Nigerian Capital Market Gaining Attributed to Positive Corporate Performance

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Investors on the Nigerian Stock Exchange last week recorded a turnover of 2.133 billion shares worth N24.386 billion in 22,532 deals in contrast to a total of 1.675 billion shares valued at N21.315 billion that exchanged hands in 21,062 deals in the preceding week.

A remarkable improvement, giving previously recorded declining performance of the last few weeks.

This recent achievement has been attributed to the unexpected performance of the Corporate & Banking sector.

Speaking with Daily Times Correspondent at the Stock Exchange House on Friday, A stock broker, Mr Charles Fakrogha explained that despite the economic and political challenges still affecting the Nigerian economic atmosphere, there are factors that can otherwise influence the performance of shares on the Nigerian Stock Exchange.

‘’There are so many factors that drives the market and a few of them like political and security situation as said would always remain, but like I have always mentioned, It is safe to say that the performance of the companies would drive the market, because the market is a reflection of what is happening to the companies. So if these companies are doing well, and there is good news about them, investors are happy, this would automatically reflect in their share price. The corporate earnings, i.e. their reports is a major factor in influencing the performance of the market, of which a few of these reports have been seen in the last few days’’ he said.

The Commendable results from Nestle and Nigerian breweries which recently released their reports were not asunexpected as those of Zenith and Guaranty bank that were released on the 5th of March which showed a revenue of N403, 343,000 and N278, 520,814 respectively for the year 2014, as well as a profit after tax of N99,455,000 and  N94,694,919 respectively and proposed dividend of N1.75k and N1.50k each.

At the close of trading activities on Friday, The NSE All-Share Index and Market Capitalization appreciated by 3.14% to close at 31,049.37 and N10.360 trillion. Also, all indices finished higher during the week with exception of the NSE Insurance Index, NSE Oil/Gas Index and NSE Lotus II Index that closed lower by 0.12%, 2.00%, and 1.75% respectively. However, the NSE ASeM Index closed flat.

The Financial Services Industry (measured by volume) led the activity chart with 1.797 billion shares valued at N14.192 billion traded in 14,424 deals; thus contributing 84.24% and 58.20% to the total equity turnover volume and value respectively. The Conglomerates Industry followed with a turnover of 119.519 million shares worth N630.211 million in 1,216 deals. The third place was occupied by the Consumer Goods Industry with 100.121 million shares worth N6.595 billion in 3,307 deals.

Top three traders for the week (measured by volume) are- FBN Holdings Plc, Access Bank Plc and United Bank for Africa Plc. They accounted for 966.582 million shares worth N6.790 billion in 5,901 deals, contributing 45.31% and 27.84% to the total equity turnover volume and value respectively. ETPs Also traded during the week were a total of 223,470 units of Exchange Traded Products (ETPs) valued at N3.409 million executed in 21 deals compared with a total of 184,927 units valued at N2.803 million transacted last week in 29 deals.

A total of 426 units of FGN bond valued at N440, 065.32 was executed in 2 deals compared with a total of 100 units valued at N103, 583.19 transacted last week in 1 deal.

Forty (40) equities appreciated in price during the week, lower than forty-three (43) equities of the preceding week. Thirty (30) equities depreciated in price, higher than twenty-two (22) equities of the preceding week, while one hundred and twenty-six (126) equities remained unchanged lower than one hundred and thirty-one (131) equities recorded in the preceding week.

 

CBN EXCHANGE RATES AS AT 9th March 2015.

CurrencyBuying(NGN)Central (NGN)Selling(NGN)
US DOLLAR196196.5197
POUNDS STERLING297.5672298.3263299.0854
EURO214.6004215.1479215.6953
SWISS FRANC200.409200.9202201.4315
YEN1.63291.63711.6413
CFA0.31160.32160.3316

 

Market Capitalization and All Shares Index Trend for Equities

DayMarket Capitalization (N)Index value
Monday 02/03/201510,099,063,561,164.1530,267.18
Tuesday 03/03/201510,210,491,053,353.730,601.13
Wednesday 04/03/201510,215,093,892,665.5330,614.93
Thursday 05/03/201510,131,719,303,066.8630,365.05
Friday 06/03/201510,360,053,489,142.9431,049.37

 

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