NGX ASI up as investors gain N650bn

Despite reporting three straight trading sessions of losses in the just concluded week, the Nigerian Exchange Limited closed in the positive territory, as investors took interest in telecoms shares.

The share prices of Airtel Africa and MTN Nigeria rose by 12 per cent and nine per cent respectively to close at N871.70 and N191, even as buying interests in Neimeth International Pharma, Red Star Express, FTN Cocoa Processors and Unilever Nigeria shares lifted the NGX All-Share Index to top the gainers table.

The ASI rebounded by 295 basis points Week-on-Week to close at 43,253.01 points, even as the market capitalisation appreciated by 2.95 per cent to close the week at N22.57tn, leaving investors with a gain of N650bn

A total turnover of 1.471 billion shares worth N20.94bn in 20,410 deals were traded by investors on the floor of the NGX in the week, in contrast to the 1.428 billion shares valued at N12.37bn in previous week, in 23,987 deals.

However, the subsector gauges failed to mirror the benchmark index, as most of the indices closed in the red territory. The banking, insurance, oil and gas and industrial indices shed 1.32 per cent, 2.25 per cent, 0.69 per cent and 0.01 per cent to close at 397.96bps, 177.62bps, 381.89bps, and 2,196.50bps respectively. But the consumer goods index rose by 0.63 per cent to close at 568.87bps.

Measured by volume, the financial services industry led the activity chart with 996.555 million shares valued at N10.28bn in 10,565 deals. It contributed 67.74 per cent and 49.09 per cent to the total equity turnover volume and value respectively.

While the conglomerates industry followed with 203.251 million shares worth N1.204bn in 834 deals, the consumer goods industry rested with a turnover of 105.410 million shares worth N3.22bn in 2,789 deals.

Also, measured by volume, FBN Holdings, Sterling Bank and UACN topped trading activities, accounting for 519.011 million shares worth N4.06bn in 1,787 deals, contributing 35.28 per cent and 19.37 per cent to the total equity turnover volume and value respectively.

Of the stocks traded, 27 appreciated in price against 23 in the previous week. While 36 depreciated in price against 43 in the week before, 93 remained unchanged against 90 recorded in the previous week.

Meanwhile, FTNCOCOA had, last week, notified equities trading licence holders of the approval and listing of its Rights Issue of N850m ordinary shares.

“FTN Cocoa Processors submitted an application to Nigerian Exchange Limited share, on the basis of 17 new ordinary shares for every 22 ordinary shares held.

“The Qualification Date for the Rights Issue is Tuesday, November 9, 2021. The approval and listing of a Rights Issue of 1.7 billion ordinary shares of 50 kobo each at 50 kobo per share, on the basis of 17 new ordinary shares for every 22 ordinary shares held,” NGX noted in its weekly report.

Market watchers are of the view that the domestic bourse index will continue on a northward movement in the new week, with the hope that investors will take advantage of some fundamentally sound stocks that shed value.

“We feel investors will continue to position in those companies that have printed higher profitability and are likely to pay good dividends in full year 2021,” analysts at Cowry Asset Management added.

Ehime Alex
Ehime Alex
Ehime Alex reports the Capital Market, Energy, and ICT. He is a skilled webmaster and digital media enthusiast.

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