9 February 2013

Nigeria: Equity Market Hits Highest in Over Four Years

Lagos — Transaction on the floor of the Nigerian Stock Exchange (NSE) has maintained its impressive performance as activities done during the week sustained upward trend.

The Index during the week reached its 4 years high of 33,460.14 basis points as activities on the bourse opened the week on Monday on a strong positive trend.

The market capitalization in the week appreciated by N267.43 billion to close at N10.65 trillion as against appreciation by N267.43 billion recorded last week to close at N10.37 trillion.

Consequentlt, the All-Share Index in the week under review appreciated by 2.78 per cent to close at 33,313.49 as against appreciation by 2.62 per cent recorded last week to close at 32,411.86.

Similarly, the market capitalization of 187 first-tier equities appreciated by N87.39 billion to close at N10.45 trillion.

At the close of trading on Monday, the NSE All-Share Index extends gain by 0.84 per cent to close at 32,685.03.

On Tuesday, investors continued to consolidate positions with increased commitment towards investment in equities as naira votes surged considerably on the back of active patronage witnessed across board.

The market capitalization appreciated by N121.36 billion to close at N10.57 trillion.

At the close of trading session, the NSE All-Share Index extends gain by 1.16 per cent to close at 33,064.37 as against uptrend by 0.84 per cent recorded in the previous session to close at 32,685.03.

After the strong rally witnessed on Tuesday, Nigerian markets continued to sustain the momentum trading on Wednesday as well. Strong buying activity across index heavyweights ensured that the markets closed well. The market capitalization appreciated by N126.62 billion to close at N10.70 trillion.

At the close of trading session, the NSE All-Share Index extends gain by 1.20 per cent to close at 33,460.14.

Differently on Thursday market traded downward as the key benchmark indices succumbed to last minute volatility, halting 7 days gaining streak despite positive breadth amid increased speculative tendency.

At the close of trading session, the NSE All-Share Index fell by 0.72 per cent to close at 33,219.20.

In the same vein, market capitalization depreciated by N77.08 billion to close at N10.62 trillion.

Subsequently, equities sustained healthy breadth on Friday as market traded above the line despite increased volatility to end the week with aggregate gain of 2.78 per cent.

During the week, a turnover of 3.572 billion shares worth N24.692 billion in 39,321 deals were transacted on the floor of the exchange in contrast to a total of 2.813 billion shares valued at N22.188 billion that exchanged hands last week in 33,123 deals.

The Financial Services sector sustained its dominance as the most active during the week, contributing 70.75 per cent, 66.16 per cent, 58.71 per cent, to the total equity turnover volume, value and number of trades respectively in 2.527 billion shares valued at N16.338 billion exchanged hands by investors in 23,085 deals.

Similarly, the Banking subsector of the Financial Services sector was the most active during the week (measured by turnover volume); with 1.780 billion shares worth N13.050 billion traded in 16,104 deals. Volume in the Banking subsector was largely driven by activities in the shares of Unity Bank Plc, Access Bank Plc, and UBA Plc. Trading in the shares of the three banks accounted for 800.442 million shares, representing 44.96 per cent, 31.68 per cent, and 22.41 per cent of the turnover volume recorded by the subsector, sector and total turnover for the week, respectively.

The Conglomerates sector followed with a total turnover volume of 473.147 million shares worth N1.051 billion in 2,341 deals. Volume in the sector was largely driven by the shares of Transnational Corporation of Nigeria Plc with a turnover volume of 465.210 million shares valued at N803.042 million in 1,826 deals.

Also traded during the week were 539 units of NewGold Exchange Traded Funds (ETFs) valued at N1.382 million exchanged hands in 4 deals in contrast to a total of 234 units valued at N595, 491 transacted last week in 5 deals.

A review of the equity price movements indicated that 73 equities gained while 18 equities recorded price declines and 106 equities remained constant. When compared with the preceding week, 55 equities gained while 27 equities recorded price declines and 115 equities remained constant.

Lafarge Wapco Plc led gainers chart with N6.20 kobo or 9.12 per cent, Guinness Nig Plc with N5.38 kobo or 1.84 per cent, Ashaka Cem Plc with N5.33 kobo or 25.75 per cent, Cadbury Nigeria Plc with N5.27 kobo or 15.68 per cent, Unilever Nigeria Plc with N4.93 kobo or 11.08 per cent, PZ Cussons Nigeria Plc with N4.81 kobo or 13.50 per cent, Cap Plc with N3.13 kobo or 10.23 per cent, UACN Plc with N2.90 kobo or 6.16 per cent, MRS Oil Nigeria Plc with N2.54 kobo or 10.21 per cent and International Breweries Plc with N2.49 kobo or 10.96 per cent.

On the losers chart, Nestle Nigeria Plc with N5.03 kobo or 0.61 per cent, Nigerian Brew. Plc with N1.50 kobo or 0.91 per cent, Flour Mills Nig. Plc with N0.91 kobo or 1.12 per cent, Dangote Cement Plc with N0.87 kobo or 0.60 per cent, Forte Oil Plc with N0.87 kobo or 4.96 per cent, Beta Glass Co Plc with N0.50 kobo or 5.00 per cent, Eterna Plc with N0.46 kobo or 9.94 per cent, Chellarams Plc with N0.28 kobo or 4.90 per cent, University Press Plc with N0.26 kobo or 5.45 per cent and John Holt Plc with N0.22 kobo or 13.58 per cent.

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