Markets

52 weeks of robust stock trading

by Iheanyi Nwachukwu

November 2, 2017 | 2:08 am
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In the third-quarter (Q3) to September 30, 2017, the Nigerian Stock Exchange (NSE) achieved about 130.33percent increase in average daily value of stocks traded on its platform.

The NSE Q3 fact sheet shows the value at N5.72billion ($18.71) million compared to N2.48billion in the corresponding period of 2016. In the 52-week period to September 2017, the average daily transactions at 3,999 rose by 13.43percent against 3,525 in Q3’16.

Gains in the equity market saw the NSE All Share Index (ASI) reach a three-year high, while the total market capitalisation climbed to N19.62 trillion ($64.16 billion), representing an 18.73percent increase from N16.52 trillion ($54.04 billion) in Q3 2016.

In the review period of Q3’17, the number of listed securities stood at 259 against 249 in Q3’16. The number of listed equities as at the review period increased to 171; number of listed bonds (79); and number of listed Exchanged Traded Fund (ETFs) stood at 9. This is compared to Q3’16 when the number of listed equities stood at 180, number of listed bonds at 62, and number of listed ETFs at 7.

NSE services the largest economy in Africa and is championing the development of Africa’s financial markets.  Sustained macro stability supported the NSE to record another consecutive quarter of growth in Q3 2017. 

The NSE has 12 indices that track market and sector performance; they consist of the NSE All Share Index (ASI) , the NSE 30 Index, the NSE Pension Index, the NSE Banking Index, the NSE Consumer Goods Index, the NSE Industrial Index, the NSE Insurance Index, the NSE Oil and Gas Index, the NSE Lotus Islamic Index, the NSE Premium Board Index, the NSE Main Board Index and the NSE ASeM Index. The main index is the NSE 30 Index.

The performance by sector and capitalisation in the 52-week period shows: Agriculture at N123.43billion or $403.69million, up by 55.10percent; conglomerates at N90.32billion or $295.41million, an increase of 0.79percent; construction and real estate at N86.67billion or $283.47million, a decrease of 14.21percent; and consumer good at N3.23trillion or $10.58billion, up by 21.39percent.

Other sectoral performances show the value of financial services at N3.94trillion or $12.88billion, an increase of about 60.57percent; healthcare at N40.33billion or $131.91million, an increase of 20.62percent; while ICT sector declined by 25.67percent to N34.26billion or $112.06million.

Industrial good sector grew by 14.11percent to N3.98 trillion or $13.02 billion; natural resources rose to N5.94billion or $19.42million, up by 0.01percent; Oil and Gas lost 17.74percent of its value in the 52-week period. The sector’s value stood at N569.90billion or $1.86billion; while services sector grew to N125.13billion or $409.25million, up by 41.51percent.

The average daily volume of securities traded also increased by 6.42percent from the previous year, alongside the equity turnover velocity which rose by 5.57percentage points to 11.79percent, from 6.21percent in Q3 2016.

At the end of the quarter, the average PE ratio of the Exchange’s listed equities stood at 19.06 compared to 30.87 in the previous year. The NSE ASI closed the quarter at 35,439.98, to deliver a one-year return of 25.07percent, and the dividend yield for the 52-week period ending September 30, 2017 was 5.37percent.

Iheanyi Nwachukwu

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by Iheanyi Nwachukwu

November 2, 2017 | 2:08 am
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