In sharp contrast to the preceding week, it was a perfect week for Investors on The Nigerian Stock Exchange (NSE), as the All-Share Index advanced in 5 out of the 5 trading sessions.
The NSE All-Share Index and Market Capitalization appreciated by 7.46% to close the week at 36,804.75 and N19.236 trillion respectively.
The week started with a 1.7% gain for the NSE ASI, due to buying interest in high cap. stocks; AIRTELAFR, DANGCEM and WAPCO. The Index rose to 35,225.22 on Tuesday, and then to 35,544.70 points on Wednesday, 16th December 2020.
- Read also; The US Dollar to remain the dominant reserve currency for central banks – IMF
- P+ Measurement Services launches an improved Media Audit report to enhance clients’ efficiency
The uptrend was maintained on Thursday as the benchmark index rose by 2.10% due to gains in AIRTELAFR, DANGCEM and ZENITHBANK. It capped it off on Friday, 18th December with a 1.56% gain to close the week at 36,804.75.
A total turnover of 1.893 billion shares worth N17.647 billion in 20,660 deals were traded this week by investors on the floor of the Exchange, in contrast to a total of 2.265 billion shares valued at N20.990 billion that exchanged hands last week in 23,722 deals.
The Financial Services industry (measured by volume) led the activity chart with 1.489 billion shares valued at N8.385 billion traded in 10,834 deals; thus contributing 78.65% and 47.52% to the total equity turnover volume and value respectively.
The Consumer Goods Industry followed with 106.986 million shares worth N2.360 billion in 3,447 deals. The third place was Services Industry, with a turnover of 74.754 million shares worth N191.833 million in 448 deals.
Trading in the top three equities namely Jaiz Bank Plc, FBN Holdings Plc and Niger Insurance Plc (measured by volume) accounted for 761.866 million shares worth N1.468 billion in 1,395 deals, contributing 40.25% and 8.32% to the total equity turnover volume and value respectively.
The activity level waned in the week, as the volume of shares traded decreased by 16.41%, while the value of shares traded decreased by 15.93%
Fig 1: Investogist Activity Chart – NSE All-Share Index vs Activity level (measure of volume and value of traded shares)
Fig 2: Investogist Activity Chart – Market Capitalization vs No of deals
As at the end of trading on Friday, 18th December, the NSE ASI was up by 37.12% YTD. The performances of the 5 indices under our watch so far this year are presented below;
- Industrial Goods Index: +54.29%
- Insurance Index: +39.64%
- Banking Index: +11.92%
- Consumer Goods Index: -3.08%
- Oil & Gas Index: -15.18%
In the week ending 18th December, 2020, all the 5 indices under our watch advanced;
- Insurance Index: +13.39%
- Industrial Goods Index: +7.74%
- Banking Index: +5.12%
- Consumer Goods Index: +3.08%
- Oil & Gas Index: +1.34%
Fifty- three (53) equities appreciated in price during the week, higher than thirteen (13) equities in the previous week. Seventeen (17) equities depreciated in price, lower than forty-six (46) equities in the previous week, while ninety-one (91) equities remained unchanged, lower than one hundred and two (102) recorded in the previous week.
Top gainers and losers in the week are;
Fig 3: Top gainers and losers. Source – NSE Weekly Report
The following companies had their share prices adjusted in the week;
- AXA Mansard Insurance Plc (MANSARD) was adjusted to N0.64 on 15th December, from N2.20 closing price on 14th December, for the 17 for 7 bonus shares.
- NEM Insurance Plc was adjusted to N1.24 on 17th December, from N2.35 closing price on 16th December, for the 9 for 10 bonus shares.
Japaul Oil & Maritime Services Plc notified dealing members of that the change of its name from Japaul Oil & Maritime Services Plc (JAPAULOIL) to Japaul Gold & Ventures Plc (JAPAULGOLD) has been implemented by The Nigerian Stock Exchange.
Bonds
A total of 47,699 units valued at N53.129 million were traded this week in 22 deals compared with a total of 13,555 units valued at N17.369 million transacted last week in 8 deals.
ETPs
A total of 412,358 units valued at N1.396 billion were traded this week in 40 deals compared with a total of 292,510 units valued at N2.270 billion transacted last week in 45 deals.
Outlook for the week ahead
The rising cases of Covid-19 in what is being termed the second wave, and any subsequent government action to shutdown the economy will dictate the market direction in the coming week.
by; Nnamdi M.
