Eid-el-Kabir Celebration: Investors in equities market lose N157bn in 5 days

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Amid Eid-el-Kabir celebration, investors in the equities market of the Nigerian Stock Exchange (NSE) recorded a loss of N157 billion in one week trading as sell-off persisted.

Specifically, at the end of the five-day trading, the market capitalisation closed at N13.307 trillion, representing a decline of 1.17 per cent or N157 billion from N13.464 trillion the market opened for trading.

The NSE All Share Index dropped by 1.17 per cent or 323.65 basis points to close at 27,306.81 basis points from 27,630.46 basis points.

All other indices finished lower with the exception of NSE Industrial Goods index which appreciated by 1.32 per cent to 1,087.24 basis points. NSE Banking Index, NSE Insurance Index, NSE Consumer Goods Index and NSE Oil/Gas Index, plunged by 6.05 per cent, 3.88 per cent, 0.65 per cent and 1.62 per cent to 308.23 basis points, 107.85 basis points, 545.48 basis points and 223.05 basis points respectively while NSE ASeM index closed flat.

According to NSE, “a total turnover of 1.081 billion shares worth N12.014 billion in 16,246 deals were traded this week by investors on the floor of the Exchange in contrast to a total of 759.266 million shares valued at N14.038 billion that exchanged hands last week in 16,209 deals.

“The Financial Services industry (measured by volume) led the activity chart with 900.334 million shares valued at N9.076 billion traded in 8,693 deals; thus contributing 83.30 per cent and 75.54 per cent to the total equity turnover volume and value respectively.

“The Conglomerates Industry followed with 51.224 million shares worth N64.388 million in 897 deals. The third place was Consumer Goods Industry with a turnover of 40.906 million shares worth N946.210 million in 3,090 deals.

“Trading in the Top Three Equities namely, Sterling Bank Plc., Guaranty Trust Bank Plc. and Access Bank Plc. (measured by volume) accounted for 511.856 million shares worth N6.133 billion in 2,074 deals, contributing 47.36 per cent and 51.05 per cent to the total equity turnover volume and value respectively.”

The price movement chart showed that only 12 equities appreciated in price during the week, lower than 32 equities in the previous week. 43 equities depreciated in price, higher than 27 equities in the previous week, while 113 equities remained unchanged, higher than 109 equities recorded in the preceding week.

Furthermore, Cement Company of Northern Nigeria led the price gainers by 13.36 per cent to close at N14 per share, trailed Dangote Flour Mills that rose by 11.35 per cent to close last week at N20.60 per share while B.O.C. Gases appreciated by 9.86 per cent to close at N5.57 per share for trading last Friday.

Other top gainers included NCR (Nigeria) by 9.43 per cent to close at N5.80per share and AXA Mansard Insurance garnered 9.09 per cent to close N1.80 per share.

Contrarily, Continental Reinsurance led the price losers by 19.19 per cent to close at N1.39 per share, trailed by Law Union and Rock Insurance that dropped by 17.02 per cent to close at 39 kobo per share while Unity Bank declined by 13.51 per cent to close by 64 kobo per share.

Other top decliners included Forte Oil by 12.60 per cent to close at N17 per share and Academy Press dropped 12.50 per cent to close 35 kobo per share.

Analysts at Afrinvest Limited said that, “We believe that the bearish run would persist as investors maintain a risk-off approach towards investing in the domestic equities market.

“However, we see opportunities for bargain hunting in stocks with sound fundamentals.”

“As market activities will remain on-hold till next week Wednesday due to the two days public holiday, we expect investors to maintain the current speculative approach in the next trading week owing to escalating global tension and domestic slacks,” said Analysts at GTI Securities Limited.

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