Transactions on the floor of the Nigerian Stock Exchange (NSE) eased off the Coronavirus fears a bit as bellwethers particularly 11 Plc, UACN, among others, recorded gains at the close of transactions on Friday.
The first incidence of the Coronavirus in Nigeria had sent investors particularly the foreign participation scampering for safety in other instruments and this took a turn as Monday’ session ended in red.
The All-Share Index (ASI) dropped 1.53 per cent to 25,816.57 points due to the losses in the shares of Nestle, Wapco and GT Bank.
Consequently, the Year-to-Date (YtD) return declined further to -3.8 per cent while investors shaved off N218.3 billion as market capitalisation fell to N13.449 trillion.
Tuesday’s session, however, saw bargain hunting in the shares of MTNN, Nestle and GT Bank which pushed the benchmark index up by 1.70 per cent.
Consequently, the market capitalisation increased to N13.681 trillion as investors gained N232 billion while Year-to-Date (YtD) loss moderated to -2.2 per cent.
Sentiments remained positive on the floor of the Nigerian Stock Exchange (NSE) with the market capitalisation rising by over N84 billion as bargain hunting continued across Tier I banking stocks on Wednesday.
This was even as the ASI rose by 0.61 per cent to 26,415.54 points with the Year-to-Date (YtD) loss moderating to -1.6 per cent while investors gained N84 billion as market capitalisation closed yesterday’s trading at N13.764 trillion.
Thursday’s session saw undervalued stocks clinched by bargain investors, catapulting the market’s ASI up by 0.04 per cent to 26,426.20 points.
Due to gains in Stanbic, Zenith Bank and ETI, the market’s Year-to-Date loss moderated to -1.5 per cent while market capitalisation increased by N6 billion to close at N13.782 trillion.
Friday’s session saw the return of the bears as the index dropped down to 0.55 per cent to close the week at 26,279.61 points, appreciating by 0.24 per cent Week-on-Week while market capitalisation increased by N37 billion to close at N13.695 trillion.
Reacting to development, analysts say investors might have changed their minds considering the ongoing process of demutualisation of the NSE.
Hundred per cent of the NSE members at a Court Ordered Meeting (COM) recently voted and assented to the re-registration of the exchange as Nigerian Exchange Group Plc; the transfer of its securities exchange licence and other assets required to carry out the securities function to Nigerian Exchange Limited and the establishment of a separate subsidiary company to be charged with the regulatory functions of the exchange post-demutualisation to be called NGX Regulation Limited.
The members also gave its approval to the total share capital being N1.25 billion comprising 2.5 billion ordinary shares of 50 kobo each to be registered with the Corporate Affairs Commission (CAC), allotment of 1.96 billion ordinary shares to Dealing Members and Ordinary Members on the basis of a ratio of 78:22, respectively.
Speaking to Sunday Sun, the former Director General, NSE, Ndi Okereke-Onyiuke said that the demutualisation exercise would unlock new opportunities and attract more foreign investment for the exchange.
Additionally, she said the exchange would have access to fund that would enable it execute capital projects without dependent on the government aid.
Her words, “It is good, not only for stockbrokers and investors, but for Nigerians as a whole. It is good to have a demutualised exchange in Nigeria. I feel that people have come to understand what the stock exchange is all about. With this demutualisation, a lot of people will come into the exchange since we have already gone through the process of teaching Nigerians how to be shareholders in quoted companies. I want to advice them to see the NSE now as a quoted company, it will have to behave like a father, and the exchange must maintain the rules and obey the rules.
“The exchange can attract further highly experienced staff, foreign investors now and foreign stockbroking firms. This is because the exchange is now opened up to the world. With this demutualisation, anybody in any part of the world can have access to stock market activities”.
According to her, the exchange will have a lot of money to execute high level plans and people that will invest in the exchange will also make money. It is the best thing that will happen to the Nigerian economy. It will definitely move the country forward because it is the engine room of the economy.”
Meanwhile all other indices finished higher with the exception of NSE Main Board, NSE Pension, NSE AFR Div Yield, NSE MERI Growth, NSE Consumer Goods, NSE Lotus and NSE Industrial Goods indices which depreciated by 1.34, 0.91, 0.91, 2.36, 5.87, 2.28 and 4.27 per cent while NSE ASeM Index closed flat.
A total turnover of 1.814 billion shares worth N26.008 billion in 23,494 deals were traded this week by investors on the floor of the Exchange, in contrast to a total of 1.547 billion shares valued at N24.263 billion that exchanged hands last week in 21,646 deals.
The Financial Services industry (measured by volume) led the activity chart with 1.382 billion shares valued at N16.909 billion traded in 16,275 deals; thus contributing 76.20 and 65.02 per cent to the total equity turnover volume and value respectively.
The Services followed with 98.557 million shares worth N263.837 million in 369 deals while the ICT industry recorded a turnover of 89.782 million shares worth N598.016 million in 800 deals.
Trading in the Top Three Equities namely, Guaranty Trust Bank Plc, Zenith Bank Plc and United Bank for Africa Plc (measured by volume) accounted for 784.482 million shares worth N14.610 billion in 9,337 deals, contributing 43.25 and 56.17 per cent to the total equity turnover volume and value respectively.
Thirty-six equities appreciated in price during the week, higher than six equities in the previous week. UACN topped the gainers’ chart with 22.89 per cent to close at N1.02, Sky Aviation followed with 20.66 per cent, FBN Holdings rose by 13.8 per cent to close at N5.35 while 11 Plc advanced by 9.98 per cent to close at N146.50.
On the flipside, 25 equities depreciated in price, lower than 58 equities in the previous week, while 102 equities remained unchanged, higher than 99 equities recorded in the preceding week.