Investors Pump N34.6bn into Stocks in One Week Amid Growing Interest

By Dipo Olowookere

The growing interest in Nigerian stocks saw an increase in investment in the stock market last week to N34.6 billion from N18.4 billion in the preceding week.

Data obtained by Business Post from the Nigerian Exchange (NGX) Limited indicated some investors are already taking position ahead of the end-of-the-year rush for stocks in anticipation of dividend declaration for the financial year, which ends next month.

In the week, bargain-hunting drove the volume of equities transacted by traders higher to 3.0 billion units from 1.6 billion units and pushed the number of deals higher to 25,932 deals from the previous week’s 21,621 deals.

It was observed that financial stocks were investors’ toast last week, accounting for 1.6 billion units worth N15.6 billion traded in 14,065 deals, contributing 53.33 per cent and 45.18 per cent to the total trading volume and value respectively.

Energy shares trailed with 845.7 million units worth N11.7 billion in 1,706 deals, while the third place was occupied by conglomerates stocks with 220.1 million units worth N335.2 million in 1,238 deals.

The trio of Eterna, FBN Holdings and Transcorp were the most active stocks with the sale of 1.7 billion units valued at N19.7 billion executed in 4,207 deals, accounting for 57.66 per cent and 56.97 per cent of the total trading volume and value respectively.

On the price movement chart, 47 equities appreciated in price during the week, higher than 34 equities in the previous week, while 25 equities depreciated in price, lower than 36 equities in the previous week, with 84 equities closing flat, lower than 86 equities recorded in the previous week.

University Press was the biggest price riser as its value rose by 44.67 per cent to N2.17 and was followed by AIICO Insurance, which grew by 31.91 per cent to N1.24.

Guinness Nigeria appreciated in the week by 23.05 per cent to N36.30, Cadbury Nigeria gained 18.13 per cent to sell for N9.45, while Ecobank went up by 17.88 per cent to N8.90.

At the other end, GlaxoSmithKline finished as the heaviest price decliner after its equity value depreciated by 12.86 per cent to N6.10.

FTN Cocoa dropped 10.20 per cent to sell at 44 kobo, Transcorp Hotels fell by 9.88 per cent to N5.38, FBN Holdings decreased by 9.80 per cent to N11.05, while Regency Assurance lost 9.76 per cent to trade at 37 kobo.

In terms of the overall performance of the stock market last week, it closed positive with a week-on-week growth of 0.66 per cent as the All-Share Index (ASI) and market capitalisation both higher at 42,038.60 points and N21.938 trillion respectively.

Also, all other indices finished higher with the exception of NGX CG and NGX Meri Value indices, which went down by 0.04 per cent and 2.20 per cent respectively, while the ASeM and growth indices closed flat.