Some financial analysts have highlighted key factors to drive the capital market in 2019, as Tier one banks – United Bank for Africa Plc, Zenith Bank Plc and FBN Holdings Plc – accounted for 791.318 million shares, worth N10.817 billion, in last week’s trading.
Analysts at Afrinvest (WA) said it was expected that the market performance would strengthen in 2019, and that the market would be shaped by four factors, which include post-election stability, new listings, macroeconomic indicators and corporate earnings.
“Historically, foreign investors have been the major participants in the Nigerian equities market. In 2018, domestic investors contributed the bulk in terms of market activity due to the exit of foreign investors from the domestic market. However, the banking industry remains investor’s delight any day,” they said.
A stock analyst, Mr. Jide Kazeem, said after the conclusion of the general elections, investors would place a premium on investment decisions, based on fundamental analysis of companies as opposed to speculative trading.
“We believe that performance of corporates will be a major consideration in 2019. Our expectation for corporate performances varies across sectors, with our optimistic expectations tilted towards the banking sector, especially the Tier-1 players that have historically demonstrated resilience amidst tougher operating conditions,” he said.
Meanwhile, a total turnover of 1.894 billion shares, worth N26.884 billion, were traded last week, in 19,213 deals. This was in contrast to a total of 1.452billion shares, valued at N14.788 billion that exchanged hands the previous week in 19,318 deals.
The Financial Services Industry led the activity chart with1.498 billion shares, valued at N19.724 billion, traded in 12,581 deals; thus contributing 79.10 per cent and 73.37 per cent to the total equity turnover volume and value respectively.
The Consumer Goods Industry followed, with 144.426 million shares, worth N4.552 billion in 2,484 deals. The Conglomerates Industry clinched the third place, with a turnover of 143.320 million shares, worth N220.050 million, in 998 deals.
Trading in the Top Three Equities, namely: UBA, Zenith Bank and FBN Holdings (measured by volume) accounted for 791.318 million shares, worth N10.817 billion, in 5,046 deals, contributing 41.79 per cent and 40.23 per cent to the total equity turnover volume and value respectively.
Also traded last week were a total of 6,590 units of Exchange Traded Products, valued at N55, 711.29 executed in two deals, compared with a total of 668 units, valued at N58, 897.50, exchanged last week in 21 deals.
The NSE’s All-Share Index and Market Capitalisation of listed equities appreciated by 2.92 per cent to close the week at 31,529.92 and N11.758trillion, respectively. Similarly, all other indices finished higher with the exception of the NSE Industrial Goods Index that depreciated by 0.66per cent.
