SEPT 26, 2018: SWINGING PENDULUM AT STOCK MARKETS

It was a clear case of swinging pendulum at Nigerian and Nairobi stock markets on Tuesday and Wednesday as indices went up and down in turns.

NIGERIAN STOCK EXCHANGE

At the Nigerian Stock market, hopes were raised on Tuesday as the All share index finally rose even strongly by 2.08% to 33,114.44 but alas it went down again by 0.46% to 32,963.27.

The Tuesday rise came from strong gains by Nestlé Nigeria (up N95 or 6.79% per share) and Dangote Cement ( up N5 or 2.44% per share).

Come Tuesday, the reverse swing occurred as Dangote Cement led price losers as it lost N5 per share gained on Tuesday.

It was easy for Dangote Cement because it found and closed at N205 per share compared to N210 on Tuesday as 47 deals were struck for 0.228m shares worth N46.955m.

This was the lone drop above N1 per share but Total Nigeria also had similar solo run upwards by ending N1.1 per or 0.61% up to pace price gains.

It was equally easy for Total by just finding and closing at N181.1 per share from N180 previously while recording 20 deals involving 0.027m shares worth N5.037m.

Trade too followed the swing as the recovery in traded volume to 222.956m shares in 3327 deals worth N3.283bn on on Tuesday reversed to a drop to 172.196m in 2866 deals valued at N2.052bn.

Top trade on Tuesday was as 43.28m shares in Zenith Bank were exchanged in leading 402 deals worth N923.63m but on Wednesday, the pacesetter was 33.808m shares in Fidelity Bank exchanged in leading 277 deals worth N57.279m.

Guaranty Trust Bank, however led traded value on Wednesday by accounting for N1.023bn from 189 deals for N1.023bn.

NAIROBI SECURITIES EXCHANGE.

At the Nairobi Securities Exchange, the All share index rallied by 1.05 points to 150.10 on Wednesday after going down 0.30 points on Tuesday.

The Tuesday drop was driven by 29 price decreases and only 12 gains recorded  even as Jubilee Holdings led gain with Ksh 7 per share followed by Ksh 5 per share by I&M Holdings.

Safaricom was among the price losers then but it closed firm on Wednesday and so, had no role in the rally recorded. This occurred as 21 price gains and only 10 drops were recorded.

Williamson Tea continued to tumble though down Ksh 3 per share on Tuesday after the previous bear's tea party, then paced decline Wednesday with Ksh 13 per share.

It was a battle though for Williamson as it hit day high of 144, then low of Ksh 142 before closing at Ksh 143 per share compared to Ksh 156 previously.

On the other, I&M holdings found and closed at Ksh 99 per share up Ksh 9 per share to lead price gains followed by BOC Kenya up Ksh 4.50 per share, Jubilee Holdings with Ksh 3 per share top up and Unga Group's Ksh 2.25 per share gain.

The swinging pendulum was also visible in trade. From a major increase in traded volume to 41.899m shares on Monday, Tuesday had dropped to 18.635m shares then by Wednesday it recovered to 23.058m shares.

Traded value grew at a faster rate though on Wednesday closing at Ksg967.133m compared to Ksh 617.787m previously.

The main reason was that some high priced recorded unexpected high volume. Equity Group, though that high priced, paced volume with deals for 8.488m shares worth Ksh 339m.

However, the real value booaters were East African Breweries 1.568m shares exchanged for Ksh 290 m, and rarer 500,000 units sold for Ksh 74m.

Other trades for above 1m shares include KCB Group's 2.354m shares traded for Ksh 96.1m while closing up 1%; Kenya Re's 2.10m shares; Kenya Power and Lighting's 1.714m shares worth Ksh 7.9m.

At the bond market, 41 deals worth Ksh 2.85bn were struck, more than 2ce the Ksh 1.41bn from 37 deals recorded the previous day.

GHANA STOCK EXCHANGE

At the Ghana Stock Exchange, the composite index continued upwards for the 3rd day after last Friday's founders day holiday.

It rose by 43.15 points or 1.49% to 2938.54 on Tuesday in step with Monday rise to 2895.39 and then closed Wednesday at 2954.70.

On Tuesday and Wednesday, MTN Ghana had a hand in the rally by GCI. On Tuesday it recorded the only price gain (up GHs 0.04)  as finally deals were struck at GHs 0.84 per share and retained

On Wednesday it added GHs 0.01 per share as 5500 shares were exchanged at GHs 0.85 per share retaining the gain as well although closing bid was GHs0.84 per share 

MTN is now the top weighted equity in the GCI basket and its lone gain on Tuesday was enough to drive GCI upwards inspire of declines by Enterprise Group, Fan Milk ltd and Republic Bank of Ghana.

On Wednesday, it was given a good helping hand to push the GCI again upwards as Ghana Oil rose by GHs 0.21 per share to close at GHs 2.81 per share after recording deals for 7200 units at GHs 2.80 per share.

There were 3 price drops on Wednesday led by GHs 0.34 per share decline in the share price of Fan Milk as 200 shares were sold at GHs 12.34 per share compared to GHs 12.68 previously.

The other 2 went down by GHs 0.01 per share each. Ghana Commercial Bank recorded deals for 700 units at GHs 5.29 per share down GHs 0.02 on Tuesday's GHs5.31 then closed at GHs 5.30 per share.

On the other hand, 13,500 shares of SIC Insurance were dealt in at GHs0.15 per share compared to GHs 0.16 per share on Tuesday.

Traded volume continued to drop reaching only 30,597 units on Wednesday after Tuesday's also low 48,976 shares.




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