Gains in Dangote Cement, MTN Boost Market Cap by N145bn

Kayode Tokede

The stock market of the Nigerian Exchange Limited (NGX) last week extended its positive run for the third consecutive week, primarily driven by the gains in Dangote Cement Plc and MTN Nigeria Communications stocks.

Thus, NGX All-Share Index notched a 0.48 per cent week-on-week (W-o-W) gain to close at 55,794.51 basis points as the market capitalisation appreciated by N145 billion W-o-W to close at N30.395 trillion.

Across the sectors last week, performance was largely on a mixed trend. Thus, there were declines in the NGX Banking, NGX Consumer Goods, and NGX Oil & Gas indices of 1.82 per cent, 0.26 per cent, and 3.82 per cent from the previous week, while positive price movement was seen in the NGX Industrial Goods index and NGX Insurance index with a gain of 1.71 per cent and 0.70 per cent respectively through the week as investors posed their expectations for the dividend season.

However, market breadth for the week was negative as 22 equities appreciated in price, 41 equities depreciated in price, while 94 equities remained unchanged. Julius Berger Nigeria led the gainers table by 10 per cent to close at N26.95, per share. Trans-Nationwide Express followed with a gain of 9.88 per cent to close at 89 kobo, while International Energy Insurance went up by 8.33 per cent to close to N1.30, per share.

On the other side, MRS Oil Nigeria led the decliners table by 18.99 per cent to close at N27.95, per share. Conoil followed with a loss of 18.89 per cent to close at N38.00, while FTN Cocoa Processors declined by 13.33 per cent to close at 26 kobo, per share.

Overall, a total turnover of 1.023 billion shares worth N20.221 billion in 18,650 deals was traded last week by investors on the floor of the Exchange, in contrast to a total of 1.910 billion shares valued at N18.436 billion that exchanged hands last week in 20,311 deals.

The Financial Services Industry (measured by volume) led the activity chart with 414.427 million shares valued at N5.646 billion traded in 8,136 deals; contributing 40.50 per cent and 27.92 per cent to the total equity turnover volume and value respectively. The Conglomerates Industry followed with 307.868 million shares worth N479.512 million in 1,122 deals, while the Industrial Goods Industry traded a turnover of 104.234 million shares worth N10.354 billion in 1,334 deals.

Trading in the top three equities; Transnational Corporation, Guaranty Trust Holding Company (GTCO) and BUA Cement accounted for 447.809 million shares worth N9.556 billion in 2,018 deals, contributing 43.76 per cent and 47.26 per cent to the total equity turnover volume and value respectively.

Meanwhile, analysts said that the positive performance witnessed in the Nigerian equities market is expected to be maintained this week.

The market last week sustained its positive momentum despite the seesaw movement that resurfaced through the week as a result of the portfolio reshuffling exercise by equity investors ahead of more dividend announcements by listed companies. While the benchmark index moves further towards the 56,000 psychological mark based on its strong momentum, the audited financials and corporate actions are expected to give clear direction to the market notwithstanding the uncertainties associated with the general elections.

Cordros Securities Limited said “we expect market performance to be dominated by the bulls in the week ahead, as we expect investors to take positions in stocks with attractive dividend yields. However, we envisage an undulating pattern will emerge as intermittent profit-taking activities will likely persist.

“Overall, we advise investors to seek trading opportunities in only fundamentally justified stocks as the weak macro story remains a significant headwind for corporate earnings.”

Afrinvest Limited said that “despite the downbeat investor sentiment, we expect the market to trend upwards as investors continue to react to corporate earnings results.”

In the new week, Cowry Assets Management Limited expected “a mixed trend to continue in the market as investors react to the dividend and position for the anticipated financials from primarily tier-one banks.

“While market players place their bull’s eye on dividend-paying companies and defensive stocks to protect their portfolios ahead of the governorship election and post dividend adjustment, we advise investors to trade companies with sound fundamentals and, as such, should take advantage of price corrections in line with domestic and global trends.”