Some financial analysts have advised investors to consider the shares of top three banks-United Bank for Africa Plc, Zenith International Bank Plc and FBN Holdings Plc, for the weeks ahead.
Managing Director, Cowry Asset Management Company, Mr. Johnson Chukwu, said the banking industry has always been on the top of performing stocks at the Nigerian Stock Exchange, but cautioned that the domestic investors should be careful in their investment decision on equities, as the market is likely to record continuous drop, given the challenging macroeconomic environment.
The Managing Director of Highcap Securities Limited, Mr. David Adonri, also said investors’ confidence had been reinforced by relatively increased corporate earnings that are consistent with forecasts, while some companies actually exceeded forecasts.
He added that the business environment in Nigeria is becoming more conducive with the stability in FOREX market and a reduced insecurity level. “A range of government policies aimed at stimulating economic growth and the use of made-in-Nigeria initiative have combined to strengthen investors’ confidence in the economy.”
Adonri, as such, advised that investors should consider the shares of the tier-one banks (UBA Plc, Zenith Bank Plc and FBN Holdings), as they accounted for 325.580 million shares worth N4.854 billion in 3,381 deals.
Meanwhile, it was a four-day trading session last week as the Federal Government declared Friday June 15 and Monday June 18, 2018 public holidays to commemorate the Eid-al-Fitr celebrations.
A total turnover of 1.097 billion shares worth N15.471 billion in 16,288 deals were traded last week by investors on the floor of the Exchange, in contrast to a total of 1.738 billion shares valued at N18.462 billion that exchanged hands last week in 14,790 deals.
The Financial Services Industry led the activity chart with 816.547 million shares valued at N9.425 billion, traded in 9, 263 deals; thus contributing 74.44 per cent and 60.92 per cent to the total equity turnover volume and value, respectively.
The Consumer Goods Industry followed with 76.361 million shares worth N2.992 billion in 2,545 deals. The third place was occupied by Oil and Gas Industry with a turnover of 51.600 million shares worth N594.590 million in 1,744 deals.
Trading in the top three equities, namely, United Bank for Africa Plc, Zenith International Bank Plc and FBN Holdings Plc, accounted for 325.580 million shares worth N4.854 billion in 3,381 deals, contributing 29.68 per cent and 31.37 per cent to the total equity turnover volume and value, respectively.
A total of 370 units of Federal Government valued at N371,261.96 were traded this week in three deals, compared to a total of 9,850 units valued at N9.999 million transacted last week, in 10 deals.
The NSE All-Share Index and Market Capitalisation depreciated by 2.74 per cent to close the week at 37,862.53 and N13.716 trillion, respectively. Similarly, all other indices finished lower with the exception of the NSE Insurance Index that appreciated by 3.55 per cent, while the NSE AseM Index closed flat.