On-going revaluations as a result of half-year earnings reports from quoted companies have continued to spur activities on the equities sector of the Nigerian Stock Exchange (NSE).
Consequently, the NSE All-Share Index and Market Capitalisation both appreciated by 0.09 per cent to close the week at 25,221.87, and N13.158 trillion, respectively.
All other indices finished higher with the exception of NSE Oil/Gas, NSE Lotus and NSE Industrial Goods Indices, which depreciated by 0.92 per cent, 0.12 per cent, and 0.41per cent, while the NSE ASeM closed flat.
However, analysts urged conscious trading amid prevailing socio-political and economic uncertainties, especially the rising insecurity, mismatch in economic policies, and reforms that continue to threaten recovery and confidence in the system.
According to them, these factors have continued to hamper investment from both foreign and local investors despite the huge opportunities in the stock market, as a result of a three-year-decline.
Precisely, analysts at Codros Capital, said: “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.”
The Chief Research Officer, Investdata Consulting Limited, Ambrose Omordion, said: “Investors and traders are positioning in anticipation of interim dividend paying companies earnings reports, amidst the changing sentiments in the hope of improved liquidity and positive economic indices, which may reverse the current trend.
“We see investors focusing on portfolio adjustment and rebalancing by targeting companies with strong potential to grow their dividend on the strength of their earnings capacity.
“Again, the current undervalue state of the market offers investors opportunities to position for the short, medium and long-term, which is why investors should target fundamentally sound, and dividend-paying stocks for possible capital.”
A review of market performance last week, showed that transactions on the trading floor of the NSE, reopened on a downturn on Monday, following losses suffered by most high capital stocks, causing the All-share index to fall by 0.27 per cent.
Precisely, the All Share Index shed 67.17 absolute points, a 0.27 per cent loss to close at 25,132.67 points. Accordingly, investors lost N35 billion in value as market capitalisation slipped to N13.111 trillion.
The downturn was impacted by losses recorded in medium and large value stocks, including Dangote Cement, Vitafoam Nigeria, UAC of Nigeria (UACN), International Breweries, and United Capital.
Analysts at United Capital Plc, said: “We believe a bullish catalyst could be triggered by the publication of a strong earnings report from the outstanding tier-one banking names.”
Their counterparts at Afrinvest Limited, noted that, “Given the sell-offs that dominated the trading session, we anticipate bargain-hunting in subsequent trading days.”
Trading on the equities sector of the NSE, closed upbeat on Tuesday, occasioned by renewed bargain-hunting in some blue-chip stocks, causing market capitalisation to appreciate by N2 billion.
The All Share Index appreciated by 3.82 absolute points, a 0.02 per cent growth to close at 25,136.49 points. Similarly, the market capitalisation rose by N2 billion to close at N13.113 trillion.
The uptrend was impacted by gains recorded in large and medium capital stocks, amongst which were; Dangote Sugar Refinery, Flour Mills of Nigeria, United Bank for Africa (UBA), University Press, and Guinness Nigeria.
On Wednesday, the Nigerian equities market sustained a rising profile, as more blue-chip stocks joined the league of gainers, resulting in a further rise in the All Share Index by 0.14 per cent.
At the close of trading, the ASI rose by 34.83 absolute points or 0.14 per cent to close at 25,171.32 points. Similarly, the market capitalisation added N18 billion to close at N13.131 trillion.
The uptrend was impacted by gains recorded in large and medium value stocks, including Guaranty Trust Bank, International Breweries, Studio Press Nigeria, Zenith Bank, and United Bank for Africa (UBA).
The bulls maintained dominance at the Exchange on Thursday, as more blue-chip stocks appreciated in price, resulting in a further rise in market capitalisation by N18 billion.
The All-Share Index increased by 33.28 absolute or 0.13 per cent to close at 25,204.60 points.
Similarly, the overall market capitalisation gained N18 billion, a 0.14 per cent rise to close at N13.149 trillion.
The upturn was impacted by gains recorded in large and medium value stocks, including Chemical and Allied Products (CAP), Stanbic IBTC Holdings, International Breweries, GlaxoSmithKline Consumer Nigeria, and Fidson Healthcare.
A total turnover of 950.414 million shares worth N10.123 billion was recorded in 16,647 deals by investors on the floor of the Exchange, in contrast to a total of 1.327 billion shares valued at N13.934 billion that was exchanged in 19,392 deals during the preceding week.
The financial services industry (measured by volume) led the activity chart with 624.278 million shares valued at N6.181 billion traded in 8,313 deals; thus contributing 65.68 per cent to the total equity turnover volume.
The consumer goods industry followed with 96.320 million shares worth N2.199 billion in 3,148 deals. The third place was the conglomerates industry, with a turnover of 89.376 million shares worth N145.612 million in 757 deals.
Trading in top three equities namely Zenith Bank Plc, Guaranty Trust Bank Plc, and Transnational Corporation of Nigeria Plc (measured by volume) accounted for 298.901 million shares worth N4.761 billion in 3,056 deals, contributing 31.45 per cent to the total equity turnover volume.