Nigerian equities recorded net capital gain of N786 billion last week, building up the total net capital gain so far this year to N2.545 trillion. Benchmark indices at the Nigerian Stock Exchange (NSE) hit new records during the week, with the market closing on a bullish rally in four of the five trading sessions.
Aggregate market value of all quoted equities at the NSE rose from the week’s opening value of N15.368 trillion to close weekend at N16.154 trillion, representing net capital appreciation of N786 billion. The All Share Index (ASI)-the common value-based index that tracks share prices at the Exchange, also recorded a week-on-week gain of 5.11 per cent to close at 45,092.83 points as against its week’s opening index of 42,898.90 points.
With these, average year-to-date return rallied to 17.91 per cent at the weekend, equivalent to net capital gain of N2.545 trillion so far in 2018. This represents more than half of total net capital gain of N4.36 trillion recorded for the whole of 2017.
While the strong rally was moderated by a profit-taking on Thursday, sectoral indices showed a market-wide rally in four trading sessions. All sectoral indices at the Exchange closed positive with the exception of the NSE Consumer Goods Index that depreciated by 1.31 per cent. The NSE Banking Index led the rally with a week-on-week return of 8.50 per cent. The NSE 30 Index, which tracks the 30 most capitalised stocks, recorded average gain of 4.84 per cent. The NSE Insurance Index rose by 3.84 per cent. The NSE Oil and Gas Index rallied by 1.95 per cent while the NSE Industrial Goods Index rose by 1.06 per cent.
There were 40 advancers against 32 decliners last week compared with 66 advancers and seven decliners recorded in the previous week. Low-priced stocks continued to dominate the advancers’ list, in terms of percentage price gain. Skye Bank doubled its share price by 53.57 per cent to N1.29. Unity Bank followed with a gain of 48.78 per cent to close at N1.22. Wema Bank rose by 48.1 per cent to close at N1.17. Diamond Bank rallied by 40.55 per cent to close at N3.57. Caverton Offshore Support Group rose by 38.75 per cent to close at N2.22. FCMB Group chalked up 37.4 per cent to close at N3.49. Jaiz Bank rallied by 36.05 per cent to close at N1.17. Cement Company of Northern Nigeria rose by 31.98 per cent to close at N17.50 while Fidelity Bank added 21.88 per cent to close at N3.90 per share.
On the downside, Nascon Allied Industries led the decliners with a drop of 13.64 per cent to close at N19. AG Leventis Nigeria followed with a drop of 12 per cent to close at 66 kobo. Vitafoam Nigeria declined by 11.5 per cent to close at N3. Linkage Assurance dipped by 11.11 per cent to close at 80 kobo. Honeywell Flour Mills dropped by 10.23 per cent to close at N3.16 while Cadbury Nigeria lost 10.09 per cent to close at N15.06 per share.
Total turnover stood at 5.01 billion shares worth N45.82 billion in 44,569 deals last week compared with a total of 5.02 billion shares valued at N68.974 billion traded in 41,542 deals two weeks ago.The financial services sector led the activity chart with 3.672 billion shares valued at N29.946 billion traded in 28,608 deals; thus contributing 73.29 per cent and 65.36 per cent to the total equity turnover volume and value respectively. The conglomerates sector followed with 864.180 million shares worth N2.440 billion in 2,561 deals while the third place was occupied by consumer goods sector with a turnover of 210.994 million shares worth N7.731billion in 7,336 deals.
The three most active stocks were Transnational Corporation of Nigeria Plc, Diamond Bank Plc and FCMB Group Plc, which altogether accounted for 1.751 billion shares worth N5.023 billion in 6,131 deals, contributing 34.93 per cent and 10.96 per cent to the total equity turnover volume and value respectively.
Also traded during the week were a total of 1.947 million units of Exchange Traded Products (ETPs) valued at N105.567 million executed in 15 deals, compared with a total of 777,535 units valued at N7.689 million that was traded in 15 deals two weeks ago.
In the sovereign bond market, a total of 4,437 units of Federal Government Bonds valued at N4.260 million were traded last week in nine deals, compared with a total of 6,301 units valued at N6.298 million traded in 12 deals in the previous week.
A global review showed that the Nigerian equities market outperformed most advanced and emerging stocks. In the United Kingdom, the UK FTSE declined by 0.8 per cent. In the United States of America (USA), the S & P 500 rose by 0.4 per cent while the NASDAQ posted a week-on-week return of 0.5 per cent. In the emerging market bloc of Brazil, Russia, India, China and South Africa (BRICS), the India’s BSE Sensex rose by 2.5 per cent. Brazil’s Ibovespa appreciated by 2.4 per cent. China’s Shanghai Composite Index rallied by 1.7 per cent. Russia’s RTS Index gained 1.0 per cent while South Africa’s FTSE/JSE ASI appreciated by 1.1per cent.
In Europe and Asia, the stock markets also were largely bullish. Hong Kong’s Hang Seng Index rose by 2.7 per cent. Germany’s XETRA DAX Index appreciated by 1.0 per cent. Japan’s NIKKEI 225 Index inched up by 0.7 per cent. In Africa, most tracked stock markets closed positive. Ghana’s GSE Composite Index rose by 4.2per cent. Egypt’s EGX 30 Index appreciated by 1.1 per cent. However, both France and Kenya recorded marginal decline.
“Although the market has sustained a three-week long bullish momentum on the back of increased investor participation following the uptrend in global oil prices and in expectation of improved earnings at the commencement of fourth quarter earnings season, we expect some slight profit taking in the coming week,” Afrinvest Securities stated in a weekend preview of the Nigerian market.
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