Demand for Shares Lifts Market to Five-month High, Articles

November 25, 2013 7:14 PM

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The bulls again dominated the Nigerian equities market throughout last week as the benchmark index closed positive climbing 0.32 per cent on the last trading day to settle at 39,246.05 points (the level it reached on July 13, 13).

Also, the market capitalization increased by N40.4 billion to close at N12.55 trillion while the year-to-date (YTD) return improved to 39.77 per cent from 34.92 per cent at the close of the previous week. Month-to-date (MTD) return similarly inched up to 4.31 per cent as well as week-to-date (WTD) return which stood 3.60 per cent (compared to 0.69 per cent MTD and 0.03 per cent YTD prior week).

The Nigerian equities market had the previous week sustained its positive run despite two consecutive days of losses which was influenced by profit taking activity by anxious investors.

With the largest jump in the Exchange's benchmark index since the end of July this year, the equities market had the prior week reached an all-time high as the benchmark index improved 1.04 per cent to close at 38,293.59 points.

Trading had last Monday resumed with a 0.45 per cent upside as activities increased by 129 per cent in terms of volume as investors bought 862.69 million shares worth N5.71 billion in 5,639 deals compared to 377.50 million units of shares worth N2.74 billion exchanged in 4,840 deals the previous Friday. Transcorp Plc, CWG Plc, WAPIC Plc and Zenith Bank Plc were the most actively traded stocks on the bourse on the day while Transcorp Plc and Zenith bank topped the list in terms of market value.

The market sustained the momentum at the close of trading on Tuesday as it went up by 0.53 per cent. Activities on the however decreased by 9 per cent in terms of volume as investors bought 786.39 million shares worth N4.85 billion in 5,211 deals compared to 862.69 million units of shares worth N5.71 billion exchanged in 5,639 deals on Monday

The bulls maintained their presence with full force on Wednesday as the benchmark Index closed with a bang. The benchmark index leapt by 1.46 per cent, the biggest single day gain in the last 4 months to hit a five-month record high of 38,815.64 points, all thanks to interest in Dangote Cement Plc, Nigerian Breweries Plc and Transcorp Plc. Market capitalisation also soared to N12.415 trillion. Activity level slumped as volume and value of trades fell by 58.2 per cent and 28.6 per cent respectively with 328.94 million shares worth N3.709 billion exchanged on the bourse on the day. Also, all sector performance indices closed green with the Insurance sector outpacing the Oil & Gas sector to top the gainers for the day. The former returned 1.71 per cent gains and the latter leapt by 1.51 per cent. Industrials and Consumer Goods sector followed suit recording 1.40 per cent and 1.03 per cent gains in that order. Banking sector advanced the least, climbing 0.56 per cent.

At the close of business last Friday, trading activities on the Exchange increased by 109 per cent in terms of volume as investors bought 1.16 billion shares worth N7.92 billion in 6,534 deals compared to 557.14million units of shares worth N6.89billion exchanged in 6,377 deals on Thursday. Equity Assurance, Transcorp Plc, Oando Plc and ETI Plc were the most actively traded stocks on the bourse today while Transcorp Plc and Dangote Cement Plc topped the list in terms of market value.

Indicators

The bullish run impacted the market positively as major indicators closed firmer, led by the twin market gauge. Analysis of trading numbers showed that the exchange’s All-Share Index rose by 3.60 per cent to close on Friday at 39,246.05. Similarly, the market capitalisation appreciated by 3.60 per cent to close at N12.553 trillion.

All the indices appreciated during the week with the exception of one: The NSE 30, NSE Consumer Goods, NSE Banking, NSE Insurance, NSE Oil/Gas and NSE Industrial Goods indices rose by 2.85 per cent, 3.85 per cent,1.03 per cent, 2.57 per cent,4.48 per cent, 2.34 per cent and 1.56 per cent respectively. However, NSE ASeM indices slipped by 0.30 per cent respectively.

Market Turnover

A further analysis of trading activity for the week showed that a turnover of 3.699 billion shares worth N29.084 billion in 28,386 deals were traded last week by investors on the floor of the exchange in contrast to a total of 1.585 billion shares valued at N15.846 billion that exchanged hands the previous week in 23,453 deals. The financial services industry (measured by volume) led the activity chart with 2.112 billion shares valued at N10.925 billion traded in 12,178 deals; thus contributing 57.10 per cent and 37.56 per cent to the total equity turnover volume and value respectively.

The conglomerates industry followed with a turnover of 948.059 million shares worth N4.757 billion in 3,713 deals, contributing 25.63 per cent and 16.35 per cent to the total equity turnover volume and value respectively. The third place was occupied by the oil and gas industry with 318.702 million shares worth N5.370 billion in 4,901 deals.

Trading in the top three equities namely Transnational Corporation of Nigeria Plc, Equity Assurance Plc and UBA Capital Plc (measured by volume) accounted for 1.681 billion shares worth N5.143 billion in 3,945 deals, contributing 45.45 per cent and 17.68 per cent to the total equity turnover volume and value respectively.

Also traded during the week were a total of 750 units of NewGold Exchange Traded Funds (ETFs) valued at N1.477 million executed in 4 deals compared with a total of 400 units valued at N791,500.00 transacted last week in 4 deals.

Similarly, 13,207 units of FGN bonds valued at N14.349 million were this week traded in 4 deals compared with a total of 146 units valued at N133, 851.43 transacted last week in 2 deals.

Gainers and Losers

Meanwhile, the price movement chart of the NSE displayed a total of 59 equities that appreciated in prices during the week, higher than 28 equities of the preceding week. Twenty four equities depreciated in prices lower than 50 equities of the preceding week, while 115 equities remained unchanged lower than 119 equities of the preceding week.

The top 10 gainers were: Transcorp Plc (N2.24), Eterna Plc (N1.51), Livestock Feeds Plc (N1.46), Lafarge Unity Bank Plc (18 kobo), Oando Plc (N3.87) Portland Paints and Products Nigeria Plc (N1.02), WAPIC Insurance Plc (14 kobo), NEM Insurance Company Plc (9 kobo), National Salt Company Nigeria Plc (N1.81) and UBA Capital Plc (18 kobo).

On the other hand, the top 10 losers included: Conoil Plc (N8.07), Costain (WA) Plc (20 kobo), Presco Plc (N3.00), A.G. Leventis Nigeria Plc (9 kobo), Forte Oil Plc (N5.78), CAP Plc (N2.58), Nigerian Ropes Plc (39 kobo), E-Tranzact International Plc (15 kobo), GlaxoSmithKline Consumer Plc (N3.00) and McNichols Plc (6 kobo).

Source: thisdaylive.com

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