Equity deals on the NSE slide 11.86% to N97.08bn in July

Investors on the Nigerian Stock Exchange (NSE) exchanged 8.66 billion shares valued at N97. 08 billion transacted in 89,911 deals in July. The value of shares traded represent 11.86 per cent decline from the previous month’s deals.

Data obtained from the NSE by BusinessDay show that investors exchanged 10.46 billion shares in 118.64 million deals valued at N110.15 billion in June.

A monthly data obtained from the NSE showed that the turnover increased by 12.32 per cent when compared with 7.71 billion shares worth N77. 92 billion traded in 100,895 in June.

The Financial Services sector was the toast of investors with 7.45 billion shares valued at N68. 24 billion transacted in 51,991 deals.

United Bank for Africa (UBA) was the most active in the sector having accounted for 2.96 billion shares worth N28 billion in 5,814 deals.

It was trailed by FBN Holdings with 597.61 million shares valued at N3.57 billion transacted in 7,816 deals.

A further breakdown of the month’s activity chart indicated that conglomerates industry came third with a turnover of 432.97 million shares worth N895.02 million in 4,249 deals.

Transcorp was the toast of investors in the sector, accounting for 412.99 million shares valued at N601.78 million achieved in 3,276 deals, while UACN sold 17.11 million shares worth  N290.42 million in 833 deals.

Consumer Goods sector traded 346.18 million shares worth N15.02 million in 14,083 deals.

The equities market has been bullish in the recent weeks, partly driven by the positive results of the half year performance of listed equities and a convergence in foreign exchange market.

The Central Bank of Nigeria (CBN) introduced the Investors’ and Exporters’ foreign exchange (I&E) FX window through a circular dated April 21 2017, ‘in a continuing effort to deepen the FX market and accommodate all FX obligations’.

Since then, the All Share Index has risen to 37,425.15 points, having gained up to 39.26 per cent year-to-date.

The CBN had created at least five exchange rates that it has used to mask pressure on the local currency, but the apex bank is now working to converge the rates and encourage increased foreign participation in the financial system through the I&E FX window intervention.

The NSE All Share Index (ASI) appreciated by 1.5 per cent last week with all except the banking and oil and gas sector indices finished higher during the week.

Doyinsola Afolabi, investment analyst with Afrinvest Securities, said in a media interview on Monday that the bullish trend in the market will likely be sustained as investors expect positive half year results from banking giants Access, Guaranty, and Zenith.

 

INNOCENT UNAH & GIFT DIKE