Nigeria’s equities market sustained positive momentum in the just concluded week as the All-Share Index rose further Week-on-Week by 0.78 per cent to close at 41,763.26 points. Investors were shoulder-high as the market capitalisation added N169.66bn to close at N21.79tn.
Market analysis showed that local investors continue to pump in more funds as quoted companies get set to release their nine months’ financial results.
According to a fresh report released by the Nigerian Exchange Limited on domestic and foreign portfolio participation in equities trading, total equities market transactions increased significantly in September 2021 by 31.13 per cent.
It showed that given the bullish approach of the local institutional investors, the ASI rose by 2.55 per cent to 40,221.17 index points for the month of September.
In the week under review, buying interests were noted on shares of Nigerian Exchange Group, Cutix and Unilever Nigeria, as their respective prices rose by 24 per cent, 21 per cent and 10 per cent W-o-W, to lead the gainers’ table.
On the other hand, share prices of Royal Exchange, Universal Insurance and Academy Press led the losers’ table shedding 17 per cent, nine per cent and eight per cent to close at N0.53, N0.20 and N0.33 respectively.
Sectoral performance was positive, as the industrial index rose by 2.59 per cent to close at 2,166.78 points. The oil and gas and banking indices rose by 1.40 per cent and 0.69 per cent to close at 400.64 points and 375.71 points respectively.
However, the insurance and consumer goods indices fell by 1.31 per cent and 1.05 per cent to close at 170.89 points and 561.00 points respectively.
Market activity was relatively weak, despite the positive market sentiment. This, capital market watchers believe, was mainly due to the decline in volume of transactions on FBN Holdings W-o-W. Hence, the volume and value of stocks traded fell by 44.88 per cent and 41.92 per cent to 1.56 billion units and N18.38bn respectively.
The share price of FBNH came up stronger in past weeks, as Mr Peter Otedola reportedly acquired over five per cent of the FBNH shares.
“On October 23, 2021, FBN Holdings Plc received a notification from APT Securities and Funds Limited, that their client, Mr Otedola Olufemi Peter and his nominee, Calvados Global Services Limited, have acquired a total of 1,818,551,625 units of shares from the company’s issued share capital of 35,895,292,791.
“Based on the foregoing, the equity stake of Mr Otedola Olufemi Peter and his nominee in the company is now 5.07 per cent,” FBNH noted in a statement signed by its Company Secretary, Seye Kosoko.
There has been lackluster attitude towards the market before now, in the first and second quarters, a stockbroker and market analyst, Mr Rotimi Fakayejo, said. “But in the third quarter, we started seeing interest increasing. Right now, I think the market is actually on fire for good.”
In the new week, “We expect savvy investors to take positions in stocks with attractive pricing in anticipation for the earnings season. However, corporate actions from listed companies and other macro-economic developments are likely to impact investors’ decisions,” Proshare researchers said.
Also, analysts at Cowry Asset Management expect the local bourse index to close northwards, as companies begin to release nine months’ 2021 financial results, which they anticipate to be “largely positive.”
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