Nigerian equities hit their highest level in two years at the weekend as increased bargain-hunting for quoted shares sustained a bullish trend that had seen investors with N902 billion net capital gain in July. Investors recorded net capital gain of N194 billion last week as bargain-hunters overran a major profit-taking breather that started the week to sustain four consecutive positive trading sessions.
Major indices at the Nigerian Stock Exchange (NSE) showed increased momentum of activities and continuing investors’ appetite for quoted shares. Average week-on-week gain stood at 1.52 per cent last week, equivalent to net capital gain of N194 billion. The sustained rally over four trading sessions nudged the average year-to-date return to 39.26 per cent at the weekend.
Aggregate market value of all quoted equities on the Nigerian Stock Exchange (NSE) rose from the week’s opening value of N12.705 trillion to close the week at N12.899 trillion. The All Share Index (ASI)-the common value-based index that tracks share prices at the Exchange, also rose from its index on board of 36,864.71 points to reach a new high of 37,425.15 points at the weekend.
Investors traded a total 2.52 billion shares worth N114.12 billion in 23,546 deals during the week, compared to a total of 2.21 billion shares valued at N30.64 billion traded in 26,287 deals in the previous week. Financial services stocks accounted for 1.51 billion shares valued at N16.35 billion in 12,511 deals; representing 59.9 per cent and 14.3 per cent of the total equity turnover volume and value respectively. The industrial goods sector rode on the back of negotiated deals on Dangote Cement to record a turnover of 441.91 million shares worth N89.36 billion in 1,282 deals. The conglomerates sector placed third with a turnover of 184.61 million shares worth N701.67 million in 929 deals.
The three most active stocks were Dangote Cement, Access Bank and Zenith International Bank, which altogether accounted for 833.97 million shares worth N95.97 billion in 3,203 deals, contributing 33.1 per cent and 84.1 per cent of the total equity turnover volume and value respectively.
With 38 gainers to 28 losers, most sectoral indices at the Exchange also closed positive. The NSE 30 Index, which tracks the 30 most capitalised companies, recorded a week-on-week average return of 1.24 per cent. The NSE Consumer Goods Index recorded the highest average gain of 4.87 per cent. The NSE Insurance Index appreciated by 2.81 per cent while the NSE Industrial Goods Index inched up by 0.07 per cent. However, the influential NSE Banking Index depreciated by 1.64 per cent while the NSE Oil and Gas Index dipped by 3.05 per cent.
Low-priced stocks were ahead of the bullish run. C & I Leasing recorded the highest gain, in percentage terms, of 44.9 per cent to close at N1 per share. Dangote Sugar Refinery followed with a gain of 37.3 per cent to close at N14.91. Linkage Assurance rose by 27.1 per cent to 75 kobo. Nascon Allied Industries appreciated by 26.9 per cent to close at N12. Livestock Feeds rallied by 19.2 per cent to close at 93 kobo. Cadbury Nigeria rose by 12.9 per cent to N11.80 while Jaiz Bank gained 12.1 per cent to close at 74 kobo.
On the downside, Morison Industries led the losers with a drop of 16.9 per cent to close at N1.13. Red Star Express declined by 12.4 per cent to N4.38. Cutix lost 9.9 per cent to close at N2.19. University Press dropped by 9.3 per cent to N2.63. NPF Microfinance Bank dipped by 9.1 per cent to N1.20 while Mobil Oil Nigeria lost 8.3 per cent to close at N232 per share.
Also traded during the week were a total of 1.166 million units of Exchange Traded Products (ETPs) valued at N16.169 million in 17 deals compared with a total of 1.732 million units valued at N13.711 million traded in 19 deals two weeks ago.
In the sovereign bond market, a total of 5,850 units of Federal Government bonds valued at N5.702 million were traded in seven deals as against a total of 750 units valued at N0.695 million traded in eight deals in the previous week.
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