Transactions on the floor of the Nigerian Stock Exchange (NSE) remained resilient as investors ignored the violence and unrest in the country to ensure their wealth rose by N20 billion ahead of the release of third quarter (Q3) earnings.
The ongoing civil unrest across the country had dampened investors’ sentiment in Monday, Tuesday and Wednesday trading sessions, however, bargain hunting in the last two trading sessions of the week (Thursday : +0.4 per cent; Friday: +0.5 per cent) completely wiped off the week’s losses and pushed the market into the green.
Notably, investors’ interest in International Breweries, Nigerian Breweries, Stanbic and Dangote Cement drove the NSE All-Share Index (ASI) higher by 0.13 per cent to close at 28,697.06 points.
Consequently, market capitalisation increased by N19.7 billion to close the trading week at N14.999 trillion respectively while the Month-to-Date (MtD) and Year-to-Date (YtD) return for the index grew to 6.9 per cent apiece.
All other indices finished lower with the exception of NSE-Main Board, NSE 30, NSE MERI Growth and NSE Consumer Goods which appreciated by 0.79, 0.14, 0.68 and 2.86 per cent while the NSE ASeM Index closed flat.
Meanwhile, a total turnover of 1.505 billion shares worth N19.668 billion in 20,552 deals was traded by investors on the floor of the exchange as against a total of 1.955 billion shares valued at N22.978 billion that exchanged hands in 22,844 deals in the previous week.
Further analysis of the market’s performance showed that the Financial Services industry (measured by volume) led the activity chart with 1.196 billion shares valued at N14.950 billion traded in 11,318 deals; thus contributing 79.47 and 76.01 per cent to the total equity turnover volume and value respectively.
The Conglomerates industry followed with 97.167 million shares worth N269.045 million in 516 deals while the Consumer Goods recorded a turnover of 77.588 million shares worth N1.928 billion in 3,461 deals.
Trading in the top three equities namely Guaranty Trust Bank Plc, Access Bank Plc and United Bank for Africa Plc (measured by volume) accounted for 633.527 million shares worth N10.006 billion in 3,887 deals, contributing 42.08 and 50.87 per cent to the total equity turnover volume and value respectively.
Twenty-eight (28) equities appreciated in price during the week, lower than thirty-five (35) equities in the previous week. Thirty-five (35) equities depreciated in price, higher than twenty-three (23) equities in the previous week, while ninety-nine (99) equities remained unchanged, lower than one hundred and four (104) recorded in the previous week.
Commenting on the market’s performance for the week, market watchers said they do not expect any dent to investors’ appetite for stocks but said the trend in corporate earnings would influence market’s performance even as trading resumes this week.
Cordros Capital, an investment and research firm, said, “Despite the heat in the socio-political landscape triggered by the degeneration of the #ENDSARS protests, we do not expect a material dent to investors’ appetite for stocks.
We reiterate that pent up system liquidity and the hunt for alpha-yielding opportunities in the face of increasingly negative real returns in the fixed income market remain positive for stocks. However, we advise investors to trade in only fundamentally justified stocks as the weak macro environment remains a significant headwind for corporate earnings”.
For its part, Afrinvest, said, “We believe the trend in corporate earnings releases would influence market performance in the new trading week”.