How investors grew NSE index by 1.3% in Q3 earnings season
Investors participating in the equities segment of the Nigerian Stock Market have been able to lift the market from a two-week downtrend, having been impressed with the Q3 results delivered by listed companies in the past week.
The week ended 3rd November 2017, saw the NSE All-Share Index and Market Capitalization appreciate by 1.31 per cent each to close the week at 36,939.59 and N12.785 trillion respectively, just as the sectoral indices finished higher during the week with the exception of the NSE-Main Board and NSE Consumer Goods Indices that depreciated by 0.11 per cent and 0.07 per cent respectively.
According to Chief Research Officer at Investdata Consulting limited Ambrose Omordion the earnings reporting season successfully coming to an end amidst impressive numbers, will boost confidence as market fundamentals after being strengthened by these corporate earnings.
Omorodion, however, noted that, the market between now and the next earnings season is likely to be on short-term trading movement as year-end seasonal changes and festivities play out to influence the stock market.
He advised investors to let the strong numbers, trading pattern and market sentiment guide portfolio rebalancing and positioning at this point and beyond.
A review of the market’s performance in the last one week revealed that 37 equities led by University Press appreciated in price during the week. This figure is higher than 33 gainers recorded in the previous week. 29 equities topped by Newrest ASL Nigeria depreciated in price, the week’s losers were lower than 32 decliners of the previous week, while 105 equities remained unchanged lower than 106 equities recorded in the preceding week.
A total turnover of 1.363 billion shares worth N17.714 billion in 21,891 deals was traded last week by investors on the floor of the Exchange in contrast to a total of 1.394 billion shares valued at N16.403 billion that exchanged hands previous week in 19,195 deals.
Top three traded equities for the week were FBN Holdings Plc, Diamond Bank Plc and United Bank for Africa Plc. They accounted for 497.016 million shares worth N2.947 billion in 4,205 deals, contributing 36.48 per cent and 16.64 per cent to the total equity turnover volume and value respectively.
Cheery news such as the reinstatement of Nigeria indexes amongst the widely tracked MSCI Frontier Market Index, the world bank’s recent announcement that Nigeria now ranks 145 compared to 169 in its previous issue out of 190 countries in the Ease of Doing Business index for 2018 and a further drop in the inflation rate to 15.9 percent in October, are further enhancing investor’s interest at the local bourse.
Capital market analysts are of the view that the immediate aftermath of these positives should be an increase in inward portfolio and direct investments in the Nigerian economy going forward and a much broader impact should be the consolidation of the economy’s exit from recession.
Adesola Afolabi
