Based on the performances of shares of some conglomerates and banks on the floor of the Nigerian Stock Exchange, last week, market analysts have advised investors to buy more of their shares in the new week, as they have potential to give more rewards on investment.
The Managing Director, Afrinvest Securities, Mr. Ayodeji Ebo, explained that investors that put their money in these sectors would make more rewards than their counterparts that choose otherwise.
“There is a strong correlation between the increase of crude oil in the international market and equities performance. Investors should always look out for profitable businesses and those with great prospects. That is one reason the fixed income securities are being mentioned at this time,” he said.
A stockbroker, Mr. Omobola Akinola, said the Economic Recovery and Growth Plan of the Federal Government, which should drive industrialisation, focusing on small and medium enterprises, was expected to yield more returns.
“The Conglomerate topped the activities chart last week and took the shine off its banking counterparts and the same is expected this week. This showed that investors can diversify from the banks to consumer goods for a good return on investment,” he said.
Meanwhile, a total turnover of 7.157 billion shares worth N42.545 billion in 39,037 deals were traded this week by investors on the floor of the Exchange, in contrast to a total of 5.011 billion shares valued at N45.816 billion that exchanged hands last week in 44,569 deals.
The Conglomerates Industry (measured by volume) led the activity chart with 4.110billion shares, valued at N10, 016 billion, traded in 2,454 deals; thus contributing 57.43 per cent and 23.54 per cent to the total equity turnover volume and value, respectively.
The Financial Services Industry followed with 2.757 billion shares, worth N25.398billion in 25,853 deals. The third place was occupied by the Consumer Goods Industry, with a turnover of 156.224million shares, worth N5.304 billion in 5,875 deals.
Trading in the Top Three Equities, namely, Transnational Corporation of Nigeria Plc, FCMB Group Plc and Skye Bank Plc (measured by volume) accounted for 4.786billion shares, worth N11.341billion in 5,216 deals, contributing 66.86 per cent and 26.66 per cent to the total equity turnover volume and value, respectively.
Thirty equities appreciated in price during the week, lower than 40 of the previous week. Forty-four equities depreciated in price, higher than 32 equities of the previous week, while 98 equities remained unchanged, lower than 100 equities recorded in the preceding week.
The NSE’s All-Share Index and Market Capitalisation depreciated by 2.93 per cent and 2.87 per cent to close the week at 43,773.76 and N15.692 trillion, respectively.
Similarly, all other indices finished lower during the week with the exception of the NSE Consumer Goods and NSE Oil/Gas Indices that appreciated by 2.15 per cent and 0.08 per cent, respectively, while the NSE ASeM Index closed flat.
