By Yakubu LAAH InvestAdvocate
Lagos (INVESTADVOCATE)-Market value at the Nigerian Stock Exchange (NSE) on Friday gained N163 billion to close the week at N11.404 trillion from N11.241 trillion recorded previously amidst declining oil prices and naira devaluation.
According to Cordros weekly market update, the bulls resurfaced in the Nigerian equities market, as the conclusion of the MPC and OPEC meetings provided some reassurance on the Central Bank’s firm decision to address the major concerns (depreciating naira, capital outflows and declining crude oil prices) suppressing investor risk appetite.
At the close of business on friday, the Nigerian bourse all-share index (ASI) and market capitalisation gained 1.82 percent to close at 34,543.05 points and N11.404 trillion respectively; overcoming price declines in Dangote Cement Plc (DANGCEM) to a negative 4.81percent, Cordros said.
Similarly, all indices appreciated during the week with exception of the NSE Industrial Goods index that dropped by 1.62 percent; owing to declines in the activities of cement manufacturers DANGCEM and Ashaka Cement Plc (ASHAKACEM), according to the Exchange weekly stock market report.
A review of index movement at the Nigerian equities market shows that the Oil/Gas index topped the gainers chart with a 6.34 percent w/w gain, the Consumer goods index followed with a growth of 6.32 percent.
In the same vein, the Banking and Insurance indices appreciated 3.09 percent and 2.45 percent respectively.
However, Cordros reported that the week-on-week (w/w) gain failed to rescue the market from losing 8.01 percent in the month on November, representing the fifth successive month-on-month (m/m) decline.
In terms of market breadth, the Nigerian bourse closed on a positive note as it recorded 51 gainers and 20 losers compared to the 19 gainers and 50 losers reported last week.
Also, turnover at the Nigerian equities market went up as it recorded 2.092 billion shares worth N28.234 billion in 22,865 deals traded this week by investors on the bourse compared to a total of 1.359 billion shares valued at N14.565 billion that exchanged hands last week in 20,844 deals.
According to the NSE’s report, the Financial Services Industry (measured by volume) led the activity chart with 1.671 billion shares valued at N15.934 billion traded in 12,563 deals; thus contributing 79.89 percent and 56.43 percent to the total equity turnover volume and value respectively.
It further affirmed that the Consumer Goods Industry followed with a turnover of 111.632 million shares worth N6.342 billion in 4,082 deals. The third place was occupied by the Conglomerates Industry with 80.121 million shares worth N389.574 million in 1,229 deals.
The shares of top tier Nigerian lenders, Zenith International Bank Plc (344.09 million), FBN Holdings Plc (252.00 million), and United Bank for Africa Plc (216.15 million), measured by volume collectively accounted for 812.237 million shares worth N10.768 billion in 5,326 deals, contributing 39 percent to the total equity turnover volume on the Nigerian bourse in the review period.
In terms of value, Zenith Bank with N7.18 billion, brewer, Nigerian Breweries Plc (NB) with N2.73 billion and FBNH with N2.48 billion accounted for 44 percent of total value of transactions recorded at the end of the week at the NSE.
A summary of price changes at the Nigerian bourse in the week under review shows that 51 equities appreciated in price during the week higher than 19 reported the previous week, 20 equities dropped in price lower than 50 recorded the past week, while 126 equities remained unchanged lower than 132 recorded in the preceding week.
