By Omobayo Azeez
- Market cap surpasses N13trn in value
- Zenith, Access, FBNH, pump up volume, value
It was a bumper harvest for investors at the Nigerian Stock Exchange last week as equities market rallied on the back of heavyweights such as BUA Cement, MTN Nigeria and Dangote Cement Plc.
Following the Bull Run of on the trading floor during the week, the market’s benchmark index soared significantly by 5.59 per cent as it gained 1,333.42 points to close at 25,204.75 basis points, and month-to-date (MtD) return more than doubled to 9.5 per cent, while the year-to-date loss moderated to -6.1 per cent.
Similarly, investors recorded a total of N695 billion profit on activities during the week, which jacked up market capitalisation to hit and surpass the N13 trillion mark by closing the week at N13.136 trillion, from the N12.441 trillion it closed the previous week.
According to analysts at Investdata Consulting Limited, the bull charge continued on positive reactions to corporate earnings and actions of highly capitalized stocks that declared dividends despite their mixed performances.
“The continued gain also followed investors positioning ahead of markdown dates of blue chip stocks, with many companies yet to release their 2019 full year and Q1 2020 financials expected to do so, since the grace period due to the Coronavirus pandemic expires on May 31,” the analysts noted in a report Friday.
Experts have also ascribed the current wave of profit-making at the NSE to the seemingly comforting signal from the international crude oil market where prices are recovering.
Traders also revealed that institutional investors’ participation on the Nigerian bourse increased as revealed by the money flow index.
On the market outlook, market dealers have maintained that risks remain on the horizon due to a combination of the increasing number of COVID-19 cases in Nigeria and weak economic conditions.
Therefore, they cautioned investors on their next move. “We continue to advise investors to trade cautiously and seek trading opportunities in only fundamentally justified stocks,” say analysts at Codros Securities Limited.
Official trading statistics obtained from the NSE show that performance across all sectors was positive for the week, reflecting the positive performance in the market.
Specifically, the industrial goods index advanced by 15.5 per cent to lead the return chart; followed by the banking index with 7.2 per cent; oil and gas with 4.9 per cent; insurance with 2 per cent gain; and consumer goods, ticking by 0.9 per cent.
A total turnover of 1.718 billion shares worth N18.849 billion in 26,367 deals were traded during the week by investors on the floor of the Exchange, in contrast to a total of 926.418 million shares valued at N9.768 billion that exchanged hands in the previously week in 20,910 deals.
The financial services industry, measured by volume, led the activity chart with 1.273 billion shares valued at N11.362 billion traded in 13,808 deals; thus contributing 74.08 per cent and 60.28 per cent to the total equity turnover volume and value respectively.
The industrial goods sector followed with 102.377 million shares worth N3.194 billion in 2,956 deals, while in third place was the healthcare sector, with a turnover of 99.620 million shares worth N493.348 million in 1,194 deals.
In terms of trade volume, trading in the top three equities namely Zenith Bank Plc, Access Bank and FBN Holdings Plc accounted for 673.104 million shares worth N6.803 billion in 5,927 deals, contributing 39.18 per cent and 36.09 per cent to the total equity turnover volume and value respectively.
A total of 7,251 units of exchange traded products (ETPs) valued at N42.007 million were traded during the week in 15 deals, compared with a total of 146,484 valued at N7.397 million transacted in the preceding week in 13 deals.
Similarly, investors staked N13.170 million on a total of 12,809 units of federal government bonds in 18 deals compared with a total of 7,878 valued at N9.070 million transacted previously in 12 deals.