Experts predict increased demand for equities as index soars 1.45%
Capital Market experts have predicted a near term increase in the demand for local equities.
According to the experts at United Capital, the momentum currently gathering at the investors’ and exporter’s FX window, which recently recorded a surge in the weekly transaction is expected to continue to drive activities, while Q3-17 earnings are anticipated to trigger further demand.
For the second week in a row, the equities segment of the Nigerian Stock Exchange (NSE) ended on a bullish note, with the NSE’s ASI and market capitalization advancing further by 1.45 per cent to close 36,848.17 points and N12.684 trillion.
This increased the MtD and YtD returns to 3.97 per cent and 37.11 per cent, respectively.
Market performance for the week ended Friday, 13th October 2017 was prevalent on the uptick recorded in all sector indices which closed the week on a positive note.
The Insurance, oil & gas, banking, industrial and consumer goods sector indices advanced 7.9, 1.82, 1.4, 0.66 and 0.05 per cent, respectively.
Axa Mansard with a growth of 25.50 per cent in its share price during the week in review, led 41 equities that appreciated as against 38 of the previous week.
On the other hand, University Press Plc topped 23 equities that depreciated in price, lower than 26 equities of the previous week, while 107 equities remained unchanged same as 107 equities recorded in the preceding week.
A total turnover of 1.555 billion shares worth N13.504 billion in 18,409 deals were traded in the course of the week by investors on the floor of the Exchange in contrast to a total of 1.493 billion shares valued at N15.107 billion that exchanged hands previous week in 14,549 deals.
The Financial Services Industry led the activity chart in volume terms with 1.365 billion shares valued at N6.507 billion traded in 10,880 deals; thus contributing 87.76% and 48.19% to the total equity turnover volume and value respectively.
The Consumer Goods Industry followed with 70.496 million shares worth N5.637 billion in 3,398 deals. The third place was occupied by Conglomerates Industry with a turnover of 58.779 million shares worth N141.929 million in 706 deals.
Top most traded equities by volume were Diamond Bank Plc, Zenith International Bank Plc and Transnational Corporation of Nigeria Plc. They accounted for 985.762 million shares worth N2.841 billion in 3,401 deals, contributing 63.39% and 21.04% to the total equity turnover volume and value respectively.
Adesola Afolabi
