For Ms. Stock Trader that had bought the shares of PZ CUSSONS Nigeria Plc (TICKER: PZ) on Thursday, 16th April for N4.00, the week could not have started on a better note, as she saw the value of the share jump to N4.8 in the early session of trading, representing a 20% capital appreciation in just two trading sessions. By the end of the day, the joy would have gone as she saw the stock close exactly where she had bought it 2 trading sessions ago; N4.00, and gone was the opportunity to take a handsome profit in a volatile market season. However, Ms. Stock trader can take some consolation in the fact that while she was nursing the anguish of a missed opportunity to book some profits, Mr. Stock trader will have actual loses on his hands. For Mr. Stock Trader realizing that PZ hitherto trading at record lows (5 Years: -86.67% and 2 Years: -82.22%) has a potential to embark on a rally and hence presented an opportunity to make some quick profitable short term trades had bought the stock at N4.8 and watched it close at N4.0, retired for the day with a 16.67% depreciated stock in his books.
The week of trading on the Nigerian Stock Exchange started with a near stagnation of the market All-Share Index, at the end of the first day of trading the NSE ASI declined by only 0.01% to close at 22,920.41 while the market capitalization stood at N11.94tn. The Activity level improved as volume of shares traded increased by 49.2% to 345.4m while the value of shares traded increased by 61.2% to N4.2bn. The top 3 most traded stocks by volume for the day were FBNH with 115,324,222 shares, followed GUARANTY with 51,794,477, and then TRANSCORP with 33,383,418 shares. The top 3 most traded stocks by value were NESTLE (N1.4bn), GUARANTY (N1.1bn) and FBNH (N538.1m).
There was a mixed performance in the 5 sectors whose indices we monitor, as 3 of them closed in gains while the other 2 closed in red, wiping off the gains of the other sectors, hence the reason the ASI barely moved. The Insurance Index recorded 1.11% gain to close at 120.28, on the back of gains by LINKASSURE (+10.0%), the Consumer goods Index gained 1.19% to close at 391.30 buoyed by gains in NB (+6.7%) and NESTLE (+0.8%), while a strong price appreciation in BUACEMENT (+8.5%) saw the Industrial goods Index advance by 4.80% to close at 1,058.68. On the losing side were the Banking Index which dropped 4.01% to close at 264.92 has ZENITH (-5.7%) and GUARANTY (-4.3%) dragged it down, while OANDO (-4.6%) loses contributed to the Oil & Gas Index closing at 208.20, 0.45% down from where it started the day.
Investor Sentiment as measured by market breath (gainers/losers ratio) declined to 0.9x from 2.1x recorded in the previous session, as the market recorded 14 gainers and 15 losers. The top 5 gainers for the day were JBERGER (+10.0%), LINKASSURE (+10.0%), BUACEMENT (+8.48%), NASCON (+7.49%) and NB (+34.50%), while the top losers were GUINNESS (-9.38%), PZ (-9.09%), LIVESTOCK (-7.14%), CHAMPION (-6.25%), and ZENITHBANK (-5.67%).
Moving forward, we maintain our negative outlook for the market, as the prevailing conditions of the economic disruptions due to the Covid-19 Pandemic and the low prices of oil still persist.
Written by:
Basil Maduakor
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.
