Respite as equities halt downtrend with N37bn weekly gain

The weekly negative outcome of activities on equities took a break last week as investors recouped N37 billion to halt losing streak.

The equity market closed in the green as All Share Index (ASI) advanced by 63.15 points or 0.24 per cent to close at 26,279.61 basis points while market capitalization appreciated by 0.27 per cent, courtesy of the weekly gain to close at N13.695 trillion.

Consequently, month-to-date (MtD) returns of the market improved to 0.24 per cent while year-to-date (YtD) return moderated to -2.10 per cent.

All other indices finished higher with the exception of NSE Main Board, NSE Pension, NSE AFR Div Yield, NSE MERI Growth, NSE Consumer Goods, NSE Lotus and NSE Industrial Goods indices which depreciated by 1.34 per cent, 0.91 per cent, 0.91 per cent, 2.36 per cent, 5.87 per cent, 2.28 per cent and 4.27 per cent while NSE ASeM Index closed flat.

Nonetheless, analysts posit that despite the market closing positive this week, sentiments remain weak.

“Hence, we advise investors to trade cautiously, taking positions in fundamentally justified stocks,” say analysts at Cordros Securities Limited.

A total turnover of 1.814 billion shares worth N26.008 billion in 23,494 deals were traded during the week by investors on the floor of the exchange, in contrast to a total of 1.547 billion shares valued at N24.263 billion that exchanged hands the previous week in 21,646 transactions.

The financial services industry, measured by volume, led the activity chart with 1.382 billion shares valued at N16.909 billion traded in 16,275 deals; thus contributing 76.20 per cent and 65.02 per cent to the total equity turnover volume and value respectively.

The services industry followed with 98.557 million shares worth N263.837 million in 369 deals, while the third place was ICT industry, with a turnover of 89.782 million shares worth N598.016 million in 800 deals.

Meanwhile, trading in the top three equities namely, Guaranty Trust Bank Plc, Zenith Bank Plc and United Bank for Africa Plc, measured by volume, accounted for 784.482 million shares worth N14.610 billion in 9,337 deals, contributing 43.25 per cent and 56.17 per cent to the total equity turnover volume and value respectively.

A total of 8,193 units valued at N68.491.03 were also traded during the week in 11 deals, compared with a total of 8,250 units valued at N69,155.40 transacted that exchanged hands in 14 deal the preceding week

Similarly, investors traded a total of 61,750 units of federal government bonds valued at N69.995 million in 27 deals, as against 6,321 units worth N7.194 million transacted previously in 28 deals.