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Business News of Sunday, 4 April 2021

Source: Naira Metrics

NSE closes negative after recovering from 7 weeks losses in the previous week

Nigerian Stock Exchange Nigerian Stock Exchange

The NSE All-Share Index depreciated by 0.76% in the week ended Thursday, April 1, 2021. This is after the market recovered from 7 consecutive weeks of losses in the prior week. Overall, the equity market capitalisation dipped by 3.04% in Q1 2021 due to factors such as price markdowns, rising yields and profit-taking.

During the week, prices of 42 equities appreciated, 22 depreciated in price while the remaining 98 equities maintained their prices as the previous week. The total market capitalisation at the close of the market on Thursday was N20.36 trillion, compared to N20.52 trillion in the previous week.

Equity market performanceThere were lesser trading activities in the equity market for the week. 1.45 billion shares worth N19.04 billion were traded through 17,400 deals which is 5.6% and 10.7% less than the volume traded and value traded in the previous week, respectively. This may be because there was no trading activity on Friday due to the Easter holidays.

For the 12th consecutive time, the financial services industry topped the activity chart, trading 1.03 billion units of shares valued at N13.37 billion through 9,179 deals in the week. Activities in just the financial industry alone contributed 71.5% and 70.2% to the total equity turnover volume and value, respectively,  in the week. This is in tandem with the top traded equities by volume which are: Guaranty Trust Bank Plc, Union Bank Nig. Plc and Wema Bank Plc. They accounted for 46.4% and 54.3% of the total market equity volume traded and value traded, respectively, in the week.

The conglomerates followed on the activity chart with 131.37 million traded shares valued at N578.4 million. Volume traded in the conglomerates sector accounted for 9% of the entire market. The consumer goods industry was also highly traded during the week as 92.94 million shares worth N1.75 billion were traded through 2,892 deals during the week.

Only 6 indices closed higher in the week and one (NSE AseM) remained the same. Specifically, the indices that gained in the week are:

The NSE-Main Board Index – +0.06%NSE Pension Index – +0.78%NSE Insurance Index – +2.82%NSE AFR Div Yield Index – +2.64%NSE MERI Value Index – +1.82%NSE Consumer Goods Index – +1.93%On Thursday, Guaranty Trust Bank Plc marked down its stock price from a closing price of N32.85 to an ex-dividend price of N30.15 after a deduction of its final dividend of N2.70. On the same day, Union Bank Nigeria Plc marked down its share price from a closing price of N5.30 to an ex-dividend price of N5.05 after its final dividend deduction of N0.25.

Exchange-Traded Products (ETPs)Trading activities in the ETP market improved during the week as the value of ETFs traded increased from N208.95 million in the prior week to N445.29 million (113.1%). Also, the units traded increased by 318% from 25,905 units in the prior week to 108,271 units at the end of the week.

Specifically, the ETFs traded during the week are NEWGOLD, VETGRIF30, MERGROWTH, SIAMLETF40, STANBICETF30, LOTUSHAL15, VETINDETF, VETBANK and VETGOODS.

Fixed Income Securities MarketAfter the listing of two FGN savings bonds in the prior week, the federal government listed additional units of bonds to three of its pre-existing bonds on the NSE. An extra, 40.01 million units were listed on the 16.2884% FGN MAR 2027 bond bringing the total units outstanding to 808.92 million. Also, for the 12.50% FGN MAR 2035 bond, 86.29 million additional units were listed, bringing the total listed units to 713.20 million. Finally, additional 131.8 million units were listed for the 9.80% FGN JUL 2045 bond, bringing the total units outstanding to 341.26 million.

Despite the listing activities on the bond market, trading activities declined during the week. Units traded declined by 45.9% from 93,124 units in the prior week to 50,358 units at the end of the week. Similarly, the value of units traded declined by 43.3% from N97.5 million to N55.3 million.

Specifically, the bonds traded during the week are: FGSUK2027S3, FGS202164, FG142037S2, FGS202253, FGS202259, FGSUK2025S2 and FGS202375.

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