Monday, 9 June 2014

Nigerian Equities Close Higher Despite Sell Pressure

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NSE Headoffice
Investors in the Nigerian equities again smiled home last week as the market sustained its positive run despite the huge sell pressure fuelled  by profit-taking.
Activities were mixed during the week despite bargain hunters drive to take advantage of stocks with upside potential but currently trading below their value.
Though it experienced some measure of volatility in the month of May, the Nigerian equities market had ended last month higher helped by renewed investors’ confidence.
The last week of May was particularly spectacular as investors maintained their positive outlook in the equities market helping the benchmark index to hit a three months high of 41,474.39.
The Nigerian Stock Exchange (NSE) had the previous week stated that the return of domestic investors is partially responsible for the positive run in the market.
Speaking at a forum put together by the NSE and CFA Society of Nigeria, Executive Director, Business Development of the NSE, Jalo Waziri, said more investor are returning to the market, increasing domestic participation.
He added that though the stock market has shown sign of improve confidence the Exchange still has a lot to do, “year-to-date, 2014, local investors participation in our market outweighs foreign participation.”

The stock market had enjoyed positive moments in the last few weeks helped by drive by bargain hunters to take  advantage of discounted stocks for possible future gains.
In the same vein, traders told THISDAY last week that the market may be heading for a huge rally if the promise by the new governor of the Central Bank of Nigeria (CBN), Mr Godwin Emeifele to gradually slash lending rates is anything to go by.
Others had told THISDAY that the days ahead will be positive as more investors scramble for undervalued stocks with strong full year results.
“We expect that positive momentum will commence towards the first half of next week as investors might seek to capitalise on undervalued stocks particularly the banking stocks. But most importantly the days ahead will be very interesting for stakeholders in the capital market if the promise to reduce interest rates come to fruition. Overall, we expect market breath to stay relatively positive within the period, “said a trader.
Meanwhile, at the end of trading activities for last week, which was the first week of the June,  the NSE ASI and the market capitalisation  appreciated by 0.13 per cent to close on Friday at 41,529.11 and N13.713 trillion respectively.
Similarly, all the NSE indices appreciated during the week with the exception of the NSE Banking Index (1.14 per cent) and NSE Insurance Index (1.51 per cent). But  NSE ASeM index closed flat.

Summary of Daily Performance
The market had at the resumption of trading last Monday sustained its upward momentum as the benchmark index appreciated by 0.07 per cent to close at 41,501.40 from 41,474.39 recorded the previous Friday. Market capitalisation also increased to N11.542 trillion from N13.694 trillion on Friday. Also, trading activities appreciated by 37.66 per cent as investors bought 418.49 million shares worth N11.54 billion, in 6,063 deals, compared to 671.26 million shares worth N11.87 billion, in 5,869 deals exchanged the previous Friday. Access Bank Plc, FBN Holdings Plc and Ecobank Transnational Incorporated were the most actively traded stocks on the exchange on the day in terms of volume, while Nestle Nigeria Plc, FBN Holdings Plc and Guaranty Trust Bank Plc, topped the list in terms of value.
The market closed on a negative note on Tuesday, as the index depreciated by 0.25 per cent to close at 41,397.68. Similarly, the market capitalisation depreciated by 0.25 per cent to close at N13.67 trillion, compared with the marginal appreciation of 0.07 per cent recorded on Monday. The depreciation in the Index was as a result of losses recorded in the share prices of some highly capitalised stocks such as: UACN Plc, FBN Holdings Plc, UBA Plc, Zenith Bank Plc and Union Bank of Nigeria Plc amongst others.
Bargain for stocks with inherent value helped the market to  close northward on Wednesday as the index appreciated by 0.55 per cent to be at 41,627.43 from 41,397.68. Also, market capitalisation increased to N13.745 trillion from N13.669 trillion recorded the previous trading day. Trading activities also appreciated by 28.86 per cent in volume and 15.76 per cent in value, as investors bought 430.92 million shares worth N6.51 billion, in 5,569 deals, compared to 334.42 million shares worth N5.62 billion, in 6,091 deals exchanged on Tuesday. Access Bank Plc, Mutual Benefits Assurance Plc, and Guaranty Trust Bank Plc were the most actively traded stocks on the exchange on the day in terms of volume, while Access Bank Plc and Guaranty Trust Bank Plc topped the list in terms of value.
The market, again, returned southward on Thursday as the benchmark index declined by 0.14 per cent to close at 41,627.43  from 41,627.43 attained on Wednesday. Market capitalisation  decreased to N13.726 trillion from N13.745 trillion. A total number of 31 stocks gained on the day while 31 stocks declined leaving 62 stocks unchanged.
Sell pressure continued at the close of business for the week last Friday as the benchmark index declined by 0.10 per cent to close at 41,529.11 points from 41,627.43 attained on Thursday. In the same vein, market capitalisation decreased to N13.712 trillion from N13.726 trillion.

Market Turnover
Meanwhile, a turnover of 1.876 billion shares worth N32.902 billion in 28,408 deals were traded last week by investors on the floor of the Exchange in contrast to a total of 1.901 billion shares valued at N34.643 billion that exchanged hands the previous week in 20,452 deals.
The Financial Services Industry (measured by volume) led the activity chart with 1.381 billion shares valued at N15.550 billion traded in 14,386 deals; thus contributing 73.63 per cent and 47.26 per cent to the total equity turnover volume and value respectively. The Conglomerates Industry followed with a turnover of 162.501 million shares worth N1.536 billion in 1,979 deals. The third place was occupied by the Industrial Goods Industry with 100.029 million shares worth N2.114 billion in 2,007 deals.
Trading in  the top three equities- Access Bank Plc, Zenith  Bank Plc and Transnational Corporation of Nigeria Plc (measured by volume) accounted for 567.628 million shares worth N7.835 billion in 4,068 deals, contributing 30.25 per cent and 23.81 per cent to the total equity turnover volume and value respectively.
Also traded during the week were a total of 260,422 units of Exchange Traded Products (ETPs) valued at N5,505,971.00 executed in 19 deals compared with a total of 31,355 units valued at N700,587.60 transacted last week in 13 deals.
Similarly, 2,800 units of FGN bonds valued at N3, 375,304.94 were traded this week in 3 deals compared with a total of 100 units valued at N111, 626.54 transacted last week in 1 deal.

Gainers and Losers
Meanwhile, 42 equities appreciated in prices last week lower than 55 equities of the preceding week. Forty-two equities depreciated in prices higher than 21 equities of the preceding week, while 116 equities remained unchanged lower than 124 recorded in the preceding week.
The top 10 gainers were: Forte Oil Plc (N36.13), Ashaka Cement Plc (N4.89), Conoil Plc (N3.59), CAP Plc (N2.49); Oando Plc (N1.77); TrnacorpPlc (49 kobo); University Press Plc (44 kobo); Airline Services and Logistics Plc (22 kobo);Cutix Plc (18 kobo) ; and  Pfizer Products Plc (13 kobo).
Conversely, the top 10 losers for the week included: Julius Berger Nigeria Plc (N7.99); MRS Oil Plc (N5.14); UAC Plc (N5.00); Berger Paints Plc (N1.39); Northern Nigeria Flour Mills Plc (N1.10); Caverton Offshore Support Group Plc (N1.00); Portland Paints Products Nigeria Plc (26 kobo); May and Baker Plc (10 kobo); West African Provincial Insurance Plc (seven kobo); and  NEM Insurance Plc (five kobo).
Source: ThisDayLive

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