Stories by Amaka Ifeakandu Lagos
Investment in the Nigerian equity market last week continued in bullish trend as investors wealth increased by N980 billion. Specifi cally, market capitalisation of listed equities grew for the fi rst time this year by 8.36 per cent to N12.705 trillion from N11.725 trillion reported the previous week.
Also the Nigerian Stock Exchange All Share Index recorded higher growth increasing by 2844.34 basis points to 36864.71 from 34020.37 traded the previous week. Similarly, all other Indices took upward trend during the week with the exception of the NSE ASeM Index that depreciated by 1.09 per cent . NSE Premium index increased by 246.52 to 2556.7 points, Th e NSE main Board index grew by 104.26 to 1615.94 , NSE 30 index added 130.58 to 1677.57 point, NSE Banking index improved by 40.22 to 462.89, NSE Insurance Index rose by 2.68 to 139.33 point, NSE Consumer Goods index advanced by 59.58 to 851.15, NSE Oil and Gas surged by 10.04 basis points to 336 .15 points, NSE Lotus II rose by 177.72 to 2242.17, NSE Industrial Goods Index appreciated by 126.56 to 2258.77 points, NSE Pension index increased by 72.14 basis points to 1248.03 per cent.
Th e trading for the week showed a total turnover of 2.211 billion shares worth N30.636 billion in 26,287 deals in contrast to a total of 3.628 billion shares valued at N34.886 billion that exchanged hands the previous week in 19,834 deals. Operators said that the recovery of the market is not artifi cial, adding that Central Bank of Nigeria intervention in forex market has helped to tackle the supply side of the nation’s foreign exchange market which was identifi ed as the major problem aff ecting the market.
Th is according to them has gone a long way to reverse the story of the Nigerian economy to what we are seeing today that is attracting infl ow of foreign exchange in form of direct and portfolio investment. Th is also equally rekindled domestic investor confi dence due to positive data in the last fi ve months pointing to economic recovery, which is currently being driven solely by monetary policy.
Expectations are that the fi scal authorities will brace up and begin to do the needful, a situation that would further fasttrack recovery, knowing that without a thriving economy, there is no politics. Operators further said that the second quarter result released by companies revealed good returns on investment at the end of the year. Th e result showed that the Financial Services Industry led the activity chart with account of 1.735 billion shares valued at N19.044 billion traded in 14,626 deals; thus contributing 78.45 per cent and 62.16 per cent to the total equity turnover volume and value respectively.
Th e Conglomerates Industry followed with 165.396 million shares worth N454.240 million in 1,400 deals. Th e third place was occupied by Consumer Goods Industry with a turnover of 135.802 million shares worth N6.681 billion in 4,143 deals. Trading in the top three equities namely – United Bank for Africa Plc, FBN Holdings Plc and Access Bank Plc accounted for 798.334 million shares worth N7.165 billion in 5,855 deals, contributing 36.11 per cent and 23.39 per cent to the total equity turnover volume and value respectively. Th e result further showed that 51 equities appreciated in price against 36 of the previous week.
However, 23 fi rms depreciated in price, lower than 33 equities of the preceding week, while 97 companies remained unchanged lower than one 102 equities recorded in the preceding week. A breakdown of the transactions indicated that Conoil Plc recorded the highest gain for the week gaining 21.41 per cent or N6.42 kobo to close at N36.40 kobo, Presco Plc followed with a gain of 20.00 per cent or N12.20 kobo to close at N73.20 kobo, while Dangote Sugar Refi nery increased by 19.34 per cent or N1.76 kobo to close at N10.85 kobo.
Other companies appreciated in price were May and Baker Nigeria Plc 15.77 per cent, Stanbic IBTC Holdings 15.51 per cent, Okomu Oil Palm Plc 15.36 points, Fidson Healthcare Plc 14.97 per cent, Ecobank Transnational Incorporated 13.33 per cent, C &I Leasing Plc 13.11 and Zenith international Bank 12.85 per cent. Conversely, Cadbury Nigeria Pic topped losers chart for the week, dropping by 18.17 per cent or N2.32 kobo to close at N10.45 kobo, Morrison Industries Plc trailed with a loss of17.58 per cent or N0.29 kobo to close at N1.36 kobo, Livestock Feeds Plc declined by 13.33 per cent or N0.12 kobo to close at N0.78 kobo. Other fi rms depreciated in price were Neimeith International Pharmaceuticals Plc 13.04 per cent, UACN Property Development Company Limited 8.94 per cent, Unity Bank Plc 8.57 per cent, AIICO Insurance 8.33 per cent, Red Star Express Plc 7.41 per cent, Chellarams Plc4.99 per cent, Cement Company of Northern Nigeria 4.95 per cent. Also traded during the week were a total
