Market returns 2.63% WtD as investors take position ahead of FY’20 earnings season

The Nigerian Bourse last week closed on a bullish note as the NSE All-Share Index and Market Capitalisation appreciated by 2.63% to close the week at 41,176.14 and N21.530 trillion respectively.

Listed companies have started announcing their closed periods for full year 2020 financial report. At that, investors have been taking position for high dividend yield stocks which can be linked to the current positive market vibration.

An aggregate of total of 3.447 billion shares worth N32.725 billion in 30,327 deals were traded last week by investors on the floor of the Exchange, in contrast to a total of 3.394 billion shares valued at N19.867 billion that exchanged hands the previous week in 26,808 deals.

The Financial Services Industry led the activity chart with 1.714 billion shares valued at N13.352 billion traded in 15,102 deals; thus contributing 49.74% and 40.80% to the total equity turnover volume and value respectively. The Construction/Real Estate Industry followed with 768.131 million shares worth N4.203 billion in 430 deals. The third place was Conglomerates Industry, with a turnover of 279.799 million shares worth N578.694 million in 1,199 deals.

Trading in the top three equities namely UPDC Real Estate Investment Trust, Mutual Benefits Assurance Plc and Transnational Corporation of Nigeria Plc accounted for 1.224 billion shares worth N4.459 billion in 929 deals, contributing 35.52% and 13.63% to the total equity turnover volume and value respectively.

All other indices finished higher with the exception of NSE Growth which depreciated by 3.32% while the NSE ASeM Index closed flat.

Sixty (60) equities appreciated in price during the week, higher than fifty (50) equities in the previous week. Nineteen (19) equities depreciated in price, lower than twenty- one (21) equities in the previous week, while eighty-two (82) equities remained unchanged, lower than ninety (90) recorded in the previous week.

Stocks to Watch

  • Access Bank grew to N9.70 from N9.50. It is currently trading 19.17% away from its 52 weeks high of N12. At that, there is uptrend potential in the share price of Access Bank. With the book value of N19.12, Access Bank is considered cheap at the current share price of N9.70.
  • FBN Holdings grew to N7.60 from N7.50. It is trading 15.56% away from its 52 weeks high of N9 which implies an uptrend potential for the share price of the big elephant. Considering its book value of N19.84, relative to the current share price of N7.60, it is obvious that FBNH is underpriced and has a lot of growth potential embedded in it.
  • Zenith Bank dropped to N26.30 from N26.40. It is trading 7.72% away from its 52 weeks high of N28.5. With the book value of N32.94, relative to the current share price of N26.30, Zenith Bank has a lot of uptrend potential.
  • WAPCO grew to N23.80 from N23.50. It is trading 8.46% away from its 52 weeks high of N26. There is an uptrend potential for the share price of Wapco.
  • UBA grew to N9.25 from N9.05. It is trading 5.61% away from its 52 weeks high of N9.8. With the book value of N19.16 as against its current share price of N9.25, UBA is considered cheap and has uptrend potential.
  • Guaranty Trust Bank grew to N33.05 from N33. It is trading 14.04% away from its 52 weeks high of N38.45, which suggest an uptrend potential for the share price of Guaranty Trust Bank.

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