Market posts record breaking growth of 7.46% in one week
It was a record breaking week at the equities market, as the All Share Index posted a growth of 7.46 percent for the week ended 12th May, 2017, extending gains to the third straight week.
During the week the ASI and Market Capitalisation, crossed the 28,000 and N9 trillion mark respectively, while sector indexes recorded gains of varying degrees.
According to capital market analysts, the week’s gain is as a result of demand for blue chip stocks across board, most notably, the banking and consumer goods names.
“Judging by market activity in the past three weeks, and more specifically, the spike in the number of deals and volume traded this week, we sense improved investors, both local and foreign, appetite for risk assets on domestic bourse, following the reduced apprehension in the macroeconomic environment, impressive 2016 FY and Q1- 2017 performance of highly capitalized names, and increased confidence about the stability and liquidity of the FX.”
CEO of Entreprise Stockbrokers, Mr. Rotimi Fakayejo, who spoke with our correspondent, attributed the market’s growth to improved investor confidence and impressive Q1 earnings said the market upturn was back for good.
According to him, foreign investors who left in droves in 2015 are beginning to have their confidence restored through policies being implemented by the government.
He said Local investors who see the recent trend are also joining the buy in for keeps, and when profit taking commences, it may not be sustained as statistics indicates a rebound of the market.
The All Share Index gained in four out of the five trading sessions, recording its largest gain on Thursday (3.18 percent), before declining modestly by 0.81 percent on Friday.
Compared to last week, all indices closed higher, with the Consumer Goods index recording the largest gain, of 13.36 percent w/w bolstered by demand for NESTLE, Nigerian Breweries, PZ and Cadbury, which grew 12.08 percent, 17.05 percent, 20.40 percent, and 14.52 percent respectively.
Likewise, the Banking and Oil & Gas indices extended gains from last week, posting a growth of 11.18 percent and 2.74 percent each, following investors demand of the shares of Zenith Bank that added 12.05 percent, Guaranty 12.36percent,Stanbic 6.12 percent, Total 5.45 percent, Forte Oil 15.73 percent and OANDO 20.22 percent respectively.
The Industrial Goods index grew 0.46 percent last week and Insurance index added 2.93 percent on account of price appreciations in Dangote Cement that added 3.33 percent, Betaglas 4.98 percent, CCNN 8.91 percent, AxaMansard 10.81percent , CUSTODYINS 8.25 percent and Continental Reinsurance that appreciated 2.56 percent.
Market breadth was positive, with 57 gainers topped by May & Baker, compared to 42 gainers led by Fidson last week while 13 losers were led by Jaiz Bank against 16 losers last week led by Unity Bank.
Total volume and value traded increased by 128 and 175 percent each to 3.26 billion shares and N28.7 billion with FBN Holdings Plc, FCMB Group Plc and Zenith International Bank Plc accounting for 1.419 billion shares worth N8.185 billion in 5,117 deals, contributing 43.59 percent and 28.48 percent to the total equity turnover volume and value respectively.
