It was a four day trading week as the Federal Government of Nigeria declared Monday 13th April (Easter Monday) as public holiday in commemoration of the Easter celebrations, a gain of NGN801.30bn was just the perfect gift Investors on the Nigeria Stock Market needed, having endured steep loses in preceding weeks.
Activity level waned in the week, as volume of shares traded declined from 2.440 billion last week to 1.495 billion this week, while the value of shares traded increased from NGN19.93 billion to NGN12.89 billion, in 20,982 deals against 18,918 deals last week. As usual, the Financial Services industry (measured by volume) led the activity chart with 1.238 billion shares valued at NGN8.424 billion traded in 12,835 deals; thus contributing 82.82% and 65.33% to the total equity turnover volume and value respectively.
Investor Sentiment which is a ratio of gainers over losers remained strong at 1.8, as 37 equities appreciated in price during the week against 35 equities in the previous week, while 21 equities depreciated in price against 18 in the previous week.
Equity Turnover for the week ended 17th April 2020
Date | Volume of Shares Traded | Value of Shares Traded (NGN) | No of Deals | No of Stocks Traded | No of Gainers | No of Losers |
14.04.2020 | 557,819,628 | 2,617,362,536 | 5,310 | 91 | 29 | 12 |
15.04.2020 | 326,444,379 | 3,338,708,297 | 5,166 | 89 | 28 | 11 |
16.04.2020 | 379,110,193 | 4,327,067,090 | 5,985 | 91 | 18 | 20 |
17.04.2020 | 231,605,076 | 2,610,412,469 | 4,521 | 87 | 19 | 9 |
In the week in review, the Nigerian Stock Exchange All-Share Index and Market Capitalization both appreciated by 7.19% to close the week at 22,921.59 points and NGN11.946 trillion respectively. All the major Indices we monitor closed positively.
Index Movement
Week close 09.04.2020 | Week close 17.04.2020 | WTD Change% | MTD Change % | QTD Change % | YTD Change% | |
The NSE All-Share Index | 21,384.03 | 22,921.59 | 7.19 | 7.61 | 7.61 | -14.61 |
NSE Banking Index | 263.53 | 275.99 | 4.73 | 17.01 | 17.01 | -22.66 |
NSE Insurance Index | 117.98 | 118.96 | 0.83 | -0.37 | -0.37 | -5.45 |
NSE Consumer Goods Index | 334.59 | 386.68 | 15.57 | 18.80 | 18.80 | -34.78 |
NSE Industrial Goods Index | 960.57 | 1,010.17 | 5.16 | -2.90 | -2.90 | -6.08 |
The top three price gainers in the week are Nigerian Breweries Plc, Conoil Plc, and Champion Breweries Plc, with gains of 45.74%, 32.32 % and 20.00% respectively. The top three price decliners were Nigerian Aviation Handling Company Plc, Ardova Plc, and Arbico Plc, with loses of 11.25%, 10.22%, and 9.82% respectively.
Views of analysts @investogist
The market valuations of several fundamentally sound stocks on the stock exchange has been at very attractive prices since last month, and therefore present attractive entry positions for investors; both long term Investors and bargain hunting speculators. That notwithstanding, We maintain our negative outlook for the market given the prevailing problems of the Covid-19 Pandemic and the low oil prices despite the record production cuts seen at the beginning of the week. Prudent evaluation of individual stocks is advised, to ensure that the company being invested in has the capacity to weather the recession predicted in many quarters, while maintaining it’s profitability and return value as well as dividend to it’s shareholders.
Written by:
Basil Maduakor
Analyst/Writer @Investogist
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