By Yakubu LAAH InvestAdvocate
Lagos (INVESTADVOCATE)-Nigerian stocks on Friday ended the week on a positive note as the benchmark index and market capitalisation appreciated by 4.79 percent to close the week at 30,649.66 and N10.527 trillion respectively.
“Similarly, all other Indices finished higher during the week, with the exception of the NSE ASeM Index that closed flat,” according to the Nigerian Stock Exchange weekly stock market report for the period ended June 24, 2016.
At close of the week’s trading on the domestic bourse, the NSE recorded a turnover of 2.387 billion shares worth N26.381 billion in 28,072 deals traded by investors compared to a total of 2.158 billion shares valued at N20.394 billion that exchanged hands last week in 24,369 deals.
According to the NSE’s report, the Financial Services Industry measured by volume led the activity chart with 1.951 billion shares valued at N16.832 billion traded in 17,226 deals; thus contributing 81.75 percent and 63.80 percent to the total equity turnover volume and value respectively.
The update says the Conglomerates Industry followed with 223.156 million shares worth N477.064 million in 1,461 deals. The third position was occupied by the Consumer Goods Industry with a turnover of 91.705 million shares worth N6.253 billion in 4,433 deals.
The NSE reports that trading in the shares of Nigeria’s top tier lenders, the United Bank for Africa Plc, Zenith International Bank Plc and Guaranty Trust Bank Plc measured by volume accounted for 887.282 million shares worth N12.894 billion in 7,483 deals, contributing 37.17 percent and 48.88 percent to the total equity turnover volume and value respectively.
In terms of Exchange Traded Products (ETPs), during the week a total of 121,501 units valued at N90.716 million were executed in 34 deals, compared to a total of 519,199 units valued at N6.582 million transacted last week in 42 deals.
For Bonds, a total of 9,439 units of Federal Government Bonds valued at N10.429 million were traded in seven (7) deals compared to a total of 4,170 units of Federal Government Bonds valued at N4.413 million transacted last week in three (3) deals.
A summary of price changes in the review week shows that 40 equities gained in price during the week, lower than 44 recorded previous week. On the flipside, 32 equities lost in price, higher than 24 posted last week, while 108 equities remained unchanged lower than 112 declared in the preceding week.
This is coming on the heels of global stocks plunging on the exit of Britain from Europe. Reuters reports that global stock markets lost about $2 trillion in value on Friday after Britain voted to leave the European Union, while sterling suffered a record one-day plunge to a 31-year low and money poured into safe-haven gold and government bonds.
According to the report, stocks on Wall Street traded down around three (3) percent, with the Dow Jones industrial average dropping as much as 544 points.
Similarly, stocks tumbled in Europe. Frankfurt, GDAXI, and Paris, FCHI each fell seven (7) percent to eight (8) percent. Italian FTMIB and Spanish IBEX markets posted their sharpest one-day drops ever, falling more than 12 percent led by a dive in European bank stocks .SX7P. Italy’s Unicredit (CRDI.MI) fell 24 percent while Spain’s Banco Santander (SAN.MC) fell 20 percent, the Reuters report added.
While the London’s FTSE, declined 3.2 percent, with some investors speculating that the plunge in sterling could benefit Britain’s economy.
