DANGCEM, MTNN, ARDOVA, Banking Stocks, others gain as Nigerian Equities Market surge 3.96%

The second week of November for The Nigerian Stock Exchange (The NSE) starts where the first week left off, with the bench mark All-Share Index (NSE ASI) gained 3.96% to close the day at 32,243.05 points.

Investors’ gained N641.08 billion, as the market capitalization grew to N16.847 billion. More than 10 stocks ranging from FIDELITYBANK, WAPCO, FCMB, TRANSCORP, MBENEFIT, LINKASSURE amongst others recorded the highest possible gains in todays trading session.

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Activity Level

Activity level improved, as stocks valued at N8.244 billion was traded, a 57.66% increase on the value traded on Friday, the last trading session of the preceding week. The volume was stock traded was 636.010 million, less than a percent lower than the volume traded on Friday.

These trades were done in 7,210 deals, with the number of deals done being 13.47% higher than the number recorded on Friday,

ZENITHBANK was the most traded stock by volume with 70.223 million units of shares valued at N1.663 billion exchanging hands in 777 deals.

The second and third most traded stocks by volume are FBNH with 67.651 million shares traded and ACCESS with 58.020 millions shares traded.

ZENITHBANK was also the most traded stock by value, followed by MTNN with 8.075 million shares valued at N1.215 billion exchanging hands in just 133 deals. The third most traded stock by value was GUARANTY, which saw N757.217 million worth of shares traded in 404 deals.

Performance of Indices

All 5 indices under our watch had a sublime performance;

1. Banking Index was up by 6.6% on the back of strong gains across most banking stocks; FCMB, FIDELITYBANK, ZENITH, GUARANTY, UBA, ETI, FBNH, ACCESS, WEMA, JAIZ, UNITYBANK etc
2. Industrial Goods Index was up by 6.5%, propelled by strong gains in its high Cap. stocks; DANGCEM (+6.0%), WAPCO (+10.0%), and BUACEMENT (+4.4%).
3. Consumer Goods Index advanced by 1.8% with DANGSUGAR (+9.7%) and FLOURMILLS (+4.6%) leading the way.
4. Insurance Index advanced by 1.6% pushed by LINKASSURE (+10.0%) and MANSARD (+4.0%).
5. Oil & Gas Index also advanced by 1.0% propelled by gains in ARDOVA (+6.3%).

Investor Sentiment

Investor sentiment as measured by market breadth (advance/decline ratio) settled at 4.5x, an improvement from the 2.8x recorded in the previous trading day as 49 stocks gained against the 11 that declined.

Top five gainers by percentage;

• MBENEFIT rose by 10.00% to close at N0.22
• NNFM rose by 10.00% to close at N6.05
• OANDO rose by 10.00% to close at N13.50
• WAPCO rose by 10.00% to close at N21.45
• STERLINBANK rose by 10.00% to close at N2.00

Top five losers by percentage;

• NCR lost 10.00% to close at N1.80
• LEARNAFRCA lost 8.70% to close at N1.05
• CONOIL lost 6.30% to close at N17.85
• WAPIC lost 4.55% to close at N0.42
• PZ lost 3.12% to close at N4.65

Corporate Disclosure

1. Learn Africa Plc (LEARNAFRCA) released its Quarter 2 financial statement for 2021
2. Mutual Benefits Assurance (MBENEFIT) released its Quarter 3 financial statement for 2020
3. Flour Mills Nig. Plc (FLOURMILLS) gave a notification of share dealing by an insider.
4. United Capital Plc (UCAP) gave notification of insider dealing

Analysts’ view

We expect the market performance to continue in the medium term, and supported by the news about Covid-19 vaccine and increasing oil prices.

By; Nnamdi M.