Equities Market Sustains Bullish Trading on Positive Sentiments

By Goddy Egene

The stock market sustained its positive performance last week as the Nigerian Stock Exchange (NSE) All-Share Index appreciated by 0.76 per cent, to close higher at 38,928.02, while market capitalisation chalked up N150.9 billion to end the week at N14.102 trillion.

The market had recovered from a bearish trading the preceding week, by gaining N700 billion in terms of market capitalisation.

Although trading was for only four days last week due to public holiday last Friday and today, declared by the federal government to mark the end of Ramadan and commemorate the Eid-al-Fitr celebrations, the bulls were able to repel advances by the bears twice.

Consequently, the market closed higher, for the second week running. While  the NSE ASI and other indicators appreciated the NSE Corporate Governance, NSE Consumer Goods and NSE Industrial Goods Indices depreciated by 0.08 per cent, 0.85 per cent and 0.12 per cent respectively.

 

Daily Performance

Trading   resumed on  Monday on a positive note  with  the  index rising by 0.45 per cent, to close at 38,844.32.  A total of 30 stocks appreciated  while   20 others depreciated.  Consequently, the month-to-date and year-to-date growth improved to 1.94 per cent and 1.57 per cent in that order.

According analysts at Meristem Securities Limited, trading recovered from the losses recorded on the final trading session the preceding week.

“The gains on counters in the banking and consumer goods sectors drove the performance of the market. We expect this to continue for the remainder of the week, even with bouts of profit taking on some of the counters,” they had said.

Bellwethers such as Nigerian Breweries Plc, FBN Holdings Plc, Guaranty Trust Bank Plc and Zenith Bank Plc were among the advancers. But NASCON Allied Industries Plc led the overall gainers’ table with 7.1 per cent on that day.

Diamond Bank Plc trailed with 6.5 per cent, while Japaul Oil & Maritime Services Plc gained 6.4 per cent. NAHCO Plc and Equity Assurance Plc chalked up 5.0 per cent each. AIICO Insurance Plc and Presco Plc gained 4.8 per cent and 4.7 per cent respectively last Monday.

Conversely, Berger Paints Nigeria Plc led the price losers with 5.0 per cent, followed by BOC Gases Plc with 4.9 per cent. Eterna Plc shed 4.7 per cent just as Prestige Assurance Plc and Wema Bank Plc went down by 4.4 per cent and 3.9 per cent respectively.

Meanwhile, activity level was mixed on the first trading day last week, as volume traded improved by 187.2 per cent to 603.2 million shares while value traded remained flat at N3.9 billion. The most traded stocks by volume were Ikeja Hotel Plc (279.6 million shares), United Capital Plc (79.1 million shares) and African Prudential Plc (56.8 million shares) while Ikeja Hotel Plc (N705.0 million shares), Dangote Sugar Refinery Plc (N641.9 million) and GTBank (N437.7 million) were the top traded stocks by value.

Nevertheless, the bullish trend was sustained on Tuesday as the index rose further by 0.84 per cent to close at 39,167.39.

Similarly, the market capitalisation added N117 billion to close last Tuesday at N14.2 trillion.

 As a result, the year-to-date (YTD) growth improved to 2.4 per cent.

The performance was influenced by gains in Dangote Cement Plc, Nestle Nigeria Plc and Seplat Petroleum Company Development Plc. In all, 27 stocks appreciated while 21 depreciated.

Seplat led the price gainers with 8.1 per cent on as investors increased their stake ahead of improved returns. The company had last year returned to profitability last year and consolidated on the performance in the first quarter ended March 31, 2018.

The Managing Director of Seplat, Mr. Austin Avuru last week told investors at the company’s annual general meeting that the company was well equipped to deliver long-term value for shareholders.

 “I am pleased to report that Seplat made a return to full-year profitability in 2017, registered strong cash flow performance and significantly strengthened the balance sheet.

“In a year of contrast, we were plagued throughout most of the first half by force majeure at the Forcados terminal. Our proactive and decisive management coupled with the strong underlying fundamentals of the business have seen us emerge from an exceptionally challenging period a much fitter and stronger business that is well equipped to deliver long-term value for our shareholders,” he had said.

Double 11 Plc closed as the second highest price gainer with 4.9 per cent, NEM Insurance Plc and Equity Assurance Plc garnered 4.8 per cent and 4.7 per cent in that order.

Conversely, last Tuesday, Prestige Assurance Plc led the price losers with 4.6 per cent, followed by Eterna Plc with 4.4 per cent. FCMB Group Plc shed 4.1 per cent, just as Niger Insurance Plc and A.G Leventis Plc went down 3.7 per cent.

In terms of sectors, four of them appreciated while only one declined.  The loser was the NSE Banking Index that shed 0.04 per cent.  The NSE Oil & Gas Index led with 4.9 per cent on the back of gains by Seplat and Double 11.

The NSE Insurance Index rose 0.9 per cent, while the NSE Industrial Goods Index and NSE Consumer Goods Index depreciated by 0.5 per cent and 0.4 per cent.

However, on Wednesday the positive trend was halted as some investors moved in to take profit.  This led to the index declining by 0.35 per cent to close at 39,031.72.

 Similarly, on that day, the market capitalisation shed  0.35 per cent  to close at N14.14 trillion. The depreciation recorded in the share prices of FBN Holdings, Dangote Sugar, Nigerian Breweries, Zenith Bank, and UBA were mainly responsible for the negative close.

 The three most actively traded stocks on that day, were UBA (90.61 million shares), United Capital (78.68 million shares), and African Prudential (72.10 million shares).

 But the stock market closed lower on Thursday, which was the last trading day of the week. While the index fell from 39,031.72 to close at 38,928.02,  market capitalisation declined from N14.139 trillion to N14.102 trillion.

Although 28 stocks appreciated as against 17 that depreciated, heavy weight such as  Zenith Bank Plc, FBN Holdings Plc and Nigerian Breweries Plc that were among the losers led to the bearish close.

 

Market Turnover

In  the   four trading sessions last week , a total turnover of 1.738 billion shares worth N18.462 billion in 14,790 deals was recorded compared with  1.749 billion shares valued at N31.183 billion that exchanged hands in 24,604 deals the previous week.

However, the   Financial Services Industry was the most active with  1.170 billion shares valued at N9.695 billion exchanged in  7,809 deals, thus contributing 67.3 per cent and 52.5 per cent  to the total equity turnover volume and value respectively. The Services Industry followed with 293.492 million shares worth N733.407 million in 531 deals. The third place was occupied by Consumer Goods with a turnover of 154.093 million shares worth N4.997 billion in 3,002 deals.

Trading in the top three equities namely – United Capital Plc, Ikeja Hotel Plc and United Bank For Africa Plc accounted for 811.747 million shares worth N3.887 billion in 986 deals.

 

Price Gainers and Losers

Meanwhile, 40 equities appreciated in price during the review week, lower than 49) in the previous week, while 28 equities depreciated in price, lower than 29 equities of the previous week.

Japaul Oil & Maritime Services Plc led the price gainers with 22.5 per cent, trailed by Equity Assurance Plc with 20 per cent. Union Bank of Nigeria Plc appreciated by 10.7 per cent just as Okomu Oil Palm Plc and Learn Africa Plc chalked up 10.2 per cent and 9.7 per cent in that order.

Other top gainers were: LASACO Assurance Plc (8.5 per cent); NPF Microfinance Bank Plc (8.5 per cent); Ikeja Hotel Plc (8.3 per cent); Honeywell Flour Mills Plc (8.2 per cent) and C & I Leasing Plc (7.4 per cent).

Conversely,  Mutual Benefits Assurance Plc led the price losers, shedding 13.8 per cent, followed by A.G Leventis Nigeria Plc (7.5 per cent). Nigerian Breweries Plc went down by 5.9 per cent, just as  Berger Paints Nigeria Plc declined 5.0 per cent.

Other top losers included: B.O.C Gases Plc (4.9 per cent); Union Diagnostic & Clinical Services Plc ; Neimeth International Pharmaceuticals Plc(4.7 per cent apiece); Law Union & Rock Insurance Plc (4.6 per cent); Prestige Assurance Plc (4.4 per cent) and Newrest ASL Nigeria Plc (4.2 per cent).