12 January 2013

Nigeria: NSE Extends Gains By 2.33 Percent in the Week

Lagos — Trading activities on the floor of the Nigerian Stock Exchange (NSE) extending the weakly gains for the second period in a row despite increased market price volatility witnessed during the weak as profit taking engaged in profiteering.

Stocks extend bargain trend on Monday, extending gains by 1.57 per cent to open the week on positive note as bargain hunters sustained active postures. Also, the key benchmark indices extend 2 days gaining streak on Tuesday as market closed with moderate gains by 0.36 per cent on the back of growing in speculative activities.

However, market succumbed to speculative pressure as the key benchmark indices pulled back on Wednesday and Thursday by 0.46 and 0.90 per cent respectively on the back strong profit-taking tendency.

Notwithstanding, equities sustained healthy breadth on Friday as market traded above the line on the back of renewed bargain hunting throughout the session to end the week with aggregate gain of 2.33 per cent.

In the same vein, a turnover of 2.160 million shares worth N16.998 billion in 31,241 deals was traded this week in contrast to a total of 972.737million shares valued at N8.509 billion that exchanged hands last week in 13,745 deals.

The Financial Services sector was the most active during the week (measured by turnover volume) with 1.686 billion shares worth N12.055billion exchanged hands by investors in 19,947 deals.

Volume in the sector was largely driven by activity in the shares of U B A Plc, Fidelity Bank Plc, Unity Bank Plc, and Zenith Bank Plc. Trading in the shares of the four Banks accounted for 807.493 million shares, representing 48.00 per cent and 37.39 per cent of the sector 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 195.656 million shares valued at N302.207million in 960 deals.

The Consumer Goods sector (measured by turnover volume) was third with 93.297 million shares valued at N3.121 billion traded in 4,892 deals. The top three sectors accounted for 1.975 billion shares valued at N15.478billion traded in 25,799 deals, thus accounting for 91.00 per cent, 91.06 per cent and 83.00 per cent, of the volume, value and number of deals respectively.

Also traded during the week was 413 units of NewGold Exchange Traded Funds (ETFs) valued at N1.042million exchanged hands in 5 deals in contrast to a total of 438 units valued at N1.108 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.

The NSE All-Share Index appreciated by 2.33 per cent to close at 29,202.01. Also, market capitalization of the listed equities appreciated by 2.39 per cent to close at N9.340 trillion.

All the sectorial indices appreciated: the Bloomberg NSE 30, Bloomberg NSE Consumer Goods, Bloomberg NSE Banking, Bloomberg NSE Insurance, Bloomberg NSE Oil/Gas index and NSE Lotus II appreciated by 2.40 per cent, 1.95 per cent, 4.09 per cent, 2.73 per cent, 6.13 per cent and 1.92 per cent respectively.

A review of the equity price movements indicated that 52 equities gained while 20 equities recorded price declines and prices of 123 equities remained constant. When compared with the preceding week, 51 equities gained while 12 equities recorded price declines and prices of 132 equities remained constant.

On the gainers chart, Guinness Nigeria Plc led with N17.00 kobo or 6.23 per cent , Nestle Nigeria Plc followed with N14.90 kobo or 2.13 per cent, Total Nigeria Plc with N11.23 kobo or 9.31 per cent, Okomu Oil Palm Plc with N4.38 kobo or 9.82 per cent, Lafarge Wapco Plc with N3.35 kobo or 6.09 per cent, 7-Up Bottling Company Plc with N3.00 kobo or 7.14 per cent, Forte Oil Plc with N1.72 kobo or 21.21 per cent, Ashaka Cement Plc with N1.59 kobo or 8.65 per cent, UBA Plc with N1.36 kobo or 29.82 per cent, and Nigerian Breweries Plc with N1.35 kobo or 0.91 per cen.

On the losers chart, MRS Oil Nigeria Plc led with N1.18 kobo or 4.97 per cent, Unilever Nigeria Plc with N0.75 kobo or 1.59 per cent, Presco Plc with N0.72 kobo or 3.47 per cent, Morison Industries Plc with N0.31 kobo 9.39 per cent, DN Meyer Plc with N0.29 kobo or 18.71 per cent, Pharma-Deko Plc with N0.23 kobo or 9.31 per cent, e-Tranzact International Plc with N0.19 kobo or 4.95 per cent, John Holt Plc with N0.15 kobo or 4.89 per cent, NPF Microfinance Bank Plc with N0.14 kobo or11.86 per cent and University Press Plc with N0.13 kobo or 2.89 per cen.

However, during the week a total quantity of 4 billion ordinary shares of 50k each at N1.16 kobo of UBA Capital Plc and a total of 1 billion ordinary shares of 50k each at N1.59 kobo of Africa Prudential Registrars Plc were admitted on the daily official list of the exchange. This followed the approval by the quotations committee of management of the NSE, of the scheme of arrangement for the restructuring of United Bank for Africa.

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