Stocks Attract N99bn in One Week As Other Investments Offer Low Returns

By Dipo Olowookere

Investors in Nigeria turned their attention to the stock market last week, not minding the high risk involved in the asset class, as the low-risk investments, especially in the fixed-income space, are offering low returns.

Treasury bills rates are not encouraging at the moment to traders because of their single-digit interest, and for investors, who want yields close to inflation at 22.79 per cent, equities are the better option to consider.

Last week, the Nigerian Exchange (NGX) Limited posted the sale of 4.182 billion shares worth N99.048 billion in 41,446 deals, in contrast to the 5.246 billion shares worth N63.417 billion traded in 57,234 deals in the preceding week.

It was observed that stocks in the financial services sector were the toasts of the market participants, as they printed a turnover of 3.015 billion units valued at N36.762 billion in 20,079 deals, contributing 72.08 per cent and 37.12 per cent to the total trading volume and value, respectively.

Energy equities, especially in the downstream, recorded the sale of 311.172 million units valued at N2.128 billion in 3,473 deals, as conglomerates shares sold 180.518 million units worth N787.392 million in 2,111 deals.

UBA, FCMB and Japaul were the most actives stocks in the five-day trading week, accounting for 1.727 billion units worth N18.239 billion traded in 4,707 deals, contributing 41.29 per cent and 18.41 per cent to the total trading volume and value apiece.

The price movement chart showed that 73 equities were on the gainers’ chart versus 29 equities in the previous week, 19 shares were on the losers’ table versus 77 shares in the previous week, and 64 stocks remained unchanged versus 50 stocks a week earlier.

John Holt gained 58.01 per cent to finish at N2.86, Chellarams rose by 32.39 per cent to N2.33, Sterling Holdings improved by 27.33 per cent to N3.96, Ecobank jumped by 27.17 per cent to N16.15, and CWG moved up by 26.38 per cent to N2.97.

Conversely, FTN Cocoa shed 29.08 per cent to N2.00, Courteville dropped 28.09 per cent to 64 Kobo, Abbey Mortgage Bank depleted by 26.32 per cent to N1.12, Linkage Assurance shrank by 20.00 per cent to 64 Kobo, and Japaul slipped by 15.15 per cent to 84 Kobo.

Business Post reports that the All-Share Index (ASI) and the market capitalisation appreciated last by 3.89 per cent each to 65,003.39 points and N35.395 trillion, respectively, as all other indices finished higher except ASeM, which depreciated by 0.07 per cent.