Nigerian Stock Exchange This Week

The Market opened on a positive note but lost the next two consecutive days but however gained for the next two days after to close on a positive note on Friday. The Market gained three out of the five trading sessions of the week. 

The All Share index gained 0.09 to close the week at 36,636.97. This brought the year to date return of the ASI to (4.20) still on the negative side of the number line.

EQUITY

A total turnover of 1.417 billion shares worth N16.739 billion in 19,832 deals were traded this week by investors on the floor of the Exchange in contrast to a total of 1.665 billion shares valued at N14.834 billion that exchanged hands last week in 18,795 deals.

ETPs
Also traded during the week were a total of 344 units of Exchange Traded Products (ETPs) valued at N50,021.24 executed in 5 deals, compared with a total of 340 units valued at N33,660.20 that was transacted last week in 6 deals.


BONDS
A total of 7,518 units of Federal Government Bond valued at N7.668 million were traded this week in 9 deals compared with a total of 17,251 units valued at N17.943 million transacted last week in 18 deals.


Below is the summary of the Market performance: Week on Week and Year to Date

The NSE All-Share Index and Market Capitalization appreciated by 0.09% to close the week at 36,636.97 and N13.272 trillion respectively. Similarly, all other indices finished higher with the exception of the NSE Premium, NSE Consumer Goods, NSE Oil/Gas, NSE Industrial Goods, NSE Pension Indices that depreciated by 0.16%, 0.19%, 3.74%, 4.40% and 0.56%.

Thirty-one (31) equities appreciated in price during the week, higher than sixteen (16) in the previous week. Forty-eight (48) equities depreciated in price, lower than fifty-nine (59) equities of the previous week, while ninety (90) equities remained unchanged lower than ninety-four (94) equities recorded in the preceding week.


GAINERS

Stock	Year to Date Return		Stock	Week on Week Return
CCNN	230.00%		CUTIX	46.00%
CUTIX	117.91%		CCNN	25.90%
CILEASING	89.92%		CONTINSURE	12.67%
IKEJA HOTEL	75.84%		FBNH	10.50%
NEM	74.70%		CAVERTON	10.00%
FIDSON	66.22%		VITAFOAM	9.85%
UNITYBNK	62.26%		CAPOIL	8.70%
CAVERTON	62.02%		SKYEBANK	7.69%
BETAGLAS	52.02%		DIAMONDBNK	7.69%
ETERNA	45.32%		STERLNBANK	6.62%

LOSERS

Stock	Year to Date Return		Stock	Week on Week Return
AFRINSURE	-60.00%		RAK UNITY	-20.00%
COURTVILLE	-60.00%		UAC-PROP	-18.85%
EQUITYASUR	-60.00%		ROYALEX	-16.67%
FTNCOCOA	-60.00%		SECURE ELECTRONIC	-16.67%
MULTIVERSE	-60.00%		WAPCO	-15.38%
UNIC	-60.00%		FO	-13.98%
DUNLOP	-60.00%		NPFMCRFBK	-12.78%
TANTALIZER	-58.00%		ABBEYBDS	-10.00%
UNIONDAC	-56.00%		PRESCO	-9.98%
REGALINS	-52.00%		PZ	-9.82%

As expected the half year results continue to hit the Market, providing a rallying point for investors that had had a torrid time in the last three months. We would continue to weigh the alternatives provided by these plethora of results. Considering some of the results that hit the Market this week, we can say that, Caverton remains strong, Nacho resilient, Cap promising, Lasaco hanging in there, Portpaint explosive, Paint and Coating tailgating, Union Diagnostics gathering momentum, Aiico resolute, Mobil intriguing, Jberger scandalous and BOC gases scintillating.  We expect more exciting moment to grace the occasion next week as we cross the deadline mark, however not ruling out disappointing moments as witnessed in the past weeks.

We envisage that the Market may close on high hinged on the results that had hit the Market especially after the close of trading on Friday. Investors and bargain hunters are expected to harp on the momentum created by the frenzy of results which we anticipated would culminate into spontaneous buying and selling that would eventually send the Market up for the first two days of next week to thereafter slowdown due to profit taking.
  Without deviating from our assertion since the beginning of the year that the 2019 election would plaque the second half of the year because of the so many uncertainty surrounding it. The noise of the election and its many protagonists is drowning the noise being created by the encouraging results of the 1st half of 2018 been rendered to the public by quoted companies. Still on our submission last week, that the election is still seven months from now, but the pains of the anticipation of the election is way ahead of the election itself. The reason why the momentum generated towards the end of the week may not be sustained. 

Reiterating our belief in Fundamental Analysis, we see a bright light at the end of the tunnel because in the midst of this hubbub lies uncommon profit for investors that can wait for a minimum of 9 months while taking their chances now. As the Market had over reacted to the uncertainty of the election in the process creating status quo bias.

We expect some of the winners this week to suffer the winner's curse as the week  wear out. Custodian declared a 10k interim dividend to set the tone for interim payment of which we still expect most of the results especially from SUGAZ which we expect will still need clearance from the CBN. 

In the course of the week the National Insurance Commission raised the minimum capital base for composite insurance companies (life and non-life underwriters) that want to get licences to underwrite all risks in the country from N5bn to N15bn.

NAICOM also raised the minimum capital requirement of life insurance companies that want to underwrite all forms of life insurance from N2bn to N6bn; while the minimum capital base for non-life insurance companies was raised from N3bn to N9bn.

We expect the above to change the composition of the Insurance Industry. However, we would continue to analyse the recapitalization exercise and its consequences on all the players as we expect it to create a survivorship bias in the industry.