Nigerian Equities Sustain Rally With N137bn Gain

After netting N2.35 trillion in capital gains in November, Nigerian equities at the weekend closed with net capital gain of N137 billion, sustaining a positive outlook that has seen Nigerian stocks as one of the most globally competitive assets in recent period.

Benchmark indices at the Nigerian Stock Exchange (NSE) at the weekend showed average return of 0.72 per cent for the week, equivalent to net capital gains of about N137 billion. This nudged the average year-to-date return for equities to 30.91 per cent.

The All Share Index (ASI)- the common value-based index that tracks all share prices at the NSE, closed weekend at 35,137.99 points as against 34,885.51 points recorded as the opening index for the week. Aggregate market value of all quoted equities at the Exchange also rose from its week’s opening value of N18.228 trillion to close at N18.365 trillion.

With 22 advancers against 45 decliners, the positive overall market situation was driven largely by gains in the oil and gas and insurance sectors. The NSE Oil and Gas Index appreciated by 1.71 per cent while the NSE Insurance Index rose by 1.56 per cent. However, all other major indices closed negative. The NSE 30 Index, which tracks the 30 largest quoted companies, posted a negative return of -1.63 per cent. The influential NSE Banking Index dipped by -3.13 per cent. The NSE Consumer Goods Index depreciated by 2.78 per cent while the NSE Industrial Goods Index dropped by 2.21 per cent.

Total turnover stood at 1.675 billion shares worth N25.425 billion in 23,650 deals last week in contrast with a total of 1.816 billion shares valued at N25.791 billion traded in 31,665 deals penultimate week.

Banking stocks dominated the top activities chart, leading the financial services sector to a turnover of 1.206 billion shares valued at N12.064 billion in 13,534 deals; representing 72.0 per cent and 47.45 per cent of the total equity turnover volume and value respectively. The consumer goods sector followed with 102.368 million shares worth N3.616 billion in 3,511 deals while the natural resources sector placed third with a turnover of 86.626 million shares worth N17.492 million in 28 deals.

Three first tier banks-Access Bank Plc, FBN Holding Plc and Zenith Bank Plc were the most active, jointly accounting for 475.819 million shares worth N6.144 billion in 4,900 deals, representing 28.41 per cent and 24.16 per cent of the total equity turnover volume and value respectively.

At the Exchange Traded Products (ETPs) segment, a total of 543,655 units valued at N4.694 billion were traded last week in 36 deals compared with a total of 471,624 units valued at N4.224 billion traded in 88 deals two weeks ago.

At the bond segment, a total of 3,198 units valued at N3.898 million were traded in 10 deals compared with a total of 9,697 units valued at N12.173 million traded in eight deals two weeks ago.

Tripple Gee and Company led the advancers, in percentage terms, with a gain of 20 per cent to close at 66 kobo. Airtel Africa followed with a gain of 19.63 per cent to close at N640 while FTN Cocoa Processors placed third with a gain of 16 per cent to close at 29 kobo.

On the negative side, Northern Nigeria Flour Mills led the losers with a drop of 18.7 per cent to close at N6.26. Consolidated Hallmark Insurance followed with a drop of 16.13 per cent to close at 26 kobo while Royal Exchange declined by 15.38 per cent to close at 22 kobo per share.