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Stock Market Ends Week Bullish, Rises By 1.02%

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In what was a three-day trading week, occasioned by a two day national public holiday, the Nigerian stock market trended northward amidst renewed demand.

Consequently, the Nigerian Stock Exchange (NSE)’s All Share Index (ASI) and market capitalisation, increased week-on-week by 1.02 per cent each to close at 27,858.48 points and N9.570 trillion respectively. The performance trimmed the year-to-date loss to 2.74 per cent.

The upturn was supported strongly by value appreciation recorded in some capitalised stocks among which are Dangote Cement, Nestle, Total, Conoil and Oando.

Gauges of non-financial stocks all closed in the green. The Consumer Goods and Industrial Goods indices appreciated by 2.30 per cent and 1.03 per cent respectively. Similarly, the Oil and Gas index closed in green with 0.99 per cent growth. On the other hand however, the Insurance and Banking indices depreciated by 1.04 per cent and 0.92 per cent respectively.

Weekly Performance Summary

Gains were recorded in all sessions of the week, extending the market gaining streak to the sixth consecutive day.

Due to the short trading week, three trading sessions on account of two days of public holidays, the market breadth were negative, with 33 gainers versus 26 losers compared to 24 gainers against 37 losers the preceding week.

The best performing stocks for the week was Conoil with a gain of 33.84 per cent to close at N31.84 per share. Unilever followed with a gain of 14.23 per cent to close at N46, while Africa Prudential advanced by 13.71 per cent to close at N2.82 per share.

While Cutix went up by 5.59 per cent to close at N1.70 and International Breweries rose by 5.26 per cent to close at N20 per share.

On the other hand, Neimeth led the laggards’ table by 8.47 per cent to close at N1.08 per share. Aiico Insurance trailed with a loss of 7.46 per cent to close at 62 kobo, while Transcorp declined by 7.14 per cent to close at N1.04 per share.

Also, UBA declined by 6.87 per cent to close at N4.20, while FCMB shed by 6.54 per cent to close at N1 per share.

Also, the total volume traded decreased by 48.31 per cent to 611.53 million shares, worth N5.50 billion and traded in 9,650 deals, compared to the 1.18 billion shares, valued at N10.30 billion that exchanged hands in 16,522 deals last week.

Banking stocks dominated market activities by volume, as FCMB, FBN Holdings and Guaranty Trust Bank traded 103.4 million, 81.2 million and 57.41 million shares respectively, collectively accounted for 39.57 per cent of total volume traded during the week, while Guaranty Trust Bank, Nigerian Breweries and Zenith Bank trade shares worth of N1.55 billion, N875.36 million and N427.40 million, respectively, which accounted for 51.86 per cent of total value of transactions.

Outlook

Analysts have said that market performance for this week will be determined by the outcome of the Nigeria’s Monetary Policy Committee (MPC), which will be meeting on Monday and Tuesday.

According to them, the Committee would either choose to raise rates once again, doubling down on its decision in July or loosen, following a slew of disappointing economic performance data released from the statistics office recently.

While, analysts from Cordros Capital said, “With no major positive catalyst driving last week’s upbeat performance, we expect sentiments to reverse this week.”

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