The stock market capitalization hit N16.207 trillion last week following sustained demand for equities.
The unprecedented demand for stocks had lifted the market by N1.93 trillion to close the month of October at N15.958 trillion.
Although some level of profit-taking was recorded, the positive performance was sustained in the first week of November, driving indices to new highs.
Precisely, the Nigerian Stock Exchange (NSE) All-Share Index rose 1.56 percent to close at 31,016.17, while market capitalization added N249 billion to be at N16.207 trillion.
Consequently, the year-to-date (YTD) performance improved to 15.6 percent, with analysts saying there was still scope for expansion going forward.
“As the Q3 earnings season winds down, we expect investors to shift their attention to yet to be published results from the big banks in the week ahead. In the short term, we still see scope for expansion in valuation multiples as the hunt for alpha-yielding opportunities in the face of increasingly negative real returns in the fixed income market remains positive for stocks. “However, we advise investors to take positions in only fundamentally justified stocks as the weak macro environment remains a significant headwind for corporate earnings,” analysts at Cordros Research said.
Also commenting, analysts at Greenwich Research said: “Positive sentiment, boosted by impressive earnings performance continued to spur interest in the equities space, in the face of record-low yields in the fixed income space. Notably, gains recorded at the start and the end of the week pinned the market in the green zone.
“We expect this momentum will be sustained by positive Q3 earnings results, particularly from the banking space.”
In all, investors traded 2.067 billion shares worth N22.636 billion in 25,187deals last week in contrast to a total of 1.909 billion shares valued at N23.610billion that exchanged hands the preceding week.
The Financial Services industry led the activity chart with 1.575 billion shares valued at N13.725 billion traded in 14,521deals. The Consumer Goods Industry followed with 178.574million shares worth N3.609billion in 4,669deals while third place was occupied by the Conglomerate Industry, with a turnover of 102.697million shares worth N155.195 million in 599 deals.
Meanwhile, 40 equities appreciated at price during the week, lower than 68 equities in the previous week, just as 24 equities depreciated in price, higher than six equities in the previous week.
Livestock Feeds Plc led the price gainers with 30.8 percent trailed by Transnational Corporations of Nigeria Plc with 19.7 percent. Dangote Sugar Refinery Plc chalked up 19.5 percent, while CAP Plc added 13.0 percent. LASACO Assurance Plc garnered 12.5 percent, just as Coronation Insurance Plc gained 10 percent.
Other top price gainers included: Portland Paints & Products Nigeria Plc (9.5 percent); Regency Assurance Plc, Dangote Cement Plc (9.1 apiece), and Consolidated Hallmark Insurance Plc (8.8 percent).
Conversely, International Breweries Plc led the price losers with 11.8 percent. AXA Mansard Insurance Plc shed 9.1 percent, while Linkage Assurance Plc shed 8.8 percent.
Custodian Investment Plc went down by 8.2 percent, just as NEM Insurance Plc and BUA Cement Plc 8.1 percent and 5.4 percent respectively.
Other top price losers include Mutual Benefits Assurance Plc (4.7 percent); Julius Berger Nigeria Plc, Union Bank of Nigeria (4.4 percent apiece); and Union Diagnostic & Clinical Services Plc (3.8 percent).
culled from Thisday