March 1, 2019

By Pascal Ijeh InvestAdvocate

Lagos (INVESTADVOCATE)-The Nigerian equities market on Friday opened the month on a positive note as the all-share index (ASI) gained 0.34 percent to close at 31,827.24 points on the performance in the Banking sector; notably Zenith Bank Plc, as week-to-date returns and market capitalisation declined -2.12 percent and N11.869 trillion respectively.

InvestmentOne daily market update reports at the close of the session’s trading on the floor of the Nigerian Stock Exchange (NSE), market breadth index was flat with 19 gainers and 19 losers posted respectively.

The update affirmed that top tier lender, Zenith Bank Plc with a gain of +0.21 percent was the most actively traded stock with about 64 million units of shares worth N1.55 billion.

According to InvestmentOne report, C & I Leasing Plc with a gain of +9.98 percent emerged the topmost gainer, while NPF Microfinance Bank Plc with a loss of -10.00 percent led the losers’ chart.

In terms of sector performance, NSE Banking index gained 0.40 percent, on the back of the buy interests in the shares of lenders, Fidelity Bank Plc and Wema Bank Plc; both rose  +6.82 percent and +4.05 percent each, Access Bank Plc and First City Monument grew +3.51 percent and +2.46 percent apiece, Diamond Bank Plc and pan Africa lender, United Bank for Africa Plc appreciated +2.21 percent and +2.01 percent respectively.

Still on Friday’s positive trend, the NSE Consumer Goods index rose by 0.08 percent, majorly due to the gains in the shares of Honeywell Flour Mills Plc and food and beverage maker, Nestle Nigeria Plc; both gained +3.05 percent and +2.72 percent each, brewer, Nigerian Breweries Plc inched up by +0.63 percent.

Also, InvestmentOne reports the·NSE Oil & Gas index advanced by 0.30 percent, following the rise in the shares of Total Nigeria Plc and Japaul Oil & Maritime Plc both climbed up +5.26 percent and +4.55 percent apiece.

The NSE Industrial index closed up by 0.26 percent, largely driven by the gains in the shares of Nigeria’s most capitalised listed company and cement manufacturer, Dangote Cement Plc which gained marginally by +0.67 percent.

“The equities market closed up today following the gains in all sectors. Despite the recent recovery in the equities market, we believe prices are still at decent levels for investors with medium to long term horizon. Furthermore, with the conclusion of the 2019 Presidential and National Assembly elections, we expect uncertainties associated with political risk to dwindle. This may improve investor sentiment towards the Nigerian equities market,” the  InvestmentOne updated added.

Weekly stock market report from the NSE says that 26 equities gained in price lower than 34 posted the previous week. On the flip-side, 38 equities lost in price same as the past, while 104 equities remained unchanged higher than 96 equities recorded in the preceding week. 

According to the NSE, all other indices finished the week lower with the exception of the NSE Insurance and NSE Industrial Goods indices which rose by 3.01 percent and 0.93 percent respectively; while the NSE  Alternative Securities Market (ASeM) index closed flat. 

The NSE reports that a total turnover of 1.752 billion shares worth N19.681 billion in 22,319 deals were traded this week by investors on the floor of the domestic bourse compared to a total of 1.481 billion shares valued at N17.647 billion that exchanged hands last week in 20,449 deals.

The Financial Services Industry (measured by volume) led the activity chart with 1.377 billion shares valued at N11.311 billion traded in 14,180 deals; thus contributing 78.63 percent and 57.47percent to the total equity turnover volume and value respectively.

The Conglomerates Industry followed with 115.142 million shares worth N168.128 million in 1,126 deals. The third place was Consumer Goods Industry with a turnover of 113.079 million shares worth N6.051 billion in 2,993 deals.

Trading in the Top Three Equities namely, Diamond Bank Plc, Access Bank Plc and Zenith Bank Plc (measured by volume) accounted for 594.377 million shares worth N4.757 billion in 4,315 deals, contributing 33.93 percent and 24.17 percent to the total equity turnover volume and value respectively, the NSE weekly report affirmed.