By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE)-Benchmark index and market capitalisation at the Nigerian bourse on Friday inched up 0.93 percent Week-on-Week (W/W) to close at 41,049.28 and N13.554 trillion respectively for the period ended Friday 19, 2014.
Similarly, five (5) indices appreciated during the week with the exception of the NSE banking Index (-1.26 percent) and NSE Oil/Gas Index (-4.81 percent). Meanwhile the NSE ASeM Index closed flat, according to the weekly market report from the Nigerian Stock Exchange (NSE).
As at the end of trading today at the NSE, the equities market closed on a positive note as all-share index (ASI) climbed up 0.90 percent compared to 0.11 percent reported the previous session. Year-to-Date (YTD) returns now stands at a negative 0.68 percent.
Cordros Capital in its weekly market report affirmed that despite volatile intraweek trading, in which every gaining session was successively followed by a loss, and vice-versa, the 0.93 percent gain in benchmark index W/W is owed in a large part to today’s gain of 0.90% percent.
‘’Following the declines seen in the last week three (3) weeks, we predicted a return of the bulls this week and the market responded correspondingly,’’ Cordros said.
In terms of turnover, the Nigerian equities marker recorded 3.752 billion shares worth N62.116 billion in 22,109 deals traded this week by investors compared to a total of 3.047 billion shares valued at N106.701 billion that exchanged hands last week in 23,679 deals.
According to the NSE’s weekly stock market report, the financial services industry (measured by volume) led the activity chart with 3.401 billion shares valued at N55.092 billion traded in 10,785 deals; thus contributing 90.63 percent and 88.69 percent to the total equity turnover volume and value respectively.
The NSE further reported that the conglomerates services industry followed with a turnover of 121.697 million shares worth 943.914 million in 2,032 deals. The consumer goods industry came third with 58.622 million shares worth N2.785 billion in 3,419 deals.
The three (3) most active stocks in the review period are Ecobank Transnational Incorporated, Diamond Bank Plc and UBA Capital Plc (measured by volume) accounted for 2.667 billion shares worth N48.692 billion in 1,361 deals, contributing 71.07 percent and 78.39 percent to the total equity turnover volume and value respectively.
A summary of price changes according to the NSE shows that 32 equities appreciated in prices during the week lower than 38 of the preceding week. However, 51 equities depreciated in prices higher than 45 reported last week, while 117 equities remained unchanged equal with 117 recorded in the previous week.
‘’The global equities markets had a bullish week which helped overcome the pressure suffered last week. The momentum was driven by positive news flows from the U.S and Europe as investors’ bargain hunting saw some key indices hit record highs,’’ Cordros reported.
The report further affirmed that speculation around the U.S Fed’s line of action, and its eventual decision to keep intact its pledge to keep interest rates low lifted stocks prices up on Wall Street. UK and European stocks rose on Scotland’s decision to vote against independence, as this also eased concern about similar separatist movements in Spain. ‘’Meanwhile a stronger dollar saw Japanese shares close the week on a positive note as the Fed’s statements underlined the strength of the U.S economic recovery over the rest of the world,’’ Cordros said.
‘’On Wall Street, the Dow Jones Industrial Average and S&P 500 indices were up 2.1 percent and 1.7 percent w/w respectively as time of writing. The Euro Stoxx 50 index and UK’s FTSE 100 indices had appreciated by 1.3 percent and 0.8 percent respectively, the MSCI Frontier Market index had gained 0.7 percent w/w while the Emerging Market counter extended its loss, closing 0.5 percent lower,’’ the Cordros report affirmed.
