Stock Investors Gain N107bn Amid Earnings Reports

Equity investors in the Nigerian Stock Exchange Limited gained N107.35bn last week as listed firms continued the announcements of their earnings and dividends to shareholders.

The market capitalisation of equities increased by 0.68 per cent to close at N20.22tn while the NGX All Share-Index saw rose to 38,810.75 basis points from 38,547.08bps the previous week.

Trading activity dropped as volumes of shares traded by investors reduced by 27.98 per cent from 1.37 billion shares valued at N11.82bn in 22,982 deals to 989.59 million shares worth N8.18bn exchanged in 19,617 deals the previous week.

All other indices finished lower with the exception of NGX-Main Board, NGX Premium, NGX Lotus II and NGX Sovereign Bond indices, which appreciated by 1.07 per cent, 0.30 per cent, 0.29 and 0.45 per cent respectively, while the NGX Growth Index closed flat.

The NGX also revealed in its weekly report that the financial services industry led the activity chart by volume with 603.66 million shares valued at N3.86bn traded in 9,337 deals, thus contributing 61.00 per cent and 47.22 per cent to the total equity turnover volume and value respectively.

The conglomerates industry followed with 102.23 million shares worth N133.99m in 846 deals. In the third place was the consumer goods industry, with a turnover of 80.98 million shares worth N1.25bn in 2,902 deals.

Twenty-three equities appreciated in price during the week as against 37 in the previous week, while 36 equities depreciated in price as against 35 equities in the previous week. However, 97 equities remained unchanged higher than 84 equities recorded in the previous week.

The gainers’ chart was led by Cutix Plc, which saw an increase of 17.95 per cent to end the week at N5.65 per share. Regency Alliance Insurance Plc came next, with a 14.29 per cent rise in share price to N0.48.

Other top gainers were Conoil Plc, which rose by 10.00 per cent; Transcorp Hotels Plc, which gained 9.80 per cent, and Julius Berger Plc, whose share price increased by 8.89 per cent.

Neimeth International Pharmaceuticals Plc depreciated the most as it dropped by 14.29 per cent to N1.50 per share. It was followed by AIICO Insurance Plc with a 12.04 per cent decrease, closing at N0.95 per share. Juli Plc (-9.76 per cent) and Caverton Offshore Group Plc (-7.69 per cent) were the other major losers as trading ended on the floor of the NGX on Friday.

Analysts at Cordros Capital, in their weekly report, said in line with their expectations, positive sentiments returned to the local bourse last week as the gradual release of corporate earnings bolstered buying interests in dividend-paying stocks.

“Save for the penultimate trading day, the market recorded gains on all five trading sessions,” they added.

Analysts at Meristem Securities Limited also noted that the mood in the Nigerian equities market was largely positive last week as the market closed up on four out of the five trading days.

“There was a continuation of H1:2021 earnings releases that started last week, with Consolidated Hallmark Insurance Plc, Cadbury Nigeria Plc, Conoil Plc, MRS Plc posting mixed results. In addition, CHI declared an interim dividend of 2 kobo per 50 kobo ordinary shares,” they said.