Trading at the Nigerian Stock Exchange last week recorded a bullish performance with mild gains recorded in three of the four trading days. Although activity levels were weak, as volume and value traded plunged by 84.1% and 28.1% w/w, respectively. The All-Share Index, however, remained well above the 34,000 points 34,885.51 points.
Buying interest in AIRTELAFRI (+7.0%), DANGCEM (+6.1%), BUACEMENT (+4.8%), INTBREW (+2.6%), FBNH (+2.1%), and NESTLE (+1.8%) drove the benchmark index 2.2% higher. The MTD return rose to 14.3% while the YTD return for index improved to 30.0%.
Performance across sectors was broadly positive – except for the Banking Sector (-1.3%) and Consumer Goods (-0.5%) indices –with the Industrial (+4.4%), Oil and Gas (+0.6%), and Insurance (+0.3%) indices closing in the green.
A total turnover of 1.816 billion shares worth N25.791 billion in 31,665 deals were traded this week by investors on the floor of the Exchange, in contrast to a total of 11.400 billion shares valued at N35.892 billion that exchanged hands last week in 39,265deals. The Financial Services Industry (measured by volume) led the activity chart with 1.274 billion shares valued at N14.710 billion traded in 18,392 deals; thus contributing 70.15% and 57.04% to the total equity turnover volume and value respectively. The Conglomerates Industry followed with 217.170 million shares worth N231.809 million in 1,226 deals.
The third place was the Consumer Goods Industry, with a turnover of 113.760 million shares worth N2.598 billion in 4,568 deals. Trading in the top three equities namely Zenith Bank Plc, Transnational Corporation of Nigeria Plc and Access Bank Plc (measured by volume) accounted for 649.529 million shares worth N8.104 billion in 6,395 deals, contributing 35.76% and 31.42% to the total equity turnover volume and value respectively.
NSE launches ‘growth board’ with four companies
Meanwhile, the Nigerian Stock Exchange will today formally activate its new listing platform known as ‘growth board’ with the migration of four eligible companies to the new board. The four eligible companies that will be pioneers on the new board include of Chellarams Plc , LivingTrust Mortgage Bank Plc, McNichols Plc and The Initiates Plc.
The new listing window allows small and medium companies with track records of stable operations, growth and minimum corporate governance to list their shares and raise capital through the Nigerian capital market. The new board is also expected to support the small and medium enterprises (SMEs) with direct access to capital and support services from the capital market.
Nigeria Bureau of Statistics (NBS) indicates that SMEs account for nearly half of Gross Domestic Product (GDP) and more than three-quarters of employment. Besides reduction in costs of listing and compliance requirements, the NSE, in collaboration with various strategic business partners and value-added service providers, will provide support services aimed at creating competitive edge for companies on the board.
These support services include pre-listing diagnostics; institutional services such as audit services, financial advisory, legal advisory, corporate strategic advisory; investor relations; analyst coverage, corporate access and corporate governance and customized trainings.