Finance sector sustains positive returns on investments ytd

The banking subsector of finance sector as at the close of trade on te Nigerian Stock Exchange (NSE) on Friday March 17th 2017 closed the week with highest returns on investment, followed by the insurance sector.

The sector sustained investments appetite of investors by retaining returning highest earnings to investors for the year’s period (YTD).

Driver of the finance sector, the NSE Banking index closed the week on a year’s return of 3.12 per cent to investors and a week to date returns of 2.36 per cent, while it gave investors 6.53 per cent, for the week ended March 17th 2017.

The NSE banking index opened the week at 276.36 and closed at 282, 89, recording 2.01 per cent returns over a month’s period (MTD).

Aside from the NSE ASeM index known for its inactivity yet recorded a year and quarter to date returns of 0.32 per cent, but with 0.00 per cent returns on weekly, week to date and monthly basis, the Insurance sector emerged next to the banking sector with -0.11 per cent returns on year to date basis.

The Insurance sector returned 2.64 per cent over a month’s period, 2.11 per cent week to date and 2.61 per cent over the week ended March 17th. The sector opened last week at 123.54 and closed at 126.15.

Analysis of the NSE’s weekly report on sectorial performances showed that the NSE Pension index ranked third on returns with -1.06 returns YTD and QTD, the sector has also returned 2.89 per cent and 2.51 per cent respectively, over a month’s period and week to date respectively.

However, the NSE finance sector topped the price gainers table by achieving 70 per cent of the top ten gainers recorded in the week. The performance during the week was lifted by activities in the shares of Diamond Bank, United Capital, Continental Re Insurance and African Prudential Registrars.

Others are United Bank for Africa, Guaranty Trust Bank and Fidelity Bank that recorded equity price growth of between 16.05 per cent and 6.17 per cent during the trading week.

This was however, against 30 per cent contribution of the sector to the top 10 decliners of the week that lost between 10.99 per cent and 4.40 per cent, constituting of NEM Insurance, Jaiz Bank and Zenith Bank.

Also, the finance sector of the NSE accounted for 83 per cent of activities recorded on the NSE during the week.
The Financial Services Industry measured by volume led the activity chart with 853.414 million shares valued at N4.269 billion traded in 7,904 deals, contributing 83 per cent and 53.50 per cent to the total equity turnover volume and value respectively.

Trading in the hares of Diamond Bank, FBN Holdings and Fidelity Bank measured by volume accounted for 397.225 million shares worth N546.501 million in 1,680 deals, contributing 38.59 per cent and 6.85 per cent to the total equity turnover volume and value for the week respectively.