30 April 2018

Nigeria: Financial Stocks Contribute 75% to NSE's Turnover

The financial services industry dominated in volume terms at the end of last week's transactions on the floor of the Nigerian Stock Exchange (NSE), leading the activity chart with 1.360 billion shares valued at N14.642 billion traded in 12,118 deals, thus contributing 74.51 per cent to the total equity turnover.

Following the financial industry was the consumer goods sectors with 124.816 million shares worth N6.910 billion in 3,709 deals.

The oil and gas industry ranked third with a turnover of 112.479 million shares worth N1.389 billion in 3,429 deals.

Trading in top three equities- Law Union And Rock Insurance Plc, FBN Holdings Plc, and Zenith International Bank Plc (measured by volume) accounted for 581.018 million shares worth N7.098 billion in 4,283 deals, contributing 31.83 per cent to the total equity turnover.

Also, the NSE All-Share Index and market capitalisation appreciated by 1.05 and 1.34 per cent to close the week at 41,244.89 and N14.940trillion respectively.

Similarly, all other indices finished higher with the exception of NSE Premium, NSE AseM, NSE Insurance, and NSE Industrial Goods indices that depreciated by 0.92 per cent, 0.82 per cent, 1.57 per cent, and 4.89 per cent respectively.

Consequently, a turnover of 1.825 billion shares worth N24.653billion were recorded in 23,148 deals by investors on the floor of the Exchange in contrast to a total of 3.008 billion units valued at N30.296billion that changed hands in 24,036 deals during the preceding week.

Analysts expressed optimism that the market would record some reasonable level of recovery as Q1 earnings continue to hit the market.

Specifically, analysts at Investdata Consulting Limited, said: "Even so, value investors continue to position for the short and long-term on the strength of company fundamentals.

"However, we would like to reiterate that investors should not panic but go for equities with intrinsic value, especially during this season when dividend payment is ongoing and Q1 results are expected in the market arena.

"We advise investors to allow numbers guide their decisions while repositioning in any stock, especially now that stock prices remain volatile amidst improving company, economic and market fundamentals. It is time to combine fundamentals and technical tools to take decision by knowing the support and resistant level to reposition or exit any position."

Further breakdown of last week's trading showed that a total of 56,260 units of Exchange Traded Products (ETPs) valued at N376,387.48 executed in six deals were recorded during the week, compared with the 177,144 units valued at N2.809 million transacted last week in six deals.

A total of 725 units of Federal Government Bonds valued at N660,984.55 were traded this week in 10 deals against 13,735 units valued at N14.128 million transacted last week in 16 deals.

About 33 equities appreciated in price during the week, lower than 36 in the previous week, while 41 depreciated, higher than 33 equities of the previous week. Also, 95 equities remained unchanged lower than 100 equities recorded in the preceding week.

An additional volume of 1,476,142,418 units of Flour Mills of Nigeria Plc was admitted to the daily official list of the Exchange on April 26.

These additional shares arose from the Rights Issue of 1,476,142,418 ordinary shares of 50 kobo each at N27 per share on the basis of nine new ordinary shares for every 16 ordinary shares held as at December 8, 2017.

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