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Equities gain N197bn on impressive Q1 earning reports

…Exporters FX window to boost inflow from foreign investors

By Nkiruka Nnorom

THE negative sentiment that prevailed in the equities market penultimate week was halted last week as investors took position in the market in reaction to the impressive quarter one,Q1 results released    by    most of the companies.

Also,  the  Exporters’ Foreign Exchange, FX window introduced by the Central Bank of Nigeria, CBN, resulted in renewed optimism in equities as the window is expected to boost inflow from foreign investors in the future.

Analysts Expectation:

Analysts from Cowry Assets stated:  “We expect some profit-taking in the coming week but we have a positive short-term perspective for equities.”

Analysts from Cordros Research said “  Dangote    Cement’s result is impressive, with    Earnings Before Interest Tax, Depreciation, and Amortisation,    EBITDA consistent with management optimistic outlook. We look for positive investor reaction. Our estimates are under review.”

Meanwhile, the    market capitalisation of listed equities rose by N197 billion or 2.26 per cent to close at N8.013 trillion from N8.716 trillion, representing 2.2 per cent increase.

Also, the All Share Index, ASI, rose by 2.26 per cent from 25,189.37 points to 25,756.51 points.

The positive sentiment spread across the entire sectors as all the other sectorial indices closed higher with the exception the NSE insurance, NSE consumer goods that depreciated by 0.17 per cent and 0.05 per cent respectively.

The banking sector recorded the highest return of 6.11 per cent driven by gains in Stanbic IBTC Holdings Plc, which rose by 28.24 per cent. The industrial goods sectors followed with 4.77 per cent week-on-week return on the back of recorded the highest return of Askaka Cement Plc and Lafarge Africa, which went up by 15.61 per cent and 10.70 per cent respectively, while the oil and gas sector went up by 1.99 per cent.

Volume, value traded

Investors staked N9.67 billion on 1.333 billion shares during the week in 16,300 deals, in contrast to a total of 896.748 million shares valued at N5.918 billion that exchanged hands in 11,185 deals in the previous week. The financial services sector, measured by turnover volume led the activity chart with 960.307million shares valued at N6.098 billion exchanged by investors in 9,675 deals; thus contributing 72.03 per cent and 63.06 per cent to the total equity turnover volume and value respectively.

The conglomerates sector followed with 154.404 million shares worth N330.132 million in 896 deals. The third place was occupied by oil and gas sector with a turnover of 60.285 million shares worth N896.174 million in 1,379 deals. Trading on the shares of Access Bank Plc, Transnational Corporation of Nigeria Plc and Fidelity Bank Plc, measured by volume, accounted for 489.178 million shares worth N1.731 billion in 1,665 deals, contributing 36.69 per cent and 17.90 per cent to the total equity turnover volume and value respectively.


Investors traded 4,705 units of Federal Government Bonds valued at N3.934 million in 4 deals, compared with a total of 1,311 units valued at N1.346 million transacted the previous week in seven deals


Also traded during the week were a total of 533 units of Exchange Traded Products (ETPs) valued at N32,204.30 executed in 15 deal compared with a total of 100 units valued at N6,799.00 transacted last week in one deal.


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