By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE)–The NSE all-share index (ASI) advanced 0.13 percent at 41,529.11 basis points for the week ended June 06 2014.
Unexpectedly all the NSE indices appreciated during the week with the exception of the NSE banking index (1.14%) and NSE insurance index (1.51%), while the NSE ASeM index closed flat.
Similarly, market capitalisation appreciated by 0.13% to close on Friday at N13.713 trillion.
Reports from Cordros Capital says despite volatile intra week trading, as evident in two (2) trading sessions of gains and three (3) sessions of losses, the market appreciated further week-on-week (w/w).
Cordros report affirmed that a decline was expected as the rally in the month of May?specifically last week where the market grew by 4.12%?left the market vulnerable to price corrections. ‘’The magnitude of gains surpassed losses thus leading to a 0.13% advancement of the benchmark index w/w,’’ the report said.
According to the analysis by Cordros, in spite of a significant moderation in the level of market gain, compared to the past weeks, there was a substantial gain in the oil/gas sector which was reflected in a 10.19% increase in the NSE oil/gas sectoral index; riding on gains in Forte Oil Plc (FO) (+16.89%), Oando Plc (OANDO) (+9.72) and Conoil Plc (CONOIL) (+7.42%). ‘’Profit-taking and price correction was prevalent in the insurance and banking indices which lost 1.51% and 1.14% respectively,’’ Cordros reported.
On its part, the NSE reported a turnover of 1.876 billion shares worth N32.902 billion in 28,408 deals were traded this week by investors on its bourse compared to a total of 1.901 billion shares valued at N34.643 billion that exchanged hands last week in 20,452 deals.
The Nigerian bourse said the financial services industry (measured by volume) led the activity chart with 1.381 billion shares valued at N15.550 billion traded in 14,386 deals; thus contributing 73.63% and 47.26% to the total equity turnover volume and value respectively.
The conglomerates industry followed with a turnover of 162.501 million shares worth N1.536 billion in 1,979 deals. The third place was occupied by the industrial goods industry with 100.029 million shares worth N2.114 billion in 2,007 deals.
NSE reported that trading in the top three (3) equities namely- Access Bank Plc, Zenith International Bank Plc and Transnational Corporation of Nigeria Plc (measured by volume) accounted for 567.628 million shares worth N7.835 billion in 4,068 deals, contributing 30.25% and 23.81% to the total equity turnover volume and value respectively.
Total volume traded fell by 9% from 2 billion to 1.82 billion shares. Total value also declined by 6% to N32.67 billion, despite only four trading session last week. ‘’The reduction in activity in the market could indicate attenuation in the amount of foreign inflows; it also confirms our claims that a lot of positions were taking in anticipation of the new CBN Governor,’’ Cordros affirmed.
In terms of summary of price changes at the Nigerian bourse, market breadth was neutral as the NSE reported that 42 equities appreciated in prices during the week lower than 55 the preceding week. While another 42 equities depreciated in prices higher than 21 recorded last week. However, 116 equities remained unchanged lower than 124 recorded in the preceding week.
