Stock cherry-picking to continue this week as more Q3 earnings flood market
STOCK CHER RYPICKING on the Nigerian Stock Exchange is expected to continue this week as investors seek out counters with strong fundamentals on earnings and profit growth from third quarter results, which are expected to flow into the market in the course of the week.
Positive Q3 performances in top-tier banks last week already drove prices and the banking index 1.04 percent higher, contributing significantly to the positive close of the overall market in the week ended 19th October 2018.
As a result, the NSE AllShare Index and market capitalization for the second consecutive week appreciated by 1.19 percent to close the week at 32,841.69 and N11.990 trillion respectively.
The NSE insurance index was similarly had a growth of 1.97 percent as Prestige and AXA Mansard Insurance companies topped the week’s gainers chart with a 12 and 10 percent increase in their share price respectively to close at 56 kobo and N1.98 per share.
The NSE’s weekly report indicated activity chart significantly improved also as a total turnover of 1.380 billion shares worth N15.149 billion in 13,478 deals were traded last week by investors on the floor of the Exchange in contrast to a total of 915.856 million shares valued at N9.835 billion that exchanged hands last week in 14,033 deals.
The financial services industry in volume terms led the activity chart with 1.237 billion shares valued at N9.725 billion traded in 7,404 deals contributing 89.62 percent and 64.19 percent to the total equity turnover volume and value respectively.
The consumer goods industry followed with 62.505 million shares worth N1.689 billion in 2,560 deals.
The third place was oil and gas industry with a turnover of 26.341 million shares worth 2.447 billion in 1,213 deals.
The top three equities for the week were Sunu Assurances Nigeria Plc., Zenith Bank Plc. and Guaranty Trust Bank Plc., (on account of profit growth posted in Q3 report). The stocks accounted for 772.902 million shares worth N7.841 billion in 2,050 deals, contributing 55.99 percent and 51.76 percent to the total equity turnover volume and value respectively.
The NSE however noted that 20 equities appreciated in price during the week, lower than 29 in the previous week, 42 equities depreciated in price, higher than 40 of the previous week, while 107 equities remained unchanged higher than 100 equities recorded in the preceding week.