STOCK MARKET GAINS N81BN DESPITE SELL-OFFS
The stock market closed last week in the green, gaining N81bn despite profit-taking activity, which eroded some of the gains. The market capitalisation of equities increased to N15.26tn from N15.18tn on the Friday of the previous week while the All Share Index gained 69 basis points week-on-week to settle at 26,618.52bps. Sell-offs were observed mainly in the industrial goods and consumer goods sectors.
The market had opened the week on a positive note following the withdrawal of the $2bn tax case against MTN Nigeria Communications Plc by the FG, but profit-taking activity on BUA Cement Plc weighed on the industrial goods sector as the cement player fell by12.20 per cent week-on-week. A total turnover of 2.087 billion shares worth N26.47bn in 24,262 deals were traded last week by investors on the floor of the Exchange, in contrast to a total of 2.683 billion shares valued at N32.65bn that exchanged hands the previous week in 30,956 deals.
The financial services industry (measured by volume) led the activity chart with 1.117 billion shares valued at N13.693bn traded in 13,739 deals; thus contributing 53.51 per cent and 51.73 per cent to the total equity turnover volume and value, respectively. The healthcare industry followed with 521.893 million shares worth N182.97m in 420 deals. The third place was occupied by the conglomerates industry with a turnover of 123.606 million shares worth N573.91m in 1,164 deals.
Trading in the top three equities namely, Union Diagnostic and Clinical Services Plc, Access Bank Plc and Zenith Bank Plc (measured by volume) accounted for 877.992 million shares worth N8.399bn in 5,251 deals, contributing 42.06 per cent and 31.73 per cent to the total equity turnover volume and value respectively. In the Exchange Traded Products market, a total of 8,871 units valued at N36.91m were traded last week in 20 deals, compared with a total of 15,390 units valued at N13.10m transacted the previous week in 32 deals.
In the bonds market, a total of 53,219 units of Federal Government bonds valued at N58.15m were traded last week in 16 deals, compared with a total of 64,840 units valued at N71.36m transacted the previous week in 30 deals. A total of 21 equities appreciated in price last week while 42 losers were recorded, compared with the 51 gainers and 20 losers recorded in the previous week. The top five gainers were Forte Oil Plc, Beta Glass Plc, Glaxo Smithkline Consumer Nigeria Plc, MTN Nigeria, C & I Leasing Plc, which saw respective gains of 21.89 per cent, 18.77 per cent, 13.21 per cent, 9.14 per cent and 8.89 per cent.
The top five losers were Consolidated Hallmark Insurance Plc, NEM Insurance Plc, BUA Cement, Tourist Company of Nigeria Plc and B.O.C. Gases Plc, whose respective share prices depreciated by 14.29 per cent, 13.66 per cent, 12.20 per cent, 10 per cent and 10 per cent. Analysts at Vetiva Capital Management Limited said the bourse closed the week in the green as bargain-hunting on Tier-1 banks persisted for a second straight session.
They said they expected a slight moderation in market gains early this week but upheld that the positive macro outlook for 2020 could continue to support demand at current levels. They added that the low-yield environment in the fixed income space was expected to support further interest from the institutional investors in the equities market.