By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE)-Benchmark index at the Nigerian bourse on Friday climbed up 4.21 percentduring the week to settle at the 3-months high of 41,474.39 basis points (BPS).
However, all the Nigerian stock exchange (NSE) indices appreciated during the week with the exception of the NSE ASeM index that closed flat at 950.94 BPS.
Investment One Nigerian equities weekly reported that the index climb was supported by all sectorial trackers with the cement (+6.18%) and banking (+5.38%) equities lifting the all share index (ASI) as their components recording strong week on week (w/w) returns.
‘Bullish trading persisted on the Nigerian bourse after closing in negative territory for the first trading session of the week, increased investors’ risk-appetite, as evidenced in huge volumes traded, reversed the market trend to the upside in the remaining three sessions,’’ Cordros research reported.
Cordros further reported that the strong w/w gain was supported by the post-democracy day where the market posted its biggest daily gain (+2.95%) since May 02, 2013.
The Cordros report said in terms of sectoral w/w gains, continuous increase in the demand for banking stocks, post MPC meeting, led to a 7.49% rise in the banking index. The oil/gas and industrial indices followed with 3.42% and 3.34% growths correspondingly.
‘’The renewed interest in the local equities market has effectively reversed the first quarter bearish trend of monthly losses as market grew by 7.77% in the month of May and also sent the benchmark index back to a positive YtD at 0.35%,’’ Cordros reported.
Similarly, the market capitalisation appreciated by 4.12% to close on Friday at N13.695 trillion.
The stock market opened for four days this week as the Nigeria’s federal government declared Thursday May 29, 2014 a public holiday to mark the democracy day celebrations.
In terms of turnover, 1.901 billion shares worth N34.643 billion in 20,452 deals were traded this week by investors on the floor of Nigerian bourse compared to a total of 1.869 billion shares valued at N23.917 billion that exchanged hands last week in 23,554 deals.
According to the NSE stock market report for the week ended Friday May 30, 2014, the financial services industry (measured by volume) led the activity chart with 1.416 billion shares valued at N19.317 billion traded in 10,795 deals; thus contributing 74.51% and 55.76% to the total equity turnover volume and value respectively.
The natural resources industry followed with a turnover of 105.017 million shares worth N52.601 million in 8 deals, while the third place was occupied by the oil and gas industry with 86.538 million shares worth N2.288 billion in 2,725 deals.
While the most traded stock were Zenith International Bank Plc, FBN Holdings Plc and Guaranty Trust Bank Plc (measured by volume) accounted for 679.118 million shares worth N15.528 billion in 4,521 deals, contributing 35.73% and 44.82% to the total equity turnover volume and value respectively.
Also, summary of price changes at the Nigerian bourse shows that 55 equities appreciated in prices during the week higher than 42 of the previous week. 21 equities depreciated in prices lower than 33 of the past week, while 124 equities remained unchanged same figure recorded the previous week.
