- Equities’ Index Gains 1.5%, Hits Three-month High
The Nigerian equities market maintained a significant bullish trend this week as the All-Share Index appreciated by 1.5 per cent week-to-date to close at a three-month high of 37,944.60 basis points.
On Thursday alone, the market gained N82bn as 11.77 billion shares valued at N21.384bn exchanged hands in 5,152 deals.
The year-to-date and month-to-date returns advanced to 41.2 per cent and 3.4 per cent, respectively.
The Nigerian Stock Exchange marrket capitalisation increased by N205.5bn to N13.2tn, exceeding the N13tn mark for the second time this year. Similarly, activity level improved as average volume and value traded increased 70.8 per cent and 14.3 per cent week-on-week to 745.5 million units and N5.2bn, respectively.
The week’s top traded stock by volume were Wapic Insurance Plc (1.4 billion), FIdelity Bank Plc (224.3 million) and FBN Holdings Plc (164.6 million) while Zenith Bank Plc (N3.9bn), Nigerian Breweries Plc (N3.4bn), and Guaranty Trust Bank Plc (N1.5bn) led the value chart.
The Exchange started the week off on a negative note, as profit taking in banking stocks dragged the NSE ASI 31 basis points lower. However, the market rebounded on Tuesday, majorly on the back of gains in Nigeria Breweries, Stanbic IBTC Holdings Plc and Dangote Cement Plc, which drove the ASI 68bps higher.
Similarly, the market performed positively on Wednesday with the ASI rising 55bps due to broad-based rally across sectors. To close the week, the market sustained its positive run, up 62bps on Thursday against the backdrop of buying interest in bellwether industrial goods and banking stocks.
Performance across sectors was largely bullish this week as all the major NSE indices advanced week-to-date.
The insurance index led the gainers chart, up by 1.5 per cent WTD due to price appreciations in Axa Mansard Insurance Plc and Continental Reinsurance Plc, which appreciated by4.9 perhaps cent and 4.5 per cent, accordingly.
The banking and oil/gas indices trailed, rising by 1.4 per cent apiece – buoyed by gains in Fidelity Bank, GTBank, Forte Oil Plc and Total Nigeria Plc, which soared by 21.2 per cent, 2.4 per cent, 15 per cent and 4.8 per cent, respectively.
Trailing was the consumer goods index which climbed by 1.3 per cent WTD as Dangote Sugar Refinery Plc and Dangote Flour Plc rallied, gaining 4.7 per cent and 11.6 per cent, accordingly.
The industrial goods index gained 1.1 per cent to close out the positive performance, buoyed by buying interest in Dangote Cement, which gained 3.8 per cent.
Investor sentiment, measured by market breadth, strengthened as 38 stocks advanced against 28 decliners, depicting an improvement from the previous week.
Top performing stocks this week were FIdelity Bank, Forte Oil and Law Union and Rock Insurance Plc, which respectively appreciated by 21.2 per cent, 15 per cent and 14.8 per cent.
However, the worst-performing stocks were Mobil Oil Plc, Universal Press Plc and Neimeth International Pharmaceuticals Plc, which declined by 6.1 per cent, 5.5 per cent and 4.9 per cent, accordingly.
Commenting, analysts at Afrinvest Securities said, “The strong performance of the market on Friday which is the index rebalancing date for MSCI Frontier Market indices, perhaps indicate Nigeria had a net inflow of funds.
“Although we anticipate a slight pullback in early trades next week, due to profit-taking, we reiterate our positive near term outlook for the market as fund managers continue to rebalance portfolios ahead of fiscal year-end.”
