The first week of trading on the Nigerian Stock Exchange started on a positive footing on Monday, endured a decline on Tuesday, then recorded mild gains on Wednesday and Thursday, and ended the week on loses due to decline in the prices of the two most capitalized companies on The Exchange.
Buoyed by +9.9% gain in the price of BUA Cement shares, supported by GUARANTY and WAPCO, the benchmark All-Share Index (NSE ASI) advanced 2.2% on Monday. BUA Cement share prices reversed course on Tuesday, shading 5.9%, dragging down the index with it in the process. MTNN (-2.8%) and Zenith Bank (-4.3%) shares’ decline also contributed to the 1.8% loss recorded on Tuesday.
The market made a mild recovery on Wednesday, gaining 0.2%, spearheaded by Zenith Bank Plc (+2.0%), UBA (+2.4%) and International Breweries Plc (+2.5%). Thursday’s session recorded another mild gains on the back of Seplat Petroleum (+10.0%), advancing by 0.3% to close the day at 40,490.85 points, while the market capitalization closed at N21.2 trillion.
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Any hopes of a positive close for the first week of trading in 2021 was snuffed out by Dangote Cement Plc and MTNN. The two market heavy weights lost 8.1% and 2.8% respectively, causing the NSE ASI to shade 1.16% on the weeks’ last day of trading.
The NSE All-Share Index and Market Capitalization depreciated by 0.37% to close the week at 40,120.22 and N20.978 trillion respectively.
A total turnover of 3.394 billion shares worth N19.867 billion in 26,808 deals were traded this week by investors on the floor of the Exchange, in contrast to a total of 1.806 billion shares valued at N25.966 billion that exchanged hands last week in 14,634 deals.
The Consumer Goods Industry (measured by volume) led the activity chart with 2.026 billion shares valued at N7.503 billion traded in 4,031 deals; thus contributing 59.70% and 37.77% to the total equity turnover volume and value respectively.
The Financial Services Industry followed with 939.288 million shares worth N7.820 billion in 14,020 deals. The third place was Conglomerates Industry, with a turnover of 139.882 million shares worth N182.151 million in 885 deals.
Trading in the top three equities namely Champion Breweries Plc, Transnational Corporation of Nigeria Plc and Access Bank Plc (measured by volume) accounted for 2.144 billion shares worth N6.002 billion in 1,971 deals, contributing 63.18% and 30.21% to the total equity turnover volume and value respectively.
Fig 1: Investogist Activity Chart – NSE All-Share Index vs Activity level (measure of volume and value of traded shares)
Fig 2: Investogist Activity Chart – Market Capitalization vs No of deals
In the week ending 8th January, 2020, the Oil & Gas Index and Insurance Index were the top performers, while the Industrial Goods Index was the only index under our watch that declined.
- Oil & Gas Index: +13.16%
- Insurance Index: +9.49%
- Banking Index: +3.21%
- Consumer Goods Index: +2.58%
- Industrial Goods Index: -2.29%
Fifty (50) equities appreciated in price during the week, higher than thirty- two (32) equities in the previous week. Twenty- one (21) equities depreciated in price, lower than thirty- two (32) equities in the previous week, while ninety (90) equities remained unchanged, lower than ninety-seven (97) recorded in the previous week.
Fig 3: Top gainers and losers. Source – NSE Weekly Report
Bonds
A total of 10,051 units valued at N12.591 million were traded this week in 27 deals compared with a total of 5,218 units valued at N5.773 million transacted last week in 12 deals.
ETPs
A total of 196,294 units valued at N816.553 million were traded this week in 38 deals compared with a total of 26,141 units valued at N185.334 million transacted last week in 35 deals.
Outlook
We expect bargain hunting to drive performance in the coming week as Investors’ position for dividends.
By; Nnamdi M.
