Another N224bn weekly profit confirms predictions on Nigerian equities
Events at the Nigerian equities market unfolded last week in agreement with earlier prediction by analysts at various quarters, who unanimously held that the bulls have higher propensity to rule market in the month of June.
With the close of yet another week in the green, equities investors grew richer with N224 billion profit raked in the last five trading sessions on the floor of Nigerian Exchange Limited.
Consequently, the index that tracks share price movements at the bourse added 430.18 points, equivalent to 1.11 per cent to close at 39,156.28 basis points while market capitalization maintained its stand above N20 trillion mark it peaked previous to close at N20.409 trillion.
Business Metrics observed that during the week, investors continued to cherry-pick stocks with attractive dividend yields ahead of the second half dividend declarations.
Notably, foreign investors’ interest in OKOMUOIL which soared +20.7 per cent and bargain-hunting in STANBIC, FLOURMILL, Dangote Cement and Dangote Sugare that gained 6.1 per cent, 5.3 per cent, 4.6 per cent and 4.4 per cent, spurred the weekly gain.
Sectoral performance was broadly positive, as the Industrial Goods (+2.4 per cent) index led the gainers’ chart, followed by the Oil and Gas (+1.4 per cent), Consumer Goods (+1.1 per cent) and Banking (+0.9 per cent) indices. Conversely, the Insurance index shed 4.1 per cent to emerge as the week’s sole loser.
Consequent of the weekly gain, the month-to-date (MtD) return printed 1.9 per cent, while the year-to-date (YtD) loss moderated to -2.8 per cent.
In terms of weekly turnover, activity levels were mixed, as trading volume declined by 2.2 per cent week-on-week, while trading value soared significantly by 34.4 per cent.
Analysts held that in the week ahead, investors would continue to cherry-picking stocks ahead of the H1-2021 dividend declarations.
“With the recent development in the fixed income (FI) market, we are approaching an inflexion point; we, therefore, see scope for increased buying interest from risk-averse investors.
“Notwithstanding, we advise investors to take positions in only fundamentally justified stocks as the unimpressive macro story remains a significant headwind for corporate earnings,” Cordros Capital analysts said in a commentary note to Business Metrics.
Trading Statistics
Last week, investors pushed a turnover of 1.058 billion shares worth N12.831 billion in 17,854 deals, in contrast to a total of 1.082 billion shares valued at N9.548 billion that exchanged hands previously in 17,933 deals.
Measured by volume, the Financial Services Industry led the activity chart with 714.677 million shares valued at N5.951 billion traded in 9,718 deals; thus contributing 67.53 per cent and 46.38 per cent to the total equity turnover volume and value respectively.
The Consumer Goods Industry followed with 97.181 million shares worth N3.297 billion in 3,006 deals and the third place was ICT Industry, with a turnover of 75.987 million shares worth N583.715 million in 679 deals.
Trading in the top three equities namely, Zenith Bank Plc, Sterling Bank Plc and Fidelity Bank Plc led traded volume chart as they accounted for 261.344 million shares worth N2.712 billion in 2,862 deals, contributing 24.70 per cent and 21.13 per cent to the total equity turnover volume and value respectively.
Similarly, investors staked a total sum of N160,140.74 on 1,026 units of Exchange Traded Products (ETFs) in eight deals compared with a total of 706 units valued at N5.127 million transacted in the previous week in six deals.
In the bond segment of the market, investors participation resulted into 10 deals during which a total of 5,335 units valued at N5.350 million were traded. This was in contrast with a total of 91,560 units valued at N96.346 million transacted in the preceding week in 30 deals.
