NSE DG, Oscar Onyema
By Goddy Egene and Eromosele Abiodun
Investors in equities had a broad smile last week as the market reversed the negative performance recorded in the last two weeks to close higher last week. The gaining streak on the bourse was as a result of strong buy interests for stocks.
Traders told THISDAY that the increase in buy interests was an indication that investors were enhancing their portfolio positions in view of the anticipated rally in the corporate earnings season.
The stock market had maintained its lacklustre performance the previous week following negative reaction to weaker-than-expected results released by Nigerian Breweries Plc and Guinness Nigeria Plc.
Meanwhile, trading resumed on a positive note last Monday as the benchmark index gained 0.13 per cent helped by investors’ interests in insurance stocks. Most of the undervalued securities in insurance sub-sector have strong potentials to appreciate. Stock prices again rose on Tuesday sustaining the gains of the previous trading day as investors overwhelming purchase of blue-chip stocks lifted the market to record its highest gain this March.
Similarly, the market went up on Wednesday, though with a slight northward movement as investors take profits on winning stocks. Securities traders engaged in broad sell down of the shares of Oando Plc on Wednesday, as investors are uncertain of the company’s corporate action. However, the banking stocks received keen buy interests from the investors.
However, stock prices fell on Thursday, as investors took profits on winning stocks causing a break in the extended gains witnessed on the bourse. Notably, the share price of Oando Plc, banking stocks and those of the manufacturing sectors witnessed sell pressure as their sectoral indices retreated.
The market remained southward at the close of business last Friday, as investors continue with profit taking activities on blue chip stocks.
The negative sentiment last Friday was unable to derail the market as most market indicators closed the week firmer led by the twin market gauge. Analysis of trading results showed that the All-Share Index appreciated by 0.31 per cent to close at 32.950.08 points. Similarly, the equities market capitalisation gained N32.309 billion to close at N10.544 trillion. Also, the NSE 30 Index, which mirror the 30 most capitalised stocks appreciated by 0.36 per cent to close at 1,578.47.
Four of the NSE sectoral indices appreciated: the NSE Consumer Goods, the NSE Insurance, the NSE Oil/Gas and NSE-Lotus II rose by 2.01 per cent, 1.33 per cent, 1.87 per cent, 0.77 per cent respectively, while the NSE Banking declined by 0.80 per cent to close at 411.36 points.
Market Turnover
A further review of the market performance for the week showed that a turnover of 2.550 billion shares worth N21.694 billion in 29,335 deals were transacted last week in contrast to a total of 1.928 billion shares valued at N20.990 billion that exchanged hands the previous week in 28,832 deals. The financial services sector was the most active during the week contributing 81.20 per cent to the turnover volume of 2.071 billion shares valued at N14.281 billion exchanged hands by investors in 16,956 deals. With transactions exchanged in 11,659 deals, the banking sub-sector was the most active during the week (measured by turnover volume) of 1.618 billion shares worth N12.279 billion.
The volume of shares sold in the financial sector was boosted by activities in the shares of Unity Bank Plc, U B A Plc, Ecobank Transnational Incorporated Plc which accounted for 965.890 million shares, representing 59.71 per cent, 46.65 per cent and 37.88 per cent of the turnover recorded by the subsector, sector and total equity for the week, respectively.
During the week, 577 units of NewGold Exchange Traded Funds (ETFs) valued at N1.405 million were traded in 7 deals compared with a total of 846 units valued at N2.035 million transacted last week in 7 deals.
Also, 2,020 units of FGN bonds valued at N2.422 million were traded during the week in 20 deals in contrast to 2,536 units valued at N3.096 million transacted last week in 26 deals.
Price Change Summary
A review of the equity price movements last week indicated that 41 equities gained while 37 equities recorded price declines and 119 equities remained constant. When compared with the preceding week, 36 equities gained while 44 equities recorded price declines and 117 equities remained constant. The top 10 gainers were: Total Nigeria Plc (N12.89), Guinness Nigeria Plc (N10.50), Nestle Nigeria Plc (N7.00), Nigerian Breweries Plc (N4.30), Lafarge WAPCO Plc (N2.88), Northern Nigeria Four mills Plc (N2.28), Cement Company of Northern Nigeria Plc (N2.18), Forte Oil Plc (N1.45), Unilever Nigeria Plc (N1.36) and UACN Property Development Company Plc (N1.10). On the other hand, the top 10 losers were: Presco Plc (N1.79), Access Bank Plc (N1.30), Glaxo Smithkline Consumer Nigeria Plc (N1.10), Oando Plc (N1.09), Mobil Oil Nigeria Plc, Ashaka Cement Plc, Julius Berger Nigeria Plc and Dangote Cement Plc (N1.00 each), Portland Paint & Products Nigeria Plc (35 kobo) and DN Meyer Plc (24 kobo).
Outlook for the Week
Analysts at FSDH Merchant Bank believe there may be increased demand for equities in the weeks ahead as investors move more cash to the stock market following decline in fixed income instruments.
“As yields on fixed income securities continue to drop in the market, we expect investors to change strategy in favour of mid-cap stocks that have prospects for growth. Some stocks may release their FY 2012 earnings to the market next week. The way the market perceives the results will dictate the direction of the market. We advise investors to consider investment opportunities in the under listed stocks, as they have good fundamentals that can generate good returns in the medium to long- term,” they stated.
On their part analysts at BGL Limited noted: “During the course of the week, the market moved in both directions as investors’ diverse actions trailed the market. While institutional investors were enhancing their portfolio position in the market through buy actions, speculative investors typically engaged in profit taking activities which caused the market to close bearish.
“Investors and analysts are full of high expectations for the corporate earnings release of listed companies going by the impressive quarterly reports for 2012. Most deposit money banks witnessed significant incomes from fixed income trading last year as reflected in their strong earnings positions for the successive quarters of 2012.”
From www.thisdaylive.com
