With the torrent of investments made on shares at the Nigerian Stock Exchange, last week, capital market operators have advised shareholders to focus on stocks of some food and beverages, manufacturing, banking and aviation sub-sector firms this week.
Following the performances of some specific shares, the operators said shares of Dangote Sugar Refinery Plc, International Brewery Plc, Unilever Plc, Fidelity Bank Plc and National Aviation Handling Company Plc, among others, were expected to give over 20 per cent return on investment in terms of capital appreciation to their investors.
The Managing Partner, Woodland Capital limited, Dr. Bayo Ajayi, attributed the performances of the shares to the impressive results and several managerial strategies adopted by their owners to survive hard times.
For instance, IB recently got the approval of the Securities and Exchange Commission and its shareholders over its merger with Pabod Breweries Limited and Intafact Beverages limited.
He said, “Such merger will create a platform where significant synergies can be obtained for the benefit of the shareholders, employees and customers and the economy as a whole. That is enough to attract lots of investments and more returns by the end of the year.”
The Chief Consultant, Deltric Consulting Limited, a stockbroking firm, Mr. Dele Ejioye, tasked investors to focus on N.E.M Insurance Plc, Eterna Plc and Neimeth Plc.
His said, “The shares generally at this point in time are in a bearish state. The prices are between N0.57 and N3.00 and that means with little fund, investors can purchase more shares. My advice to investors is that they should use this moment to take position, irrespective of the slight increase in the market shares, because this is the best time to do so.”
Meanwhile, a total turnover of 2.182 billion shares worth N22.795 billion in 17,019 deals were traded last week by investors on the floor of the Exchange in contrast to a total of 2.804 billion shares, valued at N54.776 billion that exchanged hands the previous week in 17,792 deals.
The Financial Services Industry (measured by volume) led the activity chart with 1.755 billion shares, valued at N11.571 billion, traded in 8,730 deals; thus contributing 80.44 per cent and 50.76 per cent to the total equity turnover volume and value respectively.
The Consumer Goods Industry followed with 178.154 million shares, worth N8.655 billion in 4,457 deals. The third place was occupied by Services Industry with a turnover of 143.821 million shares, worth N92,479 million in 470 transactions.
Trading in the Top Three Equities namely – Wapic Insurance Plc, Zenith International Bank Plc and United Bank for Africa Plc (measured by volume) accounted for 973.088 million shares worth N5.854 billion in 2,493 deals, contributing 44.59 per cent and 25.68 per cent to the total equity turnover volume and value respectively.
Also, the NSE’s All-Share Index and Market Capitalisation appreciated by 1.80 per cent and 1.84 per cent to close the week at 37,365.91 and N13.009 trillion respectively. Similarly, all other indices finished higher during the week with the exception of the NSE Oil/Gas Index, which depreciated by 1.45 per cent while the NSE ASeM Index closed flat.
About 36 equities appreciated in price last week, higher than 20 of the previous week. Other 24 equities depreciated in price, lower than 43 equities of the previous week, while 111 equities remained unchanged, higher than 108 equities recorded in the preceding week.
