Financial experts tie stock market performance to September inflation data

Some financial experts on Monday said that the Nigerian Stock Exchange(NSE) performance this week would be determined by third quarter results and September inflation report anticipation.

They told our reporter in Lagos that the stock market performance would sustain positive trend if third quarter earnings anticipated in the market improved.

Dr Uche Uwaleke, the Head of Banking and Finance Department, Nasarawa State University Keffi, said the results of quoted companies expected to be released this week would shape market performance.

“I think this week performance will be influenced by the third quarter results of quoted companies as well as the inflation report by the National Bureau of statistics expected to be released this week,’’ Uwaleke said.

Uwaleke expressed optimism that the stock market would likely end for the month on a positive note going by previous years trends.

Uwaleke said that stock prices usually begin to go down late November when investors sell to raise money for the Christmas season.

Mr Ambrose Omordion, the Chief Operating Officer, InvestData Ltd said that market volatility would likely persist due to positioning, profit taking and more earnings report expected in the market.

Omordion said that third quarter earnings and third quarter Gross Domestic Product figure would trigger more speculative activities in the market in the midst of year-end.

It was reported that Total turnover of 1.56 billion shares worth N13.50 billion were exchanged by investors in 18,409 deals last week as against 1.49 billion shares valued at N15.11 billion in 14,549 deals in the preceding week.

The Financial Services Industry led the week’s activity chart in terms of volume with 1.37 billion shares worth N6.51 billion traded in 10,880 deals.

The sector contributed 87.76 per cent and 48.19 per cent to the total equity turnover volume and value respectively.

The Consumer Goods sector followed with 70.49 million shares valued at N5.64 billion transacted in 3,398 deals.

The third place was occupied by Conglomerates Industry with a turnover of 58.78 million shares worth N141.93 million in 706 deals.

The NSE All-Share Index during the period under review rose by 527.24 points or 1.45 per cent to close at 36,848.17 compared to 36,320.93 achieved in the corresponding week.

Also, the market capitalisation which opened at N12.502 trillion inched N182 billion, appreciated to close at N12.684 trillion.

Axa Mansard Insurance led the gainers’ table in percentage terms, appreciating 25.50 per cent or 51k to close at N2.51 per share.

Cement Company of Northern Nigeria followed with a gain of 20.10 per cent or N1.62 to close at N9.68 per share.

Linkage Assurance increased by 17.33 per cent or 13k to close at 88k per share.

On the other hand, University Press recorded the highest loss in percentage terms for the week, dropping by 13.62 per cent or 35k to close at N2.22 per share.

A. G. Leventis trailed with a loss of 11.29 per cent or 7k to close at 55k, while Law Union and Rock Insurance declined by 8.99 per cent or 8k to close at 81k per share.