Three banks belonging to the Tier One banks have emerged investors’ delight, as analysts in the financial system advise investors to channel their investment portfolio into them.
Trading in the three equities namely: Zenith International Bank Plc, Access Bank Plc, and United Bank for Africa Plc, accounted for 543.758 million shares, worth N9.739 billion, which were traded in 3,533 deals, contributing 30.81 per cent and 36.66 per cent to the total turnover volume and value, respectively.
However, some analysts and market commentators have attributed the impressive performance to the large-volume movements, based on sound market criteria.
The Managing Director of Cowry Asset Management Company Limited, Mr. Johnson Chukwu, said although the market might be reacting positively now, there were unknown factors of who the government would appoint as key economic managers and their economic orientation.
“These are facts that every market would react to ahead of an election. A lot of people will pull back and put their investments in safer assets and watch. I am talking about even domestic investors. For foreign investors, many would want to exit and watch as the elections are held,” he said.
Analysts at Cardinalstone Finance, a Lagos-based investment house, said the banks’ fundamentals were still strong enough to withstand present instabilities in the financial markets, including equities.
“The banks delivered a solid growth in their earnings, supported by interest income and foreign exchange gains. Also, a combination of robust gross earnings and improvement in operating efficiency translated into a remarkable growth,” he said.
Meanwhile, a total turnover of 1.765 billion shares, worth N26.562 billion, were traded last week, in 20,265 deals, by investors on the floor of the Exchange, in contrast to 2.328 billion shares, valued at N28.927 billion, that exchanged hands the previous week, in 25,530 deals.
The Financial Services Industry led the activity chart with 1.468 billion shares, valued at N8.707 billion and traded in 12,850 deals; thus contributing 83.18 per cent and 70.43 per cent to the total equity turnover volume and value, respectively.
The Conglomerates Industry followed with 127.882 million shares, worth N623.871 million in 971 deals. The third place was occupied by Consumer Goods with a turnover of 69.868 million shares, worth N6.189 billion, in 2,930 deals.
Also traded during the week were a total of 125,282 units of Exchange Traded Products, valued at N2.835 million, executed in 11 deals, compared with a total of 15,293 units, valued at N254,840.00 that were transacted last week in 16 deals.
A total of 4,457 units of Federal Government Bonds, valued at N4.247 million, were also traded last week in 13 deals, compared with a total of 21,583 units, valued at N22.868 million, exchanged in 16 transactions.
The NSE’s All-Share Index and Market Capitalisation of listed equities depreciated by 1.60 per cent to close the week at 40,841.14 and N14.753 trillion, respectively.
