Bargain hunting boosts indices marginally by 0.09%

As bargain hunters took advantage of the low equity prices, particularly those of interim dividend-paying companies, dominated by the banking sector, the All-Share Index and market capitalisation of the Nigerian Stock exchange appreciated by 0.09 per cent to close the week at 36,636.97 and N13.272 trillion respectively.

Similarly, all other indices finished higher with the exception of the NSE Premium, NSE Consumer Goods, NSE Oil/Gas, NSE Industrial Goods, and NSE Pension Indices that depreciated by 0.16 per cent, 0.19 per cent, 3.74 per cent, 4.40 per cent and 0.56 per cent.Traders and investors went after companies, which half-year numbers rallied, despite the mixed earnings performance and low liquidity.

There was also the future prospect of such stocks sustaining the trend on the strength of their business models, industry and favourable government policy.Analysts said that although the indicators closed positive for the day, the market lacked energy and enthusiasm, after touching intra-day highs of 36,678.29 from lows of 36,316.30, due to low traded volume, to close the trading session at 36,427.22 basis points on Thursday.

According to them, with more second quarter earnings reports expected in the market, it will be the numbers that will determine direction, as more disappointing reports will worsen the situation.They urged investors to review their positions in line with investment goals and act as events unfold in the global and domestic environment, considering the undervalued nature of equities and the high yields.

Specifically, analysts from Investdata Research Consulting Limited said: “Although the indicators closed positive for the day, the market lacked energy and enthusiasm, to say the least, after touching intraday highs of 36,678.29 from lows of 36,316.30 on a low traded volume to close the trading session at 36,427.22 basis points.

“With the earnings season coming to a close on Tuesday, we expect more numbers to come in today, while the final ones would come on Monday and Tuesday, just as various political parties in the country intensify the process of choosing their flag bearers for different offices.Codros Capital Limited said: “Our outlook for equities in the near-to-medium term remains conservative in the absence of a near term one-off positive catalyst, more so, amidst brewing political concerns.

“However, stable macroeconomic fundamentals, in addition to the likelihood of external jitters settling remain supportive of market recovery in the long term.”Further breakdown of last week’s transactions showed that a turnover of 1.417 billion shares worth N16.739 billion was recorded in 19,832 deals by investors on the floor of the Exchange, down from 1.665 billion units, valued at N14.834 billion, that were exchanged in 18,795 deals, during the preceding week.

The financial services industry (measured by volume) led the activity chart with 832.842 million shares valued at N8.823 billion, traded in 10,851 deals, thus contributing 58.76 per cent to turnover volume.

The services industry followed with 320.350 million shares worth N679.981 million in 584 deals, while the conglomerates industry ranked third, with a turnover of 99.403 million shares worth N147.372 million in 1,000 deals.

Trading in the top three equities- Medview Airline Plc, FBN Holdings Plc and Zenith International Bank Plc (measured by volume), accounted for 578.789 million shares, worth N5.153 billion in 2,874 deals, contributing 40.83 per cent and 30.78 per cent to the total equity turnover volume and value respectively.

Also traded during the week were 344 units of Exchange Traded Products (ETPs), valued at N50,021.24, executed in five deals, compared with 340 units, valued at N33,660.20 and transacted last week in six deals.

Still, 7,518 units of Federal Government Bond valued at N7.668 million were traded this week in nine deals, compared with 17,251 units valued at N17.943 million, transacted last week in 18 deals.

Again, 31 equities appreciated in price during the week, higher than 16 in the previous week, as 48 equities depreciated in price, lower than 59 equities of the previous week, while 90 equities remained unchanged lower than 94 equities recorded in the preceding week.