NSE LIVE! Equities lose N1.13tr in 7 months

An average investor in the Nigerian stock market has lost about 13 per cent of his portfolio so far this year as a largely negative market situation has shaved off more than N1 trillion in total market value of quoted companies on the Nigerian Stock Exchange (NSE).

Key benchmark indices at the NSE closed at the weekend in negative with various periodic analyses underlining the rampant selling pressure that has pervaded the market so far this year. Week-on-week, month-on-month, quarter-on-quarter and year-to-date analyses showed a generally negative market.

The All Share Index (ASI), the common value-based index that tracks prices of all quoted companies on the NSE, which also serves as Nigeria’s sovereign equity index, closed July at 30,180.27 points as against 34,657.15 points recorded at the beginning of this year, representing a decline of 4,476.88 basis points or 12.92 per cent. Aggregate market value of all quoted companies also followed the same downtrend; dropping from its year’s opening value of N11.478 trillion to close at the weekend at N10.344 trillion, indicating capital gain loss of N1.13 trillion.

The third quarter has so far been dominated by widespread selling sentiments as investors remained cautious of the overall macroeconomic position and policy direction of the new government of President Muhammadu Buhari. In July, the ASI declined by 9.79 per cent. It ended the month with sustained depreciation, dropping by 2.93 per cent in the last week.

All other sectoral indices showed the underlying bearishness across the sectors, although the actual losses by stocks differed according to their resistance level and earnings cycles.  Year-to-date analysis indicated that most investors, irrespective of sectoral composition of their portfolios, might have lost rather than gained so far this year, with the exception of the industrial goods sector.

The NSE Banking Index, Nigeria’s most active sector, has declined by 10.16 per cent. The NSE Insurance Index carried a negative seven-month return of -10.09 per cent. The NSE Oil and Gas Index has lost 10.74 per cent. The NSE 30 Index, which tracks the 30 largest stocks, mirrored the main benchmark with a drop of 12.95 per cent. The NSE Consumer Goods Index recorded the highest group loss of 18.75 per cent. The NSE Pension Index, which tracks 40 stocks adjudged good for pension portfolios, indicated average loss of 7.51 per cent while the NSE Lotus Islamic Index, which tracks Shari’ah-compliant stocks, dropped by 5.29 per cent. However, the NSE Industrial Goods Index showed considerable resistance with average year-to-date positive return of 3.92 per cent.

Last week, 16 equities appreciated while 55 stocks depreciated. A total of 119 equities remained unchanged.

The slowdown also reflected in momentum of activity with turnover dropping to 1.37 billion shares worth N17.95 billion in 17,391 deals as against a total of 1.73 billion shares valued at N23.39 billion traded in 15,043 deals in the previous week. The bank-dominated financial services sector remained the most active with a turnover of 837.735 million shares valued at N7.369 billion in 9,923 deals; representing 61.32% and 41.04% of the total equity turnover volume and value respectively. The oil & gas sector followed with a turnover of 200.367 million shares worth N3.367 billion in 1,444 deals. The third place was occupied by information and communication technology with 115.888 million shares worth N59.517 million in 133 deals.

The trio of Access Bank Plc, Oando Plc, and Zenith International Bank Plc, were the most active stocks, jointly accounting for 541.496 million shares worth N6.477 billion in 3,498 deals, contributing 39.63% and 36.08% to the total equity turnover volume and value respectively.

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