Nigerian equities were gripped by major sell pressure for the most part of the immediate past week as a scramble to monetise accrued capital gains and lock in profit overwhelmed the market situation, forcing the market to its major decline so far this month.
With nearly three decliners to every advancer, the overall market situation at the Nigerian stock market during the week was driven largely by profit-taking sentiment. The market witnessed successive decline for the first three trading sessions of the week, but recovered successively in the last two trading sessions.
With market-wide depreciation in share prices, Nigerian equities closed weekend with a loss of N440 billion, equivalent to a week-on-week decline of 3.35 per cent.
All main and sectoral indices at the Nigerian Stock Exchange (NSE) closed negative at the weekend. The All Share Index (ASI)-the main index for the Nigerian equities market, declined by 3.35 per cent to close the week at 36,920.56 points as against its week’s opening index of 38,198.60 points. Aggregate market value of all quoted equities dropped from the week’s opening value of N13.166 trillion to close weekend at N12.726 trillion. With this, the average year-to-date return for Nigerian equities now stands at 37.38 per cent.
All sectoral indices tracking the most influential sectors at the Exchange also trended downward, reflecting the widespread selling sentiment that marked pricing during the week. The NSE 30 Index-which tracks the 30 most capitalised stocks at the stock market, declined by 2.94 per cent. The NSE Industrial Goods Index-which includes market’s most capitalised stock-Dangote Cement, was the worst-performing index for the week with a drop of 6.02 per cent.
The NSE Oil and Gas Index dropped by 2.31 per cent, putting investors in oil and gas stocks in the negative with average year-to-date return of -1.0 per cent. The NSE Banking Index declined by 0.45 per cent. The NSE Insurance Index slipped by 1.01 per cent while the NSE Consumer Goods Index dipped by 2.76 per cent.
There were 51 decliners against 19 advancers during the week compared with 32 advancers and 37 decliners recorded in the previous week. The larger segment of the equities market remained dormant with 101 and 102 unchanged stocks in the past two weeks.
Cement Company of Northern Nigeria (CCNN) led the losers with a drop of 13.9 per cent to close at N9.22. NEM Insurance followed with a drop of 12.7 per cent to close at 96 kobo. Jaiz Bank dropped by 9.5 per cent to 76 kobo. Total Nigeria lost 8.4 per cent to close at N228.11. Morison Industries declined by 8.2 per cent to 90 kobo while Nigerian Aviation Handling Company (Nahco) declined by 8.2 per cent to close at N3.27 per share.
On the upside, Fidson Healthcare led the contrarian stocks with a gain of 9.7 per cent to close at N3.28. Continental Reinsurance appreciated by 6.6 per cent to close at N1.30. University Press rose by 6.3 per cent to close at N2.85. Berger Paints chalked up 5.0 per cent to close at N7.14. GlaxoSmithKline Consumer also rose by 5.0 per cent to N21 while Golden Guinea Breweries appreciated by 4.7 per cent to close at 89 kobo per share.
There was also a slowdown in the momentum of activities. Total turnover stood at 1.394 billion shares worth N25.037 billion in 23,133 deals during the week compared with a total of 1.518 billion shares valued at N28.868 billion traded in 23,053 deals in the previous week.
The financial services sector remained the most active with 1.185 billion shares valued at N15.073 billion traded in 13,728 deals; thus contributing 84.99 per cent and 60.20 per cent to the total equity turnover volume and value respectively. The consumer goods sector occupied a distant second with 90.576 million shares worth N7.384 billion in 4,687 deals while the conglomerates sector ranked third with a turnover of 40.906 million shares worth N87.613 million in 796 deals.
Banking stocks, the traditionally leading stocks in terms of activities, were also the most active. The trio of Access Bank, Zenith International Bank and Guaranty Trust Bank were the most active and accounted for 655.596 million shares worth N12.182 billion in 4,881 deals, contributing 47.02 per cent and 48.65 per centto the total equity turnover volume and value respectively.
Also traded during the week were a total of 5,168 units of Exchange Traded Products (ETPs) valued at N65,570 in eight deals compared with a total of 2,461 units valued at N296,838 traded in nine deals in the previous week.
In the sovereign debt segment, a total of 987 units of Federal Government bonds valued at N986,952 were traded in one deal compared with a total of 9,615 units valued at N8.30 million traded in 21 deals in the previous week.
Most analysts were cautiously optimistic that the recovery that started late last week might extend to the new week, given the positive outlook for the macro economy and reduced political risks.
“This week, we expect a mix of profit taking and bargain hunting activities amid sustained improvement in the external sector,” Cowry Asset Management stated.
RipplesNigeria… without borders, without fears
Join the conversation
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.
SPECIAL REPORT: Shell’s inaccurate data raises questions around efforts to control methane emissions in Nigeria
Much worse for the environment than carbon dioxide, despite global efforts to control methane, emissions continue soaring. With over a...
FEATURE…Missing Rig Workers: Tragedy, Injustice and the Depthwize cabal
The serene landscape of Ovhor in Delta State bore witness to a disaster that shook the nation’s conscience. The capsize...
FEATURE… In the shadow of kidnappers: The story of Nigeria’s albatross
For decades, Nigeria has been grappling with a problem that has threatened the safety and stability of its people: kidnapping....
FEATURE: The falling standard of education in Nigeria today: Whose Fault?
Over the years, education has proven to be the fulcrum facilitating national development in any state. Through education, knowledge is...
INVESTIGATION: Failed multi-million naira constituency water projects litter Sokoto communities
Many rural communities in Sokoto State are at the risk of an outbreak of diarrhea and other diseases due to...