Equities Market Records Marginal Gain Of 0.15%


The Nigerian equities market last week reversed its negative outing on a positive outlook.

Specifically, the market capitalisation, gained N19 billion to close at N11.697 trillion on Friday as against N678 trillion the previous week.

The All Share Index increased by 51.19 points or 0.15 per cent from 34,388.21 points to close at 34,439.40, pushing the year-to-date index into a negative of 0.63 per cent.

It was a close tie for the bears and the bulls in control of activities last week as the bears maintained grip for three trading days while advancers dominated the remaining two trading days.

Capital market operators said, “The largely disappointing first quarter earnings, declining government revenues, and unending erratic PMS supply all are reflected in the recent poor economic data which are affecting investors’ confidence in the market.”

Reviewing the sectoral indices for the week, the Consumer Goods and Oil/Gas indices topped the gainers’ chart with respective increases of 0.66 per cent and 0.62 per cent, while the Industrial Goods index went up 0.14 per cent. However, the Banking Index lost 0.19 per cent while the Insurance Index also fell by 0.14 per cent. Contrarily, the market recorded lower level of transaction as volume and value of trades dropped by 28 per cent and 14 per cent respectively, relative to the previous week’s level. At the close of trading activities, 1.624 billion shares valued at N14.421 billion were exchanged in a lower number of deals of 19,570 compared with 1.583 billion shares valued at N20.150 billion exchanged in 22,791 deals recorded in the previous trading week while the financial services sector maintained the lead trade, propelled by banking stocks, dominating trades by 75 per cent of total volume of trades.

Analysts from Cordros Capital Limited said, “The recent strings of poor economic data and corporate earnings, coupled with uncertainties surrounding policy expectation from the incoming government, are not pro-equities. However, last week’s gains suggest that investors are probably betting against another round of politics-driven rally come May 29, 2015.”

According to analysts from GTI Capital Limited, “With oil prices stabilising and dollar shedding some weight against the naira in the parallel market, we are optimistic of improved economic conditions in the coming week. With reference to recent inflation figures and unemployment rate quoted at 6.4 per cent, we expect the market to gain moderately in the new week owing to improved spending power.”

The weekly gain notwithstanding, 30 gainers and 41 losers were recorded. Berger Paints led the gainers’ chart for last week with 10.25 per cent to close at 93 kobo per share. University Press followed with 10.04 per cent gain to close at 55 kobo while Beta Glass appreciated by 10 per cent to close at N33 per share.

Source : Leadership

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