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In the trading week to April 27, 2018, Nigerian stock market gained about N197billion as thirty-three (33) equities appreciated in price against forty-one (41) equities that depreciated in price.
The value of listed Nigerian equities increased to N14.940 trillion in the review period as against N14.743 trillion in the preceding trading week.
Amid record N1.3trillion gain in the stock market this year, PenCom’s latest data do not point to a surge of investment in domestic equities. “The share of Pension Fund Administrators (PFAs) Asset Under Management (AuM) invested in equities has risen but we are not witnessing a sea-change. The generally average results of listed companies other than tier-one banks militate against such a change”, according to Gregory Kronsten-led team of research analysts at FBN Quest Capital in their April 20 note to investors.
In the trading week under review, the Nigerian Stock Exchange (NSE) All-Share Index (ASI) appreciated by 1.05percent, from 40,814.89 points recorded at the beginning of the week to 41,244.89 points at week-close.
“Driven largely by relatively positive first quarter (Q1) earnings, market activity was on a slight uptrend at week close. So far, a huge number of large cap stocks have released their first quarter results, with earnings either coming in line or outpacing expectations” equity research analysts at Lagos-based Vetiva Capital said in their April 30 breakfast report to investors.
“Whilst reactions to earnings have not been as intense as would have been expected, we highlight the steady accretion in year-to-date (ytd) returns (March end: 6.69percent, Ytd: 7.85percent) as a signal of overall positive sentiment since the results have begun rolling in. Barring the arrival of a significant market catalyst, we expect activity in the market to slow down in coming weeks and market sentiment should trend sideways as the Q1’18 earnings season winds down”, Vetiva analysts added.
In the review trading week, Forte Oil Plc recorded the highest price rally after its share price advanced from week-open level of N37.45 to close at N45.20, indicating an increase of N7.75 or 20.69percent.
Also on the “top rally” table include Nestle Nigeria Plc which advanced from N1, 422.50 to N1, 615, representing an increase of N192.50 or 13.53percent; and Learn Africa Plc which its stock rose from N1.20 to N1.35, up by 15kobo or 12.50percent.
“Looking ahead, we expect investor sentiments to track the inflow of first-quarter (Q1) 2018 earnings numbers”, said United Capital research analysts in their recent investment views.
Veritas Kapital Assurance Plc stock price advanced by 3kobo or 12percent last week, from 25kobo to 28kobo; Consolidated Hallmark Insurance Plc increased from 29kobo to 32kobo, up by 3kobo or 10.34percent; International Breweries Plc rallied from N47.50 to N51.80, up by N4.30 or 9.05percent; while N.E.M Insurance Company (Nigeria) Plc rose from N2.62 to N2.85, up by 23kobo or 8.78percent.
Also on the top gainers table last week include Linkage Assurance Plc which recorded price increase from 79kobo to 85kobo, up by 6kobo or 7.59percent; Wapic Insurance Plc increased from 53kobo to 57kobo, up by 4kobo or 7.55percent; while Honeywell Flour Mill Plc increased from N2.55 to N2.73, up by 18kobo or 7.06percent.
On the losers’ league, Unity Bank Plc led others after its share price declined by 27kobo or 21.26percent, from N1.27 to N1. GlaxoSmithKline Consumer Nigeria Plc lost N6.30 or 20.79percent, from N30.30 to N24. Jaiz Bank Plc dipped from 86kobo to 71kobo, down by 15kobo or 17.44percent; while Mutual Benefits Assurance Plc stock price declined from 29kobo to 24kobo, down by 5kobo or 17.24percent.
Iheanyi Nwachukwu
