Investors’ wealth soars by 7.19% despite rising COVID-19 cases

Despite one day public holiday declared by the Federal government last week Monday to mark the Easter celebration, in addition to consensus that the nation’s economy is heading for a recession arising from the crises caused by the Coronavirus (COVID-19) pandemic and the NSE All-share index and market capitalisation appreciated by 7.19% to close the week at 22,921.59 and N11.946 trillion respectively.

All other indices finished higher with the exception of NSE ASeM which closed flat.

The improved performance was attributed to news of clinical trial for a potential cure to the coronavirus, in addition to plans by US and European countries to gradually re-open their respective economies.

But analysts argued that mixed performance is likely to occur because the positive sentiment and seeming market rally is the opposite of current realities,

Specifically, the chief research officer of Investdata consulting, Ambrose Omodion said:”The fast spread of the virus in Nigeria despite the lockdown is a major source of concern, with the diseases already in 22 states.

“The Nigerian economy on a slowdown, just as the global and African economies. The uptrend is also happening at a time there is a consensus among analysts that the nation’s economy is headed for a recession arising from the crisis caused by the pandemic.

“However, the high dividend yields would continue to attract buying interests, while more audited corporate earnings hit the market going forward. This is despite the likely continuation of the selloffs, with investors buying to increase their positions in undervalued stocks ahead of dividend declaration.”

Analysts at Codros Capital said: “This week’s performance was surprising, given that risks remain on the horizon following the increasing number of COVID-19 cases in Nigeria.

” Nonetheless, we note that the market performance was buoyed by fundamentally justified stocks and therefore advise again, that investors trade cautiously.”

Further breakdown of lastweek’s showed that a total turnover of 1.495 billion shares worth N12.894 billion was recorded in 20,982 deals by investors on the floor of the exchange last week, in contrast to a total of 2.440 billion shares valued at N19.932 billion that changed hands in 18,918 deals during the preceding week.

The financial services industry (measured by volume) led the activity chart with 1.238 billion shares valued at N8.424 billion traded in 12,835 deals; thus contributing 82.82 per cent and 65.33 per cent to the total equity turnover volume and value respectively.

The healthcare industry followed with 72.953 million shares worth N386.138 million in 465 deals.

The third place was the Consumer Goods industry, with a turnover of 48.567 million shares worth N1.904 billion in 2,611 deals.

Trading in the top three equities namely, Omoluabi Mortgage Bank Plc, FBN Holdings Plc and Zenith Bank Plc. (measured by volume) accounted for 755.096 million shares worth N4.584 billion in 5,758 deals, contributing 50.50% and 35.56 per cent to the total equity turnover

ETPs A total of 52,216 units valued at N103.109 million were traded this week in 15 deals, compared with a total of 3.027 million valued at N13.034 million transacted last week in 23 deals. A total of 2,495 units valued at N3.013 million were traded this week in 12 deals. There was no trade recorded last week.

37 equities appreciated in price during the week, higher than 35 equities in the previous week. 21 equities depreciated in price, higher than 18 equities in the previous week, while 105 equities remained unchanged, lower than 110 equities recorded in the preceding.