By Goddy Egene
The
stock market made an unexpected recovery last week as investors embarked
on bargain hunting in stocks perceived to have attractive valuation.
After falling 17.8 per cent last year the market had opened the New Year
on bearish note due to weak demand for stocks ahead of the general
elections.
However, some discerning investors decided to take advantage
of prices of some stocks that had hit record lows.
Hence, the return of the bulls to the market leading to seven days of gain.
Consequently, the
Nigerian Stock Exchange (NSE) All-Share Index (ASI) appreciated 3.9
per cent last week to close at 31,005.17, while market capitalisation
ended higher at N11.562 trillion.
Similarly,
all other indices finished higher with the exception of the NSE Banking
Index that depreciated by 1.04 per cent while the NSE ASeM index closed
flat.
The NSE
Industrial Goods Index led with 12.7 per cent gain, followed by the NSE
Insurance Index with 5.5 per cent, while NSE Consumer Goods Index and
NSE Oil & Gas Index went up by 2.7 per cent and 0.59 per cent in
that order.
However,
commenting on the market performance, analysts at Cordros Capital
Limited said: “In spite of this week’s rally, our view continues to
favour cautious trading pattern in the equities market amidst brewing
political jitters ahead 2019 elections, and the absence of a positive
market trigger. However, we the positive macroeconomic fundamentals to
drive recovery in the long-term.
Daily Performance
The
Chief Executive Officer of the NSE, Mr. Oscar Onyema, had on Monday,
explained why the market declined last year. He had said it was the
trend globally as most emerging and frontier markets closed weaker. He
noted that in Nigeria, the market would remain volatile in the first
half (H1) of 2019 before it will recover in second half (H2).
“Accordingly,
we anticipate volatility in equities market in H1 in 2019 with
enhanced stability post-elections. We believe swift approval and
implementation of the 2019 budget may have a positive impact on the
companies’ earnings as well as consumer spending. Therefore, we
anticipate a return of listings during the year with an uptick in market
activity during the H2 of 2019,” Onyema said.
Also,
last Tuesday, the market the maintained bullish trend with the NSE ASI
rising 0.4 per cent to close at 30,583.21, while market capitalisation
added N45.7 billion to close at N11.4 trillion.
The
renewed demand has continued to boost prices of stocks. And buying
interests in Dangote Cement Plc, Nigerian Breweries Plc among other
bellwethers influenced the positive performance on that day.
But
Neimeth International Pharmaceuticals Plc led the price gainers’ chart
with 9.4 per cent, trailed by NEM Insurance Plc with 9.7 per cent.
Sovereign Trust Insurance Plc went up by 9.0 per cent, while Royal
Exchange Plc and Jaiz Bank Plc chalked up 8.3 per cent and 8.0 per cent
respectively.
PZ
Cussons Nigeria Plc, Union Diagnostic & Clinical Services Plc and
Wema Bank Plc garnered 7.7 per cent, 7.4 per cent and 5.1 per cent in
that order. Cement Company of Northern Nigeria Plc and Forte Oil Plc
appreciated by 4.5 per cent and 2.5 per cent respectively.
Conversely,
Etranzact Plc led the price losers with 9.8 per cent, trailed by Resort
Savings and Loans Plc with 9.6 per cent, just as Cornerstone Insurance
Plc shed 9.0 per cent. NPF Microfinance Bank Plc went down by 8.1 per
cent, while First Aluminium and AXA Mansard Insurance Plc depreciated
by 6.0 per cent and 4.6 per cent in that order.
By
Wednesday, the market had recovered N235 billion in three days
following gains recorded by bellwether stocks. The market
capitalisation rose from N11.124 trillion to N11.329 trillion in three
days, while the NSE ASI rose 2.1 per cent from 29,830.70 to close at
30,460.68 in the three days.
However,
on Wednesday alone, accounted for 1.07 per cent bolstered by gains
in bellwether counters such as Guinness Nigeria Plc, Forte Oil Plc,
Dangote Cement Plc and United Bank for Africa Plc among others.
A total
of 24 stocks appreciated compared with 16 others that depreciated.
Sovereign Trust Insurance Plc and Veritas Kapital Assurance Plc led the
price gainers with 10 per cent apiece. Guinness Nigeria Plc followed
with 9.6 per cent, just as Honeywell Flour Mills Plc and NEM Insurance
Plc chalked up 9.5 per cent each. Custodian Investment Plc added 9.4 per
cent just as Niger Insurance Plc, Union Diagnostic and Clinical
Services Plc and University Press Plc garnered 9.1 per cent, 8.0 per
cent and 5.2 per cent respectively.
UBA was
also among the price gainers, rising 2.0 per cent or N0.15 to close at
N7.45 per share as investors took position ahead of dividend
announcement by the bank. The board of directors of the bank will meet
soon to approved its 2018 financial accounts and recommend a final
dividend for the year. Having paid an interim dividend for the half
year, expectations are high that UBA will give a dividend that is higher
than what was paid the previous year.
Beta
Glass Plc led the price losers with 10 per cent trailed by Northern
Nigerian Flour Mills Plc with 9.2 per cent. Resort Savings and Loans Plc
shed 8.8 per cent, while PZ Cussons Nigeria Plc and Neimeth
International Pharmaceuticals Plc 8.3 per cent and 4.6 per cent in that
order.
Activity
level was, however, mixed as volume traded increased 1.9 per cent to
305.8 million shares while value traded declined 35.3 per cent to N2.1
billion. The top traded stocks by volume were Diamond Bank (141.2
million shares), Fidelity Bank Plc (18.6 million shares ) and GTBank
(17.4 million shares) while GTBank(N577.7 million), Zenith Bank
(N357.1 million) and Diamond Bank (N296.6 million) were the top traded
by value.
The
stock market appreciated further on Thursday as the bulls consolidated
their hold on the market. As a result the NSE ASI appreciated 0.58
per cent to close higher at 30,137.53, while market capitalisation added
N64.4 billion to end at N11.2 trillion.
Buying
interest in Zenith Bank Plc, Dangote Sugar Refinery Plc and Stanbic IBTC
Holdings Plc propelled the positive performance. However, Cement
Company of Northern Nigeria Plc led the price gainers with 10 per cent,
trailed by Ikeja Hotel Plc with 9.3 per cent. Royal Exchange Plc and C
& I Leasing Plc garnered 9.0 per cent apiece. NEM Insurance Plc,
AXA Mansard Insurance Plc and United Capital Plc chalked up 8.6 per
cent, 8.3 per cent and 8.0 per cent respectively.
Conversely,
Newrest ASL Services Plc led the price losers with 9.4 per cent
followed by Veritas Kapital Assurance Plc with 9.0 per cent. Neimeth
International Pharmaceuticals Plc shed 8.5 per cent, just as First
Aluminum Nigeria Plc went down by 8.3 per cent.
Activity
level also strengthened as volume and value traded surged 126.7 per
cent to 300.1 million shares and 199.2 per cent to N3.2 billion. Diamond
Bank (100.7 million shares), GTBank (39.4 million shares ) and UBA
(26.2 million shares ) were the top traded stocks by volume, while
GTBank(N1.3 billion), Zenith Bank (N463.0 million) and Diamond Bank
(N209.4 million) were the top traded by value.
Market Turnover
In terms
of turnover, investors traded 1.270 billion shares worth N13.463
billion in 16,476 deals were traded last week in contrast to a total of
1.265 billion shares valued at N14.074 billion that exchanged hands in
19,278 deals the previous week. However, the Financial Services
Industry remained the most active recording 1.131 billion shares
valued at N10.573 billion traded in 10,352 deals. The Consumer Goods
Industry followed with 37.744 million shares worth N1.628 billion in
2,054 deals. The Conglomerates Industry occupied the third position
with 37.699 million shares worth N102.918 million in 566 deals.
Trading
in the top three equities namely, Diamond Bank Plc, Guaranty Trust Bank
Plc and Zenith Bank Plc accounted for 696.955 million shares worth
N8.509 billion in 3,753 deals.
Price Gainers and Losers
Meanwhile,
38 equities appreciated in price last week higher than 22 recorded
the previous week, while 29 equities depreciated in price, lower than
44 of the previous week.
NEM
Insurance Plc led the price gainers with 43.3 per cent, trailed by
Sovereign Trust Bank Plc Insurance Plc with 30 per cent, while Royal
Exchange Plc chalked up 28.5 per cent. Cement Company of Northern
Nigeria Plc garnered 25.5 per cent just as Custodian Investment Plc and
Union Bank of Nigeria Plc gained 21.7 per cent and 12.5 per cent.
Other
top price advancers included: Dangote Cement Plc (10.1 per cent);
Regency Assurance Plc (10 per cent); Unity Bank Plc (9.6 per cent) and
Ikeja Hotel Plc (9.3 per cent).
On the
contrary, Resort Savings & Loans Plc led the price losers with 29
per cent, followed by Beta Glass Plc with 17.9 per cent. Linkage
Assurance Plc shed 13.8 per cent, while Berger Paints Nigeria Plc and
E-Tranzact International Plc lost 9.8 per cent. NewRest ASL Nigeria Plc
went down by 9.4 per cent, just as Livestock Feeds Plc depreciated by
9.4 per cent.
Other
top price losers were: Livestock Feeds Plc (9.4 per cent); Northern
Nigeria Flour Mills Plc (9.2 per cent); Cornerstone Insurance Plc and
WAPIC Insurance Plc (9.0 apiece).
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