…as analyst advises on 3 top-traded stocks
Despite the suspension of the Director-General of the Securities and Exchange Commission, Mr. Mounir Gwarzo, for alleged financial impropriety, market indices of the Nigerian Stock Exchange rose by 0.62 per cent, while Total Nigeria, 7UP Bottling Company and Dangote Cement emerged the most traded stocks last week.
Based on the stock performance for November 30, 2017, the analysts are optimistic that the shares of those companies will deliver an impressive return on investment to their shareholders, at the end of the last quarter of the year.
An Insurance broker and financial commentator, Mr. Andrew Omole, said the gains garnered by the stocks in different sectors last week had proved that investors were taking advantage of the capital market recovery, which, for a very long time, had derailed.
Omole explained that in time past, investors were skeptical about putting their money on just any stock, because of policy inconsistency in the country. “At least, it is a welcome development that gradually, investors are beginning to take advantage of the market recovery to invest wisely,” he said.
A financial analyst, Mr. Bolaji Oladejo, said although the capital market was actually improving, there was still much to be done in terms of sensitising the local investors on how and when to take advantage of good stocks in market.
“Nigeria is approaching the electioneering year; this is the time of uncertainty because investors may be wary about the policy direction of government. So, I would advise investors to carefully invest in bluechip companies and performing stocks for good return on investment.”
However, it was a four-day trading week as the Federal Government of Nigeria declared Friday, 1st December, 2017 as a Public Holiday to mark the Eid-el-Maulud celebration.
A total turnover of 14.257 billion shares worth N35.056 billion in 17,379 deals were traded last week by investors on the floor of the Exchange, in contrast to a total of 2.182 billion shares, valued at N22.795 billion, that exchanged hands in the previous week, in 17,019 deals.
The Conglomerates Industry (measured by volume) led the activity chart with 396 billion shares, valued at N14.534 billion traded in 890 deals; thus contributing 79.94 per cent and 41.46 per cent to the total equity turnover volume and value, respectively.
The Financial Services Industry followed with 2.484 billion shares, worth N9.797 billion in 9,205 deals. The third place was occupied by Consumer Goods Industry with a turnover of 164.156million shares, worth N8.127 million in 4,405 deals.
Trading in the Top Three Equities namely, Transnational Corporation of Nigeria Plc, Wapic Insurance Plc, and Fidelity Bank Plc (measured by volume) accounted for 12.998 billion shares, worth N15.494 billion in 1,813 deals, contributing 91.17 per cent and 44.20 per cent to the total equity turnover volume and value, respectively.
The NSE’s All-Share Index and Market Capitalisation appreciated by 1.55 per cent and 1.58 per cent to close the week at 37,944.60 and N13.215 trillion respectively. Similarly, all other indices finished higher during the week with the exception of the NSE ASeM Index that closed flat.