Despite persisting selloffs and continued sessions of sideways trading at the Nigerian Stock Exchange, analysts said macroeconomic fundamentals remain militating factors to market rebound.
An investment banker, Mr. Jude Adekoya, said the shares of the three most traded stocks- United Capital Plc, Ikeja Hotel Plc and United Bank For Africa Plc, emerged best buy for the week ended June 14TH 2018, adding that the outlook of the equity market remain positive as the macroeconomic environment in Nigeria is expected to strengthen further in the following weeks.
Adekoya explained that the equity market was expected to grow by 27.43 per cent this year, lower than 42.3 per cent achieved in 2017.
“Looking at the developments in the international and in the domestic markets, we expect the equity market to grow by 27.43 per cent in 2018,” he said.
A stockbroker, and Chief Executive Officer of Sofunix Investment and Communications, Mr. Sola Oni, expressed optimism that the market would pick up, going by some positive economic indicators.
He said, “There is light at the end of the tunnel, as economic variables are showing positive signals.”
Oni added that stocks of various sectors are equally showing modest signals in terms of appreciation, advising that investors must be on the lookout to identify those positive signals before investing.
Meanwhile, It was a four-day trading session last week as the Federal Government of Nigeria declared Friday June 15th and Monday June 18th 2018 public holidays to mark the end of the Holy Month of Ramadan and commemorate the Eid-al-Fitri celebrations.
A total turnover of 1.738 billion shares worth N18.462 billion in 14,790 deals were traded last week by investors on the floor of the Exchange in contrast to a total of 1.749 billion shares valued at N31.183 billion that exchanged hands previous week in 24,604 deals.
The Financial Services Industry led the activity chart with 1.170 billion shares valued at N9.695 billion in 7,809 deals; thus contributing 67.35 per cent and 52.51 per cent to the total equity turnover volume and value respectively.
The Services Industry followed with 293.492 million shares worth N733.407 million which was traded in 531 deals. The third place was occupied by Consumer Goods with a turnover of 154.093 million shares worth N4.997 billion in 3,002 deals.
Consequently, trading in the top three equities namely–United Capital Plc, Ikeja Hotel Plc and United Bank For Africa Plc measured by volume) accounted for 811.747 million shares worth N3.887 billion in 986 deals, contributing 46.71 per cent and 21.05 per cent to the total equity turnover volume and value respectively.
Also traded during the week were a total of 62,392 units of Exchange Traded Products valued at N1.004 million executed in 13 deals, compared with a total of 202,916 units valued at N1.168million that was transacted the previous week in 19
deals.
A total of 9,850 units of Federal Government valued at N9.999 million were traded last week in 10 deals, compared with a total of 10,561 units valued at N10.381 million transacted the upper week in 20 deals.
The NSE All-Share Index and Market Capitalisation appreciated by 0.67 to close the week at 38,928.02 and N14.102 trillion respectively.
