The nation’s stock market gained N156bn in four straight days as banking and industrial goods equities listed on the Nigerian Stock Exchange came under buying pressure last week.
The market recorded one day of losses and four consecutive days of gains boosted by investor interest in bank stocks, which moderated the year-to-date return to -0.01 per cent.
Despite the losses recorded last Monday, driven by a decline in the oil and gas sector, investor interest in bank and industrial goods stocks drove gains in the market in the remaining days as the All Share Index gained 136 basis points week-on-week to settle at 31,426.63bps.
Analysts at Meristem Securities Limited said improved investors’ appetite drove market activities throughout last week as buying pressure largely seen in the banking and insurance sectors offset the losses across other sectors.
The industrial goods sector closed on a positive note, despite losses recorded in the Cement Company of Northern Nigeria Plc and Lafarge Africa Plc.
The oil and gas sector ended the week in negative territory as a result of losses recorded in Seplat Petroleum Development Company Plc and 11 Plc (formerly Mobil Oil Nigeria Plc).
The consumer goods sector recorded moderate losses as PZ Cussons Nigeria Plc, Nigerian Breweries Plc and Unilever Nigeria Plc witnessed share price depreciation.
A total turnover of 1.807 billion shares valued at N17.232bn were traded by investors in 18,332 deals on the floor of the Exchange last week, in contrast to the 1.270 billion shares valued at N13.463bn that exchanged hands in 16,476 deals during the previous week.
The NSE, in its weekly market report, said the financial services industry (measured by volume) led the activity chart with 1.625 billion shares valued at N14.696bn and traded in 11,778 deals, thus contributing 89.93 per cent and 85.28 per cent to the total equity turnover volume and value, respectively.
Analysts at Vetiva Capital Management Limited said the banking sector was boosted by major gains in Access Bank Plc, Guaranty Trust Bank Plc, Zenith Bank Plc and United Bank for Africa Plc.
The conglomerates industry followed with 83.560 million shares worth N138.309m in 951 deals.
The third place was occupied by the consumer goods industry with a turnover of 36.251 million shares worth N1.002bn in 2,224 deals.
Trading in the top three equities ― Diamond Bank Plc, Access Bank and GTB ― when measured by volume, accounted for 871.524 million shares worth N8.488bn in 3,305 deals.
This contributed 48.23 per cent and 49.25 per cent to the total equity turnover volume and value, respectively.
There were 40 gainers and 23 losers last week.
The biggest gainer was Fidelity Bank Plc, which gained 24.38 per cent to close at N2.50 per share.
On the flip side, Resort Savings and Loans Plc emerged the biggest loser, with a loss of 23.08 per cent.
Analysts at Vetiva said, “While the strong gains from this (last) week create a high chance for bargain hunting across select stocks, we believe trading activities will remain tilted towards buying as more investors begin to take positions in beaten-down stocks in anticipation of a dispersion in political clouds post-elections.”