THE Nigerian equities investors over a five-day active trade staked N45.816 billion as a total turnover of 5.011 billion shares were exchanged in 44,569 deals in contrast to a total of 5.021 billion shares valued at N68.974 billion that exchanged hands in 41,542 deals during the preceeding week.
According to the report by the Nigerian Stock Excchange (NSE), the Financial Services Industry led the activity chart with 3.672 billion shares valued at N29.946 billion traded in 28,608 deals; thus contributing 73.29 percent and 65.36 percent to the total equity turnover volume and value respectively. The Conglomerates Industry followed with 864.180 million shares worth N2.440 billion in 2,561 deals.
The third place was occupied by Consumer Goods Industry with a turnover of 210.994 million shares worth N7.731 billion in 7,336 deals.
Transnational Corporation of Nigeria Plc, Diamond Bank Plc and FCMB Group Plc (measured by volume) accounted for 1.751 billion shares worth N5.023 billion in 6,131 deals, contributing 34.93 per cent and 10.96 per cent to the total equity turnover volume and value respectively, thus named the Top Three Equities traded for the week.
During the week, the All-Share Index (ASI) and market capitalisation appreciated by 5.11 per cent to close at 45,092.83 and N16.154 trillion respectively, just as all other indices finished higher during the week with the exception of the NSE Consumer Goods Index that depreciated by 1.31 per cent while the NSE ASeM Index closed flat.
During the week, it was recorded that 40 equities appreciated in price, lower than 66 of the previous week, while 32 equities depreciated in price, higher than seven equities of the previous week, while 100 equities remained unchanged higher than 99 equities recorded in the preceding week.
Also traded during the week were a total of 1.947 million units of Exchange Traded Products (ETPs) valued at N105.567 million executed in 15 deals, compared with a total of 777,535 units valued at N7.689 million that was transacted last week in 15 deals.
In addition, a total of 4,437 units of Federal Government Bonds valued at N4.260 million were traded this week in 9 deals, compared with a total of 6,301 units valued at N6.298 million transacted last week in 12 deals.
With the performance at the Nigerian Bourse since the onset of the trading activities in the year, the positive outlook as given by analyst looks nearer than ever as recovery witnessed in 2017 is expected to continue.
It will be recalled that the All-Share Index closed the year 2017 at 38,243.19 points, representing an appreciation of 42.3 per cent, the first year-on-year(y-o-y) appreciation since 2014, while NSE Banking and Consumer Goods Indices recorded the highest appreciation in 2017, growing by 73.3 per cent and 37 per cent respectively.
FSDH Research expected that the factors that drove the equity market in 2017 – the increase in the price of crude oil; introduction of the Investors’ and Exporters’ (I&E) Foreign Exchange window leading to stability in the foreign exchange market; improved corporate earnings and the drop in the yields on the Nigerian Treasury Bills (NTBs) – would support the market rally in 2018.
“We observed a strong correlation between the historical movements in the NSE ASI and the crude oil price (Bonny Light). The current consensus is that the average price of crude oil will be marginally higher in 2018 than 2017.”
Also, analysts at Vetiva Research, in its recently released report titled ‘Nigeria 2018 Outlook: Acta Non Verba,’ predicted that investors in the Nigerian capital market should expect more gains in 2018.
As the nation’s stock market will further grow, stating that the growth would be boosted by stability in the country’s foreign exchange (forex) market in 2017.
“Despite the 2017 equity market rally driven by a partial liberalization of the country’s exchange rate regime, the Nigerian Stock Exchange remains relatively undervalued. Now, favourable external conditions support further growth; bolstered by stability in FX and energy supply, receding cost pressure and strengthening consumer demand.”
They therefore projected a strong equity market performance in 2018, with an estimated full year return of 15 per cent-20 per cent (Bear: -10 per cent, Bull: 30 per cent).
“We expect this performance to be driven by strong growth across undervalued Tier 2 banking names and continued recovery in the consumer goods sector. In the long run, steps to improve corporate governance and investor sophistication are necessary to achieve the desired level of market deepening and diversity.
“We consider initiatives such as a thriving derivatives market and demutualization of the Nigerian Stock Exchange (NSE) as precursors to this and hope to see progress on these fronts in 2018.”
During the week also, the NSE CEO coroborated the prediction, while giving the 2018 outlook noting that the Nigerian capital market is encouraging.
“Indeed, to some extent, political activities and currency movements will have some effect on the market, but we expect that such impacts will be short lived and the performance of the underlying business activities will ultimately determine market performance,” he said.