Nigerian equities closed weekend upbeat ahead of other major global stock markets with increased demand for Nigerian shares fuelling a four-day rally that left investors with net capital gains of N371 billion.
Nigerian sovereign equities index closed above returns by several tracked global advanced and emerging stock indices.The global stock market outlook was positive during the week as investors weighed more heavily on global bull points including United States’s $1.2 trillion infrastructure spending, Europe’s good corporate earnings and global inflation data.
The All Share Index (ASI)- the value-based index that tracks all share prices listed on the Nigerian Exchange (NGX) Limited; posted average return of 1.83 percent; equivalent to net capital gain of N371 billion
Global stocks also showed a generally positive performance at the weekend. In United States, the Dow Jones Industrial Average rose by 0.8 per cent while the S & P inched up by 0.5 percent. United Kingdom’s FTSE 100 Index appreciated by 1.3 percent while the larger STOXX Europe trailed by 1.2 per cent. In Asian, Japan’s Nikkei 225 rose by 0.6 percent while china’s SSE rallied by 1.7 per cent.
The ASI rose from the week’s opening index of 38,810.75 points to close weekend at 39,522.34 points, representing average return of 1.83 per cent. The week’s rally nudged the gains by Nigerian equities so far this month to 2.53 per cent. This also moderated the negative average year-to-date return to -1.86 per cent.
Aggregate market value of all quoted equities on the NGX rose from the week’s opening value of N20.221 trillion to lose weekend at N20.592 trillion, an increase of N371 billion or 1.83 per cent.
The rally at the market was driven by investors’ appetite for banking oil and gas and consumer goods stocks with the banking sector index leading the rally with average return of 0.49 percent. The NGX Oil and Gas Index posted average gain of 0.43 per cent while the NGX Consumer Goods Index appreciated by 0.30 percent.
The momentum of activities also improved considerably with a total turnover of 1.61 billion shares worth N12.59 billion in 18,622 deals last week compared with a total of 989.593 million shares valued at N8.183 billion traded in 19,617 deals two weeks ago.
The bank-led financial services industry led the activity chart with 584.793 million shares valued at N3.728 billion in 8,658 deals; thus contributing 36.32 percent and 29.62 percent of the total equity turnover volume and value. The consumer goods industry followed with 525.860 million shares worth N3.655 billion in 3,553 deals while natural resources industry placed third with a turnover of 250.928 million shares worth N1.376 billion in 72 deals.
Industrial and manufacturing stocks were the most active stocks with Honeywell Flour Mill Plc, BOC Gases Plc and Flour Mills Nigeria Plc emerging the three most active stocks. The three stocks accounted for 724.067 million shares worth N 3.909 billion in 1,061 deals, contributing 44.97 percent and 31.06 percent of the total equity turnover volume and value.
Also, a total of 28,938 units of Exchange Traded Products valued at N949, 074 were traded in 13 deals compared with a total of 17,550 units valued at N34.012 million traded in 36 deals two weeks ago.
At the bonds market, a total of 139,062 bond units valued at N139.702 million were traded in 19 deals compared with a total of 702,021 units valued at N709.343 million traded in 17 deals penultimate week.There were 29 gainers and losers each during the week as against 23 gainers and 36 losers recorded in the previous week. Honeywell Flour Mill recorded the highest gain of 28.13 per cent to close at N2.05 per share Juli recorded the highest loss of 18.02 percent to lose at 91 kobo per share.
Analysts were cautious on the outlook at the stock market with shares expected to trade within the mix of profit-taking and bargain-hunting.
Analysts at Cordros Securities said they expected investors to be focused on the bond auction scheduled to hold on Wednesday as they keep an eye on the movement of yields in the fixed income market.
“As a result, we envisage cautious trading amid intermittent profit-taking. Notwithstanding, we advise investors to take positions in only fundamentally justified stocks as the unimpressive macro story remains a significant headwind for corporate earnings,” Cordros Securities stated.
Analysts at Afrinvest Securities said they anticipated “a mix of profit taking and bargain hunting activities as the first half earnings season winds down”.
– The Nation