In the week that saw the CBN’s Monetary Policy Committee (MPC) reduce Monetary Policy Rate (MPR) to 11.5%, the Nigerian Stock Exchange (NSE) posted its highest weekly gains in September. This was a result of the benchmark NSE All-Share Index advancing in each of the trading day in the week.
The NSE All-Share Index appreciated by 2.92% to close the week at 26,319.34. Investors gained N390 billion, resulting in market capitalization advancing by 2.92% as well to N13.755 trillion.
A total turnover of 1.567 billion shares worth N20.559 billion in 18,396 deals were traded this week by investors on the floor of the Exchange. This is in contrast to a total of 1.139 billion shares valued at N12.692 billion that exchanged hands last week in 17,109 deals.
The Financial Services industry (measured by volume) led the activity chart with 1.178 billion shares valued at N9.180 billion traded in 9,900 deals. It contributed 75.14% and 44.65% to the total equity turnover volume and value respectively.
The Consumer Goods industry followed with 90.002 million shares worth N1.688 billion in 2,715 deals. The third place was the ICT industry, with a turnover of 84.667 million shares worth N5.786 billion in 771 deals.
Trading in the top three equities namely Sterling Bank, FBN Holdings Plc and Zenith Bank Plc. (measured by volume) accounted for 612.805 million shares worth N4.311 billion in 3,739 deals. Thus, contributing 39.10% and 20.97% to the total equity turnover volume and value respectively.
The activity chart shows an uptick in both volume and value of traded stocks in the course of the week. The volume of traded stocks in the week increased by 37.57%, correspondingly the value saw an increase by 61.98%.
Other than the volume and value of traded stocks increasing, the number of deals done in the week also increased by 7.52%.
At the end of trading on Friday, 25th September, the NSE ASI was down by 1.95% YTD. The YTD Performances of the 5 indices under our watch are as below.
- Industrial Goods Index: +7.98%
- Insurance Index: +7.76%
- Banking Index: -15.23%
- Consumer Goods Index: -22.63%
- Oil & Gas Index: -26.87%
All the indices under our watch appreciated in the week;
- Consumer Goods Index: +5.99%
- Banking Index: +3.59%
- Industrial Goods Index: +2.44%
- Oil & Gas Index: +1.16%
- Insurance Index: +1.08%
Investor sentiment as measured by market breadth (advance/decline ratio) strengthened further to 1.25x from the 1.03x recorded last week .
Thirty-five (35) equities saw a gain in price during the week, higher than thirty-two (32) equities in the previous week. Twenty-eight (28) equities recorded a depreciation in price. This is lower than thirty-one (31) equities in the previous week. One hundred (100) equities remained unchanged, same as one hundred (100) equities recorded in the previous week.
The price of three stocks saw an adjustment in the week for dividends and bonus. First was REDSTAREX, then AIICO and and lastly UPL. As a result of the adjustment, the stocks started trading at lower prices.
On Monday 21 September, the share price of Red Star Express Plc was adjusted for N0.35 dividend from N3.61 to N3.26.
On Thursday 24 September, the share price of AIICO Insurance Plc saw an adjustment for 1 for 5 bonus share, from N0.86 to N0.72.
While on Friday 25 September, the share price of University Press Plc was reduced by N0.15 dividend from N1.57 to N1.42.
A total of 467 units valued at N564.073.49 were traded this week in 5 deals. In the preceding week, a total of 18,803 units valued at N19.581 million transacted in 8 deals.
A total volume of 10,000,000 units of UCAP2025S1 got admitted to trade at the Nigerian Stock Exchange on Tuesday, 22nd September 2020.
Additional volumes of 33,424,069, 22,948,003, 16,091,696 and 53,685,602 units were added to the following bonds 12.50% FGN JAN 2026, 12.50% FGN MAR 2035, 9.8% FGN JUL 2045 and 12.98% FGN MAR 2050 respectively on Thursday 27th of August, 2020.
ETPs (Exchange Traded Products) Market:
Trading in ETPs in the week totaled 119,603 units with a value of N1.228 million exchanging hands in 16 deals. In comparison, a total of 143,690 units valued at N1.246 billion transacted last week in 19 deals.
The week ahead:
The market enjoyed a good run in the preceding week, for that reason we expect profit taking to take center stage in the coming week.
Furthermore, there is an impending strike action by the Nigerian Labour Congress (NLC) and Trade Union Congress (TUC) in the coming week. Ultimately, this will be on the mind of market participants, possibly reflecting negatively in the market.
In conclusion, we anticipate a decline in the market index in the week.