Stock Market Maintains Positive Momentum with N31billion Gain

The Nigerian equities market maintained a positive outlook for the second week as investor took advantage of undervalued stocks.

At the end of weekly trading, index movement shows that the NSE All-Share Index and market capitalization appreciated by 89.65 points and N31 billion represented 0.38 per cent to close at 23,916.15 points and N8.225 trillion respectively.

Transaction level by volume and value of trades recorded a decline of 48 per cent and 12 per cent respectively in contrast to last week’s closing levels. In the week under review, a total of 1.13 billion shares valued at N9.46 billion were exchanged in 16,336 number of deals compared to 2.18 billion shares valued at N10.75 billion exchanged in 20,136 deals recorded in the previous trading week.

On day by day transactions, financial sector pushed the equities market on Monday as market capitalization appreciated by N48 billion to settled at N8.252 trillion from N8.194 trillion.

Also the NSE All Share Index closed at 23,963.64 points after gaining 137.14 points as a result of investor demand in low priced stocks particularly in the financial sector.

The total value traded increased to N2.1 billion from N1.8 million having gained 11.5 per cent while volume traded decreased by 78.6 per cent to settle at 215.2 million units.

Despite the positive return seen in the broader market, the Consumer goods sector lost 0.3 per cent, on the back losses of 4.8 per cent decline in Nigerian Breweries stock prices. This was despite solid gains recorded by and 7-Up and Guinness Nigeria. In addition to this, Lafarge Africa also lost 1.2 per cent of its share price pushing the Industrial Goods sector returns to -0.2 per cent. Conversely, the financial services sector returned 2.4 per cent as gains in Zenith Bank and

Guaranty Trust Bank pushed up returns. Gains in Oando and Seplat Petroleum Development Company also drove the 0.9 per cent return seen in the Oil and Gas sector.

The total value traded decreased to N1.61 billion having lost 21.9 per cent while volume traded decreased by 33.6 per cent to settle at 142.9 million units. Market breath closed lower as 15 equity prices rose while 23 declined.
Investors’ confidence remained fragile, as outcomes of the Monetary Policy Committee meeting appeared to have done little in calming investor nerves.

The market capitalisation however recorded another N109 billion gain on Friday to settle at N8.225 trillion.

The All share Index also surged by 317.30 points represented 1.34 per cent to close at 23,916.15 points.
Summary of price changes shows that 38 equities appreciated in price during the week, higher than 27 equities of the preceding week.

Twenty-Nine equities depreciated in price, lower than 41 equities of the previous week, while 123 equities remained unchanged, higher than 122 equities recorded in the preceding week.