The nation’s equities market, last week, recorded the largest weekly returns in two-years to become the world’s best performing stock market for the week.
Specifically, the Nigerian Stock Exchange (NSE) All-Share Index (ASI) and market capitalisation appreciated by 9.07 per cent and 16.55 per cent to close the week at 29,415.39 points and N15.175 trillion respectively.
All other indices finished higher with the exception of NSE Oil/Gas index, which depreciated by 0.04.per cent and NSE ASeM Index, which closed flat.
Also, the enthusiasm, which greeted the listing of BUA Cement boosted investors’ appetite for stocks, especially at the twilight of the week.
Furthermore, investors’ interest in Dangote Cement and Presco Plc, further pushed up the market indicators on the Exchange.
Analysts expect profit taking to dominate activities this week, but, however, predicted further rally as the elevated maturities from fixed income instruments hunt for investment vehicles.
For instance, analysts at Codros Capital Limited, said: “Looking ahead, while we expect profit-takers to dominate activities in the coming week, we still see significant leg-room for a further rally as the elevated maturities from fixed income instruments hunt for investment vehicles. Nonetheless, we advise investors to cherry-pick fundamentally sound stocks.”
The Chief Research Officer of Investdata Consulting Limited, Ambrose Omodion, said the benchmark index for the first six trading sessions of the year gained 9.51 per cent, which is already a pointer that the market recovery expected in the year 2020 has started.
“This is especially as the Central Bank of Nigeria (CBN) retains the 65 per cent Loan-Deposit Ratio, while lending rates drop further in a low-interest rate regime, which is expected to support the general economy and stock market.
“We note that in the history of Nigeria, this is the first time money market rates are going this low, as the monetary authorities try to stimulate productivity that will drive growth while employing proactive initiatives with a focus on its price stability mandate.
“We expect a mixed performance on profit-booking and position-taking as investors take advantage of low prices, ahead of economic data and portfolio managers repositioning for the New Year.”
A turnover of 2.683 billion shares worth N32.646 billion was recorded in 30,956 deals on the floor of the exchange, in contrast to a total of 2.309 billion units valued at N21.675 billion that changed hands in 14,906 deals during the preceding week.
The financial services industry (measured by volume) led the activity chart with 2.035 billion shares valued at N18.592 billion traded in 18,876 deals; thus contributing 75.87 per cent to the total equity turnover volume.
The conglomerates industry followed with 225.720 million shares worth N504.123 million in 1,217 deals.
The third place was the consumer goods industry, with a turnover of 123.382 million shares worth N3.116 billion in 3,403 deals.
Trading in the top three equities namely, United Bank for Africa Plc, Zenith Bank Plc and Wapic Insurance Plc (measured by volume) accounted for 934.661 million shares worth N10.925 billion in 7,194 deals, contributing 34.84 per cent and 33.46 per cent to the total equity turnover volume and value respectively.
A total of 15,390 units of Exchange Traded Products, valued at N13.095 million, were traded during the week in 32 deals, compared with a total of 4,033 units valued at N4.233 million transacted last week in 26 deals.
Also, a total of 64,840 units of Federal Government bonds valued at N71.362 million were traded this week in 30 deals, compared with a total of 204,300 units valued at N237.207 million transacted last week in four deals.
Still, 51 equities appreciated at price during the week, higher than 44 equities in the previous week and 20 equities depreciated in price, lower than 24 equities in the previous week, while 92 equities remained unchanged, lower than 97 equities recorded in the preceding week.