Nigerian stocks rise 7.46%, market cap crosses N19tn
Investors in the stock market gained N1.34 trillion this week as the Nigerian Stock Exchange All-Share Index and market capitalisation rose by 7.46 percent.
The ASI rose to 36,804.75 basis points from 34,250.74bps a week ago while the market capitalisation surged to N19.24 trillion from N17.902 trillion.
The 7.46 percent rise is the largest weekly gain in five weeks, and the total market value of 36,804.75bps is the highest level since July 31, 2018, according to analysts at Cordros Capital Limited.
Similarly, all other indices finished higher while the NSE ASeM and NSE Growth Indices closed flat.
A total turnover of 1.893 billion shares worth N17.647 billion in 20,660 deals were traded this week by investors on the floor of the Exchange, compared with 2.265 billion shares valued at N20.990 billion that exchanged hands last week in 23,722 deals.
The financial services industry (measured by volume) led the activity chart with 1.489 billion shares valued at N8.385 billion traded in 10,834 deals, thus contributing 78.65 percent and 47.52 percent to the total equity turnover volume and value respectively.
The consumer goods industry followed with 106.986 million shares worth N2.360 billion in 3,447 deals while the third place was occupied by the services industry, with a turnover of 74.754 million shares worth N191.833 million in 448 deals.
Trading in the top three equities, namely Jaiz Bank Plc, FBN Holdings Plc and Niger Insurance Plc (measured by volume), accounted for 761.866 million shares worth N1.468 billion in 1,395 deals, contributing 40.25 percent and 8.32 percent to the total equity turnover volume and value respectively.
Cordros Capital analysts said on Friday that in line with their expectations, the profit-taking activities were short-lived as the bulls returned strongly to the equities market.
They said, “In the short term, we still see scope for expansion in valuation multiples as the hunt for alpha-yielding opportunities, in the face of increasingly negative real returns in the fixed income market, remains positive for stocks.
“However, we advise investors to take positions in only fundamentally justified stocks as the weak macro environment remains a significant headwind for corporate earnings.”
