Stories by Peter Egwuatu
Indications have emerged that the Nigerian stock market is likely to record mixed sentiments by investors this week following the renewed bearish activity last week, which led to the regress in the Nigerian Stock Exchange, NSE All Share Index and market capitalisation, by 28 bases points (bps) each to 28,113.38 points and N9.72 trillion respectively.
Coming off three consecutive weeks of modest gains, momentum slowed on the NSE as persistent profit taking across Consumer Goods depressed gains across other key sectors.
Since losing 549bps in recent weeks, FBN Holdings went on a four-session gaining streak, rising 572bps in the process. The stock has gained 19.70 per cent Year to Date, YtD, currently trading at ¦ 4.01.
Access Bank Plc, Zenith International Bank Plc and FBN Holdings Plc closed the market as the top three equities (measured by volume) accounted for 998.849 million shares worth N10.412 billion in 4,831 deals, contributing 43.98 per cent and 31.89 per cent to the total equity turnover volume and value respectively.
Meanwhile, a total turnover of 2.271 billion shares worth N32.647 billion in 20,710 deals were traded last week by investors on the floor of the Exchange in contrast to a total of 3.255 billion shares valued at N28.738 billion that exchanged hands penultimate week in 25,370 deals.
The Banking sector gained 13bps on Friday to end the week under review as the only key sector with a positive week-on-week ( w/w) return (+258bps), driven by gains in UBA (+399bps), FCMB (+175bps) and Access Bank (+96bps). The Industrial Goods sector (+43bps) and Oil & Gas (+118bps) also rose further on Friday’s trading on the back of gains recorded by WAPCO (+104bps), and SEPLAT (+500bps) but declined w/w due to losses recorded earlier in last week trading.
The Consumer Goods sector however succumbed to sell pressure, down 43bps on Friday (-148bps w/w), amidst profit taking in Dangote Flour (- 235bps), Flour Mills (-155bps) and Nigerian Breweries (-88bps).
Cowry Assets Analysts stated: “We believe sentiment will strengthen along the week as the key drivers behind the market rally persist.”
Vetiva Capital Management Analysts said “This week, we expect a mix of profit taking and bargain hunting activities especially in favour of low-priced value stocks.