Capital market analysts have advised shareholders in the Nigerian Stock Exchange to invest in shares of Access Bank Plc, GTBank Plc, Transnational Corporation Plc, Dangote Plc and Aiico Insurance Plc in the last trading week of 2017.
According to the experts, the market’s best performer is the financial services industry and conglomerates, which many analysts and capital market observers believe is a very strategic sector in any economy, particularly as it pertains to efficient implementation of monetary policies.
The Managing Director, Highcap Securities Limited, Mr. David Adnori, expressed optimism in the banking sector, being a better market performer at the end of the fourth quarter of 2017.
He said investors’ confidence had been reinforced by relatively increased corporate earnings that were consistent with forecasts while some companies actually exceeded forecasts.
He however, advised investors to always seek for the advice of their stockbroker in terms of making a choice of equities to invest in.
The MD, Cowry Asset Management Limited, Mr. Johnson Chukwu, explained that the recent market factors supported low valuation in the market, despite the mixed sentiments as many stocks still remained undervalued on the strength of the intrinsic value that should guide the investing public.
He stressed that improvement in the monetary and fiscal policies, among other factors, such as global oil prices, would determine the sustainability of the bullish run in the first quarter of 2018.
Meanwhile, a total turnover of 2.243 billion shares, worth N139.789 billion, were traded last week, in 18,466 deals, by investors on the floor of the Exchange, in contrast to a total of 1.852 billion shares, valued at N51.523 billion that exchanged hands, last week, in 23,863 deals.
The Financial Services Industry (measured by volume) led the activity chart with 984.584 million shares, valued at N10.588 billion, traded in 11,116 deals; thus contributing 43.89 per cent and 7.57 per cent to the total equity turnover volume and value respectively.
The Industrial Goods Industry followed with 564.804 million shares, worth N125.378 billion, in 927 deals. The third place was occupied by Conglomerates Industry with a turnover of 804.447million shares, worth N.921 million, in 689 deals.
Also traded during the week were a total of 3,070 units of Exchange Traded Products, valued at N455, 245, executed in eight deals, compared with a total of 1,120 units, valued at N14, 179, that was transacted last week in four deals.
A total of 3,780 units of Federal Government Bonds, valued at N3.931million, were traded this week in 17 deals, compared with a total of 5,382 units, valued at N5.680 million, transacted last week in 17 deals.
The NSE’s All-Share Index and Market Capitalisation of listed equities appreciated by 0.22 to close the week at 38,522.14 and N13.709 trillion respectively. Similarly, all other indices finished higher during the week with the exception of the NSE ASeM, NSE Consumer Goods and NSE Lotus II Indices that depreciated by 1.82 per cent, 1.37 per cent, and 0.51per cent respectively.
