In one week of positive trading, investors on the Nigerian Exchange Limited staked over 14bn on the shares of Japual Gold and Venture Plc, FBN Holdings and United Bank for Africa Plc.
The trio accounted for 1.030 billion shares worth N14.14bn which were traded on the exchange in the past week in 5,263 deals, thus contributing 40.80 per cent and 31.21 per cent to the total equity turnover volume and value respectively.
This surge in buying interest is attributed to portfolio reshuffling in anticipation of key macroeconomic reports, including the October Inflation figure, Q3 GDP data, the final MPC meeting for the year, and year-end seasonality. Also, investors are buying and increasing their stakes in FBN Holdings ahead of its N139 billion rights issue.
The NGX All-Share Index and market capitalisation appreciated by 0.93 per cent and 0.95 respectively to close the week at 70,849.38 and N38.925tn respectively. During the week in review, MeCure Industries, listed on the exchange bringing in N11.8bn in market capitalisation, thus significantly contributing to this upswing. Investors gained N369bn at the end of the week while the year-to-date return for the market climbed to 38.24 per cent.
Similarly, all other indices finished higher with the exception of NGX Insurance, NGX AFRBank Value, NGX MERI Growth and NGX Sovereign Bond which depreciated by 0.53 per cent, 0.68 per cent, 1.40 per cent and 2.25 per cent respectively while the NGX ASeM index closed flat.
The trading activity during the week was positive with a 2.99 per cent week-on-week increase in the weekly trade volume to reaching 2.525 billion units while the weekly traded value increased by 11.65 per cent week-on-week, amounting to N45.30bn. The shares were exchanged in 32,815 deals.
The Financial Services Industry (measured by volume) led the activity chart with 1.677 billion shares valued at N28.776bn traded in 14,655 deals; thus contributing 66.44 per cent and 63.53 per cent to the total equity turnover volume and value respectively. The Oil and Gas Industry followed with 407.350 million shares worth N1.651bn in 3,273 deals. The third place was the ICT Industry, with a turnover of 120,200 million shares worth N7.255bn in 2,912 deals.
Thirty-seven equities appreciated in price during the week lower than 63 equities in the previous week. 43 equities depreciated in higher than 29 in the previous week, while 75 equities remained unchanged, higher than 64 recorded in the previous week.
Key performers at the close of the week included stocks like JapaulGold, RT Briscoe, Glaxo SmithKline Consumer Nigeria Plc, PZ Cussons Nigeria Plc and DEAP Capital Management and trust, which posted gains of 55.91 per cent, 39.53 per cent, 29.44 per cent, 15 per cent, and 14.81 per cent to close at N1.98, N0.60K, N16.05, N23 and N0.31 respectively.
On the decliner’s chart were stocks such as Caverton, The Initiates, Northern Nigeria Flour Mills, Multiverse Mining and Cadbury’s whose share prices dipped by 13.64 per cent, 10.53 per cent, 10 per cent, 9.38 per cent and 8.57 per cent to N1.33, N1.02, N18, N2.90 and N14.40 per unit respectively.
Looking ahead, analysts at Cowry Research expect the “prevailing bullish momentum to persist and to be driven by improved corporate earnings and the commencement of dividend season.”
