NSE LIVE! Equities lose N108b as returns worsen

Average year-to-date return at the Nigerian stock market worsened to -6.11 per cent last week as quoted equities continued their losing spree amidst macroeconomic concerns and uncertainty over government’s cabinet composition and policy direction.

The All Share Index (ASI), the composite value-based index that tracks quoted companies on the Nigerian Stock Exchange (NSE), which opened the week at 32,853.49 points, closed weekend at 32,538.34 points, representing a week-on-week depreciation of 0.96 per cent. Aggregate market value of all quoted equities also dropped from its week’s opening value of N11.215 trillion to close at N11.107 trillion, indicating a loss of N108 billion.

Sustained decline in the first three days of the third quarter overwhelmed the two-day rally that closed the second quarter. This further worsened the negative overall market situation.

The decline was orchestrated both by the preponderance of losers to gainers as well as the large number of highly capitalized stocks among the losers relative to gainers. There were 33 gainers against 36 losers last week with 124 stocks stagnant at their prices.

Level of activities also dropped markedly during the week. Aggregate turnover last week stood at 1.27 billion shares worth N17.57 billion in 18,933 deals as against a total of 1.44 billion shares valued at N26.406 billion traded in 18,110 deals.

The banking subsector-led financial services sector remained the dominant sector at the stock market, accounting for more than three-quarters of turnover last week. Financial services sector led the activity chart with a turnover of 981.65 million shares valued at N8.87 billion traded in 11,303 deals; representing 77.36 per cent and 50.46 per cent of the total equity turnover volume and value respectively. The oil and gas sector followed with a turnover of 121.164 million shares worth N1.989 billion in 1,768 deals while the consumer goods sector placed third with a turnover of 79.97 million shares worth N5.265 billion in 2,914 deals.

Read Also: NSE LIVE! Equities stumble further

The trio of Access Bank Plc, Zenith International Bank Plc and United Bank for Africa Plc were the most active stocks with joint turnover of 523.85 million shares worth N5.55 billion in 3,383 deals, representing 41.3 per cent and 31.6 per cent of the total equity turnover volume and value respectively.

The week also witnessed modest trading in non-equity securities. A total of 9,630 units of Exchange Traded Products (ETPs) valued at N734,568 were traded in 22 deals, higher than a total of 1,945 units valued at N533,746 traded in 23 deals two weeks ago.

Also, a total of 1,692 units of Federal Government Bonds valued at N1.753 million were traded in three deals compared to last week when there was no trade on bonds.

National coordinator, Proactive Shareholders Association of Nigeria (PROSAN), Mr. Oderinde Taiwo said the continuing delay in the announcement of cabinet positions of the new government of President Muhammadu Buhari is adversely affecting the performance of the capital market.

According to him, the continuing delay in the appointment of ministers would continue to affect the capital market as investors need to know the policy direction of the economy.

He said both foreign and local investors will only invest in a market if they know the policy direction.

“You can see that immediately the new president of Nigeria emerged after the 2015 election, the stock market moved up and now the market has been going down because of the uncertainty caused by continued delay in the appointment of ministers and policies pronouncement,” Taiwo said.

Ripples… without borders, without fears

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now