Trade volume rises
INVESTORS' quest to shore-up their investment portfolio in equities may have begun in earnest as the transaction volume last week rose greatly with the twin market indicators, the All-Share Index and the market capitalisation taking the opposite direction in value terms.

The climb in turnover of equities rose in the week after the organised labour called off its six-day nationwide strike action.

The jump in volume as against the decline in value by the market major indicators indicates that investors are beginning to take position more in penny stocks than stocks whose prices have already peaked.

Remote trading by dealing members (stockbrokers) mainly took over the normal transaction on the floor of the Exchange while the strike action over the Federal Government removal of fuel subsidy lasted.

Although trading value of equities during the strike action was in the positive trajectory, investors were seen only participating in fewer companies listed on the local bourse.

However, investors anxiety on whether or not the strike would be suspended by the organised labour caused the low patronage in equities in the first trading day (Monday) in the week.

But with the suspension of the strike action, coupled with the return of stockbrokers to the trading floor of the Exchange, figure in the market became greener.

Peep into why the rise in equity patronage
The low price of equities as variously enunciated by market operators cum experts contributed to the growth in the volume of transaction in the week.

Also, the investment climate in the domestic economy now will far more favour those who would like to tilt their investment decision towards investing in stocks as against investment in other instruments.

The fuel subsidy removal by the Federal Government is one major economic decisions investors in the domestic economy believe will galvanise growth and development, but they are still sceptical about the implementation process of the structure put in place by the government on the utilisation of the money coming from the fuel subsidy.

The take of most investors is that rather than invest in other instruments, especially the government bond, which in recent time has become a little bit risky, the best option is to approach the equities market despite its attendant challenges to buy those shares with inherent value at a very low price.

Market cumulative trading 
Cumulatively, a turnover of 733.55 million shares worth N5.21 billion in 12,782 deals was recorded in the week, in contrast to a total of 308.803 million shares valued at N3.64 billion exchanged previous week in 1,217 deals. The Financial Services sector accounted for 587.331 million shares valued at N2.625 billion traded in 6,702 deals. The Services sector followed with 47.7 million shares valued at N48.42 million traded in 575 deals. 

The banking sub-sector of the Financial Services sector was the most active during the week (measured by turnover volume) with 494.9 million shares worth N2.55 billion exchanged by investors in 6,240 deals. Volume in the banking sub-sector was largely driven by activity in the shares of Diamond Bank Plc, Skye Bank Plc and UBA Plc. Trading in the shares of the three banks accounted for 267.1 million shares, representing 54.0 per cent, 45.5 per cent and 36.41 per cent of the turnover recorded by the sub-sector and total turnover for the week, respectively.

The Insurance sub-sector of the Financial Services sector, boosted by activity in the shares of Continental Reinsurance Plc and Law Union and Rock Insurance Plc, followed on the week's activity chart with a sub-sector turnover of 92.2 million shares valued at N74.8 million traded in 452 deals.

Daily transaction x-ray in the week
Trading in equity on the floor of the Nigerian Stock Exchange started last Monday in the red, as market indicators recorded marginal loss.

The drop in trading activities in the day's trading was occasioned by the skeletal services at the Exchange occasioned by the nationwide strike action called bythe Nigerian Labour Congress (NLC).

Specifically, at the close of the day's transactions, the All-share index dropped marginally by 16.15 basis points or 0.1 per cent from 20,840.97 recorded on Friday to 20,824.82 while the market capitalisation equally decreased marginally by N5 billion from N6.567 trillion to N6.562 trillion.

The financial services sector dominated in volume terms with 22.2 million shares worth N171.7million in 138 deals.

The sector was driven by the banking sub-sector of the financial services sector with the activities in the shares of ETI and Skye Bank recording a turnover of 22 million valued at N171.6 million in 134 transactions.

Telecom Carriers of the ICT sector, driven by the activities in the shares of Starcomms, followed with a turnover of 8.7 million shares valued at N4.4 million in 14 deals.

A total turnover of 33.1 million shares worth N288.1 million in 243 transactions was recorded at the day's trading.
Tuesday's activities after the six-day strike action called by the NLC over subsidy removal saw the market indicators rising by 1.2 per cent.

The rise in the twin market indicators in the day was attributed by market experts to dealing members (stockbrokers) returning to the floor of the Exchange to trade, as against the remote trading they engaged in when the nation economy was shut down during the strike.

The All-Share Index climbed by 247.6 basis point or 1.2 per cent to close at 21,072.27 while the market capitalisation appreciated by N78 billion or 1.2 per cent to activities in the day at N6.640 trillion.

A further review of transaction in the day showed that 25 companies pitched their tent with the gainers table while 17 others were listed on the laggard for want of poor patronage in the day' s trading.

Cement Company of Northern Nigeria Plc, PZ Cusson Plc, Julius Berger and Nigerian Breweries led the gainers' chart after appreciating by 5.00 per cent to close at N5.25, N29.40, N33.18 and N98.76 per share. Enteroil rose by 4.96 per cent to close the day at N2.75 to complete the list of top five gainers in the day.

Conversely, Dangote Flour depreciated by 5 per cent to close the day at N5.89 while Union Bank of Nigeria fell by 4.97 per cent to close N9.57.

Activities on the NSE on Wednesday further closed on the negative territory as sell pressure outweighed bargain thereby resulting in market indicators falling by 0.13 per cent.

Transaction in the day showed that a turnover of 54 million shares valued at N649 million in 295 deals was recorded.

The key benchmark indices dropped by 26.64 basis points or 0.13 per cent to close at 20,878.71 while the market capitalisation of 199 first-tier equities depreciated by N9 billion to close at N6.579 trillion.

Financial Services sector led the market transaction volume with 51 million units worth N435 million in 157 deals.

The banking sub-sector of the financial services sector was the most active during the day (measured by turnover volume) with 45 million shares worth N431 million exchanged by investors in 122 deals.

Volume in the banking sub-sector was largely driven by activity in the shares of Zenith Bank Plc, First Bank Plc and Diamond Bank Plc.

The number of gainers at the close of trading session yesterday was 4 while decliners also closed at 8.

However, Newgold Plc led the gainers' table with a gain of N43.00 kobo to close at N2,573.00 kobo per share while Oando Plc followed with a gain of N1.05 kobo to close at N22.05 kobo per share and Guaranty Trust Bank Plc gained N0.07 kobo to close at N14.15 kobo per share.

On the other hand, ETI Plc led the price losers' table, dropping N0.20 kobo to close at N10.50 kobo per share while FCMB Plc followed with a loss of N0.19 kobo to close at N3.91 kobo per share and Zenith Bank Plc with N0.15 kobo to close at N12.15 kobo per share.

Thursday's activities continued on the negative trajectory as the market measurement major, the All Share Index indicator declined by 0.40 per cent.

Similarly, the second market indicator, the market capitalisation slide by 0.39 per cent.

Particularly, the All Share Index deepened by 84.9 basis point to close the day at 20,913.21 as against 20,997.88 in the previous trading while the market depreciated by N26 billion to close the day at a low of N6.590 trillion from N6.616 trillion on Wednesday.

27 quoted companies recorded price depreciation in comparison to 15 that appreciated in price at the end of the day's transactions.

Mult-Trex led the pack of other losers, dropping by 4.96 per cent to close at N1.15 per share. Vitaform followed with 4.93 per cent decrease to close at N5.01 per share. Skye Bank Plc dipped by 4.88 per cent to close at N3.70 and Transcorp depreciated by 4.84 per cent to close at N0.59 per share respectively.

On the other hand, AG Leventis Plc led the gainers' side with 5.00 per cent increase to close at N1.47 per share, followed by CCNN Plc with 4.90 per cent rise to close at N5.78 per share. NAHCO Plc climb 4.82 per cent to close at N5.87 per share and May Baker Plc trailed behind, rising 4.80 per cent to close at N2.62

The banking sub-sector dominated activities on the sectoral chart, accounting for 109.9 million shares worth N651.5 billion exchanged in 1,634 deals. The insurance sub-sector followed with traded volume of 20.9 million shares valued at N19.23 million done in 96 deals.

UBA Plc posted 34.7 million shares valued at N85.7 million exchanged by investors in 175 deals to top others on banking sub-sector, while ETI accounted for 22.1 million shares worth N224.6 million in 213 deals.

The market further went flat on Friday, losing N30 billion and 92.88 basis points to close the week with a market capitalisation of N6.56 billion, and an All-Share Index of 20,820.32 point.