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Stock investors in the shares of Unity Bank, Oando, Stanbic IBTC and 27 other companies reaped from capital appreciation making their stocks to contribute majorly to a record market gain last week.

Investors at the Nigerian Stock Exchange (NSE) witnessed increased value of their investment as the NSE Index rose by 104.68 points or 0.40 per cent week-on-week to close at 26,328.22 points. Accordingly, the Year-To-Date loss trimmed down to 2.03 per cent while market capitalization gained by N36 billion to close at N9.059 trillion.

The equities market experienced quite impressive movement last week as against much impact expected on the market by Monetary Policy Committee (MPC) decision to maintain status quo on all policy rates.

Stock market analysts noted that surprisingly, considering the negative earnings reported by some of the biggest listed consumer goods companies, the week still end positive.

“With 2016 full year results due for release, a few companies have notified the market of release dates, we sense that the local investors might have taken early position for dividend play. Besides, the broadly poor earnings from 2016 are largely reflected in current stocks’ prices. In addition, the news that Senate has commenced consideration of the 2017 budget, suggesting the possibility of earlier passage unlike in 2016, was also encouraging,” they said.

On sector performance, the Industrial Goods, Banking and Insurance indices gained, 0.22 per cent, 6.08 per cent and 0.09 per cent on the back of demand for the following stocks, Wapco, Zenith Bank and Continental Reinsurance.

On the other hand, the Consumer Goods (-3.80 per cent  w/w) and Oil and Gas (-1.96 per cent  w/w) indices closed lower by 3.80 per cent and 1.96 per cent, as Guinness, Seven Up, Forte Oil and Mobil recorded respective losses.

Meanwhile Guinness and PZ Industries respectively reported N4.67 billion and N1.3 billion losses after tax in six months ended December and November 2016 respectively.

Stocks Activities Movement For The Week

Investors were upbeat last week, with the All Share Index recording gains in four out of the five sessions.

Market breadth turned negative, with 30 gainers versus 41 losers. Total volume traded declined by 25.20 per cent to 990.58 million shares, with Zenith Bank, Champion Breweries and Diamond Bank accounting for 25.32 per cent of total volume. Total value traded increased by 115.60 per cent to N18.82 billion, with Seplat, Presco and Zenith Bank accounting for 57.10 per cent of total value.

 

Outlook For This Week

Analysts at Cordros Capital said that “Barring confidence from more positive developments in the macro environment, how dividend play will sustain the market remains to be seen.”


Source : Leadership