Equities Market Extends Gains on Corporate Earnings Expectations
The positive performance recorded by the Nigerian bourse the previous week was sustained last week on the back of positive macroeconomic fundamentals and high expectations of improved corporate results.
Having appreciated by 0.72 per cent the previous week, the Nigerian Stock Exchange (NSE) All-Share Index (ASI) extended the growth, advancing by 0.68 per cent to close at 43,167.86 last week. Similarly, market capitalisation added N104 billion to close higher at N15.508 trillion.
All other indices finished higher during the week with the exception of the NSE Premium, NSE ASeM, NSE Banking and NSE Insurance Indices that depreciated by 0.25 per cent, 1.76 per cent, 1.08 per cent and 0.74 per cent respectively.
According to analysts at Cordros Capital Limited, “As investor sentiment remains buoyed by optimism around positive macroeconomic fundamentals, and expected positive fourth quarter 2017 corporate releases, our outlook for the equities market remains positive.”
The market opened for the week on a positive note following gains recorded by Dangote Cement Plc and other bellwether stocks. As a result, the NSE ASI rose 1.49 per cent to close at 43,513.93, while market capitalisation added N229 billion to close higher at N15.6 trillion. A total of 32 stocks appreciated compared with 25 stocks that depreciated. Although the top gainers’ were mainly low capitalised stocks, gains by Dangote Cement Plc, Seplat Petroleum Development Company Plc, Unilever Nigeria Plc, Total Nigeria Plc among others boosted the performance.
Caverton Offshore Support Group Plc led the price gainers with 9.9 per cent, trailed by Japaul Oil and Maritime Plc with 9.5 per cent. First Alumium Nigeria Plc chalked up 8.8 per cent, while Seplat garnered 8.5 per cent.
Other top price gainers included: Presco Plc (7.2 per cent); Consolidated Hallmark Insurance Plc (6.9 per cent); Fidelity Bank Plc (5.0 per cent); Beta Glass Plc, Unilever Nigeria Plc and Vitafoam Nigeria Plc (4.9 per cent apiece).
Conversely, Regency Alliance Insurance Plc led the price losers with 4.5 per cent, trailed by Learn Africa Plc with 4.9 per cent, just as UNIC Diversified Holdings Plc shed 4.4 per cent. Eterna Plc and Wema Bank Plc went down by 3.9 per cent and 3.5 per cent apiece.
A look at the sectoral performance of the market showed all the sectors closed bullish. The NSE Oil & Gas Index led with 4.8 per cent, followed by the NSE Industrial Goods Index that chalked up 2.2 per cent. The NSE Insurance Index went up 0.8 per cent, just as the NSE Banking Index and NSE Consumer Goods Index closed 0.4 per cent and 0.02 per cent higher.
The market rose further on Tuesday as investors’ positive sentiments sustained the bullish trading. The index appreciated 0.22 per cent to close at 43,609.77.
According to analysts at SCM Capital, they expect a mixed market mood at tomorrow’s (today) session, while earnings scorecard expectation still remains the dominant theme in shaping investors’ sentiment.”
Tuesday’s appreciation has lifted the year-to-date growth to 14 per cent. A look at the gainers’ table showed that Unilever Nigeria Plc led with 10.1 per cent, trailed by Caverton Offshore Support Plc with 9.8 per ent. Japaul Oil and Maritime Services Plc chalked up 8.7 per cent, while A.G Leventis Nigeria Plc went up by 7.0 per cent.
Consolidated Hallmark Insurance Plc maintained recent gaining streak, garnering 6.4 per cent. After suffering significant depreciation last month, CHI shares rebounded recently as investors reacted to assurance of more returns on their investments.
Meanwhile, Regency Insurance Plc led the price losers, shedding 9.1 per cent, trailed by Multiverse Plc with 7.4 per cent. Wema Bank Plc went down by 5.0 per cent, followed by UNIC Diversified Holdings Plc with 4.7 per cent decline. Vitafoam Nigeria Plc and Sterling Bank Plc lost 4.6 per cent and 4.5 per cent in that order.
The NSE Banking Index was the only loser yesterday following losses posted by GTBank Plc (-1.7 per cent), Access Bank (-2.2 per cent ) and Sterling Bank Plc.
However, the NSE Oil & Gas Index led with 1.4 per cent gain.
The NSE Consumer Goods Index rose by 0.9 per cent, just as the NSE Insurance Index improved 0.1 per cent. The Industrial Goods Index recorded a marginal increase of 0.01 per cent.
The bullish trend was halted on Wednesday as the NSE ASI depreciated by 1.51 per cent to close at 42,952.70. The depreciation recorded in the share prices of Dangote Cement, Transcorp, Access Bank, GTBank, and Nigerian Breweries were mainly responsible for the loss recorded in the index.
“Market performance across sectors was broadly bearish with renewed sell pressure amidst weakening investors’ sentiment. The bearish sentiment is likely to remain till company results are released. This is expected to boost market activity and investor sentiment in coming sessions,” some market operators said.
In terms of sectoral performance all indices trended southwards save for the NSE Insurance Index that gained 0.4 per cent following price appreciation in Consolidated Hallmark Insurance Plc (+6.1 per cent), NEM Insurance Plc (+5.0 per cent) and Linkage Assurance Plc (+3.5 per cent).
On the negative side, the NSE Industrial Goods Index led laggards with decline of 1.8 per cent. The NSE Banking Index shed 0.9 per cent , while the NSE Consumer Goods Index shed 0.7 per cent. The NSE Oil & Gas Index closed 0.5 per cent lower.
The market rebounded on Thursday after a day decline with the NSE ASI appreciating by 0.32 per cent to close at 43,090.55. Gains recorded by FBN Holdings, Transcorp, Unilever , GTBank and Nigerian Breweries Plc were the major booster of the positive performance.
The market rose further on the fifth day, appreciating by 0.18 per cent, bringing the week-on-week growth to 0.68 per cent.
Meanwhile, investors traded a total turnover of 3.079 billion shares worth N39.990 billion in 23,086 in contrast to a total of 2.170 billion shares valued at N39.087 billion that exchanged hands in 24,657 deals the previous week.
The Financial Services Industry led the activity chart with 2.288 billion shares valued at N29.585 billion traded in 13,188 deals; thus contributing 74.30 per cent and 73.98 per cent to the total equity turnover volume and value respectively. The Oil and Gas Industry followed with 386.811 million shares worth N1.273 billion in 1,573 deals, while the third place was occupied by Consumer Goods Industry with a turnover of 205.245 million shares worth N5.803 million in 4,959 deals.
Trading in the top three equities namely – Access Bank Plc, Capital Oil Plc and Zenith Bank Plc accounted for 1.677 billion shares worth N20.413 billion in 2,476 deals, contributing 54.48 per cent and 51.05 per cent to the total equity turnover volume and value respectively.
Price Gainers and Losers
A look at the price gainers chart showed that 45 equities appreciated in price last week, higher than the 38 of the previous week, while 40 equities depreciated in price, lower than 45 equities of the previous week.
Japaul Oil & Maritime Services Plc led the price gainers with 53.9 per cent, trailed by Consolidated Hallmark Insurance Plc that rose 34.4 per cent. LASACO Assurance Plc chalked up 25.7 per cent, while Unilever Nigeria Plc went up by 20.6 per cent.
Other top price gainers included: Caverton Offshore Support Group Plc(19.9 per cent); Cadbury Nigeria Plc (18.7 per cent); ABC Transport Plc (13.5 per cent); First Aluminium Plc (13.3 per cent); Royal Exchange Plc (12.9 per cent) and A.G Leventis Nigeria Plc (12.2 per cent).
Conversely, Regency Alliance Insurance Plc led the price losers with 27.1 per cent, trailed by African Alliance Insurance Plc (13.8 per cent) and FTN Cocoa Processors Plc (13.5 per cent).
Other top price losers included: Sovereign Trust Insurance Plc (13.1 per cent); C & I Leasing Plc (9.7 per cent); United Capital Plc (9.3 per cent); Capital Oil Plc (8.3 per cent); WAPIC Insurance Plc (7.6 per cent);Multiverse Mining and Exploration Plc (7.1 per cent) and Livestock Feeds Plc (6.3 per cent).