22 January 2018

Nigeria: Stock Market Indices Defy Profit Taking, Up By 5.1%

Expectations of improved corporate performance have continued to buoy transactions on the floor of the Nigerian Stock Exchange, as market capitalisation closed the week with 5.1 per cent growth.

Specifically, at the close of trading last week, the market capitalisation of listed equities rose by N786 billion to N16.154 trillion from N15.368 trillion recorded as at Friday, January 12, 2018.

Also, the All-share index rose by 2,193 points from 42,898.90 to 45,092.83, as all other indices finished higher during the week with the exception of the NSE Consumer Goods Index that depreciated by 1.31 per cent, while the NSE ASeM Index closed flat.

Analysts attributed the rise in indices, which defied profit taking by investors to repositioning ahead of earnings' season.

"As the bull rampage continues due to smart money repositioning ahead of earnings' season, retail investors and traders should go for value and growth stocks that can support their portfolios when the inevitable wave of correction hits the market, given that the 2017 financial year dividend declaration kicks off very soon," an analyst said.

Last week, a turnover of 5.011 billion shares worth N45.816 billion was recorded in 44,569 deals by investors on the floor of the Exchange in contrast to 5.021 billion shares valued at N68.974 billion that changed hands last week in 41,542 deals during the preceding week.

The financial services industry (measured by volume) led the activity chart with 3.672 billion shares valued at N29.946 billion, traded in 28,608 deals; thus contributing 73.29 per cent and 65.36 per cent to the total equity turnover volume and value respectively.

The conglomerates industry followed with 864.180 million shares worth N2.440 billion in 2,561 deals.

The third place was occupied by consumer goods industry with a turnover of 210.994 million shares worth N7.731billion in 7,336 deals.

Trading in the top three equities namely - Transnational Corporation of Nigeria Plc, Diamond Bank Plc and FCMB Group Plc (measured by volume) accounted for 1.751 billion shares worth N5.023 billion in 6,131 deals, contributing 34.93 per cent and 10.96 per cent to the total equity turnover volume and value respectively.

Also traded during the week were a total of 1.947 million units of Exchange Traded Products (ETPs) valued at N105.567 million executed in 15 deals, compared with a total of 777,535 units valued at N7.689 million that was transacted last week in 15 deals.

A total of 4,437 units of Federal Government Bonds valued at N4.260 million were traded this week in 9 deals, compared with a total of 6,301 units valued at N6.298 million transacted last week in 12 deals.

40 equities appreciated in price during the week, lower than 66 of the previous week. 32 equities depreciated in price, higher than seven equities of the previous week, while 100 equities remained unchanged higher than 99 equities recorded in the preceding week.


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