Capital market operators foresee robust NSE, positive 2017 earnings

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Trading floor of the Nigerian Stock Exchange.

Some capital market operators on Monday expressed optimism that the 2017 earnings anticipated by investors this week would boost activities on the Nigerian Stock Exchange (NSE). They told reporters in Lagos that the market would close upbeat as more companies would declare positive results.

Malam Garba Kurfi, the Managing Director, APT Securities and Funds Ltd, Lagos said that the anticipated results to be released this week would attract more foreign investors to the exchange.

Kurfi said that the nation’s positive economy indices and more foreign and institutional investors would boost the exchange liquidity and investors’ confidence.

He, however, said that the delay in the passage and implementation of the 2018 Appropriation Bill was not good for the capital market and the economy in general.
Kurfi called on the National Assembly and the Executive to settle the budget impasse in the interest of the economy.

Mr Ambrose Omordion, the Chief Operating Officer, InvestData Ltd. said that traders and investors would take positions in dividend-paying stocks.

Omordion said that the market volatility and repositioning would continue, adding that profit-taking would reduce on the strength of expected pay-outs and earnings by blue chips.

He urged investors not to panic but sought for equities with intrinsic value and higher dividend anticipation.

A total turnover of 2.17 billion shares worth N39.09 billion were traded by investors in 24,657 deals last week. This is against the 2.02 billion valued at N21.74 billion transacted in 25,496 deals the preceding week.

The Financial Services Industry was the most active when measured in volume terms with a turnover of 1.53 billion shares valued at N17.67 billion traded in 15,208 deals.
The sector contributed 70.69 percent and 45.21 percent to the total equity turnover volume and value respectively.

The Industrial Goods Industry followed with 200.41 million shares worth N6.44 billion in 1,097 deals.

The third place was occupied by conglomerate industry with a turnover of 188.09 million shares worth N48.45 million in 998 deals.

The NSE All-Share Index during the period rose by 305.34 points or 0.72 percent to close at 42,876.23 against the 42,570.89 in the preceding week.

Similarly, the market capitalization, which opened at N15.277 trillion, rose by N126 billion or 0.82 percent to close at N15.403 trillion.

The market capitalization, which opened at N15.277 trillion, gained N126 billion or 0.82 percent to close at N15.403 trillion.

Japaul and Maritime Services led the gainers’ table for the week in percentage terms by 50 percent or 21k to close at 65k per share.

It was followed by Unity Bank which gained 18.79 percent or 28k to close at N1.77 per share.

NEM Insurance appreciated by 18.42 percent or 35k to close at N2.25 per share.

On the other hand, Sovereign Trust Insurance topped the losers’ chart in percentage terms by 20.83 percent or 10k to close at 38k per share.

Unic Diversified Holdings trailed with a loss of 18.52 percent or 5k to close at 22k, while Mutiverse was down by 17.65 percent or 6k to close at 28k per share.

Amaka E. Nliam