Equities market records 2-week gain, advances 1.64% w/w

The All Share Index advanced for the second consecutive week, rising 1.64 per cent week-on-week to close at 25,653.16 points.

Market analysts believed that the week’s gain reflected investors’ reaction to reduced level of apprehension in the macroeconomic environment, further supported by the confluence of encouraging news.

According to Analysts at Cordros, these news ranged from a moderation in February inflation rate to 17.78 per cent, from 18.72 per cent; to steady accretion to the foreign reserves, which currently stands at a 15-month high of USD30 billion.

Specifically, the ASI closed positive through the week except for Monday, when trade closed negative at 0.40 per cent, while the biggest gain was recorded on Friday with 0.92 per cent appreciation.

According to Nigerian Stock Exchange (NSE) weekly stock market report, all other Indices finished higher during the week with the exception of the NSE Consumer Goods Index that depreciated by 0.02 per cent while the ASEM Index closed flat.

The report said at the close of the week’s trading on the domestic bourse, a total turnover of 1.029 billion shares worth N7.980 billion in 13,441 deals were traded by investors compared to a total of 1.024 billion shares valued at N12.464 billion that exchanged hands last week in 16,400 deals.

According to the NSE, the Financial Services Industry measured by volume led the activity chart with 853.414 million shares valued at N4.269 billion traded in 7,904 deals; thus contributing 82.91 per cent and 53.50 per cent to the total equity turnover volume and value respectively.

The oil and gas industry followed with 80.250 million shares worth N1.151 billion in 1,443 deals. The third place was occupied by Conglomerates Industry with a turnover of 45.770 million shares worth N83.469 million in 596 deals.

Further analyses indicated that the Banking and Insurance indices closed higher with 4.63 per cent and 2.53 per cent respectively, as investors bought into Guaranty Trust Bank Plc (+7.35 per cent) and Mansard Insurance Plc (+5.96 per cent).

Also, the Industrial Goods (+1.53 per cent) and Oil & Gas (+0.70 per cent) indices appreciated, following demand for Dangote Cement Plc at 3.11 per cent, Beta Glass Plc at 4.98 per cent, Seplat plc at 4.74 per cent and Total Nigeria Plc at 0.94 per cent, respectively.

The Consumer Goods (-0.02 per cent) index bucked the trend marginally by 0.02 per cent, following selloffs in 7UP Plc (-9.64 per cent) and Nestlé Nigeria Plc (-0.68 per cent).

Market breadth was positive, with 31 gainers against 23 recorded in the preceding week, while 20 losers were recorded led by NEM.

Total volume traded increased by 0.56 per cent to 1.03 billion shares (1.02 billion last week).  The NSE said trading in the Top Three Equities namely- Diamond Bank Plc, FBN Holdings Plc and Fidelity Bank Plc measured by volume accounted for 397.225 million shares worth N546.501 million in 1,680 deals, contributing 38.59 per cent and 6.85 per cent to the total equity turnover volume and value respectively.

The value of trades however declined by 35.98 per cent to 7.98 billion as against previous N12.46 billion, with Nestlé Nigeria Plc, Guaranty Trust Bank Plc, and Zenith Bank Plc, contributing 20.25 per cent, 19.31 per cent, 15.25 per cent respectively, thus  accounting for 54.81 per cent of total value.

Also traded on the floor of the Nigerian Bourse during the week were a total of 20 units of Exchange Traded Products (ETPs) valued at N90.90 executed in two deals compared with a total of 1,020 units valued at N51,316.00 transacted last week in four deals.

A total of 8,390 units of Federal Government Bonds valued at N8.203 million were traded this week in four deals, compared with a total of 6,686 units valued at N5.583 million transacted last week in seven deals.

Analyst, however, predicts continued lift in the market for coming week. “We expect the equities market to appreciate further in the coming week, following this week’s performance (specifically, broad sectoral gains and positive market breadth) which suggests strengthened appetite,” analyst at Cordros said.