NSE RoundUp! Stocks hit high as Nigerian equities lead global markets with N797bn gain

Several leading stocks at the Nigerian stock market hit their highest prices in a year at the weekend as Nigerian quote posted a whooping gain of N797 billion within the four trading sessions during the week. With week-on-week average gain of 7.94 per cent, Nigerian equities stood above the global equities chart for the week, sustaining a running uptrend that had seen a gain of some N1 trillion in the previous month.

With more than five gainers for every loser, Nigerian equities traded successively on the upbeat last week, overriding the pockets of profit-taking as the benchmark index crossed two thresholds within the four-day trading week.

Aggregate market value of all quoted equities on the Nigerian Stock Exchange (NSE) rose from the week’s opening value of N10.048 trillion to close weekend at N10.845 trillion, representing net capital gain of N797 billion. The main index for the Nigerian stock market, the All Share Index (ASI) surged to 31,371.63 points at the weekend, 7.94 per cent above its week’s opening index of 29,064.52 points.

The sustained rally pushed the average year-to-date return at the equities market to 16.73 per cent, with most sectoral indices showing substantial returns for investors across the sectors. With the exception of the NSE Oil and Gas Index, which dropped by 4.54 per cent last week to post average year-to-date return of -5.67 per cent, all other sectoral indices showed investors smiling home with fatter pockets.

The NSE Banking Index, which tracks the 30 most capitalised stocks at the NSE, posted a week-on-week gain of 6.64 per cent last week, pushing its average year-to-date return to 19.34 per cent. The NSE Banking Index recorded below-average return of 4.0 per cent last week but remained far ahead with average year-to-date return of 37.23 per cent. The NSE Insurance Index gained 6.08 per cent within the four days to push it year-to-date return to 11.45 per cent. The NSE Consumer Goods Index rallied by 7.68 per cent last week to close the year-to-date return at 8.90 per cent while the NSE Industrial Index rode on the back of Dangote Cement to post a week-on-week return of 9.17 per cent, pushing average year-to-date return to 16.19 per cent.

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Several stocks hit their highest prices in a 52-week period at the weekend. Nestle Nigeria, NSE’s highest-priced stock rallied to a year’s high of N918.76 per share at the weekend. It had traded at a low of N570 during the period. FBN Holdings peaked at N6.42 from a low of N2.95. From a low of N3.89 within the 52-week period, United Bank for Africa hit a high of N8.40. Access Bank also rose to a high of N8.93 as against its low of N5.04. Union Bank of Nigeria closed weekend at a high of N5.57 as against a low of N3.70. In the agricultural sector, Presco and Okomu Oil Palm closed at highs of N54 and N55 respectively compared with lows of N35.70 and N30 within the period. Dangote Sugar Refinery leapt to a high of N7.45 compared with a low of N5.71. May & Baker Nigeria rose to a 52-week high of N1.79 at the weekend, more than a double on its lowest price of 80 kobo per share during the period while Pharma Deko, which had traded at a low of N1.62, rose to a high of N2.08.

Several other stocks also continued to trade at their highest prices in spite of profit-taking transactions on stocks that had led the rallies in previous trading sessions.

The sustained rally in consecutive trading sessions emplaced Nigerian equities as the most attractive stocks, in terms of returns. From the African markets to Europe, America and Asia and across the divides of advanced, emerging and frontier markets, Nigerian equities topped the global returns last week. In Africa, Egypt trailed Nigeria in distant second with the EGX Index 30 posting a return of 2.8 per cent for the week. Other tracked African markets closed negative. Ghana Stock Exchange Composite Index indicated a drop of 0.1 per cent while Kenya’s Nairobi Stock Exchange was flat.

In the emerging markets bloc of Brazil, Russia, India, China and South Africa, otherwise known as BRICS; most indices were negative. Brazil’s IBOVESPA Index dropped by 2.8 per cent. Russia’s RTS Index declined by 1.0 per cent. China’s Shanghai Composite Index dropped by 0.1 per cent while South Africa’s FTSE dipped by 1.7 per cent. Meanwhile, India’s Bombay Stock Exchange SENS Index rose by 0.8 per cent.

In the advanced markets, the United Kingdom’s FTSE Index rose by 0.3 per cent. In United States of America, the twin indices of S & P500 and NASDAQ rose by 0.6 per cent each. In Germany, the DAX Index appreciated by 1.2 per cent. France’s CAC 40 Index rose by 0.3 per cent. Japan’s NIKKEI Index appreciated by 2.5 per cent while Hong Kong’s Hang Seng Index returned 1.0 per cent last week.

At the Nigerian stock market, there were 61 gainers to 12 losers last week compared with 44 gainers and 25 losers recorded in the previous week. FBN Holdings almost rose a third with a gain of 31.3 per cent to close at N6.42. It was followed by UACN Property Development Company with a gain of 25.2 per cent to close at N2.68. AXA Mansard Insurance rallied by 24.7 per cent to N2.37. May & Baker Nigeria rose by 22.6 per cent to N1.79. Champion Breweries added 19.9 per cent to close at N2.59. Diamond Bank rose by 19.35 per cent to close at N1.11. Honeywell Flour Mill rose by 18.1 per cent to N1.50 per share. Fidelity Bank rose by 17.8 per cent to N1.19. Access Bank rallied 17.65 per cent to N8.93 while Dangote Cement rose by 15.7 per cent to N192.93 per share.

On the other hand, Seven-Up Bottling Company led the losers with a loss of 14.2 per cent to close at N90.04. Linkage Assurance dropped by 12.7 per cent to close at 55 kobo. Oando declined by 10.3 per cent to N8.07. Seplat Petroleum Development Company slipped by 10.26 per cent to close at N350 Nigerian Enamelware dropped by 4.98 per cent to N27.87 per share.

Total turnover during the four-day trading week stood at2.319 billion shares worth N23.813 billion in 22,310 deals, compared with a total of 1.877 billion shares valued at N20.055 billion traded in 19,979 deals in previous week.

The financial services industry, measured by volume, led the activity chart with 1.950 billion shares valued at N15.479 billion traded in 14,381 deals; thus contributing 84.12 per cent and 65 per cent to the total equity turnover volume and value respectively. The consumer goods industry followed with 156.358 million shares worth N2.875 billion in 2,804 deals. The third place was occupied by conglomerates industry with a turnover of 70.452 million shares worth N168.377 million in 739 deals.

The trio of Diamond Bank Plc, FBN Holding Plc and United Bank for Africa Plc accounted for 978.710 million shares worth N4.137 billion in 5,028 deals, contributing 42.21 per cent and 17.37 per centto the total equity turnover volume and value respectively.

Also traded during the week were a total of 52 units of Exchange Traded Products (ETPs) valued at N13,802 in six deals compared with a total of 65 units valued at N1,967.85 transacted two weeks ago in seven deals.

A total of 3,786 units of Federal Government Bonds valued at N3.806 million were traded in four deals as against a total of 50 units valued at N43,719 traded in a deal in the previous week.

Market pundits attributed the rally at the Nigerian market to improved macroeconomic environment and the continuing improvement in the foreign exchange management.

Many analysts were however cautious that the market might witness profit-taking trend in the new week as investors seek to lock in profits.

 

 

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