Investors lose N624.4bn as equities market records worst trading week in 3 months

In the just concluded week, the sustained sell pressures by foreign portfolio investors in their quest to exit the market for developed economies triggered bearish performance on the floor of the Nigerian Stock Exchange (NSE), causing the local bourse to record its worst trading week in three (3) months.

Recall that the stock market, which opened the week on a bearish note, recorded its biggest daily drop of 346 basis points in eight (8) months on Wednesday, extended the negative performance to Thursday and rebounded on Friday by 0.95 percent to halt its seven-day losing streak.

During the week, 13 equities appreciated in price as against fifty-eight (58) that declined, even as the key performance index of the Nigerian Stock Exchange (NSE), the All-Share Index (ASI), fell by 5.02 percent to close at 32,327.59 points, while year-to-date (YTD) loss worsened to 15.47 percent.

Similarly, the market capitalization of all listed equities stood at N11.80 trillion as investors lost N624.4 billion, the lowest level since July 2017.

However, activity level remained strengthened during the week as the volume and value traded rose by 7.64 percent 40.18 percent to 960.94 million shares worth N18.33 billion in 16,896 deals.

Meanwhile, all sector indices under our coverage were bearish as NSE Banking Index, NSE Insurance Index, NSE Consumer Goods Index, NSE Oil & Gas Index and NSE Industrial Goods Index plunged by 4.35 percent, 5.93 percent, 5.37 percent, 1.67 percent and 7.55 percent, respectively.

Top Traded Equities in the Week (Volume)

In the review week, Guaranty Trust Bank, Access Bank and Zenith Bank were the toast of investors by accounting for 329.99 million shares worth N7.57 billion in 3,871 deals, contributing 34.34 percent and 41.32 percent to the total equity turnover volume and value, respectively.

Guaranty Trust Bank traded 73 million shares and depreciated by 0.71 percent to close at N34.75 per share. Access Bank, which sold and bought a total of 68.6 million shares, also fell by 13.81 percent to close N7.80 per share, while Zenith Bank also declined by 4.07 percent to close at N20.05 per share despite recording transaction volume of 61.1 million shares.

Top Traded Equities in the Week (Value)

Dangote Cement, Guaranty Trust Bank, Nestlé Nigeria emerged the top traded stocks measured in volumes transacting N5 billion, N2.4 billion and N1.6 billion worth of shares, respectively.

Dangote Cement dropped by 5.83 percent to close at N210 per share. Guaranty Trust Bank shed 0.71 percent to close at N34.75 per share, while Nestlé Nigeria plunged by 8.67 percent to close at N1370 per share.

Top Five (5) Price Gainers

The Law Union and Rock Insurance, which opened the week with 54 Kobo, led the gainers’ chart with a gain of 18.52 percent to close at 64 Kobo per share, while its YTD loss stood at 16.88 percent.

Unity Bank trailed with a profit of 17.72 percent to close at 93 Kobo after the stock had opened the week at 79 Kobo per share, its YTD return improved to 75.47 percent.

The third performing stock during the week was Skye Bank which opened the week with 58 Kobo per share but garnered 15.52 percent to close at 67 Kobo per share, pushing its YTD return to 34 percent.

Also, Union Diagnostic and Clinical Services, which opened the market with 27 Kobo, closed with 30 Kobo after recording a price gain of 11.11 percent pushing its YTD loss to 40 percent.

Lastly, Learn Africa rose by 8.91 percent during the week from N1.01 per share to close at N1.10 per share, raising its YTD to 25 percent.

Top Five (5) Price Losers

Conversely, Cement Company of Northern Nigeria (CCNN), which opened at N30.90 per share, led the laggards for the week, after recording a decline of 26.86 percent to close at N22.60 per share, a development that weakened its YTD return to 137.89 percent.

Universal Insurance followed with a price depreciation of 24.24 percent from 33 Kobo to 25 Kobo per share, causing its YTD to worsened to 50 percent.

Forte Oil, which opened with N21 per share, plunged to N17.50 at the end of the week, indicating a price change and a worsened YTD of 16.67 percent and 59.75 percent, respectively.

Likewise, Consolidated Hallmark Insurance recorded 15.79 percent loss, after its price crashed from 38 Kobo to 32 Kobo per share, while its YTD loss stood at 36 percent.

Finally, Linkage Assurance, which opened the week with 70 Kobo, dropped by 15.71 percent to close at 59 Kobo per share, while its YTD loss degenerated to 10.61 percent.

 

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