*Market opens March with N69bn gains


By Nkiruka Nnorom

Local  investors continued their dominance in the Nigerian Stock Exchange (NSE) in January, injecting  N184.94 billion on equities during the month.

This represents 79.56 percent of the total traded value during the month and 11.98 percent year-on-year (Y/Y) increase over N 165.14 billion committed in January, 2020.

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The NSE disclosed this in its data on domestic and foreign portfolio investors participation in equities. 

Further analysis showed that domestic participation outstripped foreign investors participation by 74.31 percent as foreign investors continue to withdraw funds from the market.

On the other hand, foreign investors reduced  their investment in the market by 32.4 percent to N47.52 billion in January from N70.32 billion in January 2020.

Analysis showed that total foreign portfolio inflow fell 30 per cent Y/Y to N16.73 billion in January 2020 from N23.8 billion in January 2020 

Similarly, foreign portfolio outflow fell by 34 per cent, Y/Y,  to N30.79 billion January 2021 from N46.50 billion January 2020 

However, on a month-on-month (M/M) basis, domestic transactions fell  by 7.21 per cent to N184.94 billion in January 2021 from N199.32 billion in December, 2020. Similarly, total foreign transactions fell  by 32.04 percent to N47.52 billion from N69.92 billion in December, 2020.

Meanwhile the equities market opened the month of March on a positive note in line with analysts prediction with investors recording N69 billion gains at the close of trading session yesterday.

This was after a turbulent February where the local bourse ended with 6.16 percent negative return following asset migration to fixed income due to reversal in yields in the fixed income market.

However, the downward trend in February was reversed yesterday as bargain buying on BUA Cement (+3.8%), UBA (+2.5%) and Zenith Bank Plc (+1.4%), triggered a 0.33 percent gain in the All Share Index (ASI).

Analysts had said that the market would witness a respite as more companies release their full year audited financial results this week.

Specifically, the ASI advanced to 39,931.63 points from 39,799.89 points at the close of trading on Friday.

Similarly, the market capitalisation of all listed equities rose to N20.892 trillion from N20.823 trillion, indicating a marginal increase of 0.33 percent.

Sectoral performance was mixed as two of the five sectors recorded gains, while the remaining three closed in red. The industrial goods sector led the gainers, rising by 1.5 percent, followed by the banking sector with 0.3 percent increase.

On the flip side, the insurance sector led the losers, falling by 1.1 percent, while the consumer goods and the oil and gas sectors were down 0.5 percent and 0.1 percent respectively.

According to analysts at Cordros Capital, the floor of the Nigerian Stock Exchange (NSE) will be flooded with corporate earnings as more companies publish their audited full year 2020 numbers, accompanied by dividend declarations.

According to them, the corporate earning releases coupled with dividend declarations, “should provide respite for market performance. However, we expect intermittent profit-taking activities to continue due to lingering concerns about yield elevation in the fixed income market.”


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