Ngozi Amuche
Capital market operators and other financial analysts on Friday have advised investors to consider the shares of United Bank for Africa Plc, Zenith Bank Plc and Custodian Investment Plc, for the weeks ahead.
Analysis of the weekly economic report from the Nigerian Stock Exchange showed that the stocks of these firms accounted for a total of 404.171million shares worth N3.847billion in 3,910 deals, contributing to 32.97percent and 35.48percent to the total equity turnover volume and value, respectively.
Reacting to the development, a stockbroker, Mr. Adegoke Ademola said, such equities are usually investors delight, as it appears to parade the most traded stock in volume and in value over the years.
He said every investor would prefer to invest in companies’ impressive financial metrics, noting that it is important to have a grasp of such dividend paying shares, which have potential returns on investment.
A financial analyst, Mr. David Ogene, said, “I see local equities bouncing back into the green territory, if a market friendly policy eventually emerges from the Federal Government.”
He explained that Nigeria is faced with diverse economic challenges, which cannot be ruled out in the performance of the capital market.
“Micro-economic challenges remain the militating factors that are confronting the stock market,” he said.
Meanwhile, a total turnover of 1.226billion shares worth N10.842 billion in 19,529 deals were traded last week by investors on the floor of the Exchange, in contrast to a total of 2.209 billion shares valued at N10.957 billion that exchanged hands the previous week in 18,013 deals.
The financial services industry led the activity chart with 980.482 million shares valued at N6.987 billion, traded in 11,634 deals; thus contributing 79.99percent and 64.44percent to the total equity turnover volume and value.
The Conglomerate industry followed with 59.758 million shares worth N72.458 million in 550 deals. The third place was the Consumer Goods industry with a turnover of 58.869 million shares worth N1.349 billion in 2,862 deals.
The NSE All-Share Index and Market Capitalisation depreciated by 0.05percent to close the week at 25,591.95 and N13.351 trillion, respectively.
Twenty-three equities appreciated in price during the week, lower than Forty-one equities in the previous week, while thirty-eight equities depreciated in price, higher than nineteen equities in the previous week.