OMO restriction: NSE extends weekly gain by 2.04%



As the effects of CBN’s recent policies Open Market Operations (OMO) continue to spur capital market activities, investors’ positive sentiment in the equities market this week drove the domestic bourse to its largest weekly gain since the week of the August 23, 2019.


The NSE All-Share Index and Market Capitalisation both appreciated by 2.04 per cent to close last week at 26,851.68 and N13.071 trillion respectively.


Similarly, all other indices finished higher with the exception of NSE Insurance and NSE Oil/Gas indices which declined by 0.56 per cent and 1.76 per cent respectively, while the NSE ASeM index closed flat.


The market opened for four trading days last week as the Federal Government of Nigeria declared Monday November 11, 2019 a public holiday to mark the Eid-Ul-Maulud celebrations.


According to analysts at Cordros Capital, “in our view, the performance this week is a reaction to a limited outlet for investments given recent policy directives limiting domestic participation in the market. We expect that the market might continue to benefit over the short-term especially in the face of lower yields in the fixed income market.”


A total turnover of 2.084 billion shares worth N33.867 billion in 21,849 deals were traded last week by investors on the floor of the Exchange in contrast to a total of 2.063 billion shares valued at N18.431 billion that exchanged hands the previous week in 16,778 deals.


The Financial Services industry (measured by volume) led the activity chart with 1.705 billion shares valued at N21.555 billion traded in 15,395 deals; thus contributing 81.84  per cent and 63.65 per cent to the total equity turnover volume and value respectively.


The Consumer Goods industry followed with 188.870 million shares worth N7.445 billion in 1,989 deals. The third place was Conglomerate industry with a turnover of 82.675 million shares worth N128.662 million in 691 deals.


Trading in the top three equities namely, Zenith Bank Plc, Access Bank Plc and United Bank for Africa Plc. (measured by volume) accounted for 1.210 billion shares worth N17.048 billion in 7,031 deals, contributing 58.09 per cent and 50.34 per cent to the total equity turnover volume and value respectively.


Thirty nine equities appreciated in price during the week, higher than 30 equities in the previous week. Eleven equities depreciated in price, lower than 28 equities in the previous week, while 116 equities remained unchanged, higher than 108 equities recorded in the preceding week.


A total of 1,523 units valued at N262,358.33 were traded last week in eight deals, compared with a total of 5,624 units valued at N177, 580.70 transacted the previous  week in five deals.


A total of 31,474 units of Federal Government Bonds valued at N33.486 million were traded last week in 12 deals, compared with a total of 34,163 units valued at N39.269 million transacted the previous week in 15 deals.


Federal Government (FGN) Bonds details on the Nigerian Stock Exchange’s database have been updated to represent the schedule of outstanding FGN Bonds from the Debt Management Office (DMO) as at 25 October 2019.


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