Nigerian equities rallied net capital gain of N104.7 billion last week to push the total net capital gains so far this year to N1.34 trillion.
Nigerian stocks overran a midweek profit-taking scare and sustained a two-day consecutive positive session to close weekend with average return of 0.69 per cent, representing net capital gains of N104.7 billion for the immediate past week.
The sustained rally nudged the average year-to-date return for equities to 10.34 per cent, equivalent to net capital gain of N1.34 trillion. The stock market has traded this year mostly on the positive side, after a steep decline and a negative average full-year return of -14.60 per cent for the 2019 trading year, equivalent to net capital depreciation of N1.71 trillion for the year. It had recorded negative average full-year return of -17.81 per cent in 2018.
The All Share Index (ASI)- the benchmark value index that tracks all share prices at the Nigerian Stock Exchange (NSE) rose from the week’s opening index of 29,415.39 points to close weekend at 29,618.52 points. Aggregate market value of all quoted equities also rose from its week’s opening value of N15.175 trillion to close at N15.256 trillion. The growth rate of market capitalisation was reduced by the weekend delisting of Continental Reinsurance. The ASI and market capitalisation of equities had opened 2020 at 26,842.07 and N12.958 trillion.
Total turnover stood at 2.09 billion shares worth N26.47 billion in 24,262 deals, compared with a total of 2.68 billion shares valued at N32.65 billion traded in 30,956 deals two weeks ago. Financial services sector led the activity chart with 1.117 billion shares valued at N13.693 billion traded in 13,739 deals; thus contributing 53.51 per cent and 51.73 per cent to the total equity turnover volume and value. The healthcare sector followed with 521.893 million shares worth N182.965 million in 420 deals. The conglomerates sector placed third with a turnover of 123.606 million shares worth N573.907 million in 1,164 deals.
The three most active stocks were Union Diagnostic & Clinical Services Plc, Access Bank Plc and Zenith Bank Plc, which accounted for 877.992 million shares worth N8.399 billion in 5,251 deals, contributing 42.06 per cent and 31.73 per cent of the total equity turnover volume and value.
Also, a total of 8,871 units of Exchange Traded Products valued at N36.909 million were traded in 20 deals compared with a total of 15,390 units valued at N13.095 million traded in 32 deals two weeks ago.
At the sovereign debt market, a total of 53,219 units of Federal Government bonds valued at N58.147 million were traded in 16 deals compared with a total of 64,840 units valued at N71.362 million exchanged in 30 deals penultimate week.
There were 21 gainers and 42 losers last week as against 51 gainers and 20 losers recorded in the previous week, underlining the fact that the positive overall market position was driven by gains recorded by large-cap stocks.
Forte Oil led the gainers, in percentage terms, with a gain of 21.89 per cent to close at N20.60. Beta Glass followed with a gain of 18.77 per cent to close at N63.90 while GlaxoSmithKline Consumer Nigeria rose by 13.21 per cent to close at N6 per share.
Consolidated Hallmark Insurance led the losers with a drop of 14.29 per cent to close at 36 kobo. NEM Insurance dropped by 13.66 per cent to close at N1.96 while BUA Cement declined by 12.2 per cent to close at N36 per share.
“Looking ahead, while we expect profit-taking to continue in the coming week, we still see significant legroom for a further rally as the elevated maturities from fixed income instruments hunt for investment vehicles. Nonetheless, we advise investors to cherry-pick fundamentally sound stocks,” Cordros Securities stated at the weekend.
Analysts at Afrinvest Securities said they expected “a positive market performance in the coming week, although there are opportunities for profit taking”.
Globally, quoted equities sustained a generally positive outlook across the advanced, frontier and emerging markets. United States’ benchmarks- S & P 500, NASDAQ and Dow Jones Industrial Average (DJIA) rose by 1.6 per cent, 1.9 per cent and 1.6 per cent.
United Kingdom’s FTSE All Share Index rose by 1.3 per cent. France’s CAC 40 Index appreciated by 1.1 per cent while Germany’s XETRA DAX Index posted a gain of 0.3 per cent. The MSCI EM Index, which tracks emerging markets, apprecietd by 0.6 per cent while the MSCI FM Index, which tracks frontier markets, posted a higher gain of 1.4 per cent.