Banking, Conglomerates, Consumer goods sub-sectors top list
Some financial experts in the nation’s capital market have identified the financial services, conglomerates and consumer food sub-sectors as the viable sectors that potential investors should look out for in 2018.
The Nigerian Representative, Institute of Certified Forensic Accountants, Dr. Richard Mayungbe, explained that discerning investors could make more money in 2018 if they invest in banks, fast moving consumer goods firms and some manufacturing firms.
He said, “If I were to advise anybody with money to invest this New Year, I would tell him or her to go for fast moving consumer goods. This is because most of the funds that will be released by the politicians will go into consumption; so if you have some money to invest, look for consumables, food and beverages that are in high demand and invest in them.”
A stockbroker and fund manager, Mr. Emmanuel Okechukwu, said the Federal Government must maintain consistency in its policies, stressing that this was key to attracting investors.
“When government increased the price of fuel in 2016, it said subsidy on fuel had been removed and that market forces would now determine how much petrol is sold for. But now, the Nigerian National Petroleum Corporation is the only one importing fuel. Can you imagine that, if based on the government’s statement that it had stopped subsidising petrol, a local investor had invited some international partners to be involved in an oil and gas business and they had borrowed money from the bank to build petrol stations only to be told now that the government has gone back to its former subsidy policy. How would they feel? We should stop politicising everything,” he said.
Meanwhile, a total turnover of 2.417 billion shares, worth N18.813 billion, were traded in 20,874 deals during a four-day transaction last week on the floor of the Exchange, in contrast to a total of 1.310 billion shares, valued at N12.635 billion that exchanged hands the previous week in 9,016 deals.
The Financial Services Industry (measured by volume) led the activity chart with 1.677 billion shares valued at N8.734billion traded in 13,033 deals; thus contributing 69.39 per cent and 46.43 per cent to the total equity turnover volume and value respectively.
The Conglomerates Industry followed with 536.922 million shares, worth N1.258 billion in 1,288 deals. The third place was occupied by Consumer Goods Industry, with a turnover of 100.460 million shares, worth N6.951 billion in 3,426 transactions.
Trading in the Top Three Equities namely: Transnational Corporation of Nigeria Plc, Diamond Bank Plc and Skye Bank Plc (measured by volume) accounted for 1.193 billion shares worth N1.681 billion in 2,957 deals, contributing 49.37 per cent and 8.93 per cent to the total equity turnover volume and value respectively.
Also traded during the week were a total of 305, 604 units of Exchange Traded Products (ETPs), valued at N3.498 million executed in eight deals, compared with a total of 276 units, valued at N9,865.34, that was traded last week in 12 deals.
A total of 2,162 units of Federal Government Bonds, valued at N2.016 million were traded this week in nine deals, compared with a total of 422,672 units, valued at N436.190 million transacted last week in 20 deals.
The NSE’s All-Share Index and Market Capitalisation appreciated by 1.78 per cent to close the week at 38,923.26 and N13.851 trillion respectively.
Similarly, all other indices finished higher during the week with the exception of the NSE Premium, NSE ASeM and NSE Lotus II Indices that depreciated by 0.58 per cent, 1.44 per cent and 0.82 per cent respectively.
Fifty-five equities appreciated in price during the week, higher than 32 of the previous week. Twelve equities depreciated in price, lower than 25 equities of the previous week, while 105 equities remained unchanged, lower 115 equities recorded in the preceding week.