Investors Stake N26bn on Stocks as Bulls Regain Control

Investors committed N25.791 billion in 1.816 billion shares in 39,265 deals last week, compared with the N58.733 billion staked on 4.509 billion shares in 47,140 deals the previous week.

Despite lower level of investment, the Nigerian Stock Exchange (NSE) All-Share Index (ASI) went up by 2.57 per cent to close at 34,136.82, following gains by Airtel Africa Plc, Dangote Cement Plc and BUA Cement Plc. Similarly, market capitalisation closed higher at N17.838 trillion.

As we enter the new week, some investors remain bullish on the market, seeing further growth.

“With the recent decision of the MPC to hold monetary policy parameters constant in furtherance of their growth objective, we expect alpha-seeking investors to continue rotating their portfolio towards equities amid attractive dividend yields on bellwether stocks.

“We expect market performance to be dominated by the bulls, as positioning by early birds in dividend-paying stocks ahead of full year (FY) 2020 dividend declarations should outweigh profit-taking activities. We reiterate the need for positioning in only fundamentally sound stocks as the weak macro environment remains a significant headwind for corporate earnings,” at Cordros Research said.

A look at the activity chart showed that the Financial Services Industry (measured by volume) led the activity chart with 1.274 billion shares valued at N14.710 billion traded in 18,392 deals, thus contributing 70.1 per cent and 57.04 per cent to the total equity turnover volume and value respectively.

The Conglomerates Industry followed with 217.170 million shares worth N231.809 million in 1,226 deals, while third place was occupied by the Consumer Goods Industry, with a turnover of 113.760 million shares worth N2.598 billion in 4,568 deals.

Trading in the top three equities namely Zenith Bank Plc, Transnational Corporation of Nigeria Plc and Access Bank Plc accounted for 649.529 million shares worth N8.104 billion in 6,395 deals, contributing 35.7 per cent and 31.4 per cent to the total equity turnover volume and value respectively.

Meanwhile, 27 equities appreciated in price during the week, higher than 21 equities in the previous week, just as 43 equities depreciated in price, lower than 55 equities in the previous week.

UPDC Real Estate Investment Trust led the price gainers with 32.5 per cent, trailed by Neimeth International Pharmaceuticals Plc with 12 per cent. NCR (Nigeria) Plc went up by 9.8 per cent. University Press Plc chalked up 9.5 per cent, while United Capital Plc garnered 8.1 per cent.

Coronation Insurance Plc gained 7.3 per cent, while FCMB Group Plc, Airtel Africa Plc and AXAMansard Insurance Plc chalked up 7.2 per cent, 7.0 per cent and 6.3 per cent in that order.

On the negative side, Japaul led with 11.1 per cent followed by Honeywell Flour Mills Plc with 10.8 per cent. Custodian Investment Plc shed 10 per cent, while Champion Breweries Plc lost 9.4 per cent. Trans-Nationwide Express Plc lost 9.3 per cent, just Linkagae Assurance Plc and Wema Bank Plc went down by 9.1 per cent apiece.