The Nigerian equities market closed negative for the third consecutive week, after losing in three out of five sessions.
With a negative start to the week, the All Share Index (ASI) posted back-to-back losses, shedding 0.38 per cent on Monday and 0.84per cent on Tuesday, with the latter being the largest loss recorded this week.
Sentiments remain low, with the ASI reaching a nine-month low on Tuesday.
Contrary to speculation, the local traders did not ride on the news of the successful Eurobond issue to stir a “noisy rally” on the local bourse.
Although investors continued to purchase trusted names in equities, high subscription rates at the recent treasury bills and bond auctions highlight continued strong preference for risk free assets.
Overall, the ASI declined by 0.69 per cent last week to close at 25,164.91 basis points.
The Consumer Goods Index dropped by 4.63 per cent last week recorded the largest loss, owing to selloffs in Nestle Nigeria that dropped by 3.91 per cent and Guinness Nigeria that shed 6.23 per cent.
The Banking Index down by 0.44 per cent and Insurance Index depreciated by 1.75 per cent to weigh down by investors liquidating their positions in Zenith Bank, among other stocks.
A total turnover of 1.073 billion shares worth N8.608 billion in 14,486 deals were traded this week by investors on the floor of the Exchange in contrast to a total of 1.052 billion shares valued at N8.031 billion that exchanged hands last week in 13,586 deals.
The Finance Services Industry (measured by volume) led the activity chart with 930.380 million shares valued at N5.701 billion traded in 8,759 deals; thus contributing 86.70% and 66.24 per cent to the total equity turnover volume and value respectively. The Consumer Goods Industry followed with 52.480 million shares worth N1.992 billion in 2,513 deals. The third place was occupied by Conglomerates Industry with a turnover of 22.125 million shares worth N39.217 million in 499 deals.
Trading in the Top Three Equities namely – Staco Insurance Plc, Zenith International Bank Plc and Guaranty Trust Bank Plc (measured by volume) accounted for 473.880 million shares worth N4.269 billion in 2,254 deals, contributing 44.16per cent and 49.60per cent to the total equity turnover volume and value respectively.
The money markets overnight rate expanded by 650basis points w/w to close at 18.67per cent, from last week’s 12.17per cent, driven by significance cash withdrawal in the system.
The apex bank debited commercial lenders for T-bills (N202.4 billion) and bonds (N160 billion) purchases. While liquidity position improved on Thursday, following a N256.41 billion OMO repayment, the CBN mopped the inflow by selling N178.44 billion and N19.14 billion of the 321 and 174-day bills in an OMO auction conducted today.