Nigerian equities traded in the immediate past week under a tight balance of profit-taking and bargain-hunting, but sell pressure from profit-takers tilted the market situation to a net capital loss of N95 billion for the week.
With three positive closings against two negative closings, considerable sell pressure in the influential oil and gas and industrial goods sectors overshadowed the modest rally in the banking and consumer goods sectors.
Benchmark indices at the Nigerian Stock Exchange (NSE) showed a week-on-week average decline of 0.74 per cent, equivalent to net capital depreciation of N95 billion. The average year-to-date return for Nigerian equities now stands at 36.36 per cent.
The All Share Index (ASI)-the sovereign index that tracks share prices in Nigeria, closed weekend at 36,646.46 points as against its week’s opening index of 36,920.56 points. Aggregate market value of all quoted equities at the NSE also dropped from its week’s opening value of N12.726 trillion to close at N12.631 trillion.
Most sectoral indices also closed the week in the red. The NSE 30 Index-which tracks the 30 largest stocks, dropped by 0.23 per cent. The NSE Oil and Gas Index led the decliners with 3.71 per cent. The influential NSE Industrial Goods Index slumped by 3.31 per cent while the populous NSE Insurance Index declined by 1.85 per cent. However, the NSE Consumer Goods Index rallied by 2.38 per cent while the NSE Banking Index rose slightly by 0.31 per cent.
The performance at the Nigerian stock market was contrary to the largely positive global market outlook, which saw most advanced and emerging markets closing on the upside. In United Kingdom, the UK FTSE Index appreciated by 0.9 per cent. United States of America’s twin indices-the S & P 500 and NASDAQ rose apace by 0.8 per cent each. Germany’s XETRA DAX Index inched up by 0.02 per cent. Russia’s RTS Index jumped by 3.4 per cent. Brazil’s IBOVESPA Index trailed by 3.1 per cent while India’s BSE Index appreciated by 0.2 per cent.
In Africa, it was also a largely positive situation in other markets. South Africa’s FTSE Index rose by 2.4 per cent. Ghana’s GSE Index rose by 2.5 per cent while Kenya’s NSE ASI rallied by 1.9 per cent.
On the negative side, France’s CAC Index declined by 0.2 per cent. China Shanghai Composite Index dipped by 0.02 per cent. Egypt’s EGX 30 Index dropped by 1.5 per cent while the Hong Kong’s HANG SENG Index and Japan’s NIKKEI Index closed flat.
There were 32 advancers against 40 decliners last week at the Nigerian stock market, compared with 19 advancers and 51 decliners recorded in the previous week. Oil and gas stocks led the downtrend with the newly renamed 11-formely Mobil Oil Nigeria, leading the decline with a drop of 14.45 per cent to close at N192.55. Conoil followed with a drop of 14.22 per cent to close at N29.07. Unilever Nigeria declined by 9.23 per cent to close at N41.30. AXA Mansard Insurance dropped by 7.32 per cent to close at N1.90. Linkage Assurance lost 6.49 per cent to close at 72 kobo. Skye Bank dropped by 5.97 per cent to close at 63 kobo. Zenith International Bank dropped by 5.83 per cent to close at N23.10. Custodian and Allied dropped by 5.26 per cent to N3.42. MRS Oil Nigeria declined by 5.02 per cent to N33.66 while Seven-Up Bottling Company dropped by 4.99 per cent to close at N92.12 per share.
On the upside, low-priced stocks dominated the gainers’ list with Caverton Offshore Support Group leading with a gain of 16 per cent to close at N1.16. Dangote Flour Mills followed with a gain of 10.33 per cent to close at N6.62. UACN Property Development Company rose by 9.09 per cent to close at N3. C & I Leasing appreciated by 8.82 per cent to close at N1.11. International Breweries rose by 8.79 per cent to close at N37. Dangote Sugar Refinery rallied by 6.56 per cent to close at N13.65. Livestock Feeds rose by 5.62 per cent to close at 94 kobo while Jaiz Bank added 5.26 per cent to close at 80kobo per share.
Total turnover stood at 1.54 billion shares worth N24.22 billion in 19,187 deals last week as against a total of 1.394 billion shares valued at N25.037 billion traded in 23,133 deals two weeks ago.The financial services sector led the activity chart with 1.209 billion shares valued at N14.210 billion traded in 10,692 deals; thus contributing 78.65 per cent and 58.68 per cent to the total equity turnover volume and value respectively. The agriculture sector followed with 109.646 million shares worth N154.438 million in 321 deals while the third place was occupied by consumer goods sector with a turnover of 83.608 million shares worth N6.247 billion in 3,726 deals.
The three most active stocks were Unity Kapital Assurance Plc, Guaranty Trust Bank Plc and AIICO Insurance Plc, which altogether accounted for 579.065 million shares worth N7.900 billion in 1,856 deals. The three most active stocks thus accounted for 37.66 per centand 32.62 per cent to the total equity turnover volume and value respectively.
Also traded during the week were a total of 390 units of Exchange Traded Products (ETPs) valued at N6,512 executed in five deals compared with a total of 5,168 units valued at N65,570 traded in eight deals two weeks ago.
In the sovereign debt segment, a total of 3,657 units of Federal Government bonds valued at N2,866,268 were traded in nine deals compared with a total of 987 units valued at N986,952 crossed n a deal in the previous week.
“Given the extended sell pressure on the bourse over the past two weeks, we see the potential for bargain hunting in early trades next week. We maintain our positive medium term view for equities, supported by positive forward earnings and increase in valuation multiples,” Afrinvest Securities-a Lagos-based dealer at the Exchange stated in a preview of market situation in the next trading week.
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