By G9ija

Nigerian equities recorded the highest gain in a global survey of major advanced, emerging and frontier stock markets as sustained rally left Nigerian investors with net capital gains of N747 billion at the weekend.

Benchmark indices for the Nigerian stock market indicated average return of 5.3 per cent for the week, equivalent to net capital gains of N747 billion. The All Share Index (ASI)- the value-based common index that tracks share prices at the Nigerian Stock Exchange (NSE) closed weekend at 28,415.31 points as against its week’s opening index of 26,985.77 points. The ASI doubles as Nigeria’s sovereign equities index and it is the standard measurement of trend at the stock market.

Aggregate market value of all quoted equities at the NSE also rose correspondingly from its week’s opening value of N14.105 trillion to close weekend at N14.852 trillion. The concurrence between the changes in ASI and aggregate market capitalisation underlined the fact that the increase was due to price gains rather than supplementary of shares.

The Nigerian equities’ performance led the chart in a global rally that saw most equities across the world closing on the upside. In the advanced markets, United States of America’s benchmarks- S & P 500 Index and NASDAQ Index appreciated by 3.3 per cent and 4.0 per cent. In United Kingdom, the FTSE All Share Index posted average gain of 2.3 per cent. France’s CAC 40 Index rose by 2.3 per cent. Japan’s Nikkei 225 Index appreciated by 2.6 per cent. Germany’s XETRA DAX Index also returned 2.6 per cent. Hong Kong’s Hang Seng Index gained 2.8 per cent while China’s Shanghai Composite Index rose by 1.7 per cent.

In the emerging markets bloc, Brazil’s Ibovespa Index rose by 3.6 per cent. India’s BSE Sens Index appreciated by 4.7 per cent. Russia’s RTS Index posted average gain of 1.5 per cent. Thailand’s Set Index rose by 2.4 per cent. United Arab Emirates’ ADX General Index chalked up 0.5 per cent. Saudi Arabia’s Tadawul All Share returned 1.4 per cent. Qatar’s DSM 220 Index inched up by 0.3 per cent while Turkey’s BIST 100 Index appreciated by 1.5 per cent.

In Africa, Egypt’s EGX 30 Index followed Nigeria with average gain of 3.1 per cent. South Africa’s FTSE/JSE All-Share Index rallied by 1.6 per cent. Morrocco’s Casablanca MASI Index appreciated by 1.1 per cent while Ghana’s GSE Composite Index increased by 1.0 per cent.

Meanwhile, Kenya’s NSE 20 Index and Mauritius’ SEMDEX Index declined by 0.8 per cent and 0.6 per cent. The MSCI FM, which tracks frontier stocks, rose by 2.8 per cent while the twin MSCI EM, which tracks emerging markets appreciated by 3.3 per cent.

Total turnover at the NSE doubled amid intense bargain-hunting. Total turnover for the week stood at 3.140 billion shares worth N35.372 billion in 35,099 deals as against a total of 1.532 billion shares valued at N16.901 billion traded in 17,882 deals two weeks ago.

The financial services sector led the activity chart with 2.325 billion shares valued at N25.816 billion traded in 21,306 deals; representing 74.05 per cent and 72.99 per cent of the total equity turnover volume and value respectively. The oil and gas sector followed with 200.567 million shares worth N1.012 billion in 1,977 deals while the third place was occupied by the industrial goods sector with a turnover of 149.20 million shares worth N3.631 billion in 2,991 deals.

Banks dominated activities chart with the trio of Zenith Bank Plc, FBN Holdings Plc and United Bank for Africa Plc as the most active stocks.The three most active stocks accounted for 1.236 billion shares worth N15.724 billion in 9,774 deals, representing 39.36 per cent and 44.45 per cent of the total equity turnover volume and value.

Also, a total of 1.051 million units of Exchange Traded Products (ETPs) valued at N4.847 billion were traded in 33 deals compared with a total of 192,781 units valued at N1.597 billion traded in 24 deals.

In the debt segment, a total of 79,691 units valued at N108.241 million were traded last week in 23 deals compared with a total of 103,480 units valued at N123.507 million traded in 24 deals.

With nearly four advancers to every decliner, 53 stocks closed weekend with gains compared with 14 losers. There were 36 gainers and 15 losers in the previous week. Eterna recorded the highest gain of 32.48 per cent to close at N3.63.

International Breweries followed with 21.03 per cent to close at N4.72. Africa Prudential rose by 20.63 per cent to close at N5.73. Trans-Nationwide Express appreciated by 19.48 per cent to close at 92 kobo. FBN Holdings rose by 19.23 per cent to close at N6.20 while Access Bank rallied by 16.42 per cent to close at N7.80 per share.

On the negative side, UACN Property Development Company led the decliners with a drop of 11.96 per cent to close at 81 kobo. Tripple Gee and Company dropped by 10 per cent to 36 kobo. Deap Capital Management and Trust also dropped by 10 per cent to close at 27 kobo while Academy Press dropped by 6.9 per cent to close at 27 kobo per share.

“We expect the market might continue to benefit as domestic investors seek alpha-yielding opportunities in the face of increasingly negative real returns in the fixed income market. However, we advise investors to trade in only fundamentally justified stocks as the weak macro environment remains a significant headwind for listed companies,” Cordros Securities stated.

Analysts at Afrinvest securities noted that while soft gains in market might be sustained, investors would likely extend the profit-taking into this week.

“Hence, we maintain a bearish outlook,” Afrinvest Securities stated.