By OLUSHOLA BELLO, Lagos
Investors on the Nigerian Stock Exchange (NSE), last week traded 2.518 billion shares valued at N114.117 billion in 23,546 deals.
LEADERSHIP reports that the volume improved by 13.91 per cent compared to 2.211 billion shares worth N30.636 billion traded in 26,287 deals, traded the previous week.
An analysis of the activity chart indicated Dangote Cement, Access Bank and Zenith International Bank accounted for 833.966 million shares worth N95.969 billion in 3,203 deals, contributing 33.12 per cent and 84.10 per cent to the total equity turnover volume and value respectively.
Also, the bullish streak on the Nigerian bourse persisted for the fourth consecutive week, with the NSE ASI advancing further by 560.44 points or 1.52 per cent to at 37,425.15 points for last week, equating to Year-to-Date returns of 39.26 per cent. Also, investors accumulated N194 billion as market capitalisation advanced to N12.899 trillion
Analysts attributed the uptrend to renewed interest in Consumer Goods companies and investors’ reaction in positive first half, 2017 earnings.
Sector performance was mixed, although positively skewed, as three of five indices trended northward. The Consumer Goods index led sector gainers, up 4.9 per cent week-on-week due to appreciation in Unilever and Nigerian Breweries while buy sentiment towards NEM Insurance and Mansard Insurance nudged the Insurance index 2.8 per cent upwards. Similarly, the Industrial Goods index gained 0.1 per cent on account of upticks in Dangote Cement and CCNN. On the flip side, the Oil & Gas and Banking indices declined 3.05 per cent and 1.6 per cent due to depreciation in Mobil and profit-taking in Guaranty Trust Bank respectively.
Market breadth remained positive, with 35 gainers versus 28 losers. The best performing stocks were CI Leasing, Dangote Sugar and Linkage Assurance, while Morison, Red Star Express and Cutix were the worst performers.
Outlook For This Week
Analysts at Cordros Capital Limited said that activity in the market has been driven by the expectation of earnings releases across sectors, saying, “With the earnings season gradually coming to an end, we believe market performance will be largely mixed and driven by developments in the local economy.”
According to them, “Overall, we expect a bullish performance next week, as investors eagerly await tier one banks’ earnings, all of whom will be accompanied with interim dividend declaration.”
While analysts at Afrinvest Limited added that, “Although valuation multiples have increased since the macro-themed rally started in April, that does not imply the market is overvalued and we remain convinced there are opportunities for investors to key into. Thus, even as the earnings season draws to a close, we expect the broader index to sustain the current momentum to deliver a positive return in the last five months of the year, albeit moderate in the single digit range.”