NSE records robust 1st week trade, as Oando shares jerks up

The first trading week on the floor of the Nigerian Stock Exchange (NSE) came to a positive end as the All-Share Index (ASI) and market capitalisation appreciated by 1.78 percent to close the week at 38,923.26 points and N13.851 trillion respectively.

Also, all other indices finished higher during the week with the exception of the NSE Premium, NSE ASeM and NSE Lotus II indices, which depreciated by 0.58 percent, 1.44 percent and 0.82 percent respectively.

During the four trading sessions in the week, massive transactions saw a total of 55 equities appreciating in price, higher than 32 of the previous week, while 12 equities depreciated in price, lower than 25 equities of the previous week, and 105 equities remained unchanged, lower than 115 equities recorded in the preceding week.

Also during the week, activities inched up by more than 50 percent as a total turnover of 2.417 billion shares worth N18.813 billion in 20,874 deals were traded by investors on the floor of the NSE in contrast to a total of 1.310 billion shares valued at N12.635 billion that exchanged hands last week in 9,016 deals.

The Financial Services Industry continued to lead the activity chart as the sector traded 1.677 billion shares valued at N8.734 billion in 13,033 deals, contributing 69.39 percent and 46.43 percent to the total equity turnover volume and value respectively.

The Conglomerates Industry followed with 536.922 million shares worth N1.258 billion in 1,288 deals, while the third place was occupied by Consumer Goods Industry with a turnover of 100.460 million shares worth N6.951 billion in 3,426 deals.

Stocks of Transnational Corporation of Nigeria Plc, Diamond Bank Plc and Skye Bank Plc were the toast of investors as it accounted for 1.193 billion shares worth N1.681 billion in 2,957 deals, contributing 49.37 percent and 8.93 percent to the total equity turnover volume and value respectively.

According to the weekly report obtained from the Nigerian Bourse, a total of 305,604 units of Exchange Traded Products (ETPs) valued at N3.498 million were executed in 8 deals, compared with a total of 276 units valued at N9,865.34 that was transacted last week in 12 deals, while a total of 2,162 units of Federal Government Bonds valued at N2.016 million were traded this week in nine deals, compared with a total of 422,672 units valued at N 436. 190 million transacted last week in 20 deals.

Worthy of note,  during the week, is the massive activities around the shares of embattled Oando Plc at Bourse as analysis showed that the average volume of Oando stocks traded by investors in the last one month was 2.98 million, a comparison of this with the last traded volume reflected 945.87 percent growth.

But at the close of trading on January 4, 2018, about 31.17 million shares of Oando Plc worth N186.71 million were exchanged by investors at N5.99k per share in contrast to 12.52 million units traded for N75.01 million the previous day, representing 148.90 percent growth in comparison to the previous day.

Furthermore, it also represents 3.78 percent of the total market volumes of 825.13 million as against 2.12 percent of the total market volumes of 589.58 million traded the previous day.

Also, a look at the volume traded in the last one month reflected that the 31.17 million shares traded on Thursday was the highest ever traded within the period under review. The total volume traded represents 0.25 percent of Oando’s total shares outstanding put at N12.43 billion shares.

With the huge sales volume in the shares of Oando sine the beginning of the year 2018, analysts at Proshare Research believed trend recorded on the stock came as a result of speculative trading largely from retail investors.

Meanwhile, investors and observers still await the forensic audit to be carried on Oando Plc, with the regulatory body, Security Exchange Commission (SEC) maintaining its stance that the exercise would still go on this month.