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Investors optimistic on share value growth - As Dangote Cement, NB top gainers’ table
Stocks’ intrinsic value
WITH the change in leadership at boththe Nigerian Stock Exchange (NSE) and the Securities and Exchange Commission (SEC), investment in the market is expected to rise, despite the recent turbulent phase equity transaction has gone through in the second quarter of the year.
The declared financials of most listed equities, especially in the banking and conglomerate subsector of the market, has put investors in a comfortable position to do business without having the non-performing loan hanging on the neck of financial institutions.
The Asset Management Company of Nigeria (AMCON), at the last count, took over about N1.7 trillion toxic debts of the listed banks even as stakeholders in the market had clamoured for the organisation to extend its purchase of debt to other listed companies.
Profit taking quest prevails at NSE
Notwithstanding the inherent value of most stocks in the market and as rightly foreseen by experts that investors should not be alarmed when the market begins to go Southward after a period of upbeat in the market, the market is still being inundated with profit taking and portfolio realignment.
In the last couple of weeks now, rallying in the value of shares has made unit holders of shares to go on a roller coaster to sell their shares for profit making.
Majority of investors during the meltdown in prices of shares did raise their investment stake to average their loss.
Apathy on investment
The apathy trailing investment decisions among institutional investors, as well as the common investors, is that they are sandwiched between two opinions of when and how they will recoup their money back if eventually the market fails to return to profitability in the shortest possible time.
Most big investors and the small ones are of the opinion that their money must flow to where they make quick gains.
Transactions last week
Trading in equities on Monday continued on bullish, as investors’ appetite on highly liquid companies improved further.
Specifically, the All Share Index gained 0.36 per cent to close at 22,191.14 points, compared to the increase by 0.27 per cent recorded on Friday to close at 22,110.91 points.
Market capitalisation rose by N26 billion to close at N7.08 trillion, compared to N20bn increase recorded on Friday to close at N7.06 trillion.
Analysts said the fundamental of the quoted companies were strong enough to sustain bullish trends in the near future.
7UP Plc led the gainers’ table with 4.99 per cent to close at N42.12 per share, followed by Dangote Flour Plc with 4.89 per cent to close at N6.87 per share.
Livestock Plc appreciated by 4.88 per cent to close at N1.29 per share, while CUTIX Plc rose by 4.83 per cent to close at N1.52 per share. Stanbic IBTC Plc added 4.82 per cent to close at N6.96 per share.
On the flip side, Roads Nigeria Plc dipped by 4.96 per cent to close at N7.85 per share, while Fidelity Bank Plc depreciated by 4.76 per cent to close at N1.20 per share.
RT Briscoe Plc declined by 4.74 per cent to close at N1.81 per share, while WAPIC Insurance Plc lost 3.95 per cent to close at 73 kobo per share. DN Meyer Plc shed 3.70 per cent to close at 52 kobo per share.
However, transaction volume in equities dropped by 15.3 per cent, as a total of 136.80 million shares worth N1.66bn were exchanged in 2,954 deals, compared to 161.58 million shares valued at N1.48bn traded in 3,315 deals on Friday. Major equity transaction prices tumbled on Tuesday, with the twin market indicators falling by 0.32 per cent or N23 billion.
The lull in activities in the market is said to be occasioned by blue-chips companies whose result is already in the public domain, even as the market is said to possess no other activities that could drive the market for now.
A review of the day’s transaction showed that highly capitalised stocks comprising of 21 companies recorded price depreciation while 22 others depreciated in price.
Particularly, at the close of transaction in the day, Cement Company of Northern Nigeria Plc topped the day’s losers’ table with 5.00 per cent to close at N1.26, while PZ Cusson Nigeria Plc followed with 4.98 per cent to close at N25.50 per share. BetaGlass Plc, FCMB Plc and RT Briscoe Plc also lost by 4.95, 4.48 and 4.42 per cent, to close at N10.55, N3.20 and N1.73 per share.
On the other hand, Fidelity Bank Plc emerged the day’s highest price gainers with 5.00 per cent to close at N5.70 per share. UAC-Properties Plc followed, adding 4.99 per cent, to close at N9.26 per share. Evans Medical Plc, Conoil Plc and Air Service, added 4.88 per cent, 4.74 per cent and 4.72 per cent to close at N0.86, N20.54 and N1.33 per share.
Consequently, market capitalisation dropped by N23 billion or 0.32 per cent, from N7.084 trillion recorded on Monday to N7.061 trillion, while All-Share Index dipped by 70.67 points or 0.32 per cent, from 22,191.14 to 22,120.47
With transactions exchanged in 2,087 deals, the banking sub-sector maintained its dominance in volume terms with 136.2 million shares, worth N1.09 billion. The insurance sub-sector trailed with 59.2 million units, worth N31.7 million, while the Conglomerate sub-sector ranked third with 8.7 million units, worth N13.4 million in 154 deals.
In all, investors exchanged 232.4 million shares, worth N1.84 billion in 3,794 deals.
With maximum gains recorded by Zenith Bank and United Bank for Africa on the trading floor of the NSE on Wednesday, cumulative value on the twin market indicators rose by 0.61 per cent.
The two banks led other 20 companies that pitched their tent on the gainers’ table after appreciating by 5.00 and 4.89 per cent respectively.
Further review of activities in the day showed the market capitalisation increased by N43 billion or 0.61 per cent to close at N7.104 trillion, while the All- Share Index equally appreciated by 0.61 per cent or 133.24 basis points to close at 22, 253.71 index points.
Analysis in the day also showed that 20 stocks recorded price appreciation as against 23 others that dropped in value. Aside Zenith Bank and UBA, Union Bank Plc rose by 4.89 per cent gain to close at N4.29. PZ Cusson gained by 4.81 per cent to close at N26.39 and Diamond Bank followed with a gain of 4.78 per cent to close at N2.41.
On the other side, Forte Oil , Arbico Plc, Dangote Flour and Cement Company of Northern Nigeria Plc and Bagco Plc led the losers’table with a loss of 5.00, 4.98, 4.93, 4.91 per cent each to close at N10.84, N21.19, N6.37 and N5.42 respectively. The banking sub sector, buoyed by the activities on the shares of Zenith Bank and UBA, regained its past prime position with a turnover of 226.1 million shares valued at N1.63 billion in 2,052 deals.
Insurance sub sector, fuelled by activities in the shares of AIICO, followed with a turnover of 73.7 million shares worth N41.1 million in 76 deals.
Agriculture sub-sector recorded a turnover of 6.73 million shares worth N9.45 million valued at 110 transactions to rank third.
In all, investors staked a turnover of 392.8 million shares valued at N3.049 billion in 3,909. Trading in equities continued on bullish note on the NSE on Thursday as more investors took position on some stocks.
The All Share Index rose by 1.08 per cent to close at 22,492.96 points, compared to the increase by 0.60 per cent recorded the preceding day to close at 22,253.71 points.
Market capitalisation gained N76bn to close at N7.18trn, higher than the appreciation by N42.5bn recorded the preceding day to close at N7.10trn.
Dangote Sugar Plc led the gainers’ table with 20 kobo or five per cent to close at N4.20 per share, followed by Transcorp Plc with five kobo or five per cent to close at N1.05 per share.
UAC-Properties Plc appreciated by 46 kobo or 4.97 per cent to close at N9.72 per share, while GT Assur Plc gained seven kobo or 4.96 per cent to close at N1.48 per share. University Press Limited rose by 21 kobo or 4.91 per cent to close at N4.49 per share.
On the flip side, Honeywell Flower Mills Plc dropped by 10 kobo or five per cent to close at N1.90 per share, while Japaul Oil Plc dipped by three kobo or 4.62 per cent to close at 62 kobo per share.
Bagco Plc lost nine kobo or 4.55 per cent to close at N1.89 per share, while Custodian Insurance Plc declined by seven kobo or 4.52 per cent to close at N1.48 per share. Ikeja Hotel Plc depreciated by five kobo or 4.42 per cent to close at N1.08 per share.
Transaction volume in equities dipped by 35.7 per cent, as a total of 252.29 million shares worth N1.61bn were exchanged in 4,068 deals, compared to 392.80 million shares valued at N3.04bn traded in 3,906 deals the preceding day. The market further closed the week on Friday on a high note, as the twin market indicators, the All-Share Index and the market capitalisation climbed by 1.09 per cent each.
Specifically, the All-Share Index rose by 248.1 basis points to close the week at 22,741.06 points, while the market capitalisation rose by N79 billion to close at N7.259 trillion.Share