Friday December 1 as a public holiday in commemoration of the Birth of Prophet Muhammad, Mawlid Nabiyy.
The conglomerates sector rode on the back of voluminous swap in Transnational Corporation of Nigeria (Transcorp) to top the activity chart with 11.396 billion shares valued at N14.534 billion in 890deals; thus contributing 79.94 per cent and 41.46 per cent to the totalequity turnover volume and value respectively. The financial services sector followed with 2.484 billion shares worth N9.797 billion in 9,205 deals while consumer goods sector placed third with a turnover of 164.156 million shares worth N8.127 million in 4,405 deals.
Low-priced stocks, otherwise known as penny stocks, dominated the activities chart. The three most active stocks were Transcorp, WapicInsurance Plc and Fidelity Bank Plc, which altogether accounted for 12.998 billion shares worth N15.494 billion in 1,813 deals, contributing 91.17 per cent and 44.20 per cent to the total equity turnover volume and value respectively.
Also traded during the week were a total of 1,090 units of Exchange Traded Products (ETPs) valued at N14,708 in 10 deals compared with a total of 127 units valued at N13,837 traded in five deals in the previous week.
In the sovereign debt segment, a total of 21,670 units of Federal Government Bonds valued at N23.125 million were traded in 17 deals compared with a total of 9,024 units valued at N9.485 million traded in 15 deals two weeks ago.
Most analysts remained optimistic about the outlook for the market in the last month of the year. “Although we anticipate a slight pullback in early trades next week, due to profit-taking, we reiterate our positive near term outlook for the market as fund managers continue to rebalance portfolios ahead of fiscal year-end,” Afrinvest Securities-a Lagos-based dealer at the Exchange, stated.
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