Shareholders on the floor of the Nigerian Stock Exchange have been advised to spread their investments across the financial services industry such as FBN Holding, Fidelity Bank and Skye Bank Plc, among others, as these outfits are expected to give more returns on investment.
Based on the stock performance last week ended February 23, 2017, the analysts are optimistic that the shares of the firms would deliver about 30 per cent return on investment to their investors.
The analysts also said that multinational companies like telecommunication firms should be compelled to list on the exchange, as this would encourage domestic investors to buy in and deepen the market.
A financial analyst, Mr. David Olubunmi, explained that the emerging markets like Nigeria offer much more robust returns for foreign investors, compared to their home countries that give single-digit returns.
He added that the NSE All-share Index was up by 40% in 2017, one of the best performing in the world.
Commenting on the three most traded stocks for the week, The Managing Director, Cowry Asset Management Company, Mr. Johnson Chukwu, said it was commendable that the volume and value of equities transacted by investors last week appreciated sharply.
He explained that some of the banking stocks became investors’ toast after the Central Bank of Nigeria announced that new policy on dividend may not affect shareholders negatively as expected, adding that discerning investors that inject funds in the shares of the most traded stocks would reap beyond their expectations in the first quarter of the year.
Meanwhile, a total turnover of 2.018 billion shares worth N21.740 billion in 25,496 deals were traded last week by investors on the floor of the Exchange in contrast to a total of 2.940 billion shares valued at N27.924 billion that exchanged hands last week in 28,567 deals.
The Financial Services Industry (measured by volume) led the activity chart with 1.520 billion shares valued at N12.648 billion traded 16,225 deals; thus contributing 75.30 per cent and 58.18 per cent to the total equity turnover volume and value respectively.
The Consumer Goods Industry followed with 130.660 million shares worth N6.912 billion in 4,168deals. The third place was occupied by Oil and Gas Industry with a turnover of 130.163 million shares worth N251.941 million in 1,420 deals.
Trading in the Top Three Equities namely–FBN Holdings Plc, Fidelity Bank Plc and Skye Bank Plc (measured by volume) accounted for 567.824 million shares worth N3.456 billion in 4,891 deals, contributing 28.14 per cent and 15.90 per cent to the total equity turnover volume and value respectively.
Also traded during the week were a total of 111,794 units of Exchange Traded Products (ETPs) valued at N1.806 million executed in10 deals, compared with a total of 25,586 units valued at N3.004 million that was transacted last week in 11 deals.
A total of 9,963 units of Federal Government Bonds valued at N10.057 million were traded this week in 21 deals, compared with a total of 2,785 units valued at N2.627 million transacted last week in16 deals.
The NSE All-Share Index and Market Capitalisation depreciated by 0.16 per cent to close the week at 42,570.89 and N15.277 trillion, respectively.
