Stock Market Regains N600 Billion on Renewed Optimism (allAfrica.com)

The Nigerian equities market defied all negative expectations last week to close northward, bolstered by positive sentiments in tier-1 banks such as Guaranty Trust Bank Plc, FBN Holdings Plc and United Bank for Africa Plc Plc.
The equities market had, the previous week, suffered massive losses triggered by huge sell-offs following negative reaction to the postponement of the general elections. The market had dipped by N801 billion the previous week.
The dip had come despite words of assurances from the Central Bank of Nigeria (CBN) Governor, Mr. Godwin Emefiele, that there was no need for panic over the recent depreciation of the naira against the dollar, even as he reassured investors that the central bank will continue to meet legitimate foreign exchange demand.
Emefiele, who gave the assurance at the Nigerian Stock Exchange (NSE), had insisted that the nation’s currency was “appropriately priced.”
Although negative sentiments were expected to still dominate the market last week, bargain hunting by some investors led to the market gaining for five consecutive days. As a result, the market regained N600 billion out of the N801 billion shed the previous week.
Consequently, the NSE All-Share Index (ASI) and the market appreciated by 6.52 per cent to close last Friday at 29,383.93 and N 9.804 trillion respectively.
Similarly, all indices finished higher during the week with exception of the NSE Insurance Index that declined by 0.58 per cent, while NSE ASeM Index closed flat.
Summary of daily performance
Trading had commenced on a positive note last Monday despite lingering investors’ concerns about the near to medium term outlook of the Nigerian economy. The index gained 0.52 per cent to close at 27,729 points aided majorly by price gains in Dangote Cement Plc. Other notable gainers on the bourse included Zenith Bank Plc, Guaranty Trust Bank Plc and Forte Oil Plc. Market capitalisation also increased by N47.84 billion to close at N9.25 trillion. On the contrary, activity level in terms of volume and value declined by 37.6 per cent and 60.1 per cent respectively as 317 million shares worth N2.83 billion were exchanged on the floor. Performance across sectors was positive save for the consumer goods sector. The oil & gas sector was boosted by improved interest in Forte Oil while the industrial and banking trackers gained 0.43 per cent and 0.45 per cent respectively.
The market again closed on a positive note the next day as the NSE ASI appreciated by 2.61 per cent to close at 28,452.60, compared with the appreciation of 0.52 per cent recorded the previous day. The appreciation in the Index was as a result of the gains recorded in the share prices of some highly capitalised stocks such as: Guaranty Trust Bank Plc, Zenith BankPlc, FBN Holdings Plc, Dangote Cement Plc and Oando Plc, amongst others. In the same vein, the market capitalisation appreciated by 2.61 per cent to close at N9.49 trillion, compared with the appreciation of 0.52 per cent recorded the previous day to close at N9.25 trillion. The total value of the stocks traded on the day on the floors of the NSE was N3.50 billion, up by 23.79 per cent from N2.83 billion traded on Monday.
The equities market continued to trend upwards on Wednesday amidst current macroeconomic challenges. The ASI gained 2.55 per cent to close at 29,177 points. This was primarily driven by improved interest in Dangote Cement Plc and Guaranty Trust Bank Plc. Market capitalisation in the same manner was up by N241.90 billion to settle at N9.74 trillion. The banking tracker led the sector wide appreciation with a 4.82 per cent return, largely driven by Guaranty Trust Bank Plc and Zenith Bank Plc. The Industrial sector rose by 2.96 per cent while the Consumer Goods and Oil trackers were up by 0.72 per cent and 0.18 per cent respectively.
Market pulse closed bullish on Thursday despite brent crude falling by $2 to $58.53 a barrel, amid worries about global oversupply following big rise in US oil inventories and rising output from Saudi Arabia. The equity market closed green due to positive performances from the oil & gas, insurance and consumer goods sectors, leaving the banking sector alone closing red. Trading activities increased in volume as 564.28 million shares worth N6.09 billion in 4,385 deals exchanged hands on the day. This is an increase from the 424.33 million shares worth N3.49 billion in 4,731 trades carried out on Wednesday. Topping in volume terms was Computer Warehouse Group Plc, Guaranty Trust Bank Plc and Access Bank Plc, while Guaranty Trust Bank Plc and Nigerian Breweries Plc ended trading as the most active stocks in value terms.
The market remained positive at the close of business last Friday as the NSE ASI appreciated by 0.35 per cent to close at 29,383.93 points, compared with the appreciation of 0.36 per cent recorded the previous day.
The appreciation in the Index was as a result of the gains recorded in the share prices of Lafarge Africa Plc, Nigerian Breweries Plc, Guaranty Trust Bank Plc, Zenith Bank Plc and Seplat Plc,. Similarly, the market capitalisation appreciated by 0.35 per cent to close at N9.80trillion, compared with the appreciation of 0.36 per cent recorded yesterday to close at N9.77 trillion.
Market turnover
Meanwhile, investors traded 2.083 billion shares worth N22.467 billion in 20,805 deals last week by investors on the floor of the exchange, compared to a total of 1.950 billion shares valued at N27.836 billion that exchanged hands the previous week in 19,337 deals.
The Financial Services Industry led the activity in volume terms with 1.645 billion shares valued at N10.726 billion traded in 12,348 deals; thus contributing 78.98 per cent and 47.74 per cent to the total equity turnover volume and value respectively.
The ICT Industry followed with a turnover of 148.155 million shares worth N609.070 million in 66 deals. The third place was occupied by the Conglomerates Industry with 122.735 million shares worth N1.013 billion in 1,305 deals.
Access Bank Plc, United Bank for Africa Plc and Guaranty Trust Bank Plc accounted for 749.043 million shares worth N6.637 billion in 4,558 deals, contributing 35.96 per cent and 29.54 per cent to the total equity turnover volume and value respectively.
Also traded during the week were a total of 97,786 units of Exchange Traded Products (ETPs) valued at N2.074 million executed in 35 deals compared with a total of 112,499 units valued at N1.698 million transacted the previous week in 36 deals.
Gainers and losers
In terms of price movement, a total 40 equities appreciated in price during the week, higher than 11 equities of the preceding week. Twenty-six equities depreciated in price, lower than 53 equities of the preceding week, while 130 equities remained unchanged lower than 132 equities recorded in the preceding week.
The top 10 gainers were: Seplat Plc (N60.53); Okomu Oil Plc (N6.29); Guaranty Trust Bank Plc (N4.78); Presco Plc (N4.38); Zenith Bank Plc (N1.75); FBN Holdings Plc (N1.08); NASCON (85 kobo); May and Baker Plc (20 kobo); UBA Plc (41 kobo) and NEM Insurance Plc (seven kobo).
Conversely, top 10 losers included: Julius Berger Nigeria Plc (N6.32); Cadbury Nigeria Plc (N4.18); CAP Plc (N2.65), UNC-Prop Plc (N2.09), Beta Glass Plc (N1.50), International Breweries Plc (N1.41), Champion Breweries Plc (94 kobo), Honeywell Flour Mill Plc (25 kobo); and AG Leventis Plc (six kobo) and RT Briscoe Plc ( five kobo)