Investors Increase Investment in Nigerian Stocks

By Modupe Gbadeyanka

Last week, investors increased their investment in Nigerian stocks as the recent bull run has continued to attract many to join the market.

During the five-day trading week, more money was pumped into the Nigerian Stock Exchange (NSE) for the acquisition of stocks from various sectors of the market.

At the close of transactions, a total of 1.7 billion shares worth N18.9 billion exchanged hands in 26,367 deals compared with the 926.4 million shares worth N9.8 billion transacted in 20,910 deals the preceding week.

An analysis of the trades by Business Post showed that traders were attracted more to financial stocks, which led the activity chart with 1.3 billion units valued at N11.4 billion traded in 13,808 deals, contributing 74.08 percent and 60.28 percent to the total equity turnover volume and value respectively.

Other major sectors investors looked into were the industrial goods and the healthcare sectors, which traded 102.4 million shares worth N3.2 billion in 2,956 deals and 99.6 million shares worth N493.4 million in 1,194 deals respectively.

A further breakdown indicated that Zenith Bank, Access Bank and FBN Holdings shares were the most attractive in the week, accounting for 673.1 million units worth N6.8 billion in 5,927 deals, contributing 39.18 percent and 36.09 percent to the total equity turnover volume and value respectively.

In the end, 55 equities appreciated in price during the week, higher than 32 equities in the previous week, while 8 equities depreciated in price, lower than 28 equities in the previous week, with 100 equities closing flat, lower than 103 equities recorded in the preceding week.

Unilever Nigeria ended the week as the best performing stock, gaining 33.86 percent to settle at N17 per unit.

Red Star Express grew by 26.67 percent to end at N3.80 per share, BUA Cement appreciated by 23.42 percent to close at N39 per share, Mobil Oil closed 20.92 percent higher to N213.90 per share, while UAC Nigeria gained 20.14 percent to close at N8.35 per share.

On the flip side, Arbico was the worst performing stock, losing 9.91 percent to close at N2.09 per share.

Afromedia depreciated by 9.68 percent to finish at 28 kobo per share, Royal Exchange lost 9.09 percent to finish at 20 kobo per share, LASACO Assurance fell 7.41 percent to close at 25 kobo per share, while Cornerstone Insurance depreciated by 6.78 percent to end at 55 kobo per share.

According to data from the exchange, both the All-Share Index (ASI) and the market capitalisation appreciated by 5.59 percent wee-on-week to close at 25,204.75 points and N13.136 trillion respectively. Also, all other indices finished higher except the NSE ASeM, which closed flat.