Im­proved Half-year Earn­ings Lift Eq­ui­ties Mar­ket to N12.7tn

THISDAY - - BUSINESS WORLD - Goddy Egene and Nosa Alekhuo­gie

It was highly re­ward­ing for in­vestors at the stock mar­ket last week as the mar­ket con­tin­ued on its gain­ing streak for the third con­sec­u­tive week. The mar­ket closed with a record weekly gain of N980 bil­lion in cap­i­tal­i­sa­tion to be at N12.705 tril­lion while the Nige­rian Stock Ex­change (NSE) All-Share In­dex soared by 8.3 per cent to close at 36,864.71.

Sim­i­larly, all other in­dices fin­ished higher dur­ing the week with the ex­cep­tion of the NSE ASeM In­dex that de­pre­ci­ated by 1.09 per cent.

How­ever, the gains recorded last week were ma­jorly pro­pelled by re­ac­tions to pos­i­tive hall year fi­nan­cial re­sults by com­pa­nies. Al­though it was mixed grill, many of bell­wether com­pa­nies im­pressed in­vestors with in­crease in their­bot­tom-lines for the half year ended June 30, 2017.

Daily Mar­ket Per­for­mance

The bulls re­mained in con­trol when trad­ing re­sumed on Mon­day, lift­ing the NSE in­dex by 1.86 per cent to a new year high of 34,652.52. Sim­i­larly, the mar­ket cap­i­tal­i­sa­tion ap­pre­ci­ated near N12 tril­lion mark, clos­ing at N11.94tril­lion.

The ap­pre­ci­a­tion recorded in the share prices of Zenith Bank, La­farge Africa, Ac­cess Bank, Dan­gote Ce­ment, and UBA was mainly re­spon­si­ble for the gain recorded in the In­dex.

In­vestors traded 293.75 mil­lion shares worth N3.94 bil­lion in 3,712 deals. The most ac­tively traded sec­tors were: Fi­nan­cial Ser­vices (254.52 mil­lion shares), Con­glom­er­ates (16.51 mil­lion shares), and Con­sumer Goods (11.31 mil­lion shares), while the three most ac­tively traded stocks were: Ac­cess Bank (73.56 mil­lion shares), UBA (34.61 mil­lion shares) and GTBank (32.57 mil­lion shares).

In terms of sec­toral per­for­mance, three sec­tors closed in green, while two in red. The NSE In­dus­trial Goods In­dex topped gainer’s chart, ap­pre­ci­at­ing 2.5 per cent due to sus­tained buy­ing in­ter­est in Dan­gote Ce­ment Plc and Julius Berger Nige­ria. The NSE Bank­ing in­dex trailed, chalk­ing up 1.1 per cent, while the NSE Oil & Gas In­dex ended the day 0.1 per cent higher. On the flip side, the NSE Con­sumer Goods In­dex fell 0.5 per cent due to sell-off in Nes­tle Nige­ria Plc and PZ Cus­sons. In the same vein, the NSE In­sur­ance In­dex shed 0.4 per cent.

The mar­ket recorded its 14th pos­i­tive con­sec­u­tive ses­sion, as in­vestors re­mained bullish on value stocks ahead of earn­ings re­leases. Con­se­quently, the NSE ASI ad­vanced by 1.19 per cent to close at 35,065.47, in­creas­ing the month-to-date and year-to-date re­turns to 7.29 per cent and 32.22 per cent, re­spec­tively.

The bourse recorded gains across all sec­toral in­dices led by the NSE In­dus­trial Goods In­dex with 2.9 per cent. NSE Bank­ing In­dex and NSE Oil & Gas In­dex added 2.6 per cent and 1.7 per cent in that or­der. The NSE In­sur­ance In­dex ap­pre­ci­ated by 0.59 per cent, just as the NSE Con­sumer Goods In­dex rose by 0.12 per cent.

Fol­low­ing a 15-day bull run, the mar­ket hit a new year high on Wed­nes­day moved closer to a three-year high after the in­dex rose 3.4 per cent to hit 36,740.77, while mar­ket cap­i­tal­i­sa­tion closed higher at N12.662 tril­lion. That was a 32-month high, which was last at­tained in November 2014.

How­ever, Wed­nes­day bullish per­for­mance was largely driven by ap­pre­ci­a­tion in Dan­gote Ce­ment (+4.9 per cent), Nige­rian Brew­eries (+5.0 per cent) and GTBank (+5.0 per cent).

All sec­toral in­di­ca­tors closed pos­i­tively in line with the bullish trend. The NSE Bank­ing In­dex recorded the high­est gain, ris­ing by up 3.7 per cent due to ap­pre­ci­a­tion in GTBank (+4.9 per cent) and Zenith Bank (+6.7per cent). The Con­sumer Goods In­dex trailed with a gain of 2.8 per cent on the back of gains recorded by Nige­rian Brew­eries (+5.0 per cent) and PZ Cus­sons (+5.0 per cent).

Also, the NSE In­dus­trial Goods In­dex added 2.5 per cent higher due to a rally in Dan­gote Ce­ment (+4.9 per cent), just as the NSE Oil & Gas In­dex chalked up 1.8 per cent. The NSE In­sur­ance In­dex closed 0.4 per cent higher.

The mar­ket sus­tained its rally on Thurs­day as the in­dex rose by 1.37per cent to close at 37,245.17, while the mar­ket cap­i­tal­i­sa­tion hit N12.84 tril­lion.

The ap­pre­ci­a­tion recorded in the share prices of Zenith Bank, UBA, Se­plat, Nes­tle, and Nige­rian Brew­eries bol­stered the Thurs­day per­for­mance.

In­vestors traded 542.8mil­lion shares val­ued at N8.01 bil­lion in 5,939 deals on that day, up 72.5 per cent from N4.64 bil­lion recorded the pre­vi­ous day.

The most ac­tively traded sec­tors were: Fi­nan­cial Ser­vices (437.04 mil­lion shares), Con­sumer Goods (53.59 mil­lion shares), and Con­glom­er­ates (22.90 mil­lion shares), while the three most ac­tively traded stocks were: UBA (117.26 mil­lion shares), Zenith Bank (63.03 mil­lion shares) and Di­a­mond Bank (52.15 mil­lion shares).

How­ever, per­for­mance across the var­i­ous sec­tors was mixed as three of five in­dices closed in the green. The NSE Con­sumer Goods In­dex led with 3.8 per cent trailed by the NSE In­sur­ance In­dex that added 2.2 per cent.

The bears set in on Fri­day on profit tak­ing after 16 con­sec­u­tive days of bull run, mak­ing the in­dex to de­pre­ci­ate by 1.02 per cent to close the week at 36,864.71. Profit tak­ing in the share prices of Dan­gote Ce­ment, FBN Hold­ings, UBA, Ac­cess Bank, and Nige­rian Brew­eries was mainly re­spon­si­ble for the de­cline recorded on Fri­day.

The most ac­tively traded sec­tors were: Fi­nan­cial Ser­vices (417.57 mil­lion shares), Con­glom­er­ates (58.39 mil­lion shares), and Con­sumer Goods (28.29 mil­lion shares), while the three most ac­tively traded stocks were: FBNH (96.86 mil­lion shares), Di­a­mond Bank (88.08 mil­lion shares) and Transcorp (57.84 mil­lion shares).

Mar­ket Turnover

Mean­while, a to­tal turnover of 2.211 bil­lion shares worth N30.636 bil­lion in 26,287 deals were traded last week by in­vestors in con­trast to a to­tal of 3.628 bil­lion shares val­ued at N34.886 bil­lion that ex­changed hands the pre­vi­ous week in 19,834 deals.

How­ever, the Fi­nan­cial Ser­vices In­dus­try led the ac­tiv­ity chart with 1.735 bil­lion shares val­ued at N19.044 bil­lion traded in 14,626 deals; thus con­tribut­ing 78.45 per cent and 62.16 per cent to the to­tal eq­uity turnover vol­ume and value re­spec­tively. The Con­glom­er­ates In­dus­try fol­lowed with 165.396 mil­lion shares worth N454.240 mil­lion in 1,400 deals. The third place was oc­cu­pied by Con­sumer Goods In­dus­try with a turnover of 135.802 mil­lion shares worth N6.681 bil­lion in 4,143 deals.

Trad­ing in the top three eq­ui­ties namely – United Bank for Africa Plc, FBN Hold­ings Plc and Ac­cess Bank Plc, ac­counted for 798.334 mil­lion shares worth N7.165 bil­lion in 5,855 deals.

Also traded dur­ing the week were a to­tal of 1.732 mil­lion units of Ex­change Traded Prod­ucts (ETPs) val­ued at N13.711 mil­lion ex­e­cuted in 19 deals com­pared with a to­tal of 40 units val­ued at N493.60 trans­acted two weeks ago in four deals.

Also, a to­tal of 750 units of Fed­eral Gov­ern­ment Bonds val­ued at N695,229.29 were traded last week in eight deals, com­pared with a to­tal of 13,465 units val­ued at N14.486 mil­lion trans­acted the pre­vi­ous week in 10 deals.

Price Gain­ers and Losers

The price move­ment chart showed 51 eq­ui­ties ap­pre­ci­ated higher than 36 eq­ui­ties of the pre­vi­ous week, while 23 eq­ui­ties de­pre­ci­ated in price, lower than 33 eq­ui­ties of the pre­vi­ous week. Conoil Plc led the price gain­ers with 21.4 per cent, trailed by Presco Plc with 20 per cent. Dan­gote Sugar Re­fin­ery Plc ap­pre­ci­ated by 19.3per cent just as May & Baker Nige­ria Plc chalked up 15.7 per cent. Stanbi IBTC Hold­ings Plc gar­nered 15.5 per cent just as Okomu Oil Palm Plc closed 15.3 per cent higher.

Other top price gain­ers in­clude: Fid­son Health­care (14.9 per cent); Ecobank Transcor­po­ra­tion In­cor­po­rated (13.3 per cent); C& I Leas­ing Plc (13.1 per cent) and Zenith Bank Plc (12.8 per cent).

Con­versely, Cad­bury Nige­ria Plc led the price losers with 18.1 per cent, fol­lowed by Mori­son In­dus­tries Plc with 17.5 per cent. Live­stock Feeds Plc and Neimeth In­ter­na­tional Phar­ma­ceu­ti­cals Plc shed 13.3 per cent and 13 per cent in that or­der. UACN Prop­erty Devel­op­ment Com­pany Plc and Unity Bank Plc went down by 8.9 per cent and 8.5 per cent re­spec­tively.

Other top price losers were: AIICO In­sur­ance Plc (8.3 per cent); Red Star Express Plc (7.4 per cent); Chel­larams Plc (4.9 per cent) and Ce­ment Com­pany of North­ern Nige­ria Plc (4.9 per cent).

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