The four day trading week closed in green. The Federal Government of Nigeria declared Friday 12th June 2020 as Public Holiday to mark the Democracy Day celebrations.
The NSE All-Share Index and Market Capitalization both appreciated by 0.67% to close the week at 25,182.67 and N13.137 trillion respectively.
A total turnover of 1.103 billion shares worth N9.876 billion in 16,616 deals were traded this week on the floor of the Exchange by investors, in contrast to a total of 1.469 billion shares valued at N23.553 billion that exchanged hands the previous week in 22,911 deals.
The activity level waned in comparison to previous week. However, the decline in volume and value of shares traded, could be attributed to shorter trading days in the week, compared to preceding week.
Fig 1: Nigerian Stock Exchange ASI Versus Activity Level, YTD
The Financial Services industry (measured by volume) led the activity chart as usual. It contributed 73.82% and 72.76% to the total equity turnover volume and value respectively, with 814.292 million shares valued at N7.186 billion traded in 8,352 deals.
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The Oil and Gas industry followed with 66.78 million shares worth N143.050 million in 1,044 deals. The third place was the Consumer Goods industry, with a turnover of 57.842 million shares worth N1.022 billion in 2,559 deals.
Trading in the top three equities namely Mutual Benefits Assurance Plc, Guaranty Trust Bank Plc and FBN Holdings Plc. (measured by volume) accounted for 485.307 million shares worth N5.048 billion in 2,683 deals, contributing 44.00% and 51.11% to the total equity turnover volume and value respectively.
Going into week, the cautious mode seen last week is likely to persist, given that this is last month of this quarter. The full impact of the lockdown imposed in a bid to curtail the spread of Covid-19, will be felt in the Q2 financial reports.
The N10.805 trillion 2020 budget which was passed by the National Assembly might give a boost to the market. However, the concern towards the increasing debt burden coupled with falling oil prices might wane the effect of the budget.
Read more; Senate Approved $28 billion Foreign Loan for FG in One Year – Sen. President
Table 1: Stock Pick for the week ahead; 15th June to 19th June 2020
Written by
Ifunanya Ikueze
Disclaimer: Any person accessing this information and considering potential investment opportunities featured here should make their own commercial assessment of an investment opportunity after seeking the advice of an appropriately authorized or regulated financial advisor. This information should not be construed as advice or a personal recommendation to any prospective investor.
