Stock Market Rebounds on Third Quarter Earnings

Despite declining in the last two trading days of the week, the Nigerian equities market recovered from a 5.5 per cent decline the previous week to last week 2.3 per cent higher.

Same with global capital markets around the world, the Nigerian bourse had been unstable as confidence waned on fears of economic slow-down and declining oil prices.

However, global equities market rallied last week, lifted by a raft of corporate results and benign United States (US) inflation data which suggest the US Federal Reserve may keep interest rateslower for some time.
The Nigerian equities market had the previous week recorded a five-day of straight losses crashing every hope of respite. The market had witnessed massive sell-offs of highly capitalised stocks from the first day of the previous week to the last.

However, at the close of business last week, NSE All-Share Index(ASI) and the market capitalisation of listed equities rose by 2.33 per cent to close on Friday at 39,087.10 and N12.906 trillion respectively.
Similarly, all the indices appreciated during the week with the exception of the NSE Lotus II Index that sheds 0.31 per cent to close at 2,533.50.
Meanwhile, some traders told THISDAY that last week’s rebound do not guaranty a sustained recovery as global headwinds still persist. Others believe the days ahead may be positive as the profit taking activities reduce and more investors scramble for undervalued stocks with strong third quarter results.

Summary of Daily Performance
The market halted a week-long losing streak at the resumption of trading last Monday as the benchmark index appreciated by 1.22 per cent to close at 38,662.65 from 38,197.73 attained the previous Friday. Market capitalisation also increased to N12.76 trillion from N12.61trillion the previous trading day. However, trading activities in terms of volume decreased by 2.42 per cent as investors bought 353.80 million shares worth N4.15 billion, in 5,221.00 deals, compared to 362.56 million shares worth N3.86 billion, in 4846.00 deals exchanged the previous Friday. Guaranty Trust Bank Plc, Transcorp Plc and UBA Plc were the most actively traded stocks on the exchange on the day in terms of volume, while Guaranty Trust Bank (GTBank) Plc and Zenith Bank Plc led in terms of value.
Recovery on the floor of the local bourse was sustained on Tuesday as investors took advantage of equities in the oversold region. Positive sentiments towards key stocks led by Nigerian Breweries Plc, Zenith Bank Plc and Dangote Cement Plc kept the main tracker above its previous close and ensured an intra-day high of 38847.52 points. At the close of the session, the benchmark index rose 0.29 per cent to close at 38,776.67points. Also reflective of improved investor confidence, market capitalisation was up N37.6 billion to close at N12.80 trillion.  Heavy trades in Mansard Insurance Plc and Transcorp Plc accounted for 41.68 per cent of shares transacted on the floor, while Nestle Nigeria Plc and GTBank accounted for 28.59 per cent of market turnover.   In all 353 million units of shares valued at N3.28 billion were exchanged.
The market closed higher again on Wednesday as Guinness Nigeria Plc and Dangote Cement Plc added a cumulative 131.9 points to the benchmark index. This was further supported by improved investor’s interest in tier-1 banking stocks including Ecobank Transcorp Incorporated, GTBank Plc and Zenith Bank Plc. Thus, at the close of trades the ASI advanced by 0.87 per cent to settle at 39,113.62 while market capitalisation increased by N111.25 billion to N12.91 trillion. Market sentiments also remained positive as reflected on the market breadth index which closed green, recording 26 advancers against 19 decliners on the bourse, while in terms of activity level, volume and value of  shares traded slipped 45.2 per cent to 193 million units and 18.8 per cent to N2.66 billion respectively.
However, the recovery was interrupted  on Thursday  the  benchmark ASI depreciated marginally  by 0.04 per cent to close at 39,098.72 from 39,113.62 attained on Wednesday. Market capitalisation also decreased to 12.91 trillion from N12.92 trillion the previous trading day. But the volume of trading increased significantly as investors bought 304 million shares worth N3.10 billion, in 4,693.00 deals, compared to 193.24 million shares worth N2.66 billion, in 4,302.00 deals exchanged on Wednesday. Diamond Bank Plc, Zenith Bank Plc and Custodian and Allied Insurance Plc were the most actively traded stocks on the exchange on the day in terms of volume, while Zenith Bank Plc and Diamond Bank Plc in terms of value.
The equity market closed on a negative note last Friday, as the ASI depreciated marginally by 0.03 per cent to 39,087.10. The depreciation in the index on the day could be attributed to the losses recorded in the share prices of some highly capitalised stocks such as: Lafarge Africa Plc, Access Bank Plc, Diamond Bank Plc, UBA Plc and Stanbic IBTC Plc amongst others. Similarly, the market capitalisation depreciated marginally by 0.03 per cent to close at N12.906t trillion, compared with the depreciation of 0.04 per cent recorded on Thursday to close at N12.910 trillion.  However, the decline in the two days, which was marginal, was not enough to reverse the gains recorded in the first three days of the week. Hence, the market closed the week with a growth of 2.3 per cent.

Market Turnover
Meanwhile, in terms of market turnover, investors  traded  1.413 billion shares worth N17.038 billion in 24,427 deals in contrast  to a total of 1.885 billion shares valued at N23.733 billion that exchanged hands the previous week in 24,705 deals.
The Financial Services Industry led the activity chart in volume terms with 1.053 billion shares valued at N9.498 billion traded in 13,526 deals; thus contributing 74.51 per cent and 55.75 per cent to the total equity turnover volume and value respectively. The Conglomerates Industry followed with a turnover of 156.680 million shares worth 857.655 million in 1,558 deals. The third place was occupied by Services Industry with 62.401 million shares worth N196.893 million in 856 deals.
Trading in top three equities-Transcorp, Mansard Insurance Plc and Guaranty Trust Bank Plc-accounted for 368.622 million shares worth N3.933 billion in 2,886 deals, contributing 26.09 per cent and 23.08 per cent to the total equity turnover volume and value respectively.
A total of 702,099 units of Exchange Traded Products (ETPs) valued at N12.971 million were also executed in 19 deals last week compared with a total of 5,407 units valued at N316,261.62 transacted the previous week in 15 deals.
Similarly, a total of 4,600 units of Federal Government Bonds valued at N4.768 million in 1 deal were traded last week compared with a total of 200 units valued at N215, 666.23 transacted the previous week in 2 deals.

Gainers and Losers
At the close of trading,  of 54 equities  appreciated in prices last week, compared with 13 equities of the preceding week. Sixteen equities depreciated in prices lower than 69 equities of the preceding week, while 130 equities remained unchanged higher than 118 recorded in the preceding week.
Oando Plc  led  the price gainers with N2.16, trailed by  National Salt Company of Nigeria Plc with 85 kobo. Other top gainers included: Dangote Sugar Plc (65 kobo); Livestock Feeds(25 kobo); Ikeja Hotel Plc (23 kobo); Learn Africa Plc (14 kobo); Costain Plc, Neimeth Plc (13 kobo apiece); Leventis Nigeria (12 kobo); Learn Africa Plc (14 kobo); and NEM Insurance Plc (seven kobo).
Conversely,  to the top 10 price losers included: Unilever Nigeria Plc (N5.85); Presco Plc (N3.45); PZ Industries Plc (N3.34); Cadbury Plc (N2.62), NCR (67 kobo); Berger Paints Plc (42 kobo); Cutix Plc (13 kobo); Sterling Bank Plc (12 kobo), May & Baker  Plc (nine kobo);   and RT Briscoe Plc (five kobo).

TOP TEN BROKERS              (BY VALUE)                AS LAST FRIDAY
BROKER                                                               VALUE                                          % VALUE
STANBIC IBTC STOCKBROKERS              N4,349,771,681.44                     12.74
CSL STOCKBROKERS LIMITED                N4,296,138,604.17                     12.58
  RENCAP SECURITIES (NIG) LIMITED      N3,255,420,352.06                     9.54
  FBN SECURITIES LIMITED                        N2,311,552,522.45                     6.77
  CHAPEL HILL DENHAM MGT LTD             N1,785,286,871.62                     5.23
  AFRICAN ALLIANCE STOCKBROKERS    N1,626,032,301.68                     4.76
  PARTNERSHIP SECURITIES LIMITED      N1,208,168,955.99                     3.54
  CORDROS CAPITAL LIMITED                    N1,111,232,578.83                     3.25
SPRINGBOARD TRUST & INVESTMENT   N1,030,437,753.26                     3.02
  INVESTMENT ONE STOCKBROKERS      N 907,548,488.29                        2.66
                                                                N 21,881,590,109.79              64.09
TOP TEN BROKERS                             (BY VOLUME)               AS LAST FRIDAY
CSL STOCKBROKERS LIMITED                    278,569,483                                 9.85
RENCAP SECURITIES (NIG) LIMITED          221,536,652                                7.84
STANBIC IBTC STOCKBROKERS LIMITED  200,263,751                                7.08
  MAGNARTIS FINANCE AND INVESTMENT 175,416,559                                6.20
  SPRINGBOARD TRUST & INVESTMENT    149,940,053                                5.30
  FBN SECURITIES LIMITED                           141,772,278                               5.01
INVESTMENT ONE STOCKBROKERS          136,921,228                               4.84
READINGS INVESTMENTS LIMITED             98,681,834                                 3.49
  AFRICAN ALLIANCE STOCKBROKERS       95,163,797                                 3.37
  CHAPEL HILL DENHAM MGT LTD                93,410,483                                 3.30
                                                                    1,591,676,118                      56.30

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