Following the trend in the stock market every week, some financial experts in the nation’s capital market have said that the Bourse has been reacting to the macro-economic environment.
A stock broker, Mr. Adewunmi Okunola, said the shares of Law Union and Rock Insurance Plc, FBN Holdings Plc, and Zenith International Bank Plc have demonstrated investor’s best buy.
Okunola explained that “investing in stocks is a profitable business, if one understands the market very well, but when you fail to know the trends, you might bite your fingers very hard like some did in 2008 during the market crash. Investors must be careful when making a choice of investment.”
But an analyst at Cordros Capital said there were some downside risk factors in the broader political and economic space, which could put a spoke in the wheels of the recent momentum in the markets.
“The key risk is a possibility of capital reversals by foreign portfolio investors in reaction to political risk factors ahead of the 2019 general elections,” he said.
He warned that investors must be very careful in their quest to make investment choice.
“This is because happenings in the political scene have been hitting the stock market, and as the year runs out, more effect would be felt by the market,” he said.
A total turnover of 1.825 billion shares worth N24.653 billion were traded last week in 23,148 deals by investors on the floor of the Nigerian Stock Exchange in contrast to a total of 3.008 billion shares valued at N30.296 billion that exchanged hands last week in 24,036 deals.
The Financial Services Industry (measured by volume) led the activity chart with 1.360 billion shares, valued at N14.642 billion, traded in 12,118 deals; thus contributing 74.51per cent and 59.40 per cent to the total equity turnover volume and value, respectively.
The Consumer Goods Industry followed with 124.816 million shares, worth N6.910 billion in 3,709 deals. The third place was occupied by the Oil and Gas Industry with a turnover of 112.479 million shares, worth N1.389 billion in 3,429 deals.
Trading in the Top Three Equities namely – Law Union and Rock Insurance Plc, FBN Holdings Plc, and Zenith International Bank Plc (measured by volume) – accounted for 581.018 million shares, worth N7.098 billion in 4,283 deals, contributing 31.83 per cent and 28.79 per cent to the total equity turnover volume and value, respectively.
The NSE All-Share Index and Market Capitalisation appreciated by 1.05 and 1.34 per cent to close the week at 41,244.89 and N14.940 trillion,
respectively.
