Market Cap gains N1.5 trillion in 1week, crosses 9 year high
It’s the second week of the year, and investors have continued to pump in voraciously into Nigeria’s Equities market. Progressing from previous’ week’s 1.78 per cent advancement, the Nigerian Stock Exchange All Share Index ASI added another 10.21 per cent in the week ended 12th January 2018 pushing the Year to date returns to 12.17 per cent.
The ASI closed the week at 42,898.90 basis points while the market capitalisation gained N1.5 trillion or 10.95 per cent in the review period to cross the N15 trillion mark, a feat last witnessed in 2009.
A review of sectorial index performance revealed that all finished higher during the week with the exception of the NSE ASeM Index that closed flat. The Industrial Goods index led the rally with a gain of 12.98 per cent, it was followed by the Banking that appreciated 12.88 per cent, the Oil & Gas that added 7.46 per cent, Insurance 6.50 per cent, and Consumer Goods 5.60 per cent.
The sectors were buoyed by the price appreciation recorded in 66 equities, a performance that beat previous week’s 55 advancing stocks. Topping price gainers were Honeywell Flour that added 39.68 per cent, Skye Bank with a growth of 37.70 per cent, and Champion Breweries 36.57 per cent gain.
On the other hand Meyer Plc led the week’s 7 depreciated stocks which were lower than previous week’s 12 depreciated equities, while 99 equities remained unchanged lower 105 equities recorded in the preceding week.
Read Also: NSE opens 2018 with 0.06% gain as 27 gainers emerge
Activity table shows a total turnover of 5.021 billion shares worth N68.974 billion in 41,542 deals were traded by investors on the floor of the Exchange in the week under review. This was in contrast to a total of 2.417 billion shares valued at N18.813 billion that exchanged hands previous week in 20,874 deals.
The activity chart in volume terms was topped by the Financial Services Industry with 3.417 billion shares valued at N31.649 billion traded in 24,375 deals; thus contributing 68.06 per cent and 45.89 per cent to the total equity turnover volume and value respectively.
The Conglomerates Industry followed with 894.357 million shares worth N2.180 billion in 3,032 deals.
The third place was occupied by Consumer Goods Industry with a turnover of 380.493 million shares worth N26.243 billion in 7,408 deals.
Topmost traded stocks for the week were Transnational Corporation of Nigeria Plc, Diamond Bank Plc and FBN Holdings Plc. They accounted for 1.975 billion shares worth N7.473 billion in 8,549 deals, contributing 39.33 per cent and 10.83 per cent to the total equity turnover volume and value respectively.
Meanwhile, analysts predict a week of profit taking in the wake of the most recent bullish trend.
Cordros researchers noted that ‘Following this week’s strong rally, the possibility of profit taking is high. That said, we reiterate that still positive market fundamentals and improving macroeconomic conditions suggest legroom for further gains.’
Adesola Afolabi
