Leadership (Abuja)

Nigeria: Stock Market Records 1.69 Percent High

The Nigerian Stock Market at the weekend closed in the green zone as investors take position contrary to speculations book there would be a lull in the market as investors retire for the yuletide festivities.

Market watchers attributed the positive trajectory to investors' increasing appetite in most blue chips following twin expectations that market making process and the Federal Government's debt relief and tax relief would render the market bullish.

They added that investors' position during the three days the stock market opened due to the public holidays to celebrate the Christmas and Boxing Day was a pointer that the market might close the year northwards, signaling a positive sign for 2013 financial year.

Consequently, the NSE All-Share Index appreciated by 1.69% to close at 27,866.5. Also, Market Capitalisation of the listed equities appreciated by 1.73% to close at N8.907 trillion.

All but one of the sectorial indices appreciated: the Bloomberg NSE 30, Bloomberg NSE Consumer Goods, Bloomberg NSE Banking, Bloomberg NSE Insurance, and NSE Lotus II appreciated by 1.41per cent (+43.37per cent YTD), 0.83per cent (+41.28 YTD), 0.41 per cent (+21.19per cent YTD), 3.38per cent (-17.35 per cent YTD) and 1.75per cent (44.41per cent YTD) respectively. However, the Bloomberg NSE Oil/Gas index depreciated by 0.41per cent (-30.68per cent YTD).

A review of the equity price movements indicated that thirty-one (31) equities gained while twenty-one (21) equities recorded price declines and prices of one hundred and forty-three (143) equities remained constant. When compared with the preceding week, forty (40) equities gained while thirty -five (35) equities recorded price declines and prices of one hundred and twenty (120) equities remained constant.

Further review of the activities showed that a turnover of 571.077 million shares worth N5.246 billion in 7,579 deals was recorded during the week in contrast to a total of 1.293 billion shares valued at N13.725 that exchanged hands the preceding week in 20,499 deals.

The Financial Services sector was the most active during the week (measured by turnover volume) with 387.860 million shares worth N3.163 billion exchanging hands in 4,454 deals.

Volume in the sector was largely driven by activity in the shares of UBA Plc, Zenith Bank Plc, FBN Holdings Plc and First City Monument Bank Plc.

Trading in the shares of the four banks accounted for 202.626 million shares, representing 52.24per cent and 35.48per cent of the sector turnover and total turnover traded during the week respectively.

The Conglomerates sector boosted by activity in the shares of Transnational Corporation of Nigeria Plc followed on the week's activity chart with a turnover of 94.154 million shares valued at N107.592 million in 271 deals.

The Consumers Goods sector (measured by turnover volume) was third with 35.693 million shares valued at N1.494 billion traded in 1,578 deals. The top three sectors accounted for 517.708 million shares valued at N4.765 billion traded in 6,303 deals, thus accounting for 83.16per cent 90.65per cent and 90.82per cent of the volume, value and number of deals respectively.

Also traded during the week were 213 units of NewGold Exchange Traded Funds (ETFs) valued at N539.090 million exchanged hands in 2 deals in contrast to a total of 638 units valued at N1.636 million transacted last week in 4 deals. There were no transactions through the stock market in the FGN Bonds, State/Local Government Bonds and Corporate Bonds/Debentures sectors.

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