• Market Gains N267bn amidst Profit Taking

The Nigerian equities market ended last week on bullish note for the fifth consecutive time despite moves by some investors to take profit. While investors have been taking booking profits on some stocks as a result of unprecedented price rise in the past weeks, the growth was sustained as other investors increased demand for consumer and industrial goods following impressive half year financial performance.

As a results, the Nigerian Stock Exchange (NSE) All-Share Index appreciated by 2.07 per cent to close at 38,198.60 to bring the year-to-date growth to 42.1 per cent. Similarly, the market capitalisation added N266.6 billion to close at N13.17 trillion.

Daily Market Performance

The equity market resumed on Monday on a positive noted with the index appreciating by 0.27 per cent to close at 37,525.38 , while the ,market capitalisation ended at N12.90 trillion. The appreciation recorded in the share prices of Nestle, Mobil, Nigerian Breweries, Lafarge Africa, and GTBank was bolstered the gain recorded in the index. Investors committed N5.80 billion to 254.48 million shares in 4,600 deals the first day, which was however lower than the N6.30 billion invested the previous day.

The three most actively traded sectors were: Financial Services (176.74 million shares), Consumer Goods (40.26 million shares), and Conglomerates (11.09 million shares), while the the three most actively traded stocks were: Access Bank (46.28 million shares), Zenith Bank (29.57 million shares) and GT Bank (25.54 million shares).

Only two sectors appreciated, while three depreciated. The NSE Consumer Goods Index led sector led with a 2.2per cent appreciation, following gains in Nestle (+3.3 per cent) and Nigerian Breweries (+3.1 per cent). Similarly, the NSE Industrial Goods Index trailed with 0.6 per cent growth as a result of uptick in Lafarge Africa (+1.7 per cent).

Conversely, losses in AXA Mansard Insurance Plc and Continental Reinsurance Plc dragged the NSE Insurance Index 2.0 per cent lower. In the same vein, the NSE Banking and NSE Oil & Gas indices fell by 0.2 per cent apiece.

Tuesday was another positive day as the market hit a 34-month high. The market capitalisation crossed the N13 trillion mark, closing at N13.1 trillion, just as the index stood at 37,999.56 to record a year-to-date growth of 41.4 per cent.

The positive momentum was sustained due to high demand for consumer goods bellwethers and mid-cap banking stocks. Despite the positive performance by the benchmark index, performance across sectors was bearish as all indices closed in the red except for the NSE Consumer Goods Index that rose by 5.4 per cent. The NSE Oil & Gas Index led the bears, falling by 0.8 per cent, trailed by the NSE Insurance Index, which shed 0.6 per cent. The NSE Industrial Goods Index closed 0.2 per cent lower as a result of weak demand for Dangote Cement, and Cement Company of Northern Nigeria, just as the NSE Banking Index shed 0.1 per cent.

The Nigerian stock market maintained its gaining streak on Wednesday surging further to record a year-to-date growth of 41.9 per cent. The index The Nigerian advanced by 0.38 per cent to close higher at 38,144.02, while market capitalisation added N49.8 billion to close at N13.147 trillion.

The bullish trend was driven by sustained interest in consumer goods and banking stocks such as Nestle Nigeria Plc, Guinness Nigeria Plc and Guaranty Trust Bank Plc.

In all, 21 stocks appreciated compared with 23 stocks that depreciated. However, volume and value traded rose 50.6 per cent and 20.3 per cent to 328.7 million shares and N6.1 billion respectively.

According to analysts at Meristem Securities Limited, “despite the profit taking activities on some stocks, the market’s gain recorded at the close of trades may be attributed to the sustained rally on some large cap tickers in the consumer goods space.”

Guinness Nigeria Plc led the price gainers, rising by 10.2 per cent to close at N87.50 per share, trailed by Jaiz Bank Plc, which advanced by 10 per cent.

Nigerian Aviation Handling Company Plc closed as the third highest price gainer, chalking up 9.9 per cent. Dangote Flour Mills Plc appreciated by 9.5 per cent, while Vitafoam Nigeria Plc garnered 5.02 per cent.

Conversely, Champion Breweries Plc led the price losers with 9.3 per cent, trailed by Livestock Feeds Plc with 5.0 per cent. Conoil Plc and Continental Reinsurance Plc went down by 4.5 per cent apiece among others.

The equities market bucked a seven-day gaining streak on Thursday as investors moved in for profit taking on blue-chip stocks. Consequently, the index fell by 0.11 per cent to close at 38,102.85 points while the YTD return moderated to 41.8per cent. The bearish performance was largely dragged by sell-offs in Tier-1 banking stocks including Zenith Bank and GTBank Plc that offset gains recorded by Stanbic IBTC, Nestle and Unilever.

The market recovered on Friday, rising by 0.25 per cent, hence the closing the week with a gain of 2.07 per cent.

Market Turnover

The market recorded a turnover of 1.518 billion shares worth N28.868 billion in 23,053 deals were traded by investors on the floor of the exchange in contrast to a total of 2.518 billion shares valued at N114.117 billion that exchanged hands in 23,546 deals the previous week.

The Financial Services Industry led the activity chart with 1.178 billion shares valued at N14.445 billion traded in 11,520 deals, thus contributing 77.63 per cent and 50.04 per cent to the total equity turnover volume and value respectively. The Consumer Goods Industry followed with 183.850 million shares worth N12.508 billion in 5,807 deals. The third place was occupied by Conglomerates Industry with a turnover of 53.758 million shares worth N126.669 million in 819 deals.

Trading in the top three equities namely – Access Bank Plc, Zenith Bank Plc and Guaranty Trust Bank Plc, accounted for 500.113 million shares worth N11.910 billion in 3,870 deals, contributing 32.95per cent and 41.26 per cent to the total equity turnover volume and value respectively.

Also traded during the week were a total of 2,461 units of Exchange Traded Products (ETPs) valued at N296,837.94 executed in nine deals compared with a total of 1.166 million units valued at N16.169 million transacted the previous week in 17 deals.

Similarly, total of 9,615 units of Federal Government Bonds valued at N8.301million were traded in 21 deals, compared with a total of 5,850 units valued at N5.702 million transacted two weeks ago.

Price Gainers and Losers

Meanwhile, 32 equities appreciated during the review week as against 38 equities of the previous week, while 37 equities depreciated in price, compared with 28 equities of the previous week.

Guinness Nigeria Plc led with 27.1 per cent trailed by Nigerian Aviation Handling Company Plc with 20.2 per cent. Dangote Flour Mills Plc garnered 18.3 per cent, just as Nestle Nigeria Plc, while Jaiz Bank Plc, Unilever Nigeria Plc and Union Bank of Nigeria Plc chalked up 13.5 per cent, 10.3 per cent, and 10.1 per cent respectively. B.O.C Gases Plc, Stanbic IBTC Holdings Plc, Cement Company of Northern Nigeria Plc advanced by 10 per cent, 9.3 per cent and 8.8 in that order.

Conversely, N.E.M Insurance Plc led the price losers with 18.5 per cent, followed by Morison Industries Plc with 13.2 per cent. Dangote Sugar Refinery Plc and Caverton Offshore Support Group Plc went down by 12.5 per cent, just as Continental Reinsurance Plc, Forte Oil Plc, and Conoil Plc shed 12.2 per cent, 10.5 per cent and 10.4 per cent respectively.

Other top price losers included: African Prudential Plc (8.0 per cent); Unity Bank Plc(7.9 per cent) and Champion Breweries Plc (7.7 per cent).