Financial stocks contribute 74.4% to NSE’s turnover

The financial services industry dominated in volume terms at the end of transactions on the floor of the Nigerian Stock Exchange (NSE) last week.

It led the activity chart with 882.909 million shares valued at N6.532 billion traded in 10,186 deals; thus contributing 74.49 per cent to the total equity turnover volume.

Following the sector last week was the conglomerates industry with 89.432 million shares worth N159.459 million in 890 deals.

The consumer goods industry ranked third with a turnover of 75.383 million shares worth N2.120 billion in 3,635 deals.

Specifically, trading in the top three equities namely – United Bank for Africa Plc, Guaranty Trust Bank Plc and Fidelity Bank Plc (measured by volume) accounted for 394.778 million shares worth N3.857 billion in 2,866 deals, contributing 33.31 per cent and 29.59 per cent to the total equity turnover volume and value respectively.

Consequently, a turnover of 1.185 billion shares worth N13.033 billion were recorded in 18,548 deals were traded by investors on the floor of the Exchange last week, in contrast to a total of 1.867 billion units valued at N16.330 billion that changed hands in 21,584 deals during the preceding week.

Also traded during the week were a total of 11,383 units of Exchange Traded Products (ETPs) valued at N128,168.98 executed in 48 deals, compared with a total of 57,510 units valued at N439,941.91 transacted last week in 32 deals.

A total of 340 units of Federal Government Bonds valued at N370,066.80 were traded in 1 deal compared of 5,749 units of Federal Government Bonds valued at N5.513 million transacted last week in 7

The NSE All-share index and market capitalisation depreciated by 2.09 per cent to close the week at 27,425.86 and N9.419 trillion respectively.

Similarly, all other Indices finished lower during the week, with the exception of the NSE ASeM Index which closed flat.

On the price movement chart, 22 equities appreciated in price during the week, lower than 35 equities of the previous week.

40 equities depreciated in price, higher than 31 equities of the previous week, while 118 equities remained unchanged higher than 114 equities recorded in the preceding week.

Meanwhile, United Bank for Africa Plc (UBA”) has notified the NSE of the resolution of its directors to exercise the call option for the early redemption of the seven years 13 per cent fixed rate subordinated unsecured bonds due 2017 .

The bank explained that in accordance with the terms and conditions of the trust deed, the bank reserves the rights to early redemption from the 5th year anniversary of the bond, being September 2015.

The bank assured that it has adequate liquidity to meet this proposed early redemption, adding that the exercise of the call option has relatively no impact on the liquidity and capital of the bank.