As earnings reporting season draws closer, with less than three weeks to the general elections, the nation’s equities market has continued to trend upwards, occasioned by price gains in banking and some blue chip stocks with track records of dividend payment in the last four to five years.
The development comes just as the Central Bank of Nigeria (CBN) is planning a stiff regulation on the banks’ capital formation before the end of second quarter 2019, to make the financial institutions stronger, reduce the effects of non-performing loans, among others.
Specifically, at the end of last week’s transactions, the Nigerian Stock Exchange (NSE) All-Share Index and market capitalisation appreciated by 1.36 per cent to close at 31,426.63 points and N11.719 trillion respectively.
Similarly, all other indices finished higher with the exception of the NSE ASeM, NSE Consumer Goods, NSE Oil/Gas, NSE Lotus II and NSE Industrial Goods that depreciated by 0.17 per cent, 0.41 per cent, 1.32 per cent, 0.60 per cent and 2.02 per cent respectively.
The financial services industry (measured by volume) led the activity chart with 1.625 billion shares valued at N14.696 billion traded in 11,778 deals; thus contributing 89.93 per cent to the total equity turnover volume.
The conglomerates industry followed with 83.560 million shares worth N138.309 million in 951 deals, while the third place was occupied by the consumer goods industry with a turnover of 36.251 million shares worth N1.002 billion in 2,224 deals.
Trading in the top three equities – Diamond Bank Plc, Access Bank Plc and Guaranty Trust Bank Plc (measured by volume) accounted for 871.524 million shares worth N8.488 billion in 3,305 deals, contributing 48.23% to the total equity turnover volume.
Consequently, turnover of 1.807 billion shares worth N17.232 billion in 18,332 deals were recorded by investors on the floor of the exchange, higher than a total of 1.270 billion shares valued at N13.463 billion that was exchanged in 16,476 deals during the preceding week.
Analysts at Investdata Consulting Limited said the possibility of profit taking being the last trading day of the week is high in the midst of sustained volatility, as investors continue to reposition for 2019 dividend declaration season that will shape market performance after the elections.
“We advise cautious trading and investing, while positioning in fundamentally sound equities.
The ongoing volatility will persist as investors and fund managers reposition their portfolios, with eyes fixed on political space and ahead of full year company earnings position and post-election market dynamics.
For Afrinvest Securities Limited, “we believe appetite for value stocks will remain upbeat in the near term.
Nonetheless, we expect to see profit taking activities at the start of the coming week. However, we maintain our bearish outlook for the market in the near-term.”
On the price movement chart, 40 equities appreciated in price during the week, higher than 38 in the previous week. 25 equities depreciated in price, lower than 29 of the previous week, while 103 equities remained unchanged higher than 102 equities recorded in the preceding week.
Also traded during the week were a total of 34,341 units of Exchange Traded Products (ETPs) valued at N440,166.37 executed in seven deals compared with a total of 55 units valued at N5,610.00 that was transacted last week in two deals.
A total of 3,498 units of Federal Government Bonds valued at N3.131 million were traded this week in 20 deals compared with a total of 3,573 units valued at N3.764 million transacted last week in 24 deals.
Meanwhile, 745,234,886 additional ordinary shares of May & Baker Plc were listed on the daily official list of the NSE on Thursday, 24 January 2019.
The additional shares listed arose from May & Baker’s Rights Issue of 980,000,000 ordinary shares of 50 kobo each at N2.50 per share on the basis of one new ordinary shares for every one ordinary shares held as at four September 2018.
According to NSE, the listing of the additional 745,234,886 ordinary shares, the total issued and fully paid up shares of May & Baker has now increased from 980,000,000 to 1,725,234,886 ordinary shares.