Financial experts and capital market operators have advised investors on the shares of Diamond Bank Plc, FBN Holdings Plc and Custodian Investment Plc for the weeks ahead.
The three most traded stocks, during last week, measured by volume, accounted for 465.000 million shares, worth N2.044 billion in 2,448 deals, contributing 36.75 per cent and 14.53 per cent to the total equity turnover volume and value respectively.
Managing Director/ Chief Executive Officer, Heritage Investment Limited, Mr. Abimbola Kazeem, said the performance of the stock market over the years, underscored the fact that it was not delinked from the macro economy, saying that “it has witnessed boom and burst cycles in response to oil price volatility.”
“Given the country’s mono product economy, the market has been bullish for most of the time, following rising oil prices, and bearish when oil prices decline. The banking industry remains the most active sector, therefore investors are advised to make an informed decision when choosing active stocks,” he added.
Prof. Sheriffdeen Tella of the Department of Economics, Olabisi Onabanjo University, Ago-Iwoye, said the market had not really grown over the years in terms of modus operandi.
Tella said the market had moved from analogue to digitised operations, but was still shallow in terms of the number and the calibre of firms that were listed on it.
“Most firms on the stock exchange are local rather than international. So, there is the need to reform the Exchange to attract or encourage listing by foreign or international businesses to increase its depth,” Tella said.
Meanwhile, a total turnover of 1.265 billion shares, worth N14.074 billion were traded last week, in 19,278 deals, by investors on the floor of the Exchange in contrast to a total of 1.647 billion shares, valued at N8.413 billion that exchanged hands in the previous week, in 14,773 deals.
The Financial Services Industry, measured by volume, led the activity chart with 1.072 billion shares, valued at N8.795 billion, traded in 12,287 deals; thus contributing 84.73 per cent and 62.49 per cent to the total equity turnover volume and value respectively.
The Conglomerates Industry followed with 83.595 million shares, worth N155.485 million in 750 deals. The third place went to Consumer Goods Industry with a turnover of 50.537 million shares, worth N3.432 billion, in 2,576 deals.
Also traded during the week were a total of 15,288 units of Exchange Traded Products, valued at N236, 445.40 executed in four deals, compared with a total of 395 units, valued at N816, 344.70, exchanged last week in 13 deals.
A total of 17,996 units of Federal Government Bonds, valued at N18.426 million, were traded this week in 10 deals, compared with a total of 7,209 units, valued at N6.958 million, transacted last week in eight deals. The NSE’s All-Share Index and market capitalisation of listed equities depreciated by 2.64 per cent to close the week at 29,830.70 and N11.124 trillion respectively.
