Transnational Corporation of Nigeria (Transcorp) and United Bank of Africa (UBA) topped the Nigerian stocks market total volume transactions in the year 2017.
Analysis on equities transaction by volume revealed that Transcorp topped by volume as the stock traded 15.82 billion volume of share in 2017. UBA followed with 7.71 billion volumes, Zenith Bank came third with 6.82 billion volumes, while FBN Holdings traded a total volume of 6.726 billion shares.
Trading activities in the Nigerian equities market closed the year 2017 with its highest return since 2013 and the third best in the last 10 years. The stock exchange all share index closed at 38,243.19 compared to a 2016 close of 26,874.60, representing a 42.30 per cent return for stocks for the year ended December 2017.
Analysis on market turnover revealed that total volume traded increased by 25.49 per cent in 2017 to 95.286 billion shares as against a total of 75.933 billion shares traded in 2016. Also, total value of shares traded increased by 112.80 per cent in 2017 to N1.178 trillion as against total value of N553.611 billion recorded in 2016.
Market records 65 gainers and 42 losers in 2017 as against 32 gainers to 79 losers in 2016. Financial services sector tops other sectors with 70.57 per cent contribution to the total volume traded on the Exchange in 2017 as against 80.02 per cent contribution recorded in 2016. Conglomerates and Consumer Goods sectors follow closely on the table.
Financial services traded 67.24 billion volumes in 2017 to lead the pack, Conglomerates and Consumer Goods sectors came second and third with 16.28 billion and 4.60 billion volumes traded respectively while Natural resources sector traded the least volume with 41.26 million volume traded.
Going into the new year of 2018, capital market analysts said “our near term outlook for the equity market remains positive due to improving fiscal and current account balances, supported by rising oil prices, which is expected to have positive knock-on impacts on FX market stability and earnings.”
They however said, a major downside risk is the upcoming General Elections which could weigh on polity stability and lead to more short-term thinking in economic policymaking. Analysts at Nairametrics, a financial resource company, noted that while it is unlikely that the index will record another 45 per cent return in 2018, stocks that still remain significantly undervalued will continue to attract investor participation.
They projected a double digit rise in company profits in 2018 compared to 2017, saying, “This is on the back of the nine months results released by most blue chip listed companies.”