Stock Market Sustains Positive Performance

Goddy Egene
The Nigerian stock market recorded another growth last week to sustain the positive trend as the Nigerian Stock Exchange (NSE) All-Share Index (ASI) appreciated by 0.86 per cent to close at 28,659.45.
Similarly, market capitalisation added N127.6 billion to close at N14.98 trillion. As a result, the year-to date (YTD) growth stood at 6.8 per cent.

The market had remained positive in the past four weeks as investors are attracted by the currently low market valuation amidst the continued low yield environment in the fixed income space.
And many analysts had remained bullish on the market.

For instance, Cordros Research said they expect the market to continue to benefit as domestic investors seek alpha-yielding opportunities in the face of increasingly negative real returns in the fixed income market.
“However, we advise investors to trade in only fundamentally justified stocks as the weak macro environment remains a significant headwind for listed companies,” they said.

Although the market appreciated last week, the volume and value of the previous week could not be sustained. Investors traded 1.955 billion shares worth N22.978 billion in 22,844 deals, down from 3.140 billion shares valued at N35.372 billion that exchanged hands last week in 35,099 deals the previous week.

However, the Financial Services industry led the activity chart with 1.648billion shares valued at N18.824billion traded in 13,050deals, thus contributing 84.3 per cent and 81.9 per cent to the total equity turnover volume and value respectively. The Conglomerates industry followed with 99.313million shares worth N87.823million in 553 deals.

The third place was the Consumer Goods, with a turnover of 60.570million shares worth N991.189 million in 3,269deals. Trading in the top three equities namely United Bank for Africa Plc, Guaranty Trust Bank Plc and Zenith Bank Plc in volume terms accounted for 885.515 million shares worth N15.881 billion in 6,308deals , contributing 45.3 per cent and 69.11 per cent to the total equity turnover volume and value respectively.

The price movement chart showed that 35 equities appreciated during the week, lower than 53 equities in the previous week, while 23 equities depreciated in price, higher than14 equities in the previous week.

Eterna Plc led the price gainers with 34.9 per cent, trailed by International Breweries Plc with 12.9 per cent. Cadbury Nigeria Plc appreciated by 12.5 per cent, just as Guinness Nigeria Plc and Lafarge Africa Plc gained 10.8 per cent.

Total Nigeria Plc chalked up 10 per cent, while Presco Plc garnered 10 per cent and 8.9 per cent in that order. Union Diagnostic & Clinical Services Plc and May & Baker Nigeria Plc chalked up 8.3 per cent apiece, while NASCON Allied Industries Plc went up by 7.8 per cent.

Conversely, E-Tranzact International Plc led the price losers with 26.3 per cent, followed by Portland Paints & Products Nigeria Plc that shed 10.3 per cent. Consolidated Hallmark Insurance Plc depreciated by 8.1 per cent. Royal Exchange Plc, Cutix Plc and AXA Mansard Insurance Plc lost 7.4 per cent, 5.8 per cent and 5.8 per cent in that order.

Other top price losers included: Custodian Investment Plc (4.7 per cent); Fidson Healthcare Plc (4.6 per cent); Ardova Plc (3.6 per cent) and Glaxosmithkline Consumer Nigeria Plc with 3.4 per cent respectively.