NSE LIVE! Equities lose N253b in weeklong depression

In from Success Allantee …

Nigerian equities suffered a major reversal last week as intense selling pressure and low demand shaved off N253 billion from market values of quoted companies. A week after leading the global stock market, Nigerian market last week underperformed several advanced and emerging stock markets, although it remained better than the German, French and Egyptian markets.
All indices, except one, at the Nigerian Stock Exchange (NSE) ended in the negative as the market reeled from consecutive losses throughout the week. The level of activities at the NSE also dropped considerably with 43.03 per cent and 34.3 per cent declines in volume and value of activities respectively.
The All Share Index (ASI), the common value-based index that tracks all equities on the NSE and also doubles as Nigeria’s sovereign stock market index, recorded a week-on-week decline of 2.34 per cent to close at 30,752.63 points as against its week’s opening index of 31,441.71 points. Aggregate market value of all quoted equities also dropped from its week’s opening value of N10.777 trillion to close weekend at N10.524 trillion, representing a loss of N253 billion.
The sustained depression last week built up investors’ losses with average year-to-date return currently at -11.40 per cent. This implies that an average investor in the Nigerian stock market has lost more than 11 per cent of his portfolio so far this year. Many sectoral indices showed that several investors are currently running with larger losses. The NSE 30 Index indicated that investors with high exposures to the 30 most capitalised stocks on the stock market have so far this year lost at least 11.57 per cent while the NSE Banking Index put average investors’ losses in the banking sector at 12.11 per cent. The consumer goods sector is leading the losing pack with average year-to-date return of -16.36 per cent. In the largely dormant insurance sector, average year-to-date return is -6.60 per cent while the NSE Oil and Gas Index showed a negative return of -9.57 per cent for the sector. The industrial goods sector, where cement and paints manufacturers are listed, is the only exception among tracked indices with a positive return of 7.08 per cent.
The performance of the Nigerian stock market last week underscored the uncertainties that continued to shape the investment horizon with most investors waiting on the sidelines to see the clear direction of the new government.
Analysts were divided on the immediate direction of the market but most were certain that the market has considerable medium to long-term potential for above average returns.
Analysts at SCM Capital said the market might witness a slight turnaround in the new week as investors seize the opportunity of current low prices to position ahead.
“The equities market continues to thrive on speculation given the absence of major trigger in the market as investors are advised to consider taking medium to long term perspective in investment decisions,” Afrinvest Securities stated in a preview.
Total turnover at the NSE last week stood at 1.36 billion shares worth N12.5 billion in 17,867 deals as against a total of 2.38 billion shares valued at N18.99 billion that were traded in 19,769 deals in the previous week. The financial services sector continued to drive the market accounting for more than 84 per cent and 59 per cent of turnover volume and value last week. Financial services stocks accounted for 1.14 billion shares valued at N7.36 billion in 10,830 deals. The conglomerates sector followed with a turnover of 53.78 million shares worth N218.68 million in 873 deals. The third place was occupied by the consumer goods sector, which traded 42.58 million shares worth N2.39 billion in 2,586 deals.
The trio of Standard Alliance Insurance Plc, Access Bank Plc and Zenith International Bank Plc accounted for 566.66 million shares worth N3.39 billion in 2,767 deals, representing 41.8 per cent and 27.2 per cent to the total equity turnover volume and value respectively.
Also traded during the week were a total of 55,201 units of Exchange Traded Products (ETPs) valued at N2.905 million in 30 deals compared with a total of 6,639 units valued at N999,551 traded in 22 deals in the previous week. On the Federal Government bonds market, a total of 11,000 units valued at N12.346 million were traded in four deals as against a total of 14,473 units valued at N15.576 million traded in six deals two weeks ago.
Share price movement analysis showed widespread downtrend across the sectors. There were 16 gainers against 58 losers last week. A total of 116 equities closed flat. United Bank for Africa (UBA) Plc recorded the highest loss, in percentage terms, with a drop of 18.55 per cent to close at N3.38 per share. Eterna followed with a drop of 14.10 per cent to close at N2.01. Unity Bank dropped by 13.66 per cent to close at N1.77. Red Star Express dropped by 13.04 per cent to N4. Fidelity Bank lost 12.99 per cent to close at N1.34. Vono Product declined by 12.39 per cent to close at 99 kobo while NPF Microfinance Bank and Skye Bank dropped by 10 per cent each to close at 90 kobo and N1.89 respectively.
On the positive side, Evans Medical topped the weekly gainers’ list with a gain of 22.67 per cent to close at 92 kobo. Portland Paints and Products Nigeria rose by 9.81 per cent to close at N4.14. CAP added 8.83 per cent to close at N41.30. Unilever Nigeria rose by 8.44 per cent to close at N41 while Honeywell Flour Mills rose by 7.09 per cent to close at N2.87 per share.

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The continental marketplace showed mixed performance. The Kenyan stock market recorded average gain of 1.8 per cent. The South African market declined by 1.9 per cent while the Egyptian and Ghanaian markets dropped by 2.9 per cent and 0.7 per cent respectively.
In the emerging markets, The Brazil IBOVESPA showed a week-o-n-week decline of 1.8 per cent. Russia’s benchmark index indicated a decline of 1.1 per cent while India’s BSE Index dropped by 0.6 per cent. However, China’s Shanghai Composite Index rallied a gain of 5.9 per cent as the People’s Bank of China (PBOC) devalued the Yuan during the week by 1.9 per cent in a deliberate major move to kick-start the weakened national economic growth.
In the advanced markets of America and Europe, the markets remained largely negative. Performance in the United States’ markets was mixed as the S & P 500 Index appreciated by 0.4 per cent while NASDAQ Index dropped by 0.3 per cent. In London, the UK FTSE declined by 2.0 per cent. The German DAX depreciated by 4.3 per cent while France CAC dropped by 3.8 per cent.

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