Nigerian stock market yields N137bn weekly gain

The Nigerian stock market managed to eke out a weekly gain of N137 billion amidst profit-taking pressure, as the All-Share Index (ASI) ended the week 0.7 per cent higher at 35,137.99 basis points.

This development also triggered an upswing in the aggregate capitalization of equity investments at the Nigerian Stock Exchange (NSE) which closed the week higher at N18.365 trillion.

The sustained momentum was propelled largely by gains in AIRTELAFRI which advanced by 19.6 per cent on either side of the week, following continued foreign investor interest.

As such, the telecoms stock managed to offset the declines in DANGCEM (-2.9 per cent), GUARANTY (-5.0 per cent), NB (-7.1 per cent), BUACEMENT (-1.8 per cent) and ZENITHBANK (-2.1 per cent).

Generally, the Month-to-Date (MtD) and Year-to-Date (YtD) return settled at 0.37 per cent and 30.91 per cent respectively.

Performances across sectors were mixed, with the Oil and Gas and insurance indices advancing by 1.7 per cent 1.6 per cent respectively while the banking, consumer goods and industrial goods indices closed in the red as they shed  -3.1 per cent, -2.8 per cent and -2.2 per cent in that order.

In view of the weekly results, investment analysts at Cordros Capital explained that in the short term, “we still see scope for expansion in valuation multiples as the hunt for alpha-yielding opportunities in the face of increasingly negative real returns in the fixed income market remain positive for stocks.

“However, we advise investors to take positions in only fundamentally justified stocks as the weak macro environment remains a significant headwind for corporate earnings.”

According to the trading statistics obtained by Business Metrics, a total turnover of 1.675 billion shares worth N25.425 billion in 23,650 deals were traded by investors on the floor of the Exchange,.

This stand in contrast to a total of 1.816 billion shares valued at N25.791 billion that exchanged hands last week in 31,665 deals, showing softened activity levels as volume and value traded declined by 7.8 per cent and 1.4 per cent week-on-week in that order.

The Financial Services industry (measured by volume) led the activity chart with 1.206 billion shares valued at N12.064 billion traded in 13,534 deals; thus contributing 72 per cent and 47.45 per cent to the total equity turnover volume and value respectively.

The consumer goods industry followed with 102.368 million shares worth N3.616 billion in 3,511 deals while the third place was natural resources industry, with a turnover of 86.626 million shares worth N17.492 million in 28 deals.

Trading in the top three equities namely Access Bank Plc, FBN Holding Plc and Zenith Bank Plc (measured by volume) accounted for 475.819 million shares worth N6.144 billion in 4,900 deals, contributing 28.41 per cent and 24.16 per cent to the total equity turnover volume and value respectively.

Similarly, a sum of 543,655 units of ETPs valued at N4.694 billion were traded in 36 deals compared with a total of 471,624 units valued at N4.224 billion transacted the previous week in 88 deals.

Investors at the Nigerian stock market also traded a total of 3,198 units of bonds valued at N3.898 million were traded during the week in 10 deals compared with a total of 9,697 units valued at N12.173 million transacted in the preceding week in eight deals.