Nigerian Equity market opened the week in an astounding note, extending the gains that were seen last week at a higher rate on Monday. The All Share Index advanced by 2.11%, firming YTD return at +2.65%. This is the highest level to be seen in more than six months.
The market capitalization jumped to N14.402 trillion.
Strong gains were seen on Monday with seven stocks rising by more than 8% including GLAXOSMITH (+10%), FIDELITYBK (+8.11%).
12 equities recorded gains of between 5% to 8%, among them are, GUINNESS (+7.14%), ARDOVA (+6.36%), WAPCO (+5.61%), AIRTELAFRI (+5.32%). FBNH, ACCESS, and ZENITHBANK rose by 6.73%, 5.97%, and 5.26% respectively.
17 equities appreciated by less than 5%, including MTNN (+3.85%), SEPLAT (2.88%), GUARANTY (2.41%) etcetera.
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Activity level
The activity level intensified with volume and value of transactions jumping by 31.35% and 72.48% respectively to 603.946 million and N7.424 billion.
Four out of the top five traded equities by volume were banking stocks. The most-traded equity by volume was ZENITHBANK, accounting for 33.89% of the total volume and 51.63% of the total value of trades on the Exchange on Monday.
204.685 million shares of ZENITHBANK valued at N3.833 billion exchanged hand in 941 deals. It was tailed by STERLNBANK with 55.23 million shares and UBA with 51.30 million shares.
In terms of value, ZENITHBANK was followed by GUARANTY with 36.310 million units of shares valued at N1.073 billion and UBA with a value of N328.849 million.
Performance of Indices
All five indices under our watch recorded gains, reflecting the positive mood in the market;
- The Banking Index was up by 3.37%
- The Insurance Index increased by 2.04%
- The Oil and Gas Index rose by 0.84%
- Consumer Goods Index grew by 0.38%
- The Industrial Goods Index advanced by 0.38%
Investor sentiment
Investor sentiment as measured by market breadth (gain/loss ratio) was strong at 3.60x as gainers outnumbered decliners, with 36 gainers and 10 losers.
The top five gainers by percentage and closing prices are;
- GLAXOSMITH rose by 10.00% to close at N5.50
- REDSTAREX rose by 10.00% to close at N3.30
- NPFMCRFBK rose by 9.60% to close at N1.37
- AFRIPRUD rose by 9.47% to close at N5.20
- NEIMETH rose by 8.33% to close at N1.95
The top five decliners by percentage are;
- TRIPPLEGS lost 10.00% to close at N0.36
- OANDO lost 8.73% to close at N2.09
- UAC-PROP lost 6.52% to close at N0.86
- CHAMS lost 4.76% to close at N0.20
- UBN lost 2.00% to close at N4.90
Naira value appreciated to N458/$1 on Monday from N465/$1 it exchanged on Friday at the parallel market.
Global Market performance;
All major Global Indices recorded gains except for Shanghai which was down by 0.20%.
Dow Jones closed up by 1.68%
S&P 500 up by 1.80%
NASDAQ 100 up by 2.25%
FTSE 100 up by 0.69%
NIKKEI 225 up by 1.23%
Analysts’ view
As the release of Q3 2020 earnings is around the corner, we expect the rebound seen in the market to continue for fundamentally sound stocks, as investors take position ahead of the earnings release season amid potential profit-taking.
By; Ifunanya Ikueze
