Analysts and some market operators at the Nigerian Stock Exchange have advised investors to consider the shares of Union Bank of Nigeria Plc, Sterling Bank Plc and Wema Bank Plc, for the week ahead.
Reacting to the stock performance last week, an investment analyst, Mr. Olubunmi Akanni, said although the banking stock had been thriving, emerging the most traded stock week in, week out. But that does not represent the general performance of the market.
According to him, it is expected that the equity market will grow by 27.43 per cent in 2018, lower than 42.3 per cent achieved in 2017, following the developments in the international and in the domestic markets.
But analysts at Afrinvest Securities Limited said they envisaged that market performance would be largely determined by earning fundamentals of corporate stability in the forex market, other macro indicators, and funds flow dynamics to emerging frontier markets.
“Our analysis of market trend over the past 10 years makes a case for a possible repetition of history, in terms of uncertainties during the electioneering year, whereby foreign investors check out of the market with their funds. This is another area of consideration when choosing a stock,” they said.
Meanwhile, a total turnover of 2.004 billion shares worth N21.582 billion in 18,534 deals were traded this week by investors on the floor of the Exchange, in contrast to a total of 1.097 billion shares valued at N15.471 billion that exchanged hands last week in 16,288 deals.
The financial services industry led the activity chart with 1.509 billion shares, valued at N13.540 billion traded in 10,164 deals; thus contributing 75.32 per cent and 62.74 per cent to the total equity turnover volume and value respectively. The consumer goods industry followed with 237.759 million shares worth N3.441 billion in 3,243 deals. The third place was occupied by Conglomerates Industry with a turnover of 88.374 million shares worth N272.722 million in 777 deals.
Trading in the top three equities namely, Union Bank of Nigeria Plc, Sterling Bank Plc and Wema Bank Plc, accounted for 700.918 million shares worth N2.016 billion in 501 deals, contributing 34.98 per cent and 9.34 per cent to the total equity turnover volume and value,
respectively.
The NSE All-Share index and market capitalisation appreciated by 1.10 per cent to close the week at 38,278.55 and N13.866 trillion respectively. Similarly, all other indices finished higher with the exception of the NSE Banking and the NSE Oil/Gas indices that depreciated by 1.09 per cent and 1.73 per cent respectively.
