NSE RoundUp! Investors’ return hits N3.65tn as equities reach 24-month high

Investors in Nigerian equities have so far this year accumulated more than N3.65 trillion in capital gains as quoted shares open this week at the Nigerian Stock Exchange (NSE) at their highest level in the past two years.

Amidst declines in many other major African equities market, average year-to-date return at the Nigerian equities market spiraled upward to 39.26 per cent after the benchmark index overran initial profit-taking to sustain a week-on-week gain of 1.52 per cent last week. Monetised, the average year-to-date return is equivalent to net capital gain of N3.65 trillion.

The benchmark index at the Nigerian Stock Exchange (NSE) opens this week at 37,425.15 points as against its opening index of 26,874.62 points for the year. Aggregate market value of all quoted equities will also open trading this Monday at a high of N12.899 trillion, an increase of N3.65 trillion on its opening value of N9.247 trillion for the year.

Nigerian equities rode over a profit-taking dip at the start of trading to sustain four consecutive positive trading sessions thereafter. Investors recorded net capital gain of N194 billion last week, equivalent to average gain of 1.52 per cent. Aggregate market value of all quoted equities rose from the week’s opening value of N12.705 trillion to close the week at N12.899 trillion. The ASI simultaneously appreciated from opening index of 36,864.71 points to close at a high of 37,425.15 points.

Read also: NSE LIVE! Breweries sustain equities’ rally with N64b gain

The performance of the Nigerian equities was largely against the negative trend that dominated trading in African equities and other emerging market stocks. Egypt’s EGX 30 Index had declined by 1.4 per cent while Kenya’s NSE Index dropped by 0.7 per cent. South Africa’s FTSE Index however rose by 1.8 per cent.

Many analysts stated that they expected the rally at the Nigerian stock market to continue. “Although valuation multiples have increased since the macro-themed rally started in April, that does not imply the market is overvalued and we remain convinced there are opportunities for investors to key into. Thus, even as the earnings season draws to a close, we expect the broader index to sustain the current momentum to deliver a positive return in the last five months of the year, albeit moderate in the single digit range,” Afrinvest Securities-a Lagos-based dealer at the NSE, stated on the possible direction of the equities market this week.

Further analysis of the pricing trend at the Nigerian equities market showed that most sectoral indices closed positive, underlining the bullish trend that ran through the market. The NSE 30 Index, which tracks the 30 most capitalised companies, rose by 1.24 per cent. The NSE Consumer Goods Index recorded the highest average gain of 4.87 per cent. The NSE Insurance Index appreciated by 2.81 per cent while the NSE Industrial Goods Index inched up by 0.07 per cent. However, the influential NSE Banking Index depreciated by 1.64 per cent while the NSE Oil and Gas Index dipped by 3.05 per cent.

There were 38 advancers to 28 decliners. C & I Leasing recorded the highest gain of 44.9 per cent to close at N1 per share. Dangote Sugar Refinery followed with a gain of 37.3 per cent to close at N14.91. Linkage Assurance rose by 27.1 per cent to 75 kobo. Nascon Allied Industries appreciated by 26.9 per cent to close at N12. Livestock Feeds rallied by 19.2 per cent to close at 93 kobo. Cadbury Nigeria rose by 12.9 per cent to N11.80 while Jaiz Bank gained 12.1 per cent to close at 74 kobo.

On the negative side, Morison Industries led the decliners with a drop of 16.9 per cent to close at N1.13. Red Star Express declined by 12.4 per cent to N4.38. Cutix lost 9.9 per cent to close at N2.19. University Press dropped by 9.3 per cent to N2.63. NPF Microfinance Bank dipped by 9.1 per cent to N1.20 while Mobil Oil Nigeria lost 8.3 per cent to close at N232 per share.

Total turnover stood at 2.52 billion shares worth N114.12 billion in 23,546 deals last week as against a total of 2.21 billion shares valued at N30.64 billion traded in 26,287 deals two weeks ago. Financial services stocks accounted for 1.51 billion shares valued at N16.35 billion in 12,511 deals; representing 59.9 per cent and 14.3 per cent of the total equity turnover volume and value respectively. The industrial goods sector rode on the back of negotiated deals on Dangote Cement to record a turnover of 441.91 million shares worth N89.36 billion in 1,282 deals. The conglomerates sector placed third with a turnover of 184.61 million shares worth N701.67 million in 929 deals.

The three most active stocks were Dangote Cement, Access Bank and Zenith International Bank, which altogether accounted for 833.97 million shares worth N95.97 billion in 3,203 deals, contributing 33.1 per cent and 84.1 per cent of the total equity turnover volume and value respectively.

Also traded during the week were a total of 1.166 million units of Exchange Traded Products (ETPs) valued at N16.169 million in 17 deals compared with a total of 1.732 million units valued at N13.711 million traded in 19 deals two weeks ago.

In the sovereign bond market, a total of 5,850 units of Federal Government bonds valued at N5.702 million were traded in seven deals as against a total of 750 units valued at N0.695 million traded in eight deals in the previous week.

 

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