Equity Investors Milk Stock Market Top Performers
Despite a lower close to the week, equity investors made fortune from UACN, NEIMETH, REDSTAREX and Airtel Africa recording share price appreciations. Other supporting gainers include MTN Nigeria, Airtel Africa, Unilever and FBN Holdings stocks.
UACN share price increased by +14.8%, NEIMETH gained +12.5%, and REDSTAREX jumped +12.2% with 11.8% share price appreciation in Airtel Africa. Selling rallies were witnessed as some equity investors take out profits, leading to three days of bearish trading sessions.
Airtel, MTN Nigeria and FBNH stock appreciated over the previous week despite the fact that the equity investors’ pull-out profits, trading activities were largely seen as offensive.
Thus, the stock market reversed its initial trajectory.
Telecom stocks gaining debuts started after payment service licenses was granted, and the news that MTN group plans to shed 14% of its shareholdings to Nigerians via public offer had lifted the Nigerian All-share index higher.
Away from expectation last week, Afrinvest hinted in a market report that the local bourse returned to positive territory on buying interest in MTN Nigeria, Airtel Africa and FBNH.
Data shows that MTNN share price gained +8.8%, AIRTELAF up +11.8% and FBNH price witnessed a +8.1% jump in price in the week, topping the best stock performance on the charts.
Accordingly, the NGX All-Share Index advanced by 2.9% week on week to 43,253.01 points while the market capitalisation rose ₦646.3 billion to settle at ₦22.6 trillion.
Lagos bourse year to date return improved to 7.4% from 4.3% in the prior week, said Afrinvest in the market report. It was also noted that overall market activity strengthened as average volume and value closed 3.0% and 69.3% higher to 294.2 million and ₦4.2 billion respectively.
The top traded stocks by volume were STERLNBANK (181.1m units), UACN (104.8m units), and FBNH (100.9m units), while MTNN (₦3.7bn), ZENITH (₦1.8bn), and FLOURMILL (₦1.6bn) led trades by value.
Afrinvest said the performance was mixed across the sectors within its coverage as 3 indices lost, 2 indices gained, while the Industrial Goods index closed flat.
On the positive side, the AFR-ICT and Consumer Goods indices rose 10.1% and 0.6% week on week respectively due to buying interest in MTNN (+8.8%), AIRTELAF (+11.8%), UNILEVER (+9.4%) and FLOURMILL (+3.5%).
Meanwhile, the Insurance index slid 2.2% following sell-pressure on CUSTODIAN (-9.5%) and REGALINS (-9.1%). The Banking and Oil & Gas indices shed 1.3% and 0.7% respectively due to price depreciation in ZENITH (-2.4%) and CONOIL (-14.9%).
Investor sentiment, as measured by market breadth, strengthened to 0.7x from 0.6x last week as 25 stocks gained while 34 lost. The top outperformers for the week were UACN (+14.8%), NEIMETH (+12.5%), and REDSTARE (+12.2%) while CONOIL (-14.9%), PHARMDEK (-9.8%), and CWG (-9.7%) led the laggards.
Next week, analysts at Afrinvest are expecting the equities market to trade sideways due to the absence of positive triggers.
