How Nigeria’s equities market gained N83bn in one week

The share price appreciation in Cadbury Nigeria Plc, Nigerian Breweries Plc, among many others lifted the equities market of the Nigerian Stock Exchange (NSE) market by a whopping gain of N83billion in capitalization in one week.

For the first time since January, the NSE closed higher for the third successive week, primarily driven by foreign investors taking positions in cheap shares.

The market capitalization opened for trading at N13.063 trillion to close at N13.146trillion amid mixed trading last week.

The gain in market capitalization also aided an increase in NSE All-Share Index, gaining 0.63 percent or 157.95 basis points to close at 25,199.84 basis points from 25,014.89 basis points it opened for trading.

The equities market Year-Till-Date (YTD) loss moderated to -6.1 percent, while the Month-Till-Date (MtD) gain increased to two percent.

Performance across sectors within our coverage was broadly positive with the Oil & Gas (+5.9 percent), Consumer Goods (+2.2 percent), and Insurance (+1.1 percent) indices recording gains. The Banking index was flat while the Industrial Goods (-2.7 percent) the index was the sole loser.

Specifically, Airtel Africa Plc (+9.2per cent), NB (+12.5 percent), and Seplat Petroleum(+10 percent) were the major drivers of the overall market’s gain.

Our correspondent gathered that Cadbury Nigeria Plc led the gainers’ chart last week, moving from N0.85 to N7.45 per share, followed by Nigerian Breweries that added 12.50 percent or N1.30 to N12.50 from N11.20.

Unilever Nigeria also rose by 11.61 percent or N1.30 from N11.20 to N12.50 while C & I Leasing Plc closed last week at N4.40 from N4.00 per share.

On the losers’ chart, Champion Breweries plc dropped by 25.26 percent or N0.24  to close at N0.71 from N0.95 while Ikeja Hotel plc was down by 25 percent or N0.28 to N0.84 from N1.12 per share.

The NSE weekly report stated that “A total turnover of 1.327 billion shares worth N13.934 billion in 19,392 deals were traded this week by investors on the floor of the Exchange, in contrast to a total of 1.065 billion shares valued at N10.798 billion that exchanged hands last week in 20,482 deals.

“The financial services industry (measured by volume) led the activity chart with 886.545 million shares valued at N8.360 billion traded in 10,161 deals; thus contributing 66.79 percent and 60.00 percent to the total equity turnover volume and value respectively.

“The conglomerates’ industry followed with 155.956 million shares worth N187.728 million in 828 deals.

“The third place was the Consumer Goods industry, with a turnover of 141.099 million shares worth N2.229 billion in 3,403 deals.

“Trading in the top three equities namely Guaranty Trust Bank Plc, Transnational Corporation of Nigeria Plc and Zenith Bank Plc. (measured by volume) accounted for 419.455 million shares worth N6.079 billion in 3,854 deals, contributing 31.60per cent and 43.63 percent to the total equity turnover volume and value respectively.”

The report stated that a total of 25,904 units valued at N169.443 million were traded last week in 17 deals as a total of 2,542 units valued at N3.412 million were traded in 7 deals.

Analysts at Cordros Capital explained, “Our view continues to favour cautious trading as risks remain on the horizon due to a combination of the increasing number of COVID-19 cases in Nigeria and weak economic conditions.

“Thus, we continue to advise investors to seek trading opportunities in only fundamentally justified stocks.”