Investors gain N511bn as market set for another bullish run Tuesday, Jun 9 2009

By Stanley Oronsaye

The Nigerian stock market was very active last week. Despite a 19.2 per cent drop in the volume of shares traded from 2.6 billion shares to 2.1 billion shares, the value of transaction rose marginally by 5.85 per cent from N16.06 billion the previous week to N17 billion. The market activity, as represented by the number of deals, however, increased by 22.5 per cent from 33,371 deals to 40,867 deals.
The All share index rose by 8.84 per cent last week, adding 2,192.62 points while the value of investors’ holdings rose significantly by N510.8 billion to N6.14 trillion. The market capitalisation opened this year at N6.9 trillion.
As a result, all four sectoral indices appreciated. The NSE Food and Beverages Index rose by 5.1 per cent, the NSE banking index went up 11.1 per cent, the NSE Insurance index rose 2.8 per cent  and the oil and gas index went up 5.7 per cent.
Analysts attribute this new rally to the activity of foreign portfolio investors who are again showing interest in the Nigeria market. This is on the back of favourable corporate earnings which still suggests a comparatively robust market despite the global economic meltdown.
Also, the manner the Central Bank of Nigeria (CBN) has creatively managed the monetary and the foreign exchange crisis give the impression that the Nigerian economy would stand up stronger than many other emerging economies.
The latest endorsement was from the International Monetary Fund (IMF)which commended the apex banking industry regulator for its creative use of the monetary space in handling the crisis. The IMF also projects that the Nigerian stock market would begin to show relative recovery from this year.
Already, discerning portfolio managers and other institutional investors are taking position in anticipation of the imminent rally. As is expected in the early days of a bullish run, blue chip stocks are the most attractive, recording significant price gains at the end of each trading session. At the close of session last week, major stocks such as Conoil, Guinness, Flour Mils of Nigeria, African Petroleum, Nigerian Breweries, Zenith Bank, First Bank, Oando and others were the top price gainers. Due to the high market capitalisation of these stocks, this resulted in the significant rise of market performance indicators at the end of the week.
Institutional investors, both local and foreign, are taking position in firms with good brand name, diverse and experienced board composition and with good corporate governance. These  investors are attracted to these equities which are currently selling at huge discounts compared to their net asset value. 
Also, funds are moving from the fixed income instruments segment into the equities market as institutional investors are more willing to take medium-term positions in the market. Value of transaction at the over-the-counter (OTC) window dropped by over 40 per cent as investors rearrange their portfolio to reflect the new investment outlook.
Still smarting from the bearish trend at which it ended the previous week, the market closed on Monday on a bearish note as the market capitalisation shed 0.60 per cent and the index went down by 0.81 per cent. This disparity was as a result of the listing by introduction of 4.04 billion units of Afromedia Plc at N2.92 per share. This added N11.8 billion to the market capitalisation. The index went down by 200.86 points and market capitalisation dropped by N33.9 billion.
Investors staked N3.03 billion on 439.96 million shares in 9,900 deals as 40 equities appreciated compared to 57 that shed weight. On the gainers chart, shares of First Inland Bank and Red Star Express appreciated by 5.0 per cent, Conoil rose by 4.99 per cent, Union Homes went up by 4.97 per cent while Diamond Bank and Zenith Bank appreciated by 4.96 per cent. On the other hand, shares of International Energy Insurance,
Daar Communications and Benue Cement depreciated by 5.0per cent while RT Briscoe and UACN shed 4.99 per cent each.
The market staged significant recovery on Tuesday as both performance indicators rose by 3.57 per cent, erasing the losses recorded in the last three trading sessions. The index rose by 877.60 points while the market capitalisation appreciated by N201.74 billion. Investors staked N2.31 billion on 329.6 million shares in 6,684 deals as 70 equities appreciated compared to 25 that shed weight. Shares of Julius Berger, Cement Company of Northern Nigeria, Fidelity Bank, United Bank for Africa (UBA), Intercontinental Bank and Oando all appreciated by the maximum 5.0 per cent each. Price losers included Linkage Assurance, Berger Paints, FTN Cocoa Processing, Vitafoam and Courtville Investments, among others.
Activities of opportunistic buyers reinforced the bullish disposition of the market during the week. The market closed with many stocks closing on bid, with no offer to sell. Analysts attribute this to the activities of institutional investors that are taking position in other to take advantage to the emerging new price discovery. Many stocks are posting goods results, prompting some category of investors to take loner term position than before.
For instance, during the week, Renaissance Capital, a leading investment bank focused on the emerging markets of Russia, Ukraine, Kazakhstan and sub-Saharan Africa, has upgraded its estimate for Guaranty Trust Bank to N19 per share. Shares of the bank closed last week at N11.50, after opening the week at N10.10, indicating a huge buy opportunity for discerning investors.
The market closed bullish on Wednesday as both performance indicators appreciated by 3.40 per cent. The index rose by 866.54 points while the market capitalisation rose by N197.2 billion.
Investors staked N3.3 billion on 373.7 million shares in 6,683 deals as 83 equities appreciated compared to 15 that shed weight. Shares of Guaranty  Trust Bank, Cement Company of Northern Nigeria, First Bank, First City Monument Bank, Nigerian Bags Manufacturing Company and Afribank all appreciated by the maximum 5.0per cent. On the other hand, shares of  Deap Capital, G Cappa and DN  Meyer depreciated by 4.96 per cent while shares of A.G. Leventis and C and I  Leasing shed 4.94 per cent each.
The bullish streak continued on Thursday as both performance indicators rose by 2.70 per cent. The index added 710.11 points and the market capitalisation rose by N161.6 billion. Investors staked N4.3 billion on 513.01 million shares in 8,290 deals as 72 equities appreciated compared to 20 that shed weight. Shares of Consolidated Hallmark Insurance, Regency Alliance Insurance and Wema Bank appreciated by 5.0 per cent while Flour Mills, Cadbury, Cement Company of Northern Nigeria and Bank PHB al appreciated by 4.99 per cent each. On the other hand, shares of Oasis Insurance shed 4.98 per cent, Capital Oil went down 4.97 per cent, C & I Leasing and Presco depreciated by 4.95 per cent, while Crusader shed 4.94 per cent.
The market closed slightly lower on Friday to end the wee on a bearish note. Both performance indicators depreciated by 0.22 per cent. The index went down by 60.77 points and the market capitalisation dropped by N13.83 billion. Investors staked N4.1 billion on 427.5 million shares in 9,310 deals as 61 equities appreciated compared to 35 that shed weight. Shares of Vitafoam, Aiico Insurance and Cornerstone Insurance appreciated by 5.0 per cent while Cadbury and Diamond Bank rose by 4.99 per cent.
On the other hand, shares of First Aluminium depreciated by 5.0 per cent, Oasis Insurance lost 4.99per cent, Avon Crowncaps shed 4.98 per cent while Zenith Bank and Cement Company of Northern Nigeria shed 4.97 per cent each.
The stock market is expected to continue on the bullish run this week, with major equities recording new price discoveries. With investor confidence gradually returning, there is no disregarding the incident of profit-taking, as some investors still smarting from huge price losses suffered are wont to sell-off to clean up their books.
However, with many stocks closing on bid for much of the trading sessions, the indication is that more funds are entering the market to chase the few equities on offer.

 

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Easy does it Monday, Mar 17 2008

The Nigerian stock market sustained its steady marginal growth momentum last week, as the all share index rose by 0.72 per cent. This growth, which can be attributed to cautious trading, was achieved on the back of decline in general market activities. The turnover volume dropped by 35.6 per cent, the value of transaction went down by 28.3 per cent while the number of deals went down by 6.03 per cent respectively from the previous week.

This development is an indication that investors are realigning their portfolio, preferring to stake on stocks of higher value stock as against an earlier preference for penny stocks. Nevertheless, the robustness of the market remains intact as investors’ increase their preference for the bond instruments which has been receiving more patronage in the last few weeks.  The over-the-counter bond market recorded a turnover of 240.4 million units worth N243.94 billion in 1,635 deals. This represents a 42.2 per cent increase in volume turnover, 40.7 per cent increase in value of transaction while the activity as represented by the number of deals increased by 44.4 per cent from the previous week.

The market opened the week on Monday on a positive note as both market performance indicators rose by 0.39 per cent each. The market capitalisation added N49.24 billion while the All Share Index rose by 258.59 points. A total of 662.55 million shares worth N9.32 billion were traded in 16,564 deals. Ninety-two stocks appreciated, dominated by high value stocks, compared to 52 which shed weight.

In percentage terms, SCOA, Grommac, Tropical Petroleum, Oando, Conoil, Nigerian Enamelware and Skye Shelter Fund gained the maximum 5.0 per cent, while Total and Nigeria Energy Sector Fund depreciated by the maximum 5.0 per cent. Other losers include DN  Meyer which lost 4.99 per cent, Afroil by 4.98 per cent while Cutix and Berger Paint lost 4.96 per cent each. Investors showed preference for Dunlop, Universal Insurance, Lasaco Assurance, Intercontinental Bank and Mutual Benefits Assurance, which emerged as the most traded stocks while N1.33 billion, was staked on Intercontinental Bank, the highest on a single equity.

The market sustained its bullish streak on Tuesday as both performance indicators rose by 0.57 per cent each. The market capitalisation rose by N71.5 billion while the index added 375.61 points. A total of 1.05 billion shares worth N14.7 billion were traded in 21,111 deals as 77 stocks appreciated compared to 51 that shed weight.

In percentage terms, JULI Plc, Alumaco, Cadbury, Dangote Flour, Oando and Northern Nigeria Flour Mills all appreciated by the maximum 5.0 per cent while Transnationwide Express, Longman, Redstar Express and Total dropped by 5.0 per cent. DN Meyer and Okomu lost 4.99 per cent each.

Universal Insurance, Dunlop, Unic Insurance, Lasaco and Nem Insurance were the most traded stocks while N891.8 million was staked on the shares of Oceanic Bank, the highest on any stock.

The bullish trend continued on Wednesday as both performance indicators rose by 0.13 per cent. A total of 1.08 billion shares worth N14.5 billion were traded in 22,196 deals as 85 stocks appreciated compared to 48 that shed weight. The market capitalisation added N16.1 billion while the index inched up by 84.62 points.

In percentage terms, Cappa and d’Alberto, Alumaco, Big Treat, C and I Leasing, Oando, Northern Nigeria Flour Mills and Nigeria Enamelware all appreciated by 5.0 per cent. On the other hand,  Nigeria-German Chemicals, United Nigeria Textiles, Mobil, Transnational Corporation, International Breweries, Chellarams and Total all depreciated by 5.0 per cent.

Again, insurance stocks dominated the list of most traded stocks as Universal Insuarance, Guinea Insurance, Nem Insurance, Dunlop and Oceanic Bank were the preference of investors as N1.27 billion and N1.25 billion were staked on the shares of Oceanic Bank and Guaranty Trust Bank respectively, the highest on any equity.

The market slowed down on Thursday as both performance indicators slipped by 0.38 per cent. He market capitalisation dropped by N47.8 billion while the index shed 250.01 points. This is expected as profit takers cashed in on the price gains that was recorded during the week to make some quick gains. A total of 1.08 billion shares worth N14.46 billion were traded in 21,451 deals. Seventy stocks appreciated compared to 63 that shed weight. Investors staked N1.2 billion and N1.01 billion on the shares of First Bank and Guaranty Trust Bank respectively, the highest staked on any equity at the end of the day’s trading.

In percentage terms, Eterna Oil, Afroil, Ekocorp, Cappa and D’Alberto, Juli Plc, Oando and Pharma Deko all appreciated by 5.0 per cent while Julius Berger, DN Meyer, Mutual Benefits Assurance,Afprint, Total and Mobil all depreciated by 5.0 per cent.

Insurance stock continued to dominate the activity chart as Universal Insurance, Goldlink Insurance, Lasaco Assurance, Dunlop and Mutual Benefits Assurance were the most traded.

The market traded flat on Friday as the market capitalisation increased by just N331.5 million and the index rose by only 1.74 points. About 959.94 million shares worth N14.79 billion were traded in 21,916 deals. Eighty-three stocks appreciated, compared to 57 that shed weight. Investors staked N1.18 billion on the shares of First Bank.

In percentage terms, nine stocks, namely Big Treat, Japaul, ABC, Thomas Wyatt, Rietzcot, Oando, Nestle, Cappa and D’ Alberto and NCR all gained the maximum 5.0 per cent, while Transcorp and Conoil shed 5.0 per cent each. United Nigeria Textile lost 4.99 per cent while Airline Services and Livestock Feeds lost 4.98 per cent each.

Shares of Universal Insurance, First Inland Bank, Dunlop, Nigerian Ropes and Nem Insurance were the most sought after.

Market analyst still keep a positive outlook on the market in view of the increasing liquidity in the system. This is boosted by the positive outlook which the Nigerian market continues to hold for investment that makes it attractive for local and international investors.

The International Monetary Fund (IMF) is forecasting that gross domestic product growth in the sub-Saharan region excluding South Africa will be higher than the rest of the world, at around 20 per cent over the next five years. The implication is that the Nigerian market will continue to achieve long-term total returns.

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Nem, GT, Firstinland Tuesday, Mar 11 2008

The stockmarket is currently on a bull run no doubt! Although a good number of equities recently recorded some decline, one must not shy away from taking positons in equities for the future. Insurance stocks are doing well so also is NCR, an ATM company on the exchange. most companies in other sectors of the economy are not let out in the buy craze. for one with forsight, the abnove mentioned stock will do the trick in the medium term. stay with jonbull FINANCIALCLUB for more update…

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