Equities appreciate by 0.03% as investors gain N6bn

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Sentiments were mixed on the domestic bourse as the cement sub-sector driven gains were offset by selloffs across the equities of companies in the Consumer Goods and Banking sectors.

Consequently, the market’s index closed marginally higher by 0.03 per cent for the week, with the Year-to-Date return settling slightly higher at +10.4 per cent while the market capitalisation of the Nigerian Stock Exchange (NSE) increased by N6 billion to close the week at N15.262 trillion.

The market resumed on a positive note with the NSE ASI rising by 0.31 per cent to close at 29,710.56 points while market capitalisation climbed up by N47 billion to close at N15.303 trillion. Tuesday’s session saw sell-offs in high capitalised stocks, thus ending the successive gains recorded on the nation’s bourse as the index slipped by 0.83 per cent to 29,462.76 points.

Consequently, Year-to-Date (YtD) return fell to 9.8 per cent while market capitalisation declined N127.6 billion to N15.176 trillion.

On the back of price depreciation in the shares of Wapco, Zenith Bank and MTNN, investors lost a total value of N2.3 billion at the close of business on Wednesday.

As a result, the All Share Index (ASI) and market capitalisation declined to 0.02 per cent to close at 29,458.21 points and N15.2 trillion respectively while Year-to-Date (YtD) return fell to 9.7 per cent.

Thursday’s session saw gains in bellwether stocks as the domestic bourse trended northwards with the ASI rising by 0.45 per cent to 29,591.29 points.

Similarly, Year-to-Date (YtD) return increased to 10.2 per cent while market capitalisation advanced by N69 billion to close at N15.242 trillion.

Friday’s session saw the index rising by 0.13 per cent to close at 29,628.84 points while market capitalisation closed at N15.262 trillion.

Analysing performances by sectors, the Industrial Goods (+5.1 per cent) index led gains following investors’ interest in Dangote Cement (+2.8 per cent), BUA Cement (+2.80 per cent) and WAPCO (+10.8 per cent).

Also, gains were recorded in the Insurance (+3.0 per cent) and Oil & Gas (+2.5 per cent) sectors.

However, the Consumer Goods (-3.6 per cent) and Banking (-2.6 per cent) sectors recorded losses, following sell-offs in Nestle(-6.1 per cent) and GT Bank (-4.2 per cent).

Reacting, Cordros Capital in their weekly note to Sunday Sun said: “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”.

On his part, the Managing Director, Afrinvest Securities, Ayodeji Ebo, said: “There was a complete bloodbath in major counters of the market in 2019. But this year has seen positive performances amidst mixed sentiments by investors.

“There are expectations that by the end of 2020, the equities market will be one of the best performing market in the base case scenario and so I think with the time we will see the gains coming, especially as investors are awaiting the release of earnings’ result by quoted companies”.

Meanwhile a total turnover of 1.237 billion shares worth N22.762 billion in 21,156 deals were traded this week by investors on the floor of the Exchange, in contrast to a total of 2.087 billion shares valued at N26.470 billion that exchanged hands last week in 24,262 deals.

The Financial Services industry (measured by volume) led the activity chart with 837.345 million shares valued at N10.511 billion traded in 12,041 deals; thus contributing 67.69 and 46.17 per cent to the total equity turnover volume and value respectively.

The Industrial Goods followed with 154.540 million shares worth N2.998 billion in 2,862 deals while the ICT industry recorded a turnover of 52.709 million shares worth N1.262 billion in 709 deals.

Trading in the Top Three Equities namely, Access Bank Plc, Zenith Bank Plc and Guaranty Trust Bank Plc (measured by volume) accounted for 421.765 million shares worth N8.769 billion in 5,886 deals, contributing 34.10 and 38.52 per cent to the total equity turnover volume and value respectively.

Thirty-two equities appreciated in price during the week, higher than 21 equities in the previous week. Twenty-eight equities depreciated in price, lower than 42 equities in the previous week, while 103 equities remained unchanged, higher than 100 equities recorded in the preceding week.