NSE Roundup! Nigerian equities lose N172b loss amidst global rally
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NSE Roundup! Nigerian equities lose N172bn amidst global rally

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NSE Roundup! Nigerian equities lose N172bn amidst global rally

Nigerian equities set out for the last quarter of this year with strong selling pressure as profit-taking transactions on the September rally shaved off N172 billion from the market values of quoted companies.

Trading at the Nigerian Stock Exchange (NSE) were mostly on the downside as early results and expectations on the third quarter results of quoted companies failed to douse caution and rouse investors’ appetite. Benchmark indices for the Nigerian stock market indicated average week-on-week loss of 1.77 per cent, equivalent to a loss of N172 billion.

The performance of the Nigerian stock market was against the largely positive sentiments in most African markets and other advanced and emerging global markets.

The benchmark index for the Nigerian stock market, the All Share Index (ASI), declined from its week’s opening index of 28,335.40 points to close at 27,835.22 points. Aggregate market value of all quoted companies on the NSE declined from the week’s opening value of N9.733 trillion to close at N9.561 trillion.

There were 22 gainers against 35 losers during the week as against 35 gainers and 32 losers recorded in the previous week. A total of 123 stocks closed flat last week compared with 113 stocks in the previous week. These pushed the average year-to-date return for the Nigerian stock market deeper into losses at -2.82 per cent.

All sectoral and group indices showed widespread selling pressure across the sectors. The NSE 30 Index, which tracks the 30 most capitalised stocks, declined by 2.34 per cent last week. The NSE Banking Index dropped by 2.88 per cent. The NSE Insurance Index slipped by 0.08 per cent. The NSE Consumer Goods Index lost 2.69 per cent. The NSE Oil and Gas Index depreciated by 1.16 per cent. The NSE Industrial Goods Index dropped by 5.32 per cent while the NSE Pension Index, which tracks a basket of equities specially screened in line with pension investment guidelines, dropped by 1.79 per cent.

Cement companies, banks and fast moving consumer goods companies highlighted the decline at the stock market during the week. Lafarge Africa led the losers, in percentage terms, with a loss of 13.87 per cent to close at N47.20. Wema Bank followed with a loss of 12.5 per cent to close at 63 kobo. Caverton Offshore Support Group depreciated by 11.8 per cent to close at 67 kobo. PZ Cussons Nigeria lost 9.95 per cent to close at N18.64. Guinness Nigeria declined by 9.7 per cent to close at N88.45. Ashaka Cement dropped by 7.62 per cent to close at N15.03. Zenith Bank dropped by 6.4 per cent to close at N15.03 while May & Baker Nigeria declined by 6.1 per cent to close at 92 kobo.

On the positive side, Seven-Up Bottling Company led the gainers with a gain of 13.7 per cent to close at N158. FCMB Group rose by 8.41 per cent to close at N1.16. Champion Breweries gained 8.4 per cent to close at N2.72. United Capital appreciated by 7.3 per cent to close at N2.51. Fidelity Bank rose by 6.8 per cent to close at 94 kobo. Aiico Insurance rallied 6.6 per cent to close at 65 kobo. Diamond Bank rose by 5.8 per cent to close at N1.27 while Union Bank of Nigeria rose by 5.7 per cent to close at N4.80 per share.

The momentum of trading, in terms of turnover, also slowed down during the week. Total turnover stood at 934.91 million shares worth N6.36 billion in 12,352 deals as against a total of 1.287 billion shares valued at N9.30 billion traded in 15,258 deals two weeks ago. There were four trading sessions last week as Monday was declared a public holiday by the government in celebration of Nigeria independence. The financial services sector remained the dominant on the activities chart with a turnover of 817.195 million shares valued at N4.081 billion traded in 7,268 deals; contributing 87.4 per cent of the total equity turnover volume. The conglomerates sector staged a distant second with 46.366 million shares worth N86.730 million in 514 deals while the oil and gas sector placed third with turnover of 21.539 million shares worth N465.820 million in 1,310 deals.

Three banks-Access Bank, Diamond Bank and FCMB Group, were the most active stocks, altogether accounting for 364.68 million shares worth N1.07 billion in 1,359 deals, representing 39.01 per cent of the total equity turnover volume.

Read also: NSE LIVE! Dangote Cement lifts equities to marginal recovery

Also traded during the week were a total of 184 units of Exchange Traded Products (ETPs) valued at N2,077 in 16 deals compared with a total of 4.761 million units valued at N25.821 million traded in 45 deals two weeks ago.

In the debt segment, a total of 580 units of Federal Government bonds valued at N576, 723 were traded in two deals compared with a total of 2,023 units of Federal Government bonds valued at N1.925 million traded in four deals two weeks ago.

Nigeria and South Africa, which fell by 1.0 per cent, stood out negative in the African markets. Other major African markets showed considerable recovery. Egypt’s EGX 30 showed positive return of 5.3 per cent. Ghana’s GSE Composite Index appreciated by 3.5 per cent while Kenya’s Nairobi Stock Exchange’s benchmark index rose by 0.6 per cent.

With the exception of the United States of America (USA), most other advanced and emerging global markets also trended on the positive during the week. USA’s twin indices- the S & P and NASDAQ dropped by 0.3 per cent and 0.1 per cent respectively as the presidential election ticks nearer. Europe was mostly green. United Kingdom’s FTSE Index rose by 1.5 per cent. Germany’s XETRA DAX appreciated by 0.5 per cent. France’s CAC 40 inched up by 0.1 per cent while Russia’s RTS Index appreciated by 1.3 per cent. In Asia, it was also a positive trading week. Japan’s Nikkei Index rallied by 2.5 per cent. Hong Kong’s HANG-SENG Index appreciated by 2.3 per cent. Brazil’s IBOVESPA Index rose by 3.9 per cent while India’s SENS Index recorded a gain of 0.8 per cent for the week.

Besides the intervening fiscal and monetary policies, which are not likely to be influential in recent period unless there is a major policy shift, analysts believed that the Nigerian stock market direction in the next few days will be determined largely by expectations and inflow of the third quarter earnings of quoted companies.

Most companies at the stock market are expected to submit their nine-month results within the next 16 working days, in line with the rules at the stock market. Out of a total of 144 companies expected to submit the third quarter report on or before the end of this month, two companies-United Capital and Infinity Trust Mortgage Bank, blazed the trails last week.

“Sentiment in the coming week may further wane as investors remain cautious ahead of third quarter 2016 corporate releases,” Afrinvest Securities, a Lagos-based trader at the NSE, stated, referencing cautious side of the popular analysts’ position on the influence of third quarter earnings. Stable or steadily improving nine-month results can spur a rally, but the inflow of corporate releases is not expected to be strong this week.

 

 

 

 

 

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