Equities market rebounds as investors gain N78bn in a week

THE All Share Index (ASI) of the Nigerian Stock Exchange (NSE) closed last week equities trade gaining 0.9 per cent, almost reversing the 0.94 per cent decline recorded in the penultimate week.

Specifically, ASI and Market Capitalisation appreciated by 0.90 per cent to close the week at 25,238.01bps and N8.734 trillion respectively when compared to 25,012.08 bps and N8.656 trillion recorded in the preceding week, thus investors portfolio increased with N78 billion.

As predicted by market analyst, Dangote Cement Plc, after being subjected to irrational sell-off in the preceding week, was at the thick of activities, gaining 0.28 per cent. Consumer goods companies also staged a strong return and had the most impact on the index.

Last week’s gain was noted a remarkable one, considering that All Share Index (ASI) fell to a 12-month low in Monday’s session, before recovering and finishing higher. The biggest gain of 2.23 per cent on Tuesday coincided with the release of Nigeria’s Economic Recovery and Growth Plan (NERGP) by the Ministry of Budget and National Planning.

Overall, two sector indices appreciated while the rest declined. The Consumer Goods increased by 5.23 per cent w/w and Insurance indices recorded gains of by 0.03 per cent, following demand for Nestle Nigeria Plc, Unilever Nigeria Plc, NEM Plc and Continental Insurance Plc.

Meanwhile the Banking, Industrial Goods and Oil & Gas indices closed lower by 2.08, 2.94, 2.36 per cent respectively, following selloffs in Guaranty Trust Bank Plc at 1.21 per cent loss, Access Bank Plc at 0.59 per cent decline, WAPCO at 6.97 per cent, Ashaka Cement Plc, 7.91 per cent, Forte Oil Plc, 0.39 per cent and Seplat Plc, at five per cent descent.

Market breadth was however, negative with 23 gainers, led by Nestle Nigeria Plc with 16.96 per cent, while 28 losers were recorded as against 23 of the preceding week, topped by African Prudential Insurance Plc at 15.56 per cent decline.

Total volume traded also declined by 26.23 per cent to 1.02 billion shares compared with 1.39 billion of the preceding week, with Zenith Bank Plc, United Bank of Africa an Fidelity Bank contributing 33.08, 8.59,6.66 percentages, respectively, thus accounting for 48.33 per cent of the market volume.

The value of trades also declined by 9.19 per cent to 12.46 billion (previously N13.73billion), with Zenith Bank Plc, at 45.53 per cent, Guaranty Trust Bank at13.51 per cent and Guinness Nigeria Plc at 7.21 per cent, thus accounting for 66.25 per cent of total value.