Traders Maintain Preference for Financial Stocks on NSE

financial stocks

By Modupe Gbadeyanka

The preference for financial stocks over equities of other sectors on the floor of the Nigerian Stock Exchange (NSE) by investors continued last week.

During the week, shares in the financial services sector dominated the activity chart by contributing 53.51 percent and 51.73 percent to the total equity turnover volume and value respectively. A total of 1.1 billion shares valued at N13.7 billion traded in 13,739 deals were transacted in the sector.

According to data harvested from the NSE over the weekend, securities in the healthcare industry followed with 521.9 million units valued at N183.0 million in 420 deals, while stocks in the conglomerates industry exchanged 123.6 million units worth N573.9 million in 1,164 deals.

A further breakdown showed that Union Diagnostic & Clinical Services, Access Bank and Zenith Bank accounted for 878.0 million shares worth N8.4 billion in 5,251 deals, contributing 42.06 percent and 31.73 percent to the total equity turnover volume and value respectively.

At the close of business for the week, traders transacted a total of 2.1 billion shares worth N26.5 billion in 24,262 deals compared with the 2.7 billion equities valued at N32.7 billion exchanged in 30,956 deals the previous week.

Despite the activity level going down, the All-Share Index (ASI) and market capitalisation recorded weekly gains, growing by 0.69 percent and 0.54 percent respectively to close at 29,618.52 points and N15.256 trillion apiece.

Business Post reports that all other indices finished lower with the exception of NSE 30, NSE CG, NSE Premium, NSE Banking, NSE AFRI Bank Value, NSE MERI Value and NSE Oil/Gas index, which appreciated by 0.66 percent, 0.64 percent, 3.85 percent, 2.30 percent, 2.67 percent, 1.74 percent and 0.57 percent respectively while NSE ASeM index closed flat.

A total of 21 equities appreciated in price during the week, lower than 51 equities in the previous week, while 42 equities depreciated in price, higher than 20 equities in the previous week, with 100 equities remaining unchanged, higher than 92 equities recorded in the preceding week.

Forte Oil led the gainers’ chart with a price appreciation of 21.89 percent to settle at N20.60 per share, while Beta Glass rose by 18.77 percent to finsh at N63.90 per share, with GlaxoSmithKline rising by 13.21 percent to end at N6 per share.

On the decliners’ table, Consolidated Hallmark Insurance claimed the top spot as its share price dropped 14.29 percent to close at 36 kobo per share, NEM Insurance depleted by 13.66 percent to close at N1.96 per share, while BUA Cement depreciated by 12.20 percent to close at N36 per share.

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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