Nigerian equities ended the week with a marginal net capital loss of N25 billion as a first-day upset on Monday overwhelmed subsequent four-day consecutive recovery. Nigeria’s week-on-week marginal decline of 0.16 per cent however represented the least among tracked global markets.
Nigerian equities lost N234 billion in a major selloff on Monday. The resultant attractive valuation from the selloff triggered a sustained bargain-hunting that ran throughout the remaining four trading sessions, hauling net capital gain of N209 billion within the four days.
With average week-on-week return of -0.16 per cent, the average year-to-date return dipped slightly to 11.32 per cent. Financial services stocks were the most attractive stocks as investors upped demand for low-priced banking and insurance stocks. With increased demand, banking and insurance indices played the contrarian to the negative overall market position, with average week-on-week gain of 1.52 per cent and 1.24 per cent respectively.
The All Share Index (ASI)-the common value-based index that tracks share prices at the Nigerian Stock Exchange (NSE), dropped from its week’s opening index of 42,638.83 points to close the week at 42,570.89 points. Aggregate market value of all quoted equities also slipped from the week’s opening value of N15.302 trillion to close the week at N15.277 trillion.
With more than two decliners for every advancer, most sectoral indices closed negative. The NSE 30 Index-which tracks the 30 most capitalised stocks, declined by 0.08 per cent. The NSE Consumer Goods Index dropped by 1.06 per cent. The NSE Oil and Gas Index depreciated by 1.81 per cent while the NSE Industrial Goods Index slipped by 0.49 per cent.
There were 23 advancers against 54 decliners last week compared with 30 advancers and 48 decliners recorded in the previous week. Conoil led the decliners, in percentage terms, with a drop of 18.3 per cent to close at N32.10. Courteville Business Solutions followed with a drop of 15.8 per cent to close at 32 kobo. UNIC Diversified Holdings declined by 15.6 per cent to 27 kobo. Unity Bank lost 12.9 per cent to close at N1.49 while DN Tyre and Rubber dropped by 12 per cent to close at 44 kobo.
On the positive side, Livestock Feeds led the advancers with a gain of 19 per cent to close at N1.19. Japaul Oil & Maritime Services followed with a gain of 16.7 per cent to close at 42 kobo. CAP rose by 7.8 per cent to close at N38. AIICO Insurance added 7.1 per cent to close at 75 kobo while United Bank for Africa appreciated by 6.7 per cent to close at N12.95 per share.
Total turnover stood at 2.018 billion shares worth N21.740 billion in 25,496 deals last week compared with a total of 2.940 billion shares valued at N27.924 billion traded in 28,567 deals two weeks ago.Financial services sector led the activity chart with 1.520 billion shares valued at N12.648 billion traded in 16,225 deals; thus contributing 75.30 per cent and 58.18 per cent to the total equity turnover volume and value respectively. Consumer goods sector followed with 130.660 million shares worth N6.912 billion in 4,168 deals while the third place was occupied by oil and gas sector with a turnover of 130.163million shares worth N251.941 million in 1,420 deals.
Banking stocks dominated activities chart. The three most active stocks were FBN Holdings Plc, Fidelity Bank Plc and Skye Bank Plc, which jointly accounted for 567.824 million shares worth N3.456 billion in 4,891 deals, contributing 28.14 per cent and 15.90 per cent to the total equity turnover volume and value respectively.
Also traded during the week were a total of 111,794 units of Exchange Traded Products (ETPs) valued at N1.806 million in 10 deals, compared with a total of 25,586 units valued at N3.004 million that was traded in 11 deals two weeks ago.
In the sovereign debt market, a total of 9,963 units of Federal Government Bonds valued at N10.057 million were traded last weekin 21 deals, compared with a total of 2,785 units valued at N2.627 million traded in 16 deals two weeks ago.
Global equities market showed a mixed performance during the week with a bullish run in the emerging markets and a downtrend in the advanced markets. In United States of America, the S & P 500 dropped by 1.0 per cent while NASDAQ declined by 0.4 per cent. In United Kingdom, the UK FTSE Index dropped by 0.6 per cent. In Africa, South Africa’s FTSE/JSE ASI Index slipped by 0.6 per cent Ghana’s GSE Composite Index declined by 0.2 per cent.
Meanwhile, other emerging markets of Europe and Asia witnessed positive sentiment. France’s CAC 40 Index rose by 0.5 per cent. Germany’s XETRA DAX Index appreciated by 0.3 per cent. Japan’s NIKKEI Index rose by 0.8 per cent while Hong Kong’s HANG SENG Index appreciated by 0.5 per cent.
In the emerging markets of Brazil, Russia, India and China (BRIC), it was a bullish market. Brazil’s Ibovespa Index and Russia’s RTS Index rose by 3.0 per cent each. China’s Shanghai Composite Index appreciated by 2.8 per cent while Egypt’s EGX 30 Index rose by 2.4 per cent.
“Despite the decline recorded in market performance, the increase in market breadth suggests sentiment is gradually improving in the market. We anticipate companies to begin filing full-year 2017 earnings result by next week (this week), hence this will be a major driver of performance in the near term,” Afrinvest Securities stated.
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