5 January 2013

Nigeria: Stock Market Starts Year On Buoyant Trading, Capitalisation Hits N9 Trillion

Lagos — Trading activities on the Nigerian Stock Exchange (NSE) open the first week of the year on strong buoyant as market capitalization of 187 first-tier equity hits N9 trillion.

Further analysis revealed growing anticipatory influence along with strong impact of January effect as market witnessed significant increase in market activities and patronage amid impressive turnover.

The market capitalisation during the first week trading of the year recorded an impressive performance to hit N9 trillion.

The NSE All Share Index which measure Nigerian stocks experienced continued bargain trend on Monday, extending gains by 0.76 per cent to open the week on positive note as bargain hunters maintained active positions.

Also, the key benchmark indices extend 3-days gaining streak on Wednesday as market surged by 1.50 per cent on the back of active value investing.

However, market succumbed to pressure of large capped stocks in the building material sub-sector despite the healthy breadth to fall by 0.21 per cent on Thursday.

In the same vein, equities sustained healthy breadth on Friday as market traded above the line amid low volatility throughout the session to end the week with aggregate gain of 2.41 per cent.

However, a turnover of 972.737 million shares worth N8.509 billion in 13,745 deals was recorded this week in contrast to a total of 571.077 million shares valued at N5.246 that exchanged hands last week in 7,579 deals.

The Financial Services sector was the most active during the week (measured by turnover volume) with 654.080 million shares worth N5.765 billion exchanged hands by investors in 8,625 deals.

Volume in the sector was largely driven by activity in the shares of Zenith Bank Plc, First City Monument Bank Plc, Fidelity Bank Plc and FBN Holdings Plc. Trading in the shares of the four Banks accounted for 308.139 million shares, representing 47.11 per cent and 31.68 per 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 166.455 million shares valued at N174.680 million in 458 deals.

The Consumers Goods sector (measured by turnover volume) was third with 61.541 million shares valued at N1.731 billion traded in 2,261 deals. The top three sectors accounted for 883.808 million shares valued at N7.723 billion traded in 11,457 deals, thus accounting for 90.86 per cent, 90.76 per cent and 83.35 per cent, of the volume, value and number of deals respectively.

Also traded during the week were 438 units of NewGold Exchange Traded Funds (ETFs) valued at N1.108 million exchanged hands in 4 deals in contrast to a total of 213 units valued at N539.090 million transacted last week in 2 deals.

The NSE All-Share Index appreciated by 2.41 per cent to close at 28,538.06. Also, market capitalization of the listed equities appreciated by 2.41 per cent to close at N9.121 trillion.

All but one of the sectorial indices appreciated: the Bloomberg NSE 30, Bloomberg NSE Consumer Goods, Bloomberg NSE Banking, Bloomberg NSE Insurance, and Bloomberg NSE Oil/Gas index appreciated by 2.61 per cent, 1.54 per cent, 8.31 per cent, 3.56 per cent and 0.84 per cent respectively. However, NSE Lotus II depreciated by 1.06 per cent.

A review of the equity price movements indicated that 51 equities gained while 12 equities recorded price declines and prices of 132 equities remained constant. When compared with the preceding week, 31 equities gained while 21 equities recorded price declines and prices of 143 equities remained constant.

During the week, Presco Plc led the gainers chart with N4.32 kobo or 26.34 per cent, Nigerian Breweries Plc with N4.06 kobo or 2.80 per cent, Okomu Oil Palm Plc with N2.73 kobo or 6.52 per cent, Guaranty Trust Bank Plc with N2.15 kobo or 9.35 per cent, FBN Holdings Plc with N1.36 kobo or 8.71 per cent, First City Monument Bank Plc with N1.25 kobo or 36.23 per cent, Zenith Bank Plc with N1.16 kobo or 6.23 per cent, Nestle Nigeria Plc with N1.10 kobo or 0.16 per cent, Guinness Nigeria Plc with N0.88 kobo or 0.32 per cent and Skye Bank Plc with N0.87 kobo or 20.33 per cent.

On the losers chart Lafarge Wapco Plc led with N4.40 kobo or 7.41 per cent, Dangote Cement Plc with N3.10 kobo or 2.42 per cent, PZ Cussons Nigeria Plc with N0.44 kobo or 1.57 per cent, John Holt Plc with N0.33 kobo or 9.71 per cent, Morison Industries Plc with N0.17 kobo or 4.90 per cent, Pharma-Deko Plc with N0.13 kobo or 5.00 per cent, National Salt Company Nigeria Plc with N0.10 kobo or 1.23 per cent, Cutix Plc with N0.07 kobo or 4.58 per cent, Jos International Breweries Plc with N0.07 kobo or 4.58 per cent and Portland Paints & Products Nigeria Plc with N0.06 kobo or 1.44 per cent.

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