By Kayode Tokede and Olabode Jegede
In October first trading week, Investors’ lost N140 billion in the equities market segment of the Nigerian Stock Exchange (NSE) over sell-off in large-mid capitalized companies.
Findings by Nigerian NewsDirect revealed that market capitalisation of listed equities market opened trading in October at N11.962 trillion, 1.17 per cent dropping to N11.822 trillion on last Friday.
Consequently, the NSE All-Share Index depreciated by 1.17 per cent or 383.22 basis points to close last week at 32,383.15 basis points from 32,766.37 basis points the equities market opened for trading in October.
The sell-off dragged NSE All-Share Index to 15.32 per cent.
According to the NSE weekly report, a total turnover of 924.546 million shares worth N14.194 billion in 14,119 deals were traded last week by investors on the floor of the Exchange.
The report noted that “financial services industry (measured by volume) led the activity chart with 745.188 million shares valued at N9.477 billion traded in 8,329 deals; thus contributing 80.60per cent and 66.77 per cent to the total equity turnover volume and value respectively.
“The Consumer Goods Industry followed with 67.159 million shares worth N3.815 billion in 2,221 deals. The third place was Conglomerates Industry with a turnover of 49.297 million shares worth N135.395 million in 678 deals.
“Trading in the Top Three Equities namely – Guaranty Trust Bank Plc, United Bank for Africa Plc and Fidelity Bank Plc (measured by volume) accounted for 368.044 million shares worth N6.485 billion in 2,585 deals, contributing 39.81per cent and 45.69per cent to the total equity turnover volume and value respectively.”
The weekly report disclosed that a total of 49,238 units of Exchange Traded Products (ETPs) valued at N807.376.95 executed in five deals.
On bond, the report stated that, “A total of 2,155 units of Federal Government Bonds valued at N2.113 million were traded this week in 12 deals compared with a total of 13,715 units valued at N13.242 million transacted last week in 49 deals.”
Analysts at InvestmentOne Research, in a report said “In our opinion, we believe the equity market is still weak due to factors such as the increasing U.S treasury yields.
“In anticipation of more rate hikes by the U.S Fed as well as investors’ scepticism around the country’s 2019 election.
“However, the recent sell-off, which has restored attractive upsides on our top picks, presenting a decent entry opportunity for investors with a medium to longer term horizon.”