Forward looking investors lift market sentiment as Julius Berger tops gainers’ chart

Forward looking investors are capitalising on the low equity prices to take position in stocks that have the potential to deliver strong growth before year end.

The activities of these investors have started to reverse the losses the Nigerian equity market posted in 2018. As at the end of the second week in January 2019, the number of equities that appreciated year to date rose to 20 with the construction giant, Julius Berger topping the list. Julius Berger’s share price closed at N28.40 per share, recording 41.3 percent price appreciation year to date.

Cornerstone Insurance closed at 22 kobo per share which translated to 10 percent year to date price appreciation. Cutix gained 9.8 percent YTD to close at N1.80 while John Holt and Livestock Feeds closed at 48 kobo and 53 kobo respectively translating to 9.1 percent and 8.2 percent appreciation YTD.

Others stocks that are among the advancers year to date are Trans Nationwide Express, 7.7 percent; Okomu Oil, 7.6 percent; Union Bank, 7.1 percent; Jaiz Bank, 6 percent; Red Star Express and Wapic , 4.8 percent each; Sterling Bank, 4.2 percent; Union Dicon , 4 percent; CCNN, 3.1 percent; Vital Foam, 2.3 percent and African Prudential, 2.1 percent. the list also includes International Breweries and AIICO, 1.6 percent each; Forte Oil, 1 percent and United Capital, 0.4 percent.

The share prices of 15 stocks remained unchanged while those of 58 other stocks shed various amounts. Unity Bank, Resort Savings and NEM are the worst performing stocks in week two 2019, after the shed 22.4 percent, 26 percent and 35.9 percent from their opening prices.
On the contrary, the first week of trading in 2019 recorded 17 gainers, 42 losers while the share prices of 31 other equities remained unchanged.

At the end of the second week in January 2019, the All Share Index (ASI) closed at 29,830.70 basis points as against 30,638.90 basis points at the end of the first week of trading and 31,430.50 basis points by the close of business in 2018, representing a year to date returns of -5.09 percent. The week two ASI return in 2019 compares with 11.74 percent return in similar period in 2018 and -2.04 percent return in 2017.

Investors traded 1.265 billion shares in the second week of this year worth N14.074 billion done in 19,278 deals as against 1.647 billion shares traded in 14,773 deals in the first week of trading in this year valued at N8.413 billion.

The financial services sub sector accounted for 84.73 percent of the market volume and 62.49 percent of the market value as investors traded 1.072 billion shares worth N8.79 billion executed in 12,278 deals. The conglomerates industry, with 83.6 million shares estimated at N155.49 million in 750 deals, was the second most active sector. The consumer goods industry was third recording 50.54 million shares valued at N3.43 million executed in 2,576 deals.
The market listed new debts. A total of 30,020 units of 12.39 percent FGS Nov 2020; 341,328 units of 13.39 percent FGS Nov 2021; 63,959 units of 12.40 percent FGS Dec 2020, as well as 300,007 units of 13.402 percent of FGS Dec 2021 were admitted at the Nigerian Stock Exchange on January 8, 2019.

Furthermore, the Nigerian Mortgage Refinancing Company Plc N11 billion 13.80 percent Series 2 Bond under the N440 billion Medium Term Note Program was equally admitted to trade at the NSE on January 10, 2019.

TELIAT SULE