Investors across the world showed improved appetite for quoted shares in the immediate past week with Nigerian equities ending the week with net capital gain of 0.68 per cent.
Benchmark indices at the Nigerian Stock Exchange (NSE) showed a week-on-week average gain of 0.68 per cent, equivalent to net capital gain of N104 billion. The rally pushed the average year-to-date return for Nigerian equities to 12.88 per cent.
The All Share Index (ASI)-the common value-based index that tracks share prices at the NSE, closed weekend at 43,167.86 points as against its week’s opening index of 42,876.23 points. Aggregate market value of all quoted equities improved from the week’s opening value of N15.403 trillion to close at N15.507 trillion.
With more advancers than decliners, most sectoral indices closed on the upside, underlining the widespread bargain-hunting that dominated transactions during the week. The NSE 30 Index-which tracks the 30 most capitalised quoted companies, recorded a week-on-week gain of 0.82 per cent. The NSE Oil and Gas Index posted the highest gain of 5.58 per cent while the NSE Industrial Goods Index and NSE Consumer Goods Index rose by 1.70 per cent each. However, the NSE Banking Index dropped by 1.08 per cent while the NSE Insurance Index declined by 0.74 per cent.
The performance of the Nigerian equities market mirrored the positive market situation across the world. From New York to London, Paris, Frankfurt, Beijing, Johannesburg, Lagos, Nairobi and Accra, equities traded mostly on the upbeat as investors positively review earnings potential.
In United States of America, the S & P 500 posted a gain of 1.8 per cent. The Dow Jones Industrial Average appreciated by 1.46 per cent while the Nasdaq rose by 2.3 per cent. In United Kingdom, the UK FTSE Index appreciated by 2.3 per cent. In Europe, France’s CAC 40 Index rose by 2.9 per cent. Germany’s XETRA DAX Index appreciated by 3.9 per cent. Russia’s RTS Index rose by 0.9 per cent. In Asia, Japan’s Nikkei Index rose by 1.4 per cent. China’s Shanghai Composite Index appreciated by 1.6 per cent while Hong Kong’s Hang Seng Index rallied by 1.3 per cent.
In Africa, South Africa’s FTSE/JSE All Share Index rose by 1.9 per cent while Egypt’s EGX 30 Index rose by 6.7 per cent. However, Ghana’s GSE Composite fell by 2.4 per cent while Kenya’s NSE 20 Index declined by 1.0 per cent.
Total turnover at the NSE rose by 42 per cent to 3.08 billion shares worth N39.99 billion in 23,086 deals last week as against a total of 2.17 billion shares valued at N39.09 billion traded in 24,657 deals in the previous week. The financial services sector was the most active with a turnover of 2.29 billion shares valued at N29.59 billion in 13,188 deals; representing 74.30 per cent and 73.98 per cent of the total equity turnover volume and value respectively. The oil and gas sector followed with 386.81 million shares worth N1.27 billion in 1,573 deals while consumer goods sector ranked third with a turnover of 205.25 million shares worth N5.80 million in 4,959 deals.
The three most active stocks were Access Bank Plc, Capital Oil Plc and Zenith International Bank Plc, which altogether accounted for 1.68 billion shares worth N20.41 billion in 2,476 deals, representing 54.48 per cent and 51.05 per cent of the total equity turnover volume and value respectively.
Further pricing trend analysis showed there were 45 advancers and 40 decliners last week as against 38 advancers and 45 decliners recorded in the previous week. Japaul Oil & Maritime Services-which recently announced a $350 million investment by an American private equity firm, recorded the highest gain, in percentage terms, of 54 per cent to close at 97 kobo. Consolidated Hallmark Insurance followed with a gain of 34.5 per cent to close at 39 kobo. Lasaco Assurance rose by 25.7 per cent to 44 kobo. Unilever Nigeria appreciated by 20.7 per cent to close at N62.20 per share while Caverton Offshore Support Group rose by 19.9 per cent to close at N2.65 per share.
On the negative side, Regency Alliance Insurance Company led the decliners with a loss of 27.1 per cent to close at 35 kobo. African Alliance Insurance Company followed with a drop of 13.9 per cent to close at 31 kobo. FTN Cocoa Processors dropped by 13.5 per cent to close at 32 kobo. Sovereign Trust Insurance declined by 13.2 per cent to close at 33 kobo while C & I Leasing dipped by 9.7 per cent to close at N1.76 per share.
“Earnings of companies that have published results have been largely positive and we expect market performance to remain upbeat as investors take position in fundamentally sound stocks in anticipation of more corporate scorecard releases,” Afrinvest Securities stated.
Analysts at Cordros Capital attributed the positive market situation to positive macroeconomic fundamentals and expected improvement in the full-year 2017 results of companies.
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