NSE RoundUp! Investors dump oil stocks as equities lose N117bn in August

Oil and gas stocks witnessed a major selloff in August, orchestrating a downtrend that saw Nigerian equities with net capital depreciation of N117 billion during the month.

Month-on-month analysis showed a market dominated by profit-taking transactions in August, but the declines in the oil and gas, industrial goods and insurance sectors. The overall benchmark indices at the Nigerian Stock Exchange (NSE) showed relatively marginal average month-on-month decline of 0.96 per cent, equivalent to net capital loss of N117 billion in August.

However, the NSE Oil and Gas Index showed average decline of 11.37 per cent in the oil and gas sector as investors dumped oil majors amidst fears that divestments and structural deficiencies could hamper future earnings in the sector. The NSE Industrial Goods Index recorded a month-on-month average decline of 4.69 per cent. The NSE Insurance Index also dropped by 2.47 per cent, stretching again the downtrend that had seen most insurers trading at nominal value of 50 kobo.

Aggregate market value of all quoted equities on the NSE closed August at N12,237 trillion as against N12.354 trillion recorded at the beginning of the month, representing a decline of N117 billion. The All Share Index (ASI)-the value based common index that tracks share prices at the Exchange, also indicated a month-on-month average return decline of 0.96 per cent to close the month at 35,504.62 points as against the month’s opening index of 35,844.00 points.

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With a net capital gain of N902 billion in July, the performance in August appeared to be a profit-taking trend.

Further sectoral analysis showed that the NSE Banking Index dropped by 1.27 per cent. However, against the negative overall market performance, investors in the consumer goods sector recorded impressive gains in August with the NSE Consumer Goods Index appreciating by 11.68 per cent during the period. The NSE 30 Index recorded a marginal gain of 0.15 per cent.

Year-to-date analysis showed that the Nigerian equities market closed August with average year-to-date return of 32.11 per cent, as against 33.37 per cent recorded in the previous month of July. With this, investors’ net capital appreciation so far this year dropped to N2.99 trillion as against N3.11 trillion capital gains recorded over the seven-month period ended July. Aggregate market value of all quoted equities and the ASI had opened this year at N9.247 trillion and 26,874.62 points respectively.

Meanwhile, investors traded a total turnover of 998.973 million shares worth N11.455 billion in 13,626 deals last week at the NSE as against a total of 1.538 billion shares valued at N24.218 billion traded in 19,187 deals two weeks ago.

The financial services industry led the activity chart with 838.247 million shares valued at N5.134 billion traded in 7,884 deals; thus contributing 83.91 per cent and 44.82 per cent to the total equity turnover volume and value respectively. The consumer goods industry followed with 45.589 million shares worth N3.225 billion in 2,759 deals while the third place was occupied by the conglomerates industry with a turnover of 35.563 million shares worth N60.673 million in 627 deals.

The three most active stocks were Custodian and Allied Plc, Sovereign Trust Insurance Plc and Fidelity Bank Plc. The three most active stocks accounted for 383.065 million shares worth N829.743 million in 650 deals, contributing 38.34 per cent and 7.24 per cent to the total equity turnover volume and value respectively.

Also traded during the week were a total of 86,063 units of Exchange Traded Products (ETPs) valued at N838,755 executed in deals compared with a total of 390 units valued at N6,512 traded in five deals two weeks ago.

In the sovereign debt segment, a total of 12,244 units of Federal Government bonds valued at N12.374 million were traded last week compared with a total of 3,657 units valued at N2.87 million traded in nine deals in the previous week.

There were 19 gainers against 48 losers last week compared with 32 gainers and 40 losers in the previous week.

11 Plc, formerly known as Mobil Oil Nigeria, recorded the highest loss of 14.25 per cent to close at N165.11. First Aluminium Nigeria dropped by 12.7 per cent to close at 55 kobo. C & I Leasing declined by 9.91 per cent to N1 while Julius Berger Nigeria dropped by 9.72 per cent to close at N32.49 per share.

On the positive side, Cutix rose by 24.4 per cent to close at N2.50. Continental Reinsurance appreciated by 13.95 per cent to close at N1.47 while Total Nigeria rose by 13.01 per cent to close at N245 per share.

 

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