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Investors in the Nigerian equities market smiled home again last week as the market overcame the negative sentiment towards the end of the week to close higher.
The previous weeks have been good for investors because the market recorded consistent gains with the help of some better-than-expected full year 2013 and first quarter 2014 results.
Traders believe the negative sentiment towards the end of last week was caused by activities of some anxious investors took profit, stressing that the days ahead will be positive as more investors scramble for undervalued stocks.
“We expect this positive momentum will continue towards the first half of next week as investors might seek to capitalise on undervalued stocks particularly the banking stocks. Overall, we expect market breath to stay relatively positive within the period," said a trader.
It was a four-day trading week as the Federal Government of Nigeria declared Monday 21st April 2014 as a public holiday to mark and Easter celebration.
Meanwhile, the gains recorded last week Tuesday and Wednesday impacted the market positively as the Nigerian Stock Exchange (NSE) All-Share Index(ASI) and the market capitalisation appreciated by 0.58 per cent and 2.98 per cent to close Friday at 39,311.60 and N12.928 trillion respectively.
In the same vein, all the NSE Indices appreciated during the week with the exception of the NSE Consumer Goods Index and NSE-Lotus II that shed 0.76 per cent and 0.84 per cent respectively; while the NSE ASeM closed flat.
Summary of Daily Performance
The market maintained positive trend at the resumption of trading last Tuesday as the benchmark index went up 0.21 per cent to close at 39,408.33 points from 39,325.98 attained the previous Thursday.
At the close of business for the day, a total number of 24 stocks recorded gains while 18 stocks declined, leaving 58 stocks unchanged. PZ Cussons Plc emerged as the top gainer as it appreciated by 4.99 per cent to close at N35.12, closely followed Access Bank Plc which gained 4.96 per cent to close at N8.67.
Others on the gainers chart included Okomu Oil Palm Plc, Stanbic IBTC Holdings Plc and Skye Bank Plc.
The market sustained its positive momentum on Wednesday, as the benchmark index recorded a 0.46 per cent climb to close at 39,590 points, supported primarily by the non-financial stocks. Accounting for a cumulative of 147pts of the 181.28 points rise were Dangote Cement Plc, Unilever Nigeria Plc and PZ Cussons Plc.
However, market activity level was mixed on the back of the 4.3 per cent decline and 6.4 per cent rise in volume and value of transactions respectively, relative to previous close. Overall, a total of 356.51 million units of shares worth N52.7billion exchanged hands in 5,221 deals on the day.
The banking subsector accounted for 73 per cent and 71 per cent of the volume and value of trades consummated.
The equities market closed lower Thursday as the benchmark index depreciated by 0.46 per cent to close at 39,011.90 from 39,194.09 attained on Wednesday, while market capitalisation also decreased to N12.82 trillion from N12.88 trillion recorded the previous trading day.
The depreciation in the Index could be attributed to the losses recorded in the share prices of some highly capitalised stocks such as: GT Bank Plc, Nigerian Breweries Plc, Dangote Cement Plc, Access Bank Plc and Union Bank Plc amongst others.
At the close of trading for the day, the total value of the stocks traded on the floors of the NSE was N15 billion, up by 184.55 per cent from N5.27 billion traded Wednesday. The total volume traded was 1,045.84 million in 4,543 deals.
Analysis of trading activity for the week showed that in all, turnover of 2.059 billion ordinary shares worth N27.839 billion in 20,413 deals were traded by investors on the floor of the Exchange in contrast to a total of 1.532 billion shares valued at N14.309 billion that exchanged hands the previous week in 17,704 deals.
The financial services industry (measured by volume) led the activity chart with 1.872 billion shares valued at N18.429 billion traded in 12,470 deals; thus contributing 90.94 per cent and 66.25 per cent to the total equity turnover volume and value respectively.
Conglomerates followed with a turnover of 61.227 million shares worth N375.477 million in 1,079 deals. The third place was occupied by the Consumer Goods Industry with 57.913 million shares worth N6.575 billion in 2,946 deals.
Trading in the top three equities- United Bank for Africa Plc, FBN Holdings Plc and Zenith Bank Plc. (measured by volume) accounted for 1.299 billion shares worth N14.926 billion in 4,664 deals, contributing 63 per cent and 53.66 per cent to the total equity turnover volume and value respectively.
Also traded during the week were a total of 12,184 units of Exchange Traded Products (ETPs) valued at N425,438.88 executed in 16 deals compared with a total of 23,153 units of valued at N622,765.88 million transacted last week in 14 deals.
Similarly, 1000 units of FGN bonds valued at N1.201million were traded this week in one deal.
Gainers and Losers
Meanwhile, the price movement chart of the NSE displayed a total of 32 equities that appreciated during the week higher than 31 equities of the preceding week.
Thirty-eight equities depreciated in prices lower than 42 equities of the preceding week, while 129 equities remained unchanged higher than 125 of the preceding week.
The top 10 gainers in the top 10 category were: PZ Industries Plc (N3.55), Unilever Nigeria Plc (N2.29), Stanbic IBTC Holdings Plc (N1.64), Costain (West Africa) Plc (16 kobo), Livestock Feeds Plc (24 kobo), FBN Holding Plc (92 kobo), Skye Bank Plc (23 kobo), Eterna Plc (18 kobo), Courtville Investments Plc (3 kobo) and RT Briscoe Nigeria Plc (5 kobo).
On the other hand, the top 10 losers included: Seplat Petroleum Development Company Plc (N68.79), Total Nigeria Plc (N10.30), International Energy Insurance Plc (9 kobo), UBA Capital Plc (31 kobo), Oasis Insurance Plc (4 kobo), Airline Services and Logistics Plc (15 kobo), Pfizer Products Plc (7 kobo), Transnational Corporation of Nigeria Plc (19 kobo), Ikeja Hotel Plc (3 kobo) and IPWA Plc (3 kobo).