As transactions on the Nigerian Stock Exchange opened for the month of February on a positive note, analysts and market operators have advised
investors to go for the stocks of FCMB Plc, Transcorp Plc, and Skye Bank Plc, among others.
They collectively said that with the impressive performance witnessed in the capital market, the value of the shares would be sustained in the new week and beyond.
A stockbroker, Mr. Jacob Adeniran, explained that the unprecedented rebound witnessed in the nation’s stock market in 2017, which boosted the market capitalisation by N4.5 trillion, is expected to replay till the end of second quarter.
“There is the need to implement appropriate legislation that would compel the Federal Government to fund the nation’s infrastructural development through the capital market for a sustainable recovery.
“It is commendable that week-in-week-out, sectorial stocks compete on the trading floor, but the federal government should do more in the implementation of appropriate legislation,” he said.
The Chairman, Association of Stockbroking Houses of Nigeria, Mr. Patrick Ezeagu, explained that one of the major challenges facing the market is how to restore investors’ confidence and to sustain the bullish trend.
“Last week, the banking stock, which belongs to the financial service industry, and Transcorp Plc, led the activities chart. Investors should, therefore, monitor their stock performance and the fundamentals that led to the upward trend of such stocks,” he said.
Meanwhile, a total turnover of 3.268 billion shares worth N28.123 billion in 35,761 deals were traded last week by investors on the floor of the Nigerian Stock Exchange, in contrast to a total of 7.157 billion shares valued at N42.545 billion that exchanged hands previous week in 39,037 deals.
The Financial Services Industry (measured by volume) led the activity chart with 2.482 billion shares valued at N17.056 billion traded in 23,039 deals; thus contributing 75.96 percent and 60.65 percent to the total equity turnover volume and value respectively. The Conglomerates Industry followed with 375.113 million shares worth N1.047 billion in 1,968 deals. The third place was occupied by Consumer Goods Industry with a turnover of 262.198million shares worth N6.843 billion in 5,921 deals.
Trading in the Top Three Equities namely: FCMB Group Plc, Transnational Corporation of Nigeria Plc, and Skye Bank Plc (measured by volume) accounted for 1.181 billion shares worth N2.830 billion in 5,219 deals, contributing 36.14 percent and 10.06 percent to the total equity turnover volume and value respectively.
Also traded during the week were a total of 32,189 units of Exchange Traded Products valued at N1.299 million executed in 19 deals, compared with a total of 153,755 units valued at N1.883 million that was transacted last week in 11 deals. A total of 16,268 units of Federal Government Bonds valued at N17.053 million were traded this week in 28 deals, compared with a total of 6,715 units valued
